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		<title>You’re Roth IRA Withdrawal</title>
		<link>http://www.crumbtrail.net/youre-roth-ira-withdrawal/</link>
		<comments>http://www.crumbtrail.net/youre-roth-ira-withdrawal/#comments</comments>
		<pubDate>Wed, 10 Mar 2010 21:52:13 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Finance]]></category>

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		<description><![CDATA[The Roth IRA was born on January 1, 1998 as a result of the Taxpayer Relief Act of 1997 It's named after former Senator William V Roth, Jr The Roth IRA provides no deduction for contributions, but instead provides a benefit that isn't available for any other form of retirement savings: if you meet certain requirements, all earnings are tax free when you or your beneficiary withdraws them Other benefits include avoiding the early distribution penalty on certain Roth IRA withdrawals, and avoiding the need to take minimum distributions after age 70Â½ Contributions to a Roth IRA are not tax-deductible, but earnings grow tax deferred and can be withdrawn tax-free in retirement after age 59 1/2 if the account has been in place for at least five years In addition, the Roth IRA withdrawals may be permitted without penalty sets no maximum age limit for contributions and imposes no schedule for withdrawals Roth IRA also incorporates a few other options Both traditional and Roth IRAs allow withdrawals after age 59 1/2, but unlike the traditional IRA, a Roth will permit contributions after age 70 1/2 and does not require Roth IRA withdrawals on any particular schedule After five years, a Roth IRA allows tax-free withdrawals for a first-time purchase (up to $10,000), disability or certain emergencies without penalty, up to the amount deposited Larger Roth IRA withdrawals, including some or all of the interest earned in the account will be subject to tax There is also a loophole for early Roth IRA withdrawals know as the "72(t) exception" Under current tax law, you can avoid the 10% penalty tax if you take "substantially equal periodic payments" The Internal Revenue Service 1989 Cumulative Bulletin tells you how to calculate what it considers to be "substantially equal periodic payments" IRS Revenue Ruling 2002-62 adds additional details and clarifies some issues pertaining to Roth IRA withdrawal early All of these engrossing volumes are very likely available at your local law library To take a series of "substantially equal periodic payments" from your IRA without penalty, you must withdraw money at least once a year, and you must keep taking withdrawals for five years or until you reach age 59Â½, whichever is longer So, a 35-year-old must take withdrawals for twenty-five years, while a 51-year-old must take them for eight-and-a-half years A 57-year-old would have to take withdrawals for five years, until age 62 Also, you must let a minimum of 5 years plus 1 day elapse from the date of your first SEPP withdrawal before making "unlimited" withdrawals from your IRA, even if you've reached age 59 1/2 Otherwise, the IRS will hit you with the 10% penalty and retroactive interest charges The amount of your withdrawal is calculated based on the balance of your retirement account on December 31 of the preceding year or any date in the current year prior to the first distribution using your age on December 31st of the year in which you make the withdrawal ]]></description>
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		<title>Planning For Retirement</title>
		<link>http://www.crumbtrail.net/planning-for-retirement/</link>
		<comments>http://www.crumbtrail.net/planning-for-retirement/#comments</comments>
		<pubDate>Wed, 10 Mar 2010 21:52:08 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[account]]></category>
		<category><![CDATA[article]]></category>
		<category><![CDATA[california]]></category>
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		<category><![CDATA[retirement]]></category>
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		<category><![CDATA[steady]]></category>

		<guid isPermaLink="false">http://www.crumbtrail.net/planning-for-retirement/</guid>
		<description><![CDATA[When looking towards retirement many people just think about the joy of not having to work anymore Unfortunately, even though a person retires they still have bills to pay The need for careful planning is perhaps the most overlooked part of retirement Having a set plan in place before retirement will help to ensure the golden years are golden The following list gives some great points on how to plan for retirement 1 Save money Before retirement setting up a savings account or 401K will get a person prepared for life without a steady paycheck A 401K is usually sponsored through an employer where the employer matches contributions the employee makes Money put into a 401K also goes untaxed which can mean immediate savings IRAÂ’s are also another way to save for retirement These accounts are also not taxed 2 Determine your expenses after retirement A person should have a fairly good idea what monthly expenses they expect to have after