50 Plus Finance

How To Find The Best Mortgage Rates

2012-02-24T21:40:00.000-05:00

If you own a home your biggest expense is your mortgage. Over the years I have lived in many homes, in many different places and finding the top mortgage deals is so important to an affordable house payment. One of the problems of my home building business is finding the lowest mortgage rates for my buyers.

When selling real estate you usually have to guide the buyers to a mortgage broker you work closely with so they will have the greatest chance of qualifying for a mortgage. But your best effort will amount to nothing if the buyers credit is bad.

If your planning to purchase a home someday it would pay to plan ahead and check your credit score long before you make any decisions. It's of ultimate importance to have a good credit score so you will be able to qualify for the lowest interest rates. You may think you have a great credit score because you always paid your bills on time. But there are occasions when an error, through no fault of your own, appears on your credit report. Many errors on credit reports are caused by you being blamed for a bad debt by someone, with the same name as yours. Human error and mistaken information can cause your credit report to be 100 points lower than it should be. It pays to check beforehand.

Finding the best mortgage rates.

1. Online.

There are many sources available to you to find and apply for a mortgage. There are many online sources that can show what's available. Those websites can let you search for nationwide interest rates through several companies. You can narrow your search by length of loan, interest rate, points, or type of mortgage.

2. Mortgage Brokers.

If you like the personal touch, a local mortgage broker may be what you need. I like to work with mortgage brokers because of the time saving advantage. If time is at a premium, walking into a mortgage brokers office may shorten the time of the entire process.

You can apply and possibly be approved all within the same visit. Mortgage brokers work on commission and this puts the pressure on the broker to make sure you get approved. I have seen how a good mortgage broker can work out solutions, to tough and complicated transaction better than their online counterparts.

This flexibility is important because local mortgage brokers have multiple sources of money available for lending much more than boiler plate online sources.

Of course, compare and compare again, do not be in a hurry. No matter who you chose to write your mortgage, there will be sales pressure. Don't let that shake your plan of taking it slow. Also be aware of new home sellers that say you must use their mortgage source. This is not set in stone and you are able to bring in your own mortgage source. But if your cornered into using a specific company then use the leverage you have to get some freebies thrown in to sweeten the deal, for using their broker.

Words of wisdom.

At the closing be sure read your mortgage papers thoroughly before signing. Maybe even spend a few bucks and let your lawyer check it out. I have seen mortgage documents with errors in them, it doesn't happen often so read thoroughly.

The Child Tax Credit Explained

2012-02-21T08:23:00.000-05:00

Tax (Photo credit: 401K)A very important tax money saver for families is the Child Tax Credit. It's one the most beneficial components on a tax return because it gives an actual credit of $1000 for every child you have under 17. But to be eligible for the credit your child must qualify and there is income restrictions. According to Publication 972 there are 11 things you must consider.

Amount. With the Child Tax Credit, you may be able to reduce your federal income tax by up to $1,000 for each qualifying child under age 17.

Qualification. A qualifying child for this credit is someone who meets the qualifying criteria of seven tests: age, relationship, support, dependent, joint return, citizenship and residence.

Age test. To qualify, a child must have been under age 17 – age 16 or younger – at the end of 2011.

Relationship test. To claim a child for purposes of the Child Tax Credit, the child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.

Support test. In order to claim a child for this credit, the child must not have provided more than half of his/her own support.

Dependent test. You must claim the child as a dependent on your federal tax return.

Joint return test. The qualifying child can not file a joint return for the year (or files it only as a claim for refund).

Citizenship test. To meet the citizenship test, the child must be a U.S. citizen, U.S. national or U.S. resident alien.

Residence test. The child must have lived with you for more than half of 2011. There are some exceptions to the residence test, found in IRS Publication 972, Child Tax Credit.

Limitations. The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies by filing status. For married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax and any alternative minimum tax you owe.

Additional Child Tax Credit. If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.

For more information go here for a .PDF of Publication 972, Child Tax Credit.

How To Effectively Complain Online

2012-02-20T00:16:00.000-05:00

Image via WikipediaBefore the option of the Internet the only way to complain to big companies was to write letters, go to the Better Business Bureau, or just tell everyone you know. You may have gotten really mad and wrote your state agency or even Washington.

Good news, those haphazard days of complaining are over, we now have the Internet to do our work. Consumer Reports, the consumer review magazine, says "Whether it's a slap happy review of your new flat-screen TV on Amazon or a scathing critique of a car dealer on Yelp or Facebook, there are plenty of online outlets where you can post your opinions. And companies are paying attention."

Today most websites have sections where customers can leave reviews of their products or services. Companies are hoping you will share your wonderful experience with them, but many people are writing about their dissatisfaction. Companies closely monitor these feedback pages and usually contact the dissatisfied customer to try to make things right. If you ever bought something on Ebay.com or Amazon.com and noticed the ever so important feedback comments, you can see how an online reputation is more important than a real world one.

Use Good Practices.

When complaining online whether it be a companies website or a consumers rights forum, the key to success is to be business like and not emotional. If you want to get results you should state your issue in a clear and succinct way. Using profanity and slurs to ridicule a company will not gain you any constructive attention. Convey your problem in a way where the company sees you as a valuable customer with a reasonable complaint. Companies don't want to look bad in front of other companies or potential customers. These companies know that your complaint is becoming part of the Internet record and will be available by anyone that does a search of the company in question.

When you post your complaint on the Internet and the business sees the unfavorable comments, it is possible for them to file lawsuits against the complaining parties. Even Consumer Reports has been sued for unfavorable reviews from company Sharper Image. Sharper Image lost the law suit. Consumer Reports said, " The suit was in response to a critical review of the company's Ionic Breeze Quadra air cleaner that appeared in the magazine. Sharper Image was required to pay $525,000 to cover Consumers Union's legal costs."

In many states, there are laws banning such lawsuits to protect the rights of the complaining parties. Mark Goldowitz, founder and president of the Public Participation Project and a lawyer who defends clients against SLAPP suits in California says, "No matter what the laws are in your state, consider the potential repercussions before you post critical or embarrassing comments."

Bottom line, get it right when complaining online. Remember whatever you post online will probably always be online.

Best Places to Get Started with Online Complaining

1. Try the biggest sites first to get the most exposure. Social media websites like Facebook or Twitter are good places to start. Most companies have a web presence and that's where you should start you effort. Mention the companies name and a brief comment about the problem.

2. Companies websites. Most all companies have a customer service or consumer section specifically for customer complaints. There you will find a place, either a comment section or a forum, where you're able to enter a description of your problem. Be polite, business like, and respectful when leaving comments. There is no faster way to get deleted than when a slur or profanity is present. Remember you are trying to get help, not make it worse.

3. Forums and Consumer Help Websites. Search online for your specific complaint. You may find many others have the same problem as you do. As you search you will find specific websites that deal with your special complaint. Try searching for terms like "-company- problems", "-company- lawsuits", or " -company- complaints".

Many places are available to start your online complaints.

AirlineComplaints.org - Airline-related complaints or suggestions for improvement. Includes airline contacts.
Amazon.com - Reviews and ratings of products and Amazon merchants.
Angie's List - Reviews and ratings of local services and health professionals. Pay site, though nonmembers can submit reports free.
ApartmentRatings.com - More than 1 million apartment reviews and ratings.
Avvo.com - Reviews and ratings of lawyers and doctors. Includes library of legal and medical topics.
Charity Navigator - Charity watchdog organization with user reviews and ratings of nonprofit organizations. Includes tips and donor resources.
CNET.com - Discussions of electronic products, services, and companies.
Complaints.com - Complaints about products, services, companies, and professionals.
ComplaintsBoard.com - Complaints about products, services, companies, and professionals. Includes news and resources.
ConsumerAffairs.com - Reviews of products, services, companies, and professionals. Includes news and resources.
The Consumerist - Reviews and complaints about products, services, and companies. Includes news and consumer tips. Site owned by Consumers Union, publisher of Consumer Reports.
Edmunds.com - Reviews and discussions of cars and car-related products and services. Includes dozens of subject-specific message boards.
Epinions.com - Ratings and reviews of products and services.
MeasuredUp.com - Reviews of companies and professionals. Includes tips and contacts.
My3cents.com - Reviews and complaints about products, services, and companies. Includes consumer tips.
PissedConsumer.com - Reviews and complaints about products, services, companies, and professionals. Includes consumer tips.
RateMDs.com - Reviews and ratings of doctors and dentists. Includes access to medical-board records and top 10 lists.
RipoffReport.com - Complaints about services, companies, and professionals. Includes consumer tips.
TripAdvisor.com - More than 45 million reviews and ratings of hotels, restaurants, attractions, vacation rentals, cities and towns, and more.
TrustLink.org - A Better Business Bureau site with reviews and ratings of companies and professionals. Includes scam alerts.
Yelp.com - Reviews and ratings of local companies and professionals.

