The U.S. economy is in a bit of a pickle. In no particular order, we’ve had a housing bubble, a credit bubble, a bear market in stocks, soaring energy costs, falling consumer spending, increasing unemployment, high food costs and burdensome debt levels.
The government has taken steps to maintain calm and stabilize the system—lowering interest rates, mailing $100 billion in stimulus checks, bailing out Bear Stearns, guaranteeing the debt of Fannie Mae and Freddie Mac, passing a $700 billion homeowner rescue package—but the problems have spread so rapidly that they threaten to pull the United States and possibly the rest of the world into recession.
To be sure, the economy is officially in recession. The National Bureau of Economic Research finally made the call.
Financial experts say there are ways you can protect yourself:
1. Don’t panic. Recessions have historically occurred every few years and they last, on average, about 10 months. No matter how bad it gets, the vast majority of people will still get up and go to work, pay their mortgage, and take a vacation now and then. The steepest recession in the last 30 years occurred in 1981. It lasted 16 months, the economy shrank 2.6 percent and unemployment reached 10.7 percent. More recent recessions have been less severe. The 2001 recession lasted only eight months, the economy shrank less than 1 percent and unemployment was barely over 6 percent. “The last recession was over before it was officially announced,” says Ernie Goss, professor of economics at Creighton University in Omaha, Neb. “This one will likely be somewhat longer because of the sharp downturn in housing, but the economy will eventually recover.
”2. Repair your balance sheet. Many who took on heavy debt to purchase inflated assets like real estate are now in a position where they owe more than they own. According to a recent report by real estate website Zillow, nearly one-third of all homeowners who bought since 2003 now owe more on their mortgage than their homes are worth. For some, selling or refinancing may be an option. Get rid of debt where possible and build up your cash reserves so you can ride out the storm. And put away the plastic. Credit cards in a downturn are like saltwater to a thirsty person lost at sea: It looks tempting, but it won’t help. Cut up all your cards except one for emergency use and then make a list of creditors to whom you owe money. Starting with the high-interest-rate credit cards first, pay off your purchases from years past before making any new ones.
3. Stop the bleeding. We all have leaks in our budget that can add up to serious money. Spending $10 a day at the vending machine or the mall is $3,650 per year. That same $3,650 would be a good start on a cash reserve or could be used to pay off high-interest credit cards. Miscellaneous expenses are the easiest to cut, but don’t be afraid to trim the fat in the rest of your budget as well.
4. Meet with your advisers. During the last bear market, many people learned the hard way that their investment portfolios were not properly allocated. Now is the time to ensure that your investments make sense based on your goals, time frame and risk tolerance. If you’re currently working with an adviser, these meetings are likely included in the fees or commissions you’re already paying. If you’ve handled your finances on your own and are just interested in receiving a second opinion, most firms are willing to provide consultations on a fee-only basis, usually ranging from $100 to $300 per hour.
5. Keep investing. When money is tight, it’s tempting to stop making IRA and 401(k) contributions. Because of the power of compounding, however, taking even a one-year break could put a serious dent in your nest egg—even more so if cutting back on your contribution means giving up your employer match. To illustrate, if you have 10 years to go until retirement and are contributing $250 per month to your 401(k), skipping just one year of contributions would shrink your nest egg by $6,000, assuming an 8 percent annual return.
Also, if you’re nervous about throwing money into a sinking market, consider the tip offered by health services coordinator Dorothy Ray of Omaha: “Investing into a volatile market has been scary, so rather than watching my account balance I’ve been watching my share balance. More shares will eventually translate into more money.
”Legendary investor Shelby Davis says it well: “You make most of your money during a bear market. You just don’t realize it at the time.”
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Change
Change can be good for you. In today's world of societal and corporate change, job security is a thing of the past. While we must face the fact that change is inevitable, we should also realize that many changes are positive and benefit both individuals and businesses.
Some things you can change and some you can't. You cannot change when you were born, where you were born, how you were born or to whom you were born. It's a fact that if you were born white you will stay white and if you were born black you will remain black. It's a fact that you cannot change a single event that has already happened. You can't change one whisper of yesterday. Tomorrow, however, is an entirely different matter. If you're willing to change your thinking today, you can change your life and your living to make your tomorrows better and brighter.
Message: Analyze your situation. Have you gone as far as you can go and are you doing as well as you can with present procedures? If so, don't be afraid to take two steps back if it will enable you to move three steps forward.
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Congratulations Myron!
Our Holiday Gift Card Member Winner for November!
