Promissory Note Red Flags, Hints and Alerts
3 Recurring Causes of Valuation Discounts. Investing Overview. Promissory Notes –A “Middle of the Road” Option. Recurring Causes of Valuation Discounts. Remember, any discount will cause tax and fee savings!Retirement Income
Due to the decrepit condition of the economy, there are many people who are concerned with their finances, especially those who may be approaching retirement age. Potential retirees have found that their cushion retirement funds have decreased in value dramatically, and many potential retirees have been forced to put off their retirement and stay in the work force.Promissory Note Investing for Income – Build Wealth Gradually
Why Accept 2% Interest When 8% is Available? Main Stream Interest Rates are Too Low. Wealth Building is a Gradual Process. Financial Independence Depends on Having Income. Understanding Basic Promissory Note Facts.A Discounted Promissory Note Can Be Profitable
Our thinking is based on doing a traditional buy-sale transaction; buying an asset for $1,000 and reselling it for $800 is not a profitable transaction, normally. But, there are exceptions to this rule. Let’s look at the profitability possibilities of a promissory note discounted in value. But, before we do that, let’s clarify two important points.Promissory Note Appraisal and Valuation – When Is an Appraisal Required?
Why is an Appraisal Necessary? Who is Qualified to do it? First, exactly what type of appraised valuation are we seeking? IRS Revenue Ruling 59-60. Who is qualified to do the appraisal? Factors Affecting Note Valuation…Promissory Note Appraisal and Valuation – Little Mistakes Can Ruin the Value
Flaws and Deficiencies Discount the Note’s Value. How to avoid an investment trap. Many notes are legally enforceable but uncollectable. Shortcuts taken when buying or structuring the note are “Penny Wise and Dollar Foolish”.The Holy Grail Of Investing
Securities picked on the basis of hot companies or tips often end in a fiasco. Remember that returns on a Portfolio are driven by the overall strategic interaction and performance (asset allocation) of the underlying constituent elements. Individual securities standalone do not matter much. It is all about asset allocation that drives the Portfolio returns.Retirement Fraud – Preying on the Vulnerable
Retirement is meant to be a time of relaxing and enjoying life-but retirement fraud can cause unexpected and unwanted stress. You should educate yourself about the dangers of retirement fraud before you decide to retire. Not only are retired people at a risk for fraud at large, but fraudulent stockbrokers target retirement-aged people, enticing them with scams of retiring early.How to Use QROPS When Retiring
In this current financial situation, deciding on the wisest means to invest your pension money when you get to retirement is all the more essential – as the money you receive as your income after you retire will not go anywhere near as far as it once did, owing to the fast growth in the cost of everyday items such as food and fuel; and the price of annuities in the first place has never been really excessive. What’s more, your pension pot will have been growing more slowly recently than it did in earlier years thanks to the sluggishly performing stock exchanges and the commensurate dip in dividend payments during the economic slump of the last several years.How to Value a Promissory Note
There are numerous types of valuations applicable to financial instruments and to promissory notes —here are some: Investment Value, Intrinsic Value, Book Value, Face Value, Market Value, Perceived Value, Subjective Value, Liquidation Value Cash Value, Forced Sale Value and Fair Market Value. This discussion is limited to Fair Market Value-FMV. Fair Market Value–Importance Fair Market Value (FMV) is the value that the Internal Revenue Service (IRS) is searching for.