All about Credit Cards, still Make Millions

During the last month I have been submerged in celebrations, so days of glory are now gone, a broken door another party, another feast of pleassure, then go back to normal on the objective of the Million waiting for you, waking up another day to celebrate the father's day, back to life once again, another chance, however and when I felt stronger I tested my luck trainning again trying kick boxing and there it was the crude reality a broken rib, nothing to do but wait... and here Iam writting again and now the "credit crunch"

The objective of this post is to pay and help you pay all your credit cards so you and me could have a fresh start for 2012 as I previously stated cash is king, so the main point is to use your credit card only and only then when you really need to...

I have around 7 credit cards and the more I was offered credit, the more I gladly took, now it is common sense that if you have a daily job and a business here and there, then you can easily afford to pay the monthly and yearly fees, so against the general idea of cancelling your credit cards I would say keep them and use them only when you need them, If you have been reading this blog you could have a certain appreciation to use the credit for Investing ...paying back the credit then cash the gains and start all over again...but to get there first we have to undestand how credit cards work,

Have you ever stood behind someone in line at the store and watched him shuffle through a stack of what must be at least 10 credit cards? Consumers with this many cards are still in the minority, but experts say that the majority of U.S. citizens have at least one credit card -- and usually two or three. It's true that credit cards have become important sources of identification If you want to rent a car, for example, you really need a major credit card. And when used wisely, a credit card can provide convenience and allow you to make purchases with nearly a month to pay for them before finance charges kick in.

That sounds good, in theory. But in reality, many consumers are unable to take advantage of these benefits because they carry a balance on their credit card from month to month, paying finance charges that can go up to a whopping 23 percent. Many find it hard to resist using the old "plastic" for impulse purchases or buying things they really can't afford. The numbers are striking: In 2011, American consumers charged about $2.43 trillion on their general-purpose credit cards.

Let's start at the beginning. A credit card is a thin plastic card, usually 3-1/8 inches by 2-1/8 inches in size, that contains identification information such as a signature or picture, and authorizes the person named on it to charge purchases or services to his account -- charges for which he will be billed periodically. Today, the information on the card is read by Automated Teller Machines(ATMs), store readers, banks and Internet computers.

Here are what some of the numbers stand for:

The first digit in your credit-card number signifies the system:

• 3 - travel/entertainment cards (such as American Express and Diners Club)
• 4 - Visa
• 5 - MasterCard
• 6 - Discover Card

The structure of the card number varies by system. For example, American Express card numbers start with 37; Carte Blanche and Diners Club with 38.

• American Express - Digits three and four are type and currency, digits five through 11 are the account number, digits 12 through 14 are the card number within the account and digit 15 is a check digit.
• Visa - Digits two through six are the bank number, digits seven through 12 or seven through 15 are the account number and digit 13 or 16 is a check digit.
• MasterCard - Digits two and three, two through four, two through five or two through six are the bank number (depending on whether digit two is a 1, 2, 3 or other). The digits after the bank number up through digit 15 are the account number, and digit 16 is a check digit.

Now If you went too deep on the use of the plastic here are some ways to Pay off your debt...remember 2012= "0" bebt.

You can throw the reminders in the Cuisinart or chuck them into a garbage can, but that won't make the debt go away. Debt hovers like a carrion bird over a dying beast, with annual rates of 20% or more compounded monthly, month in and month out. You can't wish it away. But you can pay it down with determination, and the good graces of a few wealthy relatives here are some ways to get out of debt:

1. Pay more than the minimum
First, break the habit of paying only the minimum required each month. Paying the minimum -- usually 2% to 3% of the outstanding balance -- only prolongs the agony. Besides, it's precisely what the banks want you to do. The longer you take to repay the charges, the more interest they make, and the less cash you have in your pocket. Don't play their selfish game.

Here is a good example and demonstration. This is true to the fullest. In case anyone wants to see the math it goes like this...

debt 10,000 - minimum payment 142 = 9,858

9,858 * .17 * 1 / 12 = 140

17% being the interest rate

9,858 + 140 = 9,998

Real amount paid to credit card company = 10,000 - 9,998 = €2.00

Instead, bite the bullet and pay as much as you can each month. If your minimum payment is €100, double that to €200 or more. Examine your normal expenses -- you can find the money. Skip eating out at lunch, and bring it from home instead. Eliminate desserts. Give up happy hour. We all have "luxuries," and you know what yours are.

