Article Presented by:
Copyright © 2009 Marc R. Hill
After facing the monumental task of visiting college campus after college campus, prodding your soon-to-be college student to write those essays and meet those deadlines, filling out applications, pulling mountains of financial data together, completing FAFSA and Profile questionnaires, and overcoming the initial shock of your Expected Family Contribution, you wait. And you wait. And you wait some more. Until, finally, college award letters arrive in your mailbox.
After analyzing the award letters, regaining consciousness and swallowing hard in disbelief at the actual cost of a higher education, you, like many parents, needlessly settle for paying "full price" for your child's education.
Believe it or not, the decision to reduce your college expenses is entirely in your hands. While it's commonly believed that there's nothing you can do to reduce these expenses, as a financial planner and as a parent, I can assure you that the strategies not only exist, but they're also very effective.
But on the flip side of the college funding coin, there are some pricey mistakes that any parent can make. Let's take a look at three mistakes that are guaranteed to keep your college expenses sky high.
Mistake # 1 - Assuming That Your Award Letter Is Set In Stone.
Fact: Your initial award letter from colleges is not set in stone. How is this possible? Well, there are a few different factors that can affect the figures you initially receive.
Often, students who have been accepted at and have sent in their deposit to one school actually end up attending another school. When this happens, the school, having already budgeted for the size of the incoming class, is now faced with a decision about how they're going to fill those vacant seats. At this point, they become more willing to sweeten the deal for certain students and provide better financial packages in order to maintain enrollment goals.
Additionally, schools will rank potential students from a desirability standpoint - they claim they don't, but believe me, they do! Your student will fall someplace in this "pecking order." Financial Aid packages are customized with this ranking system in mind and award letters are sent with stated deadlines for acceptance.
Keep in mind that not all students who are above yours in this order will end up at this institution. I dare say that most won't, which leaves a potential opening for you. How? Well, doesn't it make sense that if candidates who are placed higher in the food chain decline the offer to attend, that more money is potentially available to be applied to your favorite candidate?
Mistake # 2 - Not Understanding The "Early Decision" Application Process.
Under the early decision application process, your student agrees to a binding commitment if the college accepts your child and offers an adequate financial aid package. Although your child may apply to other colleges through the standard application process, if your child is accepted by the "early decision" institution, your child must then withdraw all other applications.
So, how can the early decision process cost you big bucks? Let's try looking at this from a different perspective. Imagine you are currently in the market for a new car. You know exactly what make, model, color and all the little goodies that you want in order for it to be for a successful purchase.
You then stroll into your neighborhood car dealership, let them know all of your requirements and conclude by saying, "I am going to buy the car today, you're basically the only dealership I am going to, and dog-gone-it, I want your best price."
By applying "early decision," you are basically informing the college that they have no competition. So, unless your student meets all of their desired requirements, you may be leaving money on the table.
If you decide to pursue "early decision," make sure you have a complete understanding of your rights and obligations as they pertain to that particular institution. Also understand what constitutes an "adequate financial aid package" so that there are no surprises.
Keep the competition alive and consider an "early action" application - your savings may be considerable.
Mistake # 3 - Not Developing A Relationship With The Financial Aid Office.
Most parents and students lack an understanding of the relationship they should develop with financial aid officers and the role that the financial aid office can play in reducing college costs.
First of all, it is very important that you establish a personal relationship with the aid office at your potential schools. The old saying, "It's easier to help someone you know than a stranger" certainly applies.
Second, you should understand that college financial aid is big business and that the goal of each individual financial aid office is to meet enrollment goals set by the institution with the best "fit" student at the least cost to that university.
That being said, the Director of Financial Aid has broad discretion when it comes to adjustments made to your financial aid application. This is referred to as "professional judgment" and allows the officer to change items as he or she deems fit in order to more accurately reflect your financial situation.
Special circumstances include such things as one-time bonuses, loss of employment, disability and large medical expenses. Be sure and document these expenses and notify your financial aid office of these special circumstances as they occur.
So, yes, we all make mistakes. And with a monumental and often confusing task like college financial planning, it's especially hard not to trip, slip up and flub now and then. But with careful planning and an understanding of how the college financial aid system works, you can avoid the mistakes that mean the difference between saving big bucks and breaking the bank.
About the Author:
Marc R. Hill founder of Reduce My College Costs, LLC a financial planner by training now works full-time as a publisher and coach to educate families about ways to dramatically cut college costs. Hill publishes a free monthly e-newsletter, the "College Savings Tip Sheet." New subscribers receive two issues of Hill's monthly eight page subscription newsletter, "Affording College." => http://www.reducemycollegecosts.com
Saturday, April 11, 2009
3 Mistakes Guaranteed to Increase Your College Costs
Article Presented by:
Copyright © 2009 Marc R. Hill
After facing the monumental task of visiting college campus after college campus, prodding your soon-to-be college student to write those essays and meet those deadlines, filling out applications, pulling mountains of financial data together, completing FAFSA and Profile questionnaires, and overcoming the initial shock of your Expected Family Contribution, you wait. And you wait. And you wait some more. Until, finally, college award letters arrive in your mailbox.
After analyzing the award letters, regaining consciousness and swallowing hard in disbelief at the actual cost of a higher education, you, like many parents, needlessly settle for paying "full price" for your child's education.
Believe it or not, the decision to reduce your college expenses is entirely in your hands. While it's commonly believed that there's nothing you can do to reduce these expenses, as a financial planner and as a parent, I can assure you that the strategies not only exist, but they're also very effective.
But on the flip side of the college funding coin, there are some pricey mistakes that any parent can make. Let's take a look at three mistakes that are guaranteed to keep your college expenses sky high.
Mistake # 1 - Assuming That Your Award Letter Is Set In Stone.
Fact: Your initial award letter from colleges is not set in stone. How is this possible? Well, there are a few different factors that can affect the figures you initially receive.
Often, students who have been accepted at and have sent in their deposit to one school actually end up attending another school. When this happens, the school, having already budgeted for the size of the incoming class, is now faced with a decision about how they're going to fill those vacant seats. At this point, they become more willing to sweeten the deal for certain students and provide better financial packages in order to maintain enrollment goals.
Additionally, schools will rank potential students from a desirability standpoint - they claim they don't, but believe me, they do! Your student will fall someplace in this "pecking order." Financial Aid packages are customized with this ranking system in mind and award letters are sent with stated deadlines for acceptance.
Keep in mind that not all students who are above yours in this order will end up at this institution. I dare say that most won't, which leaves a potential opening for you. How? Well, doesn't it make sense that if candidates who are placed higher in the food chain decline the offer to attend, that more money is potentially available to be applied to your favorite candidate?
Mistake # 2 - Not Understanding The "Early Decision" Application Process.
Under the early decision application process, your student agrees to a binding commitment if the college accepts your child and offers an adequate financial aid package. Although your child may apply to other colleges through the standard application process, if your child is accepted by the "early decision" institution, your child must then withdraw all other applications.
So, how can the early decision process cost you big bucks? Let's try looking at this from a different perspective. Imagine you are currently in the market for a new car. You know exactly what make, model, color and all the little goodies that you want in order for it to be for a successful purchase.