Remember your trying to accomplish something with your complaining, don't use the resources of the Internet to just blow off steam. If the business responds to your efforts and contacts you, be sure to reply. The company would not reply if it did not care about the customer. If things are worked out in a amicable way be sure to got back online and use the same effort you used in complaining to note that your issues have been addressed and are now satisfied.

3 Solutions To Reduce Your Money Stress

2012-02-19T14:24:00.000-05:00

Image via WikipediaLife gives us an abundant amount of things to worry about. We worry about our kids, jobs, spouses, families, and just about everything else. According to the American Psychological Association, Americans number one worry is money. We think way to much about our debts, budgets, and especially our investments.

Stressing and worrying about your money causes you to make mistakes when you need to plan and supervise your finances. You need to find ways to reduce this worry.

1. Budget

The number 1 reason for money stress is you don't know how to handle your finances. You don't know how much money is coming in and also where it's all going. To fix this you first have to set up some structure of organization. It's no shame to be unorganized, most people are and it shows with their poor financial actions.

You need to set aside some time in a quiet place with all your bills, statements, check stubs, and pen & paper. At the top of the sheet write monthly budget. That's right we are going to make the dreaded budget for the month. At the top of the page list your total income for the month. Then list down the page all your expenses that you need to pay for the month. Don't forget to list expenses that you need to pay like once a year bills. List home insurance, property taxes, etc. Divide the bill by 12 and list the amount you need to save each month to meet the future payment.

Sit back and go through the list. You will see how much you make and where it is all going. Doing this process every month gives you a road map to ease any anxiety about your money. Any problems or issues will become apparent and then you will be able to address them. Worrying about your finances will cease to be a cause for concern.

2. Retirement

Retirement is the number two cause of financial stress. When worrying about retirement do you picture yourself living in your children's garage surviving on cashing in aluminum cans. As we get older this worry seems to increase. Also when the stock market takes a nose dive and we see are portfolios drop by half the stress levels go through the roof.

Investing in general is a risky business at best. Appreciation of your portfolio is never guaranteed and if you like roller coasters you are a perfect candidate for the stock market. The first move to worrying less about retirement is having some money saved in the first place. That's why part of your budget has to include a monthly contribution to a 401k or IRA.

The other part of reducing the stress of retirement is having your investments diversified according to you risk tolerance. Having all your money in a narrow choice of investments only will lead to you losing money and causing worry. You need to find a balance between stocks and bonds. Also being very diversified in these to groups is important. With bonds you need long term, medium term, and short term. With stocks you need to diversify with international, small cap, large cap, etc. A great source for building a low stress, well diversified portfolio is financial advisor Paul Merriman. Check out his website at www.fundadvice.com.

3. Life

The last thing to do if you want to reduce stress is to take a break from your finances. After you set them up and become organized put them aside and live your life. Seek out new friends and experiences. Money isn't everything. Life is passing you by if you keep on the worrying track.

How To Save Money On Your Coffee Habit

2012-02-17T00:04:00.000-05:00

Image via WikipediaAmericans love their coffee. According to Coffee-Stastics.com , the United States is the foremost coffee-drinking country in the world. Americans are responsible for drinking down over 400 million cups a day. Sometimes I think I'm to blame for at least half that.

Coffee lovers listen up: It may be time to re-evaluate your morning jolt. Time Moneyland recently reported that Starbucks is raising prices because of increased costs for fuel and coffee beans. A "tall" (Starbucks version of a small) order of numerous coffee drinks now costs 10 cents more than last year in many parts of the U.S., including Atlanta, Boston, Dallas, Washington D.C., and New York. Not a lot as a percentage but it can add up over a year. This news comes on top of price increases instituted in 2011 by many other coffee shops.

Is their a way is their a way to tone down your coffee habit while still getting your caffeine fix?

Let's take a look.

Stop Ordering Specialty Drinks.

Those with a latte addiction should read over at Yahoo Finance that a daily $4 latte adds up to roughly $28 a week, which is the equivalent of about $120 a month and $1,460 a year. Think of all the things you could do with that cash. Making the switch to a simple cup of brewed coffee can cut your spending by nearly half.

Order a Smaller Size.

Reduce your spending further by ordering a smaller serving size. You'll still get your caffeine fix but save roughly 50 to 75 cents a day, depending on prices at your local coffee shop.

Use Your Own Cup.

Many coffee shops, from large chains to local independents, are trying to save money and reduce costs. And cutting down on disposable cups is a good way to reduce waste. Starbucks , for one, encourages customers to use their own travel mug by offering a 10-cent discount -- an easy way to offset that 10-cent price hike.

Make Your Own.

Making coffee at home is an even better way to save money. Need proof? An analysis conducted by Daily Finance that pitted a $2.29 Starbucks "grande" (medium) regular coffee against the (approximate) 17-cent cost of brewing a cup at home found the annual savings amounted to $835.85. This doesn't take into account the newest method in home brewing -- the pod, which makes quick, convenient single-serving cups but raises the per cup cost by 40 to 50 cents. Still, that's cheaper than stopping by the coffee shop every morning, although the pods aren't particularly environmentally friendly.

If you're looking to start making your own cup o' Joe, you'll have to make an upfront investment in a coffee maker. Not to worry - the expense is recouped many times over in the first year alone.

Stop the Habit Altogether.

If you're really serious about saving, forget all these suggestions on how to cut coffee costs. The best way to curb spending is to quit coffee for good. Granted, it's not easy -- if it were, no frugal consumer would be stuck with a coffee habit. The best way to quit while minimizing or avoiding withdrawal symptoms is to wean yourself gradually. Sip from smaller cups each week or try going half regular and half decaf until you can go without entirely. Once you break the habit, you might try green, black, and red rooibos teas, which all offer the same richness as coffee with much less (or no) caffeine.

I won't be doing that.

Social Security May Fail Sooner Than We Think

2012-02-16T00:28:00.000-05:00

Image via Wikipedia

Every year the Social Security Trustees Report gives a status of the fiscal state of our Social Security system. Last year it was reported that the trust fund would likely run out of money in 2036. Dailyfinance.com says this years report offers a much worse picture at "Social Security Is Failing Even Faster Than We Thought"

The current report states by the end of the decade the trust fund would be $800 billion dollars smaller than last years projections. This adjustment means Social Security would run out of money in 2034, two years sooner.

The table shows the difference between the SSA projections and this years Congressional Budgets Office projection.

The chart shows the trend over the last 5 years:

When the Trust Fund runs out of cash in 22 years, benefit payments are expected to decline. At that point it is assumed by many experts we will see a reduction of the average Social Security check to 75% of its original amount.

What to do about a reduction in Social Security?

It all depends on your age and how far away you are from receiving your 1st check. You still have 22 years to prepare for this event. It's time to start saving if you haven't already or increase saving to accumulate a bigger nest egg.

We are receiving more and more data concerning the inevitable demise of Social Security. The press and others have been saying the sky is falling for many years. But now the problem is really just around the corner and will be here soon for those in their 40's and 50's. They will be the first to experience the reduction in payments by Social Security Trust fund, yet there is still time to prepare.

Essential Tips to Saving for Retirement

2012-02-14T14:38:00.000-05:00

retirement (Photo credit: 401K)The severe economic downturn of 2008 saw millions of hard-working people lose their jobs and unfortunately much of their 401K savings. The effects of the unexpected crash have changed the way people live in the present and plan for their future. Here are some tips for seniors thinking about retirement on how to prepare:

Make realistic goals and stick to them

It is important that you set very attainable, tangible goals about your financial future. Think long and hard about what you want your senior retirement to look like. What are your needs going to be? What do you want to be able to do? Where do you want to live? After you’ve figured out the answer to these questions make a structured month by month plan about how you will save the money that you need to make your goal possible. Talk to a professional about mutual funds, savings accounts, IRAs and other instruments that you can use to safely invest your money.