Make a few sacrifices, and you will find the extra money needed to increase your debt repayments dramatically. Those increased payments will save you hundreds, if not thousands, in interest payments. Plus, you will get out of the hole you've dug for yourself much more quickly. Is it fun? No. But it sure beats living a hand-to-mouth existence, fearing bills each month.

2. Snowball your debt payments
Take a long, hard look at all your credit cards. Pay particular attention to the one with the lowest interest rate. Have you reached the maximum limit on that card? If not, consider transferring a higher-interest bill to that one. Many credit cards permit this, and it's positively Foolish to trade an 18% debt for one at 12%.

If your entire balance is too large to fit on one low-interest card, pay at least the minimum amounts due on all of your cards except one. Funnel the majority of your debt repayments into that card, and pay it off as quickly as possible. When the balance on that card reaches zero, move on to the next with the same aggressive repayment plan.

Lather, rinse, and repeat. This method of repayment is aptly called "snowballing." As your debts decrease, the amount of money you have to attack them increases. Your payments snowball until all of your debt is pummeled. Pretty neat, eh?

Another way to transfer higher-interest debt to a lower-interest card is to take advantage of the promotional offers many banks use to entice you to their line of credit. You've seen the come-ons. "Transfer all your credit card balances to us, and pay just 5.9% until next January." It could be worth it. Moving to 5.9% from 18% interest could mean substantial dollars to you. And the money saved in interest could then be applied toward the principal each month, thus reducing your outstanding debt balance even further.

Take care, though, before you act. Examine the offer closely. Look for the hooks. Will the interest rate after the introductory period be higher than you're paying now? If so, you may have to switch again at that time. That, in turn, could give rise to another surprise. Banks have caught onto the charge card hoppers who switch from card to card to take advantage of the low introductory rates. Many of these offers now stipulate that if you transfer balances from the new card within a 12-month period, the normal interest rate will be applied to all outstanding balances retroactively. That proviso could be a bitter pill to swallow for someone short on cash, and it certainly doesn't help the debt repayment schedule. Read the fine print.

3. Cash out your savings account
Let's say you have 50,000€ on a savings account but 10,00€ on debt then the smartest thing to do is to cash out your savings and investments and use the proceeds toward debt repayment. Yeah, no one wants to do that. But sometimes it's just Foolish not to do so. Even when debt interest is at 12%, your investments would have to pay more than 20% before taxes to equal that outflow of euros. We doubt the euros in your savings account are earning anywhere near that rate of interest. Pay off the debt, and it's the same as getting that 20% return without any risk on your part. The higher the interest rate on your debt, the more attractive repayment versus investment becomes.

4. Finagle family and friends
This is the best strategy but I can't affort to use it not until 100 years from now...perhaps your family or friends could float you a loan. Who else knows, trusts, and loves you like they do? Unless you're really the black sheep of the flock, chances are you'll get a very favorable interest rate. They may even tolerate a late payment or two. But if you want to maintain the relationship, it's best to keep things on the straight and narrow by using a written agreement. You should clearly establish the interest and repayment schedule in writing to avoid misunderstandings and hard feelings. And it goes without saying that you must be scrupulous about adhering to that schedule. Otherwise, you can forget the family reunions and birthday presents.

5. Get a home equity loan
Do you own your own home and have equity that's accumulated through the years as you've paid off the mortgage? If so, now's the time to consider a (HEL) line of credit for the maximum amount possible.

A HEL gives you two ways to save. First, by using the loan proceeds to pay down your debt, you trade something like an 18% loan for a 6%-7% loan. Second, if you itemize deductions on your tax returns, HEL interest is a deductive item under most circumstances. In a 25% marginal tax bracket, the 6% loan really has an effective rate of 4.5%, and that's probably the cheapest interest rate you'll see on personal indebtedness.

The danger here is falling into a common trap. Many get an HEL, pay off existing debt, and then ring up the charges on the credit cards all over again. Now they have the HEL to repay on top of the credit cards. The hole just got much deeper. you can use the HEL to pay off the credit cards, and then keep them paid off until the HEL is repaid.

