Investments for Individuals in or Near Retirement Lost Less Than S&P 500 Index
While the gyrating stock market may have scrambled some retirement nest eggs, holdings in near-term target-date funds have emerged relatively uncracked.
Target-date funds for those in or near retirement -- those structured for people retiring between 2005 and 2010 -- have lost less than the Standard & Poor's 500-stock index, according to Morningstar Inc. The average total return among these funds was a decline of 4.8% from Oct. 1 through Feb. 20, compared with a decline of 10.2% for the S&P 500, including dividends.
Although that is a good relative return, any decline can be unnerving, especially if the investor has already exited from the work force and is relying on savings for income. While not perfect, staying in a target-date fund is a good choice for many investors, especially those who don't have the time, knowledge or professional help to build a diversified portfolio.
One advantage to the funds is that they stay invested in stocks throughout retirement, something even the most risk-averse investor shouldn't avoid. That is because most investors need to continue to build their portfolios in retirement.
"The growth of capital is as important as the preservation of capital," says Gary Terpening, a product manager with Seligman Advisors Inc., an affiliate of New York-based J. & W. Seligman & Co.
Target-date funds, which first began to appear in the 1990s, offer a diversified portfolio that automatically adjusts as investors age, taking less risk as they approach and enter retirement by moving into cash and bonds. They were designed for the disengaged investor but have grown in popularity. There are now close to 40 companies offering 260 individual funds.
"A lot of people will eventually use this type of product for retirement needs," says Tom Roseen, a senior research analyst at Lipper Inc. He says that investors may be able to get better returns if they select their own mutual funds, but most don't know how to create well-diversified portfolios.
Participation in target-date funds is expected to increase because a growing number of employers are opting to automatically enroll workers into 401(k) plans with a default option of a target-date fund, says Clare Bergquist, director of 401(k) strategies at Charles Schwab Corp.
Investment in the market always entails volatility. But target-date funds vary significantly in how much they move in reaction to the market's swings, according to Tom Idzorek, director of research and product development at Ibbotson Associates.
For example, some funds for retirees have as much as 70% in stocks while others have less than 40%. "Different people have different tolerance to risk," he says. "Some of us are comfortable with volatility and some are not."
Mr. Idzorek expects the number of funds to grow and the funds to become even more individualized. The downside is that it could make the funds more complicated. He says investors should consider not only risk tolerance but also what else they have in their portfolios. For example, he says, investors could pick a more aggressive target-date fund if they expect to receive a pension during retirement.
Jeff Tyler, a senior portfolio manager at American Century Investments, says its income portfolio funds have 45% in stocks. "Maybe you won't be the richest kid on the block, but you won't be the poorest either, and you're much more likely to reach your target," he says.
Mr. Idzorek does, however, note one problem with target-date funds: Investors may set it, forget it and not know until it is too late whether they have saved enough for retirement. He advises not to leave the workplace without running the numbers.
Bottom line: With volatility looking as though it may stay awhile, target-date funds can bring some measure of stability.
Saturday, March 15, 2008
How To Choose Suitable Home Loans
When we decision to sign a contract for the sale, we should start looking for mortgage companies to get loans in accordance with contracts on time transactions, the purchase of the entire housing process to be completed. In your application for housing loans, we must first understand the current market individual banks which products to choose from, according to their own situation to determine which loans, which are a lot of knowledge. Most choose 15, 30 fixed interest rate, or five or seven years of the 30 fixed loan amount. In fact there are dozens of projects for which loans are available, more importantly, the majority of people do not understand there are more and better and the majority of mainstream American society by the project. Below me to introduce them loans:
(A) fixed-rate loans
Fixed-rate loans are locked necessarily mean life remain unchanged, there are usually 10, 15, 30 years and 40 (less), 10 and 15 years APR 20 and 30 years APR basically the same, because they bond with the same period . If higher income and stability, orientation 15, or 30 years. 15 of the 30 low interest rates than 0.5% to 0.75%, but because the relationship between the short period, the monthly payment higher.
