Your Questions About Money Magazine

Sandy asks…

For the same price, would you choose Fortune or Money Magazine?

I could get a subscription to either, each for 8 issues. Those are my only two financial magazine options. Thanks.

mikey answers:

Fortune seems to be more global in its outlook. If the choice was mine I would pick Fortune.

Susan asks…

How much money does a magazine photographer make?

Like if I worked for a car magazine such of Car And Driver, Motor Trend, or even Hot Rod. How much money do they make?

mikey answers:

Probably the general upper range for a staff photographer would be about $50,000 to $60,000. That would be for a top senior photog. Between $30,000 and $40,000 is a better estimate for an experienced shooter. Depends on what you are doing and for whom.

Most photographers are freelance. You make more money that way, but it is not a job for the timid.

Carol asks…

How can you buy seventeen magazine by money order and will it be cheap as the price ordering online?

i want to buy the 17 magazine, but my mom wont give credit card info.so i want to buy it by money order like the person said..But how do i get the money order and will it be as cheap as how they sell online on seventeen.com?

mikey answers:

Inside every Seventeen is a trial subscription card – it’s an index size paper. Often times the subscription price printed on the card is also discounted. Fill it out, mail it. When you receive your first issue and bill, fill out the bill, mark your method of payment, enclose your money order then send it back to Seventeen.

Charles asks…

how do i submit a poem and get some money, what magazine should i submit it to?

i am 13, my family needs some money so i thought id do this. what magazine or website would be best? thank you very much to those of you who answer.

mikey answers:

Any money you might get will be very little. Many companies, magazines, publishing houses do not take unsolicited material. You would need a literary agent.

Contact magazines that you like and see what their guidelines are for writers and if they take poetry, if they take unsolicited material, and how much they pay.

I think you would be better off working at a food place busing tables or as a dishwasher, cleaning up in a hair salon, walking dogs, doing chores for people, having a paper route….at least the money would be somewhat dependable.

Sandra asks…

I’m looking for a good personal finance book similar to Money Magazine’s book that was published in the 90′s?

I just graduated college and I’m looking for a good general guide to personal finance that is intelligently written and informative. I believe the Complete Idiot’s Guide and For Dummies books both have a version for personal finance but I’m worried that they’re a little watered down and not serious enough. Let me know if I’m mistaken, or if you have any other suggestions?
Thanks!

mikey answers:

I am not sure how far you want to go. But One of the best common sense books of the market is Dave Ramsey’s boo, TOTAL MONEY MAKE OVER. You can see it for free at Barnes and Nobel, and at your library. It is so enlightening, and is taught in high schools and churches everywhere. Easy to read, it helps you to set up life and not get bogged down with overburdening debt.

I only wish there was more in his program about choosing specific mutuals and other investments.

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Your Questions About Profit

Laura asks…

What good is zero economic profit in perfect competition?

I’m learning about how long run output/profits affect entry and exit in a perfect competition market. To my knowledge, firms enter and exit until all firms earn zero economic profit. What I don’t understand is why firms would continue operating if they were making zero economic profit? Why would they want to operate in a market that makes no profit?

Please explain to me. I think I’m missing a point here. Thanks.

mikey answers:

That model, you will learn, assumes that there are only 2 factor to production. Capital and labor. Then it assumes that capital must be rented. That last assumption is false. In the real world the owners of capital and firms are often the same thing. So then economic profit would not be zero. Also remember the its zeros LONG TERM economic profit. In the short run it is possible to make profit. Plus economic profit assumes that there are no constraints on inventing. That is also false, you may choose a less risky and more competitive market becuase you do not have the ability to invest in another market.

Helen asks…

What is the profit breakdown from raw material to final product?

Does anyone know the profit percentage breakdown of a product’s total retail price going back to the raw material? From retail store profit percentage to distributor’s profit percentage to manufacture’s and the raw material manufactures.

mikey answers:

Too broad of a question.

It depends…. On the product itself, tolerable profit margins and break-even points. Different “types” of products will carry different markup “points” throughout the chain.

“Markups, like all pricing strategies, depend on three influences — cost, competition, and demand.”

here is a quick reference link:

Maria asks…

How do you think profit is measured in a not for profit organization?

