Saturday, 18 October 2014

Beyond earnings, buybacks to give market support


Man carries an umbrella in the rain as he passes the New York Stock Exchange
A man carries an umbrella in the rain as he passes the New York Stock Exchange October 16, 2014. REUTERS/Brend
NEW YORK (Reuters) - It is a tossup whether the market found a bottom this week, but bulls could find some support as corporations, mostly on the sidelines as the market tumbled, step up their stock purchases in the coming weeks.
The equities selloff had its climax on Wednesday afternoon when the S&P 500 set its low for the week as concern over the global economy, conflicting views on the timing of the next policy move by the Federal Reserve, and headlines about the Ebola virus made investors even more skittish.
One factor that could have accelerated the decline was that many U.S. companies were out of the corporate repurchase market as they headed into earnings season.
"We are now in a blackout period so companies have been precluded from conducting tactical buyback activity that has supported the equity market during sell-offs in the recent past," said Goldman Sachs in a note earlier this week.
October has been particularly quiet for buybacks by U.S. companies, with about $1.7 billion in stock repurchases announced or completed so far this month, compared with about $250 billion during the first nine months of the year, according to Thomson Reuters data.
The recent market decline could give many companies the opportunity to buy back stock at bargain prices. On Thursday, 605 New York Stock Exchange issues hit 52-week lows, the most for a single day in three years, while just 21 hit 52-week highs. The number of lows fell to 153 on Friday.
"If you truly believe your prospects are bright and you'd like to return capital to long term holders of your stock, it is an excellent time to buy back shares," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.
"It would seem stupid to let this opportunity pass."
November buybacks would by no means be a novelty. Goldman Sachs data show that, in the last seven years excluding 2008, November accounted for about 14 percent of the yearly buyback activity, the most for any month. About 8 percent of buybacks happened in October during that period and 10 percent in December.
The market is entering the busiest part of earnings season, with results due from 128 S&P 500 companies, including six Dow components.
"Next week is one of the busiest we have, so that unlocks a lot of buyback programs after that's over," said Art Hogan, chief market strategist at Wunderlich Securities in New York.
He said the impact of those post-earnings buybacks has been consistent in the past years as "companies have been buying stock pretty aggressively."
If buying ahead of what could be a good opportunity for companies themselves to purchase their stock is not a good enough reason, fundamentals are also on the bulls' side.
Earnings for the S&P 500 are now forecast to have risen 6.9 percent in the third quarter, up from last Friday's 6.5 percent estimate, while sales growth for the quarter is estimated at 3.8 percent, Thomson Reuters data showed.

(Reporting by Rodrigo Campos. Editing by Andre Grenon)
Culled Reuters in Yahoo

Friday, 17 October 2014

10 Calculated Risks That Lead To Startup Success-Martin Zwilling


The challenge is to avoid the bad risks, while actively seeking and managing the smart risks. There are no guarantees in business, but it pays to learn from the experiences of entrepreneurs and business experts who have gone before you. As a long-time mentor to entrepreneurs, here is my collection of smart risks that investors and I look for in new startups:
  1. Focus on a tough customer problem rather than a fun technology. Investors hate technology solutions looking for a problem, due to the high risk of no customers. If the customer need is obvious and large, the calculated risk is in the quality of your solution, your team, and marketing. These are risks that can be mitigated with the right resources.
  2. Schedule frequent updates to your solution to maintain growth. Assuming that you can quickly recover after competitors kill your cash cow is not a smart risk. You need a plan to regularly obsolete your own offerings, with continuous innovation, before customers send you negative messages. It’s hard to recover from a tarnished image.
  3. Plan to deliver a family of products, rather than a one-trick pony. Even a great initial product, with no follow-on, won’t keep you ahead of competitors very long. A smarter risk is to build a plan, with associated greater resources, that will put you in position to expand your product line and keep one step ahead of competitors.
  4. Implement a modern real business model. Providing everything free, and growing users to the max for years, like Twitter TWTR +2.01% and Facebook, is a high risk approach requiring deep pockets. Risk is more manageable with subscriptions and even freemium pricing. Even non-profits need revenue to cover their costs, and continue to provide services.
  5. Find a strategic partner to accelerate growth. Everyone wants to forge ahead all alone, and kill every competitor in sight. Almost always, risks are more predictable when you use coopetition for access to new customers, economies of scale, and shared resources. Finding win-win deals is a manageable risk, versus a battle with one winner.
  6. Use metrics to measure results of marketing initiatives. Too many entrepreneurs put all their resources in one big make-or-break effort they can’t measure, or they count on word-of-mouth and viral marketing, which are totally unpredictable. I like marketing plans that come from both inside and outside the box, but have milestones and measurements.
  7. Recruit the best team members and provide incentives. Trying to save money by recruiting family members, or hiring only interns, is a bad risk. Great team members may take more time to find, and cost you stock options, but a qualified and highly motivated team that stretches your budget is a good calculated risk.
  8. Build your business with minimum outside funding. More money is not more likely to solve your problems or reduce your risk. Investors know that startups with too much money fail just as often as those with not enough. Strategically, you need a plan to survive through organic growth, with outside funding to effectively accelerate scaling.
  9. Don’t rely on conservative forecasts to reduce risk. Investors don’t fund conservative forecasts, nor wildly optimistic ones, since both imply a lack of commitment or homework. Opportunity and revenue projections based on deep market and customer analysis are a smarter risk. Measurements and business intelligence along the way also mitigate risk.
  10. Be a leader rather than following in the footsteps of another. Many entrepreneurs think they can reduce and predict risk by emulating previous winners like Google  and Twitter. But stepping into a crowded space to steal customers is more risky than attracting new customers looking for a solution. Customers like leaders, not followers.
The risks you want to take are the ones that you planned for in your resources, set up metrics to measure, and manage on an ongoing basis. All the rest are bad risks, including problems you didn’t anticipate, competitors you didn’t know about, and customer expectations that you can’t meet.
An age-old measure of startup health is how much time top executives spend on containing bad risks, versus proactively exploring new risk opportunities. If the majority of your time is in recovery mode, your whole startup is likely a bad risk.

Source Forbes

Will Medical Expenses in Retirement Send You to the Poor House?-Eric McWhinnie

Source: Thinkstock
A successful retirement has numerous meanings depending on personal preferences, but good health often serves as the foundation. Unfortunately, the majority of Americans have more than a few minor cracks in their retirement plans when it comes to affording medical expenses.
Saving money for health-related costs in retirement appears to be stuck in the waiting room. According to a new survey from the AARP, 55% of working Americans older than 50 believe they will not have enough money for health care as they reach retirement, and 38% say they haven’t saved anything for such expenses. While almost 70% believe they should have started saving at age 35 or younger, only 28% actually did so. Making matters worse, 44% do not have any plans to start saving in the future.
“Our survey shows that Americans haven’t planned enough for health expenses in retirement,” said AARP Vice President of Financial Security Debbie Banda in a press release. “Even though these costs can have a significant impact on retirement savings, families and individuals often struggle to save what they need because they are paying other necessary expenses or helping to support other family members or loved ones. We hope that we can help people of all ages get a better handle on these expenses with AARP’s free Health Care Costs Calculator.”
While Medicare only covers about half of health care costs, it was the most commonly reported strategy for affording medical expenses in retirement. In order to account for financial shortages, 57% of workers 50 and older plan to work past age 65, including 18% who believe they will never retire. Workers age 60 and older (24%) are more likely than workers age 50 to 59 (14%) to say they will never retire. The average retirement age is currently between 62 and 64 years old.
Working past age 65 can help improve your finances, but it’s a risky strategy, given that your future health status and job opportunities are unknown. Medical bills are such a burden to Americans that FICO, the nation’s most popular credit score provider, is changing its calculations so medical collections will have a lower impact on credit scores, making it easier for consumers to obtain loans. Earlier this year, Experian said more than 64 million Americans had a medical collection on their credit report.

