Here lies the issue at hand. If you have a new car, we all know that as soon as you drive it off the lot you will suffer 20-30% depreciation on the value of your new vehicle. Thus one of the reasons you will find the strategy to buy a two year old vehicle in several of my books. I like new cars and I have new cars, but I also use leases to my advantage, and I also buy used as well.

So back to my buddy, he was in an accident where someone hit his new truck. Insurance will cover the damages but what about the fact that his new truck now has a negative carfax, a history of repair and accident that will affect the long term value of the truck even after it is fixed. That is unfortunate and in most cases people just take it for what it is and move on. Later down the road a few years when they try to sell the vehicle the accident comes back to haunt them and the seller of the vehicle will suffer monetary loss because of the previous accident. The accident simply lowers the long term value. So what can you do?

Well you can buy Gap Insurance which will cover the difference in your new vehicle when you drive it off the lot and remain in effect until your car is worth the same or lower than your loan payoff thus the “GAP” or you can file a diminished value claim against your insurance company. I would suggest that if you buy a new vehicle that you look into gap insurance, some policies have it included and others you will need to add it on. Keep in mind that you can get Gap insurance at many places not just thru your insurance company and certainly don’t take the Gap offered by your dealership when you buy your new vehicle. There are also alternatives to Gap insurance such as new car payoff options etc, you can discuss with your auto insurance company.

Since my buddy is filing a diminished value claim let’s look at what and how the claim works.
Let’s say you are like my buddy and were in a recent accident with your vehicle. – The first thing you are going to do is file a claim with your insurance company for the damage to the vehicle – The initial claim will only cover your damages minus your deductable of course – But what about your Diminished Value, this is going to be what your new vehicle is worth if you sold it now with the repaired damage vs selling the same new vehicle now with no damage. You need to be familiar with the three (3) types of Diminished Value . . .

1.   Immediate Diminished Value is the difference in resale value of a vehicle immediately before damage has occurred and immediately after damage has occurred (prior to repair). Most jurisdictions (courts) will use this standard as the primary measure of damage when courts are employed to seek reimbursement for damage from a negligent party. As courts are rarely the chosen venue for recovery of property damage, the standard of “Immediate Diminished Value” is rarely employed in resolving Diminished Value Claims . . .

2.   Inherent Diminished Value assumes optimal repair quality has been achieved and is defined as the amount by which the resale value of a repaired vehicle has been reduced simply because the subject vehicle now has a significant damage history. “Inherent Diminished Value” is the most widely recognized and accepted form of Diminished Value. It is also the basis upon which any supplemental form of Diminished Value would be added. A common “Supplemental” form of Diminished Value is “Repair Related Diminished Value” . . .

3.   Repair Related Diminished Value includes any additional amounts by which the resale value of a subject vehicle may be further reduced because of less-than-optimal repairs. This could include anything from minor cosmetic imperfections to major structural defects.

Determining diminished value takes basic common sense, the newer your vehicle the more likely the value would be diminished if it were in an accident. If you find yourself in a position that you think you may be looking at a diminished value situation, you will need to find a D/V appraiser, this type of appraiser has really taken off recently but you will need to be careful as some of them are not as professional as others, you may just want to ask your insurance company for the name of one that they recommend.

Do not fall prey to contingency type diminished value companies. These companies will tout that they can get you money from the insurance company for the vehicles diminished value on a contingency basis, meaning that they take their money out of the claim when paid by your insurance company. There are numerous scams out their reported with this type of business activity so just avoid them.
If for some reason you have difficulty with trying to collect on a diminished value claim from your insurance company you may need to find an attorney to assist you with the claim, in most cases your attorney fees can also be incorporated into the claim.

If you don’t receive your diminished value claim or as much as you feel you should have you still can recoup some of the loss on your taxes, Please take note that in no way do I offer tax advice, nor am I a tax attorney, please seek professional tax advice when doing your taxes.

IF you itemize your deductions, you can use Line # 19 of Form 1040 – Schedule “A” to deduct your unrecovered Diminished Value. If you have an unrecovered Diminished Value of say $ 1,500 and a tax rate of 20%, you can Reduce Your Tax Obligation by almost $ 300.00.