How do you think profit is measured in a not for profit organisation such as a community centre or home care service?

mikey answers:

A not for profit organization still attempts to make a profit, it simply reinvests or redistributes its excess earnings in a fashion consistent with its mission statement.

Sandra asks…

What is the difference between zero accounting profit and zero economic profit?

I have been using the web to try and find information on both zero accounting profit and zero economic profit and all I keep coming up with is zero accounting profit and economic vs accounting profit. Help please.

mikey answers:

I’ll put it in simple terms…

Zero Accounting Profit–means there is no dollar/monetary amount or value producing a profit. $0.00

Zero Economic Profit–means there are no benefits to reap or prosper from

(for instance if you had reached a $50 monetary / accounting profit you would receive 10 free books for each dollar…the free books were an Economic profit, or say a free lunch for every employee for breaking even (that would be an economic profit). Economic profit are benefits that you can gain an incentive like profit from.

Michael asks…

How much profit do home builders make off building an house?

I am looking into starting my own home building business but am trying to work with some numbers, specifically the average profit that self employed home builders can expect to make.

For example, if you sell a home for £200,000 how much was spent on the actual construction of the home and thus how much profit does the builder accrue?

Also how muhc would you have to spend for the basic electric, plumbing gas ect.

mikey answers:

Profit can be great, could be anywhere between 10k to 100k or more.. No straight forward answer, depends on the size of the home, the area, the detail of the home, etc… But this market is real tough for home builders, many sell at cost just to get rid of the debt. And many have a lot of construction sites on hold, they just can’t sell the homes they already built so other projects are sitting around unfinished.
Also you need to consider making a name for yourself, sad fact is not many people are willing to hire a no-namer compay to build their home. And you don’t likely have a name in the business, if you did you’d know how estimates and profit works in the construction world.. No disrespect, just trying to help out.. Good luck

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Your Questions About Banking

Maria asks…

What are the Banking online advantages over regular banking. Why would it be attractive to people?

What conveniences are offered? Is it safe, or will other people get access to your accounts? How does the bank guarantee that your financial and personal information is secure? What are the different services offered, and the requirements needed to obtain the privilege of on-line banking over the Internet? Also, please explain which feature you personally find the best. Is there a bank you would prefer over others? Why?
Please help me out i have a project to do

mikey answers:

You can move money between internal and external accounts and pay bills anytime of the day or night, and set up regular monthly billpays or savings, sitting at home on your fat butt, without having to drive to some certain bank branch during the work day.

And savings often get better interest rates.

And you can often get a free online account with a bank that otherwise charges a monthly fee for a checking account.

John asks…

How much of banking history reality is following?

The bank on the corner, which since interstate bank ownership that idea may no longer exist. Mean commercial bank that accepts deposits with FDIC insurance. By law where they not prohibited from getting into speculative investment banking, so investment banks were created, which were to go bust if they did not work. The risk they took for deregulation. At one time there was law that prohibited deposit accepting banks from exposure to investment banks. Sear could not start bank because of insurance business. What happened to that law? When Bank of America goes belly up why should tax payers come up with one cent.
Should slogan to big to fail be replaced by– To risky to save.

mikey answers:

Whoa. Your question is a bit hard to read and it sounds like you’re pretty P.O.’d. I think you are referring to the Glass-Steagall Act, which was repealed by Bill Clinton’s administration in 1999.

James asks…

What type of banking is needed to start a small online business?

What type of banking is needed to start a small online business?
Hello,

Me and my Friend want to start a website selling items. We are not sure about banking though, what bank account we need and how to open them. We are only 15.

Thanks for your help.

mikey answers:

You can open an account as sando says but you will still need a bank account to transfer the money to because they do not write checks anymore they do direct deposits. You can also start a merchant account which allows you to use all the major credit cards but of course you need to have a bank account to do this and set it up through them.

As far as a what type of bank account you need is another question. If you plan to run the business as a sole proprietor under your Social Security number then you can open a bank account in your name with a DBA attached to it (Doing Business As) which is what ever you choose to name your business. You want to check to make sure the name you use is not already active or you may be in trademark or copyright infringement.

Since you are doing it with a friend you will most likely set the business up as a partnership and I don’t think you can do this under a basic business license, you may have to incorporate as a limited partnership, it’s something to check out. The banks may also require you to incorporate in order to open a business bank account. The best thing to do is call your local city government and have the question answered about partnerships then talk to the bank to see what is required of you two to open a bank account.

