A penny stock, also known as a micro-cap stock, according to the U.S. Securities and Exchange Commission is a stock with a share price below $5.  However, many investors believe a penny stock sells for less than $1.  

Investing in penny stocks is extremely risky because the share price can be extremely erratic.  A very small change in price is large percentage wise.  For example, if you purchase a penny stock fro $1.00 and it drops only 25 cents to $0.75, that stock has lost 25% of its value which is significant.   

Penny stocks are mostly from very small companies and are traded on the Over-The-Counter-Bulletin-Board (OTCBB) and the Pink Sheets.  These exchanges do not have the same minimum requirements like the large exchanges such as NASDAQ or the NYSE that are set by the Securities and Exchange Commission.

The following are disadvantages with investing in penny stocks:  

Poor Investments

Penny stocks are poor investments because some companies will issue penny stock because they are close to bankruptcy or they are new companies with no proven track record.

Company Information is Limited

Companies listed on the OTCBB or Pink Sheets are not required to release financial information.  Many companies also have little to no history for you to review or are brand names that you hear or read about in the media.

Low Liquidity

If you own a penny stock, you may have a hard time selling it when you are ready.  If the stock price starts to fall, it may be difficult to sell it immediately as you would with a large cap stock.  There simply isn’t enough demand for most penny stocks.

Fraud

Because penny stocks are unregulated, they are commonly used by con artists to rip off people.  They usually try and sell them via newsletters, spam emails or off-shore brokerages that do not have to adhere to U.S. laws.

So why do people invest in penny stocks?  Well not all penny stocks are frauds or from companies nearing bankruptcy.  There are some legitimate companies who struggle to meet the requirements to get listed on the NYSE or NASDAQ.  Investing in these companies may offer a huge growth opportunity should they become successful in the future.  However, finding and researching these companies is extremely difficult because there isn’t enough information available.   

Some people frequently trade penny stocks, known as day traders, which are basically gamblers.  They will sit at their computers and watch for movements in various stocks and will try to quickly buy and sell at a higher price to make a profit.  This is just like going to Las Vegas and gambling.

So you have a little extra cash and you are wondering if you should save it or pay off debt.  Paying off debt should be your priority; however, if you have absolutely no savings, you should first try to save at least 3 month, preferable 6 months, of your salary in the bank.  This cash is needed for any emergencies that may come up unexpectedly such as not being able to work due to illness / injury or losing your job.

It’s unfortunate, that over the past 2 decades U.S. citizens have accumulated more debt while saving less. (See chart above). It’s imperative that as soon as you have some cash reserves that you pay off your debt.  For most people this will be credit card debt.  It makes absolutely no sense having your money in the bank making 0.5% in interest while you are paying 15%+ on your credit card balance.  Paying that much in interest is like a leaking facet just wasting water.

If you are contributing money to your 401K or IRA, it’s a good idea to temporarily stop contributing and use that money to pay off your debt.  The interest you will earn in your retirement account will be offset with the high interest you are paying off with your credit card.

If you have multiple credit card, pay off the card with the highest interest first.  Be aggressive by cutting as much expense you can to pay off high interest debt.  If it means cancelling or reducing your cable TV, cell phone, gym membership, eating out, etc., do it.  It will be temporary until you get your debt paid off.  In the long run, you’ll benefit from the temporary sacrifices.

When your financial situation improves, you can then start to contribute to your savings and retirement accounts.  If you pay the minimum due on your credit card debts, it will take you months or years to pay off those debts and you will pay hundreds or thousands of dollars in interest.  

Other techniques you can use to get out debt are:

• Negotiate with your creditors:  Creditors don’t want you to stop making payments.  If you explain to them that you can no longer afford to pay, they may be willing to lower your monthly payments and/or interest rate.
• Increase your income:  You may get a second or part-time job or start a side business.  You may also try to gain work extra hours (overtime) at your job.  If your spouse doesn’t work, it maybe a good idea for her/him to find a job.
• Consolidate your debts:  Debt consolidation is borrowing money at a lower interest rate to pay off higher interest debt to ultimately pay off your debt faster and to save money.
• Getting help:  There are many nonprofit credit counseling agencies that can help you to develop and maintain your budget.  They may help you set up a debt management plan.
• File for bankruptcy:  This should be your absolute last option.  However, bankruptcy maybe your best option if your monthly expense are extremely higher than your expenses that it will take decades living on a bare-bones budget to pay off your debt.  You must consult with a bankruptcy attorney to determine if you should file for bankruptcy and which type you should file for (Chapter 13 reorganization which gives you 3-5 years to pay your debts or Chapter 7 liquadation which eliminates most of your debts.

If you are looking for a good bank savings account, consider Aurora Bank.   Visit Mymoney.gov for more information to improve your financial literacy and education.

Bluehost hosts this website, so I thought I’d provide a review about their services. 

Bluehost, launched in 1996, provides web hosting for individuals and companies around the globe. Through the years Bluehost has constantly improved their services at no extra cost to their customers.