retirement Having a rough idea will help a person determine how much they need to save to be able to make it Then considerations also need to be made for special purchases like cars and trips 3 Working after retirement Many people chose to take on a part-time position after retiring Most often it is to supplement their income, but for others it is a way to socialize and gives them something to do with all the spare time they now have If a person is not planning on working anymore at all then they should have some idea what they do want to do with their time Many retirees find that retirement can be boring after years spent in the work force These three points will give a person something to think about when planning for retirement Getting a good financial plan is the first step It is also important to consider what life will really be like once the daily work schedule is gone ]]></description>
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		<title>Are You Suffering From Payment Protection Overload?</title>
		<link>http://www.crumbtrail.net/are-you-suffering-from-payment-protection-overload/</link>
		<comments>http://www.crumbtrail.net/are-you-suffering-from-payment-protection-overload/#comments</comments>
		<pubDate>Wed, 10 Mar 2010 21:52:02 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[benign]]></category>
		<category><![CDATA[brain]]></category>
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		<category><![CDATA[insurance]]></category>
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		<guid isPermaLink="false">http://www.crumbtrail.net/are-you-suffering-from-payment-protection-overload/</guid>
		<description><![CDATA[Critical illness insurance: Critical illness insurance will cover you in the event of a serious illness such as cancer, coronary artery by-pass surgery, heart attack, kidney failure, major organ transplant, multiple sclerosis and stroke Additional conditions covered by this insurance can include aorta graft surgery, benign brain tumour, blindness, coma, deafness, heart valve replacement or repair, loss of limbs, loss of speech, motor neurone disease, paralysis/paraplegia, ParkinsonÂ’s disease, terminal illness and third degree burns Not all insurance companies will necessarily cover all of these illnesses, whilst some insurance companies will cover more; it is always worth reading the terms and conditions before you sign anything Critical illness insurance policies typically offer a tax-free lump sum if you are diagnosed with one of the above illnesses and meet the conditions outlined in the policy contract The lump sum is most often used to cover the remainder of the mortgage, although can be spent on home alterations or medical care etc Life insurance: Life insurance is usually taken out if your family or partner is financially dependent on your income Life insurance can also be purchased as life assurance and in this form, can offer a method of protection cover and savings However, most people simply use it as a form of financial protection for their mortgage and therefore their family There are three main types of life insurance: term insurance, whole life insurance and endowment insurance More information can be found on these forms of life insurance on the Association of British InsurersÂ’ website, listed in the resources section of this article Mortgage life insurance: Mortgage life insurance is essentially the same as a decreasing (lump-sum) term life insurance policy and is designed to pay out a lump sum upon the death of the policy holder, should it occur during the term of the mortgage The size of the lump sum will decrease over the term of the life insurance policy, in the line with the outstanding mortgage repayments Eg As you pay off your mortgage, the amount of cover will decrease as the need is less significant Mortgage protection: Mortgage protection, also called mortgage payment protection, is a type of insurance that can help protect mortgage payments and associated household costs in the event of unemployment, illness or an accident Through mortgage payment protection, you can insure your monthly mortgage payment, monthly life premiums and the monthly cost of your buildings and content insurance Typical mortgage protection cover could include: * Unemployment and disability insurance cover * Accident or sickness * Unemployment only insurance cover * Disability only insurance cover Loan payment protection: Loan payment protection policies are designed to protect the repayments to any loans you may have taken out They work on a similar basis to mortgage payment protection, but for a wider scope of borrowing Premiums for loan payment may be greater than those for mortgage protection Income protection: In the event of unemployment, sickness or an accident, income protection insurance offers a limited income Do make sure you understand the terms of the policy however, as the income that you received through cover may be significantly less than the income you receive through employment Private medical insurance: Private medical insurance is a policy which will provide financial cover for medical treatment in the event of an acute condition According to the Association of British Insurers, the majority of insurers define an acute condition as Â“a disease, illness or injury that is likely to respond quickly to treatment which aims to return you to the state of health you were in, immediately before suffering the disease, illness or injury, or which leads to your full recoveryÂ” Private medical insurance provides reassurance for people who know that treatment is available promptly should they become ill or injured Resources: http://wwwabiorguk/ The Association of British Insurers http://wwwmoneynetcouk/insurance/indexshtml Consumer Insurance Comparison Research http://wwwmoneynetcouk/home-car-travel-insurance-guide/indexshtml Insurance Guide ]]></description>
