My wife and I did some shopping on the Jersey side of the Hudson many months later and I was shocked to find smoke still rising above Lower Manhattan. I knew then that I had made the right decision not to go earlier…….it was just too much for me!

Now that some time has passed, and re-construction is in it’s early phase…..this article is my small contribution the the healing process.

Although I was born in Brooklyn, I left there as a very young child.

two-reasons-why-oil-prices-have-been-so-high-lately

Two Reasons Why Oil Prices Have Been so High Lately

Writen by Nicholas Fullerton

From the 1970’s until 2004 the world has seen oil prices fluctuating but remaining under the $50 per barrel price level. However during 2004 especially in the fourth quarter we saw oil prices at record levels, seriously weakening the US dollar. Since then there seems to have been an increasing amount of reasons to sustain prices at such a high level.

The first main reason is due to the war in Iraq, because Iraq is a large oil-producing nation, the war has had a great affect on the barrel price. The main driving force is the so called ’security premium’ that has been applied to production. Insurgents in Iraq are well aware of how much disruption they can cause by targeting oil supplies. Indeed many insurgents in Iraq have targeted pipelines and oil reserves reducing these oil supplies. Basic supply and demand dictates that (ceterus paribus) if supply is reduced and demands remains the same, prices will rise. This is exactly the situation we have seen. Such activity has meant occupying forces have had to protect pipelines and refineries as much as is possible, however due to how vast the length of some supply lines, this protection can prove a very difficult task. We saw a similar spike in oil prices when the first fighting broke out in the Iran-Iraq war in the early 1980’s and when Iraq invaded Kuwait in the early 1990’s. Heightening tension in Iran is not helping oil prices at the moment; as Iran is the fourth biggest global producer.

The recent wave of hurricanes to hit America; a large oil producer and a massive oil consumer, have served to compound rising prices. Indeed August 2005 saw highs of above $70 per barrel. Hurricane Katrina affected America badly, however hurricane Rita which followed, had a particular affect as output was seriously reduced because of the geographical location of the storm, being close to key US oil refineries. Again, the supply and demand principle referred to above comes into play. Then tropical storm Wilma raised fears as she too headed towards the Gulf of Mexico. The prospect of these storms wiping out the key natural resource or at best crippling production capacity forced the price per barrel of oil upwards.

Two key points are worthy to note in both cases mentioned above. Firstly the anticipation of an event is priced into markets and causes reaction before the event has occurred, often markets expect things to be worse than they actually are, bringing uncertainty which can be seen unwinding after an event has taken place. Secondly, despite stabilising attempts by bodies such as OPEC, which can lessen effects, supply and demand define the market place and are the deciding forces.

With the situation in Iraq getting no more stable than it was twelve months ago and the unpredictability of weather patterns the future for oil prices seems uncertain, and we all know the markets do not like uncertainty.

pareto-chart-you-say

Pareto Chart You Say?

Writen by James Louis

One of your department heads looks at you and asks “Ishiwhat?” “You know,” you reply, “a fishbone diagram.” Still blank stares. “Cause and effect?” you say as you scribble out a trout carcass on your white board. Still nothing. You’re starting to think the elevator doesn’t go all the way to the top. You’ve got your work cut out for you. So you decide to punt. “Ok, let’s just start with the Pareto charts,” you concede. “Sir, what is a potato chart?” asks another supervisor. “Let’s take a five minute stretch break and then meet back in here so that I can welcome you to the world of Pareto charts.

A Pareto chart looks similar to a bar chart. It has columns and it also has a line graph. Generally number of occurrences (frequency) is listed on the left side and percentage on the right. This type of chart is used to graphically summarize and display the relative importance of the differences between groups of data. For example, perhaps you have determined, or at least speculate that your widgets are being rejected due to - improper fittings, defective sorting machine, too large or too small, or other. If you look at the reports or studies and gather data on each of these reasons for failure, you can then plug the numbers into a chart. You may have assumed the reason for rejection was because the widgets were too large to fit through the tunnel. However your numbers may actually show (the data will validate) that indeed there was nothing wrong with the size of the widget, but rather the sorter was bent, thereby causing the good pieces to bounce into the reject bin.

Typically you isolate five categories to measure. A Pareto chart can be constructed by separating the data into categories. Let’s look at another example. If your business was investigating the delay associated with processing mortgage applications, you could group the data into the following categories: No signature, address not valid, illegible handwriting, existing customer and other.

The left-side vertical axis of the Pareto chart is labeled Frequency (the number of counts for each category), the right-side vertical axis of the Pareto chart is the cumulative percentage, and the horizontal axis of the Pareto chart is labeled with the group names (categories) of your response variables. Are you getting the idea? Your bottom row will be labeled: No signature, address not valid, illegible handwriting, existing customer and other. Each title will have a corresponding column associated with it.