( Adjustable rate loans
Adjustable rate loans to 30 years for the loans, the interest rate fixed a certain period of time, and then adjust according to the prevailing market. Adjustable Rate often 3 / 1 ARM, 5 / 1 ARM, 7 / 1 ARM and 10 / 1 ARM, and so on, and five years respectively for three years ? ? fixed seven years and 10 years, and then adjusted once a year. The recent: 5 / 1 ARM Interest only is a very good project, it is 5 / 1 ARM, but the main interest can be paid monthly, pay more money can be automatically reduce the principal, and interest rates than the 5 / 1 ARM, lower is recommended. As in the United States for the frequent moving, a lot of people are willing to choose five or seven years ARM. Because the many state does not allow any prepay penalty, so the money could be paid loans.
© Special loan
Housing loan applications are usually ordinary type (Conventional), there are still some special loans, as the Chinese community rarely used, it refers only to this.
1 FHA loans: Federal Housing Agency-financed loans, targeted at the low-income families apply for the loan; the federal government provides subsidies, generally reflected in the interest rate, the preferential interest rate of 1%. The high average household income, and their loans will be limited, very few people able to meet this standard.
2 VA loans: Veteran Agency subsidized housing loans for veterans, some pine for the terms and conditions, but the interest rate is not much different. 3lot and construction loans: loans for the purchase of that land and build their own house. There are many requirements of such a loan, for instance, the first phase of the requirements of more than 30%, to 2 to 3 years in building houses, or houses to be completed in two years, the interest rate is usually higher than ordinary loans 0.75% ~ 1%, and commercial loans are basically the same.
4 The average interest rates on adjustable loans: MTA (Monthly Treasury Average), also known as Option ARM. MTA loans compared with a lot of other characteristics:
1, low initial interest rates, usually 1%
2, the monthly ? ? every three months or every six months adjusted annual rate
3, the interest rate from the previous 11, the average interest rate decision.
4, have the highest interest rate adjustment restrictions (? 9.95%);
5, per month in five different form of payment options:
a. pay a minimum amount; b. pay interest only; c. 5 / 1 ARM; d. 30 fixed ; 15 years fixed.
6, next year should not exceed the minimum amount of the previous year's 7.5%
7, interest can be deferred for up to 12 months without penalty;
8, all interest can be tax-deductible;
9, as low interest rates and low monthly payments , the first phase, requires less the same circumstances can be more amount of the loan;
10, no credit demand, which poor people credit is particularly appropriate.
The aforementioned characteristics of a recent MTA is the most popular loan
product, which is why Americans more than 50% of the population use the loans
because of this. As far as the real estate broker, they are enthusiastic about MTA,
because they can sell even big house to buyer.
(D) housing loans star - MTA (Option ARM)
MTA is Monthly Treasury Average, also known as Option ARM, can be transferred, the
average rate loans. For the mainstream American society in housing loans, more than
60 percent of the population using MTA. Here to explain all this in detail.
(a) Basic terms
Deferred Interest: If you choose to meet the minimum monthly payments on the interest, the remaining interest will be added to the principal, this would lead to "Negative Amortization."
Fully Indexed Rate: ARM loans with interest rates Margin Index are calculated.
Index: ARM is used to calculate the interest rate adjustment of the economic indicators, usually with the Federal Rate equal to or close.
Introductory Period: Option ARM and Home Equity loans, the lending bank to customer
concessionary period, during this period of time the interest rate will be very low (like when you apply for new credit card ).
Lifetime Interest Rate Cap: ARM loans in the entire course of the loan ceiling for the maximum, usually the existing interest rates +5%.
Margin: lending rate minus the margin Index (Spread), Margin of them is fixed, usually at 2.75 percent.
Negative Amortization: As Deferred Interest, the loan repayment period to table shows the principal will continue to grow.