With the Holidays approaching Find Notary Agents is conducting a Monthly $50 Holiday Visa Gift Card giveaway each Month thru December 31, 2008 To be eligible for the Visa Gift Card drawing, you must be a current, paid member of Find Notary Agents. All current and future members (until December 2008) are eligible for the monthly drawing. Refer a-Friend Program. Your name will also be entered into the drawing AGAIN each and every time someone you have referred registers and becomes a paid member of Find Notary Agents. Please notify us via an e-mail in the contact us section immediately when you refer someone you know. Each month, winners will be posted on the Find Notary Agents website. Individual winners will be notified via email and by the phone numbers listed on their member’s profile pages.
Check out Myron at: http://www.findnotaryagents.com/372/Myron-Von%20Raesfeld/
Congratulations Myron!
Find Notary Agents
David
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There’s no question we’re in challenging economic times, and everyone has been affected, including the nation’s Notaries. But, despite current realities, the American Notary office always finds a way to transcend as new opportunities emerge — particularly when recovery requires a major strengthening of the concepts of impartiality, third-party proofing, evidentiary support and individual accountability. Part of the cause of the economic downturn is rampant fraud and identity theft, which has resulted in billions of dollars in losses across the breadth of industries. That’s why there is a significant, new demand for Notaries. These industries now need secure electronic document processes protected by e Notarization, along with secure identity proofing to increase society’s trust and confidence in individuals who send, receive and handle sensitive electronic documents. Notaries are needed to establish the identity of individuals applying for electronic identity credentials —commonly known as digital certificates — which provide them access to secure electronic environments, and enable them to sign and transmit these documents safely, thereby reducing fraud. The National Notary Association reacted to this demand quickly by introducing the Trusted Enrollment AgentTM Program. For the first time, some of the nation’s largest industries are relying on you and your Associations to help secure millions of annual transactions, based on the federal government’s need for a network of professionals trained in secure identity proofing. This urgency plays into the bigger picture of the adoption of eNotarization and eRecording, with a starting point in any given state being the passage of the Uniform Real Property Electronic Recording Act (URPERA). So far, 20 states have adopted URPERA, setting the stage for widespread implementation of eNotarization. Despite these challenging times, Notaries will thrive because they are the nation’s primary guardians of document security and trust. Notaries provide solutions to the difficult problems caused by identification abuse and fraud. And Notaries, without question, are a critical part of the economic and legal fabric of America. Published by the National Notary Association, 9350 De Soto Avenue, Chatsworth, California, 91311-4926, and reprinted with permission. Contact the NNA at (800) 846-6827
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Welcome to Find Notary Agents Blog where you'll find Notary and local information, consumer alerts and great deals, and more. You are welcome to post. If you find something helpful or have suggestions, please let us know about it. Enjoy!
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Peer-to-peer lenders set to thrive amidst turmoil.
By Reuters
Bank Systems & Technology REPRINT
October 31, 2008
KANSAS CITY, Mo. - One woman wants to pay off medical bills. An Ohio couple wants $5,000 to start a home business. An Illinois college student needs help with tuition.
With bank loans drying up amid financial turmoil around the world, these would-be borrowers aren't looking to traditional channels for money. They have turned to the fast-growing online industry of peer-to-peer lending, in which online companies like Lending Club, Prosper and Loanio connect people who need money with those who have it.
Through this peer-to-peer arrangement, borrowers get the money they want, typically at lower rates than through a credit card or bank, while individuals lending the money collect higher interest rate returns than they might find in more traditional investments.
Twelve traditional banks turned down Tim Murphy's request for a $25,000 loan to start a gourmet popcorn shop in an Atlanta suburb, but he found 97 different individuals willing to share in lending him the full amount through Lending Club.
Murphy's 1,600-square-foot store now offers a dozen varieties of popcorn, including parmesean and garlic, ranch-flavored and nacho cheese.
"It's growing, slowly, but growing, said Murphy.
While demand for peer-to-peer loans is on the increase as traditional banks tighten their lending, the model is not without its problems.
Prosper earlier this month stopped signing up new lenders while the Securities and Exchange Commission evaluates its regulatory filings, a process that could take up to six months.
The amount of new lending on Prosper each month was already declining from a peak in May and average interest rates were increasing.
With the U.S. economy sliding toward recession, lenders are becoming leery of tying their money up in a peer-to-peer loan that typically runs three years and borrowers who could default.
BETTER THAN STOCKS
Nevertheless, the model is still enticing for some investors and the peer-to-peer sites say they are here to stay.
