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Thursday, December 26, 2013
Sunday, June 9, 2013
Why You Should Invest
The National Bank, Oamaru, built 1871: a prostyle Palladian portico on a neoclassical facade (Photo credit: Wikipedia)
Investing has become increasingly important over the years, as the future of social security benefits becomes unknown.
People want to insure their futures, and they know that if they are depending on Social Security benefits, and in some cases retirement plans, that they may be in for a rude awakening when they no longer have the ability to earn a steady income. Investing is the answer to the unknowns of the future.
You may have been saving money in a low interest savings account over the years. Now, you want to see that money grow at a faster pace. Perhaps you’ve inherited money or realized some other type of windfall, and you need a way to make that money grow. Again, investing is the answer.
Investing is also a way of attaining the things that you want, such as a new home, a college education for your children, or expensive ‘toys.’ Of course, your financial goals will determine what type of investing you do.
If you want or need to make a lot of money fast, you would be more interested in higher risk investing, which will give you a larger return in a shorter amount of time. If you are saving for something in the far off future, such as retirement, you would want to make safer investments that grow over a longer period of time.
The overall purpose in investing is to create wealth and security, over a period of time. It is important to remember that you will not always be able to earn an income… you will eventually want to retire.
You also cannot count on the social security system to do what you expect it to do. As we have seen with Enron, you also cannot necessarily depend on your company’s retirement plan either. So, again, investing is the key to insuring your own financial future, but you must make smart investments!
Related articles
Why You Should Invest
Friday, March 29, 2013
Wednesday, December 26, 2012
5 Ways to Make Bank of America Credit Cards Work for You
Bank of America credit cards have become synonymous with travel rewards. When Bank of America merged with MBNA a few years ago it instantly became one of the dominant players in the credit card industry. By joining with MBNA, Bank of America has now become the defacto leader in travel rewards credit cards.
In addition to a wide variety of travel rewards programs, there are also several cash back rebate deals and student credit card offers. Let us take a look at the features offered through Bank of America cards to see how they may, or may not, suit your financial needs.
1. Balance Transfers - Most Bank of America cards offer 0% APR on balance transfers for a period of 6 - 12 months. If you happen to carry a monthly balance on your current cards, you may want to consider taking advantage of a balance transfer offer to save money on interest payments. They also allow you to pay off more of the principle with the money you would have otherwise of been spending on interest.
2. 0% APR on Purchases - As an incentive to attract new customers, most credit card companies offer 0% interest on all new purchases for periods of 6 - 12 months. Bank of America cards feature these introductory offers as well. These types of deals can be beneficial to the consumer who is planning on making a sizable purchase and would like some time to pay it off in fill.
3. Rewards Programs - If you travel often then you will definitely want to take a look at the various travel rewards programs offered through B of A. There are many cards that are partnered with specific airlines and offer bonus miles for that carrier. Other rewards programs include cash back, merchandise, dining, hotels and more. Take your to time read over the terms of each offer to find one that may benefit you.
4. Fraud and Theft Protection - It is a rather unfortunate fact that new technologies often breed new opportunities for criminals. Credit card fraud has become a billion dollar business worldwide. In order to protect yourself, always choose a credit card that covers you with 100% protection against theft, fraud and unauthorized use, regardless of the bank or credit card issuer.
5. Annual Fees - Annual fees have become a bit of an afterthought when people review and compare credit cards. There is virtually no escaping balance transfer fees. They usually run at around 3%, but are capped at $150. Annual fees, however, are a different story. You will find that most travel reward credit cards have annual fees. Be sure to compare them and decide if the rewards warrant you paying those fees.
As with all credit card offers, the terms and conditions of the Bank of America credit cards that you are interested in should be studied carefully to determine if that offer is a good financial fit for you and your consumer needs. The best way to find the appropriate card for you is to do a side by side comparison of the benefits and features of each card you are interested in. Then, upon gathering all the facts, you will be prepared to apply for the card of your choice.
You can obtain more information about Bank of America Credit Cards [http://www.find-cards-now.com/issuers/b-of-a] at the secure web site
[http://www.find-cards-now.com/][http://www.find-cards-now.com/]. You can review, compare and apply for Bank of America Cards [http://www.find-cards-now.com/issuers/b-of-a] online.
Bank Vault Report Review - What the Sales Page Doesnt Tell You!
In this "Bank vault report review" I intend to outline the ins and outs of the Bank vault report system. The system is based on what John Dee refers to as him lay ladder. What this means is that unlike the normal keep betting till you get a loser, the Bank vault report does the opposite. You keep betting until you get a winner. John says that he developed the system after his own personal experience of betting for years and like most people I know he also found it easier to pick losers than winners. After buying this report I must say i was really impressed firstly by the easy PDF format. The report is professionally written and makes it easy to read.
Unlike most betting systems that start with the usual stuff about how to place a bet, the bank vault report gets straight into it which means that you can get to winning money straight away. Like all lay betting systems the bank vault report uses Betfair although you can use any betting exchange. To be honest I think Betfair is the best exchange anyway. This system is really worth the money. Since starting 10 months ago I have made just over £7000 and i only started with a bank of £100. This system really works. The annoying thing is its not rocket science, its simple stuff and I just wish I had figured it out my self and saved my self some money!
However John Dee really is providing a great service here and I'm glad I invested the small amount as I made the money back within the first 4 days. The potential to win money is also now greater than ever since the introduction of the bank vault report version 4! This now includes foreign betting as well so you can earn even more. In conclusion I would rate this system 4/5 hence I've rated it number 2 in my top 5 lay betting systems. The Bank vault report is very good value for money and I would advise anyone to take advantage of the system.
Ok so now that you know that there is a lot of easy money to be made by using a lay betting system, save yourself time and money and have a look at my reviews of the top 5 most profitable lay betting systems and start making money today. I have outlined what ones are best for different reasons weather you are new to this type of betting or weather you have been betting for years. Go now Click here for my top 5 This is also how to get your FREE £10 BET. Just follow the link above.