Yet another financial strategy that can be used to help you and your family achieve the financial success you deserve.

Happy Investing!

James Dicks

Some people don’t seem to have this instinct at all, and this doesn’t bode well for the long-term health of the American economy. Just in the last two years people have started to really slow their spending down and foremost their spending on credit. It may have a negative effect on things for now, but in the long run we will be far better off.

(We have the lowest savings rate of any developed nation, which is a worrisome thing.) But the rest of us experience this self-protective instinct to put something aside for a rainy day. For some people, this means setting aside a small amount of money for less fortunate times. For still another group, the fear becomes extreme—even irrational—and leads to the unnecessary hoarding (and often counting) of money.

For me having to review this lesson is key; even writing it makes me think. My first time out I made lots of money, but I was over leveraged and in the end lost everything and had to start over again. The second time around I was not as over leveraged and saved money for a rainy day, problem is it seems as though it has been raining for a long time. However saving money for the rainy days has proven to be very wise. The next time around, I plan on having zero leverage, and living completely debt free. That is really the key to success, eliminate the credit and live on what you make and save, use a debit card instead of a credit card.

Let’s acknowledge first that saving money for the future is important. Having said that, the inevitable question that follows is, how much is enough? Setting aside a little money isn’t difficult, but since small amounts can seem so insignificant, it’s easy to lose the discipline to continue. But it is that very discipline that makes saving work. Well, discipline combined with the almost magical power of compound interest.

Compound interest is the key to building wealth. Simply put, it means investing some money, earning interest on your investment, and then leaving both the interest and the principal in place so that you begin to earn interest on your interest (as well as on your principal).

In other words, first your original money earns money, and then the money your money has earned earns more money. This goes on year after year. After years of compounded growth, the annual earnings reach an acceptable level. Eventually, if you’re original investment was large enough, if your rates of interest were competitive, and if you wait long enough, your nest egg will grow large enough to produce an acceptable outside income.

I can assure you that those of you that are a little older know exactly what I am talking about. There is a life time line where you got have more more more. I have had all the cars from a Cavalier to a convertible Murciélago Lamborghini, Bentley GT, big and fast boats etc. Now I am more focused on what counts most to me. How do you really know what is important to you? Simple, focus and take a few moments to work thru this and other mental exercises to help you laser in on those really important things. I can tell you this to accomplish your goals you must be willing to give up the not so important things, be willing to sacrifice to accomplish your truly important goals.

What 10 things would you do if you had unlimited time and money? Give yourself a few moments to come up with 10 answers, but not ones that are too long. Please write them down, either here or on a separate sheet of paper, seriously you need to do this, write it down, if you just do it on paper you won’t be able to burn the image in your subconscious which is the key to positive imaging, making the dreams become reality. Well, what did you find out about yourself? One thing many people discover, as a result of this exercise, is that listing 10 items is not as easy as they assumed it would be—even with unlimited time and money. If you found that to be true—if numbers 9 and 10 came hard— then you need to dream more. Have at it! You are now free to dream.

1. YOUR MISSION TO WEALTH TO-DO LIST 1. DEVISE A PLAN FIRST, AND THE STRATEGIES WILL FOLLOW. -You must come up with your plan first. Hildebrant’s principle applies here: “If you don’t know where you’re going, any road will get you there.” Wandering aimlessly will get you nowhere fast.

2. TRUST YOUR MENTORS.- To get the most out of this exercise, you must put your trust in people you don’t know. So I ask you to suspend disbelief. I ask you to think of me as someone you know and trust as you progress through my blogs. (There’s no downside and plenty of upside.)

3. CHANGE YOUR MINDSET.- Accumulating wealth is as much about mindset as it is about net worth. It may sound simple or even naive, but without the proper mindset, you almost certainly will not achieve your financial goals. If you do somehow achieve them, they’re likely to come undone quickly.

4. DARE TO DREAM. Dreaming is one of the first steps on the journey to financial independence. Think of Roger Bannister’s four-minute mile. Think of John F. Kennedy’s challenge to Americans to get to the moon before the end of the decade. You must first envision the future before it can become a reality. That may sound like another simplification (and indeed, it’s only part of the story), but that’s exactly what worked for me.