Source wallstreetcheatsheet

Oil Price Decline Opens Window for Subsidy Removal, Increased Savings

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2801F01.Ngozi-Okonjo-Iweala.jpg - 2801F01.Ngozi-Okonjo-Iweala.jpg
Dr. Okonjo-Iweala, Minister of Finance

•  Trillions of naira could be ploughed back to govt revenue
• Cash-strapped states to benefit
• Okonjo-Iweala warns about effects of falling crude price

As oil prices continue to make their descent and are expected to fall below $80 a barrel, oil market analysts have called on the federal government to seize the window of opportunity provided by the decline to remove the subsidy on petrol and kerosene.

They added that the removal of subsidies on both products would increase distributable revenue to the three tiers of government, especially to cash-strapped states and local governments, from the savings that will be made.

However, under the 2015-2017 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Policy (FSP) submitted by the executive to the National Assembly this week, the federal government has proposed a subsidy budget N971.4 billion for petrol and N250 billion for kerosene for the three years under review.

The market analysts recalled that in January 2012 when the federal government removed the subsidy on petrol, oil prices averaged $113.81 a barrel during the month and $111.67 a barrel for the entire year, making it inexpedient and unpopular for the government to have tampered with subsidies at the time.

While acknowledging that removing subsidies just before the elections might not be politically expedient for the Jonathan administration, they said if the policy is properly handled and the price of petrol drops, it could work out to the advantage of the government.

“With the price of crude oil sliding to almost $80 a barrel, a price parity has been achieved as the price of refined petroleum products would also decline and this gives the government the opportunity to remove the subsidy on petrol and kerosene.

“Already, the price of diesel, which is a deregulated product has started to decline gradually at fuel stations, as importers are buying it a lower price from traders and refiners overseas. This means that prices of other refined products would also fall,” said one analyst.
When his attention was drawn to the fact that the government is proposing N1.167 trillion as its subsidy bill between 2015 and 2017, he said this was too preemptive in the face of lower crude oil prices, which might not rise for a while due to slowing growth in China and rising shale oil production in the US, which are respectively the highest consumers of crude oil in the world.

“As your paper has already reported, Saudi Arabia, the swing producer, is not in a hurry to cut output, neither is Russia, another major oil producer. So we may have to get used to the idea of lower prices for some time to come.

“This is the time the government should capitalise on the opportunity offered by lower oil prices to remove the subsidy burden which has been serially abused by fraudsters, has cost the country trillions of naira and put undue pressure on the naira by fuel importers who constantly need to buy foreign exchange from the Central Bank of Nigeria.

“Besides, with lower crude oil prices, Nigeria’s foreign exchange earnings are bound to drop, but with a lower or zero subsidy bill, the savings can offset the drop in earnings,” he explained.

He also called on the Federation Accounts Allocation Committee (FAAC) comprising finance commissioners of the states and the Federal Ministry of Finance, which has been agitating for the removal of subsidies to increase their campaign now as the timing couldn’t have been better.

Under the MTEF/FSP submitted by the executive, the federal government has also proposed N570 billion for borrowings in 2015 and plans to spend N259 billion on Subsidy Reinvestment and Empowerment Programme (SURE-P) next year.
It also put states' share from the Federation Account during the next fiscal year at N1.675 trillion and local governments' share at N1.291 trillion.

The document also contains N750 billion estimates for debt service and N11.1 trillion as the total federally collectible revenue in 2015.
In a related development, the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, has warned against the effects of falling oil prices and called for increased prudence by the three tiers of government in the management of resources.

The minister, who spoke at the National Council for Finance and Economic Development (NACOFED) conference in Enugu yesterday, also gave an update on the state of the global economy, a subject which she told her audience was extensively discussed at the just concluded annual meetings of the World Bank and International Monetary Fund (IMF), and how it affects the Nigerian economy.

The IMF had lowered its growth projection for the global economy citing increased uncertainty over sluggish growth and stagnation especially in Europe.

Specifically, she spoke about the implication of the decline of the oil price on Nigeria’s economy against the backdrop of other revenue challenges such as oil theft.

She said the executive arm of government had consistently pushed for a lower benchmark price in its discussions with the National Assembly, because price-sensitive country’s like Nigeria which depend on a single commodity like oil for most of their revenue, cannot afford to take things for granted, warning that a steep fall in oil prices could have serious economic consequences.

“We have been preaching prudence in the management of oil revenues because whether the price is high or low, with prudence you can’t go wrong,” she said.

Essentially, the country is facing both price and quantity challenges which deserve serious attention, she said.
The minister, however, added that the cooperation between the federal and state governments had helped the country to cope quite well in spite of the challenges.

She urged both tiers of government to quickly draw up contingency plans to deal with the serious challenges posed by the decline in oil prices on the economy, adding that the federal government would soon announce its own contingency plan to deal with the revenue challenges.

Source -Omololu Ogunmade and Ejiofor Alike This day

3 little mistakes that can sink your retirement-Walter Updegrave



Nest egg

Thinkstock
Big mistakes are easy to catch, but even a small miscalculation may jeopardize your retirement portfolio. Here are three common missteps to avoid.