The other problem I see is that you are 15 and the banks may not allow you to open a bank account of any type without a parent or guardian to co-sign the account so check this out. The same applies to forming a business.

Sorry I can’t be of more help but I hope this gets you going in the right direction.

Good luck to you and your friend.

Paul asks…

What banking information do I need to bring to my first day at work?

I’m starting my first day of work at Safeway in Manitoba, and I need to know what banking information I need to bring with me. My boss started talking about it but wasn’t very informative. I know she said that I need my banking number or something, but other than that I have no idea. She needs it because my wages will be direct deposit. Thanks.
I’m only 16 though, so I don’t have any checks.

mikey answers:

One check leaf will give the routing and checking account information. Open an account where Safeway banks with her help.

Ruth asks…

How does banking work in Muslim countries when you’re not allowed to charge interest?

In the West, charging interest is a fundamental part of banking. As I understand it, you’re not allowed to charge interest under the faith. Would one be breaking the rules of charging interest if one invested in a Western bank.

mikey answers:

Yes one would be. Allah tells us not to deal in usury (interest) of any kind. Even if we have a savings account in a western bank which we receive interest on, then we must give that money away as soon as we get it.

There’s a Wisdom to everything that Allah (The Exalted) decrees for us. One only needs to look at the current global economic crisis to understand. Fat cats getting wealthier on the exorbitant amount of interest they charge, and the humble working class spending beyond their means, and up to their eyeballs in debt and high interest loans.

It’s a sad reality, that could have been avoided if ppl only knew.

Peace

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Your Questions About Stocks Today

Carol asks…

What major investors are pulling out of commodity stocks today?

How much money do they have in those commodities? How much longer will they continue to do that as the dollar increases in value?

mikey answers:

We have started a correction in the depreciation of the dollar….that means for a while the dollar will go up.
The jun 30th .25% interest rate drop will be the last for a while and traders will start buying the USD.

So commodities and precious metals will not be as expensive, so look for a drop in oil and gold prices,

Joseph asks…

Why did my gold mining stock go down much more than other stocks today with the news regarding Dubai?

I just wonder why Dubai caused this reaction.

mikey answers:

It was a flight to the US dollar. In times of economic uncertainty investors take refuge in the dollar in a
flight to safety. When the dollar goes up commodities generally go down.

Sandy asks…

Who is selling stocks today after a 5% plunge in the Dow?

What’s your strategy buy high and sell low?
Flswamp, why do you feel a need to insult me every time I ask a question?

You have no idea what kind if investor I am. So go screw youself.

mikey answers:

Today I bought stocks that pay dividends near 5%, with enough earnings to back them up through a downturn. Way better than the fraction a % savings pays.

I don’t care if they go down for awhile. I’ve got 20 years until I need to sell them.

I wonder if part of the drop isn’t fund managers panicking because we are near the end of a quarter. It could be window dressing so they can report they have cash in a down market.

Paul asks…

Why are all the major health care stocks down today? Shouldn’t they be up on the good news of Brown’s election?

Merck: Down 1.6%
Glaxo: Down .52%
Pfizer: Down .3%

And the insurance stocks, as measured by an EFT, are down 1.75% today.

Can some Republican explain why Wall St. thinks Brown’s election will be bad for the health care and insurance industries?

mikey answers:

Because Brown won’t be doing anything to change the status quo and the current situation (regardless if you look at it from the Dem or Rep perspective) is well-known to be broken.

Lizzie asks…

Why did bill gates sell MSFT stocks today?

I read he sold 1M of his MSFT shares at >$20. Is he planning to buy Yahoo? You can speculate on the note. I will give Best answer to the most credible argument.

mikey answers:

When you have someone who owns so many shares (748M), it’s hard to know. It’s kind of like a bank account to them.

This isn’t his first sale by a longshot. However, Bill Gates is worth $40 Bllion and his MSFT shares are worth ~15 Billion: 37% of his net worth.Perhaps he is just diversifying.

Truth is, it probably doesn’t mean much at all.

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Your Questions About Moneygram

Robert asks…

Where can I cash a MoneyGram international money order in the UK?