You then stroll into your neighborhood car dealership, let them know all of your requirements and conclude by saying, "I am going to buy the car today, you're basically the only dealership I am going to, and dog-gone-it, I want your best price."
By applying "early decision," you are basically informing the college that they have no competition. So, unless your student meets all of their desired requirements, you may be leaving money on the table.
If you decide to pursue "early decision," make sure you have a complete understanding of your rights and obligations as they pertain to that particular institution. Also understand what constitutes an "adequate financial aid package" so that there are no surprises.
Keep the competition alive and consider an "early action" application - your savings may be considerable.
Mistake # 3 - Not Developing A Relationship With The Financial Aid Office.
Most parents and students lack an understanding of the relationship they should develop with financial aid officers and the role that the financial aid office can play in reducing college costs.
First of all, it is very important that you establish a personal relationship with the aid office at your potential schools. The old saying, "It's easier to help someone you know than a stranger" certainly applies.
Second, you should understand that college financial aid is big business and that the goal of each individual financial aid office is to meet enrollment goals set by the institution with the best "fit" student at the least cost to that university.
That being said, the Director of Financial Aid has broad discretion when it comes to adjustments made to your financial aid application. This is referred to as "professional judgment" and allows the officer to change items as he or she deems fit in order to more accurately reflect your financial situation.
Special circumstances include such things as one-time bonuses, loss of employment, disability and large medical expenses. Be sure and document these expenses and notify your financial aid office of these special circumstances as they occur.
So, yes, we all make mistakes. And with a monumental and often confusing task like college financial planning, it's especially hard not to trip, slip up and flub now and then. But with careful planning and an understanding of how the college financial aid system works, you can avoid the mistakes that mean the difference between saving big bucks and breaking the bank.
About the Author:
Marc R. Hill founder of Reduce My College Costs, LLC a financial planner by training now works full-time as a publisher and coach to educate families about ways to dramatically cut college costs. Hill publishes a free monthly e-newsletter, the "College Savings Tip Sheet." New subscribers receive two issues of Hill's monthly eight page subscription newsletter, "Affording College." => http://www.reducemycollegecosts.com
Copyright © 2009 Marc R. Hill
After facing the monumental task of visiting college campus after college campus, prodding your soon-to-be college student to write those essays and meet those deadlines, filling out applications, pulling mountains of financial data together, completing FAFSA and Profile questionnaires, and overcoming the initial shock of your Expected Family Contribution, you wait. And you wait. And you wait some more. Until, finally, college award letters arrive in your mailbox.
After analyzing the award letters, regaining consciousness and swallowing hard in disbelief at the actual cost of a higher education, you, like many parents, needlessly settle for paying "full price" for your child's education.
Believe it or not, the decision to reduce your college expenses is entirely in your hands. While it's commonly believed that there's nothing you can do to reduce these expenses, as a financial planner and as a parent, I can assure you that the strategies not only exist, but they're also very effective.
But on the flip side of the college funding coin, there are some pricey mistakes that any parent can make. Let's take a look at three mistakes that are guaranteed to keep your college expenses sky high.
Mistake # 1 - Assuming That Your Award Letter Is Set In Stone.
Fact: Your initial award letter from colleges is not set in stone. How is this possible? Well, there are a few different factors that can affect the figures you initially receive.
Often, students who have been accepted at and have sent in their deposit to one school actually end up attending another school. When this happens, the school, having already budgeted for the size of the incoming class, is now faced with a decision about how they're going to fill those vacant seats. At this point, they become more willing to sweeten the deal for certain students and provide better financial packages in order to maintain enrollment goals.
Additionally, schools will rank potential students from a desirability standpoint - they claim they don't, but believe me, they do! Your student will fall someplace in this "pecking order." Financial Aid packages are customized with this ranking system in mind and award letters are sent with stated deadlines for acceptance.
Keep in mind that not all students who are above yours in this order will end up at this institution. I dare say that most won't, which leaves a potential opening for you. How? Well, doesn't it make sense that if candidates who are placed higher in the food chain decline the offer to attend, that more money is potentially available to be applied to your favorite candidate?
Mistake # 2 - Not Understanding The "Early Decision" Application Process.
Under the early decision application process, your student agrees to a binding commitment if the college accepts your child and offers an adequate financial aid package. Although your child may apply to other colleges through the standard application process, if your child is accepted by the "early decision" institution, your child must then withdraw all other applications.
So, how can the early decision process cost you big bucks? Let's try looking at this from a different perspective. Imagine you are currently in the market for a new car. You know exactly what make, model, color and all the little goodies that you want in order for it to be for a successful purchase.
You then stroll into your neighborhood car dealership, let them know all of your requirements and conclude by saying, "I am going to buy the car today, you're basically the only dealership I am going to, and dog-gone-it, I want your best price."
By applying "early decision," you are basically informing the college that they have no competition. So, unless your student meets all of their desired requirements, you may be leaving money on the table.
If you decide to pursue "early decision," make sure you have a complete understanding of your rights and obligations as they pertain to that particular institution. Also understand what constitutes an "adequate financial aid package" so that there are no surprises.
Keep the competition alive and consider an "early action" application - your savings may be considerable.
Mistake # 3 - Not Developing A Relationship With The Financial Aid Office.
Most parents and students lack an understanding of the relationship they should develop with financial aid officers and the role that the financial aid office can play in reducing college costs.
First of all, it is very important that you establish a personal relationship with the aid office at your potential schools. The old saying, "It's easier to help someone you know than a stranger" certainly applies.
Second, you should understand that college financial aid is big business and that the goal of each individual financial aid office is to meet enrollment goals set by the institution with the best "fit" student at the least cost to that university.
That being said, the Director of Financial Aid has broad discretion when it comes to adjustments made to your financial aid application. This is referred to as "professional judgment" and allows the officer to change items as he or she deems fit in order to more accurately reflect your financial situation.
Special circumstances include such things as one-time bonuses, loss of employment, disability and large medical expenses. Be sure and document these expenses and notify your financial aid office of these special circumstances as they occur.
So, yes, we all make mistakes. And with a monumental and often confusing task like college financial planning, it's especially hard not to trip, slip up and flub now and then. But with careful planning and an understanding of how the college financial aid system works, you can avoid the mistakes that mean the difference between saving big bucks and breaking the bank.
About the Author:
Marc R. Hill founder of Reduce My College Costs, LLC a financial planner by training now works full-time as a publisher and coach to educate families about ways to dramatically cut college costs. Hill publishes a free monthly e-newsletter, the "College Savings Tip Sheet." New subscribers receive two issues of Hill's monthly eight page subscription newsletter, "Affording College." => http://www.reducemycollegecosts.com
Friday, April 10, 2009
Investing in Life's Necessities
Article Presented by:
Copyright © 2009 Mack Courter
With the stock market down 55% or so from its high of October 2007, many investors feel they are between the proverbial rock and a hard place. We've all seen the data that shows that over the long term, stocks outperform every other common asset class, but that knowledge certainly doesn't make the going any easier on a day to day basis. And with the shocking events surrounding the instability and collapse of some of this country's biggest and reputable institutions, the long-term picture gets even hazier.
