The Answer to the question, “What is the meaning of life?”

II. WHAT IS THE MEANING OF LIFE?
(an excerpt from the book “6 Minutes to Financial Freedom”)

Many years ago while pondering the question, What is the meaning of life, God gave me an understanding so clear I had to write it down for future generations. If you take nothing else from this book, please get this spiritual interpretation and share it with everyone you care about.

“The Meaning of Life is ostensibly defined by what we leave behind, that is, our transpositional analysis of our legacy allows us to attain a level of quintessential clairvoyance that leads to positive augmentation of our impending rejuvenation long after we are physically expired.”

The above statement is an eloquently written poetic sonnet that means life is defined by what we leave behind.

It is our looking forward analysis of our legacy that helps us decide what we need to do today. In essence, we must figure out how we want to be remembered, and based on that desired image, determine the actions and activities to yield the required outcome. By analyzing our lives this way, we achieve a level of futuristic understanding that leads to a positive addition to our upcoming mental resurrection long after our time on earth is over. Why does this work? Because, the only place we can live forever is in the minds of people we have somehow positively or negatively impacted or influenced. Ultimately, we have to leave something behind that speaks for us or about us. In order for this process to begin, we must first think about what we want our life to say about us. Or, to put it bluntly, How do we want to be remembered?

Let me give you some ideas to get started: write a book, invent something, write a poem, help someone do something to change his life, write a song, help someone discover his own greatness. Start a company or discover a new element. Invent

your own catchy phrase. Be the first person in your family to do something different or unique. There are four options: (1) create something unique, (2) say something unique, (3) do something unique or (4) be someone unique. For example, my motto is, “Whomever does it first sets the standard, all others must follow!” What is your motto?

Ask yourself the following questions: (1) If my life ended right now would someone on this earth think enough of me or have I done some things significant enough that ten years from now my memory will still be alive in someone’s mind? Or, (2) After the last known family member has passed on to eternity, would my memory go with them. Or, (3) Have I done some things in my life significant enough to allow my memory to outlast that ending?

If the answer to either of these questions is no, consider this your wake-up call. Because you are reading this now, there is still time to decide to be a significant member of history and not just a person who lived and died to be forgotten.

Copyright 2002 By Anson Massey, 6Minutes to Financial Freedom, Chapter 2

After Nearly 20 Years of Consulting Here is the #1 Thing

After nearly 20 years of working directly with small businesses and individuals, here is the number one reason small businesses and entrepreneurs fail. I will share the reasons and the top strategies to avoid these reasons. First I will talk about traditional brick and mortar and 2nd I will talk about entrepreneurs in general, including internet, marketing, product sellers, affiliates and any other kind of individual starting a business.

Traditional Business

The reason most small businesses fail is really very simple and consistent:  Under Capitalization. The majority of businesses under 3 years old that paid me to come In and analyze or re-engineer the business, had good products. So the real reason the business was failing had less to do with the product and more to do with how the business was being run, especially within the first 12 to 24 months, which is a critical period for all businesses. Once I sat down and talked to all the key employees and looked at the initial pro forma financial projections, including owners equity and capitalization. A gaping hole was obvious: sufficient capital reserves to cover operation shortfall.

Most small businesses do a great job of estimating expenses to get the doors open and the lease established, but conversely do a poor job of building in Cashflow reserves sufficient to cover operations for At least 12 months of full operation. Now when I say full operation, I mean operations when the company has established an operating rhythm or business cycle. For most companies this smoothing out of processes takes about 90 days. This initial time phase is not generally a time to maximize profitably because it involves fine tuning and market launch, which inherently should include a large amount of marketing and PR initiatives designed solely to get the company name out in the marketplace. So, the reason so many small businesses fail is lack of operating cash flow to cover expenses within the first 12-24 months. If you start off behind it only gets worse as the company is forced to cut marketing and promotions too early in the timeline to effectively get the company name in the marketplace and subsequently, the company very rarely recovers from this structural flaw. The reason: having to be profitable immediately to keep the lights on puts undue pressure and stress on the business and on the business owners. The fun is sucked right out if the business from the very beginning! This great idea that you had been entertaining for years and finally got up the initiative and courage to launch is no longer what you signed up for within 90- 120 days of launch! If you go out and get loans to cover the shortfall, the interest payments can become an albatross on the cash flow health of the long-term business if the structure doesn’t improve, and may even hasten the time to business closure.

