Auto insurance is one of those necessary expenses in life that many people don’t pay much attention to. Once you purchase your auto insurance policy inertia sets in and it is easier to simply renew your policy every 6-12 months than it is to shop for better insurance rates. But you may be able to save 30% or more on your annual bill by shopping for cheaper car insurance rates, making it well worth the effort.

How to shop for affordable auto insurance

The first thing you need to do is grab a copy of your current car insurance policy and write down your coverage and rates. Next, get car insurance rate quotes from other automobile insurance companies. You can call or visit an independent insurance agent, visit individual websites, and check online comparison sites for multiple auto insurance quotes. Be sure to check the major companies as well as some of the smaller companies – you never know which company will have the best rates until you get a quote. It’s also a good idea to read customer reviews to make sure you are going with a reputable company – the cheapest car insurance doesn’t do you any good if you can’t file a claim.

Be sure to double check your current insurance policy when making comparisons between auto insurance companies to ensure you are comparing apples to apples because a small difference in the language of the policy can have a big influence on the price.

Get multiple auto insurance quotes

Ideally you want to compare 3-5 car insurance quotes before deciding to switch companies. The following list is a good place to start. Some of these websites in this list are insurance companies and a few are insurance aggregators that will give you multiple quotes from various auto insurance companies. There may be some overlap if you get quotes from more than one aggregator, but you will need multiple quotes to do a car insurance comparison anyway.

• Geico.
• AllState.
• InsWeb.
• Fast Policy Quotes.
• InsureMe.
• 21st Century Insurance.
• EInsurance.

Get new quotes for major life events. Your insurance rates may drop when you turn age 25, get married, move to another city or state, have a shorter commute, change jobs (certain occupations may qualify for discounts), or for other major life events. It is always a good idea to get a new car insurance quote for any of these events.

How to lower your auto insurance premiums

Mitigate your risk profile

Your insurance rates are often based on the perceived risk you pose. Factors such as your age, marital status, how many miles you drive, where you live, your credit score, driving record, claims history, auto insurance coverage history, occupation, and other factors can affect your auto insurance rates.

Increase your deductible and drop unnecessary coverage.

Raising your deductible can save you up to 30% on your auto insurance premiums. Increase your deductible to $500 or $1,000 if you can afford that much for repairs. With an older car, drop collision and comprehensive coverage when the car is worth less than 10 times what you pay for the insurance (check Kelly Blue Book for used vehicle values). You can also consider dropping comprehensive coverage if you have fully paid any outstanding loans or if you can afford repairs if you are at fault.

Maintain a good driving record.

One ticket or accident may not increase your auto insurance payment, but then again, it may. Your best bet is not to find out! Drive defensively and observe traffic laws to avoid traffic tickets and possible increases to your insurance premiums. Defensive driving is not only safer, but you will probably save money on gas and maintenance costs as well. Win-win situation.

Pay your premium up front.

Many companies offer a discount on your auto insurance premiums if you are willing to pay your entire premium in advance instead of paying each month. Be sure to ask your company if they offer this type of auto insurance discount – you could save up to 10% or more.

Get good grades.

Many auto insurance companies offer discounts of 10-15% for students who maintain good grades. These discounts are often available for high school and college students. Check with your insurance agency for more details.

Join an association or club.

Many large associations and clubs are able to negotiate group discounts for auto insurance. Examples include AARP, Costco, AAA, military organizations, trade groups, unions, and more.

The type of vehicle affects insurance rates.

Vehicles with higher safety ratings, lower maintenance costs, or lower purchase prices may be cheaper to insure than expensive vehicles or those with low safety ratings. Ask about discounts for day time running lights, multiple airbags, anti-lock breaks, and other safety features. It’s a good idea to get an auto insurance quote when shopping for new cars so you have an idea of how much it will cost to insure your new vehicle.

Combine insurance policies under one roof

Some insurance companies will give you a multi-line discount when you have multiple insurance policies through their company. This can include a multiple car discount, but also for combining other insurance policies such as your homeowner’s insurance policy, renter’s insurance, etc.

Other discounts to ask about:

Defensive driving discounts, low annual mileage discounts, no accidents or moving violations, policy renewal discounts, etc.

Car insurance may be a requirement, but that doesn’t mean you should pay too much

You now have the information you need to search for lower auto insurance rates. Take the time to run some quotes and you may save yorself a couple hundred dollars per year – money that can certainly be put to better use.

