Category Archives: Investing

Are You Going to Mop Floors at McDonalds?

Are you ever going to be able to retire or are you going to mop floors at McDonald’s? Have you ever walked into a fast food restaurant and noticed a Senior Citizen mopping the floors or cleaning the tables? I have, and it really breaks my heart.

Do you think that the Senior Citizens who are mopping the floors dreamed of the day when they could retire and then work at McDonald’s to earn some extra income? Can you picture them in their 20’s, 30’s, 40’s and 50’s just waiting for the day when they could start at McDonald’s?

I am presenting this on the funny side, but it is a serious point for you to consider. The Senior Citizens you see working are not working because they want to. (Well, some of them probably do want to. )

My mother retired a few years ago and has a part-time job because she likes to meet new people and see old friends at work! The majority of Senior Citizens are working because they have to. The reason they have to work is because their monthly income isn’t enough to cover their monthly living expenses.

Do you want to mop floors and clean bathrooms when you hit your golden years? If not, then consider this:

“If You Ever Want to Retire in Your Life, You Better Start to Create Passive Monthly Income Today”

What is guaranteed to you in today’s world? Is your job secure? Are you guaranteed to get Social Security or your pension at work? Will the stock market continue with hardly any growth? Study after study has shown that Social Security will run out of money.

The reason is because the baby boomer population will go from working and paying to Social Security to retirement and collecting Social Security. The number of people still in the workforce paying into the plan will not be enough to cover all of the outgoing payments made to retirees.

Look at Enron! Thousands of employees’ retirement accounts disappeared over night. Don’t think that you will be safe. The biggest problem that I see most people make is to rely on one income. Relying on one of anything is very dangerous to you. If you are relying on your 401(k) and the stock market crashes, you are going to suffer. If you are relying on Social Security and it runs out of money, you are going to suffer.

In fact, many people rely on just one income from their job. What happens when the company downsizes and your one income goes away? Never rely on one of anything. It is far too risky.

You really need to protect yourself from the danger of “one” by creating other multiple income streams. By having 20 income streams coming to you each month, you are not as dependent on any one of them. This book is about building passive monthly income streams that you can live on to ensure your financial security and independence.

When I say passive income, I mean money that you receive every month from your investments. Understand that it takes some work to set up passive income streams. However, once your income streams are set up, you simply have to manage them.

This is part one of a long series of posts that I will be rolling out over the next few months.

Thanks for reading and to ensure you receive all the posts in this series make sure to subscribe to my RSS feed to the right, you can also grab a copy of my Free Ebook.

Josh Schoenly is the central PA real estate investment expert and co-authored the book entitled “Income For Life” – you can claim your FREE copy at http://www.FreeIncome4LifeBoook.com
. To reach Josh directly you can call 717-620-3416 or email josh@midstatepropertygroup.com
.

Invest a Million Dollars – Three Possible Scenarios

If you have a million dollars to invest there are three possible scenarios or considerations before embarking on this. A million dollars is still, even today, a heck of a lot of money and the income it can produce, even in a humble bank term deposit is still enough for any middle class lifestyle to be afforded.

At around 7% per year, a million dollars simply put in a bank would deliver a before tax return of $70,000 or around $1400 dollars a week. Last time I looked, that amount of money can still buy a steak dinner every night and a holiday once a year. It is a reasonable return, but the first consideration you need to think about is the growth of that million dollars.

If you lived off the income the million dollars produced for you in a bank term deposit, then each year the capital will not be compounded, in fact if you spent it all, the interest component. In 10 years or 20 years or 30 years time, your million will still be a million dollars. However, inflation would take care of a nice large chunk of that money by 30 years time.

The second consideration is connected to this diminishing million dollars in 20 or 30 years. Typically when they talk about inflation, they do not talk about living expenses for people that own their own property. Usually inflation refers to the cost of housing and that historically goes up and up and up each year, historically to the tune of 7% a year in appreciation and 7% in possible rent returns. So in actual fact, that diminishing million dollars is not really diminishing if you are not interested nor need housing. If you think about it, things like cars, tv’s food and a host of life’s other luxuries and necessities are actually cheaper in today’s dollars compared to 10 or 20 years ago.

The third consideration is connected to the last. Real estate is historically a very safe place to park your money. Especially if you are buying for the long term it really matters little what part of the economic cycle you are buying in especially if you dont have finance to contend with. Real estate as stated bove historically returns 14% made up of rent and capital appreciation and therefore would be the most sensible choice for the investment of a million dollars.

