Although it leads in market share locally, customers may believe it is less safe
Wachovia’s well-known financial woes and its pending acquisition by Wells Fargo are providing an opportunity for competitors to do their darnedest to capture some of the Charlotte bank’s customers.
“You have one of the best franchises in the Carolinas being acquired by a West Coast bank,” said investment banker Bill Wagner of Howe Barnes Hoefer & Arnett in Raleigh. “It’s an opportunity for all banks.”
Wachovia is an especially enticing target in the Triangle, where it ranks first overall in market share based on deposits — No. 1 in the Raleigh-Cary metropolitan statistical area and No. 2 in the Durham MSA — according to the Federal Deposit Insurance Corp.
“You hate to think you are profiting when someone else is down, but yes, it will benefit us,” said Gregg Strickland, CEO of Patriot State Bank in Fuquay-Varina.
Wachovia, as well as most of the other large banks in the area, has already seen its market share slowly erode in recent years as expansion-minded community banks have encroached on its turf.
“With our [leading] market share, we always have a target on our back,” said Jack Clayton, Wachovia’s regional president. He also contends deposit data don’t give the complete picture, because they don’t include money that customers invest through Wachovia.
Industry analysts say it’s unlikely competitors will try to lure Wachovia customers by substantially raising interest rates on deposits or lowering fees. Nor are they likely to resort to gimmicks.
“What they are selling is security and strength,” said Buddy Howard of Equity Research Services, a Raleigh firm that tracks the banking industry. “They are not going to get a customer to deposit a bunch of money with you for a free toaster, if [the customer] doesn’t think their money is safe.”
Current ad campaigns by several local banks pointedly focus on financial strength, safety and stability. The ads don’t mention Wachovia, but the underlying message is that “these are things that do not apply to … the Wachovia of 2008,” Howard said.
A SunTrust ad that appeared in The News & Observer and elsewhere even goes so far as to say, “When you’re ready to switch accounts, we’re here to help.”
John Stallings, who heads SunTrust’s Central Carolinas region, said the campaign isn’t aimed solely at Wachovia customers. Rather, he said, the volatility in the banking industry is putting a lot of customers in “shopping mode.” SunTrust is No. 1 in market share in Durham and has more branches in the Triangle than any other bank.
Stallings said that, beginning last year, SunTrust also stepped up its efforts to call on wealthy individuals and businesses who aren’t clients in hopes of converting them.
“The way we win business is where we’re in front of clients and they have a chance to hear our story, our capabilities, our expertise, etc.,” Stallings said.
Read More:News & Observer
Make Smart Spending, Saving a Family Resolution
(ARA) – With the economic crisis hitting everyone in the pocketbook, it’s more important than ever for parents to talk to their children about how to manage money. New Year’s — a prime resolution time for millions of Americans — is a great time for children and their parents to learn better spending and savings practices together.
Forty-six percent of American families hold a credit card balance according to the U.S. Census Bureau’s 2004 statistics. And in 2007, more than 800,000 bankruptcy cases were filed in the United States.
Managing money is a family affair. By resolving to set financial goals and working together to practice management, families can enjoy independence and security. “Parents and their children can learn from and challenge each other to plan better ways to use the money they earn and save,” says Scott Oberkrom, director of Community Investments at American Century Investments.
As families sit down to discuss their financial resolution, they need to determine how the changes will affect each member. Once the resolution is finalized, post it in a public place so all members can see it every day. Visit www.YesYouCanOnline.info to learn more on how to make sure resolutions stick.
Some tips families can incorporate into their smart money management resolution include:
1. Financial responsibility starts with examples from home.
Parents need to evaluate their budgets and make wise spending choices — don’t buy a new speed boat if you just told the kids you couldn’t afford to get them a new iPod. Share the family budget with your children to demonstrate how money doesn’t grow on trees and the family has regular expenses that must be paid.
2. Set up allowances for children.
Once your children are old enough to understand basic math, an allowance can help them learn how to budget, spend and save. Parents can also set up allowances for themselves. Showing the children that Mom and Dad fit haircuts, buying lunch or shopping for new clothes for themselves within a weekly cash budget gives children the best example of wise money management.
