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What is my investment goal?

How much time do I have to attain this goal?

Methods of saving for a down payment on a house differ greatly from saving for retirement. The reason for this lies in the factoring of time. Over short periods of a few years, individual companies and the stock market as a whole can experience dramatic fluctuations which in no way represent longer-term trends. Because of this possibility, a smaller percentage of your portfolio should be allocated into stocks as the time for cashing in your investments draws near. Conversely, the longer the time period you have to invest, the more aggressive your portfolio should seek higher returns.

How much do I initially have to invest?

How much can I afford to consistently add later?

Einstein described compounding as “The Eighth Wonder of the World” and for good reason. Being able to earn interest on your interest allows investments to increase exponentially faster than with simple interest. A one-time investment of $5000 earning 10% interest compounds to a total of over $54,000 after 25 years. Using simple interest, it would take over 95 years to reach the same amount. Naturally, the larger your initial investment and the more you can afford to add later on, the more you can expect to gain in returns.

Am I carrying any high-interest debt, such as on a credit card?

Before saving for future events, you should consider your present finances. Paying off any high-interest loans function as an “automatic” return. Writing a check to Visa to pay down your debt may not feel as satisfying as starting a nest egg, but by eliminating those 22% interest payments, you have effectively “made” a 22% return. Although you need not completely eliminate your debts, getting such payments into a reasonable area should be a more pressing priority.

This fiscal reckoning is also a good time to examine budgeting and expenditures. Look for unneeded or overpriced purchases, and consider the feasibility of paring them down and saving the extra money. Unused gym memberships, that $5 whipped mocha-hazelnut cappuccino, and extra cable channels all add up. The true cost of these and all other purchases involves understanding the “time value of money”, but for now it should suffice to say that $5 added to the previously mentioned investment account compounding 10% for 25 years turns into $54.17.

What is my risk tolerance?

What will my investing style be?

These questions lead us to selecting individual investments. Consider your investment timetable for when you’ll need the money, recognizing that more conservative selections should be made the shorter the window. Everyone’s risk tolerance is different; while one person may feel comfortable with small-cap biotechs another may need a blue chip to feel equally sound.

Analyzing the risk to reward ratio here is a good first step. The more risk you take on, the more you should expect to get in return if your investment pays off. The inverse is also true: the more stable an investment, the less return one should expect. Government-backed I Bonds pay over 6%, but involve tying up money for years in order to fully benefit from them. While this gives you one target, the average return of the broader market indices is about 11% per year. There are two primary schools of thought about investing: growth and value.

Growth

Growth investing is a higher-risk strategy which focuses on finding smaller companies poised to rapidly grow earnings. Stocks here tend to be micro-caps or small-caps, and the occasional mid-cap (under $10 billion). In their younger lives, many of the well-established companies of today found themselves considered here (Think of Apple Computers (AAPL) or Starbucks (SBUX)). Growth companies can be found in many different sectors, although such companies often have similar traits. A growth company usually has a unique product or service to offer which can fundamentally change how business is done. When found early enough in their growth cycles, these companies have the potential to return enormous profits to investors.

Value

Value plays usually are found in larger companies, although the strategies used to find them can be applied to smaller corporations as well. Looking for value stocks is similar to looking for values in a store: find a good product at a price below what you would normally expect to pay. These bargains are often found in the form of companies which have been unfairly beaten down through overselling. Finding value stocks usually involves using a discounted cash flow model (DCF) to find a company’s intrinsic value. This is the form of investing advocated by Benjamin Graham, and popularized by Warren Buffett.

GARP

GARP, or Growth At Reasonable Price, is a combination of the above forms. As the name implies, the focus is finding growing companies trading at reasonable prices. Quick measures of this include the PEG ratio (Price to Earnings to Growth) and Forward P/E. Although not a specific style, GARP is utilized by many investors because of its flexibility. The average, diversified portfolio will have many GARP-type stocks in it.

Once you know your goals, the amount your going to invest, your relatively debt free and know your risk tolerance it’s time to look at the market and start thinking about selecting stocks.

Getting Started: Learning the Market and Selecting Stocks

If you were going to spend several thousand dollars on a refrigerator or television, you would thoroughly research the market for those goods to find the product which best suited your needs. Investing is no different. Before buying into a company, you should be well-acquainted enough with it to give a short presentation. Knowing the basics of how a company operates, what it sells, how it makes money, how much money it makes, and what kind of growth the company is expected to experience are all crucial questions that any investor should be able to answer.