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1. How to Save Money on Your Homeowner’s Insurance Rates
2. Hurricane Season – Time to Review Your Flood Insurance Policy
3. How to Lower Your Cell Phone Bill

Right now savings account rates are relatively low, which leaves a lot of people looking for a better return on their money. While many people prefer leaving their money in a standard savings account, there are some options where you may be able to earn a little more interest. These tips are primarily for people who have an established emergency fund and are looking for a better return on investment for money they do not need immediately.

High yield money market accounts & high yield checking accounts

Many banks offer high yield savings accounts, high yield money market accounts, and high yield checking accounts, each of which may offer different interest rates or benefits. Be sure to check with your local bank or credit union, which may have better offers than you can find online – particularly for high yield checking accounts. Also be sure to read the fine print before opening an account because money market accounts and high yield checking accounts often have a list of requirements that must be met to achieve the highest interest rates. High yield checking accounts often have a long list of requirements, such as maintaining a minimum balance, completing a certain number of debit card transactions per month, a maximum deposit for the highest interest rate and more. In some cases they are more hassle than they are worth.

Certificates of Deposit (CDs)

Certificates of deposit are term deposits that customers deposit with a bank for a set period of time. The amount of money banks can lend is tied to their deposits, so having a customer deposit locked in allows banks to offer better interest rates than a standard savings account. Most banks will charge a penalty if you end your CD before it has matured, so be careful not to put your money in a CD if you think you will need it soon.

How to avoid breaking CDs. The two best ways to avoid breaking CDs are to build a CD ladder or use a no-penalty CD. CD Ladders stagger your CDs on a monthly or annual basis, giving you access to a portion of your funds with more frequency. No-penalty CDs allow you to withdraw your funds without incurring a penalty. These often come with shorter terms and potentially lower interest rates than other CDs, but often beat high yield savings account rates. You can find no-penalty CDs at Ally Bank.

Purchase Bonds

Bonds are essentially loans that you give to the government or a business in return for a promise of payment at a future date. not all bonds are guaranteed, so be sure to investigate the risks before investing. You can purchase guaranteed savings bonds from the US government which are exempt from state and local taxes. Many states, cities, counties, and towns issue Municipal Bonds to pay for public projects and other activities, such as building schools or repairing roads. The majority of municipal bonds are exempt from federal, state, and local taxes, which, depending on your tax bracket, can raise the effective yield above other types of bonds or above savings accounts.

Retirement contributions

If you have extra cash in your savings accounts, you can consider increasing your retirement contributions above what you are currently making. You can contribute up to $5,000 in a Roth or Traditional IRA, and you can contribute up to $16,500 to your 401k in 2009. One way to max out your 401k contributions this year is to increase your payroll withholding and make withdrawals from your savings account to make up for the difference in cash flow. Only do this if you have a buffer in savings and don’t forget to reset your contribution levels after you max out your 401k.

Peer to peer lending

Before reading further you should realize the P2P lending is not a guaranteed investment and is not backed by the FDIC. So if you are looking for a place to stash your short term reserves without risk, then this is not an option for you. But if you are looking at a short term investment with potential returns better than a standard savings account, then you may consider purchasing loans through Lending Club or Prosper, two of the leading P2P lending institutions. While these loans are not guaranteed, there is an opportunity to return much more than a standard savings account or other investments, with Lending Club loans recently returning an average of over 9%.

Pay off debt

If you have extra cash sitting around your savings account and want to get a better return than current interest rates, then consider making additional payments on any outstanding loans, including your mortgage. Chances are you will receive about a 5% return on investment or higher, which is much better than the sub 2% interest rates offered by most banks right now.

Where is the best place to stash your cash?

The best place to stash your cash depends entirely on your financial situation and risk tolerance. You should maintain your emergency fund and as much additional cash as you deem necessary. If you have extra cash after that then it doesn’t hurt to look for a better return on your investment.

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Related Articles:

1. Looking for New Checking Account? 4.25% at Charles Schwab
2. The Best Online High Yield Savings Accounts
3. High Yield Savings Account Rates – Updated Oct. 2, 2009

The calendar just flipped to November, which means the holidays are fast approaching. I don’t know about you, but for me it seems like the year is practically over once Thanksgiving hits. My holiday season will be full with travel and a newborn at home, so I thought now would be a good idea to look at some end of year tax planning.

End of year tax planning

There are several new ways to save on taxes this year due to the personal tax breaks in the economic stimulus packages passed by Congress earlier this year. Some of these include exemption from the first $2,400 of federal unemployment compensation benefits, extended COBRA benefits, AMT relief, and more.

Retirement contributions.

You can make tax deductible retirement contributions that will lower your taxable income.