6. Renegotiate terms with your banks and creditors
OK, you've done all you can. Savings are gone; relatives have been tapped out; you don't have a home to borrow against. You feel like you're against that proverbial wall. The money just isn't there. Is bankruptcy the only way out? No way. Try pulling an ace out of your sleeve prior to taking that step. What ace? The threat of bankruptcy, of course.

Let your creditors know your situation. Tell them that if you are unable to renegotiate terms, you'll have no other recourse but to declare bankruptcy. Ask for a new and lower repayment schedule; request a lower interest rate; and appeal to their desire to receive payment. Faced with the prospect that you may resort to such a drastic step, creditors will do what they can to protect themselves against a total loss.

Indeed, many will negotiate away the farm before they'll write off your debt. As I love to say, "everything is negotiable" Therefore, what do you have to lose, except time? It's worth a try. And if you don't wish to do this yourself, organizations exist that can do it for you.

7. As a last resort, file bankruptcy
What if you decide you can't pay down your debt using any of the methods listed above? What should you do? The absolute last resort is bankruptcy. Within Fooldom, I firmly believe everyone has a moral obligation to repay their debts to the utmost of their ability. There are times, though, when repayment may be impossible. In those cases, bankruptcy may be the only available course of action. Nevertheless, be aware of the significant drawbacks.

Your credit record will contain this information for 10 years, thus ensuring you will have a tough time obtaining credit you can afford during that period. Additionally, as odd as it seems, it costs money to file for bankruptcy. Attorney and court filing fees cost in the hundreds of dollars, and they must be paid to obtain the relief sought. Finally, bankruptcy laws have gotten a lot tougher in recent years, so you may not qualify for complete relief.

There are two types of personal bankruptcy relief: Is straight bankruptcy that allows the discharge of almost all debts. Those that aren't discharged are alimony, child support, taxes, loans obtained through filing false financial statements, loans not listed in the bankruptcy petition, legal judgments against the petitioner, and student loans.

While you are relieved of the responsibility of repaying most creditors, you may have to surrender much of your property to help satisfy the debt. However, different countries have different laws that grant you exemptions on certain types of property, such as a certain amount of equity in your home, a low-value vehicle, small amounts of jewelry and other personal property, and tools you use in your trade or business. These exemptions usually aren't huge, but they do mean you won't have to start over with absolutely nothing.

You can keep your property but surrender control of your finances to the bankruptcy court. The court approves a repayment plan based on your financial resources that provides for repayment of all or part of your debt over a three-to-five-year period. During that time, your creditors are not allowed to harass you for repayment. You also incur no interest charges on the indebtedness during the repayment period. When all conditions of the court-approved plan have been fulfilled, you emerge debt-free from the bankruptcy.

Now here is the trick make the credit cards work for you and understand the numbers involved and there will be great gratifications.

I just got an e mail from one of my business partners and it seems that I got paid to plubish two articles a month even when I love what I do... I totally forgot this agreement so I will write as much as possible until December. So I can start a positive healthy 2012 in search of the Million Euros in less than 5 years...let's keep the journey toguether!

Here is some inside info I got from the City Boy,

Cash is king if you know how to use it!

After having a two week holiday all around the Nordic countries, I had the time and pleasure to enjoy many of the fruitful conversations with my beloved aunt, she knows my purpose, One Million Euros in less than five years...the Holliday was awesome, in fact I haven't been able to sit and recapitulate until now I have been busy with the pleassures of life.

During all this time I was totally surprised that Hill Harper a New York Times Bestselling author, with titles including The Conversation, Letters to a Young Sister, and Letters to a Young Brother, has contacted me. Hill is a graduate of Harvard and Brown Universities, and when he's not writing, he stars on CSI: NY. Hill has contacted me to write a review of his newest book The Wealth Cure which looks at wealth as a reward of a gratifying life full of rich experiences, instead of in the monetary sense of it. While he does share ways to create financial stability, he reflects upon the idea that there is much more to personal wealth than money. The Wealth Cure came out August 23, 2011and it's going to be my pleasure to review his book in my blog soon.

Also Thomas Herold, Wealth Educator and Financial Author has contacted for the same purpose a review on his new book Building Wealth with Silver His new book reveals the most crucial facts on what’s happening with the world economy. How we got into this mess and what’s likely to happen in the coming years. It’s an essential guide that helps people protect their money from inflation. It also gives profound insider tips on how to make a fortune by investing in silver now.