My great aunts and uncles from the States sent me a MoneyGram international money order as a wedding present. I’ve tried the Post Office, Thomas Cook, and Natwest and they’ve all said they can’t cash it.

Where in London can I cash this?
If you’d actually read my question, you’d know that I already went to and called loads of the places on that list you so helpfully linked to since you seem to think I don’t know how to use the internet.

Those places can’t cash money orders–they can only do sending and receiving of MoneyGram wire transfers. I was hoping for an answer from someone who actually knows what they’re talking about.

mikey answers:

Plenty of places

http://www.moneygram.com/eFindUs/app/?wicket:interface=:0:2:

Michael asks…

How do I cash a check from moneygram if I don’t have a bank account?

I got a check back from moneygram but it’s bank is wf national bank and there is nome around here. Is that the same as wells Fargo? How do I cash a check if I don’t have the bank here and if I don’t have a bank account anywhere?

mikey answers:

You either open a bank account or try a check cashing place or… You sign it over to a buddy that has a bank account and let him give you the cash for it. For this you will both have to go to his bank together and you need to have your I.D. With you, of course.

Paul asks…

How can I get my money back through Moneygram?

I transfered money to someone through moneygram and they only accepedt western union. The money has not been claimed. Am I able to get my money back?

mikey answers:

Just walk into a moneygram counter, give the clerk the 8 digit MTCN# and pick it up.

All anyone needs to send money is:
1) A first and last name to use on the form as the sender’s name
2) A first and last name to use on the form as the receiver’s name
3) Money

All anyone needs to pick up the cash is:
1) The first and last name used on the form as the sender’s name.
2) The first and last name used on the form as the receiver’s name
3) The eight or ten digit money transfer control number (MTCN#)
4) The test question and answer

And, all too frequently, only one or 2 of above listed requirements are actually needed to pick up the cash and disappear.

That is it, no ID required.

If you are:

1) sending money as part of a work-at-home job
2) buying from a website
3) buying a pet or car/truck/trailer/motorhome/caravan
4) helping an online boy/girlfriend
5) paying taxes/fees on a lottery/draw/government grant
6) paying visa/bank/airline/travel fees
7) paying deposit/rent for an apartment/house 8) paying banker/barrister/lawyer/court fees
9) paying a transportation/courier/shipping company
10) receiving/forwarding money onto someone or some company

Then you are being scammed.

Just keep in mind that Western Union and moneygram are unsafe and unsecure ways to send money.

Western Union and moneygram do not verify anything on the form the sender fills out, not the name, not the street address, not the country, not even the gender of the receiver, it all means absolutely nothing. The clerk will not bother to check ID and will simply hand off the cash to whomever walks in the door with the MTCN# and question/answer. Neither company will tell the sender who picked up the cash, at what store location or even in what country the money walked out the door. Neither company has any kind of refund policy, money sent is money gone forever.

If you google “Western Union scam”, “fraud moneygram scammer” or something similar you will find hundreds of posts from victims and near-victims who lost money via Western Union and moneygram.

Richard asks…

How can you check to see if a Moneygram is a fake?

Is there some kind of website you can go to and enter the check number. Or are there tell tale signs that a moneygram is fake? Please help!

mikey answers:

Call their 1-800 phone number and ask for their official website address.

If you pick up a moneygram form from a location in your area, you should be able to see the 1-800 phone number provided on the back of the form. They may also list the website on the form.

James asks…

What shuld I use for moneygram ? Check is okey or transfer money shuld be cash ?

What shuld I use for moneygram ? Check is okey or transfer money shuld be cash ? I want to send $10000 to my country and I don’t carry it with me.

mikey answers:

Look on MoneyGrams website: http://www.moneygram.com/

Are you in the US? Most Wal-Marts have either MoneyGram or Western Union Service, they can be of help to you.

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Your Questions About Profit Margin Formula

William asks…

Profit margin – the simplest formula?

I know it’s got profit in it and you either divide profit by or into revenues or expenses, I’m just not sure which…

mikey answers:

Profit divided by selling price.

Or if measure for total company

profit divided by revenue

Margin normally implies percentage of price.

