Shielding Consumers from Mortgage Relief Scams

Shielding Consumers from Mortgage Relief Scams

By Sarah Parr

The United States has some of the most deceptive businessmen of modern times: mortgage relief scam artists. They profit from worried homeowners who are behind on their mortgage payments and give them a false sense of hope. To find clients, scam artists may look through newspapers or go through foreclosure filings at courthouses and government buildings to target areas known as centers of foreclosure activity. Advertisement may come in the form of door-to-door solicitation, flyers on telephone poles or roadside signs or traditional web, radio and television advertising.

Homeowners might not have the time to research mortgage relief scams, so here are a few tips to avoid the dangers of a scam.

Before shelling out money…

It is free to qualify for specific government programs that aid in the loan modification process or foreclosure defense. It also doesn’t cost a penny to speak with a Housing and Urban Development (HUD) approved housing counselor. Nonetheless, shady companies have been caught charging clients for access to government programs and housing counseling. If a homeowner rescue company asks for thousands of dollars upfront for access to the latest government program or a recent mortgage settlement, it could be a sham. Government and housing counseling information can be easily accessed online. Homeowners should also be cautious of companies that urge homeowners to pay mortgages to them and not to the loan provider.

Nothing is “guaranteed”

Protection from foreclosure or the modification of a loan is never promised, and access to certain government programs may only be guaranteed for some borrowers. Regrettably, mortgage relief scam artists will try anything to convince someone that a loan modification or foreclosure defense is guaranteed. A scam artist may pose as a member of an official organization approved by, or affiliated with, the government and claim that a homeowner absolutely qualifies for a specific government program that aids in foreclosure defense or loan modifications.

Detecting posers

Scam artists will do anything to appear as valid as possible these days. It is common for non-attorneys to pose as attorneys and offer loan modification services. Consumers should be waryhttp://g-xavierayeebo.blogspot.com/ 

FINANCIAL LITERACY FOR ALL-MUTUAL FUNDS IN GHANA

“Today millions of people have their fingers crossed, hoping the Dow keeps climbing. This is not investing. This is gambling. Betting your future on the ups and downs of any market is risky, very risky.”

Like I always do, I do not give advice. I give you financial education and then you make the choice yourself.

 A mutual fund is a “type of professionally-managed collective investment vehicle that pools money from many investors to purchase securities. While there is no legal definition of mutual fund, the term is most commonly applied only to those collective investment vehicles that are regulated, available to the general public and open-ended in nature. Hedge funds are not considered a type of mutual fund”

Another definition says a mutual is “An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus”

We live in a global village. Today, what is happening in South America, Asia, etc is watched live in all parts of the world.

In the world of finance and investing, innovative investment products and current news of global financial and economic issues are also streaming live every minute from all parts of the earth. It is therefore, very easy for people to try to adopt or even mimic, and imitate the origins of some ideas, skills, products, services created by some people some where else in the world, so they too could create something similar .

Today in Ghana, there are a number of mutual funds and unit trusts running in the Ghanaian economy.

Those, that have been reading my writings, would recollect what I wrote under the topic “Financial Literacy for All-Portfolio Income” which you can read from my blog through this link http://opinion.myjoyonline.com/tgopinion/print/index.php?url=http://opinion.myjoyonline.com/pages/feature/201006/48038.php&contentid=48038

In this write-up, I am going to discuss some great features about mutual funds including the advantages and disadvantages.

Warren Buffet said “The dumbest reason in the world to buy a stock is because it’s going up”.

The stock exchange market experts say that the Ghanaian Stock Exchange Market is one the best performing markets in Africa and I believe it is because of this confidence in the Ghanaian Stock Exchange market that encouraged a number of companies especially foreign companies, like Tullow Plc to list in the Ghanaian Stock Exchange, though there are many other reasons for listing.

Mutual funds are mostly shares bought bits on behalf of individuals, mostly small investors from companies, especially listed companies on various stock exchange markets in the world. At least, they make us believe the stocks/shares are bought from various stocks/shares from companies in different industries and for that matter these funds are well-diversified.

Few years ago, there were no mutual funds in Ghana, till one was established and since then there have been a number of them now operating in Ghana. Their operations and activities are being regulated by the Ghana Stock and Exchange Commission and the Ghana Stock Exchange.