But on the Stock Market arena I have to say it straight forward, right now it is advisable to cash out immediately I know I shouldn't be saying this because I love the game but I just did, I sold almost all my positions in the Stock Market because I just got the idea that we as humans we respond to all the social interactions of the external influences meaning that now summer is gone and difficult times are approaching but we have to remember the fact that when there are losers there are also winners so better be on the right side of the spectrum.

Investors seem finally to be taking the full measure of the panoply of risks and the exceptional uncertainty they face. What are their options in the current context?

Gold, perhaps the oldest refuge of nervous money, has attracted enormous interest from investors who have been rattled by the financial crisis. As of Thursday, gold’s annualized real return over the past five years is a stunning 18.3%. That rise has pushed gold into bubble territory, diminishing its claim to safe haven status; putting money into a bubble is hardly a prescription for capital preservation.

The yellow metal is even overpriced against our second candidate, the Swiss franc—despite the fact that the franc itself also looks overheated, as Buttonwood remarked last month. The Swiss National Bank, which is not prone to hyperbole, called its currency “massively overvalued” and promptly cut the target range for its key policy rate to 0.00-0.25%. The franc has appreciated by close to 40% against the euro since January 2010.

Finally, Treasuries are a reflexive choice in a crisis. Sure enough, the 10-year yield fell by roughly 20 basis points (yield is inversely related to bond prices), but locking in a 2.40% nominal yield is more akin to surrender than a genuine defensive strategy. Naturally, you can sell the bonds before they mature i just did, but that leaves you exposed to price risk.

In the flight to safety, however, investors are overlooking one asset class: Cash. Not all investors, mind you. The Quantum Endowment Fund—George Soros’s vehicle—is reportedly 75% in cash. At FPA Capital, Robert Rodriguez, a respected value investor and one of the few people to anticipate the credit crisis, has over 30% of his flagship fund in cash. And in an interview published on July 23rd, the head of PIMCO, Mohamed El-Erian told Barron’s:

And don't underestimate the value of cash; in a volatile world both good and bad assets are impacted, and the higher the probability of being able to buy good assets at really cheap levels. You don't want to be fully invested today.

In my own Multi-Asset Fund, JC'S holdings which I manage and control, I have 60% cash, which is very significant planning to make an agreemen on diversifying some of the Investments.

As Mr El-Erian suggests, cash has a characteristic that is often overlooked: its optional. Having cash on hand in a volatile market gives you the flexibility to purchase assets in the future at discounted prices. And that is exactly my next strategy purchase assets at discounted prices, It’s a mistake to feel compelled to be fully invested in an environment in which there are few attractive opportunities. Or as hedge-fund manager Seth Klarman puts it: "Why should the immediate opportunity set be the only one considered, when tomorrows may well be considerably more fertile than todays?" During periods of significant dislocation, when other investors are forced to liquidate positions, cash’s embedded option becomes particularly valuable.

The best measures of long-term value—the q ratio and the cyclically-adjusted price-to-earnings ratio—both suggest stocks are overvalued, even after the recent price declines. What if those discounted prices never materialise? It’s true that markets can remain expensive for long periods before value re-asserts itself, but the numerous risks in today’s environment are potential catalysts for that process to occur. When it does, prices typically overshoot on the downside along the way, at which point buying opportunities will come.

Keep writing me, keep thinking, and keep winning!

Rebalance and Invest in 2011

Finally I have the opportunity to say "Happy New Year" to all my readers may this year bring the Millions we are waiting for, of course there is no easy way, during 2010 I experienced multiple ideas to make One million euros in less than 5 years and so far it is more than working, I experienced interesting surprises during 2010, I welcomed a baby girl named Katariina, got a new job, got a new house, increased my assets, met new and interesting people, diversified and increased the portfollio I manage, got new advertisement deals and I was able to work and collaborate with Investors and entrepeneurs that I admired in the past, and all this in a way happened just because of you My Readers.

So a new year has come 2011 a year to cash out and keep Investing, but before we do that let's have a look at my favourite positions and their respective profit during 2011 just in the Helsinki Stock Exchange all my International positions could be tracked on my previous posts with amazing results.