Next determine the number of data points that reside within each group and construct the Pareto chart in a spreadsheet program; Excel works very well for these types of charts. The difference between a Pareto and a typical bar chart is that the Pareto chart is ordered in descending occurrence importance.

Once you have your Pareto constructed and you can visually see what the data is telling you, and you will be able to answer a few questions. You will be able to determine the largest issues facing your team, department or business; you will be able to see what 20% of sources are causing 80% of the problems; and lastly you will know where you should focus your efforts to achieve the greatest improvements.

No more guess work. You won’t be needlessly wasting more time and money trying to fix problems that weren’t broken. Call a staff meeting and get to work on your potato, er a Pareto Charts!

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Why the Minority are Rich

Writen by Yigit Djevdet

Scientific Explanation of Wealth
Wealth is a very contentious subject because almost everyone has a view on it. It is an ancient question which boasts answers in almost every corner of knowledge and experience. There is the scientific explanation, the spiritual explanation, the economic explanation, the psychological explanation and the plain old weird explanation. In this article, I’m going for the scientific explanation.

This pays no attention to who we actually are when we start out in life. It simply says that there is only a finite amount of resources in the world and the capitalist system of wealth creation functions as a hierarchy resembling a pyramid. The lower levels house the majority of people who toil day and night to support the minority levels above them.

The Pyramid Model
Consider a pyramid at the top of which sits the worlds richest man. Below him the next 100 and below them the next 400. Using a criterion of 100(n x n), where n represents the next level, we find that the people at the very bottom, some 32.5 million of them, are 570 levels below the top. If we now add the people at each level we come to 6.1 billion which is approximately the population of the world. So you see, if the pyramid is to exist we MUST have people at different levels of wealth.

Clearly it is possible to rise through the levels, as well as drop to ones below. We are all capable of going down because it is very easy. Just squander all your money, make a bad investment, give it away etc. and before you know it you are at ground level. The trick is to go up. So we inevitably ask the obvious question.

How do we go up
It’s almost like a console game. Rising through the levels and reaching some eventual goal. I suppose if we must continue the analogy, the difficulty level we set ourselves has to be the different methods open to us and which of these we select to use. But that is for another article.

As it turns out it is perfectly possible to receive a helping hand from those above you as well as a friendly push from those around you. A combination of both will make your job easier. Examples of getting a helping hand from above are people like relatives who will lend you capital without the urgency of paying them back or even a free handout. Perhaps some kind of inheritance will help. If none of this is open to you, your job is somewhat more difficult. You need to rely on those around you who are at the same level as you and they cannot afford to give you anything substantial. So you have to create something and sell it to them as well as those above you. If you are successful, your bank balance goes up and so do you. I’ve deliberately left out “bank borrowing” because I believe one should avoid this method of raising capital simply because the chances are that the loan will require to be paid back before you have made enough money to pay it back.

Just thinking about it makes it obvious that if you want to go up in this world and your relatives cannot help you, not many people know you, and there is no incentive for anyone from above you to help either, you have next to no chance of ever rising above the level that you find yourself. Options like gambling and lotteries are the only possibilities left but the odds simply make these things not even worth mentioning.

The key to it is publicity. You need to do or create something, within the law, that will touch large numbers of people. It really does not matter what it is. Even if it is something as simple as helping people fill a glass of water, it can create this publicity for you or for your product. In the case of fortune through fame, you yourself are the product. I’ll leave you to ponder this.

are-you-looking-for-a-financial-planner

Are you Looking for a Financial Planner?

Writen by Martin Lukac

We all need a little advise every once in a while. Sometimes I find that I need someone to bounce ideas off of. When it comes to money, many of us are looking for confirmation that we are on the right track.

Others of us can’t even get in the general area of the track!

Whether you are financially wise or a little uneducated, a financial planner can be a great advantage. Why do people turn to financial planners? They may simply need advice for a specific situation, or even continuous advice over a long period of time. Others have no interest in learning the ins and outs of investing, how to select individual stocks or how to choose insurance policies. Others have very little time to spend taking care of their finances. Anyone having constant trouble meeting financial goals should consider seeking a financial planner.

The financial planner will help you assess where you are and how to get where you want to go. He or she will see where you are on the map and tell you which turns to take to get to the treasure.

Good planners look at the big picture. They don’t just look at right now and what is spent each day, but they take into account investing, taxes, insurance issues and general money management.

The key is to find a qualified financial planner that you can look up to. You want someone who is excited about their work. They have a true passion to help you.

You can find planners in many places, from brokerage firms to your local bank. Many will help you, but will charge a fee. Make sure that you know what the fee will be in advance of your first session.

Take the time and interview several different planners. Look that they are certified and have a good education backing their advice. One of the best places to find advisors is in your friends and co-workers.