Developing a better understanding of the stock market is a long, but hopefully rewarding, process. Immediately investing in stocks with real money, however, is equivalent to taking a test without being introduced to the material. Formerly called “paper trading”, beginning investors would normally spend several months tracking their stock picks without having real money on them.

Thanks to technology, you can now find sites that automate (for free) the process of tracking price changes for you on the internet. Simulated investing is a risk-free way of beginning to understand market fluctuations and the forces driving them. Examining these trends will payoff in the future, as an increased understanding of the stock market can only help you on your path to building wealth.

Once you become comfortable picking your own stocks, you can still continue to “paper trade” online, as it offers the opportunity to explore and experiment with other investing styles. Gordon Gekko, the famed villain in Wall Street played by Michael Douglas, said “Information is the most valuable commodity I know of”. Ignoring for a moment that the movie ended with indictments for insider trading, the statement is true: you will not regret being an informed and intelligent investor.

The market is constantly changing, but by learning the ropes of investing you too can pull off a “One Up on Wall Street”.

Jim Stevenson, AKA:”Im Not Warren Buffet” is a staff writer and can be reached on the forums of http://www.eInvesting.com an Investing forum and Stock Market Simulator.

Howard Hughes was, and Donald J. Trump still is, one of the richest men in the world, and they have one thing in common:

They bought land, in the right location and made fortunes from it!

You don’t need to be Rich to Get Started!

If you have never considered investing in land, you should do. It’s affordable and there are many specialist companies catering for inexperienced investors who have never invested before.

There’s no better low risk way to build long-term capital gains - as Donald Trump once said:

“I just love real estate. It’s tangible, it’s solid, and it’s beautiful.”

Howard Hughes was another who firmly believed in land investing as one of his high return investments, buying huge swathes of under developed land in California that came to be worth billions.

Where is the Best Place to Buy Land?

UK land offers an outstanding low risk, high return investment opportunity over the medium term. UK land has out performed most asset managers and asset classes - including investment trusts, unit trusts, equities and bonds.

Solid Long Term Gains

The facts speak for themselves:

Overall prices of farmland have increased by up to 30% in the last 12 months and 130% since the early 1990s with an average 920% growth in the last 20 years.

If you compounded a $50,000 investment, at last years average growth you would get a return of over $1.25 million dollars in just 12 years!

Of course, there’s no guarantee, but with the growth rates we’ve seen over the last 20 years such gains are possible.

The future supply and demand situation points to higher growth in UK land values for many years to come - here’s why:

Population Growth - The UK is one of the most densely populated countries in Europe and its population is growing fast.

Immigration - In terms of immigration, 170,000 people are entering the UK every year. This figure represents over 60% of the annual population growth. At current rates of growth, the UK can expect to see at least 3.4 million more inhabitants within the next 20 years.

Social Trends - There is a rising divorce rate in the UK, and a declining marriage rate. This means there is a need for more homes as the family unit declines.

The UK government are already taking action to address the chronic shortage of housing, and are making house building a priority.

The Land Banking Opportunity

Land banking involves the acquisition of land, which does not enjoy planning consent, in advance of expanding urbanization.

The price of an open space plot, not immediately subject to urban development pressures can be bought cheaply. When urban expansion occurs the land rises in value as planning consent is granted.

This then allows investors to sell at a significant profit.

Get started with Just $10,000

Today, there are many companies advising international investors on how to profit from UK land.

They look at the best locations and give all the facts, so an investor can make an informed decision on whether to invest.
A typical minimum investment normally starts at just $10,000.

High Return Investments and Low Risk

High return investments with low risk don’t come around very often, but we feel land is such an opportunity.

If you are considering high return investments, then land is ideal for the longer-term investor seeking significant capital growth potential.

To learn more about UK land investments and get your free land info pack, please visit our web site: http://www.lpgroupinternational.com

The chances of scooping up the euromillions jackpot is a far-off one in seventy-six million but the chances of acquiring a money prize is a fairly decent one : twenty-four. If the jackpot is not won in a given week, it is carried forward to the next lotto draw that will result in an ever increasing jackpot value. New rules brought in on the 09/02/2007 restrict the number of successive rollovers to 11, with the jackpot rolling down to lower prize levels in the eleventh lottery draw if the prize is not won.

