The idea to spend money cautiously is one that sounds simple in words but becomes difficult to execute. Especially, when you fixate your eyes on a new car that you wish to make your own. However, a clear mind, knowledge backed by research and a strong mindset will not only help you buy the car you love but will also save your money.

APR 101: Understanding the Annual Percentage Rate in Detail

Seeking your own answers to the following questions on APR will help you plan your finances in the correct manner.

1. What exactly is an APR?

The literal meaning of APR is Annual Percentage Rate, which in effect is the yearly amount that you will pay on your auto loan. Typically, an APR is the actual price that you pay for the borrowed money over the loan term. For instance, if you seek out an auto loan of $500 with an APR of 10%, the interest that you are expected to pay is $50 for that year, depending on your auto loan deal.

2. What is an Ideal APR Number?

According to Statista, the general APR on auto loans is close to 4.96%. However, the APR that the auto lenders offer you will depend on your credit score and credit history. The higher your credit score, the better are your chances of obtaining a lower APR. For instance, consumers who have a good credit score of 760 or more, get an auto loan with APR as low as 2% to 3%.

Alternatively, for subprime car buyers with a score of 580 or lower, the APR can be in the range of 10% to 15%. Therefore, the reason an APR becomes important is that a good APR means responsible spending that helps you save in the long run.

3. How to obtain a Good APR on your Auto Loan?

A good credit score will help you in attaining a good APR as lenders are more certain about their investment in you. In order to strengthen your credit score, clear off all past debts and payments. Also, make all your current payments on time. Another factor that can help you in getting a low APR is the length of the loan. Usually, an auto loan with 60 months or lower, will assist you in getting a good APR. Also, the age of the car plays an important role in ascertaining the number. The newer the vehicle, the lower the APR on your car.

Stay Aware: Make an Informed Car Buying Decision

Acquiring a good APR on your auto loan is not a very difficult task. The average rate of interest for US auto loans may be low. However, you should be aware of your personal credit score and financial situation. It will give you the edge to effectively negotiate a good APR on your auto loan. Therefore, stay aware and focused on your current financial standing and the path ahead to get your car will become easier.

Fund redemptions are nothing new. Every recession or bear market sees investors redeeming their fund investments and moving to asset classes which provide a greater degree of safety. For most, this is the Government Treasury Bill also called the T-Bill.

While reasons for redemptions are as varied as the investment selections themselves, it seems that individual investors are uncertain of their understanding of what their money has been invested in. While mutual funds are marketed to the investor with a lower knowledge of investment products, the hedge fund has always been the investment choice for more knowledgeable investors or the “Accredited Investor”. But now it seems even this group is calling for the need of greater understanding from their investment managers.

The battle for returns which out perform the index has resulted in many Portfolio Managers refusing to disclose their trading program for fear others will duplicate their trading style. It is said by many managers that it’s this ability to observe unique characteristics in the market place that differentiates their funds performance from the typical returns generated by bottom quartile performing funds and fund managers. Of course the unregulated hedge fund industry has perpetuated this myth by trusting the Accredited Investor with an above average knowledge of the market and his ability to select the correct investment for their portfolio. It seems the Accredited Investors does not always posses greater knowledge than their more un-sophisticated mutual fund brethren.

So that bears the question of how to obtain this transparency to the satisfaction of the investing public? And the answer is the Managed Account.

Managed Accounts are simply individual accounts opened in the name of the investor. These accounts are not pooled, yet they are identically structured and managed by the hedge fund Portfolio Manager in the same style as the pooled fund. The critical difference is the investors ability to see every trading transaction performed in the account by the fund manager.

The popularity of the pooled investment structure is that investors do not have to deposit large sums of money to utilize the services of a professional Portfolio Manager. Most successful professional Portfolio Managers do not accept accounts less than US$10 million dollars.

The hedge fund and mutual fund gained popularity by allowing smaller sums of money to be pooled with other deposits from many other investors. So while you can currently participate in a hedge fund investment for $100,000 and a mutual fund for $50., a managed account may require a minimum investment in excess of $1 million. Not so good for everybody.