• Maximize 401k contributions. Calculate how much you have left under your 2009 401k contribution limits and determine if you can increase your contribution through work. This scan be a great move if you can work it into your budget.
• Traditional IRA contributions. You can deduct up to $5000 if you qualify. Here is more information about 2009 IRA contribution limits.
• Self employed retirement plan contributions. Several self-employed retirement plans are tax deductible, including SEP IRA, Solo 401k, SIMPLE Plan, and Keogh Plan.

Of these plans, you can contribute to the Traditional IRA, SEP IRA, SIMPLE Plan or Solo 401k after January 1st. So you should focus your contributions toward maxing out your retirement plans that must be funded by the end of the year, such as your 401k, 403b, Thrift Savings Plan (TSP), or similar retirement plans. Then focus your retirement contributions on any retirement plans that allow you to max out your retirement contributions in the following calendar year. Here are more year end retirement plan tips.

First Time Home Buyer Credit.

Earlier this year Congress passed a credit for first time home buyers good for up to $8,000. To be eligible for the credit in 2009 you must not have purchased a home within the previous three years and you must meet income requirements (the credit phases out for some high income earners). The credit does not have to be paid back, but the home must be your principal residence and you must close on the purchase before December 1, 2009. There have been talks in Congress regarding extending the first time home buyer credit, but nothing is official at the time of this publication.

New-car sales tax deduction.

New car buyers may be eligible to write off state and local sales tax from a new car purchased in 2009. Single tax filers who earn less than $125,000 and joint filers who earn less than $250,000 are eligible. This is an above the line tax deduction which means you don’t even need to itemize your taxes to take advantage of this tax deduction. Eligible vehicles include new cars, motorcycles, light vehicles, and RV’s.

Buy an energy star appliance.

This year there are special rebates for Energy Star rated appliances. These programs are federally funded, but the money and rebates are being handled by the states, so the details may vary. Eligible appliances include heat pumps, furnaces, central and window air conditioners, refrigerators, freezers, dishwashers, washing Machines, and water heaters. The amount of the rebates varies between $50 – $200 per item and you do not have to turn in an old appliance like one had to turn in an old car with the Cash for Clunkers program.

Business deductions

If you own a business, you may be able to deduct eligible expenses.  If you haven’t been categorizing your expenses, now is a good time to go through your receipts and categorize them based on type of expenditure. You can also look at your expense forecast to see if there are any purchases you can make before the year end to  increase the amount of deductions you can take. You should also look at depreciation schedules, some of which have changed for this tax year. This is an area where hiring an accountant can really pay off.

Other year end tax deductions and tips

• Harvest tax losses. You can write off investment losses
• Donations. You can make tax deductible donations to eligible charities and non-profit organizations. Be sure to avoid charity scams and determine which charities are legitimate before giving your hard earned money.
• Avoid capital gains taxes. Wait until after the New Year to sell investments for gains – postponing your taxes for a full calendar year.

Every tax situation is unique

The focus of this article is to share a few ways you can prepare for your taxes before December 31st rolls around. This article isn’t designed to be a full blueprint for tax planning as it only covers a small percentage of the available tax deductions. Most tax software programs, such as TurboTax and TaxCut should include these deductions when you file next year, but it also doesn’t hurt to start now. You may also consider meeting with a tax professional for more advanced tax planning.

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Related Articles:

1. Year End Tax Moves
2. Year End Retirement Plan Moves
3. 2009 Traditional and Roth IRA Contribution Limits

There are a lot of great deals going on in the financial world right now, so if you are looking for some free stock trades at one of the leading online brokerage firms, discounts on financial management software, or a $50 sign up bonus for TradeKing or the Chase Freedom credit card, then you are in luck.

Free stock trades, bonus money, and financial management software discounts

• TradeKing $50 sign up bonus extended until November 30th.
• OptionsHouse 100 free stock trades. Expires December 31.
• E*Trade 100 free trades when you open an IRA. Ongoing.
• Quicken WillMaker free with purchase or Quicken software. Expires today!
• Chase Freedom $50 bonus for opening a new credit account. Ongoing.
• YNAB coupon code – save 10% on You Need a Budget with coupon code CASHMONEYLIFE. Expires in December.

For more freebies and coupons, check out the Free Money page and the Money Saving Deals section of this site.