Like in all deals, prospective investors are always asked to invest in mutual funds without much education to you. Where some education comes, it is from the seller, who is actually is not going to be truthful and objective. Surely, the seller’s education would be one sided geared towards his/her interest and gains.

When one buys mutual funds especially for retirement and capital gain purposes, one is doing what some experts call “Buy, hold and pray”. The likelihood that price will go up for one to sell and make more cannot be guaranteed by one. The determination of the price down or up is beyond one’s control because world economic factors and many others, some of them being genuine factors would be beyond one’s control.

Mutual funds in Ghana just like in many countries have these:

·        One can invest with small one amounts of money, say Ghc5.00 and build on it for the short, medium or long term. Little drops make mighty financial wealth.

·        Mutual funds accumulate pool of funds for massive investments in other sectors of the economy.

·        One can just go to any of the main banks affiliated with these mutual funds companies to deposit cash that would be used to buy the fund for one.

·        One can get substantial gains since it is not like a say, Treasury Bill (T-Bill) where one’s principal amount remains intact irrespective of what happens. Mutual funds depend on the ups and downs of the stock exchange market(s). It is a high risk investment scheme that can also give very high returns.

·        Mutual funds can give you great capital gains, (capital gain is the increase in value of your investment, say, it was Ghc10.00 but now it’s Gh15.00, the increase of Ghc5.00 is the capital gain) maybe for your retirement or other purpose.

·        One can download some of the application forms from the internet in the comfort of one’s office, fill and apply online.

·        One can buy some fund in trust for one’s under age child just like other paper assets.

·        In some mutual fund companies, a bank is situated, so one can just cash one’s redemption or deposit cash for purchases of some fund. This enables easy business transactions.

·        Mutual funds are being regulated by the Ghana Exchange Commission and the Ghana Stock Exchange.

·        No real taxes paid on capital gains on mutual funds in Ghana as at now but taxes are paid on capital gains on mutual funds in other countries.

·         One can easily sell one’s funds and get back one’s money.

Now, let’s consider some great disadvantages:

·        Huge fees are being charged by these mutual fund companies. Some of the fees are even charged at the time a fund is purchased for you. There one mutual fund company in Ghana that charges between 2% to 3% on redemption (redemption means, you selling part or all of your shares or fund, i.e. you taking back your money with or without gains) depending on the numbers of years your fund has been with them. Two percent (2%) is a very significant figure yet; this is how much they charge you for giving them your money to take care of for you. There is a saying that the mutual fund companies put up 20% of the money but make 80% of the profit. This means the investor, like you earn the smaller part compared to what the fund managers make for their companies, because commissions and other charges are never fully disclosed.

·        One can lose almost all one’s money, since it is not like a say, Treasury Bill (T-Bill) where one’s principal amount remains intact irrespective of what happens. Mutual funds depend on the ups and downs of the stock exchange market(s). It is a high risk investment scheme that is why one can lose all one’s money. The principal amount is keeps moving up and down.

·        Mutual funds do not give steady cash flow. You get capital gains if you are lucky.

·        When one buys mutual funds, one has no more control over one’s money. Your money is now in the hands of people who are financially educated and they determine the price to buy for you and to sell the shares for you. You do not have a say or decision in the prices quoted for the fund. You cannot protect your own money. Where there is little control or no control, risk is very high.

·         In some mutual fund companies in Ghana, when one wants to sell one’s fund, one cannot get one’s money that very day. With some, one even needs to have a current account with a bank, because, they would give you a cheque to pay in and cash it later or they open the cheque for you to go to their custodian bank with long queues and spend the rest of the day there.  Why can’t investors get their money the same day?

·        Some mutual fund companies charge great amounts even statements requested.

·        When you buy mutual funds, you are just buying common shares or stock and these cannot make you a selling shareholder or an inside investor or even the ultimate investor. Selling shareholders sell shares to buying shareholders. Selling shareholders are the real owners (inside investors), who make a great deal of the money. Ultimate investors set up companies and take these companies public by floating shares.

·        Research has shown that mutual funds do not have consistent performance. Basically, they are off and on. Good past performance does not guarantee a bright future at all. Many investors in mutual funds have taken decisions that will have great impact on their financial future.