We think it’s the big mistakes that cost us in retirement, like hiring an unscrupulous adviser or funneling savings into a risky investment that goes belly up. Major errors can certainly hurt. But the smaller seemingly sensible decisions we make without really examining the rationale behind them can also come back to bite us in the…
Assiduous planning is key to a secure retirement, but the effectiveness of plans we make depends on the assumptions behind them. And when you’re making a plan that extends well into the future, as is the case with retirement, even a small miscalculation can take you way off course. Below are three mistakes that may seem minor, but that can seriously erode your odds of achieving a successful retirement. Make sure you’re not incorporating these errors of judgment into your retirement planning.
1. Relying on an unrealistic rate of return. Clearly, the higher the return you earn on the money in 401(k)s, IRAs and other retirement accounts, the less you’ll have to stash away in savings each month to build a sizable nest egg. For example, if you start saving $600 a month at age 30 and earn a 7% annual rate of return, you’ll have $1 million by age 65. Bump up that rate of return to 8% a year, however, and you have to put away only $480 a month to hit the $1 million mark by 65, leaving you an extra $120 month to spend. Earn 9% annually, and the monthly savings required to get to $1 million shrinks to just $385 a month, freeing up even more for spending.
Problem is, just because a retirement calculator lets you plug in a higher rate of return or a more aggressive stocks-bonds mix, doesn’t mean that loftier gains will actually materialize. Shooting for higher returns always involves taking on more risk, which raises the possibility that your aggressive investing strategy could backfire and leave you with a smaller nest egg than you expected. That can be especially dangerous when you’re on the verge of retirement.
For example, just prior to the financial crisis, nearly one in four pre-retirees had more than 90% of their 401(k)s in stocks. A pre-retiree with a $1 million retirement account invested 90% in stocks and 10% in bonds would have suffered a loss in 2008 of roughly 33%, reducing its value to $670,000—enough of a drop to require seriously scaling back retirement plans if not postponing them altogether. No one knows whether recent market turbulence will be a prelude to a similar meltdown. But anyone who has his retirement savings invested in a high-octane stocks-bonds mix, clearly runs the risk of a experiencing a significant setback.
A better strategy when creating your retirement plan is to keep your return assumptions modest and focus instead on saving as much as you can. That way, you’re not as dependent on investment returns to build an adequate nest egg. To see how different savings rates and stocks-bonds mixes can affect your chances of achieving a secure retirement, check out the Retirement Income Calculator in RDR’s Retirement Toolbox.
2. Factoring pay from a retirement job into your planning. It’s almost become a cliche. Virtually every survey asking pre-retirees what they plan to do in retirement shows that the overwhelming majority plan to work. Indeed, a recent Merrill Lynch survey found that nearly three out of four people over 50 said their ideal retirement would include working. Which is fine. Staying connected to the work world in some way can not only offer financial benefits, it can also keep retirees more active and socially engaged.
It would be a mistake, however, to factor the earnings you expect to receive while working in retirement into your estimate of how much you have to save. Or, to put it more bluntly, you’re taking a big risk if you assume that you can skimp on saving because you’ll be make up for a stunted nest egg with money from a retirement job.
Why? Well for one thing, what people say they plan to do in 10 or 20 years and what they end up doing can be very different things. You may find that the eagerness you feel in your 50s to continue to working may fade as you hit your 60s and 70s. Or even if you wish to work—and actively seek it through sites like RetiredBrains.com and Retirementjobs.com, it may not be as easy as you think to land a job you like. Maybe that’s why the Employee Benefit Research Institute’s Retirement Confidence Survey finds year after year that the percentage of workers who say they plan to work after retiring (65% in the 2014 RCS) is much higher than the percentage of retirees who say they have actually worked for pay since retiring (27%).
So when you’re making projections about income sources in retirement, keep work earnings on the modest side, if you factor them in at all. And don’t fall into the trap of believing you can get by with saving less today because you’ll stay in the workforce longer or rejoin it whenever you need some extra cash in retirement. Or you may find yourself working some type of job in retirement whether you like it or not.
3. Taking Social Security sooner rather than later. Although a recent GAO report found that the percentage of people claiming Social Security at age 62 has declined in recent years, 62 remains the single most popular age to begin taking benefits, and a large majority still claim benefits before their full retirement age. But unless you have no choice but to grab benefits early on, doing so can be a costly mistake.
One reason is that for each year you delay between 62 and 70, you boost the size of your benefit roughly 7% to 8%. You’re not going to find a low-risk-high-return option like that anywhere else in today’s financial markets. More important, waiting for a higher monthly check can often dramatically increase the amount of money you receive over your lifetime. That’s especially true for married couples, who can take advantage of a variety of claiming strategies to maximize their expected benefit.
For example, if a 65-year-old husband earning $90,00 a year and his 62-year-old wife who earns $60,00 claim Social Security at 65 and 62 respectively, they might receive just over $1.1 million in today’s dollars in joint benefits over their expected lifetimes, according 401(k) advice firm Financial Engines.
But they can boost their estimated joint lifetime benefit by roughly $177,000, according to the Social Security calculator on Financial Engines’ site, if the wife files for her own benefit based on her work record at age 63, the husband files a restricted application for spousal benefits at 66 and then switches to his own benefit based on his work record at age 70.
Although you may not think of it this way, Social Security is, if not your biggest, certainly one of your biggest and most valuable retirement assets. And chances are you’ll get more out of it by taking it later rather than sooner and, if you’re married, coordinating the timing with your spouse.
Yahoo finance

Thursday, 16 October 2014

Ebola domain on sale for $150K: Good business or ghoulish?-Nicole Duignan



The Washington Post is calling Jon Schultz a “merchant of disease.” The Las Vegas businessman owns the domain name Ebola.com, and now he’s selling it for $150,000.
Schultz’s company, Blue String Ventures, reportedly purchased the domain name in 2008 for $13,500, and also owns other disease-related domain names such as birdflu.com and H1N1.com. Schultz is quoted as saying the site is getting 5,000 page-views a day and he thinks the price increase is more than fair.
Yahoo Finance editor in chief Aaron Task says, although distasteful, Schultz has the right to sell the domain name. “We live in a capitalistic society, he bought it legally and he’s trying to sell it legally…I don’t see what the outrage is about this.”
Schultz declined Yahoo Finance’s request for an interview and expressed his displeasure with the Washington Post article. In the comments section on the paper’s website, Schultz claims he was misquoted and refutes the idea that the domain name would somehow benefit the medical community, writing “It is just a domain name, not a miracle cure.”
The site itself is limited, featuring a link encouraging donations to Doctors Without Borders via their website. It has a few news articles posted to it but Task feels Schultz is missing an opportunity. “He could make this the news destination for Ebola stories, sell ads against it, and probably make a couple of thousand dollars, maybe not $150,000…if it’s about a money making venture, I think he’s thinking about it in too limited a way.”
Task believes that the government or a company such as hazmat suit makers Lakeland Industries could potentially benefit from owing this domain name; “No one calls Lakeland (LAKE) speculators ‘merchants of disease.’” he notes. Aiming to profit during a crisis is nothing new; companies such as Lockheed Martin (LMT) and Boeing (BA) make billions of dollars in profits in the business of war. “
A second healthcare worker in Dallas has been diagnosed with the Ebola Virus after providing care to Thomas Eric Duncan, who died from the disease last week. This is the second person-to-person transmission so far in the U.S.. Both are healthcare workers who were exposed caring for Duncan, who came to the US after contracting the disease. “To me the real outrage is that the Dallas nurses weren’t given the right instructions, that this guy was sitting in the emergency room for a long period of time and not quarantined” says Task.
The World Health Organization says over 8,000 people have likely been infected with the disease and over 4,000 to have died so far. The Center For Disease Control calls this Ebola Outbreak, which began in West Africa but has spread to seven counties, the largest in history.