John asks…

As a Mancer Industries accountant, you need to calculate the net profit margin. Which of the following formula

Net in come / sales
Sales / net income
Net income / owners’ equity
Owners’ equity / income

mikey answers:

Net in come / sales, it’s quicker to look it up in your book…

Ruth asks…

what is the difference between profit margin & markup?

if I have an item with a clear cost,what shall I use to determine the selling price,shall I use profit margin or markup? they both lead to different selling prices for the same item using the same percentage.
example:
if pricing based on profit margin formula:
example: profit %=20% cost for example: $5 I have read that we have to make 100-20=80 divide 80 by 100=0.8 then divide the cost by that number: 5/0.8 the selling price would be: $6.25

if price based on the mark up
selling price=cost*(markup+1)=5*(0.2+1)=$6

how come we have two different answers. aren’t markup and profit margin the same?

one last question please, if I have all costs (total costs) how would I assign this total cost to each item (I have like thousand of items in my inventory) in order to do the pricing.

PLEASE HELP!

mikey answers:

Your profit margin is your markup. If you buy a widget for $1.00 and resell it for $2.00, you’ve marked up the price $1.00 and your profit margin is $1.00.

Laura asks…

How to calculate selling price based on profit margin?

Hello, I need help in calculating selling price based on profit margin. For example :

Product cost = 1,000, I want a 20% profit margin, thus to determine the selling price, I use: 1,000 x 1.2 = 1,200.
Thus 1,200 is my selling price for this product.

My friend, however, uses different approach, the way he does it is as follow :
1,000 / 0.8 = 1,250.

But when I double check the results, by using profit / selling price to find profit margin, my answer above does not match my result. The formula is as follow:
( profit / selling price ) * 100% = profit margin.
When I put in the numbers : ( 200/ 1,200) * 100% = 16.66%.

However, my friend got the right answer.
( 250/1,250)*100% = 20%.

Does anyone know the rationale behind this? I am extremely confused. Is my method of calculating profit margin using profit / selling price correct or not ? Please help out, thanks so much in advance.

mikey answers:

You did yours correctly

when you enter in your numbers it should be

1000 is your cost price and you added a 20% margin

200/1000 = 20% ok

Lizzie asks…

Whats the formula to figure out profit margins? Whats the best way for a business owners to calculate profit?

Mark-up percentage or profit margin?

Whats the difference?

The more insight the better…

Whats the forumula for profit margin?

mikey answers:

Mark-up percentage is the difference between what you paid for the item and what price you hope to sell it, divided by the price you paid for the item. Thisdoes not tell the whole story on profitability because it may not include costs such as storage/warehousing, allocation of fixed costs (if you choose to allocate), interest charges, transactional costs, decay/loss/theft, taxes, etc.

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Your Questions About Banking History

Thomas asks…

How can I get a copy of my 12 month banking history from my bank. Which is Bank of America?

mikey answers:

Teller statements usually only go back as far as 3 months if that! So you could definately contact customer service. You should have the option of having the copies either mailed to your home, mailed to the banking center or faxed. Phone numbers include:
CA 1.800.622.8731
ID 1.800.442.6680
WA 1.800.442.6680
Seattle area 1.206.461.0800
all other states 1800 432 1000

But if you use BofA online banking you are able to access your monthy statement in PDF format dating back up to 18 months FOR FREE. And online banking is free as well. So if you arent already signed in.. Sign up soon! Its awesome! And when you log on, select your account from the main page and the on the left side under “customer service” select “view/print statements.”

Joseph asks…

What is the history of banking in Owatonna, Minnesota? Was Farmer’s National the only bank?

The Farmers National Bank building in Owatonna was an early building by Louis Sullivan, built in about 1907-1908… was there a bank there before that? Who were it’s founders? Were they local farmers? I’m doing a family history project, so all relevent information will be appreciated. Thanks.

mikey answers:

This isn’t much, but…
There was at least one other bank in Owatonna, The First National Bank of Owatonna, National Bank charter #1911 (which means it received its charter in the mid-1870s).

The First National issued small size National Bank Notes up until 1934. The link below is to a banknote dealer who has four of them currently in his inventory (Very pricey, as you would expect for such scarce items). You could probably e-mail him and ask for a photo of the notes – You may recognize the signatures of the bank president and cashier.