So how do we fix this ? Before I give you my answer based on actual cases, I’d like to hear your comments or questions .. Then we will pick back up and finish this brick and mitts segment and then move on to individuals, where the similarities are uncanny…

Comments? Questions?

In Abundance,
Anson Massey

Keywords to Help You Make Money Online Now

 

 

Keywords to Help You Make Money Online Now

Are You Missing Out

Are you new to web marketing? And looking for a niche place in the cyber world? Or, are you simply looking for a great rating among the search results of major search engines like Google, Yahoo or Bing? In any case, you must become very good at finding highly sought after keywords. Yes, by finding keywords, that are in demand and in your niche market, you will certainly be able to improve  your search engine ranking.  Keywords are not as important as they were five years ago because search engine algorithms have evolved to distribute search rankings differently, but, it doesn’t hurt to be really precise with keyword selection.
 
The purpose of searching keywords is to find out the exact phrases that are requested by people in the searches conducted on the major search engines. If your website contains the relevant information about the most searched terms and keywords, your website would be rated higher by the major search engines. The entire process of improving search engine ranking for a website is a wide process and is called search engine optimization. Finding keywords is one of the most important parts of search engine optimization.

To start the keyword search for your website, make a list of the keywords related to your website. You can easily find the keywords by using online keyword services. One popular keyword service provider on the web is word tracker. Using word tracker tools and services, all you have to do is to type a keyword and wait for the list to appear on the computer screen. And you will you have direct access to hundreds of keywords related to the keyword you have typed in the box.

 

For instance: your website is a website that markets and promotes skin products. Type the word “skin” and you will have all the top keywords related to skin. The keywords will be something like: skin care, oily skin, skin diseases, skin products, animal skin and so on.

Now you have to select the relevant keywords for your website. You cannot choose animal skin for your site which caters specifically to the human skin cosmetics and skin care. Yes you can include the keywords like skin care, skin cream, dry skin, oily skin and many others.

You have a number of keyword services and tools that can help you find the most searched keywords for your website. While you select the keyword with the help of these tools, you will also come to know how many times the keyword has been searched on the internet.

Let us go back to skin example: suppose you select dry skin, you can also track the exact number of times “dry skin” has been searched on the internet. The number can be very large. If you choose “dry skin type”, the number of searches can be less. So, you are should probably select the keyword with a higher search count first.  Minimum 3,000 searches per month is a good place to start.  If you are trying to sell a product online then the keyword selection changes to words that are in demand but not overly saturated because the amount of clutter becomes too great.  Buyers are more focused when you pinpoint “long tail” keyword strings, as opposed to individual keywords.  Often times individuals typing single keywords are not even in purchase mode yet and sometimes start the general search process with single keywords.  Keywords that include colors, sizes, and feature specifics are generally used much closer to the time of purchase so keep this in mind if you are trying to offer products.

Another tricky method of finding keywords is to keep an eye on your competitors. Look at the meta-tags of your competitors’ website. The meta-tags are a good source of significant keywords. You can also seek help from your customers regarding the keywords they use in their search queries as well.

Having a blog page in your website is also helpful in tracking the keywords. Each blog page has a link which shows the keywords being used to search your page. Once you have the right keywords in hand, you can hit the market with the most relevant and desired information on your website.

In Abundance,

Anson Massey

 

follow my blog at http://www.moneydecoded.wordpress.com

Discover the Road Map to Lasting Prosperity

In chapter 10 of my book  6 minutes to Financial Freedom, I described the road map to lasting prosperity and coalesced it with an illustrated diagram.  While recovering from a brain aneurysm I made this discovery and after a year of research I condensed the entire theory into this illustration:

The roadmap to Lasting Prosperity from #6 Minutes to Financial Freedom

The Roadmap to Lasting Prosperity from Chapter 10 of the book 6 Minutes to Financial Freedom

The underlying premise is that if you are diligent and line up certain factors in your life, you will enable God/Divinity/The Universe to maximize your efforts to be prosperous in every area of your life.

