Hello! My name is Kimberly Peterson. I am an experienced financial advisor with a diploma from University of Chicago and almost 12 years of work in the field. In my line of work I learned a lot of useful hints and loopholes as well as a gret deal of pitfalls associated with loans and credits. I prepared this website to offer you my expertise and asnwer the most common problems, so that you can ejnoy your loans safely.Loan for a sole trader
Businesses merge all the time, but these mergers are often not part of an exit strategy. What we are considering here is the choice of a merger as a deliberate exit strategy for sole traders, or owners of very small businesses. As a sole trader of a small business, in practice your choices of exit options will be limited to a family succession, a trade sale, a sole trader merger, or ceasing to trade. Looking again at the worksheet, the first point is that, obviously, you need to be a sole trader (or own an overwhelming majority of the business)
What’s my credit comfort zone?
My own inventories during the last 12 years have resulted in many changes in my portfolio and higher returns. I have learned that I am a pure investor. I do not do well with either savings or speculations. Savings annoy me. I want to put the money to better use. I have a tendency to make impulse purchases with cash and credit. Therefore, I keep little in money market accounts or others short-term investments, and use no margin, no credit cards, even for personal expenses, and keep mortgages to 50 percent or less of property values. Speculations are a trap
How overconfidence affects credit
Experts with humility rather than overconfidence understood that they knew only a little about the investment aspects of their field or hobbies. Becoming specialists over time, they increased commitments and profits, and had a great time. Stamp collectors who studied, went to conventions, dabbled for years before making substantial purchases had a great time and made a fortune. With the humility gained from taking your inventory and sharing it with another, you can now pursue investing in your field or areas of interest with appropriate caution and good fun. Balance interest with knowledge of your character flaws and you will
Enthusiasm for credit means more than intelligence
Successful investing requires enthusiasm more than intelligence. You will learn quickly and do well in investments that excite you. Use all your personal experience and background to pick asset classes that you can understand and enjoy. For many of you, it is likely that your inventory showed that investing in areas you knew something about triggered the character flaw of overconfidence. Pediatricians invested in HMOs believing they would be better able to pick stocks than the public. When health care legislation ruined HMO prospects, the pediatricians took losses where specialists made profits shorting the stocks. Women with double closets picked
Making credit resolutions
Making resolutions and not following through is a common pattern. “From now on, I will only buy index funds.” “Never again will I own real estate.” “After this, I am sticking to CDs.” Resolutions allow us to be done with grieving the loss. However, they rarely result in lasting change. Everything goes into index funds until something else comes along. Tax avoidance is a common pattern. Many investors rode tech stocks up and then down again just to avoid taxes on the gains. These same investors put money in 401(k)s and IRAs when better investments are available elsewhere. They bought
How to deal with losses caused by credit
A common discovery from inventories is that the intensity of pain from losses is higher than the intensity of pleasure from gains. A few investors are paralyzed by losses yet hardly notice gains. Often their comfort zone is in predictable investments such as Treasury bills and bonds. They fail to achieve high returns in unpredictable investments such as stocks because they are out of the market during large up moves in order to avoid the risk of experiencing losses. However, not all investors experience gains and losses this way. Many traders move through losses quickly and get into winners. In
Credit patterns can be unique or common
Patterns are usually obvious after an inventory but invisible before. For example, a building contractor had a long history of poor returns in his Keogh and IRAs but could not understand why. He bought individual stocks, index funds, growth funds, foreign and emerging market funds, bond funds, junk bond funds, and many other funds and investments. From March 2000 to September 2001, he saw the value of his portfolio drop from $700,000 to $300,000. Meanwhile, his clients made millions from the buildings he constructed. Though an expert on commercial real estate, he had never invested in a building because of