Your first interview with the planner should be free. Take a list of questions you may have. You should be comfortable, listened-to and smarter when you leave. You need to make sure that the advisor’s philosphy matches your family’s style.

Don’t forget to ask how the planner charges. You should be comfortable with the method used. It is recommended that you don’t choose someone who could push you to a certain stock just to get a commission. You should try to look for a fee-only advisor, if possible.

Make sure that you do a thorough check before you give any personal information. Ask to see the planner’s state and federal licenses. If they are a stockbroker, they should be able to show you a Form ADV and CRD records.

The fees charged will vary. Most planners charge a median fee of $100 per hour. Some charge $700 for a complete financial plan, or $300 for a retirement plan. Again, be sure to discuss charging before disclosing any information. You want to be sure that you can completely trust someone before handing over your financial details.

discover-money-saving-techniques-you-can-use-today

Discover Money Saving Techniques You Can Use Today

Writen by Chris Huff

Here are the six easiest ways for saving money every day of your life. No, you won’t be required to rob a bank or steal some gas. You just have to commit to these six simple ways. The trick with saving money is changing your buying habits. These six steps show you the new habits you must adopt to save money each day.

1. This might sound crazy, but DON’T CARRY CASH. If I gave you a five dollar bill, I guarantee you’ll have it spent in a day. Why? You spend because you have the money with you. You might spend it on coffee or a snack or something not food related at all such as a magazine. However, if you don’t have the cash, you’ll stop those small-item impulse purchases.

2. DON’T BUY THAT TODAY! I agree everybody should have a super deluxe sparkly whatever. The question you need to ask yourself is DO -I- NEED THAT? This isn’t a question that gets answered in the shopping aisle. It gets answered in the next day or two. Guess what, most people find the next day that don’t need the item and are glad they didn’t buy it. You’ve just saved money by not buying something you had convinced yourself you needed!

3. BORROW RATHER THAN BUY. This goes for opting for the public library over the movie rental store. Borrow a step ladder to clean your gutters if you only use it once a year. Everybody has extra stuff they aren’t using it. Borrow from your friends and neighbors. Look how many items you’ve bought and only used once! Don’t waste you money like that. Borrow it!

4. DON’T PLAY THE LOTTERY. You’re thinking a dollar here and a dollar there isn’t a big deal. Be honest, do you ever buy just one ticket? Buying three a week is $156 a year. Scratch-off cards can run as high as $10 to $20 a piece. The odds aren’t in your favor for winning the lottery or the scratch-offs. Save that money for other things.

5. Don’t hate me for suggesting this…CHANGE YOUR HOBBY. Growing up, my main hobby was fishing. The cost of $15 per year for a license and money for occasional new fishing lures was easily under $75 dollars a year. Later in life, I started playing golf. I could blow $75 in one weekend playing golf. Calculate that out to 20 games a year and that’s $1500. Look at your hobbies and see if you need to find something more inline with your income.

6. DON’T SPEND WHAT YOU SAVE! I can easily tell myself that because I saved $10 on a shirt, I can spend that money on something else. WRONG! Saving money means s-a-v-i-n-g m-o-n-e-y. If I save $10 on a shirt, I now have more money for paying off my credit card debt, more money for groceries, and more money for paying my utility bills.

Every item in this list will help you save money. The more you can cut your spending, the more money you can save for retirement, pay down on debt, and save for a vacation.

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Divorce and Credit

Writen by Rachel Nava

When you are going thru a divorce, you are going to want to pay close attention to your credit. One thing that most men and women figure is that they are not going to have any problems with their credit once they have gone thru a divorce. There may be a few of the men and women out there that are not going to have any kind of problems.

One of the first things that you are going to want to do when you decide that you are going to go through a divorce is to try to obtain all of your credit cards in your own name with out your spouses name on them. That will help you establish your own credit history for future reference. Another good thing about having credit cards in your own name you are not going to have to worry about loosing them throughout the divorce proceedings. Plus it may be a way for you to have a little help in paying all the court cost that go alone with the process of a divorce.

One problem that you may run into is that if all of the assets are a joint account and your spouse is supposed to pay for them. However, your spouse is often times unable to pay for all of the accounts because of a difference in their pay or because they find that they have more bills to pay once, they are completed with the divorce. You may even notice that it is a lot harder to live on one income compared to when there was two incomes coming in the house.

You could notice that it is going to be harder for you to obtain credit once you are on your own. It could be something as small as obtain a credit card for any emergencies that may arise. If you are in need of receiving a credit card, and it seem like more and more credit card companies are turning you down because of your credit history or because of your income status. You may be able to explain to them why you have a lapse in your credit report because of the divorce that you have gone thru and let them know that you are looking to start to rebuild your credit history. There may be a few credit card companies out there that are going to be will to give you a chance on rebuilding your credit with a low credit line credit card.