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3 easy steps to be followed to become successful Intraday trader

If you want to succeed in Intraday trading, then you have to follow these 3 golden rules. These rules can be applied for each and every trade. If these rules are followed with conviction, then no one can stop you from being a successful trader. These rules will help you to earn the consistent profits from the stock market in the long run.

Discipline:
This is the most important rule to be followed by each and every intraday trader. Your success as a trader in the stock market is directly related to your trading discipline. In fact, the trading discipline is 90% of the game. You can succeed only if you trade with discipline. You will fail if you trade without discipline. If you hope to achieve trading success, then you must attain discipline. You should trade with discipline everyday and in every trade. Condition yourself to behave with discipline over and over again.

Content:
In order to make good trading decisions, the traders should be equipped with the market information. Content consists of all the external and internal market information. The market information collected must help the trader in making their trading decisions. Internal market information plays an important role. Internal market information is nothing but the time and price information given by the exchanges. Trading decisions will be based on time and price. In order to track the markets effectively you must have the up-to-date time and price information. It should be delivered to your personal computers through a reliable execution platform. You would be trading in dark, if you are not equipped with the instantaneous time and price information.

Mechanics:
Mechanics involves the methodology that you adopt to enter or exit the trades. Its all about how you access the markets. You can enjoy the success as a trader, if you master the mechanics. If you place your trade at the wrong time, then you will loose thousands of rupees. If your trading strategy is scalping, then your trade execution must be fast and efficient. Therefore its very important to master in entry and exit process.

These rules can be applied even in the volatile stock market. You just have to trade with discipline and respect the market. When you are right, don’t get too greedy and when you are wrong get out of the trade immediately.

If you feel that these rules are difficult to follow on the daily basis, then there is a way out. You can do the Intraday trading and earn profits from the stock market by taking the advice of the reputed stock advisory company which provides sure shot Intraday tips .

How to Invest $1 Million Dollars – Buying Property

With housing prices at a low and foreclosures on the rise, now is a great time to get in on the real estate market. If you’re looking into how to invest 1 million dollars, buying property can be a great option.

Before investing in real estate in this market there are a few things you should understand. First of all, this isn’t the ideal market for buying and selling properties quickly. You will need to buy a home or homes that you plan to hold on to for a period of time – possibly a few years. One option is to buy a home and live in it. You can wait for the market to rebound and sell it in a few years for a huge profit.

Another option is to purchase properties and rent them to tenants. You’ll be getting monthly returns in the form of rent checks on your investment. If you’re considering this option, be sure you realize the work that will go into it. You will have to provide regular maintenance to the property and deal with the hassles of finding tenants and ensuring they’re treating the property with respect. However, it can be well worth it when the 1st of the month rolls around and you see their rent coming in.

The key to how to invest 1 million dollars in property is to be in a position where you don’t need to see a return on your money immediately. You want to be able to wait for the perfect time and opportunity to sell your homes or rent them for maximum returns.

If you need money now, like I mean in the next hour, try what I did. I am making more money now than in my old business and you can too, read the amazing, true story, in the link below. When I joined I was skeptical for just ten seconds before I realized what this was. I was smiling from ear to ear and you will too.

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Once You Trade E-Minis Youll Never Trade Stocks Again! – Discover th

Ever noticed how Mutual Fund companies never talk about anything but ‘investing’. . . for the long haul? Ever noticed how even when ‘day trading’ became such a hot item, that stocks were the only thing they traded. . . and most still do? The public doesn’t know this – that while the mutual fund companies with all of their advertising keep the public thinking ‘investing’, they, themselves are day trading with their clients’ money. Unless you understand how ‘shorting’ works, you might think they couldn’t legally do that. . . and get away with it, but they can, and do. . . and on a massive scale! Yes, what they get away with is legal.

Think about what the average mutual fund makes for its owner per year: 10-15% appreciation growth (if the stock market has a good year). Did you know that a 2005 survey -to evaluate the value of mutual fund managers to their clients -vs-what they get paid, showed that the average annual salary of mid-level mutual fund managers was $472,000 dollars, and senior-level managers made over $750,000. The irony of it all is that they justify their performances by comparing them to what the S&P 500 Index does: bragging if they beat it, and consoling their client with “Well, the S&P went down, too. ” when they have a losing year. Regardless, they always get their salary ‘bonus’ though!

