Cheap Auto Insurance – Everyone Should Have It

As a teenager hits the legal age of driving in the state of California they will be looking for Auto Insurance Quotes because they are required to have insurance to drive within the State of California. If they are caught driving without insurance, then they will definitely find out how serious this law is taken within their state.Protecting drivers on the road with you as well as yourself is what Cheap Auto Insurance California is all about. By not carrying auto insurance, individuals could find themselves in all types of trouble. Individuals should not get behind the wheel of a car if they can not even bother with purchasing even Cheap Auto Insurance California.Nothing will prevent an individual from having an accident. It does not matter if the driver has never had an incident before in their life or if they are the best driver on the planet. Their Cheap Auto Insurance California will help them if they do have an accident though by making sure they are financially covered to take care of the damaged caused by the accident.Even carrying Cheap Auto Insurance California will aid you when an accident occurs and your car is not repaired to your satisfaction. In fact, you might be entitled to a full replacement by your insurance company if this happens, but not if you do not carry car insurance. If you do not have car insurance, then you are left with the bill. If you are found at fault for the accident, then you are also responsible for the other car or cars involved in the accident as well.Individuals do not have to be in their automobiles or on the road for some to become damaged on their car. Natural conditions such as the weather or falling branches can damage a car just as easily when it is parked in your driveway, which is why it is important to have California Auto Insurance on your car. If an earthquake hits, then you will have the peace of mind to know that whatever damage occurs to your car that it will be covered.Vandalism is another factor that can happen to your car when it is sitting alone in your driveway. However, here again, as long as you are carrying Cheap Auto Insurance California, then you will be covered no matter if the damaged is a keyed door or broken windows.Even if your car was parked in a parking lot and not on your property, then your Cheap Auto Insurance California will be responsible for taking care of the repairs to your car, which is the great thing about having an insurance policy.Shopping for California Auto Insurance Quotes is the first thing an individual should do after purchasing a new car. However, they want to find a policy that will fit their personal needs. By searching for a Cheap Auto Insurance California individuals will be able to locate the right policy at the best rates for them, while ensuring that they have the protection that they feel comfortable with.

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Five Excellent Investment Characteristics

We favor investments that are low cost, tax efficient, diversified, liquid, and simple. Many investors often run into trouble when they invest in things that do not have these five characteristics. Investments with these five characteristics have been profitable over time, but typically are not very exciting. There is generally not a “hot story that you need to act on now!” associated with them. The financial services industry generally does not favor these type of investments because they generate very little profit from them. We are in the business of helping to maximize the wealth of our clients, not the financial services industry. Keep in mind that this list of investment characteristics is not comprehensive. Other factors to look for in investments might include attractive valuation, low correlation to your other holdings, a nice dividend yield or interest income, a tilt towards areas of the market that have produced higher returns such as value stocks, an appropriate risk level for you, etc.Low Cost. We typically invest in low cost index based funds and exchange traded funds (ETF’s). The funds we invest in have an average expense ratio of only.30% per year. The typical actively traded equity mutual fund has an average expense ratio of 1% or more. With investment funds, the best predictor of future relative performance is the expense ratio on the fund; the lower the better. Hedge funds typically have annual expense ratios of 2% plus 20% of any profits earned. Some variable annuities and permanent life insurance “investments” can have annual expenses of 2% or more. By keeping a close eye on the costs of our investments, we can save our clients significant amounts of money each year and help them achieve higher returns over time (all else being equal). With investment products, you don’t get better performance with a higher cost product, in fact you typically get worse performance.Tax Efficient. Our investments (index based funds and ETF’s) are extremely tax efficient and they allow the investor to have some control over the timing of the taxes. These types of funds have low turnover (trading activity), which is a common characteristic of tax efficient investments. We recommend avoiding mutual funds with high turnover due to their tax inefficiency. After the recent big increase in the U.S. stock market, many active equity mutual funds have “imbedded” capital gains of as much as 30%-45%. If you buy those mutual funds now you may end up paying capital gains taxes on those imbedded gains even if you didn’t own the fund during the increase. ETF’s typically do not generate long and short-term capital gain distributions at yearend, and they do not have imbedded capital gains like active mutual funds. Hedge funds are typically tax inefficient due to their very high turnover. In addition to investing in tax-efficient products we also do many other things to help keep our client taxes minimized such as tax loss harvesting, keeping our turnover/trading low, putting the right type of investments in the right type of accounts (tax location), using losses to offset capital gains, using holdings with large capital gains for gifting, investing in tax-free municipal bonds, etc.Diversified. We like to invest in diversified funds because they reduce your stock specific risk, and the overall risk of your portfolio. Bad news released about one stock may cause it to drop 50%, which is horrible news if that stock is 20% of your whole portfolio, but will be barely noticed in a fund of 1,000 stock positions. We tend to favor funds that typically have at least a hundred holdings and often several hundred holdings or more. These diversified funds give you broad representation of the whole asset class you are trying to get exposure to, while eliminating the stock specific risk. We are not likely to invest in the newest Solar Energy Company Equity Fund with 10 stock positions, for example. We don’t believe in taking any risks (such as stock specific risk) that you will not get paid for in higher expected return.Liquid. We like investments that you can sell in one minute or one day if you decide to do so, and those which you can sell at or very close to the prevailing market price. With liquid investments you always (daily) know the exact price and value of your investments. All of the investment funds we recommend meet this standard. We don’t like investments which you are locked into for years without the ability to get your money back at all or without paying large exit fees. Examples of illiquid investments would be hedge funds, private equity funds, annuities, private company stock, tiny publicly traded stocks, startup company stock or debt, illiquid obscure bonds, structured products, some life insurance “investments,” private real estate partnerships, etc. We prefer investment funds that have been around for some time, are large in size, and have high average daily trading volumes.Simple. We prefer investments that are simple, transparent, and easy to understand. If you don’t understand it, don’t invest in it. All of our investments are simple and transparent; we know exactly what we own. Complicated investment products are designed in favor of the seller, not the buyer, and usually have high hidden fees. Examples of complicated and non-transparent investments that we generally avoid are hedge funds, private equity funds, structured products, some life insurance “investment” products, variable annuities, private company stock, startup company stock or loans, etc. “Make everything as simple as possible, but not simpler.” -Albert Einstein.We believe most investors should have the majority of their portfolio invested in things that have these five excellent characteristics. By doing so you will avoid plenty of mistakes, negative surprises, and risks along the way. In addition, we believe your after tax investment returns will likely be higher over long periods of time. Of course not every smart or good investment will have all of these characteristics. For example, income producing real estate property is illiquid (and often not diversified) but can be an excellent long-term investment if purchased and managed properly. Owning your own business is illiquid and not diversified but can be an excellent way to build wealth as well. We believe these five investment characteristics become even more important as you enter retirement, since at that point you may be more focused on reducing risk and preserving your wealth than building it, and you may need the liquidity to spend and gift part of your wealth during retirement. These five excellent investment characteristics can be a good screening device for possible investments and good factors to think about when investing.