Recommended financial and career articles:

• Financial Samurai $1,000 Giveaway & Your Chance To Make Millions Over Your Career! To MBA or not to MBA? That is the question. Now you can win a consulting package valued at $1,000 to help you put together an MBA application package to help you get into the B-School of your choice. Good luck!
• Tips For Budgeting When You Are Self-Employed. Tips for setting a budget on irregular income.
• Financial Fright Night: 13 Loans That Scare Me To Death. Great tips on which types of loans to avoid.
• ING’s Fate: From Bank Deposits to Marathons. Popular online savings institution, ING Direct will be forced to break up its banking and insurance divisions in order to receive aid from the Dutch government. They have until 2013 to sell or break off ING, so no word on what exactly will happen.
• 2009 Veterans Day Discounts. Be sure to forward this article to any military members and veterans you know to thank them for their service.
• When you have a bad boss. Tips on how to handle a bad boss without putting yourself in the hot seat!

This week’s carnivals:

• 215th Edition of the Carnival of Debt Reduction @ My Journey to Millions.
• Festival of Frugality #201 – Life Stages & Home Ownership Lesson Edition @ Gather Little by Little.
• The Carnival of Personal Finance #228: Halloween 2009 Edition @ Money Crashers.
• “Carnival of Financial Planning – October 30, 2009 Edition” @ Simple Trading System.

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Related Articles:

1. 20 Free Stock Trades at Zecco
2. Get 100 FREE Trades With New OptionsHouse Brokerage Account
3. Zecco Changes Requirements for Free Trades

If you are looking for a new online broker, then right now may be a good time to take a long look at OptionsHouse, one of the top rated online discount brokerage firms. OptionsHouse is currently running a special promotion good through the end of the year: 100 free stock trades when you open a new OptionsHouse account.

Why choose OptionsHouse?

OptionsHouse is one of the top online brokerage firms and was rated #1 in Trade Experience for Options Brokers by Barron’s (a Wall Street Journal company). Along with high ratings, OptionsHouse offers users a wide array of trading tools and educational experiences, along with free use of the Maxit tax-management tool to manage your gains and losses. Their $2.95 standard trades are among the lowest in the industry, and their $9.95 options trades are very competitive. On top of these features, OptionsHouse offers no maintenance fees, volume requirements, monthly minimums, or additional charges for broker assisted trades.

How does OptionsHouse compare to other brokerages? See how OptionsHouse compares to Scottrade and tradeMONSTER, or where they rank among the top online discount brokers. You can also read the OptionsHouse Brokerage Review for more in depth information.

How to get 100 Free stock trades from OptionsHouse

• Open a new OptionsHouse brokerage account with at least $3,000
• Use the following Promo Code when you sign up: FREE100
• Receive 100 free stock trades.
• Offer expires December 31, 2009.

You then have 60 days from the time you fund your account to use your commission-free trades. Free trades are eligible to be used on regular stock and options trades. You will not receive cash compensation for any unused free trade commissions.

Other current promotions at OptionsHouse:

• ACAT Transfer Fee Reimbursement. OptionsHouse will reimburse you up to $100 to trasnfer your funds from another brokerage.
• $25 wire fee reimbursement for initial account funding.
• Refer-a-friend bonus. Get your choice of $50 or 10 trades per referral

Overall, it looks like OptionsHouse is among the more competitive online discount brokerage firms and definitely deserves a look if you are considering a new brokerage firm. For more information or to open an OptionsHouse account, visit http://www.optionshouse.com/.

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Related Articles:

1. Scottrade, OptionsHouse, and tradeMONSTER Review
2. OptionsHouse Brokerage Review
3. Zecco Changes Requirements for Free Trades

In the world of online brokerages, cost is one of the first things many investors look at because if trades are too expensive, they will eat into your returns. If cost is a concern for you, then consider OptionsHouse, a discount brokerage that offers some of the least expensive commissions in the industry with a flat rate of $2.95 per trade, regardless of how many shares you purchase. They also offer $9.95 options trades regardless of how many contracts are executed. Not only are their trade commissions low, but they back it up with great features and strong industry reviews.

OptionsHouse Brokerage Review

There are many important features to an online brokerage account, so let’s take a look at some of the most important – cost per trade, fees and account requirements, and investment options (types of investments and types of accounts).

OptionsHouse Commissions. As we already mentioned, OptionsHouse charges some of the lowest commissions in the industry with $2.95 flat rate for stocks, regardless of how many shares are purchased or if it is a broker assisted trade. Option trades are a flat rate of $9.95 regardless of how many contracts are executed. Again, there is no charge for broker assisted trades.

Account fees and minimums. OptionsHouse does not charge account maintenance fees, inactivity fees, monthly minimums, or additional charges for broker assisted trades. All prices are a flat rate, regardless of volume (some brokerages, such as Zecco have differential pricing based on number of trades or account balance). Bottom line – what you see is what you pay.

