Precious Metals

I’m already long gold as of 4am this morning and will be buying the silver etf (slv) tomorrow if it rallies above today’s high (it’s 10 day moving average). That will complete my “risk on” basket of futures. My favorite markets to trade are the Nasdaq 100 futures, gold and silver. I have found the best trades in silver are when gold breaks out ahead of time and then silver has to play catch-up. Those trades can be very dramatic and fun to participate in. Silver has been the dog of the two in the past year ever since it had it’s big blow off top last year. I’m thinking it’s time for at least a rally back to $40 but some think we will see $75 silver in the coming months…. I’m not holding my breath on that one.

The Nasdaq 100

I’m also long the Nasdaq 100 futures as that rallied above both it’s 10 and 20 day moving averages today. Strong results from Amazon after the close followed a blow out quarter from Apple Tuesday night so that should keep some support under tech stocks here. Large cap tech stocks remain pretty inexpensive in this environment so I think investors will be pleasantly surprised over what can happen the next couple years.

Jeremy Siegel was on CNBC yesterday talking about how the market can go much higher over the next 2-3 years based on the fact that stocks are historically cheap when compared to interest rates. You would have to go back to 1980 to find the ratio as compelling as it is today. Looks like we could once again have some significant gains, but I’m a little leery of things getting choppy this summer like they did last year. I will be keeping sell stops in below the 10 day moving average, I’m not going to get married to anything on the long side this time of year. Have a profitable week in the markets!

One of the recent start ups that I helped were a couple guys who worked for a company selling skid steer attachments which are highly profitable. They came to me wondering if I could help them get started in business. “Of course”, I told them, “all you need is a good web site and a good online marketing strategy. Within a few months they got all set up and then took the plunge. A year and a half later they have a very successful business of their own and both work from home, it’s a definite change from their previous work environment.

Other people choose to start a “so called” home business by joining a network marketing company. I agree there are some great products out there ( like Manna 360 ) but unless you are really into working with lots of people it can be a nightmare. School teachers tend to do well in these types of opportunities because they are used to putting up with tons of stupid questions and unruly children. My experience in network marketing made teaching look like a cake walk!

If you seriously want a home based business look at what you are interested in, is there an opportunity there? If not, go to Barnes and Noble and just browse the aisles (or do it online) and see if there is something there that interests you. If nothing else pick up a copy of Entrepreneur magazine and thumb through it looking for good ideas. I had one client that did this and realized how important orthotics were going to be for the aging population and became a distribution center for Orthaheel and is now one of the largest sellers of their products in the U.S.

There are an endless number of things you can do, but the main thing is to start out part time and keep your risk very small. The failure rate can be quite high for new businesses so never risk your future on any one idea. It’s much better to start small (part time) and then expand upon it (or go full time) once you experience some success. When you find something that works then focus on it and get the most out of it that your possibly can. That is how successful business people get rich in this world, they focus on proven winners!

What Is Cobra Insurance?

COBRA is an abbreviation standing for Consolidated Omnibus Budget Reconciliation Act. This is a piece of federal legislation that has been in place for some time and is designed to give workers who are laid off a means for maintaining health insurance while they seek another job. If you decide to exercise your COBRA rights, you are allowed to continue as a participant in the group plan of your former employer. Unfortunately, you must shoulder the full cost of the plan, but at least you and your family are not left in a lurch.

The COBRA health insurance provisions apply to a business that has at least 20 employees and maintains a group health insurance plan. If an employee of the business is terminated, has their hours reduced to the point they no longer qualify for health insurance or leaves voluntarily, the employee has the right to continue their coverage under the mandates of COBRA. To make sure the employee knows his or her rights, the company is legally required to apprise them of this right.

Getting and Using

How do you exercise your COBRA rights? You have 30 days from any of the events listed above [termination/loss of benefits/resignation] to notify the company you are interested in doing so. The company must then give you a document within 14 days that details the cost and allows you to give notice that you are exercising said rights. You then have an additional 30 days to sign the document and continue your participation in the plan. If you do not take action during this period, your COBRA rights will expire.

Assuming you take advantage of COBRA, how do you go about actually using the health insurance? This is one area of health insurance where the answer is exceedingly simple. You just continue to use the group plan as you always have. The plan doesn’t change. You have all the same rights and follow all the same procedures that you did when employed. In fact, you can continue in the group plan for up to 18 months via the COBRA regulations. If you have a health savings account associated with your policy, you will want to check out the HSA rules as well. Your health savings account is completely portable so just make sure you maintain a qualified high deductible insurance plan when using COBRA.