3. Take a trip to the bank and organize savings accounts.
Children — and many adults, it seems — need to be taught how to save money. Take the whole family to the bank to set up savings accounts. Decide as a team what goal you’re saving toward. Parents should consider saving to help secure the family in case of a financial crisis. Kids’ accounts could be earmarked for college tuition or to buy their first car.
4. Teach kids creative ways to earn money.
A hobby could become an income-generator for all members of the family. Perhaps you have a tremendous green thumb. And maybe you have your children help tend the vegetables and pull the weeds in the garden. The entire family can turn this hobby into a small income by taking the produce to farmers markets or setting up a neighborhood stand.
All New Year’s resolutions take work, but they can be accomplished if all family members share in the effort. Having all family members work together, giving encouragement and little reminders, also can help you stay on track.
“Setting goals, both at New Year’s and throughout the year, is one way people can achieve their dreams,” says James Stowers, founder of American Century Investments. “As I reflect on what I have learned through the years, I am convinced that anyone — and I mean anyone — can become what they are absolutely determined to be.”
Make 2009 the year your family resolves to take charge of your money management together. Visit www.YesYouCanOnline.info for additional tips.
Courtesy of ARAcontent.com
(NewsUSA) - Maintenance costs are up, home values are falling and states are seeing more foreclosures than sales. But terrible times for homeowners make for terrific investment opportunities.
Why? The market sees constant ups and downs. Buying when the market’s high means greater upfront costs. And because the market cannot rise indefinitely, property investors must constantly watch for the bubble to pop.
In a down market, the question is not “if,” but “when” the market will improve. If investors can buy properties at rock-bottom prices, they can afford to maintain the home until the market improves. At that point, the investor can sell the home both to recoup their buying and operating costs and to make a profit.
Some companies are looking to profit on the down housing market. Deer Park Development Corporation, a Nevada-based company, is purchasing foreclosed homes in Arizona, Nevada, California and Florida, some of the areas most affected by the down market. Nevada, for example, sees more foreclosures than any other state -; million-dollar properties can be bought for half their building costs. Between May and June, Californian banks foreclosed on 40 percent of the homes on the market.
Deer Park Development Corporation’s agents and brokers draw on 35 years of experience -; they have seen down markets before, so they can easily identify promising properties.
When Deer Park Development Corporation finds a home that it wants to acquire as an investment, it works with the homeowner or bank to purchase the home at a 50 percent discount.
But the company does not profit at homeowner’s expense. It negotiates with homeowners so that people can rent their homes after the sale. When the original homeowner’s lease expires, Deer Park Development Corporation allows former homeowners to repurchase their properties for a predetermined price. In this way, the company invests in the down market while also helping down-and-out homeowners.
Currently, the company is searching for investors. For more information, visit deerparkdevelopmentcorp.com.
Rising prices, depreciating property values and stagnant salaries are forcing many American homeowners to sell their homes.
(NewsUSA) - For many Americans, good credit isn’t here to stay -; rising costs are putting many formerly well-to-do homeowners behind on their mortgage payments.
In April 2008, delinquencies on prime loans, a $12 million dollar market, doubled. And the economy doesn’t look to have an upswing anytime soon. Home prices continue to drop. In July, the unemployment rate reached a four-year high. Homeowners face higher bills but make less money.
Adjustable mortgages, which were appealing when property values were on the increase and interest rates were low, now mire many Americans in financial danger zones. Some borrowers will see their interest and principal payments more than double even as their homes lose value. Many homeowners will not be able to cover their debts even if they sell their homes.
At the same time, banks feel more reluctant to approve or refinance loans. In this environment, default and bankruptcy rates look likely to increase. Between April and July, California alone reported 121,000 notices of default on loans.
Some companies are looking to navigate the down housing market, not only to turn a profit, but also to help homeowners recover their homes. For example, Deer Park Development Corporation, a Nevada-based company, buys foreclosed homes in Arizona, Nevada, California and Florida. With over 35 years of experience in real estate, the corporation’s brokers and agents know how to identify the homes that will turn a profit.