Join your employer’s retirement plan

Many employers offer a retirement plan for employees that allow you to start a 401k plan. Take advantage of it! Not only will it lower your taxes and increase your deductions, your employer might even contribute money to it. This allows you to save for retirement in a very organized and comfortable fashion. You can even choose to invest the funds for your 401k to maximize your savings. Even if your employer does not offer any 401k plan, don’t be afraid to ask them if they would be willing to do so. While this may seem unnecessary during working years, you will be happy that you did it when you start thinking about calling it quits.

Have Discipline

Once you have decided what your retirement goals are and have made efforts to prepare for it via a 401k plan, IRA, as well as other kinds of investment instruments, it is important that you have discipline. This means not digging into your retirement account, especially if you can manage without doing so. It means staying committed to your goal by consistently putting money away. It also means asking the proper questions and making sure at every turn that you have your investments under control. Far too often people start thinking about retirement, but lack the proper attitude to follow through.

Make sure that you stay the course and don’t give up. Your future depends on it.

Colleges Cutting Tuition to Attract More Students

2012-02-13T00:20:00.000-05:00

Image via WikipediaI never thought I would see the day when a college would reduce its tuition. Colleges wanting to attract more students are lowering their tuition costs to make it more affordable. This is a new trend to lower costs which will help middle-income families who make to much to receive grants but to little to afford tuition. According to a Smartmoney.com article, Edwin Welch, president of University of Charleston, in West Virginia says "We are hoping to recruit more students from that group (middle income) than in the past".

The colleges are giving discounts to be more affordable but their costs may still be higher than public colleges. The average annual cost of tuition and fees at a four-year public college for in-state students this year is $8,244, according to the College Board. Of the private colleges cutting tuition, Seton Hall University in South Orange, N.J., will offer the lowest tuition (roughly $10,000) for incoming freshmen with high grades.

The current situation comes at a time when FASFA grants are starting to be cut. The cost cutting by government is a result of future federal budget cuts that will have to be put on the backs of college students receiving grants. Add to that the dismal performence of college saving vehicles like 529 plans are the situation worse. Something will have to give and the only other place to cut is tuition costs at your local college and university.

Here are the colleges providing tuition discounts.

Cabrini College

tuition cut: 12.5%
tuition and fees in 2012-13: $29,000 (down from $33,176 this year)
located near Philadelphia
room and board - $11,742

Lincoln College

tuition cut: 24%
tuition and fees in 2012-13: $17,480 (down from $23,000 this year)
the cost of tuition, fees, room and board is $29,000 this year
room and board is $7,000.
located in Lincoln, Ill.

University of Charleston

tuition cut: 22%
tuition and fees in 2012-13: $20,700 (down from $26,200)
the university decided to reduce tuition by 22% for new students and give at least $6,000 in free aid to all returning ones.
room and board, which averages $9,000 a year, will likely increase by 1% to 2%.

William Peace University

Tuition cut: 7.7%
Tuition and fees in 2012-13: $23,900 (down from $25,900)
located in Raleigh, N.C.
cost of dorms is $6,186 and food costs will rise to $2,814.

Duquesne University

Tuition and fees cut: 50% in the form of a grant for freshmen who enroll in its School of Education
located in Pittsburgh, Pa.
Tuition and fees in 2012-13: $14,355 (down from $28,671
Room and board will rise next year by 3% to 4% from its current level of roughly $9,800.

Seton Hall University

Tuition and fees cut: roughly $21,000 for incoming high achieving freshmen
Tuition and fees in 2012-13: $10,104 (down from roughly $31,000)
located in South Orange, N.J.
Room and board, which costs about $11,000 a year, will rise between 1% and 5%

The days of ever increasing costs for college tuition are coming to an end. The free money coming from government programs is beginning to taper off. Colleges will have to be more competitive with their prices to vie for less tuition dollars.

Tax Filing Status Is Not Set In Stone

2012-02-11T17:06:00.000-05:00

Tax Preparation (Photo credit: agrilifetoday)

This tax season many people will be changing their tax filing status from single to married. It's all so exciting for the newlyweds new life together. To make it more interesting you and your spouse can now file joint tax returns.

Your filing status is an important part of your tax return because if used incorrectly you could be paying to much in taxes. Many people do not realize that you don't have to continue to use the one filing status, you can change it depending on the tax implications.

“Newlyweds and married taxpayers can choose to file jointly or separately based on their individual situation, but keep in mind that this filing status can change each year,” said Mark Steber, chief tax officer, Jackson Hewitt Tax Service Inc. “Generally, using the ‘married filing jointly’ status provides the lowest tax liability and the highest standard deduction. However, if one of the filers has large deductions or expenses, the ‘married filing separately’ status may be more beneficial.”

Some rules you need to keep in mind.

The Internal Revenue Service recognizes a couple’s marital status on the last day of the year. Even couples who wed right before midnight on December 31 are considered legally married for the full 2011 tax year;

Couples should note that certain credits, including the Child and Dependent Care Credit, the Earned Income Tax Credit and certain education credits, are not available under the “married filing separately” status; and,

Tying the knot often results in a new last name. Names listed in your tax return should match all forms of identification, including social security card, passport, driver’s license and documents from employers, loan holders and investment accounts.

Make sure you seek out professional tax advice when choosing a tax filing status. The money you spend on this counsel will benefit you with only paying the minimum tax owed.

A Reverse Mortgage Is A Smart Alternative For Tapping Home Equity

2012-02-09T00:25:00.000-05:00

With the current lending climate, getting equity back out of a home is a challenge. Lenders aren't eager to do home equity lines of credit or second mortgages as they were a few years ago. However, the reverse mortgage is making a comeback, according to Annamaria Andriotis of Smart Money magazine.

You may be familiar with reverse mortgages from TV ads and infomercials. They may sound too good to be true, but reverse mortgages are backed by the Federal Housing Administration and are a legitimate government program, not a late-night TV scam.

Smart Money says that MetLife Bank has increased its reverse mortgages by 171% from 2010 to 2011. That's a substantial increase for a single product by a single lender, even though the total number (10,512) may seem low.

Reverse mortgages are, of course, only available to people ages 62 and up. Homeowners are allowed to get a loan for a percentage of the home's value: up to 62% for a 62 year old and up to 72% for an 80 year old. There are plenty of associated fees with a reverse mortgage, including origination and HUD mortgage insurance premiums, but they can be a good way to leverage the equity in your home and use that money as long as you live there, especially if you can't get a traditional home equity loan.

How to find a good reverse mortgage lender?

The National Reverse Mortgage Lenders Association has a website with lots of information on how to do that. You can also try Weemba.com. Weemba allows you to register and post your loan needs, including for reverse mortgages, at no cost to you.

Because your post only shows up under a nickname, you can include information about the value of your home, how long you've been paying on it, any income that you have and a no-cost, no-impact credit score. No one can connect the information to who you really are. If a professional lender finds your post and wants to contact you, you will get an alert by email letting you know that, and you can say yes or no to it as you wish.

Besides reverse mortgages, Weemba allows you to post for all kinds of loan needs, both personal and business: HELOCs, mortgages, home improvement loans, medical loans, lines of credit, car loans, RV loans, boat loans and all kinds of business loans too.

There is never a fee for a borrower to use Weemba; it is not a direct lender. The website simply provides users with the tools to present themselves to professional lenders in the best way possible. Weemba is changing the way that borrowers and lenders find each other online, forever.

Yearly Budget Review 'Could Help Prevent Debt Problems'

2012-02-07T07:57:00.000-05:00

Budgeting (Photo credit: 401K)People could greatly improve their financial planning just by comparing today's finances with a year ago, according to financial solutions company Think Money.

Checking bank statements from a year earlier and comparing your spending then with today could give a good insight to how your spending habits have changed - for the better or for the worse.

"Looking back at how your finances were in January 2011 could help you to make some important changes to the management of your finances here in February 2012, and give you a clearer picture of what decisions you need to make for the year ahead," said an expert at Think Money.

