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Wednesday, July 31, 2013

Majorem Lending: Loan Releases

Ad Majorem.....Wealth Builders

Majorem Lending Investor Inc. is now aiming to reach out lot owners of Holy Gardens all over the six SBU to benefit from its low interest lending program, promoting entrepreneurship to Holy Gardeners.

Here are two of the increasing population of borrowers from Holy Gardens Oton Memorial Park:
Mrs. Nerissa Octavio showing her first credit express loan check
Signing of the promissory notes and loan agreement

Mrs. Leonora Semacio  received her seventh cycle loan from Majorem

Saturday, July 27, 2013

About Economics: The Next Fed Chair, Modern Monetary Theory, & More


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From Jodi Beggs, your Guide to Economics
Hi all,
This week, I'm bringing you a mix of current events- some updates on the changing of the guard at the Federal Reserve and some information on Modern Monetary Theory- and background articles on the time horizons that economists consider as well as a way to measure leverage from the scale of production. Have fun!
Cheers,
Jodi

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Handicapping the Race for the Next Fed Chair...
I've written before about the list of probable candidates to succeed Ben Bernanke as the next chair of the U.S. Federal Reserve. Read More

So What Is Modern Monetary Theory, Anyway?
If you follow economics conversations on television, in the newspaper (read, online), or in the blogosphere, you've probably come across the term "modern monetary theory" at some point. Read More

The Short Run Versus The Long Run
In economics, it's extremely important to understand the distinction between the short run and the long run. Read More
Search Related Topics:  perfect competition  profit maximization 

Returns to Scale
In the short run, a firm's growth potential is usually characterized by the firm's marginal product of labor, i.e. the additional output that a firm can generate when one more unit of labor is added. Read More
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Free Money Finance Reader Profile KP


Free Money Finance


Posted: 03 Jun 2013 09:08 AM PDT
The following is the latest post in my "Reader Profiles" series. Each post in this series details the financial situation and challenges of an FMF reader. The purpose of this series is to help us all identify with people like us (in similar situations -- not all will be, of course, but eventually I'm sure you will find someone like you here), get to know the frequent commenters on the site, and hear some financial wisdom/challenges from people other than me.

If you're interested in contributing to this series, then drop me an email. The series seems to be very popular with readers and I need a steady stream of new ones to keep it going.

Also, please leave constructive comments, questions, and so forth. Simply telling someone what a mess they have, how they have made poor decisions, and so forth is not helpful. There is a way to say, "That was a mistake, but here's what you can do to correct it" that both acknowledges the problem and offers a solution. It's this sort of feedback that this series is intended to solicit.

Next in the series is FMF reader KP. He answered my questions (in red below) as follows:

Please tell us a bit about yourself.

I am a 29 year old single man living in the southern midwest region. I was very fortunate to have a good paying job right out of college in a city with a very low cost of living. I attended a public university where my four years on campus cost my parents and I a combined $25,000 (my parents paid $21,000 and I paid $4,000 with loans). This low cost was enabled through a combination scholarships and some federal/state grants. Through summer jobs I was able to graduate college with no debt.

My gross pay each year is $110,000. We do not have a 401K match, but do receive a profit sharing contribution each year (company stock; should be ~$10,000 this year for me).

If I stayed at my current company until age 55, I would be able to retire with a very nice net worth. However I am currently debating transitioning to a lower stress job in a different city.

Describe your financial situation (who works in your family, how your income is (general), how your expenses are, etc.).