Most people would do well to achieve Financial Prosperity (no worries about money), Spiritual Prosperity (good mental health which leads to peace and good relationships with others), and Physical prosperity (be in good health and live a long life),  in a lifetime. Notice that Spiritual Prosperity is in the center of the prosperity region,and in fact, all other forms of prosperity are permutations of this central prosperity element.  What good would it do to have money and no health or money and no relationships? This diagram is centrally about achieving balance in your life.

In the book we take a look at many of the greatest financial books in the world, including, Think and Grow Rich, Multiple Streams of Income, Rich Dad Poor Dad, The Science of Getting Rich, The Millionaire Next Door, Retire Young Retire Rich, The Richest Man in Babylon, The Prophecy, and many more.  These books are analyzed in combination with the Bible (the greatest financial book ever written) and where there is an agreement in principle, that material is included in the book.  Unbeknownst to most people, there are three times more Biblical references to estate planning, finance and money than there are to heaven or hell.  This is why many of the historic financial authors always started with or combined the Bible in their financial theories and platitudes.  The combination of material in 6 Minutes to Financial Freedom is so revolutionary that the book sold out within the first 90 days of release.   Based on comments and letters received, this book is a life book that will be passed down for generations. I now have the book available in its original format for a limited time only as an e-book at Get the book 6 Minutes to Financial Freedom.    Some other topics in the book include: #what is the meaning of life, #what is a good job, what do I do now,  #how do you live forever,  what to do with your money,  what is a good portfolio and more.  Please send in a review when you get the book and read it.  Oh, and incidentally, the significance of 6 minutes is explained in great detail in the book…and now, back to our discussion.

In the aforementioned road map to financial freedom diagram, the parts are distilled down into three main steps with many other supplemental components discussed in detail in the book.  

Step 1 just speaks to your relationship with God/Universe/Deity, as the source of your power and your long-term strength.  People who endeavor to do everything on their own with no help from anyone else, invariably run out of energy at some point and need to find help from somewhere.  

Step 2 is to line up your lifestyle with the Bible.  Quite simply, this step was often spoken of by the likes of Napoleon Hill and Wallace D Wattles in their many writings.  If you can live a lifestyle of honor and integrity you put yourself in position for your Deity to step up on your behalf.  Note: This has nothing to do with religion and everything to do with the principle of reciprocity and the principle that you reap what you sow.  Whatever you focus on you magnify, and whenever you magnify something it increases!  If you think negatively in abundance, you will  manifest negativity in your life.  Therefore, spend your time  thinking and focusing ONLY on what you want.   

Step 3 is to line up your words with the Bible, which implies, getting your thought life in order.  Remember, in order to speak right you have to think right,  and in order to think right you have to live right.. Connect all the dots to make the overall process easier, but, again, this has nothing to do with religion.   It is about the law of attraction and the laws of vibration and reciprocity and most importantly the power of your subconscious mind.  The simplicity of the design is for readers to easily comprehend because the whole process is very complex and convoluted.  This diagram is an attempt to take a 100 step process and cross-reference it against 25 different sources and come up with an output of the 3 most basic essentials.   Let me know your thoughts…

In Abundance,

Anson Massey

Wether you know it or not, you are involved

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In life, We all have a choice to make. We can use our mind like a weapon to protect us and to teach out into the world and build a future for ourselves. Or, conversely, we can allow the issues of life to render us aimless and helpless passengers that watch every good thing pass us by and land somewhere else. It all becomes our choice, one way or the other, willfully or un-willfully, passive or aggressive.

So what are you choosing?

We are all challenged to handle negative situations in life from childhood through adulthood. You can use negative events, people, and issues in your life as fuel or fire. The analogy is, visualize yourself as a car and your brain is your gas tank.. If you put fire in the gas tank of a car, the car blows up. If you put fuel in your engine, your car goes forward. Gas only lasts so long and you have to continually refuel..for the rest of your life.

