Find a PDF

If as a trader you are aware of how options trading systems work then you can invest in these foreign exchange options to diversify your portfolio. You need to be aware of the changes in spot, volatility, and interest rates when dealing with currency options trading. Options trading systems such as Fenics, Murex, and Superderivates are commonly used to guide traders.

The basic step is to understand what an option is. An option gives you the authority to trade in a stock at a specific price (strike price) in the future. Options allow you to play the stock market in both directions, you can buy even in a bear market and they give you the leverage by spreading your investment across a number of shares. There is a lot of information available online on options trading which you can use to get started.

ETFs are a good idea to consider for options trading, they let you play an entire segment instead of individual stocks this helps to reduce the volatility which gets spread over different players in a sector. Of course, if you find an individual stock bucking the sector trend you are free to exercise your call and put options accordingly.

  Foreign_Exchange_Options.pdf (64.6 KiB, 12 hits)

The present mortgage crisis in America has forced us to consider our options to measure and manage mortgage credit risk. Evidently the mortgage risk was not evaluated properly over a substantial period of time which has led to the US subprime mortgage crisis. Banks all over the world have felt the repercussions with a fall in their mortgage credit quality and performance.

Housing finance in the US is critical to the US economy since it is inextricably to the US financial system. It’s health is important to the US economy. The credit risk of a mortgage depends primarily on the ability of the borrower being able to pay back the promised cash flows in time. This is imperative to keeping the mortgage cycle going. The U.S mortgage system does not carry any prepayment penalties and is thus favorably tilted towards borrowers. However it does present a risk to those who have invested in mortgage-backed securities.

The PDF below was commissioned by the Office of Policy Development and Research. It explains in detail how to

• Understand mortgage credit risk
• Manage mortgage credit risk
• Front-end risk evaluation
• Back-end risk mitigation
• The U.S government’s role in emerging mortgage markets
• and much more information.

The current mortgage crisis in the US is more a result of the “ability-to-pay” of the borrower rather than the “willingness-to-pay” aspect. Uncertainty over future collateral value and shrinking disposable income of the American householders who are used to living on credit have contributed to the large numbers of loan default.

There is also a mortgage loan calculator attached. It is a first class excel-based amortization calculator that allows you to calculate your loan amounts and loan period.

  Download Mortgage Credit Risk in America (661 KiB, 29 hits)

  Download Mortgage Loan Calculator (52.5 KiB, 30 hits)

The specter of 401(k) hidden fees is serious enough to warrant careful understanding by the average American. Both companies and employees need to understand the nature and scope of the business model followed by the retirement industry.

The PDF below has been downloaded, emailed, and printed hundreds of thousands of times and its viewers include the denizens of the White House. Download the PDF below to understand how hidden 401(k) fees can eat into your lifelong savings. Find out how these fees come about, learn about their specific types, and the amount each fee costs you. This will help you obtain greater security from your retirement plan.

One of the key reasons for excessive and hidden 401(k) costs is the unnecessary services that drive up costs and many costs are hidden. Profit motives of independent financial firms make them operate in a non-fiduciary manner. Such firms offer to handle investment decisions as well as the trading and administrative tasks related to the portfolio of assets in a given 401(k) plan.

Learn about the benefits of a universal 401(k) retirement plan.

An excel 401(k) calculator has been provided for you to download. It’s a good tool to deduce your 401(k) contribution, your 401(k) take home, and related figures.

  Download_401k_Hidden_Fees.pdf (355.9 KiB, 41 hits)

  Download 401(k) Calculator (144.5 KiB, 42 hits)

Here is a detailed overview of the federal tax system and it has been prepared by the Joint Committee on Taxation. It covers the following points -

• Individual Income Tax
• Corporate Income Tax
• Employment Taxes
• Estate, Gift, and Generation-Skipping Taxes
• Major Excise Taxes

The document explains how dollar amounts and income thresholds are indexed for inflation. Amounts that are indexed for inflation include tax rate brackets and annual gift tax exclusions. For the year 2008 income tax rates the amount of standard deduction has been pegged at $5450 for single individuals as well as married individuals filing separate returns. The limit is $8000 for heads of households and $10900 for married individuals filing a joint return.

The document tabulates federal individual income tax rates for 2008 as well as various other taxes.

Along with the PDF below an income tax calculator has been added for your convenience; download it and use it to calculate your net income tax liability. You can use the income tax calculator as a tool for future planning so that you can save accordingly. It’s an easy to use excel and worth having on your desktop.

  Download US Income Tax Rates (100.9 KiB, 46 hits)

  Download_Income_Tax_Calculator.xls (39 KiB, 37 hits)

Understanding 401(k) plans and writing the kind of content on 401(k) plans that Michael Calabrese has come up with is commendable. The author recommends a universal 401(k) plan that will encourage Americans to save more and to ensure that working class Americans get more saving opportunities. A universal plan will be put in place automatically for American tax payers and work in conjunction with the existing private pension system.

The author considers this important because at present the projections are that at least 40% of the baby boomers will have to depend upon government social security poverty level benefits upon reaching the age of seventy. The new 401(k) plans will be designed to meet the needs of a workforce that shifts companies often and therefore benefit portability becomes important. A good 401(k) plan should also offer an incentive to low-wage earners to save for tomorrow instead of preferring a higher wage today. Employees of companies such as McDonald’s and WalMart are a case in point. Employers should also receive adequate tax deductions for contributing to the employees benefit.

Find out about 401(k) hidden fees that you should be aware of.

  401k.pdf (136.9 KiB, 43 hits)

US government regulations require that all institutions, importantly financial institutions conduct the necessary identity theft red flag risk assessment. A risk assessment serves two purposes. First, it tells us if the institution is required to develop an Identity Theft Prevention Program. Second, the risk assessment details those accounts that the Program must take care of. The risk assessment may include other factors such as the likelihood of harm, the cost and operational burden of using a particular Red Flag and the effectiveness of a particular Red Flag.

Continue reading about identity theft red flag risk assessment.

Here is a sample amortization download of great use for those who wish to manage their personal finance. It is a simple sheet that creates an amortization table or chart for the calculation of simple interest on a loan. Use this excel to get an idea of payments on car loans and home mortgages. All you need to enter is the loan amount, interest rate, and number of payments or the period.

Download amortization calculation spreadsheet