Don t skip this exercise. I actually sat down and did this when I was 15, as fate may have it; I found my list that I wrote some years back and realized that writing this down really helped and made the difference between success and failure. I actually wrote all my goals down, both short and long term, then I did the dreams as this exercise suggest. Over time my short term goals were all accomplished, my long term goals were really more short term and all accomplished, and my dreams became long term goals and then short term goals and then I achieved all the dreams that I had written down when I was 15. Two points here, one, do this, two update it yearly as your life’s values and what’s important changes and you want to be writing these changes down so that you can achieve them.

You need to be systematic and thorough in your approach to these eight principles. If you follow just some of them, you may still become financially free. (Yes, they are that powerful.) But your foundation for long-term success will be more solid if you internalize them all.

Let’s take another short step in your journey toward financial freedom. Yes, we’re going to do some more dreaming. If possible, you should find some quiet place where you can be by yourself and not have to worry about being self-conscious. But if you can’t, don’t worry about it. Just do the best you can. If you’re not happy about the results the first time, consider repeating the exercise again later in a more private place, and see if the results are the same.

So get comfortable and relaxed. Close your eyes for a moment, and allow yourself to dream. Let your mind roam as if you were a little kid in school, bored by some dull assignment. Give yourself permission to do what people have told you not to do your entire life: daydream.
Let your mind wander, and think happy thoughts—thoughts about things you would really like to do. Places where you’ve always wanted to travel. People you’d like to meet. Whatever comes to your mind, allow yourself to let go and dream, even if it is only for a few moments. Once you complete this brief exercise—and only after you have done this—continue on.

Did you do it? Great. I hope you enjoyed this moment with yourself. It’s a good start, and it’s something you should do more often. At first, your conscious brain—the scolding part, the part that Freud called the “superego”—will resist your attempts at daydreaming. And let’s face it, you’re out of practice. You haven’t done it since you were a kid, and even then, people were telling you it was a “waste of time.”

Nothing could be further from the truth. Dreaming puts you in touch with your inner self. It allows you to contemplate what is going on in your life, and what you want to do about it. It is a restful time—a time that allows you to recharge your batteries and rejuvenate yourself, mentally, physically, and spiritually. Entire civilizations in the East endorse meditation as a positive habit to develop.

I do, too—although I prefer to talk about dreaming, rather than meditating. I believe that a focused kind of meditation, a dreaming of your future, is critically important.

My Best
James Dicks

In order for life to work, we must all be different. We must have different dreams and different aspirations. But this very variety means that these dreams can all be fulfilled—assuming that each of us is honest with himself or herself and finds his or her true dream.
Not someone else’s dream—your dream.

Financial freedom is your dream. As long as you can dream, you can continue to succeed. Show me a person who has no dream, and I will show you someone who is poor. A millionaire dreams, and then sets out to make those dreams real. Once you stop dreaming, you stop the magic. That’s because you have created the world you wanted. You stop moving forward, because your dreams have ended. Either you are content to live with what you have or you are constantly frustrated because you don’t have enough—or you learn to dream again.

Think about this for a moment. Look around you at the people you know who, when measured in terms of financial prosperity, have a successful life. Inevitably, the ones who are the happiest are the ones who are still dreaming. Those who have stopped dreaming become overly concerned about the money they have. They begin to hoard their wealth in a way that restricts even their own pleasure.

It’s a sad predicament: to be snared by your failing or extinguished dreams. As my grandmother always said, “Be careful what you wish for, because you may get it.” In other words, be ready to handle the consequences of what you think you want, because you may indeed get it. Money without a plan is worthless. That is why the first step should be to create that plan.

You must be ready for your wealth before you get it. The plan you develop for financial success will be based on sound fundamentals, rather than on some pie-in-the-sky, get-richquick scheme. You can build the wealth you seek. It won’t come overnight, but once you master our method, you won’t care. You will be systematically working toward your long-term goal, while at the same time earning money and enjoying the journey. Isn’t that what you really want? Satisfaction today, and financial freedom tomorrow?

Don’t miss my next blog in which I will discuss the principles of wealth creation.