Http://www.horwedelscurrency.com/minnesota_through_new_york.htm

I wish I had a better reference book at home. It occurs to me that these two banks might be one and the same. The reference book I need (National Banknotes by Don C. Kelly) is pretty expensive and I’m too cheap to buy it.

Michael asks…

How do i get a bank account if i have bad banking history?

mikey answers:

I have an ex gf that burned some bridges at her bank so she was looking to start a new bank account. So she went to another bank. Problem solved.

Ken asks…

What are three trends recent in banking history?

mikey answers:

1. Fewer paper checks, more electronic payments.
2. Mergers creating large banking institutions.
3. Bank failures caused by mortgage losses.

Charles asks…

What is the history of Switzerland? How did it become a banking, financial center?

What is its history and how did it devolop into such a peaceful , neutral banking center?
How did it stay neutral for so long?

mikey answers:

Http://history-switzerland.geschichte-schweiz.ch

This site provides very comprehensive information.

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Your Questions About Money

Nancy asks…

What is the difference between commodity money and representative money?

A) Commodity money consists of objects used as money that contains their own value, but representative money is a specific group of the commodity objects
B) Commodity money consists of objects that have value in and of themselves, but representative money makes use of objects because the holder can exchange them for something else of value
C) Representative money allows objects to be exchanged for something else, but commodity money has value because the government decreed it is an acceptable means to pay debts
D) Representative money consists of objects that have value in and of themselves, but commodity money makes use of objects because the holder can exchange them for something else of value

mikey answers:

There is NO easy money folks. You can make money online but it takes more work than most think. Many just simply give up…
Meh…here’s the real truth. Http://flyingpantz.blogspot.com Who can resist pants of justice? Especially ones that fly! BUT really though it’s a good read. I’m not trying to sell anything. Just my blog and some of the things I do daily. Visit the “Money Articles” section.

Ken asks…

How is money released in the market? How, on what basis and how much money is released?

Government makes money (literally). But then there must be something productive done for a society to prosper so people serve each other through some service or product. However as such I or you cannot create money to pay for someone’s service/product. How is money created by governent released in market, on what basis government releases money? What is role of RBI ? when government releases moeny in market is it buying something in return but then who does it buy from ? Somehow, somewhere services/products created by society are finally getting to RBI (so that it can release money) but how ? Please explain.

mikey answers:

Money is released through banks. Some money is made to replace old, torn money. Other money is made for new gold mined. Your money is literally a representation of how much government gold you own, that’s why rising gold prices are the first sign of inflation.

Donna asks…

Money making ideas for girls raising money for our church?

We are collecting money to redecorate our youth group room so it doesn’t look like death. We need as much money as we can get. What are some ways to earn money? Aside from:
raking leaves
car wash
asking for donations
walking dogs
babysitting
other various yard work
No Aniekd you misunderstood. Those are ideas we ALREADY have. I didn’t want people to suggest them because we are already planning on doing those things.

mikey answers:

Have a bake sale during sunday morning church services for a couple weeks!!! Have all the girls bake something sweet (as a donation to the bake sale) then all of the money you get will strictly be profit spent on redecorating :)

Michael asks…

What money is used to bail countries like Greece and Italy out of their debt crisis?

We hear of Greece nearly bankrupt and Italy on the verge of bankruptcy unless they are bailed out, (given moeny?).

1) Who gives them money, the rest of EU countries that Italy will have to pay back with interest?
2) Is the money given newly printed money or a cut from other countries money?

mikey answers:

Money comes from the rest of EU countries, mostly France and Germany.

Bailout money is a gift, so Greece (or Italy) will not need to repay it.

Bailout will likely be funded with taxpayer’s money as printing new money is likely to spark inflation.
But it does not really matter as inflation is essentially a tax, on those with savings.

Richard asks…

How much money do I have to take with me after getting my work visa for Australia?

I want to know how much money I should have before entering Australia as a single baker.

This money should be the money that I would spend on my rent and stuff like that. So, if you are into immigration rules, or you are an Australian who knows about immigration, please let me know about it.

I don’t want to take a lot of money, say AUD10000, just for some months until I secure myself a job.