Eric Di Benedetto of San Francisco said he and a partner have loaned nearly $1 million to hundreds of borrowers, and so far have found much better returns -- averaging above 12 percent -- than they could have garnered elsewhere.
"The stock market hasn't really done well over the last few years," said 43-year-old Di Benedetto. "We were looking for something that was relatively safe while returning double-digit returns. Banks have made a business of this for hundreds of years."
Sheryl Garrett a financial planner based in suburban Kansas City, Missouri, has advised some of her clients to invest their money in peer-to-peer lenders.
"All the stars are in alignment when credit is tight and investment opportunities have dried up," she said. "This is a way for borrowers to get the capital they need to keep our economy going, but also provide the investor, the lender, an opportunity to work in something they feel a lot more comfortable about than the stock market."
And a new company, Loanio, entered the market on Oct. 1, aiming at borrowers who have been turned away from other lending sites because of poor credit.
More than 1,000 people signed up to participate within Loanio's first week, according to CEO Michael Solomon. The company encourages borrowers to use friends and family as co-signers and verifies a borrower's financial footing for a fee, Solomon said.
"A lot of traditional lending channels have been drying up," said Solomon, who is hoping the approaching Christmas shopping season will boost borrowing interest. "This is a nice complement."
PERFECT STORM
Lending Club, based in Sunnyvale, California, limits itself to borrowers with good credit histories and brags of a default rate of less than 2 percent. It has started a secondary market where lenders can cash out of their loans early, after seeking regulatory approval from the Securities and Exchange Commission.
"The social lending industry is here to stay," said Lending Club CEO Renaud Laplanche, who cites the upheaval in financial markets as "the perfect storm" for his business, which has done about $20 million in loans in 18 months.
"Because of the credit crunch, borrowers have much less of an opportunity to get a good rate if they get a loan at all, and for lenders the average interest rate is 12 to 13 percent, a double-digit net return, which is a lot better than the stock market," Laplanche said.
Prosper is similarly registering with the Securities and Exchange commission to set up a secondary market, halting activity on its site pending SEC review.
Prosper generates revenue by collecting a one-time 2 to 3 percent fee on funded loans from borrowers, and assessing a 1 percent annual loan servicing fee on lenders. Lenders bid to fulfill borrower loan requests by offering the lowest interest rate they are willing to accept.
Another company that sees a niche in the credit crunch is Virgin Money, a unit of Richard Branson's Virgin Group, which is expanding into the United States.
Virgin Money USA, which focused on handling transactions for borrowers and lenders who already know each other, now offers mortgages in the United States as traditional banks back away.
"What we've seen in the last few months is greater interest among both borrowers and lenders in looking for alternatives. Part of it is by necessity and part of it is by choice," said Asheesh Advani, chief executive of Virgin Money USA. (Reporting by Carey Gillam; Editing by Eddie Evans)
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Congratulations Shoshanna!
L&G Mortgagebanc, Inc.
Our Holiday Gift Card Member Winner for October!
With the Holidays approaching Find Notary Agents will be conducting a Monthly $50 Holiday Visa Gift Card giveaway each Month thru December 31, 2008 To be eligible for the Visa Gift Card drawing, you must be a current, paid member of Find Notary Agents. All current and future members (until December 2008) are eligible for the monthly drawing. Refer a-Friend Program. Your name will also be entered into the drawing AGAIN each and every time someone you have referred registers and becomes a paid member of Find Notary Agents. Please notify us via an e-mail in the contact us section immediately when you refer someone you know. Each month, winners will be posted on the Find Notary Agents website. Individual winners will be notified via email and by the phone numbers listed on their member’s profile pages.
Congratulations Shoshanna!
Find Notary Agents
David
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If you haven’t failed, you’re not trying hard enough
SUCCESSFUL PEOPLE FAIL ON OCCASSION: It's how we learn and improve. If somebody tells you they haven't failed, it's probably because they aren't trying hard enough.There's nothing inherently wrong in failing...if we use it to better ourselves.
OUR CAREERS ARE ABOUT CONTINUOUS IMPROVEMENT: None of us were born with the silver Notary Agent spoon in our mouths. While there may be an elusive "Natural Notary Agent" out there, they tend to be few and far between. Notary agents, over their careers, tend to continue to make small improvements in their performance. Constant tweaking of the listing presentation, improving negotiating skills, networking, continuing education credits, Notary certifications, etc. We are always moving forward. Even Find Notary Agents is continuing to tweak and improve as it matures. When we stop improving we enable our competition to overtake us.