·        Mutual funds are claimed to be well-diversified, meaning that because the shares are bought from indifferent companies in different industries, turbulence in one industry cannot necessary affect that of other industries. The mutual funds experts say “don’t put all your eggs in one basket” but they have forgotten that they all eggs but not mixed with some gold bars in the basket. They have also forgotten that, if not all eggs in one basket, then it really means, it’s not good to have all one’s investments in one market controlled by that same market.(i.e. the basket)   Warren Buffet said “Diversification is protection against ignorance”

In my advanced financial management studies, I know markets have systematic risks and unsystematic risks.

The Investopedia explains 'Systematic Risk' as “Interest rates, recession and wars all represent sources of systematic risk because they affect the entire market and cannot be avoided through diversification. Whereas this type of risk affects a broad range of securities, unsystematic risk affects a very specific group of securities or an individual security. 

Systematic risk can be mitigated only by being hedged. Even a portfolio of well-diversified assets cannot escape all risk”

It also explains unsystematic risk as “Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through appropriate diversification. For example, news that is specific to a small number of stocks, such as a sudden strike by the employees of a company you have shares in, is considered to be unsystematic risk”

A different school of thought believes that true diversification is where one has investments in businesses, stocks (paper assets), real estate, commodities, etc. These are all not related and never traded on the same market though companies under them could be trading shares on the stock exchange market.  If one has billion of shares as mutual funds, these shares are being traded on the same market. There is enough evidence to prove that when the stock breaks down, in say America and other advanced countries, stock exchanges all over the world are affected. We saw it in 2007 and even it is still happening.

·         One other thing that is not clear with mutual funds is that fund managers claim the shares are bought from different companies in different industries to help manage risk, the evidence is not transparent. It is just assurance to investors by fund managers, but for all one knows all one’s shares are always from the same company loaded with both systematic and even unsystematic risks, especially where fund managers have difficulty buying shares from different companies in different industries but can easily buy from the same company, wouldn’t they buy?

Some people even say that there is nothing mutual about mutual fund. They say it is one-sided and really geared towards the benefits of the fund managers.

Financial education is essential for all since in one way or other we all invest. Financial literacy is needed by all to help humanity get liberated from financial captivity.

When one is financially literate, one can fully understand financial issues and financial products and one can really take informed decisions on investment issues. It is hard to get money these days, so if one gets some money one needs to know what exactly what one wants to do with the money and best advice is be financially educated. Financial literacy is not Accounting or Finance. Financial literacy or education is all about money. We all use money. Don’t we? We all work hard for money, don’t we? Why don’t you invest some of your time in learning something about money? If you can spend thousand of Ghanaian cedis, dollars, etc, to get yourself educated on Medicine, Accounting, Finance, Law, Engineering, Communication, etc so you can earn high pay, then why don’t you spend your leisure time learning how to have control over your hard-earned salary?

I have said that you cannot live in the world today and beyond without being financially literate. You would be branded as someone, who never thought of generations and society after you.

Godwin-Xavier Ayeebo is a Financial Literacy Activist, an Accountant, a Writer and founder of Financial Literacy Training Institute, (FINALTI) a non-governmental or not-profit making organization incorporated and registered under the laws of Ghana to help educate the Ghanaian and the world populace on Financial Literacy.

I entreat all, individuals and institutions that have interest and passion in Financial Literacy Education in Ghana and in the world to come and support Financial Literacy Training Institute, (FINALTI) reach out to greater number of people through free educational sessions. Support can come in any form and you can contact us through the emails below.

©2012, Godwin-Xavier Ayeebo

Email: gayeebo@gmail.com or finaltigh@gmail.com

Blog: http://g-xavierayeebo.blogspot.com/

Website: http://financialliteracytraininginstitute.getafricaonline.com/

FINANCIAL LITERACY FOR ALL- BUSINESS OPPORTUNITIES IN GHANA

“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty”

Ghana is a country blessed with many good resources. God has blessed Ghana beyond our imaginations.

Much as there are great business opportunities in this country, Ghana is still bedeviled with many nasty things, like filth, unacceptable road accidents, illegal mineral mining and the pollution of water bodies, maltreatment of patients at various hospitals, indiscriminate cutting down of timber and other trees, unacceptable post-harvest losses, deadly application of chemicals on farm produce, usage of dirty water for watering vegetables in the cities, especially. There are also unacceptable bureaucratic practices in registering businesses currently in Ghana. Go to the Registrar General Department and you would experience what I am saying.

What are regulatory the authorities doing to stop and discourage all these practices? I don’t know why these authorities exist in the first place, because many of them are not really functioning.