So what are your options, knowing that you need equities for portfolio growth and inflation protection, but are very uncomfortable with the stock market? Here's an idea I've been sharing with other investors that makes sense to them.
For starters, all successful investors from Warren Buffett to Peter Lynch focus on companies whose products and services stack up nicely from a supply and demand standpoint. On the demand side, investing in areas where demand is stable or increasing would appear to fit these guidelines. An area that I feel meets these criteria is the consumer staples sector. Thankfully, I am not alone in this assessment. Wall Street strategists such as Richard Bernstein are expecting good relative performance from this industry.
Consumer Staples contains such household names like Wal-Mart, Procter and Gamble, Coca Cola, and General Mills. Economists have touted the inelasticity of consumer goods for years, and with good reason. Regardless of how poorly we are doing financially, we still find the money to buy food, beverages, and toiletries.
The County Fair
Every year I go to an old fashioned county fair. This is not just any ordinary fair; it is reputedly the largest tent fair in the nation. Yes, believe it or not, people actually pitch tents or park their RVs and camp out for a whole week. And there is a 40-year waiting list to get a campsite! Thousands come from miles around for the fellowship, competitions, and well, the food. Frankly, many people I talk to come solely for the last reason. There are vendors offering everything from French fries to snow cones.
With the economy in recession, I was very interested to see if this fair would be slower than most. I spent practically the whole weekend at it. There were no signs that attendance was down or that concession stands were less busy than normal. Matter of fact, I had my normal tedious time making my way through the throngs of people to the next concession stand.
Just to make sure I wasn't imagining anything, I spoke with one of my friends who own a stand. He said business was even better than normal. A phone call to the Fair management also confirmed this. Attendance was as good as last year, and the vendors reported an average increase of 10% in sales. And this considering that food at a fair is not exactly cheap. You can get an ice cream cone one block from the fairgrounds for half the price. It did not make a difference.
Some analysts on Wall Street have been concerned about consumer goods companies this year, because they feel that rising commodity costs impact the bottom line. With the price of oil and other commodities well off last summer's highs, this fear seems to have dissipated somewhat. Also, it seems to me that these companies are not exactly taking these increases lying down. They're passing them on to the consumer. I noticed this at the fair. Prices on many of my favorite things were up 5 or even 10%.
I am noticing a different approach at restaurants I routinely visit. Instead of raising prices, many are cutting portion sizes.
How have consumer staples done so far in this downturn? Over the past twelve months, the Dow Jones U.S. Consumer Goods Index is down 35% as of the date of this writing. The S&P 500 Index is off 45%. Over the past three years, this consumer goods index has outpaced the S&P by around 7% annually.
The Historical Perspective
A look further back into history shows consumer staples out performance during bear markets is not unusual. During the 2000-2002 bear market, the cumulative return for the Dow Jones U.S. Consumer Goods Index was -1.56%, according to Morningstar data. As we all know, it could have been worse. The S&P 500 lost over 37% during that time.
According to Russell Napier in his excellent book, Anatomy of the Bear, consumer staples stocks have been strongholds in the three great bear markets since 1929.
He writes that during the 1968-1982 secular bear market, even though the S&P Composite Index increased by 82% cumulatively in nominal terms, it lost value in real terms. The "Consumer Price Index" increased by 174% during the same timeframe. At this time, there were 30 industrial sectors, and the average return for them was 107%. Only 9 of the 30 sectors did better than average. Among them was Food. The best sector at this time was Tobacco, a sub-category of consumer staples. It boasted a cumulative return of 420%.
Table 1:: Key Sector Performance from December 1968-August 1982
Tobacco... 420%
Oil... 185%
S&P Composite... 82%
Source: Russell Napier
Let's look at the mother of all bear markets, the 1929-1932 plunge that ushered in the Great Depression. Again we see that the qualities of Consumer Goods held up-at least on a relative basis. The Dow shed an incredible 89% of its value. Food and tobacco stocks lost a lot of money as well, just not as much. Tobacco stocks again turned out to be the best performer, with a 38% loss. Food dropped 72%. Napier surmises that perhaps this decline occurred because packaged food was not yet mainstream. 85% of bread was still homemade in 1932. Therefore, people were not as dependent on grocery stores as we are today. Granted, losing 72% or even 38% of your money compared to 89% isn't much consolation. But at least this tells us what happened in the acid test for investing.
Table 2:: Key Sector Performance from September 1929-June 1932
Tobacco... -38%
Oil... -74%
Food... -72%
Dow Industrial... -89%
Source: Russell Napier
Three Ways to Invest
Here are three ways venture into the sector without risking your shirt:
Consider buying ETFs, not individual stock. This hopefully minimizes the negative impact of such events like Pepsi's recent fall from favor. Some examples include State Street Global Advisors Consumer Staples SPDR (XLP) or iShares Dow Jones U.S. Consumer Goods (IYK). The former has 41 holdings and sports an expense ratio of 23 basis points. The latter owns 148 stocks and has an expense ratio of 48 basis points.
Consider using Stop Losses. Place a good 'til canceled stop loss order under the ETF or stock. I've placed these at either support levels for the security or at absolute loss levels a client is willing to sustain.
Consider selling covered calls. Selling a covered call on the ETF or stock you own is another way to reduce the risk. The premium gives you an immediate return on your money, and also serves as a buffer if the investment declines. Recently, I've found myself considering at-the-money or in-the-money options since they afford the most downside protection. I would avoid using ETFs that do not have a lot of open interest and volume in options trading.
Although there are never any guarantees when investing in stocks, the consumer staples industry may be a more conservative alternative at a time like this. And using some of the strategies above, you can hopefully lower your risk even more.
Disclosures:
The principal and yield of investment securities will fluctuate with changes in market conditions. The information presented is general in nature and should not be considered legal or tax advice.
The opinions offered are not to be construed as an offer to buy or sell individual securities mentioned herein.
Securities offered through Cadaret, Grant and Co., Inc., member FINRA/SIPC.
About the Author:
Mack Courter is a Certified Financial Planner (tm) who specializes in Retirement Investing in State College, Pennsylvania and works with clients nationwide. If you have any questions about the article, or would like a complimentary copy of his report "7 Critical Mistakes Investors Make," visit his website at http://www.courterfinancial.com or email him at his website.
Copyright © 2009 Mack Courter
With the stock market down 55% or so from its high of October 2007, many investors feel they are between the proverbial rock and a hard place. We've all seen the data that shows that over the long term, stocks outperform every other common asset class, but that knowledge certainly doesn't make the going any easier on a day to day basis. And with the shocking events surrounding the instability and collapse of some of this country's biggest and reputable institutions, the long-term picture gets even hazier.
So what are your options, knowing that you need equities for portfolio growth and inflation protection, but are very uncomfortable with the stock market? Here's an idea I've been sharing with other investors that makes sense to them.
For starters, all successful investors from Warren Buffett to Peter Lynch focus on companies whose products and services stack up nicely from a supply and demand standpoint. On the demand side, investing in areas where demand is stable or increasing would appear to fit these guidelines. An area that I feel meets these criteria is the consumer staples sector. Thankfully, I am not alone in this assessment. Wall Street strategists such as Richard Bernstein are expecting good relative performance from this industry.