Metro Bank Review and Up-Date
Metro Bank opened its doors for business in London in July, with its unusual mandate to "eliminate every stupid bank rule" found. Since the introduction of the first retail bank store, how have they been received by the public and how successful have they been? Find out with this Metro Bank review and up-date.
Until this year, the term 'retail banking' was relatively unknown in the UK. Many people had never even heard of retail banking, which in case you didn't know, is a one-stop bank shop. Taking care of your money is only the start: they also transfer money, provide loans, give financial advice and insurance, offer foreign exchange services as well as the usual savings advice.
The Metro Bank store, with its brand new concept of 24/7 telephone call centre and treats for both children and pets, is designed to give you a "better customer experience", with light and airy lobby space, no glass security panels, customer toilets and free coin-counting machines.
Added to this "experience" comes better availability, with opening hours of 8am-8pm five days a week and differing hours for Saturdays and Sundays. The only closures are Christmas Day, New Year's Day and Good Friday. Their top trump is the answer to much customer frustration - a human voice at the end of the telephone instead of a machine.
So far, so good, but how have they fared? Have they seen confidence expressed by the London public? Well, it is still very early days, but a recent news review says that the bank is ahead of internal targets it set for itself. There is planned expansion of another 100 jobs on top of the 150 previously created and a waiting list of 200 people to open business accounts. They could be seen to have done very well.
Also just out is the announcement of a new "mold-breaking" credit card to be launched in America - the Metro Bank Personal Visa Credit Card. It boasts a 9.9% annual percent rate with no late fees, annual fees or balance transfer fees. Considering that the average rate for other credit cards is 16.7%, it could prove very popular.
Metro Bank Chairman Gary L Nalbandian says that the rate starts low and stays low, and that "no fees means no fees", not in six months, twelve months, or ever. The credit card services will also have online account access, as well as the 24/7 call centre.
Whilst the first new bank in a 100 years opens it doors, other banks can only watch and wait. Captivating the curiosity and confidence of the public, Metro Bank have been quick to seize the moment and expand. As you watch and wait yourself, spare a thought as to how you can expand and create more wealth for yourself. Since creaky financial structures have given way over the last few years, we have learnt to not put all our eggs in one basket. Branching out into other wealth-creating activities seems a wise thing to do. Click here now http://www.earnyourwealth.co.uk to see how some internet home business owners are creating six figure incomes. I hope you have enjoyed the Metro Bank review and up-date.
Olive Bush is an online marketer teaching people from around the world to make money online and how to build their home based business. To learn more about Olive and her business please visit http://www.earnyourwealth.co.uk
Metro Bank UK Product Review - Changing the Face of British Banking
Blink and you'll miss it. The business pages of the broadsheets this week-end carried reminders about the opening of the first new bank for a 100 years. The Metro Bank is opening its first branch in London on July 29th. Since they exist to "eliminate every stupid bank rule we can find", here's my product review of the retailer bank out to change the face of British banking.
One of the more interesting aspect of the new banking philosophy is the idea that as retailers, their first priority is to put the customer firmly in the centre of the business. In this product review, here are some of the differences you can expect to see at Metro Bank:
* Being open when people need to bank - the banking industry may finally have entered the 21st Century with new opening hours of 8am-8pm five days a week and differing hours for Saturdays and Sundays. In fact, the only times the store will close will be Christmas Day, New Year's Day and Good Friday.
* A better customer 'experience' - Metro Bank provides toilets as well as treats for pets and children. They also promise to answer all telephone calls 24 hours a day, 7 days a week.
* As a retailer bank, there are some very practical changes in their open-door approach. In the lobby you will be greeted with a light and airy space, no glass security panels and free coin-counting machines. Apart from this, there has been very little real information about the services and products on offer.
whilst all this is very nice, it can seem a bit gimmicky unless you understand the reasoning behind it. The Co-founders believe that if the customers are given a great banking experience, they will be prepared to do business for a longer period of time and be willing to hand over more of their deposits.
However, for all the 'experience', customers will want to know that their money is safe, that they get the best possible return on their deposit and that Metro is taken seriously as a bank and not just a shop.
Changing the face of British banking does not come free. One of the first things new customers will note is that the interest rates are around 1/2% lower than the other banks. Practically speaking, that means anyone with £5,000 deposited would be paying roughly £25 per year to be able to bank at more convenient hours.
Metro Bank plans to open 4 banks in 2010 with more to follow. As we look on whilst Londoners decide whether to entrust their hard-earned wealth into the new bank's hands, maybe now is the time to spare a thought as to how you yourself can create more wealth for your own bank account. Find out how some people have earned themselves a six figure income. Having reviewed the Metro Bank UK product and how it is changing the face of British banking, I hope you can also see a way to find new wealth creation for yourself.
Olive Bush is an online marketer teaching people from around the world to make money online and how to build their home based business. To learn more about Olive and her business please visit http://www.earnyourwealth.co.uk
Peoples United Bank Review
Peoples United Bank has its main Banking Station in New England and happens to be the biggest regional Bank Conglomerate. The company owns a total of seven banks that have a total of 21 Billion in total assets. Peoples United Bank owns Banks in several states strung out all over the East Coast. The company happens to own a total of seven bank chains with over 250 total locations. Not only that, 77 Supermarket locations which provide banking services to it's members while they are shopping.
Peoples United Bank was founded in 1842. We found out upon research that they do indeed offer services to small and large businesses as well as non-business people who just want to keep their money in their bank. They also offer financial planning and investor advice to people who need it, as well as sell Life Insurance. The Bank also reinvests some of its profits back into the communities where they operate their branches.
In fact, there is some unique history behind this company worth mentioning. The original mission of Peoples National Bank back in 1842 was to give people who commuted and work within the Bridgeport Area their own savings accounts. This bank was the only one to offer this service at this time. Historically, if you weren't rich you could never think of opening up a Savings Account. This Bank opened it's doors right at about six years after the City of Bridgeport received its Charter.