Income
  • $9,200 a month gross pay
Expenses
  • $1,900 a month for mortgage + property tax + home insurance
  • $100 a month for gas / car maintenance (benefit of driving a hybrid)
  • $200 a month for food
  • $200 a month for going out with friends
  • $500 a month for charitable donations
  • $150 a month for utilities
  • $100 a month for employer health and disability insurance
  • $60 a month for internet (no cable)
  • $100 a month for home improvement projects (typically done by myself)
  • $50 a month for clothing (I have a minimalist closet)
  • $100 a month for hobbies
  • $300 a month for travel (like to take trips to see family/friends)
  • $200 a month miscellaneous (estimate)
  • $450 a month for Roth IRA
Assets
  • Home ($203,000) purchased in 2009 for 192,000 (including first time home buyers credit)
  • 401k ($130,000) mixture of three ETF's
  • Profit Sharing ($56,000) all company stock - will increase by $10,000 in July
  • Roth IRA ($54,000) - Index Funds + a few individual stocks
  • Cash ($40,000) - current checking ($15,000) + slush fund ($25,000)
Liabilities
  • Mortgage ($102,000, 4.25% - 15 years)
  • No credit card debt - paid in full each month
  • No car loans - paid in cash for a new car in 2011
Net Worth
  • $381,000
What are the current financial issues you're facing (saving, paying off debt, etc.)?
This may sound ridiculous, but with interest rates so low, my biggest issue is knowing where to park excess cash. My 401k is maxed each year as is my Roth IRA contribution. One reason my mortgage balance is so slow for only having lived in the house 4 years, is a do bi weekly payments and also made a one time $20,000 payment a few weeks ago. I am somewhat risk adverse, so I do not like to have too much money in the stock market. I do plan on doing about $5000 in home repairs this summer (new paint + driveway) which is why the checking balance is a bit high.

What are your plans for the future (retire early, build your career, etc.)?

Longer-term I do not plan on staying in my current job until I hit 55. I am worried I would get burnt out and not be happy looking back. Over the past few years I have dabbled in side startups but nothing has worked out (part of my hobby budget). Ideally I would love to start a business and run it full time. I do wish to have a family in the future and be able to take future kids on trips (not just Disney but also international) as well as pay a portion of their college costs (maybe 3 years or something). When the family does start, I will front load the 529 plans as much as possible.

I have worked since I was 13 (my parents owned a small business and I was paid $1 an hour until age 16!!) and consider myself to be financially savvy.

What's your best piece(s) of financial advice and/or your general philosophy on personal finances?

Best advice: In college I read John Bogle's (Vanguard founder) book on index funds. The vast majority of investors should follow his advice and keep costs low by investing in index funds. Also never but a load fund; only no load funds.

My personal philosophy is money is nice to have but it won't make you happy. I'd rather have a middle income/net worth life with a happy loving relationships (family & friends) versus a high income / networth life without them.

Free Money Finance - about resumes


Free Money Finance


Posted: 18 Jul 2013 01:29 AM PDT
The following is an excerpt from the book Cut the Crap, Get a Job! a New Job Search Process for a New Era. I will be running a series of excerpts from this book over the next couple weeks.

Lots of good tips and thoughts in this installment. I don't agree with all of it (like the over-emphasis on the cover letter), but generally think this is good advice.

Never ever, ever, ever, ever apply with just a résumé, unless you have to. A standalone résumé doesn't help the hiring manager and doesn't help you. It is an important backup document and a basic requirement for job applications. You must have an excellent one with accurate information, too. But a résumé alone is not going to get you a job. It used to. Now, with hundreds of applicants per position, screening being outsourced or automated, and email overload, you need to change your game for today's new era.

This chapter will summarize what an excellent résumé needs to have, and the next chapter will share a BRAND NEW WAY of applying to jobs.

First, there are three main scenarios where a résumé is used for job search.

1 Networking with résumés: Jonathan received an email from Matthew, a friend. Matthew said, "I'm attaching the résumé of a wonderfully talented woman who just moved to Seattle and is looking for work. I thought you might have thoughts." Jonathan wrote back, "I'm sorry, Matthew. I would like to help but I cannot with just a résumé. It doesn't tell me what she wants to do, what types of companies she wants to work for, what research she has done, etc. A cover letter explaining all of that is needed to engage, thank you." Jonathan was spot on with this response. Job seekers, it is your job to "help me help you." If you want friends, family, your network, LinkedIn connections, or career counselors to help you, then give them what they need. A résumé simply lists facts of what you have done and what you have accomplished in the past. The reader is not responsible for translating that into your next ideal job definition or where you would be a good fit. Even if you are sending your résumé to Uncle Bob and asking him to forward to an executive in his company, you should give Uncle Bob a cover letter, explaining what you are looking for, when you are available to start, why you are an accomplished worker, and how they can contact you.