How Much Does It Cost?

Is there a downside to the COBRA coverage? Yes. The employer is not required to pay a single cent of the cost. Instead, you must pick up the full premium cost, all deductibles and may have to pay a two percent administrative fee to your former company to administer the plan for you. This creates a rather painful conundrum. You’ve just lost your job and the income it brings in, but now have a rather significant added cost in the increased health insurance premiums. Many people can’t make these numbers work and end up declining the COBRA option.

Is COBRA Insurance Worth It?

Is COBRA health insurance worth spending the money on? Yes, it is. Do you know what the number one cause is for bankruptcy filings in the United States by individuals? It isn’t homes going into foreclosure or credit card debts. No, the single biggest cause is the accumulation of medical bills a person cannot pay. It only takes one small accident or health scare to rack up tens or hundreds of thousands of dollars in medical bills. If you don’t have health insurance coverage, you are personally responsible for these bills.

Getting and using COBRA health insurance is fairly straightforward. The only thing holding most people back is the financial cost involved. If you can find a means for footing the bill, doing so is a wise choice.

Self Employed Disadvantage

Unfortunately, the self employed tend to get the raw end of the stick in most states when it comes to health insurance. For example, groups of employees seeking “group plans” are given advantages such as automatic qualification, lower premium rates and favorable precondition rulings. You get no such breaks when you apply as an individual.

Private Health Insurance

The vast number of self employed individuals will simply buy private health insurance directly from an insurer. The key is to figure out the kind of coverage you need [single/family], the type of plan [HMO/PPO], the size of your deductible and the premium you can afford to pay. Once you have these numbers in mind, you should shop around to get the best prices.

The traditional approach to shopping one’s health insurance needs is to simply work through a health insurance agent. If you are confused about the process, need help evaluating the type of policies available or prefer to work face-to-face, then this is still the best approach to take. If you feel comfortable with the process, than you can also try buying coverage directly off the web where it is easier to shop for lower rates.

Given the seeming preference for all things internet these days, you might think buying a policy off the web is the obvious best approach. Perhaps. Then again, maybe not. Getting health insurance companies to honor their duty to pay for your medical care charges can sometimes be tricky. If you buy a policy from a random site online, you are pretty much on your own when dealing with the insurer. If you go through an agent, you can turn over any problem you are having to the agent and let them deal with it. Since most people have issues with their PPO or HMO sooner or later, an agent can be a very nice luxury.  Ask the agent about the 2013 Health Savings Account rules as well so you can get an idea of whether or not that would be a good alternative for you.

Pros and Cons

To be blunt, there are very few positives to buying private health insurance directly as a self employed person. You are going to pay more than if you were part of a group. You may also have problems getting a policy regardless of price if you have pre-existing medical conditions. Given this, it is always best to investigate every possible strategy for getting into a group. In fact, let’s talk about one less well known approach to doing just that.

Group Health Insurance

Group health insurance is usually much cheaper and easier to obtain. Of course, you need two or more people to form a business group, right? Well, not always. If you are self employed, you should investigate whether trade associations or other industry groups in your business niche offer group insurance plans. Many do as a benefit of membership. You can join the association and then pick up group coverage through their plan while remaining independent in your actual business. You tend to get more comprehensive coverage at a lower price than you would buying individual health insurance, which makes this a much more attractive option.

Catastrophic Health Insurance

Another approach to health insurance that every self employed person should look into is catastrophic health insurance. Also called “high deductible health insurance”, these policies are some of the least expensive on the market. you would only be interested in this type of policy if you simply want coverage for some type of major medical cost such as being hospitalized or receiving a lengthy course of treatment for something unfortunate like cancer. If you have a family and kids who need constant medical attention, the high deductible health insurance policy is probably not a good choice unless combined with a health savings account. If you start one in the spring, an HSA can be the perfect answer for reducing premiums and taking control of health care costs. If you do some research you can often find that you can save enough on the cost of insurance to fund your HSA contributions.

As a self employed individual, you are definitely at a disadvantage when it comes to getting health insurance. That being said, you can get it. It usually just comes down to how creative you can get and what you can afford, so spend the time to investigate all your options.

First, determine your medical needs. You need to look at your entire medical history, including procedures you may need in the next 10 years, to know what you need to have coverage for. You’ll also need to take a look at the medical histories of your spouse and children if they are going to be covered. For example, if your family has a history of obesity you may want to look for a plan that will cover bariatric surgery. If you have good health habits, you can find plans that will reward you for taking regular trips to the doctor for checkups and physicals.