"Get together all your bank statements, receipts, budget plans, invoices for bills and any other important financial documents you have from the past year. Have your finances, generally speaking, improved? Got worse? Remained largely the same? Depending on what shape your finances are in now, compared with 12 months ago, you could take various approaches to dealing with them."

In particular, Think Money said comparing debt levels with a year ago could be very important.

"If you were managing your debts successfully a year ago, but feel you've lost control now, what were you doing differently then? Did you have fewer debts of smaller amounts, a higher disposable income, or were you simply more financially organised? If you're facing debt problems, it's important to get professional advice as early as possible, so you can find an approach to budgeting and debt management that works for you."

Save Money On Prescriptions With LowestMed.com

2012-02-06T00:15:00.000-05:00

Prices of prescription drugs vary from one pharmacy to the next. Consumer Reports market research found a 26% price variation between pharmacies on the same drug. It's not easy to shop around when filling your prescriptions. Website Lowestmed.com has come out with a solution to help you quickly and easily compare the prices of prescription drugs at many locations in your area.

Lowestmed.com has three ways to access its comparison data base. Simply go online to Lowestmed.com and click on the search button. Enter the name of the drug you want to find out the price for. Also enter in the zip code of the area where you want to shop. You can search as far as 30 miles away or narrow it down to a 10 mile radius. After you press the search button you select what milligram strength and either the 30 or 90 day amount.

How to use the website on your desktop computer.

As a test I entered Lipitor 10 mg. I got 8 results back with a price range between $118.00 to $123.00. It listed Atorvastatin as an alternate drug and displayed a price range between $63.00 and $107.00. The stores where to purchase the prescription and a map to them were part of the results. When you go to the pharmacy just present the card and you will be charged the price listed on the website.

How to use it on your phone.

You don't have to be in front of your computer to use Lowestmeds.com. There also is an iPhone and Android phone app. Or you can just use your web browser on your phone to search while you are out of the house.

Open the app and enter the drug and milligram strength written on your prescription. Search for the lowest price and tap the discount card button. Your ID#, Group#, and Bin# will appear. Just show it to your pharmacist to get the discounted price. You don't have to use the member card because the info will be on your phone screen,

If you have Medical Insurance.

LowestMed gives you three ways to get low prices on your medications by comparing; 1.the prices of your insurance plan 2. a competitive discount card and 3. pharmacy low cost cash list prices. Carry both your insurance card and the LowestMed Discount card with you when purchasing your medications. Check LowestMed’s website or mobile tools to see which payment method you should use to get the best price.

When you use the LowestMed card to purchase your prescription or purchase a low cost generic drug, save a copy of the receipt. If later in the year, you need to apply the costs of your prescriptions to meet your deductible, submit the receipt and a copy of your insurance card to your insurance plan to get deductible credit.

LowestMed provides you with access to a mobile internet application from your smart phone to find the pharmacies with the best prices in your local area.

Our text message tool allows you to send LowestMed a text message of your drug name and zip code and you will receive back a text message of pharmacies with the best price.

LowestMed does not limit you to one pharmacy chain like many discount programs, but has contracted prices with 58,000 pharmacies including: Costco, Wal-Mart, Kmart, Walgreens, Rite Aid, CVS, Krogers, Target, Shopko etc. as well as local grocery store chains.

Access to LowestMed’s web site gives you quick comparisons of prices for your medications at the pharmacies in your local area.

LowestMed gives you access to contracted discounts that can save you 10% - 85% off retail prices. This is possible due to the volume purchasing power of 15 million consumers.

Pharmacies have unique lists of low-cost drugs. To help you save money, every month LowestMed finds the best prices from all major pharmacy chains.

This app is something that is much needed these days because it will provide a savings to individuals who didn’t have an easy way to know if they were getting a good deal of not.

If you want to download the LowestMed app, just head over to the Apple App Store or Android Marketplace.

Suze Orman Not Pre-Approved on Her New Prepaid Card

2012-02-05T10:51:00.001-05:00

Suze Orman is jumping on the prepaid Mastercard bandwagon with her own card and many experts are not approving. Haven't we seen many times before the celebrity endorsement of prepaid plastic. From Lil' Wayne to the Kardashians, many celebrities are seeing green from these highly lucrative, high fees milking of the un-banked. Those without checking accounts are being told that they need this card to function in the economy.

When a celebrity has to go on television to defend a product it is a bad sign of the public's opinion of such products. Suze Orman has been a respected financial guru for many years and all can agree has taught millions to save, invest and be responsible with money. But the prepaid card in general has such a bad rep. with its high gotcha fees, it sours the public's perception of Suze Orman and lowers people opinion of her. She went on CNN to defend her prepaid card.

The prepaid card itself is basically a gift card with fees. Enrollees in the program pay $3 per month for access to the plastic. After activation, consumers can add money through bank transfers or cash deposits, and then use the accrued money for a variety of purchases. "You can only spend what you load on it," according to Orman's official website. At Allpoint specific ATM's $2.00 per transaction (waived for 30 days with a qualifying Direct Deposit or Bank Transfer of $20.00 or more). Non-Allpoint ATM Withdrawal Fees $2.00 per withdrawal plus any fees charged by the ATM owner or operator. Domestic ATM Balance Inquiry Fee $1.00 per transaction (waived for 30 days with a qualifying Direct Deposit of $20 or more or Bank Transfer) plus any fees charged by the ATM owner or operator. Though some things are without cost, many are not. For a complete list of fees go to Suze's website here.

To be fair Suze does give a list of ways to minimize fees and use the card in the most inexpensive way. Her list is as follows to have only the $3.00 monthly fee:

Sign up for Monthly Direct Deposit or bank account transfer of $20 or more and use an Allpoint® ATM
Don’t use ATMs other than Allpoint
Get cash back at the point of purchase
Avoid using cash to reload; use MoneyGram® if you need to
Use TheApprovedCard.com, text alerts and our automated telephone system to check your balance
Pay your bills online
Don’t call customer service more than once a month
Don’t make over-the-counter cash withdrawals at a bank

Critics of Suze can agree this prepaid card adventure has tarnished her reputation and made her perceived as just a huckster. When Suze Orman recommends something people would follow her advice because it has always been for the benefit of the people. Now her advice is possibly for the benefit of herself. Her card is not a bad card but it's not a great card either. It's just like all the others. On twitter she got into a name calling fight with some online bloggers, even calling them "idiots", she did apologize later.

Maybe Suze should stick with writing books and teaching, it has gotten her very far plus endured her to her fans. Suze, your fans deserve better.

5 Luxuries You Can Do Without (And Not Miss)

2012-02-04T12:26:00.000-05:00

Image via WikipediaThink back to when you were a kid. What did you have? What didn’t you have? Now, think about what you have now. What do you have that, in reality, you don’t need? As technology has progressed, we have found more and more luxuries become necessities. But is that necessarily true? Do we need everything we think we do? What can you cut out of your budget and never even miss?

Well, here are five luxuries you can do without. Best of all, you won’t even miss them!

1. Cable television –Everyone has a computer. And I’m not saying it is a luxury (though, in a way, it is). But since you have a computer, why are you paying for cable television? Everything you watch on TV can be found online, and for a lot cheaper. Weather you subscribe to Hulu Plus or Netflix, you can have streaming TV come to you. Best of all, no more commercials. Want to cut down even further? Well, a lot of TV stations now have the latest episodes of their shows on their website- for free! If you already own a flat screen TV, chances are that it can be hooked up to the internet. There are many ways to do that, from being info directly from your computer to inexpensive set-top boxes. Whatever the case is, you’ll save hundreds of dollars a year just cutting the cord.

2. SUV –Do you still have an SUV? What do you need it for? It’s doubtful you are dragging around more than three kids at a time, and that tank is sucking up gas like a camel in the desert. If there is no real, concrete reason for you to have an SUV; get rid of it! And don’t give me any guff about needing to haul stuff. Cars now come with foldable back seats and roomy trunks- big enough for the Christmas tree to ride comfortable. Get yourself a car with good gas mileage and save thousands.

3. Smart phone – Do you have a computer? Sure you do! So, why do you need a smart phone too? Remember the days when having a phone meant you stood next to the wall in the kitchen to talk? Or had a machine to answer when you weren’t home? Remember when you were not available twenty-four hours a day and didn’t check your email every five minutes? Get some peace and quiet back in your life and save money too. Switch your cell to a regular, everyday variety. No internet. No touch screen. Just voice and text. Think about it; do you really need, or want, to be online twenty-four/seven?