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		<title>UK Personal Debt Problems Creating Hardship For NationÂ’s Young Adults</title>
		<link>http://www.crumbtrail.net/uk-personal-debt-problems-creating-hardship-for-nationa%e2%80%99s-young-adults/</link>
		<comments>http://www.crumbtrail.net/uk-personal-debt-problems-creating-hardship-for-nationa%e2%80%99s-young-adults/#comments</comments>
		<pubDate>Wed, 10 Mar 2010 21:51:57 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[consumer]]></category>
		<category><![CDATA[debt]]></category>
		<category><![CDATA[desensitization]]></category>
		<category><![CDATA[guarantor]]></category>
		<category><![CDATA[histories]]></category>
		<category><![CDATA[hurlston]]></category>
		<category><![CDATA[loans]]></category>
		<category><![CDATA[natural]]></category>
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		<category><![CDATA[result]]></category>
		<category><![CDATA[younger]]></category>

		<guid isPermaLink="false">http://www.crumbtrail.net/uk-personal-debt-problems-creating-hardship-for-nationa%e2%80%99s-young-adults/</guid>
		<description><![CDATA[Problem personal debt levels, especially for people under 25, in the UK have risen since last year according to the Consumer Credit Counselling Service (CCCS) In a report released this week they revealed that the average client aged under 25 coming for counselling in 2005 owes Â£15,000 The report also states that Â“More young people are getting themselves into situations where they find themselves unable to meet their unsecured credit commitmentsÂ” CCCS chairman Malcolm Hurlston said, "The growing trend for young people to get into these amounts of problem debt is a concern Bankruptcy figures are soaring, and this rise may be accounted for by the young who are without assets and who have overspent on credit cards and personal loans These trends are a natural consequence of the desensitization of borrowing - credit cards have blurred the distinction between borrowing and spending and for many young people, student loans have made borrowing normalÂ” Financial comparison site Moneynet ( http://wwwmoneynetcouk ) believes that, students face a potentially Â‘calamitousÂ’ problem with their credit histories on graduation thanks to the now inevitable prospect of leaving college or university with high debt levels Moneynet CEO Richard Brown said Â“The majority of graduates are looking at servicing a minimum debt of Â£15,000 until their mid-thirtiesÂ” University debts are now seriously starting to cause problems for the younger generation The debts generated at college have for many combined with the spiraling house prices forcing them to stretch themselves financially Those affected include both those prospective first-time buyers trying to get on the housing ladder and parents trying to help out their children with cash or by being a mortgage guarantor Another problem area, although banking organization APACS is keen to emphasize that it only affects a minority of people, is that of credit card debt Jennifer Brumby from the Newcastle branch of the CCS said, "People are now taking out credit to pay off their credit But when you get that far into debt, you are really on a slippery slope People will take out a loan to pay off their credit card and then find they haven't got enough money to survive on so they start running up their credit card bill again and the whole cycle starts overÂ” Following accusations by the Citizens Advice Bureau - http://wwwadviceguideorguk/ (CAB), it seems that the situation does not appear to be greatly helped by the use of payment protection insurance (PPI), which is specifically designed to help those potentially liable to fall into debt by repaying personal loans or credit card debt if they fall ill or lose their jobs and are therefore no longer able to meet their financial commitments The charity found that PPI is failing many of those who need it most, adding to their debts instead of protecting them against hard times The CAB said that, Â“in many cases it is more about providing an additional source of profit for the financial industry than about protecting consumersÂ” The premiums for policies when added to the full amount being borrowed can increase the cost of borrowing on some credit cards by up to 9% per year The CAB has lodged a Â“super complaintÂ” on behalf of