Investment options. OptionsHouse offers investors the ability to purchase and sell equities, options on equities, ETFs, and mutual funds and they offer individual and corporate accounts, Roth, SEP, and Traditional IRAs, and accounts for trusts, partnerships, investment Clubs, Educational IRAs, and custodial accounts for uniform transfers to minors or gifts to minors act (UTMA or UGMA).

OptionsHouse tools and educational center

OptionsHouse specializes in the options market and offers a wide variety of beginner level and expert level options trading tutorials in the form of articles, tools, ebooks, and webinars. Tools include an options screener, strategy screener, various calculators, a virtual trading account, and free access to the Maxit tax-management tool. Here are more OptionsHouse tools:

OptionsHouse – Award winning brokerage firm

OptionsHouse earned a four-star rating in Barron’s 2008 Best Online Broker Survey and received the #1 ranking for “Usability.” In 2009 Barron’s gave OptionsHouse a 4.5 star overall rating and listed them as the “Best For Options Traders.” Barron’s also rated OptionsHouse #1 in Trade Experience in their 2009 Online Broker Survey.

Customizable award winning user interface. OptionsHouse gives users the ability to customize their trading screen to their personal preferences. An example of the OptionsHouse award winning user interface is below:

Current OptionsHouse promotions

OptionsHouse is currently offering new customers some nice incentives to open a brokerage account, including:

• 100 free trades through the end of the year.
• ACAT reimbursement to transfer your funds from another brokerage (up to $100).
• $25 wire fee reimbursement for initial account funding.
• $50 or 10 free trades for referring new customers.

For more information, or to open an OptionsHouse brokerage account, visit http://www.optionshouse.com/.

About OptionsHouse

OptionsHouse, LLC and is owned by PEAK6 Investments, L.P., and are headquartered in Chicago. They are a licensed FINRA broker-dealer, and are a member of SIPC, which backs customer accounts against the insolvency of a brokerage firm (but not against market loss).

Customer support. OptionsHouse offers telephone and web support before, during, and after trading hours, and there is no additional fee for broker assisted trades. You can reach OptionsHouse customer support at 1-877-653-2500 from 7am – 6pm Central. Visit http://www.optionshouse.com/ for more information.

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3. Best Discount Brokerage Firms

Are you ready to be shocked? Then gather your most recent statement for each loan you have and walk through a short exercise with me. Somewhere on the loan will be a breakdown of how much you borrowed, the amount of your monthly payment, how much of your monthly payment goes toward the principle, and how much interest you are paying on your loan. With this information in hand I want you to make a 4-column chart to record your data (you can use a spreadsheet or paper and pencil; both work great for this exercise).

How much interest are you paying?

It’s one thing to know the interest rate you are paying on your loan, but it takes on an entirely different meaning when you see how much money you are actually paying toward interest each month. In many cases, the final number is shocking! I created an example debt chart to represent loans that a young couple may face shortly after starting their life together. Details about the hypothetical loans follow the chart.

Example debt chart:

Almost HALF the loan payments are for interest!

When you look at the numbers it almost doesn’t seem real, but it is – 46% of these payments go straight to the lender in the form of interest. It is amazing to see how much interest is charged on loans, and many people don’t realize how much interest they are paying until they write it down. These numbers are even more difficult to swallow when you realize they are monthly numbers and the annual interest would run over $13,000, which is a substantial percentage of many people’s take home pay.

Of course, each situation is different. For example, the mortgage interest makes up the vast majority of the interest in this chart, but even if you remove it, you would be paying $392 interest on $1477, or roughly 27%.

Hypothetical, but realistic numbers. The loans in this example represent common loans that many young couples face shortly after graduating college, getting married, and starting a family. The numbers used in this example were arrived at by using an amortization schedule calculator for reasonable loans at various stages of repayment to simulate a real world situation.

Loans and interest rates used in this example:

• Mortgage – 30 years, $150,000 loan @ 6.0% interest after 5 years. Mortgage payment does not include property taxes, insurance or PMI.
• HELOC – $20,000 @ 5.0% for 5 years after 3 years.
• Student Loans – $20,000 @ 2.0% for 10 years, after 5 years.
• Auto Loan 1 - $20,000 @ 4.0% for 60 months; after 1 year.
• Auto loan  2 – $15,000 loan @ 6.0% interest for 48 months; after 2 years.
• Credit card 1 – $7,500 @ 20% interest, paying $150 each month with no new charges.
• Credit Card 2 – $5,000 @ 10% interest, paying $150 each month with no new charges.