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Using a Credit Card For Rebuilding Credit

How often have you seen the advertisement online or in your mailbox telling you how you should apply for their credit card to repair your credit? The advertisements are right to some extent; credit cards can help you when you are trying to repair your credit, if used correctly. The problem is that most people try to repair their credit with horrible credit cards while using the same spending habits that caused their bad credit to begin with.A large majority of the people who set out to repair their credit, with the aid of a credit card, do so with the wrong credit cards. There is a right way, and a wrong way to repair your credit and using a credit card is only one small part of the process. We monitor the applications and approvals of credit cards across the web that are designed and marketed for those seeking to repair their credit. The overwhelming majority of the cards that people are applying for are going to hurt their credit, not help it.The correct way to use a credit card to repair your credit is not to use it. People that are recovering from bankruptcy or other credit problems need to face the fact that they aren’t going to get a good credit card right out of the gate. Conceding this fact, we must now begin to pick the best of the worst credit cards in which we can use to re-establish our credit. The main thing to be aware of is that you are getting a credit card to help to restore your credit, not necessarily to use it. This leaves us with two options: secured credit cards and unsecured credit cards.Most people opt for the unsecured variety, which in my opinion is a mistake. Most unsecured credit cards for bad credit are going to hit you with a lot of front loaded fees in lieu of making you put down a deposit. You can expect to pay anywhere from 50$ to $75 up front for your annual fee for starters. Then, some cards have other up-front fees like a monthly maintenance fee, account processing fees and some even charge an application fee. All in all, up front fees could be around $150 on a card that only gives you a $300 limit.If you know you are going to have high fees and a low credit limit you should give serious thought to getting a secured credit card with lower rates and fees. Think about it, if you have to pony-up $300 for a deposit, at least all of the money would be yours and you would still have the $300 limit. Also, using a secured credit card gives you the ability to raise your own credit limit, which strengthens your credit. Used correctly, a secured credit card will cost you less, save you on fees and act as a savings account for you.As you may know, secured credit cards allow you to raise your credit limit by making additional deposits. If you get your secured card, never use it, and make a $100 a month payment to that card for one year you will have a credit card with a $1500 credit limit. This looks a lot better to someone who looks at your credit than a $300 limit. Loan officers and underwriters have no way of knowing whether a credit card on your credit report is secured or not, unless it has a $300 balance.What you definitely do not want to do is use your credit card. Most people are unaware that it makes no difference in your credit score whether you use the credit card or not. In fact, if you do use your credit card and exceed 35% of your credit limit, your credit score will begin to deteriorate. The best credit reference on a credit bureau is the one that never has to be touched, it shows restraint. Think about it, having a secured card allows you to pay fewer fees, dictate your own credit limit, build a savings account and helps you to rebuild your credit. This is definitely the best, and least expensive, way to go in my opinion.

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