American Express, in conjunction with Jean Chatzky, is sponsoring a National Money Talk Night on Thursday, September 16th 2010 in the hopes of providing young adults with a better understanding of managing their finances independently.

Parents are asked to visit www.MoneyNightTalk.com to download and view available resources and ask as many questions as possible.  Then, on September 16th, sit down with your kids and have the Money Talk.  If you need to, use the website during your discussion to answer any questions your children might have and hopefully the entire family will come out a little wiser in the end.

In celebration of National Money Night Talk, we’re hosting a giveaway around family finances.  We want to know from you, what is one tip you have given your teen or young adult on ways to manage money better? Post your answers in the comment section and enter to win a $50 Amazon.com Gift Card, courtesy of American Express. In addition to winning the prize, American Express will pick their favorite tips from this giveaway to post on the National Money Night Talk website.  We’ll announce the winner Friday morning at 8amET and provide American Express with your email so you can be contacted and claim your prize.

If you’re looking for an example tip, allow American Express to kick things off:

American Express Cardmembers can add an Additional Card with Custom LimitsSM to their account to manage and track a spending limit created for their teen (age 15+). Parents can easily go online and adjust the limit for their child’s card at any time, and for those 18 and up, the Additional Card positively impacts the teen’s credit score.

If you’re loaded with tips, you can also check out two other personal finance blogs that are hosting this giveaway.  Make sure to leave unique tips on each, as any duplicated information will automatically be disqualified.

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The 10 Largest Companies in the World

by DR Writer on September 2, 2010

You can measure the size of a company any number of ways.  Market capitalization, the total market value of all shares outstanding and profit margin might work for some but you can also measure a company by total value of assets owned.

Today we will look at total revenue, the total amount of gross the company brings in. All of these companies are ranked by their revenue in US dollars. Keep in mind that some of them prepare their books in other currencies, so the dollar value of the revenue they bring in is subject to change based on the exchange rate at any given time.  Also, some companies don’t use the same US calendar, so the list compares a few different years.

1. Wal-Mart – Despite the occasional accusations of worker mistreatment, the retail chain headquartered in Bentonville, Arkansas employs over 2 million people and raked in over $413 billion in 2009.  Wondering what $413 billion means for profit, well Wal-Mart cleared a net income of $14.33 billion.

2. Exxon Mobil – The oil and gas giant comes in a very very distant second, selling slick crude to the tune of $310.5 billion last year.  If you’re looking for a CEO name that fits a company perfectly, look no further than Rex W. Tillerson who heads Exxon Mobil from their Ivine, Texas headquarters.

3. Royal Dutch Shell – The first international company to earn top dollar, Shell comes in third with $278.1 billion in revenue.  Royal Dutch Shell operates in over 140 countries and is headquartered in The Hague, Netherlands.

4. British Petroleum – London based, the fuel giant raked in $246.1 billion last year, several billion of which will go to cleanup costs and settle of claims after this year’s Deepwater Horizon disaster.   After a CEO resignation and a public relations nightmare, it’s unclear how fast (if at all) BP will rebound.

5. Saudi Aramco – Government owned and operated, Saudi Aramco  brought in $216 billion in 2007.  Saudi Aramco also operates the world’s largest single hydrocarbon network, known as the Master Gas System.

6. Toyota – Getting away from oil for just a second, the Japanese automotive manufacturer brought in $205 billion through March of this year.  Similar to BP, Toyota will have quite the task of maintaining popularity through extreme customer complaints.

7. Samsung – The Korean conglomerate sold phones, televisions, and other products to the tune of $178.3 billion in 2007.  When you think electronics, you used to think Sony but like Blockbuster, Sony is now a second or even third rate provider.

8. Chevron – Add another gas giant to the list because Chevron grossed $171.6 billion in 2009.  Chevron trades on the New York Stock Exchange under the ticker symbol CVX and is headquartered in San Ramon, California.

9. Sinopec – The last of the fossil fuel companies making the top 10, this Chinese oil and gas company grossed the equivalent of $165.4 billion in 2007.  400,000 employees make up Sinopec, whose business includes oil and gas exploration, refining, and marketing; production and sales of petrochemicals, chemical fibers, chemical fertilizers, and other chemical products

10. ING Group – Last on our list is a worldwide financial services provider. Amsterdam based revenues amounted to $165.4 billion in 2009 and ING Direct currently offers US customers the opportunity to open a savings account, checking account or CD.

You’ll find that the most revenue generating business among the ten is, by far, fuel.  Companies with work in drilling, extracting, and refining oil and gas make up 6 of the top ten highest grossing companies in the world. Other industries are only represented once on the list.  Those include retail, automobiles, financial services, and one conglomerate.