I don’t need to mention these authorities, though I could, without fear or favour. They know themselves and they need to wake up from their sleepless slumber. As Bob Marley said “Rise from your sleepless slumber” These authorities are not sleeping yet they are not awake too. This lukewarm attitude cannot help. Wake up or just sleep!

Ghana is a land full of milk and honey, yet many Ghanaians are not able to take the opportunities and even where they have the potential to take the milk and honey, they would be denied, but in many cases people just refuse to see the opportunities before them. I must also add that, some few try to take up these opportunities, but get frustrated along the way by people, who seek for their personal gains without thinking of the greater benefits for all in the long term.

Today, in Ghana business opportunities abound in many sectors, small or big. These business opportunities can be taken up by Ghanaians as well as foreigners, but it seems it’s only the foreigners’ mind’s eyes that can see these opportunities, or is it because they have the purchasing power? Well, not in all cases. The other thing is that Ghanaians have the attitude of helping foreigners to succeed rather than their own brothers and sisters. Ghanaians give preferential treatment to foreigners and frustrate or even sometimes deny their colleague Ghanaians. This is very bad. Why not give the same treatment to all human beings?

Business opportunities that we should consider can include:

·        Kenkey factories and modern large scale kenkey business- we all know that kenkey, being that of the Fanti’s one or the Ga’s one is being patronized by many Ghanaians all the time and I believe strongly that is a great market here. Innovative, healthy ways of preparing and serving kenkey could be another big business added to the fufus, bankus, rices, etc, served at restaurants and hotels.

·        Brewing of Pito- another good business is the local drink brewed mostly in northern Ghana, especially Upper East and West Regions and mostly by the same northern people in southern Ghana. Every time, you see many people gather at pito houses to drink pito and you wonder, what at all does pito have? Some spend hours there drinking and discussing businesses and other issues.  One thing is that all these pito houses are small-sized and mostly don’t meet standards, though I don’t know if they are being regulated, I believe they should be.  My brothers and sisters from the north, this is a good business opportunity that one can take up and add innovation and more creativity to it in terms of branding and packaging and lo and behold, one would be on one’s way of getting rich right there in northern Ghana. I’m from the Upper East and I take only the unfermented one as it is called it but I have heard people hail pito as a good local drink that has some health benefits. Again, though, I don’t really go many places but I’m yet to see any modern pito house of that high standard, where dignitaries and big men and women could go and sit down and drink pito like they do with beers, wines, at decent spots and restaurants. Why not brand pito and package it well so it could be sold at the big restaurants and hotels?

I have also heard that these days, some unscrupulous pito brewers have been adding some strange or foreign substances to their pito to make it “stronger” or “harder”. I believe this should be checked by the authorities that are supposed to regulate pito brewing, so that the real pito made up of just millet and water is brewed for people to drink. The health of the Ghanaian should be the concern of all and as a responsibility of those paid to protect the Ghanaian from consuming unapproved substances added to pito when it’s brewed.

Natural pito prepared and served could become a big business venture for entrepreneurs, who would to go into it. It just has to be branded and packaged well.

·        Road Accidents in Ghana, I have written a long article  on road accidents in Ghana and you can read from this link: http://g-xavierayeebo.blogspot.com/2010/07/road-accidents-in-ghana.html

It is one issue which is very dear to my heart. I hate the way many people are dying on our roads and nothing is really being done about it.

We have what we call spiritual money, (see link: http://opinion.myjoyonline.com/pages/feature/201104/64649.php) which is not really about money but just about doing God’s work that eventually results in making you rich. I believe there is spiritual money in road accidents in Ghana. Individuals and organizations that would dedicate their resources to fighting road accidents in Ghana to almost a zero-level would experience phenomenal riches in the form of spiritual money. I believe world class professional training and education of drivers, auto mechanics and other professionals connected with cars and vehicles and also with collaboration developed among the Ghana Police, DVLA, Road Safety Commission or Authority, various lorry stations and terminals and other stakeholders can help reduce road accidents in Ghana.

I would urge individuals and organizations to take this up and help, if possible eliminate road accidents in Ghana.

·        Medical Tourism, I have also indicated my desire that part of the oil revenue (see link: http://g-xavierayeebo.blogspot.com/2010/07/oil-revenue.html?spref=bl) should be used to create medical tourism in Ghana. How long would our dignitaries continue to travel outside to seek medical treatment any time, they fall sick?