The Euromillions lotto or the Euro lotto, as it is ordinarily well-known, pools the lottery ticket receipts of the nine partaking Euro countries showing a massive Euro lottery jackpot. With the sum of countries joining the Euro on the increase, that will without question will lead to more countries participating in the Euro lottery. An increase in the number of people partaking in the Euro millions lotto will lead to a lasting growth of the already giant Euro Millions jackpots.

The new rules also initiated EuroMillions Super Draw which happen twice yearly plus they offer jack-pots in the region of 100 million pounds. The difference with Super-Draws is that the jack-pot has to be won during the week of the draw; this means, when there is no lottery ticket corresponding, all the numbers drawn and the top prize will then be distributed to the lottery ticket bearer(s) in the next winning prize tier.

Each and every participant has to pick out 5 primary numbers from 1 to 50 and two Lucky Star numbers from one to nine. During the lottery draw, 5 primary and 2 lucky-star numbers are then picked out at random from two lotto draw machines containing numbered lottery balls.

Rosacea is a skin condition that causes redness in the facial area, neck, and chest. According to Dr. Harold Farber of the Center for Dermatology, Laser and Cosmetic Surgery, there is no known cause to such condition. Aside from facial redness, rosacea also entails other symptoms such as red domed papules, pustules, red gritty eyes, burning and stinging sensations, and in some advanced cases, a red lobulated nose. Although there is no definite explanation, rosacea affects mainly Caucasians, which is why the condition is called the “curse of the Celts.” However, people with non-Caucasian backgrounds are also susceptible to rosacea. Women are more prone to have rosacea than men. This medical condition is often confused with acne vulgaris and/or seborrhoeic dermatitis. Rosacea starts when blood vessels in the facial area expand, which then causes redness. This redness is triggered by exercise, spicy foods, exposure to wind and sun. One of the myths about is that it is caused by alcohol abuse. This is very unlikely, though. However, for people with rosacea, excessive alcohol drinking may worsen the condition and may even start a flare-up. There is no cure for rosacea but with proper medication, one can alleviate the symptoms brought by the said condition. Such treatment options range from topical medications, antibiotic cream and pills, to laser treatments. In the Dr. Harold Farber-led Center for Dermatology, Laser and Cosmetic Surgery, recent therapeutic methods are now offered to patients with rosacea. For more advanced cases of the said condition, treatment options include cryosurgery and dermabrasion.

More information on Harold Farber can be found on the U Compare Health Care site.

Health Grades has a profile of Harold Farber.

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These big industries need you and me to willingly, easily and conveniently offer them the opinion of everyday people. When you make money taking paid surveys you can purchase the items you need and want to make your life easier. Imagine being able to pay off your debts, start savings accounts and enjoy the luxury of all those little extras that make your life fun and exciting as well as comfortable and happy. Perhaps you can spend some of your extra time taking that long deserved vacation. Most of them pay you a quarter here and a quarter there while they keep two bucks for themselves each time you do surveys. Find out more about Map Old Ordnance Survey and How Much Money Do Military Psychilogist Earn. The reason why a lot of teens love this new way of working is because you don’t have to travel to and from home. See the top 7 paying surveys at Highest Paying Surveys

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So maybe you do not understand casino gambling, read on.

A valid description of a gaming room is a house that presents games of chance. Visitors are expected to take a chance by operating slot-machines or plenty of other gambling games. Casino games for the most part have mathematically determined likelihoods included that promise the establishment reserves an advantage versus the gaming fans.

Rather a lot of betting house games can make you end up dependent speedily. There’s the classic 1-armed-bandit, a coin operated gadget with three plus gears which pivot if a knob attached to it is moved. The instrument regularly pays out established by a run of pictograms presented on the front of the gadget. Unfortunately, gaming room pastimes proffer the glamor of being in control, thus deluding the gamester: the participant is conceded options, but they can never really remove the gamer’s overall odds. That is due to the gambling saloongambling house never paying up the full sum as hoped for. This systematic policy will generally be found in well known casino games like stud poker, dice, roulette or blackjack.

Blind Poker is really a highly trendy casino pastime. The gaming aficionados, holding partially guarded hands, will wager into a principal pot which is finally given to the last player controlling the winning set of cards. (And as eveyone knows, the coolest bluff can easily win as well…)

gambling links

Comparable to stud poker, blackjack is likewise a highly fashionable casino game. Much of its is owed to its particular mix of chance and mastery & decision making, as well as a practice titled “counting”. This is a complex technique through which gambling enthusiasts will turn the winning odds of the card game in their favor both by wagering and fundamental actions based on the cards dealt.