My Best
James Dicks

Follow up to previous blog post.

Once you have actually seen yourself spending and enjoying your newfound financial success, you can move on. Please don’t fudge—OK, let’s move on together. Let’s change your visual focus. Where do you live in your new life of prosperity? What does your house look like? How many bedrooms does it have? Can you see it? If you can see it, spend a few minutes creating details. If you can’t see it, spend a little more time with the exercise until you can.

Someone once said that what the mind can see, the body can achieve. I believe it. I go a step further. I believe that the mind must see it before the body is able to work for it. Look at another realm of human endeavor: sports. When Roger Bannister broke the four-minute mile, he saw it long before he did it. Over and over in his mind, he later recalled, he visualized doing what had been deemed to be impossible. Interestingly enough, once Bannister did what no one else had ever done before, others quickly succeeded in doing it. Why? Because in minds all around the world, mental barriers had been broken. People understood that the impossible was now possible.

The same analogy applies to wealth creation. There is a process one must go through to achieve it. Bill Gates, in his best-selling book The Road Ahead, writes about his “play” with computers in high school. Even then, when computers were the size of large rooms and far less powerful than our miniature hand-held PDAs, he dreamed about what they would be able to achieve in the future.

His dream was so strong, in fact, that he feared missing out on the revolution he saw in his mind. He dropped out of Harvard University—dropped off the safe path he was on—to get a quicker start. There was simply no way that he was going to let the software revolution start without him.
Bill Gates saw the future of computers in his mind long before it became a reality. He saw a role for himself in that future. He dreamed the dream, developed plans to fulfill that dream, and then took action. This could be called the “science of success.”

It’s not restricted to Roger Bannister and Bill Gates. It’s something that each of you can participate in and benefit from. But before you can do it, you have to knock down the mental barriers to your financial success. You must learn to envision your achievements. Once you do, the achievements will follow. So far, so good? Are you beginning to see the mindset you need to have if you are to achieve financial freedom? Let’s go a little further.

What about a family? Will you have a spouse? Children? What will they be like? These are extremely important thoughts to consider and plan for. You must see it before it happens, but once you do; financial freedom will be more than one step closer.

All of the questions I have posed to you so far will become an important part of creating your dreams and ultimately achieving goals based on those dreams. Now that you see the process unfolding, you can also see how the end results will be different for everyone.

More to follow don’t miss reading the most important aspect of how this exercise can make such an impact on your financial life.

My Best
James Dicks

“These rules of the road will help protect the American public in the largest area of retail fraud that the CFTC oversees: retail foreign exchange,” CFTC Chairman Gary Gensler said. “All CFTC registrants involved in soliciting and selling retail forex contracts to consumers will now have to comply with rules to protect the investing public. This is also the first final rule that the Commission has published to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act. We look forward to publishing additional rules to protect the American public.”

Let me sum it up for you, As an American, a US citizen you are not allowed to open a Forex account offshore in another country to trade the FOREX. The Government has taken your rights and protected you. GIVE ME A BREAK. To late its law and you will have to choke it down. These people have lost their minds, I appeal to all Americans enough is enough vote these career politicians out of office, there are less than 600 people that as a whole, all Americans can simply send home, send them all home and let’s start fresh. Here is a novel idea, I bet that if we replaces all the US representatives and the US Senators good and bad, an entire new house and senate that they can’t do any worse ruining our country than the old timers. Let’s prove it.

Back to the problem at hand, first and foremost, as you read this just keep thinking that you are not allowed to do something because you are being protected, and you have no choice. The leverage for Forex on major currency pairs is now 50:1 and exotics 20:1, what a joke. You had choices you can trade in another country, BUT not anymore. I have included numerous places to voice your opinion; I would suggest you use the fax machines, if enough people do they will unplug them, and when they do start emailing, or calling, and when they turn all that off, start sending snail mail.

Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
202-418-5000 or FAX 202-418-5521
Questions@cftc.gov.

The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted on July 21, 2010, further modified the CEA in a number of ways. It requires that all off-exchange retail foreign currency transactions be done pursuant to the rules of a Federal regulatory agency. It also requires that unless Federal regulators prepare rules regarding off-exchange retail forex transactions within specified time periods, the transactions are prohibited. If any Federal regulatory agency had already proposed such rules prior to the enactment of the Dodd-Frank Act – as had the CFTC – the agency has 90 days following enactment to adopt final rules, or the same prohibition takes effect.