Second, if you current have a doctor or a specialist, you’ll also want to find out what insurance networks they operate in. Insurance companies like to stick with particular doctors and generally offer their best rates if you stay in-network. If you see a lot of specialists you’ll want to find a plan that won’t require a referral from a doctor to see one. You will find it helpful to talk with your doctor to find out what insurance companies work best in their office.

Third, you’ll need to determine how much of a deductable you want to have and how much you want to pay for premiums. A deductable is the share of the costs that you’ll pay as an individual before benefits will be paid by the insurance company. For example, if you have a policy with a $1000 deductable, you’d have to pay that much before the policy would take effect. The insurance company would pay the remaining cost of the bill over that. How the deductable works can vary. Sometimes you can pay over the course of a year before it resets and sometimes it’s per incident depending on your policy. Just having insurance coverage entitles you to negotiated discounts on all procedures as well as on the most common things such as checkups.

When it comes to premiums, the higher your deductable the lower the premium costs are. These lower premiums is why so many people are moving to high deductible plans, however, most people do not set aside the money they should for uncovered claims. This is why a health savings account is such a good tool in this case. They allow you to set aside money on a pre-tax basis that can be used to pay any out of pocket medical costs. Many employers are now offering this as a group plan as well so make sure you ask about this option.

The amount of coverage you need will depend on your answers to the first question. If you’re older or have a risky lifestyle then you’ll need more coverage. If you’re young and healthy you may be able to get by with much less. Knowing how much coverage you need, the types of coverage you need, and how much you’re willing to pay in deductables and premiums will give you what you need to go to the next step.

Next, take the list of insurers that cover your doctor and begin doing research about their policies online. You can simply click on the eHealthInsurance link below and start eliminating companies that don’t provide the level of service you require or have unreasonable premiums. Using online tools it’s easy to narrow down your choices and make the best decision based on your needs.

Oil Prices

If you look at any oil chart they are telling a story of economic strength that is going to keep consumption high enough that prices must rise to ration use. In the western part of ND the Bakken Oil Field is being developed so rapidly due to these high prices that there is starting to cause environmental concerns. However, as long as prices remain over $100 per barrel (or even above $70) there will be no let up. Looking at world oil prices Brent Crude is $15-20 above ours, closing at $125 per barrel yesterday.

World Stock Markets

Many look at the S&P 500 or Nasdaq as the stand out performers but realistically we have had huge rallies in all the European markets as well. The emerging markets are still significantly below their 2010 highs but most developed markets are back to pre-crisis levels. Even European markets (disaster central) are back to the highs they achieved prior to the meltdown last August.

You can see by the chart below that the German Dax is back at the highs despite the fact they are paying for all the bailouts:

The following chart is the FTSE which represents the London stock market. They are less involved in the chaos than Germany but due to their proximity and economic ties are just as affected by the slowing effect of all the austerity measures going on. However, as you can see the FTSE is back at multi-year highs.

The one that makes the most sense being at new multi-year highs is the Nasdaq 100 as Apple and other tech companies have been relatively unaffected by the European crisis. The Nasdaq recently hit levels it hasn’t seen since the Internet bubble was deflating. The huge run in Apple stock has been a major driver for getting this index into new highs.

Gold, silver and especially Gold mining stocks have been under severe pressure for months but finally reversed today. For most observers with any bit of common sense it’s obvious that this huge overhang of debt will eventually be monetized through money creation. It’s highly unlikely that everyone is going to settle for 2 decades of “Austerity” to pay down all the debts. As for the U.S. we are headed into the abyss as Obamacare goes into effect and 42 million baby boomers hit the medicare and social security system. The U.S. will not do “Austerity” we will run the printing presses!!

So for most investors the question is not whether or not to own gold and silver, but just a matter of timing.

ETFs can be traded at any time of the day, just like individual stocks, but are also similar to mutual funds in that they are an accumulation of a number of assets that combine to determine the overall value of the fund. They aren’t as large as mutual funds, and as a result, don’t need to be managed. This means less fees that the investor ultimately shoulders. A commodity ETF can come in several different forms that one can invest in, such as an oil ETF, gold ETF, copper ETF or silver ETF. You can also take advantage of more investment opportunities in the stock market through a a Nasdaq ETF, S&P 500 ETF, and possibly even a higher risk/reward leveraged ETF. An ETF is a great way to diversify your investments, especially multiple ETFs. Another great thing about ETFs is you can save on taxes that are assessed to your investment. Every time a mutual fund reorganizes its investments, a capital gains tax needs to be shouldered. ETFs are different in that they only have such a tax assessed whenever it is sold.