To be perfectly clear: Do NOT send résumés to people asking "Where would I fit within <Microsoft> or <GE>?" Stop. You are abdicating your responsibility for your career to them! Even if you are not actively job searching and just doing research, you need to assess your next career move. If you just don't know, go back to Chapter 3 and set a goal.

Social media sites, such as LinkedIn, are an electronic form of networking. Therefore, your LinkedIn Background Summary in your profile is the section that behaves like a cover letter. Naturally, for those of you job searching while employed, this is tricky, but there are many online articles about how to job search secretly while employed.

2 Applying to specific jobs with résumés: Some companies and websites require you to only retype the facts from your résumé. They replicate the fields or draw keywords from your submittal. Other websites state very clearly that you may only attach one document. Option A: If they say that one document must only be a résumé, then you need to do that. Option B: If they do not specify, but only allow one FILE, then see the next chapter about a NEW application called the "Cut the Crap (CTC) Candidate Packet." That should be your one file.

3 Posting on job boards: In this scenario, the only recourse you have is to post your résumé. For this reason, the résumé needs to be excellent. Let's get right into the definition of "résumé excellence."

Solution: An Excellent Résumé

Excellence can be defined by 3 major principles:
1. Search-ability: Key word search is optimized so you are found
2. Easy to read: Well-formatted for both online and print
3. Quantitative: Numeric proof of your brilliance
1 Résumé Excellence #1—Search-ability: You, the applicant, could be the best person for the job, but if your résumé is not found in a search, the probability that you will even considered is quite low. A searchable résumé is key so you can be found in various technology engines such as:
a. Job board résumé databases
b. Employer applicant tracking systems
c. Employer email systems
d. Social media (LinkedIn, Facebook, Twitter, etc.)
e. Web search engines
What are "keywords?" They are the words used for searching and finding appropriate candidates. In today's new job search era, recruiters, screeners, employers, and others are fluent in the symbols and tricks for searching for candidates using keyword searches.

For example, if an employer is filling a Marketing Communications position, the keywords are the words associated with the requirements of the job:
  • Skills (communications, writing, advertising, presentation, collaboration, teamwork, project management, etc.)
  • Tools (Microsoft Office—Word, Excel, PowerPoint, Publisher)
  • Education (MBA, BA, BS, AA, AS, high school, etc.)
  • Location (State, city, even if willing to relocate)
Where should your keywords be? Everywhere.
  • Filename of your résumé or profile (for those that are emailed)
  • Title of your résumé or profile (for those in systems that use entry titles, like LinkedIn and craigslist)
  • Body of your résumé or profile
  • Body of your LinkedIn profile
  • Twitter bio
  • Facebook page
How can I make my keywords more powerful?

A. Customize the keywords on your résumé if you have more than one kind of job goal: Your keywords can be customized for the position being sought. If you are looking for more than one kind of job (more than one target job title), the résumé used for each job should be directly related to the keywords appropriate for that job.

B. Add more nouns: Nouns? But we were all taught to use "power verbs," such as "developed, collaborated, designed, and led." But the "what" that you performed, the action, is just as important. In the following examples, the bold nouns are the keywords that relate to the action indicated by the verbs:
  • Led global cross-functional teams for plan review and sign-off.
  • Designed and executed online marketing campaigns and events.
  • Managed advertising agencies, $1M+ budgets, and cost analysis.
  • Functioned in lead project management role.
  • Oversaw editorial calendar, content distribution, and competitive analysis
There are many good articles about keywords for résumés online, so please spend more time in mastering this critical NEW job search criteria. The simplest way to learn what the best keywords are for your job target is to read job descriptions! Example: Seeking experienced Accounts Receivables Manager to oversee accounts, manage billing and collections, train accounting and clerical staff, develop status reports for management, and prepare monthly balance sheets. BA degree or AA degree with minimum of 2 years' experience required. Your résumé should have these keywords.