Payment Change Cap: Monthly loans to the largest percentage of the annual, for example, in 2008 $ 1,000 / month, if the 7% Cap, 2008 should be ? (1000 × N $ 1070/ month).
Recast: Option ARM loans based on interest rates and the remaining unpaid principal amount of years to re-calculate the minimum monthly payments, generally every five years, or more than the initial loan principal amount of 125% (110% NY) will be recast.
Stact Rate: Introductory Period interest rates.
( the basic characteristics of MTA
Option ARM compared with other loans, there are many features:
1, the only super-low interest rates, usually 1% -1.75%;
2, every 12 months adjusted interest rates;
3, and its interest rates from the first 11 months of 20 points in 10 Margin to decide, is always lower than the Prime Rate;
4, the highest interest rate adjustment restrictions (? 9.95%);
5, a monthly five different payment methods available (see below);
6, next year's minimum monthly payments should not exceed the previous year's 7.5%;
7, deferred interest (Interest Deferred) can be up to 12 months without penalty;
8, check-free income, free check deposits as the interest rate of loan applications;
9, all the interest may be tax deductible;
10, no credit requirements;
11, and requires minimal down payment, monthly payments low, under the same conditions can be more amount of the loan.
© The MTA monthly payment option
MTA As mentioned above, there are many advantages, there are different monthlypayment methods to choose from:
1, the minimum amount of pay;
2, interest only;
3 by 5 / 1 ARM pay;
4, the interest rate on 30-year fixed pay;
5, by 15 to pay a fixed rate of interest.
(E) How to apply for refinance loans
When you do refinance, the existing loan is usually paid (Payoff) and the re-signing of a new loan, the new loan may or may not from original bank (Lender).
(a) The purpose of refinancing Refinance said there are three objectives:
1, lower loan rates and / or change the loan period (Rate / Term);
2, cash for its use (Cash Out);
3, removed Loan Insurance (Mortgage insurance).
( The timing of new loans
When the home loan interest rates for low-level, there will be the wave of refinancing, many people for the purpose of lowering interest rates to reduce the monthly payment, or to change from the 30 years of loans to 15 or 10 loans, or adjustable interest rates loans into fixed interest rate, or vice versa. If it is cash out for business investment, or for their children's education or other paid high interest debt such as credit cards, and so on, select the time not so calmly.
To know that the interest rate of housing loans to the general difficult, but in order to know that short period of time (1-2 days) direction, it is necessary to analyze the market dynamics.
© To reconsider the choice of loans
When you re-apply for loans, we must first decide whether or not to pay Closing Cost, if you think that interest rates really low, and your will continue to live a fairly long period of time (3-4 years), then choose to pay the Cost cost-effective, because you will henceforth save the contrary, if you think that interest rates will decline, and also re-No Cost lending opportunities, or will be moving within three years, you will have to calculate how much use the money saved time you pay to offset the Cost. Calculation methods can refer to the table below.
Generally speaking, the Closing Cost broadly equivalent to 1% of the loan amount,large loans <1%, while loans for small> 1%. Of course, when re-choice No Cost loans, the interest rates it should pay Cost higher than 0.25%, equivalent to selling point (1% loan to buy a 0.25% interest rate).
(d) The application procedures for the refinance
Refinance loans VS the purchase of home loans much simpler, but also on loan applications is FullDoc, or NoDoc LowDoc.
1, 2-Pay Checks
2, 2-years W-2
3, 2-monthy Bank Statement
4, Deed (& HUD-1)
5, Drive License
If it is in the same bank (Lender) , for refinance there is no need to provide documents.
(A) fixed-rate loans
Fixed-rate loans are locked necessarily mean life remain unchanged, there are usually 10, 15, 30 years and 40 (less), 10 and 15 years APR 20 and 30 years APR basically the same, because they bond with the same period . If higher income and stability, orientation 15, or 30 years. 15 of the 30 low interest rates than 0.5% to 0.75%, but because the relationship between the short period, the monthly payment higher.