4. Bottled water –Not only are you being environmentally irresponsible when you buy bottled water, but you are being financially irresponsible as well. Think about this: over 80% of bottled water comes from tap water. That means what comes out of your sink goes into a plastic bottle and you pay extra for it. Don’t waste your money. If you have an issue with plain tap water, or live somewhere where the water’s not so great, buy a filter and stainless steel bottles. You’ll save money and room in landfills.

5. Coffee– Do you really need that four dollar cup of coffee every morning? I think we all know the answer to that question. If you can’t live without your caffeine fix, buy a travel mug and make your own. Coffee makers can be timed and ready for you every morning. If you crave your Starbucks, buy a bag at the grocery store. You’ll save money, time, and your waistline. Oh, what does your weight have to do with it? Just think about what you add to your coffee and you’ll understand. When you make it for yourself, you are virtually guaranteed to drink healthier.

There are many more luxuries out there, and you know what they are. Take a second look at your checkbook and see if you can’t cut a few things out. Most of the time, you won’t even miss them.

Author Bio:-

This is a guest post by Coleen Torres from phone internet. You can find more about her at her profile.

Older Workers Spend Less and Save More

2012-02-03T00:40:00.000-05:00

Image via WikipediaIsn't it great when something you know is true is proved in a survey. On AARP.org there is a great article about how older workers spend less on lunches and coffee than their younger co-workers. Older workers not only spend less money on lunches but they spend a lot less.

The survey taken by recruiting and staffing firm Accounting Principles shows younger workers ages 18 - 34 spend almost twice as much on coffee than workers 45 years and older. According to the Workonomix Survey, they also spend about 40 percent more on lunches. Even though older workers are earning more money they actually spend less than their younger coworkers.

The average U.S. employee spends nearly $3,000 a year on coffee and lunches at their job. This statistic should be an eye opener to what's going on in your daily spending. Even if you just cut that number in half you would have so much more money to save toward your retirement fund.

If you are starting now in your 50's and 60's to save $3,000, at the end of ten years you would end up with a tidy sum in your IRA. Using the AARP lunch saving calculator at the end of 10 years with an 8 percent rate of return you would have $12,690. The big payoff goes to the younger worker who starts to save this way now.

Try AARP's lunch savings calculator to see how much you could save by bringing your lunch from home.

Check out: Study: Older Workers Spend Less. And You? at AARP.org

Rebuilding Your Financial Plan After Recession

2012-01-29T11:42:00.000-05:00

Image by 401K via Flickr

The last recession has caused a reset to the spending and saving habits of most people. It has been a wakeup call not only for the folks nearing retirement but also the those still in their accumulation years.

If you're already in your retirement years you probably are already in balance with your income. Out of necessity your living expenses are in sync with your social security and pension fund benefits. Thankfully, Social Security benefits will rise 3.6 percent in 2012 and also many inflation linked pensions will rise also. Between 2007 and 2011 median household income for people 65 and up increased by 5.5 percent per year, while income for every other age group declined. In 2010, 9 percent of people 65 plus years old live in poverty compared to 13.5 percent for those 18 - 64.

Those with the most financial problems is the 50-plus group. Their investments took a big hit but are slowly recovering. Many lost their jobs and used up their savings just to make it through. An AARP survey found that 25 percent of the 50-plus adults used up their savings between 2007 and 2010. This group is the hardest hit because they have no retirement savings. Some are working hard to recover but sadly many never will.

What can you do?

Debt and high expenses are the curse the 50-plus group has to overcome. Many families still have children in college which diverts money away from retirement. The costs of a larger home, than would be necessary in retirement, only adds to the problem. So creating a plan is critical.

Housing is one of your most expensive costs. Having a plan to reduce costs should be at the top of your list. Downsizing is the quickest way to do this. Many real estate professionals say by the end of 2012 the bulk of the housing markets will be stabilized and start to see improved prices. Prepare for the rise in home prices by planning to sell in 2 - 3 years. Start today to prepare your home by painting and remodeling. Though you can't predict where we will be in 3 years, you still have to stay in budget, keep saving and investing at the same time.

Saving for retirement is still important and really the only way to get a decent return on your money. In a world of less than 1 percent savings instruments at your bank, an 8 percent return is possible with equities and bonds. A diversified portfolio and patience will take you to where you need to be. With stocks and their dividends providing a return of 5.3 percent a year for the past 15 years, it's important to not ignore equities.

Time of transition.

Most people were effected by the recession. But there were many who weren't. Why. They were prepared. They had a plan and a way of life where they are only slightly felt the effects of recession. We need to take a lesson from them. They lived with spending less than they made and saving the rest. They stayed away from debt and were ready for the storm. They were prepared.

5 Problems With Mixing Business and Friendship

2012-01-25T02:09:00.000-05:00

Image via WikipediaIn our lives we find so many ways to mess up with our money. With mistakes in judgment we are able to lose large amounts of money and with the money sometimes we can lose our friends. The way we lose both is when we go into financial relationships with friends or relatives. It may be a spur of the moment idea or a well thought out plan. Either way things can go wrong and they usually do. I have listed 5 ways they usually go very wrong.

Co-Signing for a loan.
The reasons for co-signing a loan for a friend or relative are many. It all starts when out of the blue you are asked to take part on a loan because the person can not be approved for the loan on their own. So you are asked to co-sign to help out the person. All kinds of promises are made about how it will be no problem for the friend to pay the loan back. They make plenty of money, but their credit is bad, so a little help is needed. You feel a little pressured because if you don't help your friend, they will not be able to get the loan.

For the friend, the deal is a no-brainer. It's all good because they will be able to get the loan and whatever they need to purchase. For the co-signer it may not be so good because they are on the hook for the full loan amount if the friend doesn't pay. If the friend doesn't pay, you can be sued for the loan balance and your credit will be effected greatly. Remember, the loan company did not give credit to the friend, because according to a credit report the friend does not have the ability to pay the loan back. Sure there are instances when all will go well and the loan will be paid back on time. But the loan may not be paid back sometimes, too.

What is your relationship to your friend worth? Will it end if the other party bails on the loan and you're stuck paying it back. No relationship can survive such a terrible blow. The best thing to do is say no to the loan. Your friend may be mad at you for a while, but the friendship will stay intact.

Renting to a Friend.
The scenario is you own a rental unit. The tenant is moving out. Your friend or relative needs a place to stay. Do you rent to them? Is it a good idea?

If you weren't renting to a friend and you just had a regular tenant you would make sure the potential tenant has a job, an ability to pay, you would have a proper lease and deposits. It would be all very business like. The tenant would know what's expected and the landlord would know what's expected. But what if you rent to a friend or relative? Would the same business like relationship occur. Renting is a business and has to be run like a business. The friend has to know they will be treated just like anyone else.

The problem with renting to friends is they sometimes think they can take a little advantage because of the friendship. They may be late on the rent or not pay a proper security deposit. They may not keep the place up as well as other tenants do. The possibility of misunderstanding is increased because of the blur of the friend/landlord line.

It is possible to have a good experience when you rent to a friend but the odds are, something will go wrong and you could suffer a falling out. Why take the risk?

Selling a used car to a friend.
This is an example of a disaster waiting to happen. You have a used car that you want to sell because you want to buy a new one. A friend or relative is need of a car. It's a perfect match. It's good for the seller because you are going to quickly sell the car. For the friend they have a car they know something about and may have already driven in the past. It's good for both parties, or is it?

Soon after the car is sold the transmission or brakes go out. What do you do now? If you sold it to a stranger you may get away with not paying for requested repairs. But with the friend, you are obligated out of friendship to make things right. If you don't the friendship could be destroyed.

What's the odds of a used car breaking down? I think the odds are pretty high something will break. Why take the chance of damaging a friendship. Sell the car to someone you don't know. If you do sell to a friend then be ready to make things right, just in case. The friendship is worth more than the cost of car repairs.

Going into business with a friend.
You and your best buddy have a incredible business idea. You decide to form a business. Good idea or bad? In a partnership, many expectations are formed by both parties. Also many questions need to be answered like who does what? Where does the money come from to operate? Who holds the check book?