Consumer Staples contains such household names like Wal-Mart, Procter and Gamble, Coca Cola, and General Mills. Economists have touted the inelasticity of consumer goods for years, and with good reason. Regardless of how poorly we are doing financially, we still find the money to buy food, beverages, and toiletries.
The County Fair
Every year I go to an old fashioned county fair. This is not just any ordinary fair; it is reputedly the largest tent fair in the nation. Yes, believe it or not, people actually pitch tents or park their RVs and camp out for a whole week. And there is a 40-year waiting list to get a campsite! Thousands come from miles around for the fellowship, competitions, and well, the food. Frankly, many people I talk to come solely for the last reason. There are vendors offering everything from French fries to snow cones.
With the economy in recession, I was very interested to see if this fair would be slower than most. I spent practically the whole weekend at it. There were no signs that attendance was down or that concession stands were less busy than normal. Matter of fact, I had my normal tedious time making my way through the throngs of people to the next concession stand.
Just to make sure I wasn't imagining anything, I spoke with one of my friends who own a stand. He said business was even better than normal. A phone call to the Fair management also confirmed this. Attendance was as good as last year, and the vendors reported an average increase of 10% in sales. And this considering that food at a fair is not exactly cheap. You can get an ice cream cone one block from the fairgrounds for half the price. It did not make a difference.
Some analysts on Wall Street have been concerned about consumer goods companies this year, because they feel that rising commodity costs impact the bottom line. With the price of oil and other commodities well off last summer's highs, this fear seems to have dissipated somewhat. Also, it seems to me that these companies are not exactly taking these increases lying down. They're passing them on to the consumer. I noticed this at the fair. Prices on many of my favorite things were up 5 or even 10%.
I am noticing a different approach at restaurants I routinely visit. Instead of raising prices, many are cutting portion sizes.
How have consumer staples done so far in this downturn? Over the past twelve months, the Dow Jones U.S. Consumer Goods Index is down 35% as of the date of this writing. The S&P 500 Index is off 45%. Over the past three years, this consumer goods index has outpaced the S&P by around 7% annually.
The Historical Perspective
A look further back into history shows consumer staples out performance during bear markets is not unusual. During the 2000-2002 bear market, the cumulative return for the Dow Jones U.S. Consumer Goods Index was -1.56%, according to Morningstar data. As we all know, it could have been worse. The S&P 500 lost over 37% during that time.
According to Russell Napier in his excellent book, Anatomy of the Bear, consumer staples stocks have been strongholds in the three great bear markets since 1929.
He writes that during the 1968-1982 secular bear market, even though the S&P Composite Index increased by 82% cumulatively in nominal terms, it lost value in real terms. The "Consumer Price Index" increased by 174% during the same timeframe. At this time, there were 30 industrial sectors, and the average return for them was 107%. Only 9 of the 30 sectors did better than average. Among them was Food. The best sector at this time was Tobacco, a sub-category of consumer staples. It boasted a cumulative return of 420%.
Table 1:: Key Sector Performance from December 1968-August 1982
Tobacco... 420%
Oil... 185%
S&P Composite... 82%
Source: Russell Napier
Let's look at the mother of all bear markets, the 1929-1932 plunge that ushered in the Great Depression. Again we see that the qualities of Consumer Goods held up-at least on a relative basis. The Dow shed an incredible 89% of its value. Food and tobacco stocks lost a lot of money as well, just not as much. Tobacco stocks again turned out to be the best performer, with a 38% loss. Food dropped 72%. Napier surmises that perhaps this decline occurred because packaged food was not yet mainstream. 85% of bread was still homemade in 1932. Therefore, people were not as dependent on grocery stores as we are today. Granted, losing 72% or even 38% of your money compared to 89% isn't much consolation. But at least this tells us what happened in the acid test for investing.
Table 2:: Key Sector Performance from September 1929-June 1932
Tobacco... -38%
Oil... -74%
Food... -72%
Dow Industrial... -89%
Source: Russell Napier
Three Ways to Invest
Here are three ways venture into the sector without risking your shirt:
Although there are never any guarantees when investing in stocks, the consumer staples industry may be a more conservative alternative at a time like this. And using some of the strategies above, you can hopefully lower your risk even more.
Disclosures:
The principal and yield of investment securities will fluctuate with changes in market conditions. The information presented is general in nature and should not be considered legal or tax advice.
The opinions offered are not to be construed as an offer to buy or sell individual securities mentioned herein.
Securities offered through Cadaret, Grant and Co., Inc., member FINRA/SIPC.
About the Author:
Mack Courter is a Certified Financial Planner (tm) who specializes in Retirement Investing in State College, Pennsylvania and works with clients nationwide. If you have any questions about the article, or would like a complimentary copy of his report "7 Critical Mistakes Investors Make," visit his website at http://www.courterfinancial.com or email him at his website.
Investing in Life's Necessities
Article Presented by:
Copyright © 2009 Mack Courter
With the stock market down 55% or so from its high of October 2007, many investors feel they are between the proverbial rock and a hard place. We've all seen the data that shows that over the long term, stocks outperform every other common asset class, but that knowledge certainly doesn't make the going any easier on a day to day basis. And with the shocking events surrounding the instability and collapse of some of this country's biggest and reputable institutions, the long-term picture gets even hazier.
So what are your options, knowing that you need equities for portfolio growth and inflation protection, but are very uncomfortable with the stock market? Here's an idea I've been sharing with other investors that makes sense to them.
For starters, all successful investors from Warren Buffett to Peter Lynch focus on companies whose products and services stack up nicely from a supply and demand standpoint. On the demand side, investing in areas where demand is stable or increasing would appear to fit these guidelines. An area that I feel meets these criteria is the consumer staples sector. Thankfully, I am not alone in this assessment. Wall Street strategists such as Richard Bernstein are expecting good relative performance from this industry.
Consumer Staples contains such household names like Wal-Mart, Procter and Gamble, Coca Cola, and General Mills. Economists have touted the inelasticity of consumer goods for years, and with good reason. Regardless of how poorly we are doing financially, we still find the money to buy food, beverages, and toiletries.
The County Fair
Every year I go to an old fashioned county fair. This is not just any ordinary fair; it is reputedly the largest tent fair in the nation. Yes, believe it or not, people actually pitch tents or park their RVs and camp out for a whole week. And there is a 40-year waiting list to get a campsite! Thousands come from miles around for the fellowship, competitions, and well, the food. Frankly, many people I talk to come solely for the last reason. There are vendors offering everything from French fries to snow cones.
With the economy in recession, I was very interested to see if this fair would be slower than most. I spent practically the whole weekend at it. There were no signs that attendance was down or that concession stands were less busy than normal. Matter of fact, I had my normal tedious time making my way through the throngs of people to the next concession stand.
Just to make sure I wasn't imagining anything, I spoke with one of my friends who own a stand. He said business was even better than normal. A phone call to the Fair management also confirmed this. Attendance was as good as last year, and the vendors reported an average increase of 10% in sales. And this considering that food at a fair is not exactly cheap. You can get an ice cream cone one block from the fairgrounds for half the price. It did not make a difference.