( Adjustable rate loans
Adjustable rate loans to 30 years for the loans, the interest rate fixed a certain period of time, and then adjust according to the prevailing market. Adjustable Rate often 3 / 1 ARM, 5 / 1 ARM, 7 / 1 ARM and 10 / 1 ARM, and so on, and five years respectively for three years ? ? fixed seven years and 10 years, and then adjusted once a year. The recent: 5 / 1 ARM Interest only is a very good project, it is 5 / 1 ARM, but the main interest can be paid monthly, pay more money can be automatically reduce the principal, and interest rates than the 5 / 1 ARM, lower is recommended. As in the United States for the frequent moving, a lot of people are willing to choose five or seven years ARM. Because the many state does not allow any prepay penalty, so the money could be paid loans.
© Special loan
Housing loan applications are usually ordinary type (Conventional), there are still some special loans, as the Chinese community rarely used, it refers only to this.
1 FHA loans: Federal Housing Agency-financed loans, targeted at the low-income families apply for the loan; the federal government provides subsidies, generally reflected in the interest rate, the preferential interest rate of 1%. The high average household income, and their loans will be limited, very few people able to meet this standard.
2 VA loans: Veteran Agency subsidized housing loans for veterans, some pine for the terms and conditions, but the interest rate is not much different. 3lot and construction loans: loans for the purchase of that land and build their own house. There are many requirements of such a loan, for instance, the first phase of the requirements of more than 30%, to 2 to 3 years in building houses, or houses to be completed in two years, the interest rate is usually higher than ordinary loans 0.75% ~ 1%, and commercial loans are basically the same.
4 The average interest rates on adjustable loans: MTA (Monthly Treasury Average), also known as Option ARM. MTA loans compared with a lot of other characteristics:
1, low initial interest rates, usually 1%
2, the monthly ? ? every three months or every six months adjusted annual rate
3, the interest rate from the previous 11, the average interest rate decision.
4, have the highest interest rate adjustment restrictions (? 9.95%);
5, per month in five different form of payment options:
a. pay a minimum amount; b. pay interest only; c. 5 / 1 ARM; d. 30 fixed ; 15 years fixed.
6, next year should not exceed the minimum amount of the previous year's 7.5%
7, interest can be deferred for up to 12 months without penalty;
8, all interest can be tax-deductible;
9, as low interest rates and low monthly payments , the first phase, requires less the same circumstances can be more amount of the loan;
10, no credit demand, which poor people credit is particularly appropriate.
The aforementioned characteristics of a recent MTA is the most popular loan
product, which is why Americans more than 50% of the population use the loans
because of this. As far as the real estate broker, they are enthusiastic about MTA,
because they can sell even big house to buyer.
(D) housing loans star - MTA (Option ARM)
MTA is Monthly Treasury Average, also known as Option ARM, can be transferred, the
average rate loans. For the mainstream American society in housing loans, more than
60 percent of the population using MTA. Here to explain all this in detail.
(a) Basic terms
Deferred Interest: If you choose to meet the minimum monthly payments on the interest, the remaining interest will be added to the principal, this would lead to "Negative Amortization."
Fully Indexed Rate: ARM loans with interest rates Margin Index are calculated.
Index: ARM is used to calculate the interest rate adjustment of the economic indicators, usually with the Federal Rate equal to or close.
Introductory Period: Option ARM and Home Equity loans, the lending bank to customer
concessionary period, during this period of time the interest rate will be very low (like when you apply for new credit card ).
Lifetime Interest Rate Cap: ARM loans in the entire course of the loan ceiling for the maximum, usually the existing interest rates +5%.
Margin: lending rate minus the margin Index (Spread), Margin of them is fixed, usually at 2.75 percent.
Negative Amortization: As Deferred Interest, the loan repayment period to table shows the principal will continue to grow.