How long will it take to pay off your credit card? The example in this article uses a credit card with a $7,500 balance at 20% interest. If you pay $150 per month and don’t make any new charges, it will take you 108 months to pay off your card. That is 9 years! The second credit card bill will take 40 months to repay.

How to reduce the amount of interest you pay

As you can see, paying interest will get you nowhere fast. There are several ways you can reduce the amount of interest you pay each month – and you have already done the first step, which is recognizing how much you are paying. The next step is to stop adding new debt, which means no more credit cards or additional loans.

Following that, you will want to try and negotiate  lower interest rates. You may not be able to do that for fixed rate loans without refinancing the loan (which may cost money or be subjected to other conditions). But you may be able to negotiate lower interest rates on your credit cards or other non-fixed rate loans.

Other options include creating your own do it yourself debt consolidation plan, which may include using a 0% balance transfer credit card to consolidate you credit card debt at 0%, using your HELOC to consolidate your higher interest loans, or consolidating your loans through a peer to peer lending company such as Lending Club or Prosper. These loans allow borrowers to take an unsecured loan to use as they wish. In this case, consolidating debt may be a good way to pay less interest and simplify the repayment process by making fewer payments.

The importance of paying more than the minimum payment

As you can see by this example, paying the minimum on your loans means you are sending a lot of money to the lender each month instead of reducing the principle you are paying. When you make extra payments that money goes straight to the principle, which reduces the amount of money you owe, the interest you owe, and the time it will take to pay off your loan. It’s a win-win situation for you.

Read more on this topic:

• Do You Know How Much You Pay in Interest?
• How much Interest am I Paying? Hint… it’s Less..

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2. DIY Debt Consolidation Options
3. Your Credit Score is About to Become More Valuable

Individual Retirement Accounts (IRAs) are a great way to invest for retirement because they give you the opportunity to invest your money with tax advantages that are more beneficial than investing in a non-retirement account. You can open a Roth IRA at many financial institutions, which is convenient for investors. But each financial institution is not created equally and every investor has different needs, so it pays to do your research before jumping in with both feet. You should assess your investment style and needs before opening a Roth IRA or making any other investment.

What to look for when opening an IRA

Where you can open an IRA

Many financial institutions and brokerages offer IRAs, including banks, brokerage firms (Merrill Lynch, Edward Jones, etc.), online discount brokerages (Scottrade, E*Trade, TradeKing), mutual fund companies (Vanguard, Fidelity, T. Rowe Price), and independent certified financial planners. You will want to find the financial institution that best meets your investment needs.

If you prefer speaking with someone face to face, then you may wish to go with a full service broker that has an office where you can discuss your investment needs. If you prefer a more hands on approach you may wish to go with a mutual fund company where you can invest in a variety of mutual funds and other investments, or an online brokerage where you can make inexpensive individual stock trades. If you like a combination of these features, then consider a company like Scottrade, which offers a discount online brokerage, and also has individual branches where you can meet with a broker to discuss your investment needs.

Best places to open a Roth IRA. Here are some of the more popular places to open a Roth IRA.

Questions to ask before opening your IRA

• Is there a minimum initial investment to open an IRA?
• Are there minimum contributions?
• What types of fees are charged and how much are they?
• Can fees be avoided with minimum account balances or by receiving electronic statements?
• Does the company offer option to make automatic contributions?
• Which investment options are available? Stocks, Bonds, Mutual funds, ETFs, CDs, other?.

You should be able to get the answers to most of these questions online, unless you are opening an account with an independent financial planner, who may or may not have this information online. If the information is not readily available online, give the financial institution a call and ask for an information packet before opening an IRA. It’s a good idea to review the fees and other details prior to opening your IRA; that way you have a good idea of what kind of fees and other expenses you can expect to pay.

All things being equal, go with the company or broker you feel most comfortable with. And if you later decide that you don’t prefer the financial institution where you opened your IRA, you can always transfer it to another financial institution. The brokers there will be happy to help you fill out the paperwork.

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Related Articles:

1. How to Open a Roth IRA and What to Look for in a Custodian
2. Where to Open a Roth IRA Account
3. Where Do You Get the Best Roth IRA Rates?

The online brokerage community has grown by leaps and bounds in the last few years, which is great for investors who like to participate in online stock trading. The competition has forced innovation, cheap online stock trades, and additional features such as educational and training centers, free webinars, chat rooms and forums, social networking, free tax software to track gains and losses, and more. Not all of these features are available at each online brokerage, and some stock brokers offer better value than others. This online discount brokerage comparison chart will give you some basic information on pricing structures, and below the comparison chart are some unique features about each of these online brokerage firms. Hopefully you can use this information to find the discount online brokerage that is best for your needs.

