Inside Money-Finance Making Your Money Work!

Are you thinking about saving for your retirement? If yes,
then you should now consider availing of a 401k retirement
plan. This kind of retirement plan is actually being set up
and sponsored by your employer. In short, the amount which
you can accumulate from this retirement plan depends upon
the amount being contributed by your employer. But what if
you have found another job and you already want to leave
your current employer? Does this mean a goodbye to your 401k
retirement plan as well? Fortunately, you can still have
your 401k plan even if you have decided to leave your
current employer through the so-called 401k rollover.

Rolling over your 401k plan simply means that you need to
move your 401k away from your previous employer. You can
actually move your 401k account either to your new employer
or to an IRA. Rolling over your account is deemed to be
essential in order to do away with any probable fees that
your previous employer may charge you. You only need to make
sure to follow all the rules in rolling over a 401k plan to
avoid any problems and to have no regrets too at the end of
the day. In fact, some of the important rules which you need
to keep in mind when doing a 401k rollover are as follows:

Posted under Finance

Starting in 1929, the world would witness one of the
greatest economic downturns ever recorded. Originating in
the United States, the Great Depression began in late
October with an unprecedented stock market crash. How could
a twentieth century economy nearly collapse? The Great
Depression provides an example of falling markets and
widespread poverty. However, one significant outlier existed
in the market at the time: gold industry. Exemplified
through a brief analysis of Homestake Mining, gold industry
stocks experienced extraordinary gains in share price and
dividend payouts.

During the 1920s, the United States experienced a remarkably
bullish equity market. However, gold stocks, in general,
were not participants; instead, they underwent a downward
trend. Gold companies had been afflicted by a bearish market
since the late 1880s. This would all change with the onset
of the Great Depression. Gold stockswould prove to thrive
during this global economic slowdown. Our central
illustration will focus on the Homestake Mining Company, one
of the world’s largest gold producers in the early twentieth
century.

Homestake’s main operation was in the heartland of the
United States, mining gold from the hills of South Dakota.
Most gold sector historians agree that Homestake serves as a
fair representation for the entire gold mining industry at
the time. One must note that the U.S. government passed the
Gold Standard Act in 1900 which placed the entire country on
the gold standard, creating a fixed exchange rate with all
other countries whose currencies were fixed to the gold
price. With a fixed gold price, gold stocks fluctuated
around production levels, growth rates, cash costs, and net
asset value. Changes in the gold price were unable to affect
the stock price when the country entered the Great
Depression.

Homestake stock sold for about $65 per share in 1929. By
1933, the average stock price for Homestake was around $370.
This represents a gain of more than 450% over the course of
four years. The Dow Jones Industrial Average fell 89% over
the three years between its 1929 peak to its 1932 bottom.
Not only did stock prices increase for Homestake, but
dividends also skyrocketed. In 1929, Homestake paid
dividends of about $7 per share. By 1935, dividends had
increased to $56, a staggering rate of 800% over six years.
During these deflationary times, gold stocks not only
retained their values but provided significant returns for
investors.

Deflation, the underlying crisis during the Great
Depression, results in heightened gold stock prices. The
reason why is that deflation diluted the value of the U.S.
dollar while the price of gold was fixed by the government.
While some would argue that this fixed gold price ensured
the rise for gold stock prices, this fallacy is simple to
debunk by examining the positive effects on gold stocks
after the removal of the gold standard in 1971. Even though
the gold price was no longer fixed, gold stocks performed
normally. Interestingly, Congress passed the Gold Reserve
Act of 1934 and gave the government permanent title to all
gold assets. Most importantly, it increased the gold price
to $35 and further devalued the dollar. This certainly
contributed to the spike in Homestake’s share price from
1934 to 1935.

Looking forward, gold stocks are very promising under the
current market as deflation is likely. Should deflation
enter the 2009 economic crisis, gold stocks will be set to
perform at record highs. Gold prices would cross the $1000
barrier and further elevate gold company shares. The
magnitude could be far greater than what was witnessed
during the Great Depression when Homestake had annualized
gains of more than 100%. Gold will no longer be seen as a
placeholder for value, but as an investment for an uncertain
future.

Starting in 1929, the world would witness one of the
greatest economic downturns ever recorded. Originating in
the United States, the Great Depression began in late
October with an unprecedented stock market crash. This
article details gold price and gold stocks during the Great
Depression.

Posted under Finance

You Can
Be 50% Less in Debt

The vast majority of people have little idea that they can
reduce their credit card debt by 50 per cent without ever
having to pay a nickel. In fact, they are not sure of their
consumer rights when it comes to money matters most of the
time, but it is true that half of your credit card debt can
be erased legally.

It a time of severe economic strife, credit card companies
are beginning to turn the screw on those who are lagging
behind in paying their due amounts. It’s an unpleasant
experience to say the least. The fact is that one in 73
households are expected to declare themselves bankrupt in
2009.

That statistic is not surprising when you consider that a
credit card debt of $10,000 can take over 20 years to pay
off completely, with interest charges keeping the figure
moving upwards all the time. $10,000 is the average owed by
each household in the US.

But there are ways to escape the trap, with some private
companies make available information that will alleviate the
pressure. These companies are basically supplying you with
details that the credit card companies don’t want you to
know, but by availing of your consumer rights you can slash
your debt significantly.

So, if you have serious difficulty in meeting your minimum
payment figures for your credit cards and feel that you just
won’t be able to pay off the debt that you have accumulated,
check out the information. It’s free on the internet and it
could ease your financial worries.

The vast majority of people have little idea that they can
reduce their credit card debt by 50 per cent without ever
having to pay a nickel. In fact, they are not sure of their
consumer rights when it comes to money matters most of the
time, but it is true that half of your credit card debt can
be erased legally.

Posted under Finance