What is Fire

When you allow negative events, ideas or people to weigh you down mentally you are, in effect, putting fire in your gas tank. Fire slows you down to a grinding halt and has the ability to affect you negatively long-term. This is the cause of many mental issues for some people many years after the initial event or situation has happened. You have to participate in order to allow something to impact you years after the initial event or situation. You can’t ignore some things that happen to you in your life, you must deal with them head on,because ignoring the negativity is the same thing as accepting it. All things that happen to you can be framed as fuel or fire. It is up to your ability to frame things in your life. If you don’t consciously choose to frame as fuel, things become, by default, fire, and could lead to mental issues and trouble down the road in life. So the big question is…

What is Fuel

When you choose to frame negative events, ideas or people as sources of personal motivation, you are choosing to use negative things that happen to you to YOUR ADVANTAGE. This is framing things that have the potential to hurt or harm you as fuel by using these negative forces as motivation. Children who have been deserted by a parent that decide to use this void as personal motivation to become great, understand how to use their misfortune as fuel. So when some peers around them decide to cut class, the desire to make the deserted parent regret deserting is a stronger motivating force than the desire to appease the peers. Great professional athletes, great musicians and great people in general have figured out how to frame negatives in their favor for years… I often speak at high schools to students and I explain this theory that I developed a name for out of pure self-analysis.. The Fuel or Fire Choice… is my name for my theory and the visual picture of the gas tank and fire or a gas tank and fuel was a visual picture that students seemed to easily understand so the name has stuck all these years..

So just remember it is your choice. Fuel or Fire.

In Abundance,

Anson Massey

Variable Annuities 101

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Life can be expensive and complicated. Your ability to control the timing of tax payments and their effect on the growth and income of your investments will have a significant impact on your retirement.

Annuities can provide an effective alternative for your long-term retirement income needs. They can be expensive compared to some other financial instruments, but to some investors the income guarantee is well worth the expense.With annuities, all interest, dividends and capital gains have the opportunity to accumulate tax deferred. That means that as long as you keep your money invested in the annuity, 1 you will not receive a 1099.

 

In addition to tax-deferred accumulation, variable annuities can offer protection strategies such as:

  • Asset allocation, which helps you potentially reduce your risk in the market by diversifying your investments among different asset classes. With variable annuities, as your investment objectives change, you can reallocate your portfolio tax free.
  • Dollar cost averaging2 is a strategy that lets you systematically invest money in the market over a period of time. Therefore, it gives your money the opportunity to potentially benefit from the market’s ups and downs to help control volatility.
  • Asset protection with optional Living Benefit Riders. 3 Many variable annuities offer protection for future income, your principal or a combination of the two.
  • Protection for heirs with guaranteed4 death benefit protection (early surrender penalties may apply).
  • Professional money managers oversee the investment options of variable annuities and continually review the securities in their portfolios. 
  • Income for as long as you, or you and another person are alive. At any time you can annuitize your annuity contract to provide you with lifetime income.

 

Additional features of variable annuities include:

  • Flexible income options.5 Once you decide that you need to take income, multiple options are available depending on your income needs.
  • Avoidance of probate by naming beneficiaries.
  • Access to top money managers.
  • No limits on contribution amounts, unlike IRAs or qualified plans. Therefore, you can invest as much as you want into an annuity and watch it potentially grow tax deferred.

 

Be aware that the value of a variable annuity account will fluctuate, and when redeemed, the contract may be worth more or less than the original investment. Remember, annuities are not for everyone and all financial products have some drawbacks based on the eye of the beholder. We will discuss the differences between variable, fixed, and indexed annuities in a later blog post.

In Abundance,
Anson Massey

1 Taxes are due upon withdrawal.  Withdrawals are subject to ordinary income tax and if made before the age of 59 1/2, they may also be subject to a 10% federal income tax penalty.