Yahoo celebrity

Heritage Confirms Full Payment For Enterprise Bank-Bukola Idowu

heritage bank
Heritage Bank’s investment arm, HBCL Investment Services told LEADERSHIP last night that it had paid the 80 per cent balance of N44.8 billion into the account of AMCON.
The bank confirmed the payment through its public relations agency, PR Redline. Lekan Isola, managing director of PR Redline, who spoke with LEADERSHIP in a phone interview confirmed the transfer of the balance into AMCON’s account from Heritage’s First Bank account.
AMCON’s spokesperson however told LEADERSHIP as at press time yesterday that the bad bank’s account was yet to be credited, although he added that transfers could take up to midnight to reflect.
The deadline had been extended by two days form the initial date of Monday, October 13 to Wednesday, October 15 to make up for the two days public holiday to mark Muslim festival, Eid-el-Kabir.
HBCL’s investment arm had emerged the preferred bidder for Enterprise Bank last week 15 months after the bank had been put on sale, and had signed the Share Purchase Agreement (SPA) with AMCON, paying off the initial deposit, two days before the September 21 date.
Heritage Bank, former Societe Generale Bank of Nigeria, had been announced as the preferred bidder over Fidelity Bank and 22 other interested investors by AMCON.
Heritage Bank bought the bank under its investment subsidiary, HBCL Investment Services Limited and would now acquire the entire issued and fully paid up ordinary shares of Enterprise Bank Limited, following the approval of the board of directors of AMCON.
The statement by AMCON noted that the emergence of HISL and Fidelity Bank as the preferred and reserve bidders respectively resulted from a rigorous and competitive bidding process, coordinated by its financial and legal advisers, Citigroup Global Markets Limited and Vetiva Capital Management Limited and G. Elias & Co.
Enterprise Bank commenced operation in August, 2011, as a full-service commercial bank with a national banking license, after it was nationalized and acquired by AMCON. The Bank operates via a sizeable distribution network of over 160 branches spread across major markets and commercial centres in Nigeria, and with over 177 ATMs, 57 Cash Centres and 2,000 POS terminals.

Culled from Leadership

Buhari Declares for Presidency, Says Boko Haram is Ungodly-By Chuks Okocha and Onyebuchi Ezigbo

Muhammadu-Buhari-0509.jpg - Muhammadu-Buhari-0509.jpg
 Major-General Muhammadu Buhari (rtd)