A NOTARY AGENT CAREER IS ABOUT CONTINUOUS IMPROVEMENT: Ever wonder why some Notary Agents succeed and some fail? There's an old truism out there that I've often heard repeated..."He/she doesn't have twenty years experience, they have one year's experience repeated twenty times." There's a huge difference there. Hopefully you're not the same agent you were when you first started.
YOU WILL FAIL - SO WHAT: Thomas Edison, holder of 1093 patents, tested 9000 types of filaments before he was successful in developing one for the incandescent light bulb. After 8,000 his friends gathered around him and jeered him saying "Thomas, how does it feel to have failed 8,000 times? His response was, " I haven't failed, I've just found 8,000 ways that don't work!"
I FAILED, LET'S HAVE A PARTY: There are some Notary agents who do this. It's called a "Pity Party." If they lose a engagement they have a brief "Pity Party." Acknowledge the loss, learn what you could have done better, than move on. The whole key to having the "Pity Party" is to get over the loss as soon as possible. If you're invited to a "Pity Party", go, they're buying the drinks.
MEET MR. OR MRS. PERFECT NOTARY: Yeah right, over there, standing next to the Unicorn.
THE OCCASSIONAL FAILURE MAKES YOU A BETTER NOTARY AGENT: Once you fail, don't you try harder the next time to succeed? I know I do. I hate to lose and do everything in my power to make sure it doesn't happen again. For me, the occasional failure is a strong motivator to do better. It sharpens my desire not to fail again.
FIND NOTARY AGENTS CAN HELP: David, get a grip, it's only a blogging platform. Not really. There are so many experiences being shared by some very bright people.
If you don't take advantage of the learning available on Find Notary Agents...you've failed one more time.
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IRS Announces Mileage Relief for Mobile NotariesTraveling professionals such as mobile Notaries know the cost of traveling is steep when assignments are down and fuel prices are on a rollercoaster. The IRS provided relief when it boosted the optional standard mileage tax deduction for the last half of 2008.The income tax deduction is now 58.5 cents per mile for all business travel after July 1, 2008 — a hefty hike from 50.5 cents per mile. The IRS typically updates mileage rates each fall for the next calendar year, but made this special adjustment because of 2008’s wildly fluctuating gas prices. The business standards mileage rate is used to calculate the deductible costs of operating a car for business purposes. Keep a mileage log and keep it up to date.
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Myths and FactsAbout ‘Apostilles’
Apostilles are issued by a designated government agency in the state where the Notary is commissioned.
It’s that authenticating certificate with the really funny-sounding name. Perhaps it’s Americans’ lack of familiarity with the French language. Whatever the reason, understanding the purpose of the apostille (pronouncedah-puh-STEE andmeaning “notation”) seems to be a bugaboo for a surprising number of Notaries. There are few things that can cause a notarization to grind to a halt as quickly as a misguided request that the Notary attach or obtain an apostille for a notarized document. Few people, including many Notaries, are aware of what an apostille is, what it does, and even who is allowed to issue one. An apostille is not a notarial act. An apostille is simply a certificate verifying the validity of a Notary’s commission at the time a notarial act was performed. It is attached to a notarized document by a governmental agency to allow that document to be recognized as legitimate by a foreign nation. The apostille replaces the traditional “chain certification” process which might require as many as six or eight authenticating certificates to be attached to a single notarized document, each certificate authenticating the previous one. The apostilleis used when notarized documents are exchanged between nations that have signed a 1961 treaty called the Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents. The United States is one of those 92 nations. In the United States, Notaries do not issue apostilles or affix them to documents. Though the process varies by state, apostilles are issued by a designated government agency in the state where the Notary is commissioned, typically the Secretary of State’s office. Once a documentis notarized, the signer or the signer’s representative— not the Notary — must bring or send, usually, the original notarized document to the agency. The agency will then affix the apostille and return the document to the signer, who pays a processing fee. Asking a Notary for an apostille is futile — the Notary does not possess apostille certificates and is not authorized to issue one. An apostille takes time to obtain. If the apostille is not picked up in person by the signer or the signer’s representative, the process must be done through the mail or an overnight delivery service. Depending on the agency, obtaining an apostille through the mail can take a week or two. An apostille does not give any special authority to the bearer of the document. As mentioned earlier, the apostille only will confirm the authority of a particular Notary who affixed a signature and seal on a particular notarized document. Contrary to the supposition of some, an apostille is not a power of attorney, nor does it give a document’s bearer or signer any special privileges or right to sign documents on someone else’s behalf.
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