This relationship is the hardest of all the examples listed. When things are going well in the business nobody complains. Difficulties arise when thing don't go so well. They may occur when one partner loses interest or thinks they are doing all the work. There are many ways for one or both partners to become disgruntled. This can ruin a business and destroy a friendship.

Sometimes partnerships work if all specifics are spelled out. But it can be almost impossible to keep each party happy. In this case everyone loses.

If you must be in business with a friend it's best to lay out all the details of the business and as much of the contingencies as possible. Having a 50/50 partnership doesn't have to be the way to proceed. It's better to make the stronger business person owner of the company and make the other person on a profit sharing plan or other agreed upon compensation plan. This way both parties are able to walk away from the company if they want. It's better this way because a friendship is worth more than any business.

Buying a vacation home together.
It usually starts with a couple of old friends going on vacation and discovering a great vacation home. Separately they can't afford the purchase but together they can. They purchase the home by either getting a mortgage together or using cash. Just like the business example, they are legally locked in together. It's like a marriage. And like a marriage it sometimes ends up in divorce. Suppose one of the friends doesn't use the home as much as the other or doesn't help in the maintenance or expense. These and many other reasons cause problems where one party wants out. It's difficult to divide the house in two and separate.

An alternative would be for one party to buy the house, if they can afford it. Then with the other party figure out some type of compensation for using the home. The stronger party with interest in the home should be the one to own the home. So when either party loses interest or the friendship breaks up no harm is done. The one that owns the house can sell and the other with no legal links to the home can just walk away.

With any joint venture all details must be worked out between the two parties. It's always better to make one partner the legal owner of the items in question and the other having a favorable compensation plan. Plan your business and plan to keep your relationships strong.

Larry E. Swedroe's - Investment Mistakes Even Smart Investors Make and How to Avoid Them - Review

2012-01-23T00:17:00.000-05:00

Investing in the stock market is no easy task. To track down a good stock or mutual fund you must do the research, talk to advisers, and study the fundamentals. Even after all that there is no guarantee your choice will perform. Still the making of mistakes is a common problem. Even seasoned investors make mistakes. Watching out for these mistakes is so important for your portfolio to grow.

Larry Swedroe has written a book called "Investment Mistakes Even Smart Investors Make and How to Avoid Them". It's a detailed check list of common and some uncommon mistakes all investors make. He has listed 77 mistakes that you need to be aware of. Many of the mistakes, you and I will undoubtedly recognize, as poor choices we have already made.

The mistakes are really nothing the average investor hasn't seen or heard of before. They are mainly problems we have with investing. You can divide them up between poor investment behavior, being to greedy, following the herd, or misunderstanding how the market works. It seems our own human nature gets us into the most trouble.

Each chapter addresses one mistake by either relating a story or showing the evidence of it's error. A lot of these mistakes can be critical to the success of your portfolio. Mistake 42, is one example that addresses the importance of starting early with a savings plan. Swedroe shows how someone who starts their saving at 34 years old must continue to save for the rest of their work life while a 24 year old that saves $5,000 a year till 34 years old and stops will have have more money at retirement, all because of the magic of compound rate of return.

Mistake 60 shows how not having proper diversification in your portfolio can sabotage performance. Swedroe doesn't just give his opinion or experiences. He gives proof from academic research and trusted resources.

Swedroe is also a fan of index fund investing. Many instances of his affection for these instruments is evident. He's cautious to state the S.& P. index fund does not a portfolio make. He is an advocate of diversification through a broad range of index funds that cover large cap, small cap, and international.

Most people do not like to be told they are making mistakes. Especially the more mature investor that has been on the job for many years. Swedroe's puts all these mistakes between the two covers of this book. He shows us the common mistakes we make and how it can eat into the performance of our investments. Even though some mistakes are small when multiplied over the life time of investing their results can be devastating.

The one mistake Swedroe leaves out of his book is that the guy in the mirror can be one of the biggest mistake makers in doing the right thing with your savings. Teach that guy what he is up against buy letting him or her read this book.

Investment Mistakes Even Smart Investors Make and How to Avoid Them

Five Ways to Pay Down Your Debt Before Retirement

2012-01-19T00:03:00.000-05:00

Image via WikipediaIf you’re close to retirement and still in debt, have hope. With smart financial planning, there is still time to get you on track.

Ashyia Hill from CreditDonkey, a credit card deals website, shares five tips on paying down your debt before retirement.

1. Start paying more than the minimum.

You should always pay more than the minimum amount required every month. The minimum amount due is usually between 2% and 5% of your balance, and paying that little will just keep interest charges building up against you.

Instead, pay as much as you can afford each month, aiming for at least double the minimum balance. This might mean canceling your cable and entertaining yourself with YouTube videos for a while or picking up microwavable meals instead of going out to eat, but it will be worth the relief you’ll feel when you’re finally debt-free.

2. If you have multiple credit cards, consider moving your debt over to a credit card with a low interest rate and 0% balance transfer fee.

OK, let’s say you have three credit cards and you owe $1,000 on each. One credit card has a 20% interest rate, the second has a 16% interest rate, and the third has a 14% interest rate. You could save money by transferring the $2,000 you have on the higher-interest credit cards to the lower-interest credit card.

That’s where 0% balance transfers come in handy. If you qualify for a card like this with a low interest rate, you can move your debt over and save money.

However, the fine print on some credit cards can make this tricky. Some cards charge hefty balance transfer fees that could make this method more trouble than it’s worth.

3. Leave $1,000 in your savings account and use the rest to pay your debts.

Chances are, your bank isn’t paying you the kind of interest for the use of your money that the folks you owe are charging you to use their money. So, although it’s scary, you might want to scrape out all but an emergency $1,000 from your savings account and use it to speed up the process of debt repayment.

But why $1,000? Well, this is the amount that Dave Ramsey, a successful financial author, radio host, and motivational speaker, recommends. Considering that Dave Ramsey built a real estate portfolio worth millions by the time he was 26, lost everything when his borrowing habits led him to file for bankruptcy after failing to pay $1.2 million of short-term notes, and then worked his way back to being debt-free, this author gets the feeling he knows what’s he talking about.

A thousand bucks should be enough to keep your head above water in most emergency situations until you figure out what to do.

4. Get a second job.

That’s right, I’m recommending that even people close to retirement consider a second job to get out of debt.

Honestly, the economy is bad for everyone right now and a lot of people are doing it. Part-time, freelance, seasonal, and temporary work is becoming more common and widely-accepted everywhere.

This is the method recommended by Jeffrey Kosola, a father who found himself owing $101,000 to creditors back in 2008 and realized this kind of debt was preventing him from supporting his family the way he wanted to. Getting a part-time job delivering pizzas started him on the journey to becoming debt-free.

Even if you can only manage a small second job, such as working one day per week at a mom and pop store, putting all of the money you earn at that job toward paying off your debt is sure to help.

5. Renegotiate with creditors.

If you don’t think you’ll be able to pay off your debts, reach out to your creditors. Let them know that if you can’t renegotiate your terms, you’ll have no choice but to file for bankruptcy.

Your creditors would rather get some money than no money at all, which is why they are often willing to bend on their terms. Ask for a lower interest rate as well as an easier repayment schedule.

This could really help you in your quest to get out of debt, and besides, it doesn’t hurt to ask.

Trying out these tips will mean changing your lifestyle, but making some sacrifices now could mean enjoying the debt-free retirement you’ve always dreamed of in the future. We wish you the best of luck.

New Years Financial Resolutions: Save on Insurance

2012-01-14T00:32:00.000-05:00

New Years is a great time to access your finances and start taking the steps necessary to improve your financial position. You should map out a plan for the year to raise your income, lower your expenses, and avoid traps such as splurging if you receive a healthy tax refund. This can really set you back in the long run.

Insurance costs are a major expense. Whether it is insurance for your home, your car, your health, or life, or other types of insurance, these costs can really add up. This is especially true as health insurance rates rise for many Americans. Cars are also a major insurance expense. Based on a survey commissioned by insure.com, the average American driver spends more than $1,500 annually on auto insurance.

Comparison Shop Regularly for the Lowest Rates

When you are purchasing insurance, it is important to get quotes from different companies so you can compare rates. There are insurance matching websites that allow you to compare multiple rates. You want to get the best car insurance you can for the money without compromising the amount of coverage. But price alone should not be a deciding factor.

