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.

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.

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.
Note: There is a file embedded within this post, please visit this post to download the file.

• 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.

The crux of Obama’s speech was how America has chosen to be different this time. It followed a predictable path of thanking all involved, from the people, to his family - his wife Michelle and his daughters Sasha and Malia and a mention of a puppy for the cuteness effect. He thanked his campaign manager David Plouffe and his chief strategist David Axelrod.

Check John McCain’s concession speech. It touched a chord with me and I liked it more.

McCain was effusive in his praise of Obama and specifically mentioned his rival’s ability to motivate so many people to vote for him. A beautiful aspect of the speech was McCain referring to Obama as “my president”. He made it a point to offer his condolences for the demise of Obama’s grandmother.

Another touching feature of the speech was the respect of the audience that McCain commanded. They were with their candidate in his moment of loss and were willing to share the blame for not being able to see him across. McCain’s speech has gained him widespread admiration and those who have followed the US elections over the years are calling it one of the most gracious concession speeches ever.

Complete text of President-elect Barack Obama acceptance speech

Another factor favoring Obama is that the young voter turnout in the 2008 elections is highly pro-Democratic party. The Dems have increased their young voter base in almost all states by a staggering amount. Compared to 2004 when there were 1,110,806 voters for the Dems in the age-group of 18-29, the figures for 2008 are projected to be 4,963,587. This is a 500% increase in voter base.

Comparable 2004 and 2008 figures for the Republicans are 1,236,293 for 2004 and 1,769,213.

Proposition 1 relates to bringing environmentally preferred high-speed trains and high-speed rail bonds to the state of California; this proposition has more pros than cons for it. It will reduce California’s dependence on foreign oil and the emission of greenhouse gases.

Proposition 2 relates to certain conformation standards for farm animals. This initiative requires that farm animals and birds be allowed to stretch their limbs and wings and in general be given greater space. This proposition could lead to a decrease in local and state tax revenue from farm businesses.

Proposition 3 is about a statewide bond of $980 million for modernizing and expanding the children hospitals in the state. The issue of bond debt for such a huge amount has Californians divided on the issue.

California propositions are on the top of the mind of California voters and the ACLU is doing its bit to influence voters on issues that they should push for or oppose.
Note: There is a file embedded within this post, please visit this post to download the file. Note: There is a file embedded within this post, please visit this post to download the file.Note: There is a file embedded within this post, please visit this post to download the file.Note: There is a file embedded within this post, please visit this post to download the file.Note: There is a file embedded within this post, please visit this post to download the file.

The repealing of the “Alien Land” Law would surely be a step in the right direction. In Florida aliens ineligible for citizenship are not allowed to own land, the proposed amendment would do away with the legislature’s right to regulate and prohibit property ownership by aliens, for example Mexicans and Asians. Most American states have repealed such laws but the state of Florida is yet to do so.

The amendment proposes a constitutional ban on gay marriages and intends to define a marriage only in terms of a legal union between a man and a woman. A welcome amendment would be the tax exemption of improvements done on residential property for energy efficiency and windstorm protection.

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.