 It is disgusting, how Ghanaian patients are being handled and treated at the various health centres in this country, especially patients at the so-called government hospitals, clinics, health centres, etc. Sick people are maltreated and not catered for very well and nobody dear talk. Let’s have stiff competition from foreigners coming to set up big modern hospitals with their business acumen and care and let’s see if the those Ghanaian medical professionals, who don’t not value their patients can continue to do that and let’s see if that Ghanaian medical professional would continue to be in demand and be in business? There is so much business in this sector and I urge foreign investors to come and invest in the provision of world classes medical facilities and to provide medical services to compete away the super normal profits made by the clinics and also teach those Ghanaian medical professionals, who do not value their patients.

Just, August, this year, 2012, one of my nephews had a motor accident at Atebubu and was eventually transferred to Komfo Anokye Teaching Hospital (KATH) in Kumasi. We first went to the Polyclinic department and we were taken by an ambulance to the Accident Emergency Unit (AEU) and when we got to the AEU, it was 4pm and as at 6pm we had not been attended to, meanwhile, the Doctor, who was supposed to attend to us, was over there roaming about doing nothing. Initially, I complained to one of the nurses, who was actually hardworking that day, at least I saw attending to patients and being nice to them, but there was this other dark coloured diminutive nurse, they described as a mistress or so, who over heard me complaining and she just exclaimed, “Ah, you came at 4pm and you are complaining!” Later I complained to the Doctor and it didn’t take that long, he attended to my nephew. I know that it was not my complaint that made him do his work, but why did they have to wait and wait and wait without attending to the sick people at an even an emergency unit, though it was at the minor treatment section, does it matter? I had experienced similar treatment at the same hospital in 1998 on two different occasions when two family members were not well and got admitted over there. One of them my direct elder brother even died over there in 1998. Around, the same time, there was this great, kind, and real professional doctor Called Dr. Aboah. Dr Aboah at KATH was and I believe if he is still at KATH or wherever he is, he would continue to be loved by all his patients. He is a kind of a medical professional Ghana needs not those, who insult their patients.

Ghana therefore needs real humane medical professionals to come and help take good care of its greatest assets, the human resource. It is true that Ghana has many kind-hearted medical professionals, the majority especially many of the nurses don’t treat the patients well at all. Most of the kind-hearted Ghanaian medical professionals are found at the private hospitals and clinics. Why, can’t that be replicated at the Government or public hospitals and clinics?

Ghanaians would be prepared to pay appropriate commensurate medical fees for treatment and not complain when the services provided are satisfactory. 

·        Waste Management, Zoomlion, a Ghanaian waste management company is really doing well in this sector since its advent and has not reneged, but I believe Zoomlion is over burdened by the filth that has engulfed Ghana. I would encourage indigenous Ghanaians to take up this opportunity to help Zoomlion clean Ghana.

Few days, ago I heard the Minister of Local Government on Joy Fm talking on new government initiatives on sanitation in Ghana. I hope it would not be a nine day wonder. He said many good things as usual, but thing that I want to share with you is that he said, if you see your colleague Ghanaian throw some rubbish into some drain, or gutter, tell that person, that his/her should use his/her  brain not the drain. “Use your brain, not the drain” . I hope this phrase would catch up with many Ghanaians, especially the dirty intellectuals. This was from the Minister’s mouth. We should be shaming people in public when they throw trash into the drain.  

·        Islamic Banking-This is currently not practiced in Ghana. I would therefore urge Asian banks that are practicing Islamic banking to come to Ghana and I believe they would be overwhelmed by the customer base they would build within a short time.

·        Agriculture & Farming- It is true that everywhere in Ghana, one can sow seeds or plant seedlings and one is very sure the seeds or seedlings will blossom and bear good food or fruit. I don’t understand why governments, especially those that call themselves social democrats are not practicing commercial or large scale farming to feed the citizenry. Farming in the southern or northern Ghana can be in mango trees, teak trees, avocado trees, pea trees, cola trees, pineapples, guavas, cassavas, yams, potatoes, millet, maize, beans, sheabutter trees, black berry trees, grapes, peppers, garden eggs, okras and all vegetables, cotton, cocoa, coffee, timber, bamboo, rice, rubber plantation and many others. Other related businesses in farming are transportation, warehousing and other storage facilities, farm inputs and implements, provision of irrigational facilities, like dams, pods, pipelines connected to lakes, rivers, streams and other water bodies for watering farms. Each identified above could be taken as a business venture.