If you are an investor (in a mutual fund) or among the growing army of stock day traders (who have never known anything but stocks), you owe it to yourself to look into the ‘e-mini’ and discover the tremendous advantages it offers. Yes, trading is where the ACTION is in the stock market, and those who discover the e-mini always end up saying to themselves: “Oh, my. . . why didn’t I learn about this earlier!” It’s only been around since 1997. How has it been kept such an Insider secret?

Here, now. . . . I’ll just state two little things that I really appreciate about e-minis; then in my next post, we’ll go into some depth as to why. . . if you learn to trade e-minis, you’ll never again trade stocks (let alone invest in them).

How about ‘bag for the buck’? (ROI for the sophisticated)

You can open an e-mini trading account with just $2,000 dollars. It’s very common for a good e-mini trader to make $500 a day (the daily goal of most e-mini traders). What is the rate of return on one’s $2,000? Is it not 25% a DAY? I keep $10,000 in my trading account so my daily return on the $10K is only 5% a DAY. How’s that for ‘bang for the buck’? How does that compare to the average mutual fund’s performance?

The second thing I really appreciate is that you can do so much more with so much less money: It’s called ‘leverage’. You buy a stock (even just to trade it) and you have to lay out the market price of the stock. Yeah, if you’ve got ‘margin’ in your account, you can buy $2 of stock value for every dollar in your account (2-1 leverage). But, how many shares of even a $5.00 stock would you need to buy (and have in a trade) to make $500.00? Not only do you have leverage with e-minis of about 90-1, an e-mini trade is seldom OPEN for longer than 5-minutes!

If this catches your attention and peaks your interest, join me here next time.

Mel Hardman

http://www.melhardman.com

http://www.emini-forex-trader.com/forex-emini-trading

Boomers Private Banking Concept Using Your IRA

Boomer’s Bank Concept
In investment finance, private equity real estate is an asset class consisting of equity and debt investments in property. Investments typically involve an active management strategy ranging from moderate reposition or releasing of properties to development or extensive redevelopment. Investments are typically made via private equity real estate fund, a collective investment scheme, which pools capital from investors. These funds typically have ten-year life span consisting of a 2-3 year investment period during which properties are acquired and a holding period during which active asset management will be carried out and the properties will be sold.

History and evolution
There is a long history of institutional investment in real estate both through direct ownership of property and through pooled investment funds. Initially institutional real estate investments were in core real estate, however, market conditions in the early 1990s led to the emergence of opportunistic funds which aimed to take advantage of falling property prices to acquire assets at significant discounts. [1] Private equity real estate emerged as an independent asset class in the beginning of the 21st century and has experienced huge growth in recent years. Strategies Private equity real estate funds generally follow core-plus, value added, or opportunistic strategies when making investments.

Core Plus:
This is a moderate risk/moderate return strategy. The fund will generally invest in core properties, however some of these properties will require some form of enhancement or value-added element. Value Added: This is a medium-to-high risk/medium-to-high return strategy. It will involve buying a property, improving it in some way, and selling it at an opportune time for a gain. Properties are considered value added when they exhibit management or operational problems, require physical improvement, and/or suffer from capital constraints.

Opportunistic: This is a high risk/high return strategy. The properties will require a high degree of enhancement. This strategy may also involve investments in development, raw land, and niche property sectors. Investments are tactical. Features Considerations for investing in private equity real estate funds relative to other forms of investment

Include:
Substantial entry costs, with most funds requiring significant initial investment (usually upwards of $1,000,000) plus further investment for the first few years of the fund. Investments in limited partnership interests (which is the dominant legal form of private equity real estate funds) are referred to as “illiquid” investment’s, which should earn a premium over traditional securities, such as stocks and bonds. Once invested, it is very difficult to gain access to your money, as it is locked-up in long-term investments, which can last for as long as twelve years. Distributions are made only as investments are converted to cash; limited partners typically have no right to demand that sales be made. If a private equity real estate firm can’t find suitable investment opportunities, it will not draw on an investor’s commitment. Given the risks associated with private equity real estate investments, an investor can lose all of its investment if the fund performs badly.

For the above-mentioned reasons, private equity fund investment is for those who can afford to have their capital locked in for long periods of time and who are able to risk losing significant amounts of money. This is balanced by the potential benefits of annual returns, which are often above 20% for successful opportunistic funds. Investors in private equity real estate funds tend, therefore, to be institutional investors or high net worth individuals.