The philosophy behind this was that as a Bank wanting to conduct transparent business within a city hoping to be around long term, they knew that they would have to get the respect and trust of the workers, not just the wealthy business owners. Their long term goals are to keep that old school personal touch and to get what they want by helping other members in the community get what they want.
Find out more about Peoples United Bank [http://www.hottopicreviews.com/reviews/peoples-united-bank-review] Review by Brian Garvin and Jeff West at Hot Topic [http://www.hottopicreviews.com] Reviews today.
Tuesday, August 7, 2012
Three Things To Look At When Reinvesting Matured Bond Proceeds
Whether we like it or not, fixed income investments are a necessary evil when it comes to investing for any long term goal, namely retirement. At current rates, however, the prospect of investing in bonds or any other type of fixed income investment is made difficult. As well, the media has been extremely vocal about how this specific asset class is doomed to fail in the coming months and years.
As level headed investors, once we realize that this asset class is likely to be around for decades into the future, we see that while there are few opportunities for growth in this field at the moment, the long term prospects for bonds and fixed income instruments remain fairly strong. In addition to being the best performing asset classes of the past decade, bonds offer steady income at reduced levels of risks. But if you are looking into buying into this asset class in the near future, here are three things you need to consider:
1. Coupon Rate. This is the amount of income you can expect to earn on your bond or bonds, representing the cash flow. In periods of low interest rates, coupon is arguably the most important factor when deciding to buy a bond. With rates expected to increase, it is important for the purchaser to ensure that the coupon is sufficient to offset rising rates.
2. Price. Although it is difficult to purchase a bond at a premium, for many investors the benefits of a higher coupon rate will offset the capital loss at maturity. As well, if an investor knows that he or she will have gains from other assets (due to liquidation as an income or cash replacement technique), the buying at a premium could have positive tax implications. Likewise, for long-term investors who would prefer to see a capital gain rather than incurring interest income from coupon payments, purchasing a bond at a discount will make the most sense. Consider your tax and income needs before buying.
3. Maturity. Knowing your bond's maturity is essential to ensuring that you are not going to be caught off guard at maturity time. Since the income will need to be replaced, a decent understanding for the interest rate climate is vital before you can match your income needs to the right maturity options available.
These are three of the key things you will need to consider when buying bonds. Although there is no escaping the fixed income component of any investment portfolio, you can opt to make the best decisions not only for the current day, but for the years that the investment or investments are expected to last.
--> Interested in Dividend Funds as an alternative? See whether they are right for you at MutualFundSite.org.
Chris has more than 17 years of financial services experience. As a regular contributor to the Mutual Fund Site, he recently wrote about Gold Funds and the Franklin Gold and Precious Metals Fund in particular.
Tuesday, May 29, 2012
Wells Fargo Report Phishing Scam
First off I should explain what phishing is. Phishing is basically the act of tricking a victim into divulging information. It involves the receiving of an email message with a link to a website where the victim would enter personal information. In this particular scam, you get an email from "Personal Banking: personalbanking@wellsfargo.com" stating that there may have been some unauthorized access to your account and that you should click the link and enter your account and verify some information. When you click the link you are taken to a site which looks identical to the Wells Fargo site.
If you look at the HTML code of the site, you'll notice that they are almost identical. One thing about this scam which was somewhat surprising is that the message made it past my G-mail spam filter. This is slightly different to scams I have seen before in that they don't ask you to reply to this email with your account number like most others, and they don't ask for passwords or anything like that. They simply request that you log in, as you normally do, which would not raise the eyebrow of normal users. On a closer inspection of the site you will notice that the forms submit the data entered (user name and password) to some foreign script and not to Well Fargo. Most probably, the scammer is having all the usernames and passwords emailed to him. After submission of your information the site responds that your password is incorrect. Here an unsuspecting victim would assume that this was because of the supposed unauthorized access mentioned in the email.
If you try to submit information a few more times, it takes you to another Wells Fargo look-alike page called “Online Banking Verification”. Here they ask for SSN number, your ATM card number, the expiration date, the pin number and the CVV2# (4 digit verification). With the ATM information the scammer could max out your debit card. With all the rest of the information he has gathered it would not be at all difficult to call up Wells Fargo and basically take over your account. He could change billing addresses, get checks for you account, and simply wipe it out.
How to spot scams like this
Scams like these are usually easy to spot, but this one in particular was a bit tricky, however there are some basic methods you can use to spot these types of scams.
First of all, check the link. Although it looks like the link is going to Wells Fargo’s website, if you let the mouse hover over the link for a while and look in the status bar, you will get the real address of the link. In this case the scammer used just an IP address of his domain or machine. This, however, can be overridden on the internet (if the scammer changes the status bar) and sometimes even in your email, depending on what your security settings are.
Check the address bar. In this case, the address bar reported that the website was also from the scammer’s IP address. Simply put, it did not say http://www.wellsfargo.com. Very seldom would a scammer be able to fake this. They may, however, employ other tricks like buying a domain name with a slight spelling difference that the user might not notice or by simply loading the link in a new window and hiding the address bar altogether.
Lastly, the only full proof method to avoid becoming a victim to a scam like this is to simply call in and verify the information over the phone. Please note; do not use a phone number in the email if one is given. Open up your phone book and locate the number for your firm and ask them about it.
Just remember, if it looks funny and feels funny, it’s probably a scam. Do not ever reply to such email messages for personal information as sensitive as account information and SSN.
Below is a copy of the email message for your review and amusement. The link is active, however DO NOT ENTER ANY PERSONAL INFORMATION INTO THESE FORMS. THIS IS NOT WELLSFARO’S SITE.
Kevin. A. Lloyd.
From: Personal Banking personalbanking@wellsfargo.com >
To: me@me.com
Date: Jun 2, 2005 2:22 PM
Subject: Security Notice #291240 Wells Fargo Internet Banking account
Update Necesary!