2 Résumé Excellence #2—Easy to Read:

The content of your résumé is by far the most important factor. But design is important, too, for a couple of reasons:
  • Your résumé must be easy to read, and good design makes that possible. Design calls attention to key sections of your résumé, such as work experience and education.
  • A well-designed résumé reflects positively on your skills. Sloppy or careless design may give a negative impression, even if you're well-qualified.
There are several techniques you can use to create a highly readable and attractive résumé. The table below lists some of the most important.
  • White space - Lots of white space makes text easier to read. Text that's too dense may discourage time-pressed readers from reading further.
  • Bullets - Bulleted text allows you to break down complex information into readable chunks and also highlight key points.
  • Easy-to-scan headings - Your reader should be able to quickly locate key areas on your résumé, such as education, without extensive searching.
  • Limited number of fonts - Use no more than two fonts styles—one for headings and the other for body text. More than that is distracting.
  • Selective use of bold - Use bold carefully and consistently. For example, if you bold the name of one company you've worked for, do it in all cases.
  • No underlining (except links) - Reserve underlined text for web links. If you need to emphasize something, use bold.
  • Consistent spacing - Use the same amount of space before and after headings, between bullets, etc. This gives your résumé a uniform look.
There are thousands of great examples on the web. Add this to your job search schedule as an area to spend time on. For those of you really stuck, invest in a résumé writing service.

Creating a plain-text résumé

Although most companies will be able to handle your résumé in Word or PDF format, you may need to have a plain-text résumé that's been stripped of formatting. To create one, follow these steps:
  • Copy your résumé into a plain text editor like Notepad, which should be available as an accessory on your computer. Most of the formatting should be gone.
  • Change any remaining bullets to asterisks, and space once after the asterisk.
  • For your main section headings, such as Work Experience, change to all caps so the headings stand out.
  • Add spacing between sections as necessary for readability.
3 Résumé Excellence #3—Quantitative

Hiring managers, recruiters, and HR managers are so tired of "world-class marketing person" or "exceeded targets in…" or "best in class performance." You need to prove your results right in your résumé. Job candidates tell me they will wait until the interview to share them or say, "My successes cannot be quantified." Cut the Crap, Get a Job!

Not many job types, such as sales, can claim "exceeded budget by 12% or $3 million dollars" or "ran a team with a quota of $800,000." However, there are a number of other qualitative results that you can display proudly on your résumé.

You could have been 1 selected out of 500 to represent your team at a meeting. You delivered a major project on time and under budget by X%. You won some awards or have been promoted in a certain amount of months, X, well above the company average of Y. Do this: Think about your soft skills (the ability to meet deadlines, work in a team or independently, communicate complex ideas, placate customers). Relate an occasion where those skills made a difference to your company. Many of you have been assigned to a critical project, included in client or executive meetings, recommended for special training, or asked to make a presentation.

Here is a final example to help you out:
Before: Maintained accounts receivables and accounts payables.

After: Managed over 2,500 accounts receivables and accounts payables, working directly with the Chief Financial Officer.
In summary, when you rewrite your résumé to compete in today's era of job search, look for opportunities to quantify, without sharing confidential information, of course. Think of power verbs, (like reduced, saved, made, grew, etc.) and combine them with metrics, such as time (number of months, days, or years, dollars, growth percentages, comparison to market averages, comparisons to company or peer averages.)

Tricks

1 If you are a Jimmy, don't put James on your résumé or cover letter. When recruiters, screeners, or hiring managers want to call you, they want to address you and get to know you by the name you want to be called. This saves embarrassment later, too. Same goes for your business card, email signature, and everything. The old days of "James" being used when, in fact, you want to be called "Jimmy" are over.

2 You can have a few versions of résumés, based on 1) more than one job goal (e.g. marketing versus sales) or 2) multiple cities you are targeting. However, do not alter your résumé per job. A hiring manager can spot when you are simply plugging in their company name or their job title in your objective at the top.

3 In the date column, put the month and the year so the reader can tell how long you have been with a company. Example: 2011-2012 can be as little as 2 months (December to January) or as long as 24 months.