Craps is yet another acclaimed casino pastime where you may place bets on the throw of a couple of dice. Patrons can place money on the score of 1 spin, or on a succession of cycles on two dice. In contrast to blackjack, there just isn’t any possible bona fide killer betting system you could exercise to boost the chances.

Roulette is another notable casino based game of chance as part of which a croupier revolves a roulette wheel featuring thirty-seven (classical roulette) or, alternatively exactly 38 (American or Vegas roulette) uniquely tagged divisions in which a white ball will come to a stop, thus announcing the winner as well as its respective sequences. Assuming that the participant has wagered on a single number and actually is successful, which is to say it’s their lucky day, the disimbursement is thirty-five to 1, the pledge being paid back. Accordingly in totality it’s multiplied by a factor of thirty six.

In recent days oil market has witnessed surge in global oil price. Crude oil went to a two-month high on concern that U.S. refiners will fail to produce enough gasoline to keep up with peak demand this summer.

Short fall in supply of oil from Nigeria and uncertainty on Iranian nuclear issues are already keeping buyers of oil nervous. Delivery in May future hit $68 per barrel, a 20 pct jump from last years $56.5 per barrel, only $2.85 from August 2005 high’s of $70.85.

Since last 3 years oil market has been witnessing a substantial rise in the average price of oil. Last week number of oil analyst and agencies have one again raised their 2006 average forecast price to $63.

US Energy department Data reported that refineries are operating around 86 pct of their capacity. Analyst estimates that during same period last year, plants utilised 94 percent of their capacity. Not to forget that February, March & April are also crucial as all the maintenance work is done during these months.

There is difference of opinion as experts differ on whether the current soaring oil demand will outstrip the current supplies, and how quickly.

But for oil watchers, what could be more concerning is that if the current surging demand from China and India persists then Saudi Arabia, which has a known 25% global oil reserve, may see its oil reserves dwindle in twenty years time. Many leading oil analyst says Saudi Arabia is believed to be forced to over supply http://www.topsuppliers.com .

The country has the ability to produce 15 million barrels per day. Middle Eastern Oil analyst is of view that if Saudi Arabia produces 15 mbp, the lifespan of Saudi Arabia’s proven oil reserve of 260 billion barrel, 100 billion has already been used and therefore the reserves can be used in our lifetimes.

Meanwhile, last year’s impact of five major hurricane hitting United States of America still has the biting effect on the oil industry. Coastal oil refineries are still fighting to deliver maximum production.

Developing oil sands or natural gas-based diesel fuel is slower and more expensive proposition, though researchers are making every effort to produce an alternate to counter oil price.

US President George W Bush in his one of his State Union address in February, called for intense effort to develop more efficient fuel sources. The US Energy Department and the Agriculture Department spend tens of millions of dollars every year on biomass-based energy research and development. This is in addition to the billions of dollars. More than $4 billion was spent in 2004.The U.S. provides in subsidies for the production of corn, from which most domestically produce ethanol is derived.

Considering how ethanol is produced, corn or sugarcane is grown, harvested and delivered to an ethanol plant. Growing and harvesting the corn and heating the reheating the fermented corn of sugarcane to produce ethanol of a high quality to replace some of the gasoline in car requires enormous amount of energy.

According to researchers, it was found that it takes 30 pct more energy to top make ethanol from corn. Wood biomass takes 55 pct more energy. Swiss grass takes about 50 pct. Ethanol is just highly uneconomical product in the West, as compared in developing countries, also due to low labour wages. It also contributes to air pollution. Cars running on gasoline containing ethanol produce more air pollution than cars running gasoline alone.

Another research work on Pig manure is underway. One pig produces 10 pounds of manure to yield up to 21 gallon of crude oil. Hence, it is estimated manure from America’s 60 million pigs could produce 50 million barrels of oil a year. Framers can earn $10 per pig from manure.

There are all very expensive propositions. The researchers would continue to search for oil alternate, but substitute for oil may still be far away. With current pace of global growth, thirst for economic boom and demand incurring due to population explosion is unending.