Payment Change Cap: Monthly loans to the largest percentage of the annual, for example, in 2008 $ 1,000 / month, if the 7% Cap, 2008 should be ? (1000 × N $ 1070/ month).
Recast: Option ARM loans based on interest rates and the remaining unpaid principal amount of years to re-calculate the minimum monthly payments, generally every five years, or more than the initial loan principal amount of 125% (110% NY) will be recast.
Stact Rate: Introductory Period interest rates.
( the basic characteristics of MTA
Option ARM compared with other loans, there are many features:
1, the only super-low interest rates, usually 1% -1.75%;
2, every 12 months adjusted interest rates;
3, and its interest rates from the first 11 months of 20 points in 10 Margin to decide, is always lower than the Prime Rate;
4, the highest interest rate adjustment restrictions (? 9.95%);
5, a monthly five different payment methods available (see below);
6, next year's minimum monthly payments should not exceed the previous year's 7.5%;
7, deferred interest (Interest Deferred) can be up to 12 months without penalty;
8, check-free income, free check deposits as the interest rate of loan applications;
9, all the interest may be tax deductible;
10, no credit requirements;
11, and requires minimal down payment, monthly payments low, under the same conditions can be more amount of the loan.
© The MTA monthly payment option
MTA As mentioned above, there are many advantages, there are different monthlypayment methods to choose from:
1, the minimum amount of pay;
2, interest only;
3 by 5 / 1 ARM pay;
4, the interest rate on 30-year fixed pay;
5, by 15 to pay a fixed rate of interest.
(E) How to apply for refinance loans
When you do refinance, the existing loan is usually paid (Payoff) and the re-signing of a new loan, the new loan may or may not from original bank (Lender).
(a) The purpose of refinancing Refinance said there are three objectives:
1, lower loan rates and / or change the loan period (Rate / Term);
2, cash for its use (Cash Out);
3, removed Loan Insurance (Mortgage insurance).
( The timing of new loans
When the home loan interest rates for low-level, there will be the wave of refinancing, many people for the purpose of lowering interest rates to reduce the monthly payment, or to change from the 30 years of loans to 15 or 10 loans, or adjustable interest rates loans into fixed interest rate, or vice versa. If it is cash out for business investment, or for their children's education or other paid high interest debt such as credit cards, and so on, select the time not so calmly.
To know that the interest rate of housing loans to the general difficult, but in order to know that short period of time (1-2 days) direction, it is necessary to analyze the market dynamics.
© To reconsider the choice of loans
When you re-apply for loans, we must first decide whether or not to pay Closing Cost, if you think that interest rates really low, and your will continue to live a fairly long period of time (3-4 years), then choose to pay the Cost cost-effective, because you will henceforth save the contrary, if you think that interest rates will decline, and also re-No Cost lending opportunities, or will be moving within three years, you will have to calculate how much use the money saved time you pay to offset the Cost. Calculation methods can refer to the table below.
Generally speaking, the Closing Cost broadly equivalent to 1% of the loan amount,large loans <1%, while loans for small> 1%. Of course, when re-choice No Cost loans, the interest rates it should pay Cost higher than 0.25%, equivalent to selling point (1% loan to buy a 0.25% interest rate).
(d) The application procedures for the refinance
Refinance loans VS the purchase of home loans much simpler, but also on loan applications is FullDoc, or NoDoc LowDoc.
1, 2-Pay Checks
2, 2-years W-2
3, 2-monthy Bank Statement
4, Deed (& HUD-1)
5, Drive License
If it is in the same bank (Lender) , for refinance there is no need to provide documents.
[ISN] NSA extends access control to network storage
http://www.gcn.com/online/vol1_no1/45944-1.html
By Joab Jackson
GCN.com
03/10/08
PHILADELPHIA — The National Security Agency is leading an effort to
extend its access control work into the arena of network file storage.
