Passive Income General Information

Make no mistake. Everyone should be aggressive about creating passive income. The more PI that can be created, the less stress about making more working income is created. There are individuals in this world that are able to live simply off of their PI. There are many types of PI, from basic savings accounts to stocks and real estate. The benefits of having PI take the place of working income are numerous. Regularly, when an individual starts on a path to creating PI, it grows on a regular and continuous basis. Therefor, if you are not creating PI, the question of why needs to be answered.

The benefits of raising passive income are many. They include creating freedom of time and opportunities to do other activities. For instance, maybe you have children and want to be a more active parent in their lives. Having passive income can help create that time you need. Maybe you want to take classes or create projects, and you know that your passive income can cover some if not all the cost. Passive income can lead to the ability to fund philanthropic ventures that otherwise could not be formed.

Even if the passive income starts out small, you should be aggressive in looking to create more of it. For instance, But where do you find it? You can look to your local bank. They have all kinds of interest bearing accounts with small balance requirements which you can use to create passive income. Another place to look is the stock and bond markets. There are thousands of companies that pay a dividend to shareholders on a quarterly basis as well as interest for bondholders. For larger investors, there is also real estate.

Creating passive income can have a dramatic effect on time, imagination, results, and happiness. Finding the way to create PI should be a primary focus when thinking about money.

The Case For Refinancing (For The Banks Too)

It would be great if the housing market could find a spark. What is out there that can move the market?

Time To Release The Refinancing Hounds

Could refinancing be the spark needed to get the housing market and the general economy moving again? The case for this has to be made. Here are some reasons why in the medium to long term, it should help everyone involved in the cycle:

-          Homeowners – There are many homeowners that have proven their worth by still paying on mortgages.

-          Businesses – Everything connected to housing would benefit from this type of move. Builders would see more activity. Local governments could start seeing higher tax revenue. Families could start living in their own homes.   

-          Banks – Most homeowners have shown that even though they will not be able to refinance their loans, they have not walked out on them.  The ones that couldn’t are already out of the system. The banks should take advantage of this loyalty. The amount of money received right away from the fees will at this point outweigh the loss of revenue over the next 25 years. Some banks that are not as tied to trading for profits as others could use this to boost current period revenue.

The How To Plan

-          First, target all homeowners that are consistent with their payments and are within a certain percentage (maybe 2-5) of the current requirements for refinancing.

-          Offer them a standard refi program with a penalty fee worth the thirty year Net Present Value of the reduced value of the home. 

-          Another option is to attach an annual fee to the mortgage if the Net Present Value of the reduced value is too high.   

Banks close to doing right

After reading this story below, it makes me wonder again, how much better financially the country would be if they EVER did the right thing instead of the most profitable thing. Their blatant disregard at times while receiving that ridiculous sum of tax money is unbelievable. When will they realize they just have to own up, take the hurt that is coming to their company quickly, and move forward.

But then again, that would hurt their stock price, which reminds me of another company worried about its stock price..........It is no wonder Jeff Skilling is hopping mad about having to be in jail while these executives still are working and receiving million dollar bonuses.

CNBC foreclosure story

Amazing article on bank failures

Hey

Daniel Gross has written an exceptional article analyzing bank failures in the last few years.

Enjoy!

Good Article on job creation

Here is a very good article on job creation from Dan Froomkin.

Job Creation

Enjoy!