Thank you.

mikey answers:

First off, for all of the answers to all of your questions regarding immigration, visas, Australian life in general etc, follow this link to the very informative government site:

http://www.immi.gov.au

How much money you will need in the first instance depends on how much you want to spend, and also on what visa you are entering Australia. If you are coming as a PR, then there is no minimum. If its a working holiday, its a sum sufficient to support yourself, often held to be $5,000.
Rent will cost you anything up to $450 per week, but could be as low as $100 if you are sharing . Food will be from $50 to $100 per week depending on how many takeaways you have. Public transport at say $5 – $10per day. Then there is your going out money – which can be anything from$25 to $100 per night, depending on where you go, how much you drink, and for whom you buy drinks.

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Your Questions About Stocks To Hold Forever

Daniel asks…

I want to buy a buy-and-hold mutual fund. One that buys and holds stocks. Which is best?

In other words, once it buys some stock in a company, it keeps that position forever, and doesn’t buy any more of that company for a number of years, to focus on buying other companies it doesn’t have yet.

The whole idea is for an investor to be able to buy and hold a large number of stocks without buying them individually. And since each stock doesn’t have to be managed, but just held, the expense ratio should be very attractive.

The only time it would ever sell any stock would be when its cash ran low from redeeming shares of the mutual fund. It would normally keep enough cash on hand to cover all anticipated redemptions, so it wouldn’t have to do much selling.

Another thing about this kind of mutual fund is that since every stock it buys is for the long run, it shouldn’t care about next quarter’s results. The only things it should care about would be the quality of the company’s management team and the future prospects for the company’s industry.
People who say it’s a bad idea to buy and hold forever because a stock could go bankrupt, aren’t taking into account that the diversification will make that a very minor problem. If a stock is on the brink of bankruptcy, it’s trading at a very low price, so it wouldn’t make much difference whether you sell it or not. If you keep it, and it somehow manages to avoid bankruptcy, the price might be many times higher when it recovers than it was when it was on the brink of bankruptcy.

The whole idea of buy and hold is that you invest in the people who run the company, because you have confidence in those people over the long run. You can’t predict which stocks will go up or down, when, but you can predict that if you buy companies run by competent people and diversify to minimize risk, you would normally do very well over the long run that way. And it avoids the “buy high sell low” problem you have with mutual funds that “window dress” their holdings.

mikey answers:

Pension Funds…The teachers union pension(don’t know the right name), held Enron and MCI World-com right in to Bankruptcy…Buy and Hold Forever ..Bad Idea.

Edit..The Enron share of the pension fund was of amount that it did effect their return.
What percentage of stocks that were in the top twenty 10 years ago,20 years ago?… Are still in the top twenty, or worst bankrupt.

Lizzie asks…

Can an employer refuse to allow you to exercise privately-held stock options?

Divorce is looming, husband’s boss is high school friend, I think they’ll say the stock options are worthless & won’t be exercisable ever. Can they say that? Is it true? Can the boss hold the stock options forever & not allow them to be exercised?

mikey answers:

Depends on how he got them and of his contract. If they are privately held, he can excercise them. As for their worth, they might be very allmostr worthless, depends on the timeframe of the options, and the excercise price.

Jenny asks…

how can I get a refund from an online store that never refunded my one thousand and thirty two dollars for a?

Edulgence accesed my credit card for 1032 dollars and told me I would have the tv in 7 to 10 days. I waited two weeks and then called the store in brooklyn ny. It was not in stock and they tried to sell me refurbished. I cancelled order. They are currently going through reorganization but state that all ordered items will be delivered. This is what it says on the phone when you call them,then you are left on hold,forever. The website is not there anymore but queriing edulgence brings up the coporate office,one and same as store I suspect.

mikey answers:

If you paid with credit card, you can always dispute it. Contact the credit card people.

I typed in ‘edulgence’ and ‘scam’ in google and got some hits.

Here is one:

http://www.bizrate.com/ratings_guide/cust_reviews__mid–135153.html

That is my basic check I start with when I am looking at a company to see how legit they are.

Charles asks…

What happens when you hold onto your stock share even when the price drops?

It seems like everyone sells their shares when it falls under what they paid for but I want to know what happens when you keep your shares forever and never sell no matter what even when the stock price is falling?

mikey answers:

Nothing happens. It’s just a piece of paper till you cash in. Don’t do it now. Hold on to it for quite awhile. It’ll go back up. When people see the markets fall as they are now, they panic and sell. In effect, they buy high and sell low which is the opposite of what you should do. You buy low and sell high. Hang in there. Time is on your side.