·        Transportation- This is also one of the biggest industries, looking at the provision of sea, land, rail and air transport services. In Ghana, today, almost all travelling is done by road with very little in air transport. The rail line system has collapsed and there is nothing when it comes to travelling by sea or on any water body, canal, river, etc, meanwhile, there are rivers and streams everywhere in this country. One sad thing is that car and lorry drivers are fleecing Ghanaians and at the same time killing Ghanaians through reckless driving on the high ways. Better modern transportation alternatives are needed in Ghana to help make these reckless drivers reason and sit up.

·        Herbal Medicine- The good news is that Ghana has almost all the medicinal plants to handle any ailment, yet we have been conditioned to believe in only the efficacy of orthodox medicine. I believe the government of Ghana should enact stringent good laws to protect and promote herbal medicine and practitioners and also help promote herbal medicine for local consumption and export. We should protect our dear herbs and make profitable use of them.    

·        Oil and Gas – The oil should be refined in Ghana eventually and all the by-products should be enjoyed by Ghanaians first. Every business minded person knows the good businesses in the oil and gas industry. To begin to give a list would be time-consuming.  It is crystal clear.

·        ICT-This is good a business sector that will be booming in Ghana, because ICT usage is still very low in this country. Access to the internet is very low and I believe the internet service providers currently operating in Ghana are waiting for a new service provider to come and connect the net to all houses in this country before they begin screaming. We saw it when it happened to the then Ghana Telecom, one needed plenty Ghanaian cedis to buy the chip and even at many times, people had the money and wouldn’t get the chip to buy because they were hoarding them to make supernormal profits, in the end they made losses and sold off Ghana Telecom to Vodafone.

Access to the internet should be like electricity make available to everybody on prepaid or post basis and people would patronize it. If one needs internet service in one’s house, the workers of Vodafone would tell you stories to scare one away and then think they are smart. Well, let’s wait to see, very soon the same workers would be laid off for redundancy and they would turn around to accuse someone of their own bad deeds.

Ghanaian needs internet services in all their homes and the service provider that will take the lead would not regret venturing into it.

Ghana, a peaceful country with lovely and lively people is a country that abounds with many business opportunities for the small, medium and large business persons and entities.

I would like to urge and encourage the Ghanaian and foreign business men and women to invest their resources in Corporate Ghana as they would reap bountifully.  

“Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage”

©2012, Godwin-Xavier Ayeebo

Email: gayeebo@gmail.com

Blog: www. g-xavierayeebo.blogspot.com

THESE ARE TRYING MOMENTS

The abrupt silence of Tuesday, 24^th July 2012 still humbles all and sundry, young or old.

The sizzling waters of the Ekumfi Otoum still wail and lament unabated.

Trees fall but this great tree has fallen indescribably. Lakes and rivers dry up and the rains stop falling but this drought is unspeakable. The oceans ebb and come in but this flowing-away of the mighty ocean is ineffable.

The beautiful flowers from the stunning valleys of the Central Region cannot blossom any longer; they have become stand-still and thirsty of the morning dew.

 The silence of the waters of Ekumfi Otoum is not understandable. The quietness of the voices of the fishermen of the Central Region cannot be explained. They are thirsty, though soaked in the abundance of water.

The stillness of the atmosphere and the gloominess of the firmaments were a clear announcement of the departure of a great son of our land, but who could understand this in the hours before your going home on 24^th July 2012.

Academicians remain dumfounded and speechless. They cannot explain this theory. They don’t even understand it. They are now trying to learn the lessons of theory that cannot be explained by man. 

Politicians have been become stationary. They are at a fix. They have lost their leader. They have no political words to describe this one. 

Professionals have mixed up figures and words together trying to define and calculate your death.

Students stand with their mouths open ajar confused with the news they have just heard, their former lecturer is gone forever.

Generations have been deprived of your memoirs. Can they imagine what you were going to write?

Ministers, Deputy Ministers and all your appointees stamp their feet in disbelief. Their beloved president and father had left them without saying goodbye.

Physicians stand helpless. They don’t have cure for this one. They wished they had, but it was beyond them.

Priests and pastors prayed but God prevailed.