I have very few reasons to believe that oil prices will fall to USD 50 per barrel and would rather like to argue that we would continue to see higher oil price trend. Without which search for new oil find could not be met due to high exploration cost. Oil price could also be kept high intentionally, to give investors incentive to explore oil and to developed alternate fuel find which requires billions of Dollars. With growing annual demand for 2 million barrel per day, most of it coming from Asia, one single event that disrupts oil production could send prices sky rocketing. Current demand for global oil is 84 million barrel per day. I expect the oil to trade in a USD 75-80 range in a short span of time. Not long ago talking of oil price averaging USD 60 was a sin. So let us get prepared for the next coming big move.

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In the securities market of the Czech Republic corporate governance plays a crucial role in instilling investor confidence and ensuring an efficient market. Post the fall of Communism, the economy was transitioned from state owned to capitalist in a very short time. Since then, the Czech Republic has come a long way to quickly reach standards of other capitalist markets and successfully obtain accession into the European Union. As the market continues its progression, the need for transparency of information and alignment between board members and managers in firms greatens.

From the Czech Republic’s voucher privatization program in 1992 to the late 1990’s, corporate governance was viewed negatively and/or non-existent for publicly traded Czech companies. A path began with a lack of regulation, continued with a lack of enforcement, and finally turned directions beginning in 1998 with the Securities Commission Act. Even now, as Czech companies attempt to become more competitive on a global scale in the market, the realization amongst firms of the need for structured corporate governance and more transparency in their reporting of information takes hold as a continued effort necessary to report and align enterprise goals with those of other stakeholders.

Through an analysis of the top ten publicly traded companies, in terms of market capitalization, on the Prague Stock Exchange, I will assess the availability of information regarding corporate governance in order to discern the current state of compliance with the Corporate Governance Code. This information will serve as a benchmark and will allow investors to relate the positions of the largest companies on the PSE to other companies within the Czech Republic, and apply the knowledge generally to the Czech securities market. The results allow investors and other stakeholders to get an idea of corporate governance practices and the transparency of information in the companies operating in the Czech Republic today.

Current State of Corporate Governance

I turn now to the analysis of the corporate governance disclosure in today’s Czech market. Using the ten largest publicly traded companies (see Table 1) listed on the Prague Stock Exchange in terms of market capitalization, I will determine the degree of their stated corporate governance policy disclosure as found in their most recent annual reports. This is the 2004 annual report for all of the companies. Furthermore, I will briefly assess the availability of information on the companies’ websites.

Table 1
Top Ten Listed Companies on the PSE

Rank Company Market Cap. (Mil. CZK)Market Cap. (Mil. USD)

1 ČEZ 402,881 16,293

2 Erste Bank 317,598 12,844

3 Česk Telecom 160,014 6,471

4 Komerčn Banka 128,397 5,193

5 Unipetrol 42,922 1,736

6 Zentiva 41,683 1,686

7 CETV 39,718 1,606

8 Philip Morris ČR 32,816 1,327

9 Severočeské Doly 14,434 584

10 Prask Energetika 11,492 465

Source: Prague Stock Exchange, Novermber 2005

ČEZ

ČEZ, a joint stock company, is the largest power conglomerate in Central and Eastern Europe. The company’s website has an investor section with information on shares, bonds, and financial information, and lists the date of the annual general meeting, but does not provide information specifically related to corporate governance practices and structure in general. Shareholder structure, relations, and dividends are presented on the website. Within the annual report, ČEZ follows the German corporate governance model, and has key members of the board also part of management. Board structure and board members are discussed extensively. The board of directors meets weekly as a matter of practice, where the requirement is monthly. The company complies with the Commercial Code concerning protection of shareholder rights, and bases its corporate governance on the Corporate Governance Code. The ČEZ Group actually participated in the 2004 drafting of the Corporate Governance Code. Overall, the company reports on most of the key corporate governance areas, but does not have one section devoted to their policy, making it necessary to scan the entire report for relevant information.

Erste Bank

Erste Bank, based in Austria, is the leading financial services provider in Central Europe. Its website contains an investor relations area in which detailed information is provided, and also a corporate governance section in which the company discloses it follows the Austrian Code of Corporate Governance in practice. In the annual report, the company discloses it follows all of the statutory rules of the Code, and adheres to most of the recommendations. It directs individuals to the website for the actual provisions of corporate governance, making the information accessible, but not detailed within the annual report itself. Furthermore, policies regarding shareholder rights were not easy to discern.

