Which is Best? Fixed vs. Adjustable Rate Reverse Mortgages

If you’ve made the decision to stay in your home, but you?re not sure if your savings will allow you to do so, a reverse mortgage could be a potential solution to help you achieve financial stability. But different reverse mortgage types can serve different purposes and as with any mortgage, you must consider which rate option is best suited for you before taking out the loan. Just like any other mortgage, reverse mortgages offer two types of interest rates: fixed rates and adjustable rates. Insured by the Federal Housing Administration (FHA), the most common reverse mortgages in the market [...]

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Why falling inflation matters

A drop in inflation eases the squeeze on consumer real incomes by reducing the gap between price increases and wage increases

Inflation is yesterday’s problem. That was the clear message from the latest figures from the Office for National Statistics showing a bigger-than-expected drop in price pressures last month. Cheaper petrol and a seasonal fall in air fares meant the annual increase in the cost of living came down from 2.8% to 2.4% in April.

Belatedly, this starts to bring the UK into line with a more marked disinflationary trend in the rest of Europe. The depreciation of sterling since the start of the financial crisis has made Britain more vulnerable to imported price increases, but inflation as measured by the consumer prices index has now fallen by more than half since its peak. What’s more, the good news is likely to continue. While there may be a short-term pick up in inflation as last year’s falls in oil prices drop out of the calculations, the weakness of producer prices suggests there is little inflationary pressure in the pipeline.

The better news on inflation matters for two reasons. Firstly, it eases the squeeze on consumer real incomes by reducing the gap between price increases and wage increases. Note, however, that there is still a gap between what individuals are earning and the price of goods and services they are purchasing; it is just that this gap is getting smaller. The TUC published research on Tuesday showing that average salaries are worth £2,234 less than in May 2010 ? a drop of 8.5%.

Unless and until real incomes start to rise, Britain’s economic recovery will remain tepid. That will require a combination of further falls in inflation and a pick-up in wage growth. The former looks highly probable, the latter far less certain.

The second reason to welcome the fall in inflation is that it provides the Bank of England with more scope to ease monetary policy should the need arise. The six members of Threadneedle Street’s monetary policy committee voting against further quantitative easing have advanced three reasons for doing so: they are dubious about the benefits of more electronic money creation; they think the economy is further on the road to recovery than the official data indicates; and they are worried that inflation has remained above its 2% target for more than three years.

Tuesday’s figures will help deal with the last of those concerns, and will make it much easier for Mark Carney to push for further stimulus when he takes over at the Bank in July.


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Clear Your Shopping Cart Abandonment

Imagine you owned a store where half your customers left their purchases on the checkout counter. That, in effect, is happening all too often to online merchants. Potential customers go shopping on their site, like what they see, and put merchandise in the shopping cart. But somewhere during the checkout process, they “abandon” their cart and depart the site, sometimes never to return.

What went wrong? As an online merchant, knowing the answers can make a big difference in how well you convert a customer’s clicks into an actual sale.

Studies have demonstrated that the single biggest cause of cart abandonment is an unexpectedly high transaction cost–typically a high shipping cost–that is only revealed at checkout. A customer believes a transaction is going to be about $75, steps up to the virtual counter, arranges payment, only to learn that the actual total is $100. We shouldn’t be surprised if that shopper “walks off” in a huff. Indeed, shopping cart abandonment is often a sign of deeper troubles for the merchant. It’s not just an indicator of a lost sale, but also of a troubled relationship. If customers have a sense of being baited and switched, their overall confidence in the merchant gets undermined.

The problem is aggravated by the high variability of shipping costs. During a recent online shopping excursion for a stationary bicycle, I found that shipping fees ranged from “free” to $150. That’s a huge difference. And yet in many cases, the total “out-the-door” cost wasn’t apparent until deep in the checkout process.

What can merchants do? First of all, you should keep shipping costs in line with customer expectations. A small, lightweight item like a pair of socks, a garden trowel or camera battery shouldn’t cost $17 to ship. And adding one of these items to an existing purchase shouldn’t cost $17 more. Some merchants have taken the mystery out of checkout by offering free shipping across their product lines. But if you can’t afford that, at least give shoppers an early, clear indication of the actual cost. And while this might sound obvious, the same advice also applies to good news: Tell customers about special discounts, coupons and other incentives up front, not at checkout. The guiding principle: When it comes to payment, online shoppers don’t like surprises.

Security and comparison shopping
Cart abandonment happens for other reasons as well. Sometimes customers are uneasy about handing over their personal information, including credit card numbers, to an unknown merchant. You can remove that concern by offering multiple options for electronic payment, including services that allow payment without disclosing financial information to the merchant.