their clients, to get the Office of Fair Trading to launch an investigation into the issue The CAB stated several different problems with the policies including: - common difficulties such as bad backs or mental health issues which often lead to claims, are being excluded to prevent payouts - self employed or contract workers are frequently excluded from claiming - time limited payout periods reduce the length of time that claims will be paid out for - low payment amounts being paid for successful claims, usually only covering only the possible minimum payments on a loan - delays in payments being made following the initial claim and leading to increased financial difficulties for the claimant CAB has said that 85% of its clients who had tried to claim on their PPI policies had been turned down, however the industry is claiming that only 15% of claims are rejected David Harker, CAB chief executive, said "We badly need an official investigation of how this market is operating, leading to effective regulation that ensures a fair deal for all consumers, and which also protects the most vulnerable" More of the nationÂ’s young adults are coming out of university and starting their working life with greater debts Many first-time buyers are finding the cost of housing beyond their finances More emphasis is being placed on individuals providing for their own long-term future privately Now the financial safety nets are being shown to contain so many holes that more people are falling through than being caught The financial future of a generation of young Britons is looking bleak As more financial choice is being made available to people, less automatic help is becoming accessible from the government and more responsibility is also being required of consumers themselves Debt may for most people, have become a generally accepted part of modern UK life, and should no longer be seen as something to be scared of, but discovering how to control it and not let it take over control of your life is an important lesson which is best learned as early as possible ]]></description>
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		<title>Your Credit Card Payment Is Rising: Warning Tips</title>
		<link>http://www.crumbtrail.net/your-credit-card-payment-is-rising-warning-tips/</link>
		<comments>http://www.crumbtrail.net/your-credit-card-payment-is-rising-warning-tips/#comments</comments>
		<pubDate>Wed, 10 Mar 2010 21:51:52 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[america]]></category>
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		<category><![CDATA[minimum]]></category>
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		<guid isPermaLink="false">http://www.crumbtrail.net/your-credit-card-payment-is-rising-warning-tips/</guid>
		<description><![CDATA[Summary: Did you know your minimum credit card payment is rising? ]]></description>
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		<title>Why You Should Choose Debt Consolidation</title>
		<link>http://www.crumbtrail.net/why-you-should-choose-debt-consolidation/</link>
		<comments>http://www.crumbtrail.net/why-you-should-choose-debt-consolidation/#comments</comments>
		<pubDate>Wed, 10 Mar 2010 21:51:48 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[balance]]></category>
		<category><![CDATA[bankruptcy]]></category>
		<category><![CDATA[companies]]></category>
		<category><![CDATA[consolidation]]></category>
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		<category><![CDATA[financial]]></category>
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		<guid isPermaLink="false">http://www.crumbtrail.net/why-you-should-choose-debt-consolidation/</guid>
		<description><![CDATA[If debt is currently an issue in your life, debt consolidation really can save you from the stress of bills, debt collectors, and the nagging thoughts of foreclosure or even bankruptcy Debt consolidation can drastically change your life within weeks, months, or years depending on your current debt situation Consolidating your debts will allow you to live with peace of mind that you are taking care of your financial obligations while continuing to live a happy life Debt consolidation is taking all of your bills and fitting them into one monthly payment Fitting all your bills into one payment also means one interest rate, which will limit the amount you pay out every month, saving you a lot of money in the long run Debt consolidation also makes paying off multiple debts easier because the monthly payments can be lowered when you take away insane interest rates The average debtor pays more interest every month than they do on the actual principal balance of their debt! Eliminating the sky-high interest rates is a good start to getting your debts paid, without going completely broke Many people assume when they canÂ’t pay the bills itÂ’s time to just throw up their hands and consider drastic actions such as foreclosure, repossession and bankruptcy While there are some extreme cases where bankruptcy would be the best option, foreclosure is almost always avoidable as is repossession Banks, car dealerships, mortgage