Česk Telecom

Česk Telecom is a telecommunications group that operates primarily in the Czech Republic. The company has a website with shareholder information including board structure and notification of the annual general meeting. In addition, access to the company’s annual report leads to extensive corporate governance discussion. The company acknowledges improved reporting in this area beginning with the 2004 annual report as compared to previous annual reports, and as stated in the 2002 annual report, the company will be in full compliance of the Corporate Governance Code by 2005. One note made in the report includes a list of the members of the supervisory board that qualify as independent, an important provision as recommended by the 2004 Code.

Komerčn Banka

Komerčn Banka is among the most important banks in the Czech Republic and the Central and Eastern European region, and provides comprehensive services for clients in retail, corporate, and investment banking. The company’s website provides access to key shareholder information, and has an investor relations section. However, there is not a specific corporate governance section. Accessing the annual report allows one to see most of the requirements of corporate governance, but there is neither specific mention of their general policy towards corporate governance nor mention of their adherence or lack there of to the Corporate Governance Code.

Unipetrol

Unipetrol, a group of companies that operate in the chemical industries sector of the Czech Republic, is a major company in Central Europe. The company’s website has direct links to board members as well as an investor page with access to its annual reports, but does not provide detailed corporate governance information. The annual report does not improve upon the corporate governance policy of the company. There is no statement concerning the company’s policy towards corporate governance, and the information given is primarily a list of board members. Qualifications are not given, and shareholder rights are not disclosed or discussed.

Zentiva

Zentiva is a pharmaceutical group that holds leading positions in the Czech and Slovak markets, and amongst the largest players in Central and Eastern Europe. Zentiva’s website provides extensive corporate governance information, including the actual rules governing the boards. Investor relations also has a prominent position on the company’s website, and lists shareholder information, the date of the general meeting, and other important information. As stated in the annual report, the company adheres to the Dutch Corporate Governance Code.

CETV

Central European Media Enterprises, or CME, is traded on the Prague Stock Exchange as CETV. The company, based in Bermuda, is an international television broadcasting company, and operates a group of networks and stations across Central and Eastern Europe. The company’s website includes the members of the board and their qualifications, as well as financial results and company policies such as their Code of Ethics. Interestingly, analyst reports regarding CME are accessible on the company’s website. CME is listed on NASDAQ, so annual report information is accessible through their website under SEC filings.

Philip Morris ČR

Philip Morris ČR is an affiliate of Philip Morris International, whose parent company is Altria Group. The website for Philip Morris directs all investors inquiring about shareholder information to its parent company’s website, although some financial data, its general meeting date, and agenda is disclosed for its Kutna Hora location in the Czech Republic. Just as was the case for CETV, Altria Group has extensive information disclosed in its SEC filings. On the Altria Group website, corporate governance is discussed extensively, and the by-laws as well as board members and governance guidelines are listed.

Severočeské Doly

Severočeské Doly is the largest producer of brown coal in the Czech Republic. The company mines, processes, and sells brown coal and its by-products. The company’s website lists the board members and their qualifications and shareholder structure. There is no area dedicated to corporate governance structure or policy. Within the annual report, the company disclosed they do not comply with the Corporate Governance Code, but it does respect the legal requirements and it hopes to adopt more principles in the future. Key areas of corporate governance are easy to find in the report, and although the company states it does not follow the Code, it does an extremely good job of reporting required as well as recommended information.

Prask Energetika

Prask Energetika is an electricity purchasing, distribution, and sales company operating in Prague and Roztoky, and an electricity trader in the wholesale market in the Czech Republic. Prask Energetika’s website lists the management and board members, shareholder structure, and provides access to its annual reports. There is not a section specifically for corporate governance. In the annual report, the company reports statutory information as required by the Commercial Code, but does not go into great detail about corporate governance specifically. Furthermore, it does not mention its adherence to any part of the Corporate Governance Code.

Conclusions

After reviewing the information provided either on the listed companies’ website or their annual report (see Table 2), it was discovered that the transparency of information has been achieved. At least as stated, most all of the companies comply with statutory provisions of the Commercial Code and other Acts, and six of the ten companies comply with the recommendations of the Corporate Governance Code. Of the four that have not adopted the principles of the Code, some mention of the corporate governance policy is made through the disclosure of the relevant information.