Size of Industry

The popularity of private equity real estate funds has grown since 2000 as an increasing number of investors commit more capital to the asset class. In 2000 private equity real estate funds raised $12 billion in equity commitments from investors. By 2005 this had increased to $58 billion and in 2007 private equity real estate funds raised a total of $79 billion. Private Equity Real Estate is a global asset class and in 2007, 46% of capital raised was focused on the US, 26% was focused on Europe and 27% was targeting Asia and the rest of the world. By providing online real time services one on one client attention is always in mind.

There is a requirement for needed experience to switch to self-directed retirement plans; The investment Group can help investors chart a new – and potentially more profitable – course for their retirement years.

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The investment Group who is on top of changes in the fields of IRAs and investing – the principals were among the first to tackle the Roth IRA and the effects it had and is having on IRA -401k investing. Finding Investments for YouThe investment Group, Inc. ‘s primary service is finding and analyzing real estate-related investments for purchase by our clients.

We are investment real estate brokers and have been in business doing this since 2002. In 2002 we started working with IRA clients to assist them in finding appropriate investments in the real estate arena.

Investment Group’s find these assets by their network of investment real estate brokers throughout the U. S. (a network built through the Real Estate Cyber Space Society). They meet with these investment brokers online daily. These networking arrangements are with 11,000 brokers; take place in Cyber Space in real time. By being an active member of the Real Estate Cyber Space Society we can satisfy their clients’ investment needs no matter how diverse.

The Groups clients give direction on what it is they would like to purchase; when the Group finds it they do a complete analysis of the investment and forward their due diligence to the respective clients. The client can review the information, take it to any other advisors they have and make a decision. If they wish to purchase the product the Group will go forward with the acquisition. If not, the Group finds another investment property for the clients review.

On occasion their clients have requested that they pay their fee’s on real estate acquisitions and then work as a buyer’s broker. As a free service to their IRA clients who use their investment services, the Group assist them in finding the correct custodian to service their account. Not all custodians are the same and it is vitally important to choose the right one the first time. In Today’s world, to make things happen now, we need to be in Real Time Mode for your Clients.

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Concept Boomers-Bank The Investor’s Guide to Commercial Real Estate and Retirement Planning How to Invest In Commercial Real Estate Using Your IRA or 401(k). . . Maximize Your Profit. . . and Save For Retirement & Cash Flow

Little Known Commodity Futures Broker Orders

Commodity futures trading has a variety of broker orders no longer in frequent use. These are not taken so much anymore. Several are nearly obsolete because of twenty-four electronic trading.

One type of now little used order to commodity futures brokers is called Immediate Or Cancel (IOC). This is much like a Fill OR Kill (FOK).

The order is sent to the floor broker. If they can fill it, fine. If not, it’s cancelled.

The difference is that with a FOK order, the trader will not accept partial fills. They want either the entire order, or nothing.

With an Immediate Or Cancel order, the trader is willing to accept partial fills. So if they wish to buy ten December corn contracts but the floor broker can get them only five, they’ll take the five.

Both KOC and IOC orders are good for day traders who want to get in fast so they can get out fast, to take of very short term opportunities.

With an IOC order, the trader can take at least part of the position they wish, if not all of it.

There’s also Market On Open (MOO) orders. This is where an order is entered before the market opens, and the floor broker is to fill it within the first three minutes of the market being open.

These orders used to be more common before electronic trading kept orders open 24 hours a day. A trader could study the markets during the evening or weekend, determine their trades and then get their orders in to be filled when the market opened.

However, other traders stayed away from Market On Open orders because the opening of the market is very volatile. Fills could be unpredictable. Thus, there is now a lot of possibility of errors and liability, so many brokers are reluctant to accept them, although some full service brokers still do so.

In commodities with 24 hour trading, you must clarify with the broker exactly what constitutes the open.

The opposite of MOO orders is Market On Close (MOC) orders. Here the order must be closed in the final three minutes or thirty seconds before the market closes for the day.

This is also of less importance because of electronic 24 hour trading. Although, to day traders, it’s even more important they go flat before they shut down for the day, because they could lose a lot of money overnight. However, it’s not necessary for them to get out at a particular time. They can give their brokers the close out orders at any time of the day or night.

Electronic contracts don’t accept MOC orders. The brokers that do accept them do so on a “not held” basis. That means they can’t be held responsible for not being able to execute the order.

