Home Business

Do you have a computer? Then you can start your own Home Business with no capital investment. One way would be to start an online business. More people than ever buy products on-line. An on-line business selling produces is as easy as creating a website. With all the templates, themes and easy start up programs, you could be up and running before you figure out what you’re going to sell. An economical way would be a non-storage on-line business that sells intangible items such as informational products, e-books or even downloadable movies. Except for your hard drive, storage would not be necessary. Also, you could sell products by creating a website on a specific market, like party favorites, wedding gifts and arts & crafts etc...

These sites are great because shipping is often used by outside wholesalers. You wouldn’t have to stock your closets and only process what you sell. No investment necessary, you could start these businesses for free.

Heres a view of Marco Island from a roof top.

Beware of Auto-Withdraws

The other day I just happened to stop by the local Bank to make a deposit when the teller said I’ve been over drawn. There was $66.00 worth of bank charges and the actual amount over drawn was $12.50. Knowing when by bills is due and there were three days left before I would be over drawn, what went wrong? The bank manager just happened to be available and he researched my account and discovered that this particular month my mortgage company auto drafted my account three days early.

The only recourse I have is to call or write the mortgage company asking them to please adhere to the date we agreed. There really is no enforcement or penalty preventing the mortgage company from withdrawing my account on any date. Furthermore, the mortgage companies (who have access to your bank account) can withdraw any amount they deem reasonable for extra taxes, unverified insurance for current coverage (if extra insurance is permitted) or late fees. Beware.

The Bank manager eagerly erases the $66.00 penalty and recommends writing to my mortgage company for constancy.

Chase Fraud Protector Program is Worth an Easy $30.00

Every so often it seems I receive another $15.00 check in the mail for enrolling in a credit card service fraud protector program. By signing the back of the $15.00 check, you automatically enroll in the program for $7.99 per month which you will be charged via your credit card account. If you only wish to receive and take the offered $15.00 and not enroll in the fraud protection program, then you have thirty (30) days to cancel. The number to call is usually located on the back of the check.

For the fear of haggling with some high pressure sales personnel and knowing I’d probably forget to cancel, I normally rip these types of checks in half and discard. But this time I received two $15.00 checks from Chase credit card Company. Tempting as it may be, I deposited the checks.

Turns out, right before the thirty day (30) canceling period to avoid being charged for membership, I called to cancel. To my surprised, the sale’s rep. was nice and could care less if I was taking advantage of their offer and had no problem canceling both of the memberships. The phone call only lasted three minutes. Remember the old phrase, "if it's too good to be true, it probably is"? Not this time.

Stocks & Bonds Paid with More Petty Cash:

A month and a week ago, I started a ShareBuilder.com account with only $200.00. Last week I added another $200.00. One of my realistic goals was to invest in the stocks using only money I can afford to lose.

Here are the results so far:

CAT CATERPILLAR INC. $109.56

MOT MOTOROLA INC $100.83

VLO VALERO ENERGY CORP $103.11

WFMI WHOLE FOODS MKT INC $101.46

Stock and ETF Market Value $414.96

Money Market Cash Balance $50.10

Total Account Value $465.06

ShareBuilder.com gave me six (6) free trades and $50.00 in my Money Market Cash Balance just for participating in their program. What a great deal so far.

Last month I tried to drop MOT & WFMI, but I traded too late and ended adding another $50.00 each. Through trail an error I’ve learned when the cut-off dates are. Next month, if I keep the resolution from last week’s post “Stocks & Bonds Paid by Petty Cash” I’m considering buying stocks the pros recommend with the $100.00 I’ve saved from not drinking as much. Is it better to drink less just so I can purchase another $100.00 of stock? That doesn’t sound like much fun.

Pound Cake Made Easy:

Because of the taste, texture and easiness of baking yourself, this pound cake recipe is a must have. The recipe came out of one of my cooking magazines (Cook’s). This classic pound cake makes one 9 by 5-inch loaf:

16 tablespoons (2 sticks) unsalted butter, cold, plus extra for greasing pan

3 large eggs plus 3 large egg yolks

2 teaspoons vanilla extract

1 ¾ cups (7 ounces) cake flour, plus extra for dusting loaf pan

½ teaspoon table salt

1 ¼ cups (8 ¾ ounces) sugar

Set your oven to 325 degrees. There are only a few simple tricks:

1. Beat eggs, yolks, vanilla and set to the side.

2. Spread 9x5 inch loaf pan with butter and dust with flower.

3. Mix butter and salt first, then add sugar. Slowly add eggs.

(The trick is to add eggs a little at a time otherwise the egg proteins will form a thick film causing the cake to flatten while being baked.)

4. Sift flour a little at a time. (This takes time to slowly add the sifted flour. Try to fold in lightly to create a light batter.)

5. Bake for about 70 to 80 minutes.

Real Estate Investments Using Your IRA Account:

Wouldn’t it be great if you could use your IRA retirement funds for real estate investments? How about purchasing rental property using your IRA tax breaks? This is possible if you use a qualified trust company that acts as your custodian account holder. You can even transfer your corporate entity like a limited partner (LP) or a limited liability company (LLC) into a trust account. There are a few catches though:

You cannot use your family, relatives or your own property for these types of accounts. The IRS would consider you as a disqualified person. Or use your property for any personal use. The property has to be strictly for investment purposes only.

If you are under 60 years old and decide to use your property, you would have to close your trust account and pay taxes and other penalties.

Earnest deposit money for the purchase of investment property must first be transfer to your trust company. After you receive your IRA number, the trust company would pay for the down payment. Remember, investment property cannot directly be in your name.

All properties being financed and transferred to your trust company would require a non-recourse promissory note. The lending institution can only look to the property for securing the note for collateral. The trust company would not be responsible for any un-paid taxes or delinquent payments and there could be unrelated business taxable income such as state taxes.

Mobile homes, time shares, foreign real estate wouldn’t count. If you purchase property through a foreclosure, auction or tax sale, you would have to close the sale first before you can transfer into your trust.

Earnest deposit, insurance, taxes, debt or other expenses must be paid by your trust company to any unrelated third party. Your name cannot be directly connected to any payments for you to maintain IRA status. It would be wise to have all your utilities, etc. sent to your own address so you could authorize the payments to be paid by your trust company. All expense payments should come from your trust account and of course not in your personal name.

Rental producing properties require a third party property manager. If not, the IRS would consider you as a disqualified person. If the trust company receives a monthly or quarterly income & expenses statement, the property manager can pay for expenses from rent monies. If you carry liability insurance then the policy would be in your trust account, not your personal name.

Appraisal would be required every three years in order to update your IRA account. You may use a real estate broker if accepted by your trust company.

You may sell your property and even have your trust pay for the financing of the sale. The proceeds would be given to your trust then transferred for you to reinvest the cash however you choose.

Using tax breaks and creative financing for leverage while investing in a property for 30 or 40% below market value, I believe you would exceed the standard IRA’s and be on your way to a successful retirement.