For the CFTC, the Dodd-Frank Act reconfirms the Commission’s authority to regulate off-exchange retail forex transactions and establishes a date – October 19, 2010 – by which final rules must be in place. For other Federal regulators whose regulatees are expressly permitted to serve as counterparties (such as United States financial institutions and broker dealers), it requires the preparation of similar rules or such transactions by their regulatees are prohibited.

The Dodd-Frank Act further modifies the list of eligible counterparties by eliminating insurance companies and investment bank holding companies. Moreover, where the list of eligible counterparties previously included “financial institutions,” the Dodd-Frank Act specifically provides that among financial institutions, only United States financial institutions are permitted to act as counterparties. That’s right you read it correctly, you can now only trade in the US where U.S. Senator Chris Dodd and Congressman Barney Frank Say so. Let’s contact them and tell them what we really think. Don’t be fooled. I wonder if they have any major contributors that will benefit from their invite wisdom to make us trade in the US.

Congressman Barney Frank

http://www.house.gov/frank/contact/index.html

202-225-5931

U.S. Senator Chris Dodd
448 Russell Building | Washington D.C., 20510
Tel: (202) 224-2823 (202) 224-2823 | Fax: (202) 224-1083

30 Lewis St Suite 101 | Hartford, CT 06103
Tel: (860) 258-6940/(800) 334-5341 —CT only
Fax: (860) 258-6958
Happy Investing!

I believe that one of the most important qualities that any of us can possess is integrity. Without an honest approach to life and to everyone we come into contact with, our lives are meaningless. Honesty and a sense of duty should be the number one issue in our daily lives and always remember to stand up for what you believe is the right thing, even if it’s not the popular thing to do.

You must always place other’s needs ahead of your own with a sense of unselfishness. Make certain that you, as the manager; never take advantage of any situation because you’re in charge. Never take credit for something that a subordinate has accomplished but always give credit where the credit is due. Those you are in charge of leading should never take a back seat based on your status as a manager/supervisor. As the Marine Corps states, be considerate of others.

Make sure that you get up every morning with a fair amount of enthusiasm and share it with the team. This can be translated as a positive attitude that creates a sincere interest in the performance of all your duties. If you show enthusiasm, others will soon do the same in accepting their own challenges within the organization. Smile, be understanding of others, enthusiastic about the job and willing to accept anything that is required of you and the team.

Also be as dependable as you possibly can to yourself and to others. If you are late to work, how can you expect others to make it there on time? Dependability also fosters a degree of trust among the staff members and develops an effort to try and attain the highest standards possible. Being dependable also means standing up for your actions and never making excuses. Get into the habit of successfully accomplishing a task whether you like it or agree with it. If required by the organization, do it to the best of your abilities.

The courage to do what isn’t popular or might be hazardous is something you’ll have to develop. It’s a very personal trait. Any bravery “under fire” (whether on the battlefield or in the boardroom) allows you to stay calm in situations that require you to remain under control. Your moral courage is also something that must never be neglected in order for you to develop the necessary strength to stand up for what is morally right. Your moral courage also forces you to accept fault when you are to blame. This is something that our drill instructor tried to instill in us right from the start by answering with the statement “No excuse, sir” when asked about our involvement in certain situations. Take the responsibility and the blame when required. It’s all about honor and making sure the team is never placed in jeopardy. Admit your mistake and move forward. It is that important.

Endurance is the final trait I want to share with you because it’s an extremely important quality to have, especially in today’s business world. When you feel like quitting, tell yourself to keep going. Understand internally that you have the ability to withstand the pain involved (whether physical, emotional, or financial), and can handle the stress, exhaustion and the hardships you’ll most likely endure.

If you simply decide to quit, then you will have achieved nothing. But if you hang in there and get the job done, even when you don’t think you can travel one step further, you will have succeeded.