Just because your policy is for 6 months or 1 year doesn’t mean that you can’t change it during that premium to another that offers a lower price. Prices fluctuate regularly and there is no penalty for canceling before your policy term expires. You could save hundreds of dollars on your policy by just taking a few minutes of time to research companies and check rates.

Also, think about what coverage you really need. Each state has different laws on the minimum requirements but there are certain types of auto insurance you may be able to skip out on such as gap, collision, or comprehensive, depending on your vehicle and your particular situation.

Consider Claims Service, Financial Strength and Discounts

In the case of auto insurance, be sure to examine the company’s level of claims service and A.M. Best Rating. These are important factors beyond just their rates. You want your company to quickly and reliably process your claim. Also be sure to see what discounts you qualify for as many insurance companies offer a wide range of rate reductions.

These discounts include having anti-theft devices, being a “good driver”, good student, being in the military, car safety features, taking a mature driver’s improvement course, insuring multiple cars, and having multiple policies with the same company, but vary by company and by state. These savings can really add up and help improve your financial health for the new year.

This guest post was provided by financial writer Jason Nelson.

3 Questions to Ask Yourself Before You Retire

2012-01-13T00:00:00.000-05:00

Retirement is an important milestone in a person's life that ironically approaches much faster than people expect, largely because it always seems so far away. But whether your retirement is two years away or twenty, it's never too late (or too early) to start seriously thinking about and planning it. A little planning is always better than no planning, and unless you want to work until the day you die, retirement is something that requires planning.

The problem for most people when thinking about retirement, even if it's imminent, is that they don't know where to start. The basics of retirement planning start with three questions about your ideal retirement; the answers to the questions should provide a schematic you can follow to help you get there. Granted, you might have to make adjustments and compromises depending on your current situation, but the questions will get you thinking and planning, which is the most important part.

When?

The first questions you need to answer is when you want to retire. If you dream of retiring at or before 60, that will drastically affect the time you have to save and invest, especially if you are already past 40 or 50. An early retirement also means that you'll have to save more so that you can provide for yourself for 20 or 30 years without working.

Knowing when you want to retire will tell you how you need to spend your remaining years before retirement. If you're still young, you'll know that you can regularly contribute a moderate amount to a savings fund and set yourself to hit your target date; if, however, you are older, you might have to push your date back, or find a way to frequently make larger contributions to your retirement fund.

How long?

While similar to the first question, this question is more concerned with how long your retirement will last — in other words, how long you expect to have to provide for yourself without working. Most banks planning to live to 95, just to be on the safe side. It's always better to have more money than you need, rather than not enough, especially when you are over 80.

How much?

This is where numbers are important: how much money will you need? To answer this question you'll need to know a few other things as well:

Where do you plan to live?

Do you plan to travel? How frequently?

Do you want to live in luxury?

The kind of retirement you want will determine how much you'll need, as does your target retirement date. Obviously you'll need to save more if you want to move to an upper-class neighborhood, travel the world for years, and do it all first-class. A standard figure is 80% of your pre-retirement income, but you will have to decide for yourself exactly how much you'll need, based on your ideal plan.

Other factors that you need to consider are your current savings and investments, as these will grow over time and give you cushion. The main idea is to figure out how you want to live after you retire so that you know how you need to live before you retire.

This guest post is contributed by Angelita Williams, who writes on the topics of online courses. She welcomes your comments at her email Id: angelita.williams7 @gmail.com.

Walmart Offering Free Tax Preparation

2012-01-12T00:27:00.000-05:00

Image via WikipediaStarting this week, free preparation of simple tax forms will be made at over 3,000 Walmart Stores nationwide. Walmart is partnering with H&R Block Inc. and Jackson-Hewitt Tax Service Inc., to set up kiosks inside its stores where customers can have their tax returns completed by trained preparers.

Last year, H&R Block offered free preparation of 1040EZ forms. To retain market share, H&R Block has offered this free service to keep customers coming through it's doors. The company had been struggling over the last few years and this strategy has worked well to keep H&R Block in the fore front of tax preparation.

H&R Block will only offer their free preparation of 1040EZ forms at Wal-Mart through Feb. 29. Block will have kiosks in about 250 Wal-Mart stores. The Feb. 29 cut off point is not much of a inconvenience because the Internal Revenue Service has reported that 40 percent of the 133 million individual returns filed were submitted before the end of February.

Jackson-Hewitt will provide free preparation of the simple forms throughout the tax season at about 2,800 Wal-Mart stores, up from 2,000 last year. Some of its retail outlets may also offer free 1040EZ prep, but doing so is not companywide policy.

While the ways to receive your refund are still the usual ways: direct deposit into a bank account or to a prepaid card, or a mailed check. Direct deposit has gained popularity because it shortens the period to a ten day time period. The I.R.S reported that last year 74 percent of refunds were sent via direct deposit.

For those that are bank less, Walmart is offering prepaid cards that the refunds can be deposited onto. There are fees but if the refund is over $1,000, then no fee is charged. If you have a I.R.S. refund check Walmart is happy to cash it for a charge of $3 for checks up to $1,000 and $6 for checks that range above $1,000.

Walmart has made filing the average tax return very simple and convenient for those that have a simple return. Thanks Walmart.

Target Redcard Gives You A 5% Discount at Target Stores

2012-01-09T00:07:00.001-05:00

Image by smcgee via FlickrThe retail market is very competitive. Brick and mortar retailers have to compete with cost cutting online stores. Big box stores like Target, Walmart, and K-mart are fighting for the consumers dollar. How does a retailer attract and keep customers coming through their door? Target has come up with way, it's something called the Target REDcard.

The Target REDcard is a debit card that links to your checking account. It works just like any other debit card but it can only be used at Target stores. When you use it at Target you receive a 5 percent discount on every purchase.

How does it work for the average consumer?

The immediate benefit is a 5 percent discount on every purchase.

There will never be any fees like overdraft or any penalties that credit cards can give you.

There is no credit check, you only need a checking account to be approved.

You can never get into any debt because you can only spend the money you have in your checking account.

If you use the card on the Target website, shipping is always free.

If you have your prescriptions filled at a Target Pharmacy, after 5 prescriptions you receive a 5 percent discount for shopping on one day, on top of the Redcard 5 percent discount.

What's the Downside on having this card?

It's not credit. You have to pay in full out of your checking account. It's like paying cash.
Being it's not credit, your good paying record won't be reflected on your credit report.
If you have a checking account and you already have a debit card. Why have another card?
Doesn't work at Target Mobile.
Having the hassle of carrying another card.
Linking another card to your checking account.

Should you get this card?

If you rarely go to Target, the 5 percent discount won't amount to much. If you do go to Target often, then this card makes sense. The 5 percent discount coupled with free shipping at Target.com is a substantial savings and is another good reason to get this card.

Switching from credit to debit cards is a big part of a plan to use your money more wisely. With a Target REDcard you're helping yourself stay away from new debt and it's helping you stay on your budget. Get the card.

Paul Merriman's - Financial Fitness After 50 Kit - Review

2012-01-07T13:23:00.000-05:00

Recently, financial adviser and teacher, Paul Merriman has been appearing all across the nation helping the fund raising efforts of your local PBS stations. At these PBS stations he has been offering a "Financial Fit Kit" as a gift when making a pledging. I received a copy of the kit for review.

First Impression.

I've been following Paul Merriman's work and podcast program " Sound Investing" for several years. He has a passion to teach people how to invest. This passion is obvious in the sheer volume of information served up in this learning experience. It took me quite a while to go through 5 DVDs and 6 CDs. Plus, Paul Merriman's latest book " Financial Fitness Forever". And don't forget a 100 page workbook. Mistakenly, I thought I had heard all that Paul Merriman had to offer, but I was wrong. I learned much more than I ever thought I would.

The 5 DVDs.

The 5 DVDs running times range from 37 minutes to 90 minutes. They answer a lot of questions that most people have about investing. In the DVDs, Paul Merriman teaches his concepts in front of a audience ranging in age from young to old. With a mix of story telling and hard facts he gets his point across in a compelling way.