Best online discount brokerages

Discount Brokerage Features

Each of these brokers has some features that set it apart from the others.

Scottrade: Scottrade has 25 years of experience and one of the best reputations in the brokerage industry. The $7 trades are right in the middle of the price range out of these online brokers, but Scottrade is the only discount brokerage on this list featuring brick and mortar offices where you can visit a broker for face to face meetings. No maintenance or inactivity fees, low stock trades, free online workshops, the Scottrade community, research and educational tools and tax tracking software make Scottrade a great fit for day traders and the casual investor alike. Scottrade will reimburse new customers up to $100 to transfer their holdings to Scottrade. For more information, or to open a Scottrade account, visit http://www.scottrade.com/.

TradeKing: TradeKing is a personal favorite of mine. They have a slick and easy to use interface, cheap stock trades, an exceptional learning center, free webinars, free access to Maxit Tax Manager to track your gains and losses, and more. TradeKing’s pricing structure is among the best in the business for discount stock trades, including for investors who prefer to trade options. TradeKing also offers to reimburse new customers up to $150 to transfer their assets to TradeKing. For more information, or to open a TradeKing account, visit http://www.tradeking.com/.

E*Trade: E*Trade is offers a full-service brokerage firm and an online bank which makes it easy to link accounts and transfer funds to and from. E*Trade has won numerous awards for both their brokerage services and their online savings accounts. While their trades are not the cheapest of the listed brokerages, they offer a wide array of services and features not found with many other online discount brokerages. New customers can get 100 free trades when they open a new Power E*TRADE accounts and fund it with a $1,000 minimum deposit within 60 days. For more information, or to open an E*Trade account, visit https://us.etrade.com/e/t/home.

Zecco Trading: Zecco burst onto the scene a couple years ago with unlimited free stock trades. Though that business model didn’t last, you can still get up to 10 free trades per month at Zecco if you make a minimum of 25 trades per month, or maintain a minimum account balance of $25,000. Zecco also features an online community, educational services, and premium services. For more information, or to open a Zecco Trading account, visit http://www.zecco.com/.

tradeMONSTER. tradeMONSTER is one of the newer online brokerages, but they have won several awards since their launch in 2008. One of tradeMONSTER’s more prominent features is their award winning user interface which allows the user to customize it to his specific tastes. tradeMONSTER features streaming stock prices with no additional charges or trading minimums, which is a rare feature among discount brokerage firms. The streaming information is a nice touch that removes the need to continually refresh the page for current prices, news and trends. For more information, or to open a tradeMONSTER account, visit https://www.trademonster.com/.

OptionsHouse. Options House offers the lowest prices for a standard online stock trade out of the brokerages listed in this review. A standard stock trade only costs $2.95 and options trades are a flat rate of $9.95. OptionsHouse was rated #1 by Barron’s in user experience. This is a great brokerage for investors who are concerned with cost per trade.  While options traders may be able to find a lower average cost based on their trading habits, OptionsHouse scores points for their user interface, software, and other features, making them a solid option for investors of all types. OptionsHouse boasts no maintenance fees, volume requirements, monthly minimums, or additional charges for broker assisted trades. For more information or to open an account, visit: http://www.optionshouse.com/

ShareBuilder. Buy and hold is the mantra of many investors, and that is the business model employed by ShareBuilder. Trade prices range from as low as $1 if made with an automatic purchase plan, up to $14.95 for real time trades. Most investors will fall in the middle of this price range, with all customers being eligible for automatic trades as low as $4 each without any additional fees, minimum trade requirements, or account minimums, making ShareBuilder an ideal brokerage for methodical discount trading. ShareBuilder offers an educational and training center and a variety of premium features. ShareBuilder is owned by the same company that owns ING Direct, which makes it easy to link accounts. For more information, or to open a ShareBuilder account, visit http://www.sharebuilder.com/.

OptionsXpress. OptionsXpress has a variable pricing schedule which drops when you makes 10 trades in a quarter. OptionsXpress has no inactivity or maintenance fees regardless of how much you have in your account, and does not charge for streaming quotes or standard withdrawals. OptiosnXpress offers free webinars, free trading tools, free advanced research and the option of a personal coaching program. You can also get up to $100 when you transfer your stock broker account to OptionsXpress. For more information, or to open an OptionsXpress account, visit http://www.optionsxpress.com/.

Which discount brokerage is the best?

As you can see by this comparison chart, there is a wide range of prices and features with these brokerages, which should cover just about anyone. I recommend reading about how to evaluate online brokers and visiting these sites to determine which online discount brokerage is the best for your needs.