• Presence of APC governors rattles Atiku
•PDP responds, welcomes former head of state to presidential race
Former military Head of State and three-time presidential contender, Major-General Muhammadu Buhari (rtd), Wednesday formally declared his intention to enter the presidential race on the platform of the All Progressives Congress (APC), promising to fight corruption and wipe out Boko Haram, which he described as “ungodly”.
Also Wednesday, THISDAY gathered that one of the presidential aspirants and former vice-president, Alhaji Atiku Abubakar, might have been rattled by the presence of APC governors at the Buhari declaration rally.
But a source at the Atiku media office has said Atiku's campaign team explained that the reason more leaders of the APC attended the Buhari declaration rally in comparison to the former vice-president’s, was because they were not invited so as not to compromise their neutrality.
Buhari, who was accompanied to the podium by four APC governors from Lagos, Rivers, Edo and Nasarawa States, said he was putting himself forward to contest for the party's presidential ticket.
“This is an occasion to celebrate our efforts and to resolve to continue until victory is won. I humbly wish to present myself before you, before all of Nigeria and before God seeking to be elected as APC’s presidential candidate,” he said.
The former head of state also used the opportunity to highlight his priority areas if elected president.
Among the areas, which Buhari said his government would give priority to, were the protection of lives and property, pursuing economic policies for shared prosperity and youth employment.
He said proper attention would be given to the provision of quality education for development, modernity and social mobility, agricultural productivity to ensure food security, adding that he would ensure that millions are out of poverty.
Other areas, which Buhari pledged to focus on, were the revival of the industries to generate employment, developing solid minerals exploitation, restoring honour and integrity to public service, and tackling corruption.
Lastly, the former head of state said he would respect the constitutional separation of powers between the executive, legislature and judiciary and respect the rights of citizens.
Buhari did not spare the Peoples Democratic Party (PDP), which he said had presided over the country’s decline.
“Since 1999, PDP has presided over our country’s decline. Nigeria in my experience has never been so divided, so polarised by an unthinking government hell bent on ruling and stealing forever whatever befalls the country.
“Interference in the form of rigging which PDP government has practised since 2003 is the worst form of injustice – denying people their right to express their opinions. Whether they like it or not, injustice cannot endure,” he said.
Buhari paid tributes to Nigerians who have endured all kinds of difficulties, especially those facing the conflict and marauding insurgents in the North-east.
While expressing concern over the growing insecurity in the country, Buhari lamented the activities of the marauding murderers in towns and villages and armed robbers on the highways.
He nonetheless commended the Nigerian Armed Forces for their efforts to deal with the insurgency.
“It is everyone’s duty to resolve and help the national effort to overcome these immense challenges. I would like us to place on record our appreciation for the efforts of our Armed Forces under a new leadership and police in confronting these challenges,” he added.
On the economy, he said the situation had continued to deteriorate while the agricultural and the industrial sector had all spiralled downwards.
On the power sector, Buhari said when PDP assumed power in 1999, Nigeria was generating 4,000MW of electricity, however, the situation has worsened.
“When PDP came to power in 1999, Nigeria was generating about 4,000MW of electricity. After 15 years and $20 billion spent, we are generating between 3,000MW and 4,000MW. No failure is more glaring than this,” he charged.
The former National Chairman of the PDP, Chief Audu Ogbeh, who was called to introduce Buhari, said one of the key priorities of APC would be to generate jobs for the teeming unemployed youths of the country.
He disputed the appellation that Buhari is a religious fanatic, saying the former head of state does not in any way manifest religious fanaticism or bigotry, stressing that Buhari could be trusted as an honest and selfless politician.
According to him, Buhari's interest is to come and stabilise the polity and step aside.
While welcoming party members and Buhari supporters to the event, the former governor of Bayelsa State, Timipre Silva, who chaired the organisation of the event, said amongst others that the country's economy needed proper intervention.
According to him, Buhari had shown in his lifestyle and past performance in government that he is the one to proffer solutions to the country’s problems.
Commenting on the notion that Buhari is too old to rule, he said age will not be an issue in the election because Buhari has a lot of experience and integrity to his advantage which other candidates are lacking.
Senator Olorunimbe Mamora from Lagos State also addressed the gathering on behalf of a group known as the National Elders of APC.
He said the wind of change was blowing and that come 2015 “we will have an APC government at the centre”.
He listed the problems of unemployment, poor power supply, decay in the education sector and insecurity as some of the biting problems that an APC government would tackle if voted into power.
Another stakeholder of the party and the Minority Leader in the Senate, Senator George Akume, spoke of the exploits of Buhari while he was the Petroleum Minister where he was able to manage the resources creditably.
A woman leader, Hajia Rabiu Ishaq, on her part, urged fellow women to support Buhari whom she said is the leader they can trust to ameliorate the plight of Nigeria women.
Rivers State Governor Rotimi Amaechi said change was certainly in the air, adding that in the past, the opposition party could not boast of the present number of serving governors at its rallies.
“The governors have agreed to work together for change and whoever wins the party’s ticket, we would all join hands to campaign for him,” he said.
He said only APC could boast of an incorruptible personality like Buhari, adding that about N1.106 billion was spent by Rivers State to control the spread of the Ebola virus, while the president only gave the state a paltry N200 million and accused the federal government of politicising the disease.
He said APC has a firm grip on Rivers, Kano and Lagos States, adding that the party intends to adopt the strategy it used to win in Osun State during the 2015 general election.
Speaking on the failings of the country in the power sector, Amaechi said President Goodluck Jonathan had failed in his promise to deliver stable power supply in the country by 2014.
Buhari was driven into the arena at exactly 12.25 pm in an open roof sports utility vehicle (SUV) from which he waved to his supporters.
His frenzied supporters ran alongside the motorcade conveying him till he went into the VIP stand.
As early as midnight Tuesday, all the roads leading to the Eagle Square, Abuja, venue of the declaration rally, was swarmed with hundreds of his supporters who arrived the capital city in several convoys of buses.
Security men and party officials had a hectic time controlling the enthusiastic and near-fanatical youths who took over the entry points to the covered stands, waving and displaying campaign banners. The ecstatic supporters drummed and danced around the arena endlessly till the end of the programme.
Reacting to the calibre of personalities that graced Buhari's declaration, a source in the Atiku media office said the former vice-president viewed the presence of some governors of APC as something that may endanger their neutrality before the presidential primary
The source said Atiku had deliberately avoided extending invitations to the leaders of APC and the party's governors “because he didn't want to compromise their neutrality”.
He explained that since the party’s national leaders and the governors did not endorse any presidential aspirant, Atiku had no need to invite them to his declaration, which might send the wrong message.
Elaborating further, the source said since the party’s national leadership made it clear that they would create a level playing field for all presidential aspirants of the party, inviting any of them to Atiku's declaration could have led to the perception that they had endorsed him.
To avoid that controversy, the source said Atiku chose to make his declaration essentially a youth event, because they are the main victims of poverty and unemployment, critical agents of change and the focus of his agenda on job creation.
Another reason the source gave was that Atiku did not want to turn the event into a campaign rally as opposed to a symbolic declaration of intent to seek the country’s presidency in 2015.
Some of the leaders of APC who were at the event included Lagos State Governor Babatunde Raji Fashola, Edo State Governor Adams Oshiohmole, Nasarawa State Governor Tanko Al-Makura, and former Speaker of the House of Representatives, Aminu Bello Masari.
Others were the National Vice-Chairman of APC (North-east), B.D Lawal, Senator Oluremi Tinubu, Senator Ahmed Yerima, Senator Abba Buka Ibrahim, Silva, Muoghalu, Sharon Ikeazor, Alhaji Mustapha Habib, Osita Okechukwu, Hajia Hadiza Usman of Bring Back Our Girls (BBOG), Tony Momoh, Prof. Tamuno David-West, Alhaji Abdullahi Adamu, Oluwatayo Oluwa and Rotimi Akeredolu.
However, his rivals for the ticket of APC – Kano State Governor, Rabiu Kwankwaso and Publisher of Leadership Newspaper, Sam Nda-Isaiah were absent from the vent.
Also reacting on Buhari’s entry into the presidential race, and his derision of the ruling party, the PDP said yesterday that it was pleased to welcome him to the 2015 contest, but debunked his assessment of the party and the Jonathan administration.
PDP said in a statement by its National Publicity Secretary Olisa Metuh: “While we congratulate and wish him well in his ambition, we have noted some distortions and misrepresentation of facts in his speech and consequently wish to put the record straight.
“According to General Buhari, Nigeria was generating 4,000MW of electricity in 1999 but has today fallen short of that capacity under the PDP.
“The fact remains that as at May 29th 1999 when PDP took office, Nigeria was generating 1,600MW.  We urge Nigerians to fact-check this. Corroboration of this figure can also be sought from the World Bank, the IMF and multiples of other authoritative sources.
“In contrast, it is common knowledge that under the transformative leadership of President Goodluck Jonathan, Nigeria now generates 4,568MW of electricity, triple what was generated in 1999.
“Again, General Buhari stated that the growing economy which the PDP inherited in 1999 has been destroyed within 15 years in office. This also does not represent the reality on the ground.”
PDP said these facts could be verified from the handover notes of the military as well as from the World Bank and International Monetary Fund (IMF), adding that at the time, Nigeria was the third largest economy in Africa, behind South Africa and Egypt.
PDP also said the nation was rated number 48 in the world in terms of its foreign reserves which stood at $3.6 billion while its foreign debt stood at $36 billion.
Metuh said it was incontrovertible that in the last 15 years of PDP leadership, especially the last three years of dynamic and purposeful administration provided by Jonathan, Nigeria's economy has become the largest in Africa and the 26th largest in the world.
“Similarly, our foreign reserve now stand at over $39 billion and our foreign debt reduced to less than $7 billion from $36 billion,” he said.
Besides, the ruling party took on Buhari on Nigeria’s agricultural sector, saying his statement did not reflect the reality on the ground.
“Verily, the fact remains that in the last 15 years under the PDP, indeed, in the last three years of vigorous application of the Agricultural Transformation Agenda, there has been an unparalleled government input in agriculture, thereby pushing production to an all time high. Moreover, Nigeria food importation has reduced from N1.1 trillion in 2010 to N684 billion.
“While we understand that the APC is hell bent on using every opportunity at its disposal to discredit the PDP in its quest for political control, we urge their handlers to always cross-check their facts and stop making a mockery of respected Nigerians in the mould of General Buhari.
“Finally, the PDP again welcomes General Buhari into the presidential race and hopes that in the future, he will not allow himself to be further embarrassed in the course of his campaign,” the PDP said.

Culled from This day

Wednesday, 15 October 2014

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Finding Your Retirement State of Mind-Dave Bernard


Retirement requires very different skills from the working world.

