The Economic Importance of Self-Reliance

Politicians always want us to believe they live in a house they built themselves. This gratuitous self-reliance is often shunned by the greater public as disingenuous, but there is no doubt that relying on oneself is crucial to the survival of the modern economy.

Wealth is not a fixed quantity. What you consider wealthy may be different from your parent’s ideas on the matter, for instance. Therefore, distributing “wealth” to others is essentially creating a vacuum with no pre-defined limits. At what point does one stop giving? If the wealthy give so much away that they become equal to others, should others not also give? This begins to sound more like a system of moving money, rather than exchanging goods or performing meaningful services.

The key difference is the element of self-reliance. Marxism argues that the individual should reap the rewards of his efforts, and is instead cheated by private enterprise and land owners. Yet, even Marx understood that wealth was created and not found. On some level, consumerism is essential to prosperity and modern living. This means production, enterprise, entrepreneurship and ultimately jobs.

Consumerism implies the exchange of goods. If not money, then something of value that someone worked to earn. It can be difficult to distinguish usury from self-reliance. Money lenders enable others to prosper, yet are consistently vilified for the perception that they create something from nothing. In truth, it is self-reliance that drives the practice of money lending and vise versa.

 

 

Is it easy to learn forex?

To learn forex is not such a simple task. Many a veteran forex trader will tell you that although it is possible to eke out a profit from the forex market, the truth is that one must use the investment tools that have provided to him in order to be successful.

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Go with a currency trading broker

Engaging in forex trading is no joke and you should not treat the matter lightly. You will be investing hard earned cash and you must ensure that you get back you invested at the very least. If you are new to the forex game, then you should consider hiring a currency trading broker.

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How to Recognize Scavenger Debt Collectors

Remember: Just because you have defaulted once or twice doesn’t mean you need to suffer from inconsolable collectors all your life. You may have defaulted on your credit card dues several years ago, but your credit report clearly states the debt was written off by the company who issued your card. You’re received nasty calls and letters from the collection agency to which your account has been forwarded, but that was it. They stopped bugging you, and you think you’re finally free from them. You may have to think twice.

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Wireless industry is consolidating

The T-Mobile USA, a subsidiary of Germany’s Deutsche Telekom announced recently that it will acquire no-contract and low-rate, pre-paid plan cellphone provider MetroPCS Communications for cash and stock deal worth $4.6 billion. The transaction is expected to close during the first half of 2013. AT&T previously aborted its attempts to acquire T-Mobile USA.

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Can forex robots help you?

The subject of forex robots is somewhat controversial and is probably not advisable for beginners. There are many who claim that it is a great tool and other who point out its limitations and faults.Either way if you want to use one, what you should understand is that a forex robot is only a tool. As with any tool, improper use can lead to a disaster very soon.

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What is fiscal cliff?

The U.S. Presidential Election is heating up and more and more people talk about an impending fiscal cliff. Some even call it “Taxmageddon”. What is the impending fiscal cliff? Ten years ago, President George W. Bush initiated a tax cut that reduced personal tax as well as corporate taxes. The fiscal cliff somewhat loosely refers to the expiration of those tax cuts in 2013 as well as tax rates hikes, bracket adjustments, new taxes, and mandatory cuts to programs that will go into effect in 2013 if the Congress is unable to reach an agreement before the end of 2012. The expiration of many of these current programs could push the country into a recession is called the impending fiscal cliff.

If the Congress is unable to reach an agreement, the Government will be unable to borrow money to pay for programs. The current budget deficit stands at $1 trillion. Some of the tax cuts including lower tax rates charged for dividends will expire at the end of the year causing people to rethink about their investments as well as property sales, retirement contributions, estate planning and host of other decisions. The tax brackets adjustment alone could cost an average family an additional $1,550 in taxes.

Credit card or debit card, which one to use?

Many of us hesitate to use credit cards when we can pay for the service using cash or a debit card. However, there are certain services that you may want to use a credit card instead of paying with a debit card.

  • If you are able to pay for your monthly purchases, you may consider using a credit card for those purchases and paying the card balance each month. You are not only avoid accruing and paying interest but also get other benefits such as airline miles, gifts and other benefits for using your credit card.
  • Many credit cards offer rental car insurance as a benefit if you use your credit card to rent a vehicle.
  • When you pay for your online purchases with a credit card you get a benefit that a debit card can’t provide. If you are not happy with the product, you can return the product and ask your credit card company for a chargeback.
  • Consider using your credit card to pay for a hotel stay instead of paying with a debit card. Not only the hotel still will require a credit card, they will take money from your account right away if you use your debit card. You get a grace period to pay for your hotel stay with a credit card.

Withdrawing Social Security benefits by singles

Article Written by : Invisible Insurrection

Much has written about Social Security but not many addresses the situations with single individuals. Many believe that Social Security benefits favor married over singles. Singles can enhance their opportunities by employing certain strategies too.

Here is one strategy that can work for singles, file-and-suspend strategy. Since there are no spousal benefit considerations with singles, this strategy needs to be evaluated in context singles. Instead of receiving benefits at the normal retirement age, age 66, singles may be able to receive 32 percent more by filing at age 70 for benefits. The drawback is you cannot ask for benefits that you did not get during the time of eligibility and the time of withdrawal. But if you file at the eligible retirement age of 66 and immediately suspend by file-and-suspend strategy, you could get a lump sum based on the benefits you would have received during that time. This is only possible if you file-and-suspend your benefits.

So the strategy gives you the comfort of delaying your payments until age 70 and rack up retirement credit. The drawback with the strategy is if you decide to take benefits before age 70, it will give you a lump sum but your benefits will be calculated as you started your benefits at age 66, lowering your monthly benefit amount.

Retirees, consider ETFs for current income

Most investors such as retirees looking for current income are having a hard time finding suitable ways to invest. The 10-year Treasury note yielded 15 percent in 1982 and that dwindled down to two percent at the end of 2012. So, where can you find good investment these days? Many suggest using exchange-traded funds (ETFs). They are a low-cost way to build a portfolio with stocks and bonds. It provides diversification, liquidity and generally a cheaper way to invest than mutual funds.

Today, an income investor can find a reasonable ETF with a 0.4 percent expense ratio. Also, in order to diversify one’s investment to reduce risk, a basket of ETFs can be chosen from an enormous pool available. Behemoths like iShares, PowerShares, SPDR, PIMCO, Vanguard, Charles Schwab and many others offer a wide selection of bond ETFs for income investors. They may not be suitable for young, say under the age of 50, because their time horizons are much longer and other opportunities provide better investment vehicles. With an ETF, traditional laddering that is needed with bonds doesn’t come into play. At a time bonds, Treasuries and other traditional investment vehicles for income provides less than desired returns, ETFs can provide much needed income while protecting the nest egg.