When the company finds a promising home, it works with the homeowner or bank to purchase the home at a 50 percent discount. The company negotiates with homeowners so that people can rent their homes after the sale. When the lease expires, Deer Park Development Corporation allows former homeowners to repurchase their properties at a predetermined price.
Currently, the company is searching for investors looking to profit from the down housing market. For more information, visit http://www.deerparkdevelopmentcorp.com .
Business debtors should seek professional help.
NewsUSA) - For any business, expenses add up. Owners must juggle payrolls, rents, taxes, and supplier debt -; along with their business loans. Surprisingly, many business owners do not realize that proven steps are available to assist their dilemma of what to do when bills can’t be paid.
In a tough economy, a business’s finances can change by the hour. Struggling business owners dread facing creditor calls. Owners need to change their mentality; yes, debt can be a problem, but it’s a problem that can be approached and solved with strategic thinking.
Professionals have come up with six steps that help identify plans for business debtors to use while increasing cash flow. Business owners in debt should discuss these steps with their lawyer, accountant or trusted advisor to help determine the most beneficial plan.
Listed from most to least desirable are the courses of action your business can use to resolve its debt problems.
- Rehabilitation. Business owners can save their businesses and pay their debts through extreme cost cutting.
- Refinancing. Business owners can seek new terms for loans, like lower payments that can help free up capital for their business.
- Debt resolution. Owners can delay or attain a more satisfying settlement with their creditors through use of an Authoritative Third Party.
- New equity. Businesses can exchange ownership for capital.
- Sale. Owners can sell their business and use the money to pay off debts.
- Liquidation. Owners can sell parts of their business or their whole business or declare bankruptcy, which sadly will affect owners, employees and their spouses.
Services exist to help businesses recover from debt as an alternative to bankruptcy. One company, Performance Source Inc. (www.performancesourceinc.com), negotiates directly with creditors, enabling a business owner to save time and money and reduce stress. Negotiation results in debt being reduced so that the business may continue and grow with a cleaned-up balance sheet.
Business owners should reach out for professional help before debts become unmanageable. With the right service and correct plan, a business owner can minimize debt while allowing him to do what he does best -; running his business.
As prices increase, money buys less. But one dollar a day can become a nest egg in an IRA.
(NewsUSA) - Americans across the country have noticed that when it comes to groceries and gas, their money purchases less.
The amount of money that used to purchase two gallons of milk now purchases one. Gas prices have almost doubled, increasing costs for those workers with long commutes. Americans find themselves rebudgeting, though their income remains stable.
But with a little financial savvy, Americans can stretch their dollars. Simple changes, like purchasing generic puffed rice instead of name-brand cereals, clipping coupons or buying dried goods in bulk can save money at the grocery store. Keeping tires properly inflated and driving the speed limit can help increase vehicles’ fuel efficiency, leading to lower costs at the gas pump.
The best way to make a dollar more valuable? Save it. In planning for retirement and future expenses, Americans can turn their dollars into considerable nest eggs.
Financial advisors and columnists agree -; saving small amounts of money sooner results in larger net yields than saving more later in life. At age 25, someone saving 2,500 dollars a year in an individual retirement account (IRA) with 6 percent interest will save $437,376 by age 65. Someone starting to save at age 35 will have to put away $4,865 each year to make the same amount by age 65.
It’s never too early -; or late -; to begin saving. One company, Save252, allows customers to contribute as little as a dollar a day, 265 days a year, towards their retirement.
Users specify the amount of money they want to contribute to a regular account or Roth IRA. Save252 automatically withdraws that amount from users’ checking accounts, then transfers the funds. Customers remain in complete control of their savings -; they can, at any time, change the amount of money they want to save, or they can stop payments.
Even people living in lower tax brackets can afford to save for retirement with Save252.
For more information and more money-saving options, go www.save252.com.
(ARA) - From flowers to guest lists, engaged couples spend months planning the perfect wedding. After the vows are said and the reception is complete, most newlyweds are ready to relax. But there are several steps newlyweds should take before their happily ever after can begin.
