Future Finance Solutions

The Durbin Amendment and What Business Owners Need to Know

September 17, 2015 by · Leave a Comment 

The-Durbin-Amendment-and-What-Business-Owners-Need-to-KnowWhen Dodd Frank was passed in 2010, one of the provisions put into place by the Federal Reserve was aimed at limiting fees that could be charged to retailers for processing debit card transactions. These fees are fairly common, but they’d been a fairly contentious issue for both banks and merchants up until this legislation.

Prior to the legislation, card swipe fees were unregulated but averaging roughly $.44 per card swipe. For merchants, this uncertainty created an unhealthy business climate. What if merchant services decided to raise fees during Christmas time? That uncertainty caught the attention of Senator Richard Durbin. Durbin added an amendment to Dodd Frank designed at putting limits on these fees.

The new rules that went into affect favored merchants and were widely seen as a loss for banks. Banks were profiting off of those transactions, but the Dodd Frank act limited the fees that certain banks could impose. Those with $10 billion or more in assets had to conform to the new laws beginning in October of 2011.

What You Need to Know

Under Dodd Frank, fees are capped at 0.05% + $.21 cents per transaction. The cost can be raised to $.22 cents if the card has a security chip installed, which many debit cards do.

The issue was disputed several times, but finally brought to a head in January of 2015.On January 20th, the Supreme Court upheld the Federal Reserve’s rule, and the rate has since remain unchanged.

Bio: Firoz Patel is the founder of AlertPay Inc., which was acquired by the UK based company MH Pillars. Firoz Patel is also overseeing operations and development of the Payza platform.

The Perks of Hiring an Estate Manager

September 11, 2015 by · Leave a Comment 

Estate ManagerIf you are one of the lucky wealthy individuals that are in a comfortable financial situation, you have options for investments. There is a chance that you will consider becoming a landlord for an apartment complex. Did you think that you could do it all on your own? There are a vast number of responsibilities that one man/woman might not be able to accomplish on their own. This is where hiring an estate manager helps.

Hiring an estate manager will help you maintain a smooth and fully-functioning operation. Their role is of a leader, they manage the staff and the services of your property while maintaining a professional relationship with you.

You can say goodbye to properties that are giving you massive headaches when you hand over the reins to your estate manager. Their duties are dependent on what you require of them. They can supervise your staff and guide them to what goals that you set. They can also handle your finances and act as a bookkeeper.

One of the best things about estate managers is their versatility. They work carefully in planning out your property structure, from finances to duties. Once a plan is in place, you can leave the rest to them. If managing is not your forte, then consider looking into hiring a manager.

By hiring an expert that you feel has the skill, knowledge, and personality to get the job done; you will definitely take a load off of your shoulders. This means more time spent with your family. Running multiple residences or estates is time-consuming. Your career obligations can get in the way of your family’s needs. If you feel that the possibility is a strong one, take some time out of your schedule and look into getting some property assistance through a manager.

Bio: Kuba Jewgieniew is the CEO of Realty ONE Group, a real estate brokerage firm that provides an innovative platform for entrepreneurs to succeed and thrive.

How Municipal Bonds are Used

September 2, 2015 by · Leave a Comment 

By Phin Upham

When a city needs to expand, it typically requires a loan of sorts to do so. This loan comes in the form of a municipal bond, which is meant to try and make it easier for cities to expand. Bonds fund all the infrastructure a city needs, such as sewer systems or roadways.

Bonds are issued by both state and federal governments, with cities and counties able to do so as well. The laws that govern when a government can or cannot issue a bond are extremely complicated, and they vary by region. Bonds bear an interest rate that is either fixed or variable, but can also be subject to a cap.

Similar to a loan, the issuer receives a cash payment in exchange for an agreement to repay investors for the money they gave. These periods of repayment can vary significantly, from just a few months to more than 40 years. The proceeds are used as capital to fund various projects around the city, and regulations govern how fast that money has to be spent.

These bonds tend to pay lower interest than other forms of investment, but investors will take whatever they can get because that money is usually tax free. So governments win because they get a lower rate to pay back, and investors win because they don’t pay taxes on their returns.

Of course, investors must still stay apprised of risk. As we have seen with Greece and Puerto Rico, governments are not infallible and frequently overspend.

About the Author: Phin Upham is an investor at a family office/ hedgefund, where he focuses on special situation illiquid investing. Before this position, Phin Upham was working at Morgan Stanley in the Media and Telecom group. You may contact Phin on his Phin Upham website or Twitter page.