Man with clipboard in charge of a food donation center.
B
Every once in a while you meet a senior who seems to have retirement figured out. They appear to be genuinely happy with their state of affairs and making the most of each day. When you ask about their retirement experience they shine a genuine smile and are happy to regale you – often at length – about how wonderful it is to be in their shoes. Their happiness is infectious and you may find yourself caught up in their joy. Although it is safe to assume not everything is perfect in their world, their overall outlook is positive.
My wife and I recently spent a weekend in Carmel Valley trying to escape the latest Bay Area heat wave. While dining in a shaded patio beside a burbling fountain decorated with playful water nymphs we found ourselves seated next to a retired couple. This couple had retired to the Carmel area more than 15 years ago. Before we even got our menus they began sharing their years together as a retired couple along with just how happy they were to be retired.
The best part was how excited and animated they became reliving the moments and experiences they enjoyed along the way. Between extensive travels abroad and heavy involvement with the local community they painted a vivid picture of a fulfilling and exciting retired life. Each new arrival to the restaurant bid them hello and everyone in the room seemed to know them. This retired couple seemed to be equal parts proud and happy to be an integral part of their local community.
Finding the right retirement state of mind can help you realize a happy and fulfilling second act. Here are some helpful pointers I gleaned from our recent encounter at the restaurant:
Become involved in something that matters. Carmel Valley is compact, but like any small community you can find a lot going on if you know where to look. Our new friends recommend we identify what most interests us personally. For example, I love spending time at the ocean, so why not see if I might contribute a day or two each week working at Point Lobos National Park or the Aquarium on Cannery Row. It is not about the money but rather staying engaged doing something you like. My wife would like to help out the significant senior population in the area and so might offer to deliver food or drive those who would otherwise remain homebound. Local clubs, societies and organizations are always looking for volunteers to assist during special events. There are a wide variety of options when it comes to possible areas to contribute your time. In fact, we have heard from more than one couple that one of the biggest problems among the newly retired is suddenly finding yourself committed to doing too much.
Don’t limit your possibilities. Just because you have not done something in the past does not mean you cannot give it a whirl now. With time to do what you want, retirement offers a second chance to try new things. A little experimentation might uncover a hidden passion or lead to an exciting new undertaking. Consider your retirement a blank chalkboard you are free to fill with whatever strikes your fancy. Try not to be overly picky on the first pass. You can make adjustments later. And if after your initial investigation you find you don’t like a particular selection, just pull out your handy eraser to make room for something else.
Get to know your neighbors. Living in the frantic Bay Area with everyone enmeshed in all-consuming careers is not the most conducive environment when it comes to getting to know the people on your block. Sure, we recognize one another and say “hi” when we pass on the street. But at least for us it has been difficult to build close relationships. In retirement, you will no longer be time constrained and have the chance to get to know those people next door and across the street. Who knows what common interests you may share. Neighborhoods used to be much more closely knit and supportive. With a little time and effort maybe you can bring a little of that back into your life.
Stay active. There is a time and a place to rest and relax during retirement. But it is also important to have an active life that allows you to stay involved with living. You cannot experience new things tucked into the same day to day existence. Our restaurant friends seemed to be in perpetual motion. And when they did take a break they were planning their next adventure. Just how active you want to be is up to you and your personal tastes. But try not to deprive yourself of that satisfied feeling at the end of the day after you have accomplished something that matters or tried something new.

Culled from US News

BREAKING: Maku, Wike, Obanikoro, others resign as Ministers-Talatu Usman


maku_labaran1
Seven ministers in President Goodluck Jonathan’s cabinet have resigned their positions.
Those who resigned are Ministers of Information, Labaran Maku; Trade and Industry, Samuel Ortom; State for Education, Nyesom Wike; and State for Defence, Musiliu Obanikoro.
Others are Ministers of Labour, Emeka Wogu; Health, Onyebuchi Chukwu; State for Niger Delta, Dairus Ishaku.
The ministers quit their posts to pursue their political ambitions, the government said.
The ministers, whose departure had long been expected, will contest gubernatorial elections in their respective states.

Culled from Premium Times

Apple and Facebook will cover the cost of freezing female employees' eggs-Mariella Moon

A technician opens a vessel containing w
Apparently, Facebook has been offering to cover the costs of egg freezing for female employees since January 1st this year, and you know who's following in its footsteps? Apple, which plans to offer the same service to its employees starting in January 2015. According to NBCNews, these two might just be the first employers willing to pay for the entire cost of egg freezing for non-medical reasons, which means everyone qualifies for the benefit, not just cancer patients for whom the procedure was originally intended. Most likely, employers hope to encourage female employees to stay with them even during the last few years most women can conceive (late 30's to early 40's), as those are also the years one typically takes on senior positions. They're probably also betting on the move to save them recruiting and hiring costs in the long run, while keeping top talent around and promoting gender diversity at the same time.
Egg freezing, as you might have guessed, allows women to store their egg cells until they're ready to get pregnant. These eggs taken during a woman's younger years have better chances of being fertilized later on, though the procedure doesn't guarantee a 100 percent success rate. Harvesting around 10 eggs cost around $10,000, with storage adding $500 per year to that amount -- both Facebook and Apple are willing to cover up to 20 grand.
While we're sure there are many women who'd love to take advantage of the opportunity, this move will surely face a lot of criticisms. Some might view it as a ploy to make women sacrifice their childbearing years all for the sake of climbing up the corporate ladder. Others might be worried that having this option readily available places additional pressure on women to put having children on hold. Harvard Law School professor Glenn Cohen also raised a valid point in a blog post last year, where he asked: "...would [female employees] take this as a signal that the firm thinks that working there as an associate and pregnancy are incompatible?"
Still, egg freezing advocates believe it's the right time to offer the procedure as a perk at work, as more and more people become open to the possibility of going through it. According to the founder of Extend Fertility, which promotes egg freezing in the US, more women now also view it as a means of empowerment and not just their last chance to have a child.

Culled from Engadet and [Image credit: AFP/Getty Images]

Customer Service Complaint Website Launches in Nigeria

  Customer service is taking a new shape imagine when experience a fantastic or horrible customer service. You wonder  what can I do , whom I do complain to, is it  Supervisor or the Manager or will I tell my friends.

Experts will always say customer is king, a new company dedicated in  bringing issues of customer service, has been launched. when you feel dissatisfied with the quality of customer service.

simply log on to www.reportam.com.ng and post your report for all to see.
I think with this development,  companies may be logging in to see the quality of customer service rendered to their customers.






Survey Says Teenagers Prefer Instagram Over Facebook-Amit Chowdhry


Of the teenagers that were surveyed, 73% said that their next phone would be an iPhone and 19% will be getting an Android. The iPhone figure is up from 67% and the Android figure is down from 24% as of April. Currently 67% of the surveyed teenagers own an iPhone, up from 61% in April. The survey reported that 10% of the teenagers owned a Windows-based tablet and 19% said that their next tablet will be a Microsoft MSFT +0.18% Surface. The Windows tablet numbers are slightly higher than Android tablets and iPad Minis, but still less than the larger versions of the iPad.
Teen Survey / Credit: Piper Jaffray
Teen Survey / Credit: Piper Jaffray
In terms of social media, Instagram’s popularity surged between the spring and fall. The report said that 72% of the surveyed teenagers were active on Facebook as of April, but now it is down to 45%. Instagram usage jumped from 69% to 76%. The results for the other social networks are as follows: Twitter TWTR +0.19% dropped from 63% to 59%, Reddit maintained at 7%, Tumblr stayed steady at 21%, Google GOOGL +0.64%+ dropped from 29% to 12% and Pinterest increased from 21% to 22%. Instagram is the highest preferred marketing channel at 38% compared to Twitter at 34% and Facebook at 21%. Snapchat was placed in the “other” category of the chart below, but the appendix of the report said that the ephemeral messaging app was up from 1% in the spring to 4% now.
Teen Social Networks - Piper Jaffray
Social Network Usage by Teenagers / Credit: Piper Jaffray
Teenagers were not very enthusiastic about the $350 Apple AAPL -1.06% Watch smartwatch device. Only 7% of teenagers said they owned a smartwatch and 16% would be interested in buying an Apple Watch. “The concept of wearing a watch for teenagers is foreign — and I think that’s part of what is reflected in that response,” said Piper Jaffray analyst Gene Munster via Re/code. “The second piece is, it’s still something that people need to hear more about, beyond what Apple has to say about it, before people get interested in it.”
Why is Facebook losing popularity amongst teenagers? Many teenagers are concerned about receiving friend requests from “Generation X” users. Teenagers prefer to communicate with friends without being judged by parents and older users so they are flocking to platforms like Instagram, Twitter, Tumblr and Snapchat.
Facebook knew that Instagram had tremendous potential when it acquired the company two years ago for $1 billion. Instagram hit 30 million iOS users in only 18 months and was downloaded millions of times within 24 hours of launching on Android. The app lets users share photos from their mobile devices with retro image filters. Facebook plans to monetize Instagram by showing targeted image and video ads to users, which is currently being tested with a limited set of partners.
Culled from Forbes