Mistakes

Mistake #1: The Acronym Abyss. Follow the main rule of acronyms: For the first use, always write it out, then put the acronym in parenthesis following. If you are communicating that you were an SE for five years, then you need to write out "Systems Engineer (SE)" for the reader. Best is to avoid industry-specific or company-specific acronyms.

Mistake #2: Use of the present tense in all jobs on the résumé.

Mistake #3: Writing the résumé or cover letter in the third person.

Mistake #4: Grammar and spelling mistakes—red and green squiggles throughout.

Mistake #5: Use of tiny, tiny fonts (10 pt. or less) so as to cram as much information into the résumé as possible.

Mistake #6: Photos on résumés.

Mistake #7: Using a résumé that is password protected (without sending the password).

Mistake #8: Using a table format and keeping all of the lines for rows and columns.

Mistake #9: Having no contact information on the résumé or including a phone number that is no longer valid.

Mistake #10: Education written so vaguely that it is unclear if you secured a degree.

Mistake #11: Going back too far in your experience. I recommend 15 years maximum, then a high level summary of the prior work.

Mistake #12: Submitting the wrong format. If the employer or recruiter has stipulated that your résumé or form has to be submitted in a certain format, make sure that you adhere to that. Don't send it as a PDF if they have specifically requested a Microsoft Word document.

Mistake #13: File name of your résumé is "Résumé". Or "432987.pdf." Correct that to "JohnSmith_Position 14254_Boeing" or "JohnSmithRésumé."

Free Money Finance - Jun 14, paying off low interest loans


Free Money Finance


Posted: 14 Jun 2013 06:29 AM PDT
Here's an email I recently received from a reader:
Is paying off low-interest debt always the best choice?

I am very fortunate in that I only have one source of debt: a car loan. No student loans, nothing on my credit cards, nada. My interest rate for my car is about 2.8% over 5 years (I'm 1.5 years into it).

My plan had been, once I got to July 2013, to switch my emergency fund savings to paying double on my car payment, to kill the debt faster. I thought that was a good idea, and everything I read seemed to suggest it was. But then I read an alternate view in a book sample I downloaded for my Kindle. That author suggested that if your interest rate is less than 3%, you are better off investing your extra money rather than putting it toward your debt. (I'm sorry I can't remember the book, the title had to do with finances in your 20s and 30s; I deleted the sample as I didn't find it very helpful, but the above idea stuck in my head.)

What do your readers think? Should I double up on my payments to destroy the car debt? Or should I funnel the money into my IRA? Right now I'm not quite yet at the point of making regular payments to my IRA: I am saving up for two more mutual funds (a bond fund and an international stock fund; right now everything is in domestic stocks, and I know I need to diversify). If I diverted that extra $220 to the IRA, I could reach my investment goals a lot faster, and I know time is money (as a reminder, I'm 26). But of course, debt is slavery, and I'd love to get rid of that car debt sooner, plus save on interest.

I'd love to hear your opinions!
What's your advice on this subject?

About Investing for Beginners: The Documents Every Investor Should Know


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From Joshua Kennon, your Guide to Investing for Beginners

What Is the 10K?
It is probably a very bad idea to invest in stock if you haven't read the 10K filing for a company that is required by the SEC every year. Read more
Search Related Topics:  financial statements  annual reports  10ks

What Is an Annual Report?
Whether you invest in the stocks, bonds, preferred shares, or other securities of a company, you're probably going to want to take a look at the annual report each year. Read more
Search Related Topics:  financial statements  10ks  investing research

What Is a Proxy Statement?
How much are the executives and directors at your company being paid? Who is elected to represent your interests? The answer to these questions and more can be found in the proxy statement. Read more
Search Related Topics:  board of directors  sec  investing research

Investment Research 101
This quick rundown can help you understand where to get your hands on important documents, how to research a ticker symbol, and how to discover whether a company is public or private. Read more
Search Related Topics:  sec  stocks  investing research



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Run Your First 5K
Even couch potatoes can be ready for a 5K with just a couple months of training. Read more...>


Help! I'm Too Busy
Time and stress management tips to help you feel as though you have more time. Read more...>



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Investing for Beginners Guide
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