It’s not easy but it is necessary, even expected, of today’s business leader. Your confidence will be observed by those around you and will become quite contagious. If the team moves in a positive direction, the entire organization will have a better chance of succeeding. That’s important in today’s challenging business environment.

In corporate America today, there is a desperate need to do more with less. The stress of trying to create a positive cash flow when sales are down might force you to develop an approach that has never been tried before. Don’t say it can’t be done – try it. You may be surprised at how innovative thinking suddenly develops when a positive attitude is created.

Another personality trait attained when you’re in a positive mental zone is confidence. Without the will and desire to accomplish even the smallest task, there’s really no point in getting up in the morning. Your optimistic approach to the job at hand will take you to the next level of accomplishment. Part of building a respectable level of confidence is developing and attaining a set of goals that you set out for yourself and your organization. Accomplish each goal, step by step, and your confidence will flourish. You’ll start believing you can do whatever you set your mind and heart to do.

Oh, and one other thing – love what you do. That’s extremely important because once you find that your life’s work is actually something you enjoy doing, you’ll want to do it more often. You’ll want to make sure it’s done competently and those around you will also start feeling the same way. It’s often been said that if you love what you do, you’ll never work another day in your life.

But many of us are trapped in positions and in companies that we don’t enjoy because of the current shape of the economy. What can you do if you find yourself in that situation? Maybe it’s time to get out and start searching for that one thing that you are passionate about. Time to start enjoying the day from sunrise to sunset. Let your passion drive you forward and find what it is that will create a solid, confident, and positive attitude within you. It’s in you right now; you just need to do some soul searching to find it.

Your attitude and the way you think are entirely under your personal control. A positive attitude will help you lead your team to victory. So, when you think about it, your future success, even your very health is something that you can control if you literally put your mind to it. Think positively.

The topic of money never remains fixed. Tax laws are always changing, and as we’ve seen recently, the laws pertaining to credit changed and were updated, plus there are always new and different investment opportunities that are developed and must be considered. These are just a few examples; I could list many more, but you get the point. Your financial education on the subject of money will never be finished so just adjust your thinking accordingly. One of the things I suggest is to spend some time researching financial papers and periodicals. So congratulations, if you are reading this, you have already started. Keep it up.

Additionally, there are lots of other methods in becoming a student of money. Many local community colleges offer courses in basic money management, which are normally taught by Certified Financial Planners and other similarly credentialed financial professionals. These classes can be an excellent resource for you. The only caution I’ll offer you about these courses is that sometimes the instructor may use the class as a platform to give out his opinions on how to invest, or even as a means of adding clients to his list of customers. So, you’ll want to pay close attention to the information, and be sure to “weed out” those bits of information that seem to be less than standardized financial knowledge and more financial propaganda or a sales pitch. Something to consider as your wealth builds, you will actually have to spend more time, not less, watching your money. Hey, this is a good problem to have, but it is an issue nevertheless.

You probably spent a lot of time and effort gathering the money you have available to you. So it goes without saying that you must watch out for the scam artists. We’re all familiar with these folks; people who just seem to represent the lowest echelon of human existence. And I’m not only speaking of hardened criminals, but people who live in such a way that their lives are centered on the acquisition of negative energy using risky tactics. Behavioral science has shown us that when honorable people are brought together with those who are less than admirable for an extended period of time, it is very likely that the decent folks will more than likely drop to the level of their counterparts than the other way around. There are a variety of theories as to why this is the case, but chief among them is that it simply requires less effort to fall down than to rise up. The activities in which the less honorable folks are frequently engaged are admittedly very appealing at an instinctive level. So just remember what you were told as a kid – “If it sounds too good to be true, it probably is.” Be careful!

One thing is for sure, it’s going to take a lot of hard work and self-control to build a solid financial future for you and your family. There’s not just one method of doing so but there are certain constants that apply to all of us. One of them is that you will have to commit yourself to getting the education you need and then taking the time to do so. Once you realize that there are hundreds of factors that must be studied, considered and applied every day, you will be well on your way. Start your research today. If there’s one thing that we all should have learned in the past couple of years, the financial stature of our lives depends on the decisions we make today. Poor choices create unfortunate situations when times get tough. Start creating an economically sound plan that will guide you to a more solid financial life for your future.