Some customers don’t click on the purchase button because, at the last minute, they want to assure themselves they are getting the best possible deal. The temptation is understandable. E-commerce has matured since its early days, and customers are the beneficiaries. More sites are competing for their business, and customers can use “shopping engines” to compare price and merchant reputations at a glance. The obvious advice: Keep your prices competitive and your service exemplary so that new customers keep coming back. In looking for the ultimate bargain, some customers depart to seek out discount coupons. If your competition is trumping you with this tactic, perhaps you should follow suit.

Sometimes, the barrier to purchase is not cost, but an unanswered question. “How long do I have for a return?” “Can I see the manual?” “Do you have it in green?” “Can I include a Valentine’s card?” No merchant can anticipate every question, nor will every customer locate every snippet of information on your site. So don’t hide behind your website. Provide a telephone number, an e-mail address, or both–and respond to queries promptly and personally, taking the time to hear the actual question.

Finally, some shoppers abandon their carts simply because they cannot figure out how the checkout process works. If your customers are hunting for the “purchase” button, it’s time for a site redesign–preferably with something simpler.

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The Fear of Taxes Shouldn?t Keep You from Earning More

I get notes pretty regularly from readers who express concern that earning more won’t actually gain them anything. “Why should I earn more than I’m making if Uncle Sam is just going to take it all?” That perception is a complete myth. Yes, you will be paying more in taxes if you make more and,

The post The Fear of Taxes Shouldn’t Keep You from Earning More appeared first on The Simple Dollar.

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Beyoncé Just Gave Birth To A Fully Grown Woman! Listen HERE!

Pregnant or not, there’s no denying Queen Bey is FIERCE!
She just released a perfectly produced studio version of her newest sensational song, Grown Woman!
Well, that’s one way to sidetrack the “is she or isn’t she?” chatter, LOLz!!
Grown Woman has all the ridiculously wonderful range you’d expect in a Beyoncé cut, but it’s spiced up with [...]

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Clear Your Shopping Cart Abandonment

Imagine you owned a store where half your customers left their purchases on the checkout counter. That, in effect, is happening all too often to online merchants. Potential customers go shopping on their site, like what they see, and put merchandise in the shopping cart. But somewhere during the checkout process, they “abandon” their cart and depart the site, sometimes never to return.

What went wrong? As an online merchant, knowing the answers can make a big difference in how well you convert a customer’s clicks into an actual sale.

Studies have demonstrated that the single biggest cause of cart abandonment is an unexpectedly high transaction cost–typically a high shipping cost–that is only revealed at checkout. A customer believes a transaction is going to be about $75, steps up to the virtual counter, arranges payment, only to learn that the actual total is $100. We shouldn’t be surprised if that shopper “walks off” in a huff. Indeed, shopping cart abandonment is often a sign of deeper troubles for the merchant. It’s not just an indicator of a lost sale, but also of a troubled relationship. If customers have a sense of being baited and switched, their overall confidence in the merchant gets undermined.

The problem is aggravated by the high variability of shipping costs. During a recent online shopping excursion for a stationary bicycle, I found that shipping fees ranged from “free” to $150. That’s a huge difference. And yet in many cases, the total “out-the-door” cost wasn’t apparent until deep in the checkout process.

What can merchants do? First of all, you should keep shipping costs in line with customer expectations. A small, lightweight item like a pair of socks, a garden trowel or camera battery shouldn’t cost $17 to ship. And adding one of these items to an existing purchase shouldn’t cost $17 more. Some merchants have taken the mystery out of checkout by offering free shipping across their product lines. But if you can’t afford that, at least give shoppers an early, clear indication of the actual cost. And while this might sound obvious, the same advice also applies to good news: Tell customers about special discounts, coupons and other incentives up front, not at checkout. The guiding principle: When it comes to payment, online shoppers don’t like surprises.

Security and comparison shopping
Cart abandonment happens for other reasons as well. Sometimes customers are uneasy about handing over their personal information, including credit card numbers, to an unknown merchant. You can remove that concern by offering multiple options for electronic payment, including services that allow payment without disclosing financial information to the merchant.

Some customers don’t click on the purchase button because, at the last minute, they want to assure themselves they are getting the best possible deal. The temptation is understandable. E-commerce has matured since its early days, and customers are the beneficiaries. More sites are competing for their business, and customers can use “shopping engines” to compare price and merchant reputations at a glance. The obvious advice: Keep your prices competitive and your service exemplary so that new customers keep coming back. In looking for the ultimate bargain, some customers depart to seek out discount coupons. If your competition is trumping you with this tactic, perhaps you should follow suit.

Sometimes, the barrier to purchase is not cost, but an unanswered question. “How long do I have for a return?” “Can I see the manual?” “Do you have it in green?” “Can I include a Valentine’s card?” No merchant can anticipate every question, nor will every customer locate every snippet of information on your site. So don’t hide behind your website. Provide a telephone number, an e-mail address, or both–and respond to queries promptly and personally, taking the time to hear the actual question.

Finally, some shoppers abandon their carts simply because they cannot figure out how the checkout process works. If your customers are hunting for the “purchase” button, it’s time for a site redesign–preferably with something simpler.