Richard asks…

Do you think Jay Park and 2pm could perform on the stage once again?

His contract is permanently terminated, that’s for sure, but nobody knows what really went on behind the scenes – because surely, the myspace incident should not all that serious of an issue after time, even for Korea. My guess is that either there was something else going on back there that reached the current conclusion OR jype was -that- insecure about 2pm’s reputation that he wasn’t going to take the risk (Or like the headlines say, Jay left out of his own consideration for 2pm’s future reputation).
Not like that phase pleased Hottests at all…the whole thing was a small incident blown massively out of proportion and hate was evident from every direction (around that time, I didn’t even know of 2pm so it may not impact me as much but seeing that i judge groups based on their talents, Jay didn’t seem too bad in their past live performances and 2pm would be better off with him)

Even so, he has already issued apologies and whatnot, and surely everyone would have forgiven him (like, he’s back to promoting in korea already). If that is the case, wouldn’t it be possible to see them do something again? 2pm may have hated him for the incident but no one holds grudges forever, and these guys have trained and debuted together so surely some sort of bond still exists. Rumours online by saesang fans may or may not be true but i won’t hold much stock in the validity of said rumours; hence, i still stand by my previous sentence.

Sorry if this brought up any hard feelings from way back, guys. & also, feel free to add any of your thoughts as i have done.

mikey answers:

I dont think he will join them again because he did not contact them when he went back to Korea, and when they asked him why, he said “just because”. When 2PM was asked about Jay, Taecyeon said they didnt contact each other too. When Jay or 2PM are asked about each other, the conversation gets all awkward. I dont think things could go back to the way they were because even if Jay was forgiven, the bond between he and his members will not be the same.

Honestly, while I wish they were a group once again, I think this is better for both of them. I dont think the “idol” life suites Jay. I think he likes it better when he can just do whatever he wants and be a bboy with AOM. He also got to film a movie. I dont think he’d be able to do these things if he were still in 2PM.

They both are successful right now, so that’s great!

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Your Questions About Profit Margin On Sales

John asks…

What is profit margin on sales and net profit margin? Are both same? Please help me. Thank you very much!?

mikey answers:

The net profit on sales ratio (also called the profit margin on sales ratio) measures the headquarters’ organization’s profit per dollar of sales. The profit margin on sales ratio is calculated as:

net profit on sales ratio = net profit / net sales

Jenny asks…

Profit Margin on Gun Store Sales?

Is it just me, or are the profit margins on Gun Store sales slim?

I say this, because in pricing out the cost to build an AR-15 from scratch, and I mean taking stripped parts and doing the assembly for every pin, nut, spring, etc, the cost savings is peanuts. So if that is true, gun dealers running a store front must be lucky to get a few dollars of profit off every sale.

mikey answers:

Larger chains get volume buying discounts, and as a result, they make a better profit. Smaller stores have a very thing margin line, as you mentioned. I considered the standard at our store to be a $50.00 profit on each gun sold, but that is misleading, we made $50.00 more than we paid for it, but then add in overhead costs, electricity, gas, sales tax, employee costs, insurance and all the other crap, and we made a real profit of less than half that per firearm. We made much better profit on accessories and gunsmithing services.
Shoot safe

Maria asks…

Is a 2.5% profit margin considered high or low?

I’m analyzing an annual statement for a company and they have a profit margin on sales of 2.5%. I don’t have anything to compare this to, is that considered high or low?

mikey answers:

That is low, when my company was still in business the margin was cost plus 10-15% depending on the customer.

Mary asks…

what is the gross profit margin on package liquor sales?

Meaning…net sales minus only cost of goods sold.

mikey answers:

No

Donald asks…

can someone help me work out the net profit margin for this question please? just talk me through it ..?

im aware net proft margin = net profit divided by sales revnue and then multiplied by 100.. but how do i do it with this question?

A farmer receives 15p per cauliflower, which is 23p below cost of production

what is his current profit margin on the sale of cauliflowers?

mikey answers:

OK, so npm=np/sr*100
Just put in your figures:
npm=-8/15*100= -53% (minus 53%)

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