Some analysts on Wall Street have been concerned about consumer goods companies this year, because they feel that rising commodity costs impact the bottom line. With the price of oil and other commodities well off last summer's highs, this fear seems to have dissipated somewhat. Also, it seems to me that these companies are not exactly taking these increases lying down. They're passing them on to the consumer. I noticed this at the fair. Prices on many of my favorite things were up 5 or even 10%.
I am noticing a different approach at restaurants I routinely visit. Instead of raising prices, many are cutting portion sizes.
How have consumer staples done so far in this downturn? Over the past twelve months, the Dow Jones U.S. Consumer Goods Index is down 35% as of the date of this writing. The S&P 500 Index is off 45%. Over the past three years, this consumer goods index has outpaced the S&P by around 7% annually.
The Historical Perspective
A look further back into history shows consumer staples out performance during bear markets is not unusual. During the 2000-2002 bear market, the cumulative return for the Dow Jones U.S. Consumer Goods Index was -1.56%, according to Morningstar data. As we all know, it could have been worse. The S&P 500 lost over 37% during that time.
According to Russell Napier in his excellent book, Anatomy of the Bear, consumer staples stocks have been strongholds in the three great bear markets since 1929.
He writes that during the 1968-1982 secular bear market, even though the S&P Composite Index increased by 82% cumulatively in nominal terms, it lost value in real terms. The "Consumer Price Index" increased by 174% during the same timeframe. At this time, there were 30 industrial sectors, and the average return for them was 107%. Only 9 of the 30 sectors did better than average. Among them was Food. The best sector at this time was Tobacco, a sub-category of consumer staples. It boasted a cumulative return of 420%.
Table 1:: Key Sector Performance from December 1968-August 1982
Tobacco... 420%
Oil... 185%
S&P Composite... 82%
Source: Russell Napier
Let's look at the mother of all bear markets, the 1929-1932 plunge that ushered in the Great Depression. Again we see that the qualities of Consumer Goods held up-at least on a relative basis. The Dow shed an incredible 89% of its value. Food and tobacco stocks lost a lot of money as well, just not as much. Tobacco stocks again turned out to be the best performer, with a 38% loss. Food dropped 72%. Napier surmises that perhaps this decline occurred because packaged food was not yet mainstream. 85% of bread was still homemade in 1932. Therefore, people were not as dependent on grocery stores as we are today. Granted, losing 72% or even 38% of your money compared to 89% isn't much consolation. But at least this tells us what happened in the acid test for investing.
Table 2:: Key Sector Performance from September 1929-June 1932
Tobacco... -38%
Oil... -74%
Food... -72%
Dow Industrial... -89%
Source: Russell Napier
Three Ways to Invest
Here are three ways venture into the sector without risking your shirt:
Consider buying ETFs, not individual stock. This hopefully minimizes the negative impact of such events like Pepsi's recent fall from favor. Some examples include State Street Global Advisors Consumer Staples SPDR (XLP) or iShares Dow Jones U.S. Consumer Goods (IYK). The former has 41 holdings and sports an expense ratio of 23 basis points. The latter owns 148 stocks and has an expense ratio of 48 basis points.
Consider using Stop Losses. Place a good 'til canceled stop loss order under the ETF or stock. I've placed these at either support levels for the security or at absolute loss levels a client is willing to sustain.
Consider selling covered calls. Selling a covered call on the ETF or stock you own is another way to reduce the risk. The premium gives you an immediate return on your money, and also serves as a buffer if the investment declines. Recently, I've found myself considering at-the-money or in-the-money options since they afford the most downside protection. I would avoid using ETFs that do not have a lot of open interest and volume in options trading.
Although there are never any guarantees when investing in stocks, the consumer staples industry may be a more conservative alternative at a time like this. And using some of the strategies above, you can hopefully lower your risk even more.
Disclosures:
The principal and yield of investment securities will fluctuate with changes in market conditions. The information presented is general in nature and should not be considered legal or tax advice.
The opinions offered are not to be construed as an offer to buy or sell individual securities mentioned herein.
Securities offered through Cadaret, Grant and Co., Inc., member FINRA/SIPC.
About the Author:
Mack Courter is a Certified Financial Planner (tm) who specializes in Retirement Investing in State College, Pennsylvania and works with clients nationwide. If you have any questions about the article, or would like a complimentary copy of his report "7 Critical Mistakes Investors Make," visit his website at http://www.courterfinancial.com or email him at his website.
Copyright © 2009 Mack Courter
With the stock market down 55% or so from its high of October 2007, many investors feel they are between the proverbial rock and a hard place. We've all seen the data that shows that over the long term, stocks outperform every other common asset class, but that knowledge certainly doesn't make the going any easier on a day to day basis. And with the shocking events surrounding the instability and collapse of some of this country's biggest and reputable institutions, the long-term picture gets even hazier.
So what are your options, knowing that you need equities for portfolio growth and inflation protection, but are very uncomfortable with the stock market? Here's an idea I've been sharing with other investors that makes sense to them.
For starters, all successful investors from Warren Buffett to Peter Lynch focus on companies whose products and services stack up nicely from a supply and demand standpoint. On the demand side, investing in areas where demand is stable or increasing would appear to fit these guidelines. An area that I feel meets these criteria is the consumer staples sector. Thankfully, I am not alone in this assessment. Wall Street strategists such as Richard Bernstein are expecting good relative performance from this industry.
Consumer Staples contains such household names like Wal-Mart, Procter and Gamble, Coca Cola, and General Mills. Economists have touted the inelasticity of consumer goods for years, and with good reason. Regardless of how poorly we are doing financially, we still find the money to buy food, beverages, and toiletries.
The County Fair
Every year I go to an old fashioned county fair. This is not just any ordinary fair; it is reputedly the largest tent fair in the nation. Yes, believe it or not, people actually pitch tents or park their RVs and camp out for a whole week. And there is a 40-year waiting list to get a campsite! Thousands come from miles around for the fellowship, competitions, and well, the food. Frankly, many people I talk to come solely for the last reason. There are vendors offering everything from French fries to snow cones.
With the economy in recession, I was very interested to see if this fair would be slower than most. I spent practically the whole weekend at it. There were no signs that attendance was down or that concession stands were less busy than normal. Matter of fact, I had my normal tedious time making my way through the throngs of people to the next concession stand.
Just to make sure I wasn't imagining anything, I spoke with one of my friends who own a stand. He said business was even better than normal. A phone call to the Fair management also confirmed this. Attendance was as good as last year, and the vendors reported an average increase of 10% in sales. And this considering that food at a fair is not exactly cheap. You can get an ice cream cone one block from the fairgrounds for half the price. It did not make a difference.
Some analysts on Wall Street have been concerned about consumer goods companies this year, because they feel that rising commodity costs impact the bottom line. With the price of oil and other commodities well off last summer's highs, this fear seems to have dissipated somewhat. Also, it seems to me that these companies are not exactly taking these increases lying down. They're passing them on to the consumer. I noticed this at the fair. Prices on many of my favorite things were up 5 or even 10%.