“Settling into life as a married couple takes some work,” says Lindsey Leesmann, a recent newlywed and contributor to YesYouCanOnline.info. “If you’re taking your husband’s last name, you must complete the name change in several places. You also have to discuss managing money as a couple and learn how to live together.”
Leesmann offers the following to-do list for newlyweds changing their last names:
Obtain a copy of your marriage license
If you stated you’d be changing your last name when purchasing your marriage license, you’ll receive a copy of the license in the mail. This license should be taken to each location on your path toward a new last name.
Go online
Next, acquire a new Social Security card and update your passport. Complete Form SS-5 and take it to the local Social Security office to obtain a new card. The form can be found on the Social Security Administration’s Web site (www.ssa.gov). Your passport can be changed by completing Form DS-5504, found at www.travel.state.gov.
Drive to the DMV
The next stop for newlyweds is the local Department of Motor Vehicles. Each state is different, so make sure to bring all the items required to get your name changed and renew your driver’s license.
Check in at your bank
Most banks simply need a copy of the marriage license and the account holder’s signature to approve a name change. Some may also require your spouse to be present.
Drop by the post office
To change your name at the post office, just pick up a change of address envelope, fill it out and mail it back.
Once the name change is complete, newlyweds can focus on managing money as a couple.
“Money is often a tricky topic for new couples,” says Sam Goller, award-winning author of “Yes, You Can… Achieve Financial Harmony.” “But it’s important to start communicating about money at the beginning of your marriage.”
Goller offers the following suggestions for newlyweds working to manage their finances as a couple:
Determine priorities
Prior to creating a financial plan, talk about your histories with money and what’s most important to each of you when it comes to money.
Find missing dollars
You have to understand your spending habits before you can spend money in a way that helps meet your goals. Consider keeping a spending journal to find out where your money really goes.
Choose a system that works for you
You may prefer to sit down each month as a couple to pay bills and develop a monthly budget. Or maybe one of you is better at handling expenses and prefers to do it alone. Find a system that works with your needs.
“The key to managing money as a couple is to never stop talking,” says Goller. “With shared determination, a plan and open communication, newlyweds have the power to improve their financial position both now and well into retirement.”
For more information on managing money as a couple, visit http://www.YesYouCanOnline.info .
(NewsUSA) - As rising prices leave Americans low on cash, many turn to credit cards to cover expenses. But people shouldn’t use credit cards if they cannot pay credit card bills -; bad credit ratings can create lifelong, devastating effects.
Banks, financial institutions and businesses use credit card ratings to establish consumers’ reliability. People with no or bad credit can find themselves unable to get car or home loans. Landlords and potential employers check credit ratings, too. So, Americans without good credit can have trouble renting an apartment or getting a job.
But people looking to recover from bad credit do not need to declare bankruptcy. With some creativity and judicious spending, people can establish or recover good credit ratings -; and end up with some high-end electronics to boot.
Companies now offer low-rate financing options, which help people buy products while also building good credit.
One company, Pay by the Day (www.abuckaday.com), allows customers to finance IBM computers, Toshiba notebooks, JVC televisions and Canon digital cameras -; along with other electronics, sporting goods and furniture -; for as little as a few dollars a day.
Buyers determine a set amount of money, which is automatically withdrawn from their bank accounts to go towards their purchase. Pay by the Day sends products to homes with no extra money down. The service has no hidden costs. Once people pay off their purchases, they own them completely.
Pay by the Day will approve customers for financing, even if they don’t have good -; or any-; credit ratings. In purchasing a computer or camcorder through Pay by the Day, people can establish or improve their credit ratings.
Having a credit card -; and the credit rating that comes with it -; has become a necessity. For people finding their loan applications and resumes continuously declined due to bad or nonexistent credit, financial recovery can seem endlessly frustrating. But with companies like Pay by the Day offering low-financing options, buying a laptop or television now can help Americans rent apartments, buy homes and cars, or get jobs later in life
The Wachovia Foundation has awarded a $10,000 grant to The Rex Hospital Foundation to support the renovation and expansion of Rex Cancer Center. The improvements to Rex Cancer Center will encompass the values long associated with Rex: high-quality care with the best technologies and clinicians available; a supportive and nurturing environment for the patient and family; and a focus on the whole person. Some of these improvements include: Expanded space for new medical equipment and medical treatments; a state-of-the-art linear accelerator and tomotherapy system, increased space for the cancer resource center and touch-screen kiosks for patient education.
