Divide a given interest rate into 72. The result, more or less, is the number of years needed to double your money. So a compounded 6% return doubles your money in about 12 years. A 7% return takes just over 10 years. The opposite works, too. Want to double your money in five years? You’ll need a return of more than 14% a year.
The Rule of 72 works pretty well for reinvested dividends, too, although since dividends are often paid quarterly and therefore compound more often, the wait is a touch shorter. Two conditions: The dividends must keep coming, and the stock price mustn’t plunge all the way through to the end of the waiting period. Temporary drops are OK, even welcome, since reinvested dividends will buy shares at the lower prices.
Here are some stocks that might double your money, even without big price gains. No guarantees, obviously.
14 years
You’ll need at least 5% a year in dividends. Food stocks like Heinz (HNZ) and Kraft (KFT) pay that much. So does Boeing (BA), which I particularly like. Its shares, at less than six times this year’s earnings forecast, are priced as though mankind has come up with something better than airplanes for long-distance travel. And Genuine Parts (GPC) looks likely to profit from all those cars Americans aren’t buying, since it sells the parts needed to keep old cars running.
12 years
That’ll take a 6% yield. Merck (MRK) seems capable of keeping its meaty payment coming. Philip Morris International (PM), too. Verizon (VZ), another high-yielder, is growing its broadband unit about as fast as it’s losing business in its landline division, resulting in flat profits at the moment — a fairly enviable state.
10 years
Dividends of 7% and up are suspicious. Be careful of stocks whose prices are being pounded on the likelihood that dividend cuts are coming. Pitney Bowes (PBI) seems a good bet, especially since it recently increased its payment. Egg producer Cal-Maine Foods (CALM) yields 6.9% but is something of an odd bird; it pays one-third of profits as a variable dividend. With shares at less than four times this year’s earnings forecast, such a policy could produce a yield of greater than 8%.
Showing posts with label Education. Show all posts
Showing posts with label Education. Show all posts
Monday, March 9, 2009
Tuesday, March 3, 2009
College Savings Plans
Plans for College Savings
For parents planning for their children's college education, there are several investment options to consider. One option that seems appealing is state-sponsored prepaid tuition plans available in several states. These plans allow parents to pay today's tuition rates with the assurance that the child will have the money to go to college when the time comes. They also allow participants to defer paying federal income tax on earnings until money is withdrawn for college.
These plans sound very attractive because of their guarantee as well as relative simplicity. Prepaid tuition plans differ from college savings plans that seek higher returns not tied to the increase in tuition. College savings plans do offer the potential for higher returns than the rate of tuition inflation, but there is a risk that your investment could lose value.
Prepaid tuition plans allow parents to lock in a tuition rate and begin paying the cost of college today.
If college is still a long-term consideration, parents may get a better rate of return by investing in stocks or a state-sponsored college savings plan that seeks higher returns.
Many plans do not allow for account transfers or payments to out-of-state colleges. Withdrawal of funds for anything other than tuition can result in substantial penalties.
Assets are attributed to the account owner, not the beneficiary, resulting in a lower impact on need-based financial aid.
Parents can also purchase CDs guaranteed to pay a full year's average tuition through College Savings Bank in Princeton, New Jersey.
Questions to Ask:
Is it transferable? To whom? When?
What is the enrollment period?
What costs are covered?
Can out-of-state residents participate?
What happens if you stop paying?
What happens if your child goes to private college?
What happens if your child goes to out-of-state college?
What is the tax effect?
Checklist:
Read the fine print on each prepaid tuition plan you evaluate. Make sure you understand all the fees and rules.
If you have more than one child, consider signing up for a plan that would let you transfer one child's unused money to a sibling.
If relatives ask for gift ideas, suggest a contribution to your child's prepaid tuition plan.
Encourage your child to contribute earnings from part-time work. He or she may take a college education more seriously after playing a role in financing it.
For parents planning for their children's college education, there are several investment options to consider. One option that seems appealing is state-sponsored prepaid tuition plans available in several states. These plans allow parents to pay today's tuition rates with the assurance that the child will have the money to go to college when the time comes. They also allow participants to defer paying federal income tax on earnings until money is withdrawn for college.
These plans sound very attractive because of their guarantee as well as relative simplicity. Prepaid tuition plans differ from college savings plans that seek higher returns not tied to the increase in tuition. College savings plans do offer the potential for higher returns than the rate of tuition inflation, but there is a risk that your investment could lose value.
Prepaid tuition plans allow parents to lock in a tuition rate and begin paying the cost of college today.
If college is still a long-term consideration, parents may get a better rate of return by investing in stocks or a state-sponsored college savings plan that seeks higher returns.
Many plans do not allow for account transfers or payments to out-of-state colleges. Withdrawal of funds for anything other than tuition can result in substantial penalties.
Assets are attributed to the account owner, not the beneficiary, resulting in a lower impact on need-based financial aid.
