A new start-up referred to simply as, Bank Simple, is in the running to change the way you bank.  It wants to make the relationship between your money and the institution itself, less....web like.  Where you never really know where your money is that you deposited for completing online surveys; because it's currently being lent at a 12% premium to the return you're getting on it in the first place.  All of these shadowy ways that banks make money on consumer deposits and risk of defaults is part of the reason that our global economy is in the state it is currently in. But, Bank Simple is here to alleviate that problem with transparency and ease.

Bank Simple is unique because it motto is, "don't suck."  This alone is reason enough for me as an consumer to lend an ear to what they are attempting to accomplish.  They are shooting for a bank that doesn't charge you hidden fees, or have lengthy and unreasonable customer service policies, a bank that realizes that if it takes extreme care of it's customers, money will undoubtedly come streaming in. 

In taking care of the everyday human being, Bank Simple offers no overdaft fees, no complicated and hidden product costs. It gives you one card that allows you to pull from checking or savings, or make purchases on a credit basis.  And makes it easy for you to deposit checks by allowing you to simply take a picture of it with your phone.

Bank Simple

Real-time Collaborations

The wave is about to overwhelm the people of the world as Google Wave is opened to the public. This move marks the day that collaboration (professionally and socially) is changed forever.

When Google first debuted the wave communications platform, it was said that it would make all communications between parties more efficient. That goes without saying that two colleagues, on opposite sides of the planet, who can work on a looming project in real time will become increasingly valuable over the next few years.

Today is the day that social becomes closer than it was to being fully integrated both inside and outside of companies, no matter how big. I've used wave to play sudoku and chess with friends. And also to work on a project with a team back home, while I was on vacation in Puerto Rico. This platform is phenomenal and from what I've read about the updates...this Google labs product has gotten even better over the past 9+ months.

Youtube entering the fray

With the advent of potentially losing blockbuster to the rules of modern business, keep up with the times (or else), Youtube has recognized a possible market on in its own video viewing platform.

This market is movies for rent. From the time that Youtube started as an independent product, to now where it is owned by the tech giant Google; it has sometimes struggled to monetize it's large audience. Well that may soon change.

In January Google made a widely unnoticed move to rent 5 independent films on the Youtube website, possibly to gauge the demand from it's marketplace. If this test proved worthy enough to roll out a full-blown movie renting platform, the site could see a dramatic increase in revenue through all of its loyal followers. There are two keys to its future success: 1) Will Google be able to strike an advantageous deal with film companies to use their content on its website. 2) Will Google be able to provide a value to customers that exceeds Hulu, Redbox, Amazon, and Netflix (to just name a few).

If Youtube can offer these two keys there could be a major additions to the "black" of Google's bottom line. Keep your eyes on the lookout for more companies to start the foray into more immediate gratification type of offers. Currently Apple is the king and there are a few other companies that could be nipping on its heels in the next 2-3 years.

The success of these companies affect the end consumer more than anything else. Everyone knows that the more fierce the competition, the more the leaders have to proverbially "step their game up." If they do not then Myspace, AOL, and Blockbuster's will be happening all over the place. And when these companies do step up, the consumer gets their best effort at a valuable product. When consumers are happy, the financial statements look more appealing. When the financial statements are more appealing, investors absorb the benefits.

Since I am an investor, I welcome the advent of fierce competition in capitalist markets. In the end everyone is happy. Especially the everyday man investing in an early retirement.

Welcome to a new era

First Google, now Microsoft. This country's two power house companies are being challenged, finally.

Google:
According to Hitwise, during the week of March 8th Google was bested by a company that originally no one saw coming. Born from a night full of hacking and coding just a few years ago, Facebook posted a slim lead over Google in terms of visits to the site. This move marks the first time that a social networking site has bested the search engine giant. And it reveals that whether you like it or not social networking sites and applications are here to stay. Facebook's superiority was short lived as Google regained it's normal spot as the world's most visited site. But, if you truly think about it, that was the day when Facebook changed the world. That was the day that the culmination of being featured on smart phones, t.v. screens, video game consoles, and many music sites came to fruition. Consider the fact that when this company goes public, will you be ready? Investors generally get caught up in the semantics of established companies, in the process they miss out on the high-reward of a newly public, but established company. I think that history will be the same here so don't miss out on a chance to be apart of it. If Facebook goes public, be ready.

Microsoft:
Microsoft even as a software company has been pegged as the leader in it's market. However, it's reluctance to delve into the physical/hardware until recently (this year they are debuting Kin 1 and Kin 2 smart phones), has maybe hindered the chance it has to stay in the lead. On the heels of Microsoft is Apple. Apple is a company for the young crowd, and even though many business still stick with Microsoft operating systems, Apple's market capitalization is only $46 billion away from vying for the pole position in technology. Apple may very well complete the slaying of Goliath in the next year or so depending on the success of it's new iPhone OS 4.0 and the ubiquitous iPad.