2 Dollar cost averaging does not assure a profit and does not protect against loss in down markets.  It involves continuous investment in securities regardless of fluctuating price levels of such securities so the investor should consider his financial ability to continue purchases though periods of low price levels.

3 Living Benefits are optional features on many variable annuity contracts that can be selected for an additional fee.  All guarantees are based on the claims-paying ability of the issuing insurance company.

4 Guarantee subject to the claims-paying ability of the issuing life insurance company.

5 Taxes are due upon withdrawal.  Withdrawals prior to the age of 59 ½ may be subject to a 10% IRS penalty.  Your principal and investment return in the subaccount will fluctuate in value.  Your units, when redeemed, may be worth more or less than their original cost.

6 The value of a variable annuity account will fluctuate, and when redeemed, the contract may be worth more or less than the original investment.

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Who’s on First? 2013 Style

My attempt at levity… No heavy financial terms or acronyms in this post.. just a little fun..

Enjoy!

 

“Who’s On First” — 2013 A.M. version

 

 

Barack: Hillary! Nice to see you. What’s happening?

Hillary: Sir, I have the report here about the new leader of China.

Barack: Great. Lay it on me.

Hillary: Hu is the new leader of China.

Barack: That’s what I want to know.

Hillary: That’s what I’m telling you.

Barack: That’s what I’m asking you. Who is the new leader of China?

Hillary: Yes.

Barack: I mean the fellow’s name.

Hillary: Hu.

Barack: The guy in China.

Hillary: Hu.

Barack: The new leader of China.

Hillary: Hu.

Barack: The main man in China!

Hillary: Hu is leading China.

Barack: Now whaddya’ asking me for?

Hillary: I’m telling you, Hu is leading China.

Barack: Well, I’m asking you. Who is leading China?

Hillary: That’s the man’s name.

Barack: That’s who’s name?

Hillary: Yes.

Barack: Will you, or will you not, tell me the name of the new leader of China?

Hillary: Yes, sir.

Barack: Yassir? Yassir Arafat is in China? I thought he was dead in the Middle East.

Hillary: That’s correct.

Barack: Then who is in China?

Hillary: Yes, sir.

Barack: Yassir is in China?

Hillary: No, sir.

Barack: Then who is?

Hillary: Yes, sir.

Barack: Yassir?

Hillary: No, sir.

Barack: Look Hillary. I need to know the name of the new leader of China. Get me the Secretary General of the U.N. on the phone.

Hillary: Kofi?

Barack: No, thanks.

Hillary: You want Kofi?

Barack: No.

Hillary: You don’t want Kofi.

Barack: No. But now that you mention it, I could use a glass of milk. And then get me the U.N.

Hillary: Yes, sir.

Barack: Not Yassir! The guy at the U.N.

Hillary: Kofi?

Barack: Milk! Will you please make the call?

Hillary: And call who?

Barack: Who is the guy at the U.N?

Hillary: Hu is the guy in China

Barack: Will you stay out of China?!

Hillary: Yes, sir.

Barack: And stay out of the Middle East! Just get me the guy at the U.N.

Hillary: Kofi.

Barack: All right! With cream and two sugars.

 

Evidence that Birth Order really does Affect Salary

This story came out on Yahoo about 2 years ago and I want you to read it and tell me if you believe it or not>>>

BEGIN ARTICLE>>>

How Birth Order Can Affect Your Job, Salary
by Ruth Mantell

It’s just not fair: Middle children are in a bad spot

Not only did your big brother steal your Halloween candy throughout childhood, but as an adult he probably makes more money than you, too, say recently released survey findings. As if years of retribution-free noogies weren’t sweet enough, it turns out that first-born kids are the most likely to earn six figures and hold a top executive position among workers with siblings, according to findings from jobs website CareerBuilder.com.  Meanwhile, middle kids are the most likely to report holding an entry-level spot and earning less than $35,000, while siblings born last are the most likely to work in middle management.