I have found that companies listed on the Prague Stock Exchange with a large market capitalization have improved upon their corporate governance reporting in their 2004 annual reports from previous years. Steps have been taken by these companies to adopt the recommendations of the Corporate Governance Code even before they have become statutory regulations. Although these are stated measures that have been taken, it is assumed the policies are followed as a result of the auditor statement concerning the reporting of information contained in the annual reports. Overall, investor confidence in the Czech securities market should improve in light of the increasing transparency of information, and the future legislation of additional corporate governance requirements will improve upon this further.

Table 2

Results of Company Analysis

Disclosure of Information ČEZ EB CT KB U Z CETV PMČR SD PE

Does the company disclose Y Y Y Y N Y Y Y Y Y
corporate governance structure
and policy?

Does the company use the Y Y* Y N N Y** Y*** Y*** N N
Corporate Governance Code
as a basis?

Is shareholder ownership Y Y Y Y N Y Y Y Y Y
disclosed and voting rights?

Board membership & Y Y Y Y Y Y Y Y Y Y
qualifications disclosed?

Board member remuneration Y Y Y Y Y Y Y Y Y Y
disclosed?

Does the website contain a N Y N N N Y N Y N N
corporate governance area?

*Austrian Code of Corporate Governance
**Dutch Corporate Governance Code
***United States Securities and Exchange Commission Requirements
Source: 2004 Annual Reports for Respective Companies

Katherine Dorsett has a Bachelor of Science from the University of Texas at Austin, and is currently a Masters in Business Administration student at St. Edward’s University in Austin, Texas. Ms. Dorsett recently attended a Seminar in Foreign Business at the CMC Graduate School of Business in Celakovice, Czech Republic.

No matter how you got here, congratulations, you’ve decided to take early retirement. Setting yourself up to live life as you see fit is one of the American Dreams.

A serious problem with retiring early (besides figuring out what to do with all that time) is that when you stop working before age 60, the IRS doesn’t necessarily see you as a retiree. That’s why you need to be tax smart about managing your retirement accounts. Here are some things to think about….

Should I Roll Over My 401(k)?

Yes. Rolling over your 401(k) almost always makes sense because why would you want your former employer overseeing your account? Taking control of that money will allow you to have a whole world ful of investment options. Your plan probably has at most 20 mutual funds to pick from. A rollover IRA will give you thousands of choices.

If you want some of that money immediately and you’re over age 55 (but younger than 59 1/2) take the money out first and then roll over the rest of the account. Thanks to a convenient penalty exception for those who quit or retire between those ages, you can take payouts from company-sponsored qualified retirement plan accounts and dodge a 10% early withdrawal penalty. The amount will be taxed, but at least there is no penalty.

When Not to Roll Over: Company Stock

A rollover may not be the best option when your qualified retirement-plan account contains low-cost stock from your former company. If the current market value of the company shares is high in relation to their cost, you should strongly consider withdrawing the shares now and paying the resulting taxes.

THis will result in your tax bill being based on the (low) cost of the shares, rather than their (high) market value. If you’re under age 55, you’ll still owe the 10% penalty. Since the cost of the stock is low, the tax hit will probably be manageable even after the penalty. What’s the purpose of this strategy? You are positioned to pay only the 20% capital-gains tax on the difference between the cost of your company shares and the selling price.

Here’s of how cashing in your company stock could benefit you:

You bail out of your job at age of 52. Your company 401(k) account is worth $500,000. Of that, $200,000 is invested in company shares with a cost of $25,000. By following the advice, you’ll roll over $300,000 tax-free into your IRA. Now withdraw the company stock and put the shares into a taxable account. You’ll owe income taxes on $25,000, which is the cost of the stock. You’ll also owe a 10% penalty (because you’re not age 55 or older) on the $25,000. That makes the total tax hit including the penalty be 41% or $10,250 (.41 x $25,000).

The good news is your company stock is now considered a capital asset. This means that if you sell the stock for $200,000, you’ll only owe the 20% capital-gains tax on your $175,000 profit. After tax and penalty you will have netted $165,000. In contrast, if you roll the shares over into your IRA, your profit will be taxed at regular rates when you start taking IRA withdrawals.

If you hang onto the shares for over a year as they appreciate, things will be even better for you as any additional profit will also qualify for the 20% capital-gains rate.

Cautionary note here: To be eligible for the favorable tax treatment, your company stock must be received as part of a lump-sum distribution from the qualified retirement plan or plans in which you participate. Check with your employee-benefits department to make sure your retirement-plan payout qualifies as a lump-sum distribution.