Dear Member,
We recently reviewed your account, and suspect that your Wells Fargo Internet Banking account may have been accessed by an unauthorized third party. Protecting the security of your acount and of the Wells Fargo network is our primary concern. Therefore, as a preventative measure, we have temporarily limited access to sensitive account features. To restore your account access, please take the following steps to ensure that your account has not been compromised:
1. Login to your Wells Fargo Internet Banking account. In case you are not enrolled for Internet Banking, you will have to use your Social Security Number as both your Personal ID and Password and fill in all the required information, including your name and account number. 2. Review your recent account history for any unauthorized withdrawls or deposits, and check your account profile to make sure not changes have been made. If any unauthorized activity has taken p! la ce on your account, report this to Wells Fargo staff immediately.
To get started, please click on the link below:
[https://online.wellsfargo.com/signon?LOB=CONS]
We apologize for any inconvenience this may cause, and appreciate your assistance in helping us maintain the integrity of the entire Wells Fargo system. Thank you for your prompt attention to this matter.
Sincerly,
The Wells Fargo Team
Kevin A. Lloyd:
Just launched a website, [http://www.DeleteMySpam.com/], dedicated to helping to eliminate the spam crisis.
Wells Fargo Reports $2.5 Billion in Net Income or Old Lady Losing Her Sanity and Home to Wells Fargo
Between these two headlines from April 20, 2010 I could not decide which was more important, so I figured I would use them both.
The first headline is good news for Wells Fargo shareholders who, according to their press release, stand to make forty five cents per share of common stock on 21 billion in revenue. The numbers posted reflect a giant bank which is thriving. In fact, Wells Fargo is doing so well it bought another big troubled bank last year, Wachovia, a purchase helped out by a little bit of TARP money. Things are good at old Wells Fargo.
Unfortunately, this happy prosperity is not shared with many of Wells Fargo's customers.
The second headline, which will never make the news, is one I made up. It is about a little old lady who was in my office this week. She owns a home worth about $70,000. Five years ago, she took out a loan from Wells Fargo for over $140,000. Five years ago, appraisers for banks like Wells Fargo would say anything to make sure a loan was approved and loan brokers would do anything to get the loan to closing. She was dumb to take such a large loan, and Wells Fargo was dumber to make it.
Her household income, consisting of a small pension, social security and disability for her sick husband, is about $3,100 monthly. Her mortgage payment is $1,600.00.
She is having a hard time paying such a relatively large mortgage and called Wells Fargo to see if the loan could be modified. "Sure..." the nice lady from Wells Fargo said..."All you have to do is pay off all of your credit cards."
This poor old lady has credit card bills totaling $20,000. She and her husband used them for many years, more so after he got sick and could no longer work. They can't pay them anymore. Collectors are calling her all day every day. Wells Fargo's request that the cards be paid in full is nonsensical and hardly worthy of comment, aside from the fact that these large national lenders tell their worried customers things like this every single day.
How does a lawyer advise someone in her position?
Her true situation is this. She's old enough that if she stopped paying everybody, it would take a long time for her to lose her home. The local courts are presently flooded with foreclosures, each takes a long time to process. The credit card companies will call and write her, and maybe sue in a few years, but she is underwater in every direction, and she has no assets to satisfy any judgment. The biggest price she is paying is personal. She was very distraught, having never missed timely payment of bills her whole life. I could see that the stress of her situation will simply kill her.
That's not what I told her though.
I told her to take some time and calm down, to ignore the collection calls, to stay as current on the mortgage as she is able, and to refer any lawsuits she might get to me. Now, I could see as I spoke to her that she was dumb to take such a large loan, and Wells Fargo was dumber to make it, but who is paying a higher price, the bank making billions or the little old lady crying in my office?
A partner with KPWS Law, P.C., (website http://kpws-law.com/ ), Eugene C. Kelley has spent years helping and working with people with legal and financial problems. For further reading and free advice, please visit http://getbackgroup.com/contact-us/. Financial problems are legal problems. Begin to constructively work out your problems today.
How to Enroll for Wells Fargo Online Banking
Online banking is the method of accessing your account data via your computer. It is a time- sparing method accustomed by so plenty banks around the world. This makes the banks less busy and avoids it from overcrowding. Furthermore, online banking saves the important moment and cash of the customer by preventing him or her from stopping over the bank so often.
Overview of Wells Fargo Bank
Wells Fargo is a world's well-known bank where its headquarters are located in Portland, Oregon, USA. It was established by Henry Wells and William Fargo in 1852. It was opened in San Francisco and after a time since branches were organized in different cities.
Today, it is distributed all across the USA and in some foreign countries. Its ATM are situated all across the States. It handles banking, loans, investing and insurance.
Profile of Wells Fargo Internet Banking
Being one of the world's famous financial corporations, Wells Fargo adapted internet banking system that provides 24/7 facilities.
Wells Fargo online banking makes the client to use their online account, avenue equipment to pay for their charge, debit card avenue to buy items via internet, view the account outline, move money to other account in the similar bank or different banks. In addition, it helps you to check your activities, process auto loans, see credit card information and a lot more.
In addition, its Internet banking provides free online reports and resources such 'My Money Map.' This is an internet facility that helps you to view your financial activities by graphs and charts. My money map consist of My spending report, Budget watch and My saving plan. These profile would be a good benefit to the customers who manage their cash according to their budget.
Wells Fargo Online Banking gives a 100% soundness assurance for your pool ready for use in the bank account and is taking the responsibility if anyone has stolen cash out of your account using several scam or identification fraud.
Furthermore, it has around- the-clock customer care to assist the clients with their bank account issues and to report fraudulent doings.
How to Register for Wells Fargo Internet Banking
To get started with internet banking, the account owner should enter his or her social security number, account and ATM card number and e-mail address. If the consumer doesn't have a social security number there is a check box to tick to indicate that he or she does not obtain a social security number.
When you have completed the enrollment process, you need to click on the sign on to avenue your account. Make certain to furnish all real information relating to your self.
Summary
Lastly, Wells Fargo Bank can be considered as a famous financial company that adapts modern internet banking techniques to increase their capability and serve the customers at the best achievable case.
Gil James is a personal finance blogger who likes blogging on saving, investing and banking. To learn more information on how to apply a Wells Fargo Online Banking account, you should go to Online Banking blog.