7 money mistakes you shouldn't make in your 50s-Mandi Woodruff

With retirement right around the corner, your 50s are arguably the most crucial years for your finances.
That’s partly because today’s 50-somethings aren’t just dealing with the pressure to save for retirement. The so-called sandwich generation is often saddled with the role of caretaker for not only for their kids but their parents as well.

Nearly half of adults in their 40s and 50s are raising a kid or financially supporting an adult child, while 15% say they’re financially supporting elderly parents as well, according to a Pew study.

The pressure to support not only themselves but their families can leave a lot of room for error. To help you better protect your finances, we tapped financial experts to find out some of the most dangerous money mistakes 50-somethings make today. Here’s what they had to say:

Dipping into your 401(k) to put your kids through college

We all know that college costs are growing wildly out of control, a trend disproportionately affecting middle-class households (too broke to pay for college in cash, yet too rich to qualify for financial aid). Rather than co-signing a student loan on your child’s behalf and taking on more debt, it might make sense to make a penalty-free 401(k) withdrawal to pay for higher education. There’s just one problem with this strategy: Unless you’re expecting a windfall or a cushy promotion at work, how will you ever be able to pay yourself back?

“Often those funds are tough to replenish to appropriate levels,” says Laurie Burkhardt, a certified financial planner in Boston. “There are numerous ways for a child to assume responsibility for an education funding shortfall … However, there are limited ways to fund a retirement shortfall once you reach a certain age and are unable to increase your earnings and savings.”

Rather than bankroll your kids’ college degree, encourage them to work part time, seek out public or community colleges rather than pricier private and out-of-state institutions (unless, of course, they can qualify for financial aid).

Rolling over your 401(k) into an IRA if you retire early

This is such a common mistake for 50-somethings that nearly every financial expert we spoke with pointed it out.

If you decide to retire a bit early, between ages 55 and 59, it may make perfect sense to roll your employer-held 401(k) into an IRA. But the rules for IRA withdrawals are different and you could be shooting yourself in the foot if you’re too hasty to ditch your 401(k).

“If you leave your employer in the calendar year that you turn 55 or older, you can take money out of your 401(k) and not pay a 10% early withdrawal penalty tax,” says Michele Clark, a CFP in Chesterfield, Mo. “This is terrific for people that are younger than 59 1/2.”

But withdrawals made from an IRA before 59 1/2 is subject to a 10% penalty.

“I tell clients that are retiring early (55 to 59 1/2) to keep their 401(k) at their employer until after they turn 59 1/2 to give them flexible access to the money in their 401(k) without penalty,” Clark says.

Letting your kids take advantage of you

In plenty of different cultures, it’s perfectly reasonable for adult children to continue to live under their parents’ roof until they’ve married or can at least sustain a household on their own dime. But if supporting your kids means putting your own retirement in jeopardy, you have to draw a line at some point.

“It starts innocently enough by keeping the... kids on the family plan for the cellphone, but then before most people know it, they are ‘helping’ their adult children with the rent on their new apartments,” Costa says. “If you do this for too long, you can’t easily stop doing it because the kids expect it.”

That doesn’t mean there isn’t a way to support your adult children — or any relative who may need a helping hand, for that matter — and get something in return as well. For example, if they want to move back home while they work at paying down their student loans or finding a job, charge them rent or require them to help out with household responsibilities. Costa gives this advice to all her clients, even if they’re wealthy enough to comfortably support their kids.

“It provides incentive for the [child] to eventually get a place of their own,” she says. “If the parent is exceptionally well prepared for retirement, they can always return the rent money to the kids when they move out and that money can be used to buy or rent a place.”
Hiding your finances from your children

It’s not uncommon for parent-child relationships to shift as parents get closer to retirement age. Those kids who are too broke to afford their own apartment today may be the ones driving you to doctor’s appointments and managing your finances sooner than you think. It’s important to not only prepare for your future —by writing a will, and designating a power of attorney and a health care power of attorney—but to make sure your children know exactly what those plans are.

“Make your decisions ahead of time and let them be known in the form of these legal estate planning documents,” says Kathleen Campbell, a CFP in Fort Meyers, Fla.. “That way, if you are incapacitated or if you die prematurely, you won't have a judge making the decisions for you.”

Your children — or whoever you plan on trusting with your estate plan — should know exactly where to find your documents, whether that means giving them the security code for your office safe or keeping a list of passwords to all of your electronic accounts.

Prioritizing mortgage debt over all other debts

Retiring without a mortgage is one of the most common goals for older workers, but mortgage debt shouldn’t always take priority over other debts.
The average 50-something has $5,347 in credit debt. More than one in ten Americans over age age 50 still have student loan debt, and 20% of those borrowers is in default on their loans, according to a report by the Federal Reserve Bank.
It’s not like your mortgage and credit card debt is forgiven the minute you leave the workforce. Even Uncle Sam won’t hesitate to garnish your Social Security income (up to 15%) to recoup student loan debt or past taxes owed.
“You’d be amazed how many people punch out for the last time at work and waltz home with credit card debts, boat payments, two car payments, timeshare obligations, and a hefty mortgage,” writes Roger Roemmich, chief investment officer for ROKA Wealth Strategists, in his book, “Don’t Eat Dog Food When You’re Old”.

Unless your mortgage rate is greater than 5%, Roemmich advises against pre-paying on home loans. A tax advantage of having a mortgage is that you can always deduct the interest. The same can’t be said for lingering credit debt, which is almost sure to have a higher interest rate anyway.

“Non-deductible debt (i.e., credit cards) should be viewed as very short-term debt and paid off at the earliest possible time,” Roemmich says. “There are very few investments that return enough to suggest investing in lieu of paying off credit card debt.”

Underestimating your health care costs
The average 401(k) balance in the U.S. today may be at a five-year high (just shy of $90,000 at last count), but when you consider health care for the average retiree will cost upwards of $220,000, it’s pretty sobering to realize that so many Americans may be unprepared.  
Because of its high cost, nearly 80% of the cost of long-term care for the elderly is provided by family members. It can cost up to $6,700 a month for standard nursing home care, and unless you’ve either got deep pockets or family members willing to pick up the tab, it’s unlikely you’d be able to afford it without long-term care insurance. Nursing home care isn’t covered by Medicare either.
In her book, “The Charles Schwab Guide to Finances After 50,” Carrie Schwab-Pomerantz says long-term care insurance (LTCI) should be a part of every retirement plan. LTCI is one smart way to protect yourself against costly health expenses after retirement, and the sooner you sign up for a policy, the better. One in four people over age 60 are denied LTCI coverage, according to Bankrate.
The American Association of Long-Term Care Insurane is a great place to find information: http://www.aaltci.org/.