Pupils yearned for better Ghana classrooms, uniforms and books but you gave them memorable lessons of your life on earth.

Security personnel were awake, but couldn’t wake you up. They provided adequate security yet you could not come out of your 37. You slept alone in there. You communicated to nobody, but your Creator.

The eyes of your vice president are still swollen and when and how would they dry up? Time cannot tell. Wisdom of men cannot discern. Knowledge cannot even try to guess why?

God, your Creator and your good Father can explain better, but whom would He explain and why should He explain?

Lessons have been learnt but the hard way. Unity seems commonplace after your death.

The songs of the beautiful birds of Regimmanuel Estates have become discordant in the ears of the residents. They cannot even listen. They are perplexed and dumfounded. They have lost a great neighbour.

The growling voice of “sweetie pie” cannot be heard by Her Excellency, the First Lady, Dr. Mrs. Naadu Mills, your wife, any longer. Her throat is chucked with grief. Her eyes are filled with undying tears. Her feelings and emotions can explain. Her husband, her life companion her president has left her in the middle of this life full of meaninglessness.

Her voice cannot say it, her eyes cannot blink or wink, they are weary and weak. Her emotions and feelings cannot explain it. Her wisdom might seek from God.

Her heart bleeds blood of tears. Her heart bleeds grief and everlasting sorrow. Her heart doubts the news in ears and her eyes were yet to see.

The thumb of the Ghanaian electorate has paused to rethink and decide fast whom to thumb print for in the December 2012 elections. Your party cannot tell whether it will gain or lose votes. It shall be hope for history. Only time will tell.

The insolence of all who insulted you will now continue to haunt them. You have been vindicated by your good, indeblible transparent works.

The insulting sharp tongues of your opponents and enemies within or without have remained silent and shamed. How are they going to say it again? Where are they going to say it? When would they say it again? Why must they say it again?

The indolence of non-performing appointees has come to an end.  Their torpor will drive them away in the new Ghana after your departure.

Your beautiful smiles, laughter and humour will be missed forever.

Your humility and peace-loving nature has brought unity to mother land, Ghana.

Your humble life style is on the lips of all even those who wished you death.

Your peaceful kindness is being preached every second today by all and especially those who were violent against you.

Your love for all has already manifested.

Your selfless nationalistic nature and true love for your country and your hard work brought you down on your knees and now you lie supine. You refused to take some rest even at a time you were supposed to.

It is no wonder. It is no wonder. Why, didn’t your Creator know you inside out?

Why question the wisdom of God?

Why question the time of God?

Why question the place chosen of God?

24^th July, 2012 at 37 Military Hospital, you decided to meet your Creator in peace.

Ah! It is not coincidence at all that you left on 24+07+37 = 68.

Ah! You had agreed with your Creator already. You had known your time already, yet the military at 37 wanted to follow and guard you. I know you smiled at them and told them this time you were alright to be left alone in freedom, but they had no vision to understand the works of your Creator.

Your soul rejoices in freedom in its rightful place and today you are happier than before that you came to this world and served God and mankind.

The veins of my knees felt your departure when they knelt to pray for you immediately I heard the news of your death on Joy FM Breaking News.

The saliva of my tongue became thicker and stood sluggish when my mouth tried to open to say a prayer for you.

The arteries of my heart run faster when they heard the news of your death.  

The international community and the whole world remember you for your democratic credentials.

Ghana your beloved country, honours you for your humility.

Ghana your beloved country, remembers you for your hard work.

Ghana your beloved country holds your candle burning and truly alight.

Professor John Evans Fiifi Attah Mills, I salute you.

 Damirifa due! Damirifa due!! Damirifa due!!!

 Till we meet again, safe journey and sleep well.

©, 2012, Godwin-Xavier Ayeebo.

Email: gayeebo@gmail.com

www.g-xavierayeebo.blogspot.com

FINANCIAL LITERACY FOR ALL-CASH FLOW & CAPITAL GAIN

  FINANCIAL LITERACY FOR ALL-CASH FLOW & CAPITAL GAIN

The neighbourhood is quiet. Today, 8^th February 2012, Ghana lost one goal to nil in the semi-final football match against Zambia in Equatorial Guinea where they are co-hosting the African Cup of Nations (AFCON) with Gabon. This was a match Ghana should have won but lost because we had no better strategy. Ghana even had a penalty in the first half and it was saved by the Zambian goalie.