Wells Fargo Security
Did you know Wells Fargo Security started here in Buffalo New York? As I did research for this article most of the recorded history stated that William George Fargo an American pioneer express man from Pompey New York and Henry Wells American pioneer express man from therefor Vt. Joined forces in 1852 to form this company. New York City is sited as the point of origin. My research finds things a little different. Wells Fargo Security actually got its start in Buffalo New York.
Henry Wells as a child moved to central New York State. He was an entrepreneur at heart and in 1843 he established an express service between New York City and Buffalo. He competed with the U.S. Post Office and was carrying mail at less cost than the government.
In 1844 Henry Wells and William Fargo and another partner had organized Wells Fargo and company. A successful express company it merged with American Express in 1850 with William Fargo as secretary. Wells Fargo Security took the need that the gold rush had provided and handled an express company between and New York City and San Francisco. This lead to the establishment of the banking businesses on the Pacific coast with American Express Company acting as eastern representative. Wells Fargo Security was always part of the action keeping the express company assets and banking business safe. William George Fargo severed as President of the American Express Company in 1868. He also was Mayor of the city where it all began, Buffalo New York from 1862 - 1866.
We can't forget Henry Wells when talking about his company. He and Mayor Fargo worked together to establish the express service to California and the West. Mr. Wells made his home in Aurora New York and founded Wells Seminary, now Wells College.
Now I have a little something to add to the Tales of Wells Fargo. From 1852 forward, this Security company left Buffalo New York and concentrated on the business out west. As we previously stated they let the American Express Company here for the Eastern Seaboard. That is true, but guess what? The company came back for a brief period from 1980 to 1998 and everyone missed the event. Wells Fargo Security purchased the William J Burns electronic security division in 1980 and that was the first time they had been home doing business since 1852.
In May of 1998 TYCO purchased Wells Fargo Security and merged the company with ADT alarms. Once again this security company disappeared from their original home.
B.J.Lyons lives in Buffalo, NY. Take a look at some great ideas that you will want to keep safe at his site
Did you know Wells Fargo Security started here in Buffalo New York? As I did research for this article most of the recorded history stated that William George Fargo an American pioneer express man from Pompey New York and Henry Wells American pioneer express man from therefor Vt. Joined forces in 1852 to form this company. New York City is sited as the point of origin. My research finds things a little different. Wells Fargo Security actually got its start in Buffalo New York.
Henry Wells as a child moved to central New York State. He was an entrepreneur at heart and in 1843 he established an express service between New York City and Buffalo. He competed with the U.S. Post Office and was carrying mail at less cost than the government.
In 1844 Henry Wells and William Fargo and another partner had organized Wells Fargo and company. A successful express company it merged with American Express in 1850 with William Fargo as secretary. Wells Fargo Security took the need that the gold rush had provided and handled an express company between and New York City and San Francisco. This lead to the establishment of the banking businesses on the Pacific coast with American Express Company acting as eastern representative. Wells Fargo Security was always part of the action keeping the express company assets and banking business safe. William George Fargo severed as President of the American Express Company in 1868. He also was Mayor of the city where it all began, Buffalo New York from 1862 - 1866.
We can't forget Henry Wells when talking about his company. He and Mayor Fargo worked together to establish the express service to California and the West. Mr. Wells made his home in Aurora New York and founded Wells Seminary, now Wells College.
Now I have a little something to add to the Tales of Wells Fargo. From 1852 forward, this Security company left Buffalo New York and concentrated on the business out west. As we previously stated they let the American Express Company here for the Eastern Seaboard. That is true, but guess what? The company came back for a brief period from 1980 to 1998 and everyone missed the event. Wells Fargo Security purchased the William J Burns electronic security division in 1980 and that was the first time they had been home doing business since 1852.
In May of 1998 TYCO purchased Wells Fargo Security and merged the company with ADT alarms. Once again this security company disappeared from their original home.
Thanks for reading and if you are interested in more about the choices that are out there take a look at my blog and go to the link" The Ultimate Guide to Home Security "
Bud Lyons
An Analysis of Wells Fargo & Company (WFC)
Wells Fargo & Company (WFC) is a huge Western and Midwestern bank that provides a diverse array of financial services to its more than 23 million customers. The company employs more than 150,000 people at its over 6,000 locations nationwide. Wells Fargo has about $500 billion in assets.
While the company continues to derive more than half its revenues from interest income (about $26 billion), its activities are not limited to collecting deposits and lending money. Wells Fargo engages in other businesses such as brokerage services, asset management, and investment banking. The company also makes venture capital investments.
Over the last ten years, Wells Fargo has averaged a 1.57% return on assets and an 18.19% return on equity.
Location
Wells Fargo is closely associated with California in the minds of most investors. The company now operates in 23 different states. However, the concentration in California remains.
Mortgage lending in California accounts for approximately 14% of Wells Fargo's total loan portfolio. Commercial real estate loans in California account for another 5% of the company's total loans. No other single state accounts for a similarly sized portion of total loans. In fact, neither mortgage lending nor commercial real estate lending in any other state accounts for more than 2% of Wells Fargo's total loans.
Cross-Selling
Wells Fargo's focus on cross-selling is well known. The company has a stated goal of doubling the number of products the average consumer and business customer has with Wells Fargo to eight products per customer (from the current four products per customer).
Cross-selling increases customer stickiness. It also helps increase profitability by decreasing expenses relative to revenues. The need for a large physical footprint is reduced - as is the need for a large number of bankers. Instead, the existing infrastructure is able to provide additional revenue from the same customers.
Wells Fargo's Chairman & CEO, Richard Kovacevich, explains the importance of the company's cross-selling in the "Vision & Values" section of the corporate website:
Cross-selling -- or what we call "needs-based" selling -- is our most important strategy. Why? Because it is an "increasing returns" business model. It's like the "network effect" of e-commerce. It multiplies opportunities geometrically. The more you sell customers the more you know about them. The more you know about them the easier it is to sell them more products. The more products customers have with you the better value they receive and the more loyal they are. The longer they stay with you the more opportunities you have to meet even more of their financial needs. The more you sell them the higher the profit because the added cost of selling another product to an existing customer is often only about ten percent of the cost of selling that same product to a new customer. This gives us--as an aggregator -- a significant cost advantage over one product or one channel companies. Cross-selling re-invents how financial services are aggregated and sold to customers -- just like other aggregators such as Wal-Mart (general merchandise), Home Depot (home improvement products) and Staples (office supplies).