Parents can also purchase CDs guaranteed to pay a full year's average tuition through College Savings Bank in Princeton, New Jersey.
Questions to Ask:
Is it transferable? To whom? When?
What is the enrollment period?
What costs are covered?
Can out-of-state residents participate?
What happens if you stop paying?
What happens if your child goes to private college?
What happens if your child goes to out-of-state college?
What is the tax effect?
Checklist:
Read the fine print on each prepaid tuition plan you evaluate. Make sure you understand all the fees and rules.
If you have more than one child, consider signing up for a plan that would let you transfer one child's unused money to a sibling.
If relatives ask for gift ideas, suggest a contribution to your child's prepaid tuition plan.
Encourage your child to contribute earnings from part-time work. He or she may take a college education more seriously after playing a role in financing it.
Tuesday, August 26, 2008
Hookin Up Da Dollars
10 Certificate Programs Than Can Add $$$$ to Your Paycheck
How do you train for the next level up on the company ladder, get skills that will match a new promotion, boost your earnings or even change careers without a hefty time commitment? A short-term certificate program that focuses on specific skills within a profession or trade might just be the answer. Often offered online or part time for working professionals, they can take less than two years to complete and often springboard into of-the-moment careers that offer top earnings and job security. Here are some of the hottest certificate programs at campuses nationwide:
Take Action
Make the most out of your career. Check out these degree programs!
Business
Marketing
Engineering
Accounting
Computer Science
1. Financial Planning: With a nationwide focus on retirement savings, investing options, and other financial issues, Certified Financial Planners (CFP) are a hot commodity, and schools such as the University of Texas, Austin are meeting the demand with certificate programs. The University or Texas’ program, like that of other schools, is short term, comprised of just seven courses.
2. Database Administrator: According to the Bureau of Labor Statistics (BLS), database administrators in May of 2006 were earning anywhere from $62,000 to over $100,000 annually. The University of Denver is among the many institutions at which you can earn a certificate to break into the field in less than a year, says Mike Whitford, enrollment manager. All six courses (24 credits) are offered online in this graduate level program.
Eighty percent of our students are working professionals. They are interested in becoming database analysts, architects, and engineers, While the program is new, one recent graduate scored a job as a database management advisor making $95,000 annually,
3. Oracle: The largest vendor of database systems and the second largest independent software company in the world, Oracle is one of the most sought after certifications at the post secondary level. At Penn State Great Valley campus, you can earn a certificate in an Oracle workforce development program using textbooks and taking just three courses.
4. Information Security Management: In a post 9/11 world, more and more professionals are needed to manage and safeguard complex technical security for companies and government agencies. Syracuse University is among the many schools with coursework to help meet this societal demand. Syracuse's five-course (15 credit) certificate has been popular since 2003.
5. Negotiation or Leadership and Management: Certificates [in these areas] can make an executive more marketable, or a CEO gain the knowledge they may not have to lead the company.
The University of Notre Dame’s Mendoza School of Business in conjunction with University Alliance offers these two executive certificates each consisting of three, eight-week courses. Taught by Notre Dame professors in streaming video lectures, voiceover IP and interactive chat rooms, e-mail and whiteboards, for many executives it's a chance to learn specific skills that will further their careers.
6. Entrepreneurship: When students at the Wharton School of Business at the University of Pennsylvania asked for courses in entrepreneurship two years ago, a new certificate was created to fulfill their needs. Under the executive education umbrella and Wharton Programs for Working Professionals, many students who take this six-course certificate are working in other industries or are in middle management and want to launch a business, a new department, or help others do so.
Course credits can be applied toward an MBA if students choose to further their studies. Additionally, students can put their courses to work in the Wharton Small Business Development office, which assists Philadelphia small business owners who need help growing their businesses.
7. Legal Nurse Consulting: Legal nurse consultants are the liaison between lawyers and the health care community, often giving testimony in the courtroom during cases related to medical litigation. These professionals even have their own American Association of Legal Nurse Consultants. (AALNP).
With many certificates taking less than one year to earn, such as the University of Delaware's program, becoming certified often brings an excellent return on investment. There, registered nurses with three years of experience can earn a certificate in this emerging field in just 36 Saturdays. Graduates often end up going into business for themselves, and with experience can earn up to $150 per hour.
8. Forensic Nursing: The 10-course program, which can be completed in a year, requires an LVN (licensed vocational nurse), LPN, RN or paramedic background.
Kaplan University, which also offers the one-year program, cites salary ranges from the International Association of Forensic Nurses at $55 to $300 per hour.
9. Commercial Real Estate:
According to Salary.com, commercial real estate managers earn an average of $120,000 to $162,000 annually. Boston also offers a certificate in real estate finance and property management. Which takes less than a year, to complete the course- some real estate agencies offer in- house training courses and on the job training. (for me because this is my chosen field, took only 2-3 months)
10. Computer Forensics: The industry is clamoring for techs right now because there are many people in the next 10 years who will be retiring from the field, There will be a greater need for programmers, database managers, and networking and security specialists in the next decade, but one of the hot commodity predictions is in computer forensics. A new 32-credit certificate at BCCC in computer forensics includes a former FBI agent as an instructor. The program presents an examination of computer science, criminal justice, and computer forensics–recovering deleted files–and jobs can be found working in regional computer forensics labs or in homeland security. Because it's a fairly new and fast-growing field, the job outlook is favorable, as is the possibility of a hefty salary.