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Fractional Life Settlements – The New Way to Acquire Strong, Safe, In

Where can an investor receive an attractive rate of return while protecting their principle? The stock market is languishing, oil prices and inflation rates are high, interest rates are low and can only go upward, and real estate and the mortgage markets have been taking it on the chin.  
Anyone that has had their money in the stock market knows that it has not been performing well.  The S&P track record over the last ten years has been a disappointing 1 or 2% annually.  

That is a huge blow to anyone who is saving for retirement or just trying to beat inflation.  The last 10 years is commonly being referred to as the Lost Decade of savings by professional investors.  This Lost Decade is forcing folks to put off retirement, or reduce their anticipated income available if they retire.  For younger investors, it is also discouraging to realize that the last 10 years brought a negative real return (earnings minus inflation) to their portfolio.  
Economic data is indicating that there will not be a turnaround anytime soon.  So where can an investor realize an attractive return in a conservative investment without the roller coaster of the stock market?

Fractional Life Settlements are attracting an increasing amount of investment capital.  A Life Settlement is the sale of an existing life insurance policy by a terminally ill or elderly person to another party.  The price of the policy is negotiated and sold by the owner at a discount to the face amount.  The purchaser then collects the full amount paid out under the policy.

Following is an example of how it works: An elderly person who owns a large permanent life insurance policy does not want or need it anymore.  This could be due to affordability, estate tax law changes, or other various factors.  Most folks believe that they have two choices at that point – stop paying on the policy and let it lapse, or to take out the cash value of the policy (which is usually pennies on the dollar).  However there is a third option.  They can sell their policy on the open market to an investor(s) for cash.  The investor takes over the premium payments and receives the death benefit while the insured gives up all rights to the policy and receives cash now which enhances the quality of their remaining days.  For his participation, the investor historically earns a double digit return on his investment.  This creates a win-win for the insured and the investor.

Life Settlements are a very conservative investment.  The policies are backed by the strongest and largest legal reserve investment grade insurance companies in the world.  They have not failed to pay a death benefit in over 160 years.

Another attribute of Life Settlements is that they are an Uncorrelated Asset.  This means that their performance is not tied to any market.  Stocks can go down, oil prices can skyrocket, interest rates can rise, commercial real estate and the housing markets could collapse, foreign countries and their markets could plunge and it would not affect mortality rates.

As the markets become more global, it is increasing harder to diversify an investment portfolio.  Wall Street firms have known this for a long time.  Barclays, Berkshire Hathaway, Chase, GE Capital, and Merrill Lynch are some of the many institutional investors that have been purchasing Life Settlements for years.

Besides the low risk/high return feature of Life Settlements, another unique aspect of the investment is that each day that a policy is owned, it comes closer to maturity (death benefit payout).  Knowing this takes the emotion out of buy/sell decisions.  An investor does not need to check the paper every day to see how his portfolio is doing; he knows that with each passing day, he is closer to his policies maturing.

For years the Life Settlement field was open only to large institutional investors who can purchase entire policies at a time.  However, individual accredited and institutional investors can participate by purchasing Fractional Life Settlements.  These are non-pooled policies that allow investors to own a fraction of a number of policies.  Owning a small piece of several policies provides the diversification necessary to achieve a predictable rate of return for an individual life settlement portfolio.

Randy Martens is a life settlement expert and owner of Wealth Management and Asset Protection Group, LLC (WMap), in Austin, TX, dedicated to protecting and growing the assets of his clients through conservative investments such as Life Settlements.

For more information, please visit http://www.retirementprotectionsite.com

Copyright © Randy Martens 2008

Warrants Vs Options – Whats The Difference?

The simple answer is that warrants are issued by companies to raise money options are not. Let’s take a look at how options and warrants are alike:

1) Options and warrants expire at a pre-determined date

2) Options and warrants are based on an underlying asset such as stocks

3) The seller of an option or warrant is OBLIGATED to honor the terms of the option or warrant

4) The buyer of an option or warrant must pay a price (or premium) up front

5) Options and warrants can only be exercised at a pre-determined price or strike price

6) Options and warrants can be exercised anytime (American style) or at expiration (European style). This depends on the terms of the option of course.

7) When the underlying asset of the options and warrants are trading below the strike price of the option or warrant then the price of the option or warrant is generally based on time or volatility. To grasp the time concept think of an airline selling seats on a plane that leaves in 1 day and another seat on a plane that leave in 1 month. You are more likely to get a passenger for the 1 month ticket than the 1 day ticket and, of course, the airline charges more for the 1 month ticket.