companies, and creditors donÂ’t like to have to take back property or write off your debts, they would rather work with you on debt consolidation so that they can get back what they are owed and you can go on your way with your credit still in tact Bankruptcy, repossession, and foreclosure are not easy outs when it comes to debts; in fact, they are choices that will continue to affect you for a long, long time Consider debt consolidation before making any hasty decisions Debt consolidation on your own can be tricky, or downright impossible depending on your credit situation Luckily, there are debt consolidation companies waiting to help people who are in over their head, just like you! Debt consolidation companies will take your credit report and any unreported debts that you can give them and work out a payment plan for you These debt consolidation companies often contact each company and strike a deal to lower or get rid of the interest and even split the balance of the amount due Obviously, lowering or getting rid of interest and part of each debt will limit what you spend each month, enabling you to actually pay the bill WhatÂ’s the catch with this type of debt consolidation? Well, there really isnÂ’t one Yes, this is a business and the consolidator does make money because while he takes away the interest that each company is charging, he will charge you interest or a percentage of what you owe DoesnÂ’t seem fair? ]]></description>
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		<title>How Do Interest Rates Work?</title>
		<link>http://www.crumbtrail.net/how-do-interest-rates-work/</link>
		<comments>http://www.crumbtrail.net/how-do-interest-rates-work/#comments</comments>
		<pubDate>Wed, 10 Mar 2010 21:51:44 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[borrowing]]></category>
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		<category><![CDATA[economy]]></category>
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		<guid isPermaLink="false">http://www.crumbtrail.net/how-do-interest-rates-work/</guid>
		<description><![CDATA[One of the most confusing things about borrowing money is calculating the interest rates Interest rates vary and when you go to take out a loan or a mortgage it might seem intimidating when the loan officer starts talking about interest rates per annum, nominal rates and market interest rates There are different types of interest rates depending on whether you are borrowing money or investing money When you are borrowing money you have to pay interest back at a set rate These rates are determined by several factors One of these factors is risk If you have a bad credit rating the rates at which you pay interest on loans may be significantly higher than someone who has a pristine credit rating The reason for this is that the lender sees you as a risk When you are a risk, the rates applied to your lending rise This can make it especially difficult for someone with a bad credit rating to purchase anything major including a home or a vehicle They may be able to afford the initial payments, but once the interest rates are added, the amount exceeds their budget Another factor that determines interest rates is the length of the loan Lower interest rates are often offered if the consumer extends the period of the loan To the consumer this may seem like a windfall They view the smaller interest rates as a savings to them Short term it is but since the loan is being extended to take advantage of the lower interest rates, they are actually paying out more money in interest over the length of the loan Interest rates do not only affect just the consumer but they have an impact on the economy as a whole as well When interest rates climb, people are less likely to purchase goods that arenÂ’t essential to their lives Car sales drop and home sales often plummet as well The average consumer doesnÂ’t want to spend the extra money on the increased interest because the rise in rate just means less money in their pocket The cost of the goods they are purchasing hasnÂ’t changed, itÂ’s the cost of purchasing those goods that has On the other side of the interest rates spectrum is investing People want to invest when interest rates are high so as to yield the biggest profit Years ago the traditional savings account was often viewed as the traditional investment tool The bank would post their interest rates and people would save their money in the hopes that it would grow substantially over the course of a number of years Today you are more apt to find people investing in many diversified things; money market funds, the stock market and bonds If you decide to invest in bonds they will have a posted interest rate The rates on bonds might be slightly higher than other investments because with many bonds you have to lock your money in to the investment for a specific amount of time The period can be anywhere from several months to several years Interest rates impact our lives everyday whether we are aware of them or not To keep on top of both your borrowing and investment needs itÂ’s a good idea to follow interest rates ]]></description>