“The first-born child is usually in a leadership role in the household and it continues into their career,” said Michael Erwin, senior career adviser at CareerBuilder.com. “The middle child tends to be more of the peacekeeper. The last born is more of the free spirit.”  The CareerBuilder.com survey was conducted online between May 18 and June 8 among 5,708 full-time workers. Results also indicate that only children are more likely to earn six figures and to be a top executive, while workers with siblings are more likely to have job satisfaction.  “You know how to work better with a team because you’ve had siblings. An only child is used to doing things on their own,” Erwin said.  According to the CareerBuilder.com survey, depending on order of birth, individuals tend to be in certain types of work. Those who are born first usually go into the fields of government, information technology, engineering and science. Middle children often go into law enforcement, firefighting, construction, education, and personal care. Those born last frequently go into art/design/architecture, editing/writing, information technology and sales. Only children tend toward information technology, engineering, nursing and law enforcement.

Life Is Unfair

Firstborns, before their siblings arrive, benefit from more parental investment, such as time spent talking.  “When a sibling comes along, one has a rival for that attention and one is going to experience an intellectual environment that is being diluted,” said Frank Sulloway, an adjunct professor in the psychology department at the University of California, Berkeley. Research indicates that earlier-born men and women have higher educational attainment and higher earnings. On average, the IQs of firstborns are about three points higher than secondborns, based on data for men, according to Sandra Black, an economics professor at the University of Texas, Austin. Just a few IQ points can have an outsized impact.  “These are relatively modest differences, but that’s sometimes the difference between getting into Harvard or some other school, and who gets a better job. It’s totally unfair, but that’s the way it is,” Sulloway said. Small differences among different siblings can also mean that there are a disproportionate number of firstborns in challenging fields such as medicine and law, he said.  When it comes to annual earnings for men, firstborns earn about 1.2% more than second children, and about 2.8% more than third children, according to Black.  For women, firstborns earn about 4.2% more than secondborns, and about 6.6% more than thirdborns.  For earnings, much of the difference due to birth order is explained by differences in educational attainment, Black said.  “Birth order affects educational attainment, which then affects earnings,” Black said. “Laterborns earn less than firstborns, and a substantial part of this different is due to the fact that laterborns get fewer years of education.”  However, not all is doom and gloom for those who aren’t the first-born child. “Earnings are determined by a lot of different factors. So laterborns should not give up,” Black said.

Birth Order and Personality

Birth order is not decisive when it comes to an individual’s life achievements, but personality is shaped by experiences, and individuals have different experiences due to birth order, said Ben Dattner, a NY-based organizational psychologist.  “First-born siblings have an incentive to adapt to the family environment they were born into. There’s a niche in the family for the first-born sibling to be a culture carrier — an open slot for the position of good-family citizen,” Dattner said. “Second-born children are born into a family in which somebody has already occupied the position of good student, good kid, carrier of a parent’s values.”  Younger siblings will try to find their own niche — an area that firstborns don’t already excel in, Sulloway said.  “To be different, younger siblings will often try to find their own domain, something they are particularly good at, something that is different from an older sibling’s area of expertise,” Sulloway said.  Later-born children tend to be more interested in foreign cultures and travel, and may be more likely to take risks, experts said.  “First-born siblings are less likely to move far away from their parents because they have adapted into their family’s culture. But there are exceptions to every rule,” Dattner said.  Who winds up drawing the shortest stick? It’s the middle kid who tends to get less attention than either firstborns or younger siblings.  “Firstborns tend to receive more attention because they arrive first and receive 100% of parental attention until another sibling arrives.  In addition, firstborns are older than their other siblings, generally assume a leadership role, and often serve as surrogate parents, assisting parents with child-rearing tasks, for which they derive certain rewards,” Sulloway said. “Lastborns tend to receive an undue share of parental attention because they are the most vulnerable sibling, and hence the most in need of continuing parental investment and care.”

END>>>

 

So even though there is some research do you believe these conclusions or not ?? Comments Please::

Increase Your Credit Score by 100-200 Points in 90 Days or Less

ansonmass

Let’s discuss Credit scores and I have a surprise insider secret for you at the end of this lesson to increase your credit score by 100 -200 points and put a 800 FICO score easily on your to-do-list. With that said, let’s begin..