I am noticing a different approach at restaurants I routinely visit. Instead of raising prices, many are cutting portion sizes.
How have consumer staples done so far in this downturn? Over the past twelve months, the Dow Jones U.S. Consumer Goods Index is down 35% as of the date of this writing. The S&P 500 Index is off 45%. Over the past three years, this consumer goods index has outpaced the S&P by around 7% annually.
The Historical Perspective
A look further back into history shows consumer staples out performance during bear markets is not unusual. During the 2000-2002 bear market, the cumulative return for the Dow Jones U.S. Consumer Goods Index was -1.56%, according to Morningstar data. As we all know, it could have been worse. The S&P 500 lost over 37% during that time.
According to Russell Napier in his excellent book, Anatomy of the Bear, consumer staples stocks have been strongholds in the three great bear markets since 1929.
He writes that during the 1968-1982 secular bear market, even though the S&P Composite Index increased by 82% cumulatively in nominal terms, it lost value in real terms. The "Consumer Price Index" increased by 174% during the same timeframe. At this time, there were 30 industrial sectors, and the average return for them was 107%. Only 9 of the 30 sectors did better than average. Among them was Food. The best sector at this time was Tobacco, a sub-category of consumer staples. It boasted a cumulative return of 420%.
Table 1:: Key Sector Performance from December 1968-August 1982
Tobacco... 420%
Oil... 185%
S&P Composite... 82%
Source: Russell Napier
Let's look at the mother of all bear markets, the 1929-1932 plunge that ushered in the Great Depression. Again we see that the qualities of Consumer Goods held up-at least on a relative basis. The Dow shed an incredible 89% of its value. Food and tobacco stocks lost a lot of money as well, just not as much. Tobacco stocks again turned out to be the best performer, with a 38% loss. Food dropped 72%. Napier surmises that perhaps this decline occurred because packaged food was not yet mainstream. 85% of bread was still homemade in 1932. Therefore, people were not as dependent on grocery stores as we are today. Granted, losing 72% or even 38% of your money compared to 89% isn't much consolation. But at least this tells us what happened in the acid test for investing.
Table 2:: Key Sector Performance from September 1929-June 1932
Tobacco... -38%
Oil... -74%
Food... -72%
Dow Industrial... -89%
Source: Russell Napier
Three Ways to Invest
Here are three ways venture into the sector without risking your shirt:
Although there are never any guarantees when investing in stocks, the consumer staples industry may be a more conservative alternative at a time like this. And using some of the strategies above, you can hopefully lower your risk even more.
Disclosures:
The principal and yield of investment securities will fluctuate with changes in market conditions. The information presented is general in nature and should not be considered legal or tax advice.
The opinions offered are not to be construed as an offer to buy or sell individual securities mentioned herein.
Securities offered through Cadaret, Grant and Co., Inc., member FINRA/SIPC.
About the Author:
Mack Courter is a Certified Financial Planner (tm) who specializes in Retirement Investing in State College, Pennsylvania and works with clients nationwide. If you have any questions about the article, or would like a complimentary copy of his report "7 Critical Mistakes Investors Make," visit his website at http://www.courterfinancial.com or email him at his website.
What if My Publicity Angle Needs a Photo? Publicity Dilemma 6
Article Presented by:
Copyright © 2009 Marcia Yudkin
Occasionally I hear from someone who laments that they can't possibly reduce the charms of what they sell to words. Only a photo, they claim, adequately conveys what it is and why it is so wonderful.
Unfortunately, however, even the most skillfully taken photographs are not self-explanatory. Why do you think every mainstream media outlet rigorously provides captions for its photos? And why do you suppose successful ecommerce sites never try to sell with product photos alone? Indeed, photographs without captions can be far more mysterious than verbal descriptions.
Think about a photo of a scrumptious-looking plate of pasta primavera, for example. Just looking at the photo, could you know for sure that this is pasta primavera and not, say, pasta alla veronica? Could you see from the photo that this was the first dish created by Chef Geri Halcomb after recovering from cancer treatment? Would you realize from the photo that the pasta is organic, from locally grown wheat and only 120 calories per serving?
Whereas photos need context and verbal pointers to be complete and persuasive, words by themselves can tell the story and sell the reader. Consider the ability of radio to place you in a scene or a novel to conjure up a vivid world you've never visited. Of course, film and video, or words plus pictures do often have greater power and clarity than words alone.
When you're aiming at media coverage, understand that the writer or broadcaster has to use words to explain your offering. It's your job to help with that. With your words you set the context, explain the purpose and audience and provide essential details. An accompanying photo illustrates or fills out what you mean and adds richness to the words.
With that said, if you feel a photo does the job of a thousand words, then provide a verbal description that is as clear as you can possibly make it and then also make one or more photos available. Or for some types of items, get an actual sample into their hands along with the verbal pitch.
Here are three ways to transmit your words-plus-photos or words-plus-sample pitch to media outlets.
1)Mail it. This works especially well when you're sending a sample item. Make sure the accompanying words clarify the purpose, audience, materials, maker, availability, price of the item and how/where to buy it.
2)Email. Media people don't like opening email attachments from people they don't know, so either insert the photo right into your email pitch if you can or post the photo on your web site and provide the link to it in your email.
3)Press release distribution service. Some such services, such as Emailwire.com, allow you to include a photo or even two with your release at no extra charge. When readers look at a page of press release material and some of the summaries have photos and others not, the ones with accompanying photos practically scream "Read me, not the others."
Give your story the best possible shot at media coverage by carefully providing context and details in your verbal pitch and amplifying that with a photo.
About the Author:
Publicity expert Marcia Yudkin is the author of 6 Steps to Free Publicity, Persuading on Paper, Web Site Marketing Makeover and eight other books. She has engineered coverage for herself or her company in the Wall Street Journal, Entrepreneur, Success, Women in Business and dozens of newspapers around the world. Get free access to a one-hour audio recording in which she answers the most common questions about getting media coverage at http://www.yudkin.com/publicityideas.htm
Copyright © 2009 Marcia Yudkin
Occasionally I hear from someone who laments that they can't possibly reduce the charms of what they sell to words. Only a photo, they claim, adequately conveys what it is and why it is so wonderful.
Unfortunately, however, even the most skillfully taken photographs are not self-explanatory. Why do you think every mainstream media outlet rigorously provides captions for its photos? And why do you suppose successful ecommerce sites never try to sell with product photos alone? Indeed, photographs without captions can be far more mysterious than verbal descriptions.
Think about a photo of a scrumptious-looking plate of pasta primavera, for example. Just looking at the photo, could you know for sure that this is pasta primavera and not, say, pasta alla veronica? Could you see from the photo that this was the first dish created by Chef Geri Halcomb after recovering from cancer treatment? Would you realize from the photo that the pasta is organic, from locally grown wheat and only 120 calories per serving?
Whereas photos need context and verbal pointers to be complete and persuasive, words by themselves can tell the story and sell the reader. Consider the ability of radio to place you in a scene or a novel to conjure up a vivid world you've never visited. Of course, film and video, or words plus pictures do often have greater power and clarity than words alone.