But lets suppose you can convince your hedge fund manager to accept your $100,000 what advantage do you gain.

the investment account is actually in your name and not in the funds name;
your account is segregated from all other trading accounts;
instead of waiting for your monthly or quarterly statements, you can see the activity in your account on a daily basis in real time;
cash deposits or withdrawals can be simplified;
you have an overall increase of account transparency; and
you can no longer claim you did not know what was going on in your account. (oops, is that a benefit?).

There are also some disadvantages. Or put another way, the pooled investment structure provides some distinct advantages which originally made them popular since the first hedge fund was created in 1949. These funds should not be confused with the investment account managed by your stock broker. The professional Portfolio Manager will continue to exercise complete trading autonomy and does not want your advice on how to manage the assets in your account.

Advantages for remaining in a hedge fund or mutual fund:

investors can obtain the services of a professional fund manager with smaller sums of money;
management costs are cheaper since it is more economical to manage one large account instead of many smaller accounts;
you pay one flat management fee, no commissions; and best of all
you still have someone to blame if things go wrong.

It is estimated the hedge fund industry managed $2.7 trillion dollars by the end of 2008. The mutual fund industry manages $19 trillion investment dollars. So there is no question of the popularity of the industry since that first fund in 1949.

If transparency is an issue for you, you need to take a long, hard look and evaluate the pros and cons wisely. Take some time to speak with your fund manager about a managed account, it just might be the alternative you’ve been looking for.

Many clients and even attorneys are unaware that there is now a national certification process approved by the state of South Carolina for attorneys specializing in Social Security disability law. The specialization, accredited by the American Bar Association, was established in 2005 by the National Board of Legal Specialty Certification (NBLSC) on accreditation. The SC Commission on CLE and Legal Specialization has recognized the specialty since June of 2009.

Attorneys pursuing this designation must provide and demonstrate extensive involvement in and knowledge of the Social Security disability area to qualify for certification, with requirements that include the following:

- Good standing in the state of admission, and a minimum of five years in the practice of Social Security disability law immediately prior to the application.

- Substantial involvement relevant to Social Security disability law, with a requirement that at least thirty percent of the applicant’s practice must be spent on Social Security disability law in the three years prior to the application.

- Appearance in no fewer than 100 Administrative Law Judge hearings; filed no less than 20 Appeals Council briefs; and filed no less than 10 briefs in the US District Court or Court of Appeals.

- Substantial participation in Social Security disability CLE, not less than 36 hours or equivalent participation.

- A minimum of six satisfactory references, including at least three from Administrative Law Judges before whom the applicant has appeared.

- Successful completion of a written exam.

- Six examples of legal writing, with representation of work submitted to Administrative Law Judges, the appeals council, and the US District Court or Court of Appeals.

(A complete listing of qualifying criteria may be found at www.nblsc.us.)

Applicants are reviewed by an advisory board of seven attorneys and the process may take six to twelve months for approval.

Although it was not listed under specializations in the most recent SC Bar Lawyer Deskbook, there are currently two attorneys in South Carolina who have earned this designation. Besides my practice based in Charleston, Paul McChesney practices in Spartanburg.

The Social Security disability certification brings the total of specialties recognized in South Carolina to five—four under state guidelines (bankruptcy/debtor/creditor law, employment and labor law, estate planning and probate law, and taxation law), and this Social Security disability specialty, now fully certified by the national accrediting organization. Since attorneys’ fees are capped for Social Security disability cases, there’s no reason for a client to get less than the most experienced representation. On that I feel fairly certain we all would agree.

Robertson H. Wendt, Jr., practices law in Charleston, SC, and serves disability clients throughout South Carolina, including Charleston, Myrtle Beach, Georgetown, Columbia, Lexington, Beaufort, Hilton Head, and Rock Hill. He is one of only two board certified Social Security disability specialists in the state, and one of only 59 Social Security disability specialists in the US certified by the National Board of Legal Specialty Certification. Wendt has been in practice for nearly 30 years and has handled thousands of Social Security disability claims. Find out more about him at www.robertsonwendt.com.

* Attorney advertising notice: This article is designed for general information only. The information presented on this website should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

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