What Is A FICO Score?
A FICO score is the universal credit score measure used by the 3 major credit bureaus Equifax, Transunion and Experian. It’s the number lenders use to help them decide: “If I give this person a loan or credit card, how likely is it that I will get paid back?” A FICO score is a snapshot of your credit risk picture at a particular point in time. The higher your score, the lower the risk to lenders. Fair Isaac and COmpany Inc. develops the mathematical algorithms used to produce the actual scores, thus the name FICO score.

How Can I Improve My FICO Score?
Generally, people with high FICO scores consistently:
– Pay bills on time.
– Keep balances low on credit cards and other revolving credit products.
-Have a nice mix of revolving and installment accounts
– Apply for and open new credit accounts only as needed.

What Are The Most Important Factors In A Score?
FICO scores consider five main kinds of credit information. Listed from most important to least important, these are:
– Payment history.
– Amount owed.
– Length of credit history.
– New credit.
– Types of credit in use.

How Often Does My Score Change?
Your credit file is continually updated with new information from your creditors. The FICO score is calculated based on the latest snapshot of information contained in your file at the time the score is requested. So your FICO score from a month ago is probably not the same score a lender would get from the credit reporting agency today. Fluctuations of a few points from month to month are
quite common.

How Are FICO Scores Calculated?
Every FICO score is calculated at a credit reporting agency using a mathematical formula that evaluates many types of information on your credit report at that agency. By comparing your Information to the patterns in millions of past credit reports, the score identifies your level of future credit risk.

What Are The Highest And Lowest FICO Scores?
FICO scores range from 300 to 850. The higher the score, the lower the predicted credit risk for lenders.

Does Everyone Have A FICO Score?
For a FICO score to be calculated on your credit report, the report must contain at least one account which has been open for six months or longer. In addition, the report must contain at least one account that has been updated in the past six months. This ensures that there is enough information – and enough recent information in your report to compute an accurate score.

How Much Do FICO Scores Change Over Time?
Research indicates that, for the most part, FICO scores are pretty stable from one month to the next, however changes in your credit behavior can significantly impact your FICO score over time. The degree of change in score is driven by a variety of factors such as:

-Your current credit profile.
How you have managed your credit to date will affect how a particular action may impact your score. For example, new information on a credit report, such as opening a new credit account, is more likely to have a larger impact on a consumer with limited credit history compared to a consumer with a very full credit history.

– The change being reported. The “degree” of change being reported will have an impact. For example, if someone who usually pays bills on-time continues to do so, then there will likely be only a small impact on the score one month later. On the other hand, if this same person files a bankruptcy or misses a payment, then there will most likely be a substantial impact on the score one month later.

– How quickly information is updated. Remember, there is often a time lag between when you perform an action (like paying off your credit balance in full) and when it is reported by the creditor to the credit bureau.

Secret To Improving Your FICO Score
Most people don’t know that the best way to improve your FICO score is to reduce or delete negative information AND (drum roll please) Increase positive credit lines!!! NOTE: Even if order your free annual credit report for all three agencies from http://www.annualcreditreport.com and you delete all negative information but have no positive OPEN credit lines, your FICO score will not be maximized. The positive credit lines have a multiplier effect on your overall credit history. A good mix should be 1-2 lines revolving credit lines (like credit cards, department store cards, gas cards) and 1-2 installment credit lines (mortgages, appliance purchases on credit, car payments). Lastly, remember, always pay more than the minimum due if possible, even if it is only slightly more because it will dramatically reduce the overall amount you pay due to the compounding effect of interest. Some clients I advise have reduced their mortgage payments due from 30 years down to 15 years by following a more refined version of this strategy. This snowballing approach to debt in conjunction with a bi-monthly plus 5% strategy is a custom strategy that works like a charm, but the point is, don’t let minimums be your maximums as a long-term strategy. Over the course of your life you should endeavor to “Increase good debt (debt that produces income or more assets) and reduce bad debt (debt that only uses cash and does not provide an increase in net worth).”