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		<title>Free Money for Your Retirement?</title>
		<link>http://www.crumbtrail.net/free-money-for-your-retirement/</link>
		<comments>http://www.crumbtrail.net/free-money-for-your-retirement/#comments</comments>
		<pubDate>Wed, 10 Mar 2010 21:51:39 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Finance]]></category>
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		<category><![CDATA[taxes]]></category>

		<guid isPermaLink="false">http://www.crumbtrail.net/free-money-for-your-retirement/</guid>
		<description><![CDATA[It can be more than a little discouraging to start making retirement planning calculations YouÂ’ll usually find that to achieve the annual retirement income you want, you need to be saving a lot more than is practical Suppose, for example, that you use a program like Quicken or Microsoft Money to determine that your retirement savings should equal to $5,200 a yearÂ—which is the same as $450 a month (This savings amount will produce roughly $15,000 a year of retirement income if you save for 20 years, increase your savings with inflation, and earn 9 percent) Okay That's great information to have But practically speaking, where do you find this money? Well first you want to get the free money that's available The first source of free retirement money While $450 a month seems like a lot of money, you may be able to come up with this figure more readily than you might think Say, for example, that you work for an employer whoÂ’s generous enough to match your 401(k) contributions by 50 percent In other words, for every dollar you contribute, your employer contributes $50 In this case, you need to come up with $300 a month to have $450 a month added to your retirement savings To make this calculation, you divide the monthly savings amount, $450, by 1 + the employerÂ’s matching percentage, 50% The formula $450/(1+50%) equals $300 The second source of free retirement money Also suppose that you pay federal and state income taxes of 33 percent and that you can deduct your 401(k) contributions from your income In this case, the actual monthly out-of-pocket amount you need to come up with equals $200, not $450 To make this calculation, you multiply your share of the needed monthly savings, $300 in this example, by 1minus the 33% marginal tax rate, which equals 67% In this case, the actual amount you need to come up with on a monthly basis equals $200 because $300 times 67% equals (roughly) $200 Sometimes, most of your retirement savings money can come from others Admittedly, $200 a month is still a lot of money But itÂ’s also a lot less than the $450-per-month savings you need to add to your retirement savings In fact, most of the money in this example you need to save comes from other sources! The preceding calculations argue for two tactics when saving for retirement First, if an employer offers to match your contributions to something like a 401(k) plan, it will almost always make sense to accept the offerÂ—unless your employer is trying to force you to make an investment that is not appropriate for you TIP If you do want to contribute $300 a month to a 401(k) plan and need to reduce your income taxes withheld by $100 a month to do so, talk to your employerÂ’s payroll department for instructions You may need to file a new W-4 statement and increase the number of personal exemptions claimed Second, any time you get a tax deduction for contributing money to your retirement savings, itÂ’s almost certainly too good a deal to pass up As described in the preceding example, you can use the income tax savings because of the deduction to boost your savings so they provide for the desired level of retirement income ]]></description>
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		<title>Medicare, Social Security and Retirement</title>
		<link>http://www.crumbtrail.net/medicare-social-security-and-retirement/</link>
		<comments>http://www.crumbtrail.net/medicare-social-security-and-retirement/#comments</comments>
		<pubDate>Wed, 10 Mar 2010 21:51:35 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[article]]></category>
		<category><![CDATA[business]]></category>
		<category><![CDATA[donald]]></category>
		<category><![CDATA[fathers]]></category>
		<category><![CDATA[health]]></category>
		<category><![CDATA[household]]></category>
		<category><![CDATA[incomes]]></category>
		<category><![CDATA[pension]]></category>
		<category><![CDATA[result]]></category>
		<category><![CDATA[retirement]]></category>
		<category><![CDATA[security]]></category>
		<category><![CDATA[social]]></category>
		<category><![CDATA[study]]></category>
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		<description><![CDATA[Everything keeps changing, how do I keep up? Why is there so many choices? This is common question and concerns of most seniors today The cost of health and prescriptions is higher today for seniors, averaging over $50000 a month With fixed incomes, a comfortable retirement seems to be slipping away Retirement is re defining itself The days of a lifetime pension and 401ks are being wiped out You must think and live different than our Mothers and Fathers did before us The nest egg is under attack with high health rates, limited 401k's and lack of pension plans from former employment Some day Social Security may not be available What are we to do]]></description>