When you're aiming at media coverage, understand that the writer or broadcaster has to use words to explain your offering. It's your job to help with that. With your words you set the context, explain the purpose and audience and provide essential details. An accompanying photo illustrates or fills out what you mean and adds richness to the words.
With that said, if you feel a photo does the job of a thousand words, then provide a verbal description that is as clear as you can possibly make it and then also make one or more photos available. Or for some types of items, get an actual sample into their hands along with the verbal pitch.
Here are three ways to transmit your words-plus-photos or words-plus-sample pitch to media outlets.
1)Mail it. This works especially well when you're sending a sample item. Make sure the accompanying words clarify the purpose, audience, materials, maker, availability, price of the item and how/where to buy it.
2)Email. Media people don't like opening email attachments from people they don't know, so either insert the photo right into your email pitch if you can or post the photo on your web site and provide the link to it in your email.
3)Press release distribution service. Some such services, such as Emailwire.com, allow you to include a photo or even two with your release at no extra charge. When readers look at a page of press release material and some of the summaries have photos and others not, the ones with accompanying photos practically scream "Read me, not the others."
Give your story the best possible shot at media coverage by carefully providing context and details in your verbal pitch and amplifying that with a photo.
About the Author:
Publicity expert Marcia Yudkin is the author of 6 Steps to Free Publicity, Persuading on Paper, Web Site Marketing Makeover and eight other books. She has engineered coverage for herself or her company in the Wall Street Journal, Entrepreneur, Success, Women in Business and dozens of newspapers around the world. Get free access to a one-hour audio recording in which she answers the most common questions about getting media coverage at http://www.yudkin.com/publicityideas.htm
Wednesday, April 8, 2009
5 Reasons Not To Extend Your Early Bird Pricing Period
Article Presented by:
Copyright © 2009 Jim Romanik
A lot of events incorporate early bird pricing to encourage people to register early and it usually works. In some cases an Event Planner may extend an early bird period after registration has started, but after a recent experience I think that this strategy should be avoided.
Here's why.
This past fall, I was considering attending a conference, but kept putting off looking into the details, checking into flights and hotels and making a decision. I knew that the early bird pricing ended December 10th, so I set a reminder for myself to make a decision by that date.
The morning of the deadline, just as I was about to finally look into the details and decide whether to register or not, I received an email stating that the early bird deadline had been extended until January 15th.
I immediately re-scheduled my reminder to register and was happy that I could hold onto my money for another month and wait to see a better opportunity arose.
I understand the organizers of this event were trying to encourage more people to register, however, I now realize the problems an Early-Bird extension can cause.
Consider these problems:
1. Delayed registrations and revenue from fence sitters - If you allow a reasonable amount of time for people to take advantage of your early bird pricing anyone who is serious about attending will register. If people are undecided or putting off the decision as I was, extending the period just gives more time to delay.
2. Lost registrants to competing events or other commitments - The longer someone waits to register for your event the more likely they will make other commitments and be unable to attend your event. Get people registered early so they will schedule other things around your event rather than at the same time.
3. Gives the impression that your event is struggling - When I found out that the early bird period for this recent event was extended, I concluded that they must be getting less registrations than expected and needed to offer another incentive. This thinking made me sceptical about registering since there might be less networking opportunities, cancelled workshops and other changes as a result of less revenue.
4. Frustrate people that registered before the early-bird deadline - If people registered and paid their money early only to find out that the procrastinators will get the same deal they did, you could get some complaints or leave a bad impression in their minds.
5. Set a precedent that waiting until the last minute pays off - People will remember what happened with registration for a previous event and if you are known for extending early bird deadlines, it will become harder for you to get people to take immediate action when you send out your marketing materials.
Since we believe that extending early bird deadlines isn't a good way to get more registrations, we've come up with a list of our recommended alternatives for the March newsletter. If you have comments about this article or want a sneak-peak at our ideas, please contact us.
About the Author:
Jim Romanik - founder of ePly Online Event Registration Software (http://www.eply.com)
We are online registration experts and treat your reputation as our own to build registration forms that help your events succeed and make people wonder how you did it.
Download our Free Guide - "What Every Event Planner Should Know About Online Event Registration" at: http://www.eply.com/lp/articles.html
Copyright © 2009 Jim Romanik
A lot of events incorporate early bird pricing to encourage people to register early and it usually works. In some cases an Event Planner may extend an early bird period after registration has started, but after a recent experience I think that this strategy should be avoided.
Here's why.
This past fall, I was considering attending a conference, but kept putting off looking into the details, checking into flights and hotels and making a decision. I knew that the early bird pricing ended December 10th, so I set a reminder for myself to make a decision by that date.
The morning of the deadline, just as I was about to finally look into the details and decide whether to register or not, I received an email stating that the early bird deadline had been extended until January 15th.
I immediately re-scheduled my reminder to register and was happy that I could hold onto my money for another month and wait to see a better opportunity arose.
I understand the organizers of this event were trying to encourage more people to register, however, I now realize the problems an Early-Bird extension can cause.
Consider these problems:
1. Delayed registrations and revenue from fence sitters - If you allow a reasonable amount of time for people to take advantage of your early bird pricing anyone who is serious about attending will register. If people are undecided or putting off the decision as I was, extending the period just gives more time to delay.
2. Lost registrants to competing events or other commitments - The longer someone waits to register for your event the more likely they will make other commitments and be unable to attend your event. Get people registered early so they will schedule other things around your event rather than at the same time.
3. Gives the impression that your event is struggling - When I found out that the early bird period for this recent event was extended, I concluded that they must be getting less registrations than expected and needed to offer another incentive. This thinking made me sceptical about registering since there might be less networking opportunities, cancelled workshops and other changes as a result of less revenue.
4. Frustrate people that registered before the early-bird deadline - If people registered and paid their money early only to find out that the procrastinators will get the same deal they did, you could get some complaints or leave a bad impression in their minds.
5. Set a precedent that waiting until the last minute pays off - People will remember what happened with registration for a previous event and if you are known for extending early bird deadlines, it will become harder for you to get people to take immediate action when you send out your marketing materials.
Since we believe that extending early bird deadlines isn't a good way to get more registrations, we've come up with a list of our recommended alternatives for the March newsletter. If you have comments about this article or want a sneak-peak at our ideas, please contact us.
About the Author:
Jim Romanik - founder of ePly Online Event Registration Software (http://www.eply.com)
We are online registration experts and treat your reputation as our own to build registration forms that help your events succeed and make people wonder how you did it.
Download our Free Guide - "What Every Event Planner Should Know About Online Event Registration" at: http://www.eply.com/lp/articles.html
The Outlet Camera - A Review of the Cleverly Hidden Outlet Camera
Article Presented by:
Copyright © 2009 David English
The electrical outlet camera is quickly becoming one of the most popular self contained hidden cameras you can buy. That's probable due to the many advantages of using outlet cameras with only a few disadvantages.
Nearly Invisible Hidden Surveillance
No one looks closely at anything that's not right in front of them. (Some don't even see that from time to time) Since an electrical outlet is near the floor it's way out of the normal field of vision making it almost invisible.