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Two years on: would Arnie still back Scotland’s action on climate change?

In 2009, the Scottish government passed world-leading climate legislation when the Scottish parliament voted for climate change targets of 42% emissions reductions by 2020 and 80% by 2050. For a short time, Scotland made headlines, with praise for the achievement arriving from across the globe. Climate campaigners in Scotland, myself included, were especially pleased when the ?Governator? himself, Arnold Schwarzenegger, then Governor of California gave the Act his thumbs-up, quoted as saying that ?Scotland?s ambitious and comprehensive targets…sends a message to the world that we must act now and we must act swiftly?.

But, three years on, would Arnie be able to say anything positive about climate action by the Scottish government since the Act was passed? Are we as climate campaigners happy to use the same e-postcards in 2011 that we designed then, with pictures of Mr. Universe himself showing off his honed physique and proclaiming ?Scotland?s climate change act has muscle!??

During the Scottish parliamentary debate on the climate change bill, the opposition environment spokesperson at the time, Sarah Boyack MSP, asserted that ?Our challenge is not passing this bill but implementing it? ? a prediction that, as you might expect, has proved accurate. Since the Act was passed, a second SNP government has been voted in with a landslide majority, but decisive action to make the climate targets attainable is yet to be evident. Progress is slow, with the UK Committee on Climate Change recently stating that it was likely that Scotland would miss its climate change targets for 2010.

With only a short time-frame to reach the 42% target, it?s essential that action on climate change is made a priority in the upcoming Scottish budget for 2011-12, to be considered in the Scottish parliament over the next few months. The Scottish Government has recently published an action plan to reach the 2020 climate change targets ? at the very least this needs to be fully funded in the budget if we are to have any chance of reaching our targets in less than 10 years? time.

As a Scottish citizen and a climate activist, I?m very proud that a small country such as ours is leading the industrialised world with our ambitious climate legislation ? and that other small countries such as Finland, Ireland and Pays Basque are following our lead. As an industrialised country, that has derived huge economic benefits from its emissions of greenhouse gases and its exports of fossil fuels, reaching our 2020 targets is also about paying out climate debt. So we must be able to follow through and reach the 2020 target through action in Scotland.

That?s why we are working with Stop Climate Chaos Scotland during September on a letter-writing campaign to make sure that climate action is a priority in the forthcoming budget. We are also using this opportunity to call for a Scottish climate adaptation fund ? over and above the Scottish Aid budget – to help countries more vulnerable than ours to adapt to the impacts they are feeling now. This was something that the SNP included a commitment to in their last election manifesto and, as they were voted in for a second term with a large majority, we hope to see some positive steps towards this fund in the near future.

If you live in Scotland, please support our campaign by writing a personal letter to your MSPs during September.

Find out more by reading the webpage and briefing paper

 

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Small Dividend Stocks Deliver Hefty Returns

NEW YORK (TheStreet) — Searching for income, investors have been pouring into exchange-traded funds that hold big dividend-paying stocks. A favorite choice is Vanguard High Dividend Yield ETF , which yields 2.9%. But you can get more income with two ETFs that invest in smaller stocks: WisdomTree SmallCap Dividend , which yields 3.7%, and WisdomTree MidCap Dividend , with a yield of 3.2%.

Besides solid dividends, the WisdomTree funds have also delivered strong total returns. During the past five years, the small-cap fund returned 8.9% annually, compared to 5.5% for the S&P 500 and 7.7% for iShares Russell 2000 ETF. WisdomTree Midcap returned 9.4% annually, compared to 7.3% for iShares Russell Midcap .

Not many funds focus on small-cap dividend stocks. When they seek income, investors prefer funds that hold familiar mega-cap dividend payers, such as Exxon Mobil and Johnson & Johnson . Small-cap companies are often seen as more volatile and less likely to deliver stable income. But even though small stocks can be volatile, they have a long track record for generating compelling results. …

Click to view a price quote on DES.

Click to research the Financial Services industry.

    



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Russian oligarchs foot most of 2014 Sochi Olympics

FILE - In this Thursday, Oct. 14, 2010 file photo, then, Russian Prime Minister Vladimir Putin, second right, Formula One chief Bernie Ecclestone, second left, and Oleg Deripaska, toast after a signing ceremony in the Black Sea resort of Sochi, southern Russia. Oleg Deripaska's Basic Element, insists its projects were all designed to be profitable. The company is building an Olympic village and a seaport and has just finished revamping the Sochi airport, for a combined cost of $1.4 billion. (AP Photo/Mikhail Metzel, File)SOCHI, Russia (AP) ? The mountains of Sochi are now home to Potanin's slope, Gazprom's gondola lift and Sberbank's ski jump. The nicknames used by locals and an army of construction workers leave no doubt about who is paying for the 2014 Winter Games: Russia's business powerhouses.


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