If you already have life insurance, think about adding a long-term health care rider to your existing policy, or buy a fixed or variable annuity with additional long-term care coverage. 

Expecting too much

Christopher Knight, a CFP in Matthews, N.C., often has to work against his clients’ unrealistic expectations for their own financial futures.

“Sometimes clients in their 50s go through late-career crisis, where all that matters is being able to walk away at a certain specified age, let's say age 60,” Knight says. “Unfortunately, too many times clients become mentally fatigued and emotionally blinded at the late-career stage and end up with the unrealistic expectation of retiring at a certain age, when if they look at things objectively are very unrealistic.”

For a sobering dose of reality, sit down with a financial planner and take a hard look at your finances — you might be saving less for retirement and spending more on your day-to-day expenses than you realized.

“They may think they have x, y or z, but when we look at things, they're off a good bit,” Knight says. “A lack of clarity and reality will lead to the wrong decisions that can derail their retirement.”

Culled from Yahoo Finance

YOU CAN PLAY WITH JUST N200

YOU CAN PLAY WITH JUST N200

5 Inventions That Made Average People Millionaires-Erika Rawes



Have you ever watched a commercial for a successful product and thought to yourself: “I should have thought of that!” Some of history’s most successful ideas and inventions are simple, practical things that clever people have turned into something more convenient, efficient, or effective. Take the Qtip, for instance. It’s really only cotton on each end of a stick, but it serves so many useful purposes, and since the 1920s, it has become an essential toiletry for most households. Inventor Leo Gerstenzang was clever enough to turn an existing useful item into something new and unique.
We see it happen all of the time. Just when we think everything has already been thought of, someone comes up with something new and makes millions. Remember the Snuggie? Blankets have been around for ages, and so have robes, jackets, and pajamas, but no one had ever seen a hybrid robe/blanket with sleeves. As of 2011, the Snuggie has brought in an estimated $200 million in profits. Go figure.
There are countless ideas just like the Snuggie. Many of these inventions are created by regular people — housewives, teachers, middle class workers, and students. When Mark Zuckerberg began creating Facebook, he was your typical (albeit highly intelligent) college student. Check out this list of ideas that have made people rich. These are all ideas developed by everyday people. While you’ve probably heard of some of these ideas, a few of them are not as widely known.
By Janette Pellegrini/Getty Images
Janette Pellegrini/Getty Images

1. Carol’s Daughter

Created by: Lisa Price
Price’s — or should we say Carol’s daughter’s — business began in her kitchen. She started making lotions, butters, and creams in her home and sold them to locals. But Price says on her website that customers would continue to ask her about hair care products. So, she listened to her customers and developed a hair care line.
According to an article by The Huffington Post, Price’s company sold around $5,000 or $6,000 worth of products during the early years. Then, in the early 2000s, the company was featured on the Oprah Winfrey Show and sales skyrocketed during that time period, reaching $2.2 million.
More recently, however, rumors of financial trouble have circulated around the Carol’s Daughter name. But in a letter published in Uptown Magazine, Price says she’s still going strong.

Source: AllerMates on Facebook
Source: AllerMates on Facebook

2. AllerMates

Created by: Iris Shamus
Shamus came up with the inspiration for her idea — bracelets and accessories for kids that let others know they have allergies — by observing her own family. According to an article in The Huffington Post, she saw her own son reach for a bowl of nuts, and promptly took the snack away from him. Soon after, she noticed that at her child’s school, it was difficult for the teacher to track all of the children’s allergies, even with them being documented, as teachers have so many children to watch out for each day.
Shamus then conducted a little online research. “Despite the fact that one out of 13 children have food allergies, she couldn’t find any sort of bracelet or necklace that a three-year-old would be happy to wear. And that’s when the determined Mom sat down with a sketchbook,” says The Huffington Post publication.
That’s when her idea was born. She and her son came up with different characters, like Nutso, that could go onto wearable accessories for children. In an interview with Cafe Yak from last December, Shamus says she only invested around $30,000 in her business to start, and things started happening very fast for her. We don’t know exactly how much Shamus is making, but her business is doing very well.
“AllerMates has become the go-to resource for parents looking for easy, effective, and fun content to help teach their kids about their health. In addition, their allergy and other health safety products are sold in over 7,000 locations across the USA including CVS and internationally. Based in New York, Iris and her team design characters create helpful content, answer emails, ship products, and obsess every day about keeping kids safe,” reports Reuters. Recently, AllerMates has partnered with the Wiggles to help teach more and more families about allergies.

By Skip Bolen/Getty Images
Skip Bolen/Getty Images

3. Spanx

Created by: Sara Blakely
Blakely was a fax machine salesperson with $5,000 in her savings account when she came up with the idea for spanx. One night, she went out to a party and, while getting ready, she decided to cut the feet off of a pair of pantyhose so she could be more comfortable at the party, and also look better in her outfit.
After she realized how well her makeshift creation turned out, she knew it was a great idea. Her journey creating Spanx was a long one, though. She fought for her product, calling hosiery mills until someone would work with her. Everything eventually worked out for Blakely, though, and today, her company is a multi-million dollar enterprise.

Source: pillow pets on facebook
Source: Pillow Pets on facebook

4. Pillow Pets

Created by: Jennifer Telfer
It’s a pillow, it’s a pet, it’s a pillow pet! “The idea for Pillow Pets was inspired by my oldest son. He had a particular stuffed animal that he took everywhere with him and he even slept on it until it began to flatten out. That was how I began to form the idea,” says Telfer in an interview with Toy Directory.
Telfer saw success with pillow pets only after she had already tried her luck with another product that did not turn out so well. So, she and her husband did take a loss before gaining with their company CJ Products. Today, the company makes several other successful toys, in addition to their pillow pets.

slap bracelets on facebook
Source: Slap Bracelets on facebook

5. Slap Bracelets

Created by: Stuart Anders
In 1983, high school shop teacher, Stuart Anders, came up with the idea for slap bracelets. Lets face it — this was an amazing idea. These things were everywhere. Kids would have them around their ankles, around their wrists, and even around backpacks and furniture.
An article by The New York Times from 1990 reports that, “Orders are pouring in so fast that Main Street has stopped counting them — it simply weighs them, about 30 pounds a day. The company might post 1990 revenue of $6 million to $8 million compared with $2.5 million last year.”
What ever happened to slap bracelets? Well, after a few injuries and companies producing knock-off slap bracelets made with cheaper materials, the bracelets faded out. But, you still see them sold online and in some discount stores. Similar technology to the slap bracelet is even making its way into the tech arena.

Culled from wallstreetsheetcheat

Read more: http://wallstcheatsheet.com/personal-finance/5-inventions-that-made-average-people-millionaires.html/?a=viewall#ixzz3GC7617Rg