Finding out what you want to invest in can be a challenge, but there are brokers you still make smart investments with the help of a broker. With so many discount and full service investment brokers making their services available, they are a great option if you have no experience trading in these funds and other investments. Although some discount brokers may not actually charge that large of a commission percentage, they can still make their money through a variety of fees, such as inactivity and maintenance fees instead.

One of the things that makes shopping online is that it’s easy to find the and  gather quotes from the best insurance companies in a small amount of time. On the other hand, it might not be as fast, but you can also get in touch with a broker who can provide estimates from different companies. This might be a good idea if you know next to nothing about car or life insurance and would rather that the broker do some of the decision-making for you. Of course, what a broker thinks is best for you and what is actually best may not be completely in sync at all times. This is why it is better to shop for it yourself and carefully compare your options before arriving at a decision. A lot of the same variables that impact the final life or car insurance prices being offered to you can also be factored in online. However, some quick comparison tools are limited from including all the possible discounts you would be eligible for. You will still have to ask for them once you get referred to an agent to finalize the policy.

While the process of shopping for your insurance online is convenient, you still need to consider and adjust for a few things. First is that there is no way you can properly gauge the level of their customer service if you do everything online. This is important, since their customer service is what will determine how easy it will be to file a claim should you need to. You can overcome this by doing your research to find discussions and opinions of the policy holders of the insurers you are considering.

If you’re getting tired of the everyday hassle that you encounter at your current job, if you want to stay at home but still earn a living, search engine marketing is definitely the job for you. Search engine marketing or SEM is a kind of internet marketing which intends to popularize websites by helping these sites maximize search engine visibility by landing on search results pages. The job usually makes use of search engine optimization or SEO. It works by optimizing website content to get higher rankings in a search engine results page. This process is done by putting certain necessary keywords and links related to a specific website. In order for it work at its best, keywords must be as specific as they can be.  On my debt reduction site for example I used how to get out of debt as the primary search phrase and matched it to the domain. In order for a site to land on page one and get read more often, it is important that the content be written while considering the guidelines of proper search engine optimization. A lot of companies have already begun employing individuals for search engine marketing. In addition to that, most of these companies are easy to find on the net and they do not require applicants to appear in person. They usually conduct tests online, such as grammar tests and writing skills tests to ensure that a future employee will be able to perform a task properly. The pay depends on how much a writer can write in a day or how much work is available. There are different kinds of search engine marketing techniques. One kind of SEM is called YouTube marketing, and as the name implies, it involves using videos in youtube. This kind of SEM usually involves video editing, content research and sometimes simply choosing the right titles, but the main focus here is optimizing youtube’s search engine.

Many people are looking online for how to get rich but they should be looking for advise on building a long term business.  For me, learning to organize my thoughts and write effective articles is what changed my financial state.  High quality article writing is also one dominant type of search engine optimization techniques. The articles contained therein may tackle about almost anything you can think of but like other types of SEM, it all goes down to optimizing the search engines. web designing and network marketing are two other types of SEM. So if you think you have the skills to work for a company which involves search engine marketing, you can now earn a living without leaving the comforts of your own home. Just get your computer working and start searching for such companies who are looking for potential search engine marketers, as there are many of them which can be easily found in a search results page.

If you are considering going this direction, it is important that you realize what type of account you will need to have in order to make it work. Since you need to have a substantial deductible, high deductible health insurance is going to be the best route for you to go and it is going to let you save a great deal more towards the costs of any care that you might incur over the years. While it is true that the deductible is going to be more expensive, the fact is that you will pay less in monthly insurance costs because of that which is certainly going to wind up being helpful. It is easy to see why so many people are excited to have this as an option for them because they do save quite a lot of money by not having to pay in so much in the form of taxes. In the end, a little research will give you all of the specifics, but you might just be one of the people who decides this is a smart way to go.

If you are trying to plan for your future, few solutions will be as wise as this one. A HSA Account – High Deductible Health Plan combination mean that you have far fewer worries about unexpected medical expenses and that is always good news. This route has been a popular way to save since 2003. Taking good care of your medical needs is much easier to do this way.