Mr. Kovacevich's enthusiasm for the cross-selling model is well justified. It is difficult to quantify the importance of meeting all the varied needs of your customers, because you can not measure the opportunities you missed. However, it is obvious that reducing each customer's interest in considering a competitor's services will greatly increase long-term profitability for any company engaged in any line of business - not just for a bank.
Later, in the same website section, Mr. Kovacevich addresses the importance of customer stickiness:
(Cross-selling) is our most important customer-related sales metric. We want to earn 100 percent of our customers' business. The more products customers have with Wells Fargo the better deal they get, the more loyal they are, and the longer they stay with the company, improving retention. Eighty percent of our revenue growth comes from selling more products to existing customers.
This focus on retention is an important part of a long-term plan to maintain Wells Fargo's above-average returns on assets and equity. Extraordinary profitability comes from differentiating your product or service from those of your competitors. Increasing customer stickiness and reducing "comparison shopping" is a key part of maintaining extraordinary profitability.
Some businesses are blessed with enviable economics because of their product's natural prominence in the minds of their customers. Most businesses are obsessed with market share. But, how many really think about "mind share"? Obviously, a product like Coke (KO), Hershey (HSY), or Snickers is going to have a positive association in the minds of consumers.
For many people, these products will also have a prominent place in each customer's mind (relative to other products and services on which money can be spent). A few other businesses have a healthy mind share without the positive association; GEICO is the most obvious example. The company's brand conjures up nothing but the words "auto insurance". Of course, that's all the GEICO brand has to do.
So, what does all this have to do with Wells Fargo? Mind share isn't just the result of exposure to advertising. In fact, in most cases, exposure to advertising can not duplicate the kind of results that a direct, differentiated experience creates. Entertainment properties are by far the leaders in mind share. People who saw and loved Star Wars remember the film. In fact, they don't just remember the film, they actually file it away (or, more precisely, cross reference it) in countless ways within their mind.
The evidence for this particular example is abundant. There are countless references to Star Wars in other media. The name, the music, the opening text and countless other elements are immediately recognizable. Even the films Star Wars fans hated made more money than almost any other movies in the history of cinema - and this was decades after the original came out. So, obviously Star Wars has the kind of lasting mind share any business should aspire to if it hopes to continuously earn extraordinary profits.
Unfortunately, most businesses, however well run, can not attain this kind of mind share. The products and services they provide can never be as differentiated and memorable as a motion picture. Just as importantly, the positive associations will not be present, simply because the product or service is not inherently exciting, entertaining, or pleasant. This is clearly the case in financial services.
So, what can a financial services company do to improve its mind share? The most obvious tactic is simply to "wow" its customers. In fact, Wells Fargo's CEO discusses this particular option in the "Vision and Values" section of the company's website:
We have to "wow!" them. We know what that feels like because we're all customers. We go to the cleaners, the grocery store, a restaurant or whatever, and we find a situation where we're "wowed!" We walk out and we say, those people really listened to me and helped me get what I need. All of us hear stories about customers, say, who pick a certain line at the supermarket because they know the person who bags the groceries connects with customers -- smiles, greets regular customers by name, asks how their families are doing. When a personal banker helps a customer in one of our stores, or when a customer gets help from one of our phone bankers or does transactions on wellsfargo.com we want them to say, "That was great. I can't wait to tell someone."
Another option worth pursuing is widening the associations present in the customer's mind. Financial services is a business where associations tend to be more conscious, categorized, and hierarchical than the associations formed in more heavily branded businesses. Put simply, the (potential) customer usually thinks of a "set" before thinking of an "element" within that set. Like many mental associations, the information can be returned in either direction. For example, the customer may normally think "banks" and then think "Wells Fargo", but will also be able to return the word "bank" if prompted by the name "Wells Fargo". This categorization is important, because it provides (limited) permission for Wells Fargo to expand its mind share horizontally (across service categories).
In other words, providing a diverse range of financial services doesn't just make sense from the provider's perspective, it also makes sense from the user's perspective, because the user of financial services has already grouped deposits, borrowing, credit cards, insurance, brokerage services, asset management, etc. together in a very loose way within his mind. As a result of this mental network, one positive experience with Wells Fargo will greatly affect a customer's desire to pay for an additional service, even if the two services are not really all that similar.
The three key elements here are: a broader definition of what Wells Fargo is (a place that does "money things", not just a bank), a positive experience, and some sense of trust that the quality of service will be consistent. The last requirement is the easiest to meet, because it's natural for a customer to assume that the positive experience was not a fluke, much the way a diner assumes the good meal he had at a particular restaurant was not caused by his picking the best offering from the menu. The diner usually assumes the overall quality of the restaurant's various entrees is superior. Likewise, a good experience with one of Wells Fargo's products or services will likely rub off on its other offerings.
Valuation
Shares of Wells Fargo currently yield just over 3%. The stock trades at a price-to-book ratio of just under 2.75 and a price-to-earnings ratio of less than 15.
Conclusion
Over the last 5, 10, 15, and 20 years shareholders of Wells Fargo & Company have fared better than the S&P 500. As of the end of last year, WFC's total return over the last ten years was 17% vs. 9% for the S&P. Over the last 20 years, WFC outpaced the S&P 500 by an even wider margin: 21% vs. 12%.
Wells Fargo has a stellar reputation with investors. The company is the only U.S. bank to earn Moody's highest credit rating. Wells Fargo also boasts a well-known major shareholder. The largest owner of the company's common stock is Berkshire Hathaway. Warren Buffett's holding company has a roughly 5.5% stake in Wells Fargo. Berkshire's last reported purchase occurred during the first quarter of this year.