Of course, whether or not these are the most profitable industries is another story entirely. To figure that out, you would need to know how much of their revenue is going into business costs. And it certainly doesn’t give much indication of how well positioned these companies are for growth, or whether or not investing in them suits your investment needs and strategy. To do that, figure out your financial objectives, and then take a deep look at your strategy for achieving them, and consider the data and management of these companies. When in doubt, consult a qualified professional.

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What is a W-11 Form?

by DR Writer on September 1, 2010

Employers curious about tax credits, read on: IRS Form W-11 could get you a tax credit.  Form W-11 is a form used to verify that an employee you recently hired is eligible to qualify you for a tax credit under the Hiring Incentives to Restore Employment (HIRE) Act. The form is really just a certification by the employee that states the following: “I certify that I have been unemployed or have not worked for anyone for more than 40 hours during the 60-day period ending on the date I began employment with this employer,” and “Under penalties of perjury, I declare that I have examined this affidavit and, to the best of my knowledge and belief, it is true, correct, and complete.”

Very little information is necessary to fill out a W-11. The form contains only the employee’s name and social security number, and the name of the employer, in addition to the standard signature and date. A Form W-11 signed by an employee allows the employer to file for certain benefits, including a payroll tax exemption and a new hire retention credit.

Only qualified employees may sign the form. A “qualified employee” is one who:

  • Begins employment with you after February 3, 2010 but before January 1, 2011
  • Signs an affidavit certifying that they have not been employed for more than 40 hours in the 60 day period proceeding the beginning of their employment with you
  • Is not employed to replace another employee, unless that employee separated voluntarily or for cause, such as downsizing
  • Is not related to you. An employee is considered related to you if they are your child or descendant of your child, spouse, sibling or step-sibling, parent or other ancestor, stepparent, niece or nephew, aunt or uncle, or in-law. An employee is also considered related to you if they are related to anyone who owns above 50% of your outstanding stock, capital, or profits interest OR if they are a dependent of anyone who owns such an interest, regardless of familial relationship.

After completing the form, you need not send it to the Internal Revenue Service. The Form W-11 is retained by employers with other employment records. (Make sure to retain them. Should the IRS request them, there may be penalties if you fail to provide them.)

The rewards of filing for benefits under the HIRE Act are clear.  For starters, the payroll tax exemption. This exempts employer’s from their typical share of social security tax. That’s 6.2% of an employee’s wages. So, a worker making $30,000 now costs you, as an employer, $1860 less. In addition, the HIRE retention credit is a general business credit that encourages retention of newly hired employees. The credit is good for the lesser of $1000 or 6.2% of wages paid to the employee during the one year tax period. Qualified employees’ wages during the second half of the year must equal at least 80% of wages paid in the first half of the year.

Add it all up and that new hire’s $30,000 salary will cost you $2860 less than it used to. And we can only hope that your new hire helps you take on more business, expand, and bring in more revenue than before.  If you need help filing your taxes this year, you may want to consider both Turbo Tax and H&R Block.  Their free online tax software can make your tax nightmares disappear.

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PenFed Premium Travel Rewards American Express® Card 20,000 Point Bonus

September 1, 2010

If you’re not familiar with PenFed, it’s probably in your best interest to get to know them. Short for Pentagon Federal Credit Union, PenFed has recently launched a variety of top notch rewards credit cards including the PenFed Premium Travel Rewards American Express® Card.  This card, in addition to a bevy of rewards opportunities [...]

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Food Prices Are Soaring Everywhere!

August 31, 2010

Over the last several years, food prices have begun to soar. Not only at high end grocery stores such as Whole Foods but even at chains such as Safeway, Sam’s Club and Costco. Fueled by trends in the global demand for food and the costs involved in supplying it, finding cheap food [...]

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When Is Your Credit Score Good Enough?

August 31, 2010

So you’ve taken advantage of a free credit score offer. With your score in hand, you may have even done some research on what is a good credit score. But the question still remains, what exactly does your credit score mean. How does your score compare to others? And even more [...]

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A Comparison of Online Tax Software

August 31, 2010

With the prevalence of the world wide web, a lot of the brick and mortar businesses have moved online, and tax preparation software is a great example. It wasn’t long ago that the lines at the post office on April 15th went out the door, around the block and down the street. But [...]

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How Much Do Health Insurance Companies Spend On You?

August 30, 2010

Last week, proposed rules were issued and approved by the National Association of Insurance Commissioners (NAIC) for measuring the Medical Loss Ratio (MLR). The MLR is part of the Affordable Care Act (ACA), a law that puts into place comprehensive health insurance reforms that is intended to hold insurance companies more accountable, will lower health [...]

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How to Buy Gold and Silver Online

August 30, 2010

I’ve wanted to invest in gold or silver for some time. Not a big investment, but just enough to give my portfolio some more diversity. Plus I like collecting coins, and gold and silver are a perfect fit. The problem was finding the best place to buy precious metals. I ended [...]

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