How do you train for the next level up on the company ladder, get skills that will match a new promotion, boost your earnings or even change careers without a hefty time commitment? A short-term certificate program that focuses on specific skills within a profession or trade might just be the answer. Often offered online or part time for working professionals, they can take less than two years to complete and often springboard into of-the-moment careers that offer top earnings and job security. Here are some of the hottest certificate programs at campuses nationwide:
Take Action
Make the most out of your career. Check out these degree programs!
Business
Marketing
Engineering
Accounting
Computer Science
1. Financial Planning: With a nationwide focus on retirement savings, investing options, and other financial issues, Certified Financial Planners (CFP) are a hot commodity, and schools such as the University of Texas, Austin are meeting the demand with certificate programs. The University or Texas’ program, like that of other schools, is short term, comprised of just seven courses.
2. Database Administrator: According to the Bureau of Labor Statistics (BLS), database administrators in May of 2006 were earning anywhere from $62,000 to over $100,000 annually. The University of Denver is among the many institutions at which you can earn a certificate to break into the field in less than a year, says Mike Whitford, enrollment manager. All six courses (24 credits) are offered online in this graduate level program.
Eighty percent of our students are working professionals. They are interested in becoming database analysts, architects, and engineers, While the program is new, one recent graduate scored a job as a database management advisor making $95,000 annually,
3. Oracle: The largest vendor of database systems and the second largest independent software company in the world, Oracle is one of the most sought after certifications at the post secondary level. At Penn State Great Valley campus, you can earn a certificate in an Oracle workforce development program using textbooks and taking just three courses.
4. Information Security Management: In a post 9/11 world, more and more professionals are needed to manage and safeguard complex technical security for companies and government agencies. Syracuse University is among the many schools with coursework to help meet this societal demand. Syracuse's five-course (15 credit) certificate has been popular since 2003.
5. Negotiation or Leadership and Management: Certificates [in these areas] can make an executive more marketable, or a CEO gain the knowledge they may not have to lead the company.
The University of Notre Dame’s Mendoza School of Business in conjunction with University Alliance offers these two executive certificates each consisting of three, eight-week courses. Taught by Notre Dame professors in streaming video lectures, voiceover IP and interactive chat rooms, e-mail and whiteboards, for many executives it's a chance to learn specific skills that will further their careers.
6. Entrepreneurship: When students at the Wharton School of Business at the University of Pennsylvania asked for courses in entrepreneurship two years ago, a new certificate was created to fulfill their needs. Under the executive education umbrella and Wharton Programs for Working Professionals, many students who take this six-course certificate are working in other industries or are in middle management and want to launch a business, a new department, or help others do so.
Course credits can be applied toward an MBA if students choose to further their studies. Additionally, students can put their courses to work in the Wharton Small Business Development office, which assists Philadelphia small business owners who need help growing their businesses.
7. Legal Nurse Consulting: Legal nurse consultants are the liaison between lawyers and the health care community, often giving testimony in the courtroom during cases related to medical litigation. These professionals even have their own American Association of Legal Nurse Consultants. (AALNP).
With many certificates taking less than one year to earn, such as the University of Delaware's program, becoming certified often brings an excellent return on investment. There, registered nurses with three years of experience can earn a certificate in this emerging field in just 36 Saturdays. Graduates often end up going into business for themselves, and with experience can earn up to $150 per hour.
8. Forensic Nursing: The 10-course program, which can be completed in a year, requires an LVN (licensed vocational nurse), LPN, RN or paramedic background.
Kaplan University, which also offers the one-year program, cites salary ranges from the International Association of Forensic Nurses at $55 to $300 per hour.
9. Commercial Real Estate:
According to Salary.com, commercial real estate managers earn an average of $120,000 to $162,000 annually. Boston also offers a certificate in real estate finance and property management. Which takes less than a year, to complete the course- some real estate agencies offer in- house training courses and on the job training. (for me because this is my chosen field, took only 2-3 months)
10. Computer Forensics: The industry is clamoring for techs right now because there are many people in the next 10 years who will be retiring from the field, There will be a greater need for programmers, database managers, and networking and security specialists in the next decade, but one of the hot commodity predictions is in computer forensics. A new 32-credit certificate at BCCC in computer forensics includes a former FBI agent as an instructor. The program presents an examination of computer science, criminal justice, and computer forensics–recovering deleted files–and jobs can be found working in regional computer forensics labs or in homeland security. Because it's a fairly new and fast-growing field, the job outlook is favorable, as is the possibility of a hefty salary.
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