The organization has two secondary data centers amassing over 20, 000 square feet of data center space. The datacenters are secured with UPS power, diesel generators and several 10 gigabit fiber cable connections to locations all over the globe.

Bluehost presently hosts over 750, 000 web sites providing really cost-effective web hosting that features 99. 9% uptime, 24/7 US based support, unlimited disk space, unlimited bandwidth, unlimited domain hosting, one free domain for 1 year, and a much more.

If you want to open up a web hosting account, excellent technical support is crucial. At Bluehost if you run into problems or have concerns you can get a person on the telephone or talk online in a several minutes. Bluehost claimes their hold time is less than thirty mere seconds and their technical support is 100% internal at their offices in Utah.

Bluehost was the very first to provide SimpleScripts 1-Click installations. In case you are looking to host a Blog, eCommerce store, forum, online chat, mailing lists, poll / survey, project management, social networking, etc., with Bluehost setup is very simple. Absolutely no need download and upload data files, configure files and create databases to install these types of applications. With Bluehost it’s a no-brainer! It’s as straightforward as installing software programs on your desktop computer.

If you are looking to create a protected website generally for eCommerce, Bluehost provides SSL Secure Server.

Plans and Pricing

Bluehost currently costs a flat $6. 95 monthly; but, this reduced price is charged over a minimum of 12 months ($83. 40). If you desire whois privacy, there is an extra $9. 95. If you despise spam, Bluehost provides anti-spam protection for $1 per email address monthly. If you need a secure website via SSL certificate you will have to buy a dedicated IP address for $2. 50/month ($30 per year) and the SSL certificate $ 45 per year.

Bluehost also provides a Pro Package for $19. 95 monthly. The Pro Package consists of all the extra premium features required to make your website professional grade.

The Pro Package includes:

• 1 Domain Privacy Protection
• 1 Domain Name Registration
• 1 Dedicated IP
• 1 Site Backup Pro
• 1 PositiveSSL Certificate
• 10 Postini Email Filtering

If you are developing a simple website for the first time, the Pro Package isn’t needed.

Money Back Guarantee

Bluehost offers a 30-day money back guarantee with no fees. This means you get 100% of your money back if you are not satisfied with their service.

Online Marketing Credits

If you are planning to market your website online, Bluehost is currently offering a $75 Google Adwords credit and $25 Bing/Yahoo advertising credits for U. S. and Canadian customers. After you signup with Bluehost, the coupon codes will be available to your for these services. This credit will offset your web hosting costs.

Hosting Features:

• Unlimited disk space
• Unlimited domain hosting
• Free domain name
• Unlimited site transfer
• Unlimited parked domains
• Unlimited subdomains
• Site Buiding Tools:
• cPanel control panel
• CGI-BIN
• CGI Library

Integrated Applications:

• WordPress
• Joomla
• Drupal
• b2evolution
• Tikiwiki
• Moodle
• Coppermine image galleries
• SSL servers
• OS Commerce shopping cart
• Zen shopping cart
• Message form
• Streaming video and audio support

Programming Tools:

• PHP 5
• Perl 5
• Ruby on Rails
• Python
• Javascript

Conclusion

Overall Bluehost is among the best hosting company in The united states. Their system makes it easy for newbies to use. Bluehost’s cPanel control panel makes it simple to navigate all the tools in comparison to hosting companies such as GoDaddy with is incredibly difficult to use. SimpleScripts makes it incredibly easy to setup and install numerous free open source software and paid software. If you want to start a Blog, forum, eCommerce store, etc., SimpleScripts is the solution to use. Within virtually a few minutes you will have a completely functional website ready to go.

Anytime there are update versions to software programs installed by SimpleScripts, you will be notified when you log into your account. You can then very easily update your software program with SimpleScripts. SimpleScripts also has a function to roll-back the update, if you encounter problems. SimpleScripts is an excellent tool that is easy to use.

As mentioned above Bluehost also offers you Google Adwords and Yahoo/Bing credit, totaling $100 free, which you can in a several minutes start to push targeted traffic to your website.

I’ve used Bluehost for around 5 years and have never had any major problems. There technical support has been excellent and wait time on the telephone or online chat has been fairly low.

For more information visit Bluehost.com.

Very interesting infographic below.

Created by: Medical Billing and Coding

If you like to fix and build things, work with your hands, don’t mind getting dirty, like technology and don’t want to sit at a desk, you should  seriously consider a career in maintenance.

There are many different types of maintenance workers, which include electrical, mechanical, aircraft, avionics, helicopter and building maintenance.

Many maintenance technicians work in manufacturing plants, such as automotive, aviation, food and medical plants to repair, install and maintain equipment. The majority of their time is spent on working to keep equipment up and running because it’s very expensive for plants to have extended amounts of downtime.

Due to rapid improvements in technology, machines are becoming more complicated so it’s important that maintenance workers are computer and electronic savvy.

If you are considering a career in maintenance there are basically two ways to obtain maintenance training. The first is to attend a community college offering  maintenance training that consist of hands on training, classroom instructions and text book exercises.