The effort involves integrating NSA's Flask mandatory access control
(MAC) architecture — now the basis of Security-Enhanced Linux (SELinux)
— into the Network File System (NFS) protocol widely used for
network-attached storage devices.
David Quigley of NSA's National Information Assurance Research
Laboratory presented the latest work on the project, called Labeled NFS
at the 71st meeting of the Internet Engineering Task Force this week in
Philadelphia. IETF currently oversees the NFS protocol.
NSA initiated and led the effort to develop SELinux, an implementation
of NSA's Flask MAC architecture for Linux. With MAC, programs and users
are assigned attributes such as security levels. Whenever a program
spawns a process thread or calls a file, the attributes are checked
against the organization's authorization rules.
By deploying MAC, organizations can ensure that machine intruders don't
hijack programs to execute malicious tasks, and they can prevent
employees from accessing documents they don't have permission to view.
Labeled NFS extends those features across the network. By having NFS
handle MAC labels, someone using a trusted computer can read and write
files and execute programs that reside on NFS-based network storage.
Today, the Flask architecture requires that all programs and files be
stored locally.
Labeled NFS can work in smart mode, which allows the file server to make
access control decisions, or dumb mode, which means it takes
instructions from the client machine.
James Morris, principal software engineer at Red Hat, published the
first recommendation for this approach, originally called Security
Enhanced NFS, last summer. The company incorporates SELinux into its Red
Hat Enterprise Linux operating system.
In addition to SELinux, Labeled NFS could also support Solaris Trusted
Extensions, TrustedBSD and Security Enhanced Darwin, a MAC-enhanced
version of the Apple operating system.
___________________________________________________
Subscribe to InfoSec News
http://www.infosecnews.org/mailman/listinfo/isn
[ISN] Cutting-edge PDP Tech Leaked to Chinese Firm
http://english.donga.com/srv/service.php3?bicode=040000&biid=2008030681038
dongA.com
March 06, 2008
A new plasma display panel technology developed by LG Electronics has
been leaked to a Chinese company, dealing a loss of one trillion won, or
more than one billion dollars, to the Korean economy.
Seoul prosecutors indicted yesterday a former LG manager for corporate
espionage. The 49-year-old man, identified only by his last name Jeong,
allegedly leaked the new technology to Changhong-Orion PDP-Chaihong of
China.
Two other LG employees also face charges of corporate espionage.
Sources said Jeong copied 1,182 files on his portable hard disk in July
2005 just before leaving LG. The files contained key pieces of the PDP
technology, including information on equipment arrangement and setup in
the plant and what types of equipment were used.
The Chinese company hired Jeong in February last year, giving him an
annual salary of 300,000 dollars, an apartment and a vehicle. In return,
he handed over secret information on LG.
Between March and September last year, the other two suspects
collaborated with Jeong and provided him with sensitive information via
e-mail and CD-ROM on the plants power structure and construction
blueprints. Upon receipt, Jeong gave the information to the Chinese
company.
In February last year, Jeong moved to Szechuan, where the Chinese
company was building a plant, to consult on technical matters.
He dropped by Korea to visit his family this year, and was arrested Jan.
19, three days prior to his scheduled return to China to help
Changhong-Orion PDP-Chaihong install production equipment.
The technology Jeong sold can dramatically improve PDP production,
enabling the taking of eight panels from a single glass. LG Electronics
has been producing plasma panels with the new technology since July last
year, and is only the third company to have it along with Samsung SDI
and Matsushita of Japan.
Changhong-Orion PDP-Chaihong was formed after Changhong Electric of
China bought Orion PDP of Korea in 2006 to acquire PDP technology. The
Chinese company will start making plasma panels from this December with
the LG technology that it bought from Jeong.
Copyright 2002 donga.com. All rights reserved.
___________________________________________________
Subscribe to InfoSec News
http://www.infosecnews.org/mailman/listinfo/isn
Subscribe to:
Posts (Atom)