In summary, delete the negatives while increasing the positives. Combine these strategies with a reduction in total credit usage below 60% and now you are on the fast track. There are always options to open credit lines so no worries here.

By the way, I cover strategies for getting a 800 FICO score in my sold out book “6 Minutes to Financial Freedom.” But no matter where your credit score is today, ” it absolutely can be at least 100-200 points better within the next 12 months.”

In Abundance,

Anson Massey

Life Insurance 101

Let’s go to life insurance class

Life Insurance Basics
Life insurance companies are great at coming up with new kinds of policies. But try to remember that whatever the name of the policy-;universal life, variable life, Whole Life, Irreplaceable Life, The Income Answer, The Life Solution-; the fact is they are all variations on the two basic kinds of life insurance: term insurance and cash-value insurance (also called permanent or whole life).

Term Insurance
This is as simple as life insurance gets and is the easiest to understand. You insure your life for a fixed period-;one year, five years or more-;and pay an annual premium based on your age. The older you get, the more it costs. The younger you are, the premiums are lower. Many companies won’t sell term policies that run past a certain age limit, usually 65 or 70. But by that time term insurance is very expensive anyway, because life expectancy is comparatively short. Besides, as we’ve seen above, your need for insurance often diminishes as you reach retirement age.

A term insurance policy has no savings or investment features built into the rates, making it the purest form of life insurance and thus the cheapest for a given amount of coverage. Term insurance comes in different varieties based on age, health and benefit amount.

Annual renewable term
This is the most common form of term insurance. You buy a series of one-year policies and the insurance company guarantees you the right to renew the coverage each year without having to undergo an additional medical exam. As you grow older, your premium rises, but at least you don’t have to get another medical exam..

Guaranteed-level term
Instead of rising each year, premiums start out a little higher but stay level for five, ten, 15 or even 20 years. At the end of the period, you have usually paid less than you would have under an annual renewable term policy. Insurance companies developed guaranteed-level term policies to discourage policy hopping.

Declining, Decreasing or Reducing Term
Coverage periodically drops according to a fixed schedule over ten, 15, 20 or more years. Mortgage insurance policies, which pay the loan balance when the policyholder dies, are a common form of decreasing term.

Convertible Term
For a higher premium, the policy can be converted into a cash-value policy without your having to meet medical standards at the time of conversion. Most companies offer policies that are both convertible and renewable up to specified ages or for fixed periods.
Enough about term, let’s discuss cash value policies.

Whole Life Insurance
This is also called permanent or cash-value insurance. In its basic form, it charges you the same premium, based on your age when you sign up, for as long as the policy remains in force. Because the premium remains level as you grow older, it is set to exceed the company’s cost of insuring your life during the early years. The surplus and interest it earns go into a reserve fund, part of which pays the agent’s commission and the company’s administrative costs. The rest gets credited to your account, where it earns dividends. After a couple of years your reserve begins to build, creating a cash value that you can draw on in one or more ways.

You can use your accumulated cash value by borrowing against it while the policy stays in force; by directing the company to use it to purchase a paid-up insurance policy; by directing the company to use it to pay your premiums; or by surrendering the policy and taking the money. When you die, the company pays your beneficiary the policy’s face amount (less any policy loan balance), not the face amount plus cash value.

Insurance companies offer a variety of cash-value policies, ranging from the standard whole life policy (sometimes called straight or ordinary life) to specially designed contracts in which the premiums or face amounts change according to a set schedule, investment results or some other factor.

Creative Variations
One variant essentially combines into one policy coverage of two people-;husband and wife. This product is often used for estate planning purposes. For more about it, see Second to Die Life Insurance. To read about a special kind of trust used with life insurance to minimize estate taxes, see Irrevocable Life Insurance Trusts.

There are many other creative policy names and themes created all the time by the hundreds of insurance companies out there, in fact, you can even sell shares of your life insurance policy to investors in certain situations. Life insurance is an asset only when it is not term insurance. Remember, any solid estate plan has a life insurance component.

In Abundance,
Anson Massey