Even the rare person who happens to see your wall outlet camera will completely ignore it since it's just part of the normal scenery. Outlets aren't usually thought of as very interesting and a six plug adapter isn't any better.
Nothing More to Buy
The components are self contained in the tiny outlet housing. You get a camera and DVR both built right in to the tiny outlet housing.
This means you do not have to make another purchase or even connect this hidden camera to a VCR for it to work. The only thing you really have to worry about is keeping up with the remote control.
Simple Set Up
The greatest advantage to an outlet camera over other types of hidden cameras is probably the easy set up and installation. Sure, all self contained hidden cameras are easy to set up and install, but this one takes it another step further.
If you are "technically challenged" you'll love how simple an outlet hidden camera is to set up. There is nothing new you will have to learn in order to set to and use it.
Even if you do happen to be a technical genius you're going to be thrilled with having at least one less complicated project. We may enjoy working with our hands and get a nice sense of accomplishment after completing a DIY project but it's also nice to get a break every once in a while.
Either way you will be impressed with just how much time and trouble this set up will save you. I'll explain it in the whole three steps it requires.
1. Take it out of the box. If you've survived more than one Christmas holiday this is a piece of cake.
2. Install SD card. Do you have a digital camera? The SD card for this hidden camera is installed exactly the same way.
3. Plug the camera in to an electrical outlet. You don't even have a cord to worry about with these cameras. Just plug it directly in to any wall outlet and your camera is ready to go.
Easy to Record
Now that your camera is set up it's time to learn how to record the video. Recording is done by using the included remote control, just like changing channels. Motion Detection Recording
You can also set the camera for motion detection and let your camera automatically record when motion is detected. With motion detection on you will never have to look through hours of useless footage. Your camera will only record while something is happening.
If you're worried that Fido will set off the motion detection and waste your storage space, don't. By using the Area Masking feature you can mask the lower area from the view so it wont pick up movement near the floor.
Easy Add On for an Existing Surveillance System
For an existing surveillance system these cameras offer a very simple add on. You can keep that extra channel or two reserved for one or two more normal security cameras and still include hidden cameras too.
Your standard security cameras can give you real time monitoring capability and better low light vision. At the same time this simple hidden camera allows you to have a separate back up recording. You also get better evidence because no one is trying to avoid the camera since they cannot see it.
Well, Nothing Is Perfect
No Internet Capability - As with anything there are a couple of disadvantages. First of all an electrical outlet camera is not networkable. You cannot log in and view your footage over the internet.
No Black and White - Camera options are reduced to color only. While color does give you the most realistic picture it does not show detail as well as black and white in low light conditions.
Not Suited for Real Time Monitoring - As a self contained hidden camera they are not designed for monitoring, only playback. If you do need to view the video footage as it is happening then this is not the right product for you.
Final Thoughts
These cameras are great time savers and can make a simple addition to any security system. While there are few disadvantages to owning this hidden security device they are outweighed, by far, by the many great advantages.
A hidden outlet camera can give you an immediate and simple solution to your hidden surveillance needs. With it's near invisibility, easy set up and recording you can't ask for much more in a hidden camera.
About the Author:
Make your next hidden camera a simple one. Get your own outlet camera today. David English owns Marshall Self Defense http://www.marshallselfdefense.com/ - a family owned and operated company that is dedicated to helping you keep your family safe. Get more info: http://www.marshallselfdefense.com/dvr-electrical-outlet-hidden-camera.htm
Copyright © 2009 David English
The electrical outlet camera is quickly becoming one of the most popular self contained hidden cameras you can buy. That's probable due to the many advantages of using outlet cameras with only a few disadvantages.
Nearly Invisible Hidden Surveillance
No one looks closely at anything that's not right in front of them. (Some don't even see that from time to time) Since an electrical outlet is near the floor it's way out of the normal field of vision making it almost invisible.
Even the rare person who happens to see your wall outlet camera will completely ignore it since it's just part of the normal scenery. Outlets aren't usually thought of as very interesting and a six plug adapter isn't any better.
Nothing More to Buy
The components are self contained in the tiny outlet housing. You get a camera and DVR both built right in to the tiny outlet housing.
This means you do not have to make another purchase or even connect this hidden camera to a VCR for it to work. The only thing you really have to worry about is keeping up with the remote control.
Simple Set Up
The greatest advantage to an outlet camera over other types of hidden cameras is probably the easy set up and installation. Sure, all self contained hidden cameras are easy to set up and install, but this one takes it another step further.
If you are "technically challenged" you'll love how simple an outlet hidden camera is to set up. There is nothing new you will have to learn in order to set to and use it.
Even if you do happen to be a technical genius you're going to be thrilled with having at least one less complicated project. We may enjoy working with our hands and get a nice sense of accomplishment after completing a DIY project but it's also nice to get a break every once in a while.
Either way you will be impressed with just how much time and trouble this set up will save you. I'll explain it in the whole three steps it requires.
1. Take it out of the box. If you've survived more than one Christmas holiday this is a piece of cake.
2. Install SD card. Do you have a digital camera? The SD card for this hidden camera is installed exactly the same way.
3. Plug the camera in to an electrical outlet. You don't even have a cord to worry about with these cameras. Just plug it directly in to any wall outlet and your camera is ready to go.
Easy to Record
Now that your camera is set up it's time to learn how to record the video. Recording is done by using the included remote control, just like changing channels. Motion Detection Recording
You can also set the camera for motion detection and let your camera automatically record when motion is detected. With motion detection on you will never have to look through hours of useless footage. Your camera will only record while something is happening.
If you're worried that Fido will set off the motion detection and waste your storage space, don't. By using the Area Masking feature you can mask the lower area from the view so it wont pick up movement near the floor.
Easy Add On for an Existing Surveillance System
For an existing surveillance system these cameras offer a very simple add on. You can keep that extra channel or two reserved for one or two more normal security cameras and still include hidden cameras too.
Your standard security cameras can give you real time monitoring capability and better low light vision. At the same time this simple hidden camera allows you to have a separate back up recording. You also get better evidence because no one is trying to avoid the camera since they cannot see it.
Well, Nothing Is Perfect
No Internet Capability - As with anything there are a couple of disadvantages. First of all an electrical outlet camera is not networkable. You cannot log in and view your footage over the internet.
No Black and White - Camera options are reduced to color only. While color does give you the most realistic picture it does not show detail as well as black and white in low light conditions.
Not Suited for Real Time Monitoring - As a self contained hidden camera they are not designed for monitoring, only playback. If you do need to view the video footage as it is happening then this is not the right product for you.
Final Thoughts
These cameras are great time savers and can make a simple addition to any security system. While there are few disadvantages to owning this hidden security device they are outweighed, by far, by the many great advantages.
A hidden outlet camera can give you an immediate and simple solution to your hidden surveillance needs. With it's near invisibility, easy set up and recording you can't ask for much more in a hidden camera.
About the Author:
Make your next hidden camera a simple one. Get your own outlet camera today. David English owns Marshall Self Defense http://www.marshallselfdefense.com/ - a family owned and operated company that is dedicated to helping you keep your family safe. Get more info: http://www.marshallselfdefense.com/dvr-electrical-outlet-hidden-camera.htm
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