Wells Fargo has a stated goal of achieving double-digit growth in earnings and revenue while managing a return on assets over 1.75% and a return on equity over 20%. Those are both very ambitious goals. The company has achieved some of the highest returns on assets and equity of any major U.S. bank. However, Wells Fargo will probably need to increase the percentage of revenue it derives from fee businesses if it is to achieve these goals.
In the years ahead, the company may well become more of a diversified financial services business. In fact, that's what I expect will happen. The company's commitment to cross-selling is not some fad. Eventually, this commitment will change the way investors think about Wells Fargo. Soon, it may be considered much more than a bank.
Wells Fargo's CEO makes the case that his company's P/E is simply too low. Wells Fargo has a solid history of strong growth and profitability. So, why should it be valued similarly to most other banks? Shouldn't it be awarded a multiple more in line with a growth company?
There's actually some merit to this argument. Wells Fargo is unusually well positioned for a bank. Often, those banks that seem certain to earn very high returns on assets and equity for many years to come are poorly positioned for future growth. These banks are often smaller than their competitors and focused on a specific geographic niche. Any acquisitions would dilute the exceptional profitability of the bank's niche.
Of course, there are also many consolidators in the banking industry. Unfortunately, many of these banks do not have a history of earning the kind of returns on assets and equity that Wells Fargo has achieved. Even more importantly, there is little differentiation between these titans of the banking industry and their national competitors. Therefore, their moats are highly suspect.
Wells Fargo is a different kind of bank. It has a history of extraordinary growth and profitability. There are two obvious opportunities for future growth: geographic expansion and cross-selling. Of these two opportunities, it's clear I'm more enamored with the latter. An eastward push is not necessary, and certainly not via an ill-advised acquisition.
There is a lot of value in the Wells Fargo franchise and there is plenty of room within that franchise for future growth. That's one of the great advantages of the financial services industry. With the right model, limits to growth are almost non-existent. In other highly-profitable industries, there is often nowhere to reinvest new capital at a similar rate of return.
If Wells Fargo is a growth stock, it is a peculiar sort of growth stock. Maybe that is what attracted Buffett to the company in the first place. Here is a business with a strong franchise that can grow for many years to come. Perhaps most importantly, it is a growth business that frequently trades in the market at value like multiples, simply because it's a bank.
At the current market price, Wells Fargo is the sort of investment you make once and forget. The valuation is not so cheap as to promise a good return if the business falters. But, the business is not so suspect as to require the margin of safety be provided by a low P/E ratio. Sometimes, near certain growth is the margin of safety.
On a separate topic, I'd like to encourage anyone with an interest in competitive advantages to read the entire "Vision and Values" section of the Wells Fargo site.
Superficially, it looks like any other online presentation to investors. In truth, it is nothing like those hollow, sugary slide shows. It's actually an engaging exploration of competitive advantages within an industry that seems totally unlike the sort of branded, consumer-oriented businesses one normally associates with strong franchises. Even if you aren't interested in the banking industry in particular, I recommend reading this section for its insights into customer psychology and behavior.
Geoff Gannon writes a daily value investing blog and produces a twice weekly (half hour) value investing podcast at:
Sunday, May 13, 2012
The Federal Reserve Bank - America's Biggest Unspoken Problem
Indeed there are plenty of problems facing the United States of America today. Of course, there have always been problems and probably always will. It's the nature of things. There are lots of things one can do about problems. You could panic. You could consult with friends. You could write down a plan. You might have to take immediate action. Every problem is different. The one action that most agree is a bad idea is ignoring a problem. Even worse is to adapt behaviors that help the problem along.
The Federal Reserve is the one of the biggest problems facing America today and it is being ignored and in fact being made worse in many ways. Front runner Presidential candidates never mention those words and when someone does there is an uneasy feeling in the air, especially in debates. Of course, the only people who will dare say those words in a debate have been marginalized and in my humble opinion it seems like no coincidence.
People might ask, what does a federal government bank have to do with our nation's problems? For starters it is federal in name only. The Federal Reserve Bank is not part of our government. It is privately owned. It is an international bank with private owners. Well, you would think with a name like that it would be part of the government. Why would a name be chosen to disguise what they are? Precisely for the reason you would suspect. They didn't want people to know what they are all about.
Unfortunately people aren't generally concerned with how things work. They don't want to see the big picture or gain knowledge about the world in which they will live. It's this nature of many people that helped the Federal Reserve Bank do their thing.
To illustrate the point, here's a simple overview and how the problem might manifest itself in a real life example.
Throughout history the world has had banks, bankers and money lenders. People sometimes need money in the form of loans for various reasons. The general practice is that if you borrowed $1,000 you would have to pay it back over a specified time at a certain rate of interest which is agreed upon by both parties. Okay, nothing dangerous about that. Now imagine that a government needs money. The government has a war to fight and a clever banker agrees to lend a sum of money to that government. Of course, to lend such a large repayment of the loan must be guaranteed. So in return the government promises to guarantee the loan repayment in the form of taxes levied on its people. Not very smart or fair.
This type of banking relationship has been developed by international bankers for centuries. These banks become the nation's central bank. More or less, this means that a government may owe large sums of money to this central bank and the taxes must be taken from the people to pay it back. Not only that the central private bank controls how much money goes into circulation, thus dictating the worth of the currency. So, in essence, the more dollars that get printed unwisely the less the money is worth.
To clarify this point let's briefly use a current example. The federal government has just approved spending 1.4 billion dollars to give to Mexico. The money will be used to help secure Mexico's southern border from illegal immigrants crossing into Mexico (you read that right). The 1.4 billion dollars will be borrowed from a private internationally owned bank called the Federal Reserve Bank. The money will be printed out of thin air. As soon as the money goes out into the world the interest meter starts running, so to speak. Now keep in mind that the 1.4 billion and the interest for the money borrowed and spent are owed to a private international bank whereby the loan is guaranteed by the payment of your taxes.