These video presentations contain a lot of teaching so have a pen and pad ready to jot down a few notes. When investing, learning how and where to invest can be the easy part. The trouble comes when something goes wrong. These videos explain what could go wrong and what to do about it. Most investment and money coaches give you just the "everything is going to be great speech". Where these videos excel, is they tell you the flip side.

Paul Merriman believes it's necessary to explain the risks, mistakes, and stumbling points many investors will encounter. With over 40 years of meeting with clients he knows what to expect and wants to convey this to viewers. The hardest part of investing is to stay invested. While portfolios go through hard to stomach declines, many investors jump ship and go to a cash position. These videos explain what to do during periods when your portfolio is losing money. His main focus is to help you build a portfolio that will you ride out the tough times. These videos help you stay in control and give you a confidence that helps you make better decisions.

The 5 DVD collection titles are:

DVD #1 — “Financial Fitness After 50!” PBS Program Plus “10 Investment Guarantees Every Investor Should Know”
DVD #2 — 15 Risks Of Managing Your Money
DVD #3 — The 20 Most Common Investment Mistakes Retirees Make
DVD #4 — 20 Money Losing Investment Myths
DVD #5 — 20 Steps To Double Your Income In Retirement

The 6 CDs.

Like the DVDs, the CDs are chocked full of informative investing topics. They are great to play in the car or your CD player. I copied them to my computer to listen to, on my iPod. I listened to them at work and in the car. They are not a repeat of the DVDs, but are more informative teaching and information.

The subject matter of the CDs consist of explanations of index funds, different investments, financial advisors, and lessons from famous investors. The CDs are interesting because you getting good information from someone on the inside that knows how things really work. Investors can sometimes feel like they are not being told everything about how to invest. These CDs leaves no stone unturned in how investing works.

A 6 CD collection of money management topics:

CD #1 — Maximizing Your Financial Fitness. Topics: The Perfect Investment, What You Should Know About Index Funds.

CD #2 — Rules Of The Financial Fitness Road. Topic: Understanding How Investing Really Works.
CD #3 — The Whole Truth. Topics: 21 Things Mutual Funds Won’t Tell You, How to Avoid the Big Mistakes Pre-Retirees Make.
CD #4 — Fine Tuning Your Retirement Investments. Topics: How to Get More from Your 401(k) and IRA, Target Funds—The Lazy Investor’s Best Friend.
CD #5 — Defense, Defense, Defense! Topics: 10 Ways to Protect Your Investments from the Next Bear Market, How to Get the Most Out of Your Bond Funds.
CD #6 — Finding The Best Financial Fitness Coach. Topics: How to Select the Best Financial Advisor, Lessons from the World’s Most Famous Investors.

The Workbook.

The “Financial Fitness After 50!” workbook is designed to create an action plan and help you make the best investment decisions. This, exclusive to PBS contributors workbook, is over 100 pages and includes, 100 Investment Decisions Guaranteed To Change Your Financial Future plus recommendations for 50 more of the nation’s largest 401(k) plans. The book, “Financial Fitness Forever” by Paul Merriman, includes the first 50. And if you have your investments in any of the 10 largest fund families, you won’t want to miss recommendations to maximize your returns whether you are a conservative, moderate or aggressive investor.

I'll say it again, the amount of good information taught in this kit is very thorough. It can be compared to a mini-course in investing. The workbook explains in simple terms the basics of investing. It has information that never has been published anywhere else. It is exclusive for this kit. The workbook is divided into 101 questions that help you explore and learn what's right for personal investment goals. It has actual portfolio recommendations for all the different 401(k) investment choices or employee sponsored retirement plans. The questions are subdivided by subject.

If you weren't satisfied with all the information the DVDs and CDs have, the workbook adds much more information. It shows you in black and white even more ways to invest for higher returns. Some people don't like to watch or listen to media for long periods of time. This workbook solves that problem.

The Website.

When purchasing the Financial Fit Kit you receive a card with an access code to use when going to Paul Merriman's Financial Fit Kit website. This website is only for those that have made a donation to PBS and received the kit. At the site you can download a digital copy of the workbook to print out or view on your computer screen. There is a blog where new content is updated regularly. Also Paul has his specific investing recommendations for whatever 401(k) plan you have. Using Vanguard Funds, T. Rowe Price, Fidelity, and TIAA-CREF funds you can build a portfolio using Paul Merriman's recommendations.

At this website Paul Merriman and other experts will personally help you figure out what it takes for you to take better care of your savings. Here you will be able to ask Paul Merriman questions to help you be more successful with your money. This alone is worth the price you pay. This website is only for PBS contributors who have donated and received the kit.

What's the cost of this Financial Fit Kit?

For a pledge of $65 you receive a DVD of the PBS program, “Financial Fitness After 50!” along with a bonus presentation.

For a pledge of $150 you receive the complete Financial Fit Kit including Paul Meriman's new book “Financial Fitness Forever!” I recently wrote a review of the book. The review can be found here:

Book Review - Financial Fitness Forever: 5 Steps to More Money, Less Risk, and More Peace of Mind by Paul Merriman

I recommend this kit if you want to be successful in your retirement investing. I like this kit because it teaches you how to invest correctly and shows you how to do it at a minimal cost. You can eliminate having someone do your investing for you because you will learn how to do it yourself. If your a hands-on kind of person this kit is for you.

Final Take Away:

All through this material, I saw references and academic information to back up what was presented. I felt confident that this information wasn't just opinion but fact. This will be a great reference that can be used over and over again. Having this kind of knowledge will only help you make better investment decisions.

You can get your own Financial Fitness Kit here, here and here.

While donating to PBS your helping a great cause and benefiting yourself at the same time.

5 Smart Things To Do In January

2012-01-03T00:18:00.000-05:00

Image via WikipediaIt's the beginning of the new year and now is the time to start your list of productive things that you and I should be accomplishing now. This month will be a busy one because the work we get done this month will set the pace for the rest of the year. You need to check over your finances to see if you are doing all you can to make this year a great one.

On the to-do list:

Automate your Finances.
Is your pay check direct deposited in the bank? Why waste time driving to the bank to just deposit your check every one or two weeks. Save time and money by setting up direct deposit.

Set up automated transfers to savings to pay yourself first. The next smart step, after direct deposit, is to get funds into savings right away so they can begin earning dividends from the get-go.

Automate your mortgage payment. Even with the typical grace period that most mortgage lenders allow, it’s always a good move to take care of that big monthly payment. Again, you’ll never have to worry about making the payment on time.

Automate minimum credit card payment or payments. The penalty for a late credit card payment is not pretty. Set up an automated payment to cover at least the minimum due on all your credit cards; you always can pay additional amounts so you retire those debts as soon as you can. Set payments a few days before the due dates to protect your credit score.

Arrange to have any overdrafts automatically covered from your savings account. Even if an overdraft is rare in your household, it can happen to the best money managers. Make sure you can cover any inadvertent overdraft with a direct transfer from your savings account and there’s another worry you’ll never have again.

Get organized.
If you're like most people, you are not organized. You have stacks of papers and mail you have been saving to look at later, but never get to. Look in your closets and try to find something to throw out. We all have things in closets that we will never use again. Why not throw away the junk and donate some of the better things to Goodwill.

Check out the garage, a source of larger clutter. Through away the junk and make room for your car. If you look at it like you are moving to a smaller home, you can see what is not necessary to keep.

Spending and savings goals.
Dig out the budget and see if there are ways to fine tune it more. See if you can squeeze a little more savings from your budget by cutting expenses. The extra money can be used to pay off debt, save, or go on vacation.

When saving for retirement, college, or other major life events it's a good idea to see if you are still on track. Checking where you are and making mid-course changes will keep you going towards your goals.

Reevaluate your debts.
If you are paying on a mortgage, student loans, or credit cards it is time to see if you can possibly accelerate the process. After making monthly payments to debt you get so automated you forget to see the progress your making. You should check to see if you are making the correct payments. You could be paying to much to one debt and to little to another. You should see if it is possible to increase the amount of the monthly payment so you can be finished sooner.

Plan ahead for future needs.
This should already be a part of your budget. The problems and expenses that will come up during the year makes it unnecessary to save for. Those things are vacations, next Christmas, new cars, educational needs for the children, and large purchases like TV's and appliances.
This list only scratches the surface of things to do this month. Add to it some of the things you will be doing.