Tapping your IRA

Unlike a company-sponsored plan, IRAs for people between the ages of 55 and 59 1/2 receive no special treatment.. So if you tap your IRA before official retirement age, you will get hit with the 10% early withdrawal penalty. There are some penalty exemptions listed here:

* Annuity-like withdrawals taken over your life expectancy. The withdrawals must be taken at least annually for a minimum of five years or until you turn 59 1/2, whichever is later.

* Withdrawals to pay qualified higher-education expenses for you or your children.

* Withdrawals to pay deductible medical expenses in excess of 7.5% of your adjusted gross income.

* Withdrawals to pay for a qualified home purchase (there’s a $10,000 lifetime limit on this exception).

* Withdrawals after death or disability.

Tapping Your Roth

Earnings in your Roth IRAs earnings can be withdrawn totally tax-free only if: (1) the account has been open at least five years, and (2) you are at age 59 1/2, or will use the money for one of the excepted purposes listed above. If you don’t pass both parts of the test, the earnings are taxed when withdrawn.

For withdrawals before age 59 1/2, you’ll also owe the 10% penalty on those withdrawn earnings unless you meet one of the penalty exceptions listed above. That penalty will also apply if you withdraw “conversion contributions” within five years of the conversion. Conversion contributions are those you made by converting a traditional IRA into a Roth.

On the other hand, you can generally withdraw Roth contributions tax-free and penalty-free. You shouldn’t do it, though, because taking withdrawals mean you’ll have that much less to continue investing on a tax-free basis. Also, if you need the money so badly that you tap your original contribution, you probably ought to keep working.

Roger Sorensen

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What is the same thing did 11 million people worldwide do in 2004? They took a cruise. Of course, some extremely rich people did not take a cruise technically but they used their yachts and spent days in opulence in the midst of the ocean. But for people like you and me, we have to be content with a cruise package offered by various travel agencies. If you think cruising is for old people or your parents, than you are wrong, my friend.

Before you hurry up and buy your discounted cruise tickets advertised in the Internet or one of those travel magazines, you should be aware of the reality. Cruise prices are going up every year. Rooms are filling up very fast. So, bargains may not always be available. However, bargain prices can be found just before or after the holidays, or in shoulder seasons. Shoulder seasons vary from region to region, for example September for Alaskan cruises.

Get ready for some unexpected problems in a deep discounted cruise ship. But, hey, don’t forget that you also saved a bundle by purchasing a discounted trip. Engine problems are very common and some port of calls may be cancelled due to engine problems. If a port of call is cancelled you may have little recourse for a partial refund because your discounted ticket may have small prints that say that the cruise line can change their itinerates at their discretion.

Imagine thousands of people in close proximity in a cruise ship. What do you expect? Well, how about viruses? Yes, a cruise ship is an idle breeding ground for all those nasty viruses. Check the CDC (center for Disease Control) web site for worldwide virus outbreak. But that should not dampen your cruise going spirit. Just stay healthy, exercise, wash your hands frequently with disinfecting soap and you will be fine.

Don’t pay a premium for airfare purchased through the cruise lines even if they promise you that they will hold the ship if your flight is delayed. Shop for your own airfare and the connections you prefer. Most of the time you will be ahead of the game and you don’t have to fly red eye or use lousy connections.

If the cruise line is promising an all-inclusive fare, try to understand their language. They are saying, hey, we will cover your foods, non-alcoholic drinks, and entertainment. You are on your own if you want to get intoxicated. But that should be fine because there is not much opportunity to spend a fortune in a discounted cruise ship.

Don’t fall for the gourmet food hype. Realize that it is a buffet style food, plenty, good but definitely not gourmet. There may be alternative restaurants besides the buffet style food. Sometimes, you have to pay in those restaurants. So be prepared for that.

When the ship arrives at a port of call, either you can purchase their excursion tour or explore on your own. These excursion tours are money maker for cruise lines. If you want to purchase travel insurance, shop at insuremytrip.com and try to avoid the insurance offered by the cruise line. Don’t get upset, if you find beer and pretzels, instead of, champagne and caviar. Enjoy your cruise and be happy that you are not spending a fortune for your vacation.

Dr. Deepak Dutta is the creator of SemanticBay.com , a user shared interactive content Web site. Authors, bloggers, photographers and users can share their mutual experiences, skills and knowledge at semanticbay.com to form a unique social network.