Diversifying your portfolio is important in building and maintaining wealth, I would recommend that Apple and Facebook (if it goes public) are in the line up. I can't guarantee it...but these companies are on their way to being relevant for a very long time. Only time will tell if they stay on that path.

A different kind of insurance

History has been made...last week a sweeping health-care reform was passed. And whether you benefit (children being on parents' insurance until age 26), or lose out (business owners required to provide minimal amount of health insurance), the end goal should be to build wealth over your lifetime. When you build wealth by simply spending less than you make and saving the rest, then self-insurance isn't that far-fetched.

Self-insurance is described as a way of managing risk by minimizing insurance expenses and cash flowing "predictable" future losses. In many ways becoming self-insured is the only way to not be tricked by insurance companies. "Tricked" as meaning higher than average premiums/deductibles for differing levels of income earners. Although it is rare that anyone becomes exclusively self-insured, coupling minimum insurance policies with responsible financial management will indeed allow you save and invest more.

Insuring your self, or senior family member, will especially come in handy if you incorporate it early on in your financial planning. Incorporating early can help to afford the $10,000 a year health care for the elderly (whether nursing home or in-house nurse) and not have to go deep into debt in the process. Another way to self-insure against the cost of health-care is to save dollars in tax deferred or tax-free financial instruments. In states that don't have a state income tax, investing in short term municipal bonds. Municipal bonds will give a tax advantage while also allowing cash to grow faster than if it were in regular savings accounts. The taxes on interest is the exact same federally but with municipal bonds (in states without state income tax) you typically earn a higher rate of return than with commercial banks.

There are many other ways to plan financially for proverbial "rainy" days, here are just a couple of ideas to get your brain moving. With simple research into all of the different ways to grow your money, along with a knowledge of how these paths affect your taxes, you can create a customized savings and allocation plan that fits your family's needs.

Creativity in your planning is a must have. There are some forms of investing for the future that require outside-of-the-box thinking in order to hedge against unexpected losses.

Paradise Lost

It's only been a little while since Kraft secured the capitalization to buyout Cadbury PLC; and there are already allegations similar to those of when Bank of America merged with Merrill Lynch.

U.K. regulators are looking into comments made by Kraft executives that may have misled those that voted in approving the takeover bid. The alleged comments deal with the closing of a plant that Kraft was originally against. With all of the domestic ill will brewing during the takeover, closing the plant and displacing the jobs won't help endear Kraft to their new countrymen.

I believe that if a company says they are going to do something, they should do it. However, when a company merges with another, there may be unforeseen losses and costs, especially with an international merger. I seriously doubt that they will face severe legal repercussions, but as all companies know,corporate responsibility and public opinion go hand-in-hand.

And since the public affects their bottom line, Kraft should tread very carefully when making future decisions for Cadbury. They took on a lot of debt to finance the acquisition and it would be sad to see it turn into dead-weight over the next decade.

The Upgrade to Globalization

Google is taking steps to make the phrase “it’s a small world”, more prevalent than ever. Recent rumors indicate that the Nexus One may be subject to a ground-breaking upgrade. This upgrade will allow people speak in languages that they’ve never even heard, more or less learned. The only downside is that it may ride younger generations of studying about cultures other than their own. This upgrade will essentially translate a user's first language, to any language that he wishes. Yes, that means that if I(an english speaking person) wish to speak to someone in Finland (in Finnish) Google can make it so. Maybe not in live conversation, but the delay will certaintly beat having to refer to a Finnish dictionary for every word.

The future of collaboration is possibly at hand, people. An age where people all over the world can almost instantly know what anyone else is saying. The effects on business and education will be limitless... From a business aspect, there would no longer be the need to hire employees that speak the native language of a foreign country I wish to serve. I could call them up, and have a frank conversation explaining why Cloud 9 is the way to go. But, what happens if I end up face to face with my subordinates, or clients in China. I would need the aid of the Nexus One in order to speak Mandarin to someone standing 5ft away from me. That to me, will ruin customer relationships with my company. I believe my company should have invested the time and money to find employees that can understand my foreign clients. How arrogant would I have to be to think, that just because Google gave me an amazing gift, I can all of a sudden give a Chinese client better financial counsel than someone native to their situations. Can you imagine how hard it would be for an American to understand them not having a car in their personal balance sheet? No...because I don't understand the culture in China like a native Chinese colleague does.


Although this "upgrade" would be a great step towards globalization and the integration of cultures on a global scale; is it really helping in the long run? The time-frame for decisions could be improved, but in the end only people that have a win-win situation are the phone companies and of course, Google. Because if I have to continuously stay on my GSM capable phone...minutes will be of the essence.