“The Wachovia Foundation is pleased to provide a grant to The Rex Hospital Foundation for the renovation and expansion of Rex Cancer Center,” says John W. Ward, senior vice president for Wachovia. “Rex is an important part of the community, and continues to grow as the health care needs of our community become greater. Wachovia is proud to support this growth as a partner with Rex.”
Rex Cancer Center is devoted to preventing and treating cancer through cutting-edge therapies and individualized patient care. At the foundation of Rex Cancer Center are outstanding radiation oncology and hematology/oncology services. Rex provides cancer patients and their families with educational programs, screening programs, complimentary workshops, support groups and individual counseling. Rex diagnoses 1,800 new cancer cases each year. About 850 to 900 of these patients will come to Rex for cancer treatment, with 4,000 chemo treatments and more than 16,000 radiation treatments. Rex Cancer Center has been designated by the American College of Surgeons as a nationally accredited comprehensive community cancer center
Read More:CarolinaNewsWire
(ARA) - Money can be a complicated aspect of marriage, especially when it comes to merging finances. Finding a system that works for both individuals can help couples achieve financial harmony.
“Figuring out a fair and comfortable way to share responsibilities and expenses can be challenging,” says Sam Goller, award-winning author of “Yes, You Can… Achieve Financial Harmony” and contributor to YesYouCanOnline.info. “But it’s essential for a healthy relationship. Couples should look at their monetary values and beliefs and work together to decide what type of system allows them to achieve their dreams
as a couple.”
Talking about finances can be difficult for many people. Jim Stowers, co-author of the new book “Yes, You Can… Reach Your Goals and Achieve Your Dreams,” recommends asking questions to begin a dialogue.
“Asking questions is a good way to toss the conversational ball into the other person’s lap,” says Stowers. “It not only helps you learn their point of view, but also what they believe and the direction their thinking is taking.”
Goller suggests couples ask themselves the following five questions to help facilitate a discussion about spending and saving as a couple.
1. How many bank accounts will we have?
2. Who will pay the bills?
3. Are we getting our money’s worth for what we buy?
4. What are our money histories — what did our parents teach us about money?
5. What dreams do we have as a couple? What do we need to do financially to accomplish these dreams?
A couple’s answers to these questions will help define a financial system that provides a foundation on which the relationship can grow. Goller offers three options for couples looking to merge their finances:
The Joint Account — Whether checking or savings, this type of account allows couples to combine all of their financial resources. This option can make life easier for some couples by centralizing the household finances. However, if one person is in charge of managing the account, the other person can feel left out of the financial picture. It also requires that both partners diligently share when they use funds out of the account.
Separate Accounts — Some couples prefer the autonomy of separate accounts. With this system both people are responsible for maintaining their own account, which may include paying some of the bills. If couples choose this option, Goller cautions that individuals may need to work harder to be equally involved in the financial relationship.
“Just because you have separate accounts, doesn’t mean your financial decisions have separate consequences,” says Goller. “You still need to meet on a regular basis and discuss how you are using your money to achieve your common goals.”
A Combination of Accounts — A combination of joint and separate accounts is another viable alternative. This option allows both partners to contribute while maintaining their autonomy. Couples often determine a percentage of income that will be put in both the joint and separate accounts. Individual accounts can be used for personal purchases. The joint account can contain funds for bills and joint purchases. With a clear definition of who’s paying which bills couples can work together to bring financial balance and emotional harmony to the relationship.
“Regardless of the financial style a couple chooses, communicating about finances is key,“ says Goller. “The more you discuss how and why you each spend money, the deeper and stronger your relationship will grow.”
For more information on merging finances as a couple and achieving financial harmony, please visit http://www.YesYouCanOnline.info