The second is to enter an apprenticeship program where you work with an experienced maintenance technician who will train you to complete specific tasks while you take classes at nights or weekends to obtain your certificate or license. Apprenticeship programs are usually offered by companies who will have a  joint program with local unions or community colleges.

Requirements to enter an apprenticeship program are less stringent than community colleges, however, more companies are only accepting individuals who have a  high school degree. They also prefer high school students who have taken some vocational classes like blue print reading, mechanical drawing, computer  programming, wood working, auto repair, etc.

Training in aircraft maintenance is the most stringent because you will have to pass exams to become certified by the Federal Aviation Administration (FAA), you must be at least 18 years old, have a high school diploma or equivalent, be fluent in reading and speaking English and have the required basic technical  skills. To become a certified aircraft mechanic the FAA requires students to complete a minimum of 1, 900 class hours.

To become a maintenance electricians most states and local governments require a license, however, requirements vary by state/local area. Electricians are required to pass an exam testing their knowledge of electrical theory, local/state electric and building codes and the National Electrical Code.

Salaries for maintenance technicians depend on industry, geography and job classification. Entry level maintenance workers can expect make from $14 to over $20 per hour plus benefits. Workers with over 5 years experience can earn over $30 per hour.

Maintenance workers tend to be older men who will start to retire in abundance over the next few years which will result in a shortage of workers to fill these  positions. Younger workers want to work in cleaner environments and jobs that are less physically demanding. Additionally, younger individuals tend to shy  away from technical careers which involves math and science.

According to a survey conducted by a non-profit financial crisis center, nearly fifty percent of the people surveyed in debt also experienced or exhibited symptoms of depression. Depression is usually classified as experiencing feelings of inadequacy, hopelessness and other negative behaviors and emotions. The survey also found that nine out of ten participants reported significant feelings of debt-related stress.

Depression can create a feeling of hopelessness and an inability to take on financial problems which leads to a vicious cycle of rising debt and deeper depression. Depression can cause some individuals to become emotionally paralyzed which then leads them to be incapable of developing or following a plan of action to rectify their finances. If this is you, it is highly recommended that you seek help from a debt relief counselor familiar with depression related to debt or see a professional therapist.

However, for many people, they have not yet reached that critical point and are still fully capable of learning new debt management skills. And, for many individuals the depression they are experiencing is simply a phase due to their extraneous debt. As the debt is corrected, the depression lifts. However, all too often, for some, depression leads to suicidal tendencies or attempts. It is essential that anyone experiencing feelings to hurt themselves, the ones they love or other people to seek help as soon as possible. Debt is not worth your life.

Financial stress can feel insurmountable at times whether you have unexpectedly lost your job, stuck in a cycle of late payments or have rising credit card debt. Debt can be detrimental to all areas of your life, but with the right debt management skills and tools, you can get out from under the burden of debt once and for all.

If you are suffering from depression related to debt, one of the best things you can do for yourself is to seek outside help through a debt counselor. Many times, just taking the minimal action of asking for help can make you feel like you are regaining control of your finances and it can begin to ease your depression. Finding help and developing an action plan can help lift those feelings of hopelessness and inadequacy.

Depression can trick your mind into thinking that there is no way out or your debts are so out of control that you will never find a remedy. The important thing to remember is that it is just the depression talking and outside help, especially those experienced in dealing with debt-related depression can help you see what your mind refuses to acknowledge. There are many debt management skills they can teach you that will not only alleviate your current situation, but will help you learn how to avoid ending up in the same place all over again.

Debt should not be a cause of depression, but it is extremely common for those in debt to experience symptoms. Seek help as soon as you find yourself in debt and learn how you can turn your finances around.

If you are looking to refinance your home but can’t because you are underwater (you owe more than your house is worth), you may be able to now refinance via changes made to the Home Affordable Refinance Program (HARP) announced last October.  

The changes where made by the Federal Housing Finance Agency, Fannie Mae and Freddie Mac with input from lenders, mortgage insurers and other industry participants.

Fannie Mae and Freddie Mac claims they have helped about 9 million families refinance into a lower cost mortgage or a more sustainable mortgage product. About 10% of those helped was via HARP, which allows borrowers to owe more than their home is worth in order to take advantage of low interest rates and other refinancing benefits.

HARP will continue to be available to borrowers with loans sold to the Enterprises on or before May 31, 2009 with current loan-t0-value (LTV) ratios above 80 percent.

The new program enhancements address several other key aspects of HARP including:

• Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers;
• Removing the current 125 percent LTV ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac;
• Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie Mae and Freddie Mac;
• Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the Enterprises; and
• Extending the end date for HARP until Dec.

A very important feature of these changes is the encouragement, via elimination of certain risk-based fees, for borrowers to use HARP to refinance into shorter-term mortgages.  Additionally, borrowers who owe more on their home than its worth will be able to reduce the loan balance quicker if they take advantage of today’s low interest rates by shortening the term of their mortgage.

For more information view this PDF released by FHFA.gov.