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Sometimes less is more. In the world of money and finances, more is usually more. But when it comes to administration and bookkeeping, less is certainly more. These tips can help you automate and streamline your finances – reducing the time needed to stay on top of things and giving you more time to do the things that are important to you.

10 Steps to Declutter and Simplify Your Finances

Handle your mail more efficiently

The average person receives 560 pieces of junk mail each year, or about 1.5 per day. A great way to minimize the clutter is to stop junk mail and opt out of pre-screened credit offers, leaving you with the more important pieces of mail to deal with. From there set up a system that works for you. Some people find it easier to do batch processing, where they go through a week’s worth of bills and correspondence at one time, and others prefer to deal with it immediately. Experiment to find which method is best for you.

Do Not Call List.

You can also opt out of annoying phone calls by signing up for the Do Not Call List. This won’t stop phone calls from companies you currently deal with or charities, but it should stop unsolicited phone calls from mortgage brokers and debt consolidation companies.

Handle e-mail more efficiently

Use your personal e-mail account for personal items and a dedicated e-mail account for finances and official household business. My wife and I set up a dedicated e-mail account through GMail for our finances, insurance, and online shopping accounts. We don’t use it for anything else, including communication with family and friends. Be sure to opt out of store e-mails and coupon offers as most of these are just clutter that you won’t read anyway. The result is a clean inbox with actionable items.

Go paperless

Opt to receive electronic statements, which has multiple benefits, including less mail to process and a lower environmental impact. Some companies will also waive fees if you go paperless, including Vanguard and Zecco Trading. If you prefer paper statements, then get an all in one printer so you can scan the document for your records. Then shred it; reducing clutter at home.

Use Automatic Bill pay

Most online savings accounts offer free bill pay as part of their service, and it has become very common through most brick and mortar banks as well. Set up as many bills on auto pay as possible, reducing the amount of mail you send and receive, and reducing the time you spend worrying about paying bills. You can also link some payments to your credit card each month so you can take advantage of rewards points or cash back. Only use this method if you are certain you can and will pay your bill in full each month.

Automate your investments

Just like paying bills, it is easier to invest when you don’t have to sit down and write a check or initiate an electronic funds transfer each month. Set your basic asset allocation and make automatic payments for your investments. This can often be done through work via 401k contributions or a payroll deduction. You can also do automatic transfers through many brokerages, investment houses, or other financial institutions. Some discount brokerages, such as ShareBuilder, offer discounts on automatic stock trades vs. real time stock trades. Be sure to go over your asset allocation every so often to maintain a balance with your investments.

Use personal finance software

Managing money is much easier when you know how much is coming and going, and where it is coming from and what you are spending it on. There are many great financial management tools including You Need a Budget, Quicken, Quicken Online, and a host of free online money management tools.

Consolidate financial accounts

It’s not uncommon for people to have several bank accounts, but most people can get by with a local bank and an online bank for better interest rates. Many people also have multiple retirement accounts because they change jobs often. Depending on your needs, it may be a good idea to consolidate these accounts. Find a bank with high interest interest rates and nice features and park your money there. If you have an old 401k plan you can roll it into an IRA. IRAs can also be transferred to one brokerage account for easier tracking. Here is a list of the best places to open an IRA.

Reduce the number of credit cards you carry

The average American carries between 4 and 6 credit cards. Access to easy credit can be convenient, but it can cause problems for some people. Reducing the number of credit cards you keep can reduce the amount of mail you receive and make it easier to manage your money. Just keep in mind that canceling a credit card can affect your credit score, so you should probably leave the oldest card open and make sure canceling any credit cards won’t make your credit utilization too high (amount of credit used vs. amount of available credit). Here are more tips about the affects of canceling a credit card.

Consolidate debt

This won’t apply to everyone, but it may be a lifesaver for some. If you are making multiple credit card and other payments each month, then you might consider reducing the number of bills you receive and need to pay each month. One way to do this is by consolidating your debt. Don’t worry, you don’t need to pay a company thousands of dollars for this because you can consolidate your debt on your own. An easy way to consolidate your credit card debt is through a 0% balance transfer, which allows you to transfer your credit card balances to a new credit card at a 0% interest rate. There is usually a fee involved to do this, but it usually maxes out around 3-5%, which is much lower than the average credit card interest rate, which hovers around 20%. This tip can simplify your bill paying and save you money.

Simplify and automate to save time and money

Simplifying and automating your finances only takes a small amount of time and effort to set up and maintain and it can save you time and money by reducing clutter and wasted energy. It’s a win-win situation.

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