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Step down the Ladder of Debt with a Secured Debt Consolidation Loan

Writen by Arsha Hanif

A Debt consolidation loan is a loan used to reimburse several other debts. It is a low cost loan secured on collateral as your home, your vehicle or any expensive asset. DEBT CONSOLIDATION LOANS consolidate all debts incurred through personal loans, overdrafts, or any number of unpaid bills. Debt consolidation gives you a fresh start, making it possible for you to consolidate all of your loans into one, providing you with one easy payment to manage, and that too at a lower rate of interest.

It follows the old proverb that an iron is used to cut iron. The payments, which we build up, are normally the small credits that we take for our personal needs and are not able to pay for them and thus they mount up and finally we avail another personal loan in form of debt consolidation to cut down the payments of earlier loans. Secured debt consolidation loans are easy to indulge in. Secured debt consolidation is the most prudent way of getting rid of multiple creditors, who may be making your life hell with their threatening phone calls. With secured debt consolidation loan, you can enjoy the following benefits:

Low rate of interest: Due to the assurance in the form of collateral attached, the lender keeps the rate of interest low and you, as a borrower have the satisfaction that you will have to pay less.

Manageable loan repayments: Due to low interest rates and long tenure you tend to pay small payments every month and thus they are quite easy to pay and help you move on to a debt free future.

Long tenure of loan: Since some collateral is attached to the loan, the creditor gives out the loan for a long term and thus makes it possible for you to return the payment at your ease with time in hand. With so many online loan options available, it is quite effortless to get yourself a stable future with no debts.

life-insurance-quotes-which-life-insurance-option-is-the-best-one-for-you

Life Insurance Quotes - Which Life Insurance Option is the Best One For You?

Writen by Claire Bowes

Life insurance is becoming more and more popular with many people now realizing the importance and the benefits of a good life insurance policy. There are two main types of popular life insurance, both of which offer a range of invaluable benefits to consumers.

Level Term Life Insurance

Level term life insurance is the most popular type of life insurance policy with consumers, and this may be because it is also the cheapest form of insurance. With level term insurance, you and your family can enjoy peace of mind at an affordable price. If you die during the term of this insurance policy, your family will receive a lump sum payment, which can help to cover a number of costs as well as provide some degree of financial security at what will inevitably be a difficult time. The money could assist with costs such as:

getting-some-perspective-on-your-avoidance-habits

Getting Some Perspective On Your Avoidance Habits

Writen by Rick Hoogendoorn

It is quite natural for human beings to avoid discomfort. Our brains are wired that way. Without thinking about it, we’ll rush in from the cold. Of course! Without really thinking about it, we’ll steer clear of somebody we don’t particularly like. Of course! Without thinking about it, we’ll bypass the ________ section of the buffet table. Of course! It’s the SPINACH section!

And without really thinking much about it, we’ll often avoid entire aspects of our financial lives. Over the years I have met many people who clearly want financial freedom but, at the same time, don’t want anything to do with money! And so it becomes important for them to see how it was they have been avoiding money in their lives. At least it becomes important if they really want ‘financial freedom’.

Do you avoid thinking or dealing with any of the following things related to money? (If you stop reading this article now, that might be a clue!)

• your financial situation generally (where you’re at.)

• your investments

• your cash flow (month to month money management)

• your debt

• your estate planning (insurance situation)

• your tax situation

• your spending

• your financial situation as it pertains to your spouse

If you’re avoiding any of these areas, it’s probably because the thought of them makes you uncomfortable in some way. Unfortunately, avoidance doesn’t make it ‘go away’. In fact, avoidance often makes things much worse, so all you’re doing is placing a larger burden on ‘your future self’.

Scientists, somewhere, ought to be working on a way to place future burdens on ’some other person’ rather than our future selves. (No word on that yet, unfortunately). What we avoid today still tends to pop up later in life. If we aren’t paying attention to our finances, it will show in the future. If we’re racking up debt today, it will come home to roost in the future. If we’re not doing proper estate planning, somebody is going to get it in the nose in the future. These things don’t go away because we’re pre-occupied with our shoe laces.

But what a difference a little attention makes! To be on the other side of the avoided issue, knowing it has been taken care of. Knowing we’re now steadily increasing our net worth instead of going in the hole. Knowing our family is taken care of if we die. Knowing we’ll open a gift of savings in the future, not a gift of debt. Knowing it REALLY wasn’t all that scary once we turned our attention to it and dealt with it face on.

The first step to managing the financial issues we’re avoiding, though, is to know what it is we’re avoiding. The ‘why’ doesn’t matter that much. It’s because it is uncomfortable. Well, so what! That discomfort will be temporary, and on the other side of it is a REAL comfort zone. The REAL comfort zone of knowing things have been dealt with, rather than the FANTASY comfort zone constructed by avoidance and denial.

It is a great feeling to know it is REALLY taken care of.

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