I will just show an example of 4 of my stock picks and their performance during 2010, Why would you like to put money into your 35th -best idea right?

1) M REAL B

Offers paperboards as well as office and other papers for consumer packaging, communications and advertising end-uses.

Has 13 production units in five European countries and about 4,700 employees.M-real is part of the Metsäliitto Group, one of the largest forest industry groups in the world, and is listed on the NASDAQ OMX Helsinki Ltd. This share increased 88.46% during 2010, and it will be a major player of my portfollio during 2011.

2) OKMETIC

Okmetic is the world’s leading supplier of silicon wafers for MEMS manufacturing. Crystal growth technology is at the very core of Okmetic’s expertise. It provides the foundation also for highly doped, low-resistivity wafers that enable extremely high performing power semiconductors. This share increased 75.40% during 2010, a must have.

3) RAISIO VAIHTO

Raisio Oyj, known internationally as Raisio Group is a company that makes cereal products, potato products, animal feeds and engage in life-sciences. Raisio produces benecol a ingredient used in a range of Cholesterol-reducing spreads, products and condiments marketed under its Benecol brand name, this share has increased 77.27% during the last two years.


4) PANOSTAJA Oyj PNA

Panostaja is a financially secure Finnish multi-field corporation that creates healthy companies Their goal is to elevate their investments in different fields from 5 to 10 years. I had the pleassure to meet one of his financial advisors and he gave me the trust and confidence to keep Investing with them, this share increased 41.75% during the last five years.

As you can see the average profit of this concentrated portfolio is 70.72 % and follows the basic rule of investing don´t lose money, so let´s assume you invested 10,000€ on these three stocks with a return of 70.72% you would have 17,720€ a perfect time to cash out some profit and rebalance.

Rebalancing is the process of bringing one’s portfolio back into proper asset allocation if you can do it yourself, or the time to change to a new money manager if you are not happy with the one you have.

During the year, the mixture of stocks,bonds mutual funds, and cash has likely shifted. Stock and bond values go up and down all the time. Your portfolio mix may be out of whack.

For example, you may have started the year with 60% of your money in stocks and stock funds and 30% in bonds and 10% in cash. The stock portion of your portfolio may have grown larger than your initial allocation percentage. Now you may have 80% of your money in stocks and 20% in bonds. You will want to trim your stock exposure back to its normal level.

the dynamics of your portfolio have to change. Every year, your stock percentage should go down 1 percentage point and your fixed income securities should go up one percent. Every year that you get closer to retirement, the more conservative that your portfolio should become.

If you handle your own portfolio, then you will want to shift your assets from the portfolio portion that has become too top heavy. For example, reduce your position in a stock or stock fund that has gained significantly during the year take the initial Investement and reinvest the profit a win win situation.

Add these proceeds to the portion of your portfolio that is lagging. For example, let’s say own an aggressive small cap fund and a moderate large cap fund. If the aggressive small cap fund has significantly outperformed the large cap fund then you may want to trim your position. Make sure that your portfolio fits in line with your risk tolerance. A lot of people thought they were risk takers until the market crash of 2008 caused their portfolios to crash 50 to 60%.

A good strategy to take is to sell off funds that have become big and bloated. Maybe you are overly invested in domestic markets and need more international exposure Finland is a great option send me a line or two. Look for funds that may have underachieved the last year or so that may be due for a breakout. Yesterday’s market losers may be tomorrow’s winners and yesterday’s winners may be tomorrow’s losers.

remember to rebalance every single year many people never rebalance their portfolios and do not find out that they are overly concentrated in one area until it’s too late, the ones who rebalance are the ones that keep winning. You can pick the time of year that work’s best for you. I prefer to rebalance my portfolio at the beginning of the year. This way I can sell off positions that I want to get out of and start the year off fresh. It also allows me to take any necessary tax losses to offset gains on my portfolio.



There are so many interesting topics to Invest during 2011, I will have a close look to currencies now that I´m constantly evolving in that field specially Asian currecies (JPY,CNY,HKD,SGD) Also AUD and let's not put aside the precious GOLD that drives people crazy just have a look at it's interesting performance during the past year:


So there are endless opportunities to acomplish the objective of one Million Euros in less than 5 years let's make it happen during 2011, eager to hear your comments and ideas don´t hesitate to contact me, have a great start of the year!