This is the third consecutive time; Ghana has lost to its opponents in an African Cup of Nations’ competitive football match. We lost one nil to Cameroun in a semi-final match on our own soil in 2008 when Ghana hosted the tournament. We lost one nil to Egypt in the final match in Angola 2010 and again we lost one nil to Zambia in a semi-final match in 2012. Interestingly, all these goals against Ghana were scored by substitutes by those winning teams. The Ghanaian coaches had no ideas. They watched the games but they could not see any way out. The other coaches saw and then took advantage and won. Tournament after tournament Ghana loses painfully but does Ghana learn any lessons?

Ghana has won the cup four times and all these were won by Ghanaian coaches. Ghana is the only African country to have won the Under-20 World-Cup and that team was coached by a Ghanaian, Sellas Tetteh. Why can’t Ghana have a Ghanaian coach to get us the cup again instead of foreign coaches, who keep disappointing us? Does Ghana learn any lessons?

It is our tax money and it is the footballers’ tax money that Ghana is not investing properly.

Investment should be made with a strategy to gain having known and tested the terrain and many others factors taken into consideration.

Every investment made should bring returns in the form of cash flows and or capital gains.

Every investor has an objective whether they are investing for cash now or for capital gains in the future. Capital gain is dependant on future economic trends and factors.

In a football match like Ghana played today, the result was needed now not tomorrow, if the players won they would have won instant cash, .i.e. winning bonuses. The returns of their investment at this level of the tournament are instant cash rewards. They win a match and get paid bonuses. If they were to get to the final and win the ultimate then their returns will be in the form of instant cash flows and maybe capital gains.

Most great investment products should provide both cash flow and capital gain or capital appreciation. Where both are not possible, then cash flow is better than only capital gain, which is expectant on future happenings and many other factors. The gain might even not happen at all. Inflation could even erode the value of the gain in the future. Cash received today is better and can be reinvested else where on other cash flowing assets.

Capital gains are got mostly from paper assets like shares, bonds, mutual funds, insurance, savings and others.

Most valuable investment assets should bring cash into our pockets today whiles its value keeps appreciating or increasing. We therefore get cash now and get capital gain in the future too.

Cash is always king and should reign supreme unless it’s heavily taxed and capital is also really assured and is tax free.

      

Cash is King

Cash ‘consists of cash in hand and deposits repayable upon demand less overdrafts.’ ‘This includes cash held in foreign currency.’
Cash flow is best because:

·         Cash on hand now is always better and more valuable than uncertain cash to be received tomorrow or in the future

·         Cash can be spent now on any investment and get more cash back.

·         Cash on hand is not depreciated against future inflation; its value is worth more now than in the future.

·         Cash is needed every day for daily expenses, hence cash is king and more important than future uncertain gains

·         Businesses are run with cash on hand not cash expected. All businesses would collapse if they don’t have enough cash on hand for their daily expenses. 

Capital Gain

“Capital gain is an increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short term (one year or less) or long term (more than one year) and must be claimed on income taxes. A capital loss is incurred when there is a decrease in the capital asset value compared to an asset's purchase price”

Capital Gain

·         Capital gain is about gambling into  the future with uncertainties for a gain

·         Capital gain time value for money is not better as cash is ready for spending today

·         Capital gain investment is all about capital appreciation. In other words expecting a gain on the investment in the future which is equal to gambling that the value of the investment will go up, if it is sold. The gain might not come at all. Where it comes inflation would have also come for its share, thereby devaluing the gain.

·         In some tax regimes, a capital gain could be disincentive as tax takes a big part of the gain away.

·         Most capital gains are from investments on the stock market, which is not perfectly efficient and ruled by world economic factors.

·         Capital gains, however, on real estate could be slightly taxed in some tax jurisdictions but heavily taxed in some countries.

·         Most capital gains are from investments managed by asset management companies or individuals called investment professionals. This means, you, the investor does not have much control on the movement and management of your own money. The gains or loss is determined when you, the owner are not involved.

Valuable investment assets should bring us both cash flow now and capital gain in the future. Where these two are lacking, then you want o reconsider the investment decision and channel it through another investment opportunity where the two are possible to get.

© 2012, Godwin-Xavier Ayeebo

Email: gayeebo@gmail.com

Blog: www.g-xavierayeebo.blogspot.com