So the government has decided to spend money we don't have on fixing the illegal immigration problem of another country. The printing of the money weakens our dollar. Further, the dollar is basically worthless because we are printing it out of thin air and it is backed by no real value like gold or silver (another problem caused by The Fed). To top it all off, you get to pay back the loan on this absurd government spending by taking a large chunk of money out of your paycheck, which is now worth less because we weakened the dollar borrowing and printing the money. Let's not forget, the government will take money you earned from your paycheck before you will be able. We have to pay the government first in the form of higher taxes because of a weakened dollar to pay for spending this money to correct a problem in Mexico? Oh, please be aware that the taxes collected by the Federal Reserve Bank's virtual collection agency, the IRS, goes to pay down just the interest on the money the government has borrowed from this privately held business - owned by a relative few international bankers. Many of these bankers are from a long line of baking families which hold sway over most of the major countries on this planet. It's kind of a scary thought don't you think? There is a lot of informal political power behind the purse strings of central banks of many nations.
If that's not enough, I will just point out quickly an uncanny coincidence. It states in the constitution that taxing income is unconstitutional. However, the 16th amendment was passed rather shadily, and according to some, illegally. It went through in a very shady manner three weeks before the Federal Reserve Act of 1913 was passed in a very shady manner, as well. Remember the deal with the international central banks. They will happily be your nation's central bank as long as the loans are guaranteed by taxes. The timing and circumstances seem strange.
The Federal Reserve Bank is America's big problem. Handing over of this power to a small group of international banker's compromises our economic well being. It gives enormous control to a small group of people whose first interest is profit and power. These individuals are international in nature, not American, so their interests are not consistent with America or any other independent country. It could be said that they are the root of globalism. Nationalism gets in the way of their business interests. Some even seem to think these international banking empires represent the push for international / global law and taxes (i.e. carbon tax). You see, the problem goes much deeper. But don't take my word for it.
I will leave you with two quotes:
"If the American people ever allow private banks
to control the issue of their money,
first by inflation and then by deflation,
the banks and corporations that will
grow up around them (around the banks),
will deprive the people of their property
until their children will wake up homeless
on the continent their fathers conquered."
- Thomas Jefferson
Founding Father, Patriot, American
-----------------------
"Give me control of a nation's money and I care not who makes the law."
- Mayer Amschel Rothschild
Founder of the Rothschild family international banking empire
Article written by Richard Penney, contributor and columnist at The Black Sheep Report. It is a website where politics, pop culture and society as a whole are looked at through a unique lens. It offers a blend of analysis, commentary, opinion and biting humor. It's driving force is reason, independent thought and questioning accepted truths.
[http://www.blacksheepreport.com]
What is Your Banker's Involvement?
An important stakeholder of any business is the bank. Banks are arguably the leading source of capital for entrepreneurs. While they are reluctant to provide startup capital in the early stages, commercial lenders play a major role in helping businesses grow and expand. Your relationship with your banker is extremely important as you grow your business.
Many entrepreneurs think of their bankers as sources of capital for funding their businesses or resolving monetary issues. However, your relationship with your banker can have a huge impact on your business. Know your banker as a person and build a relationship based on trust. Get your banker involved in your business versus having him/her stand on the sidelines. Bankers are a great resource - - - so put them to work.
Your banker has an important stake in your business and a genuine interest in your progress. In order to get the most value from your banking relationship, think of your banker as more than the person who is funding your dream. Your banker can be a valuable source of information, insight and advice.
Your banker is a valuable resource because he/she understands your financial situation better than anyone--with the exception of your CPA, attorney, or advisor. Meet regularly with your banker. Make sure your banker understands your business and financial goals by keeping him/her informed. Be the first to share with him/her the good, the bad, and the ugly news about your business.
Provide your banker with a steady flow of information, financial statements, and regular status reports. When your banker feels like a member of your team and when the need for a special loan or extra financing arises, he will be more receptive to your request. Your banker is usually more than willing to help you. However, banks are risk-averse and want to protect their investment in your venture. The more information they have about your business, the less risk it is for them.
In order to communicate successfully with bankers, you need to understand who they are and how they work. Bankers are financial professionals, but they are not necessarily experts in your particular business. Bankers think in terms of general business practices and finances. They evaluate you and your venture based on these merits.
Learn their language and demonstrate sound venture planning /business skills if you wish to succeed in implementing your idea and developing it into a profitable business. Banks rely primarily on financial statements, business plans, etc., in making their lending decisions.
Create a current and well-designed formal business plan--it is the foundation of any successful business and is instrumental in securing funds for your business. A formal business plan is a summary of how you, the business owner, intend to organize your enterprise and implement activities that are necessary for your venture to succeed. It is a written explanation of your company's business model that explains, in detail, your product/service offerings, competitive environment, revenue projections, cash flow projections, cash expenditures, and required funding.
The foundation of your banking relationships rests on the premise that you need the banker, and the banker needs you. The banking industry is changing radically. You, as a borrower, can prosper by taking a proactive approach to your relationship with your banker. Develop it as one of your most important business alliances!
If you have not been meeting with your banker regularly, start now by trying this:
* Pike up the telephone and call your banker.* Ask him/her to lunch this week.
* Be prepared to discuss... the good, the bad, and the ugly about your business.
* Tell him/her the truth about the status of your business and describe the challenges that you face.
* Also, use this time to get to know him/her more personally.
An author, speaker, and consultant, Terry H. Hill is the founder and managing partner of Legacy Associates, Inc., a business consulting and advisory services firm based in Sarasota, Florida. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. Terry is the author of the business desk-reference book, How to Jump Start Your Business. He hosts the Business Insights from Legacy Blog at http://blog.legacyai.com and writes a bi-monthly eNewsletter, "Business Insights from Legacy eZine."
By signing up for Business Insights from Legacy eZine at http://www.legacyai.com/Business_Insights_eZine.html you can keep abreast of the latest tips, tactics, and best business practices. You will, also, receive the free eBook, Jump Start Your Knowledge of Business.
Contact Terry by email at http://www.legacyai.com or telephone him at 941-556-1299.
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