8) When options and warrants are exercised your profit is the difference between the strike price and the market price. Obviously you won’t exercise you warrant or option if the price you can exercise them at is above the market price. For example, I say you can buy 1 apple from me in 2 weeks at $2. After 2 weeks the price of apples is $1. You wouldn’t pay $2 for my apple now would you? Conversely if apples were selling for $3 you would gladly buy mine at $2 and turn around and sell it at $3 for a $1 profit.

Now lets take a look at the differences between options and warrants. As I said earlier companies issue warrants to raise money but do not issue options (Don’t be confused with employee stock options). Why do companies issue warrants? They want to raise money. Consider the ways in which a firm can raise money. Borrow from the bank. Always short term (1 year or less) and banks have the first claim on assets of a bankrupt firm.

They can issue a bond. Companies must make semi-annual or annual interest payments on the bond and must buy back the bond when it matures. Bonds can be both long and short term. This can be a substantial drain on the firms cash.

Firms can also issue stock into the market called a secondary offering or private placement. Here the company literally sells stock in the market to an individual or small group of investors. This is to ensure that they won’t sell the stock as soon as they get it. Keep in mind these additional shares will dilute earnings for existing shareholders and will also reduce their ownership stake in the company.

Another way a company can raise money is to issue warrants. These allow the company to generate money by selling stocks to the owner of a warrant who exercises the warrant. Keeping in mind the apple analogy that they will only exercise if the stock price is higher than the exercise price. Also the warrant issuer will set terms of the warrant such as how many warrants need be exercised for 1 share of stock, or that the company may buy the warrant back at their leisure if the underlying share prices trades at or above a certain price. The conditions set on a warrant are up to the issuer and vary greatly. These are called the tenants of the warrant. Conversely, with options specific conditions are already predetermined for each and every option such as expiration date – the all expire on the same day. Strike price or exercise price ladders are always known. For example, October apple options will have a strike price of $1, $2 or $3 and so will November, December and every month going forward. The strike price of the Warrant can be anything the issuer wants. If you want to buy the companies warrant these are the terms.

There is another kind of warrant called a covered warrant that are generally issued by investment banks and are very popular in Hong Kong among others. These investment banks are not looking to raise capital but to offer an additional tool for investors to manage their portfolio. There are 2 kinds of covered warrants; call warrants and put warrants. You may be thinking that calls and puts are options well they are but in the case off these warrant types it is indicating whether you have the right to buy or sell the warrants much like the option type. Covered call warrants allow you to buy or “Call Away” the underlying and covered put warrants allow you to sell or “Put to” the seller the underlying. These products are a hybrid of both the company warrant above and an option.

By: Stephen Edge

Visit http://www.AsiaEtrading.com the electronic trading resource for Asia. Are you Connected?

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Vacation Pay – How to Shelter it From Taxation

Vacation pay is an important consideration with job termination that can add up to a substantial amount of money. Depending on your current income level and your length of service at your employer, a few weeks of vacation pay can easily attract the top level of taxation. This means you can easily lose half your vacation pay away to taxation. Some employers will give you the option of receiving your pay over x number of weeks verses a lump sum payout.

One solution for sheltering your vacation pay out from taxation is to have your pay put directly into your Registered Retirement Savings Plan. (R. R. S. P. ). To perform this transfer you must have the contribution room. his is a simply process that is offered to most member who are terminated from employment. If it is not listed as an option in your termination papers you may simply have to ask your human resource contact person for it.

To perform this transfer requires you to know a couple important items of information. The first item of information is to find out if you have enough room to transfer your vacation pay to your R. R. S. P?

This information can be found on your last notice of assessment you received when you filed your last tax return. Be aware that over contributions would be penalized at a significant rate.

Your written financial plan should take into account the possibility of job loss and how to shelter your possible vacation pay from taxation. Think about this before you decide to fully top up your RRSP contribution limit as it may force you to take your vacation pay as income in a lump sum which could cost you thousands of dollars in unnecessary taxation.

Rick Henderson is a well known author, speaker and educator. his website is a library full of retirement planning strategies. His latest book 90 Days to Retirement is available free through his website http://www.financialideas.ca Rick also offers second opinions about your retirement plan to give you peace of mind and ensure you avoid the most common mistakes most investors make.

You can request his latest “CD” isn’t it time you got a second opinion about your wealth by visiting http://www.financialideas.ca and clicking any email link and type “CD” in the subject