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		<title>Forex And Commodities Futures And Options What To Know Before You Trade</title>
		<link>http://www.crumbtrail.net/forex-and-commodities-futures-and-options-what-to-know-before-you-trade/</link>
		<comments>http://www.crumbtrail.net/forex-and-commodities-futures-and-options-what-to-know-before-you-trade/#comments</comments>
		<pubDate>Wed, 10 Mar 2010 21:51:31 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[business]]></category>
		<category><![CDATA[commodity]]></category>
		<category><![CDATA[contracts]]></category>
		<category><![CDATA[disclosure]]></category>
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		<category><![CDATA[exposure]]></category>
		<category><![CDATA[financial]]></category>
		<category><![CDATA[foreign]]></category>
		<category><![CDATA[futures]]></category>
		<category><![CDATA[investment]]></category>
		<category><![CDATA[resources]]></category>
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		<category><![CDATA[risk]]></category>
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		<guid isPermaLink="false">http://www.crumbtrail.net/forex-and-commodities-futures-and-options-what-to-know-before-you-trade/</guid>
		<description><![CDATA[The popularity of trading futures and options has been growly rapidly for several years The ease of accessing constantly updated data online has prompted an increased fever by day traders to attempt to be successful and make money in this risky investment area Individuals can now trade these markets with the same ease and speed as large companies Trading forex ( foreign exchange ) and commodity futures and options is not for everyone It is a complex and risky business that experiences volatile price and value swings Before you invest any money in forex, commodities futures or option contracts, you should: Â• Consider your financial trading experience, goals, and financial resources and know how much you can afford to lose above and beyond your initial payment Â• Understand commodity futures and option contracts and your obligations before commiting your finances into trade contracts Â• Understand your risk exposure and aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you Â• Know who to contact if you have a problem or question Â• Ask more questions and gather more information before you open an account Commodity futures and option contracts: A futures contract is a legally binding agreement between two parties to buy or sell a specific financial product or commodity in the future, on a designated exchange, for a specific quantity of a commodity at a specific price The buyer and seller of a futures contract will agree now on a price for a product to be delivered, or paid, for at a specifically set date and time in the future, which is known as the "settlement date" Actual delivery of the commodity can take place in fulfillment of the contract, but most futures contracts are actually closed out or "offset" prior to delivery An option on a commodity futures contract is a legally binding agreement between two parties that gives the buyer, who pays a market determined price known as a "premium," the right (but not the obligation), within a specific time period, to exercise his option Exercise of the option will result in the person being deemed to have entered into a futures contract at a specified price known as the "strike price" In some cases, an option may confer the right to buy or sell the underlying asset directly, and these options are known as options on the physical asset In the United States, an individual, cannot trade futures contracts and options on futures contracts directly on an exchange A person or firm must trade on your behalf People and firms who trade on your behalf as a customer generally must be registered with the Commodity Futures Trading Commission Two general categories of trading accounts: Â• Individual Account In an individual account, trading is done only for you An individual account may be setup as either a "non-discretionary" or a "discretionary" account A "non-discretionary" account, means that you will make all of the trading decisions and the broker may not execute any transactions without your prior approval and consent A "discretionary" individual account, means that you give permission to the broker firm carrying your account or some third party to make trading decisions on your behalf You may open an individual account with a registered Futures Commission Merchant or through an Introducing Broker An Introducing Broker may accept your orders and transmit them for execution to a Futures Commission Merchant with which the Introducing Broker has a relationship You deposit funds directly with the Futures Commission Merchant In an individual discretionary account, you grant power-of-attorney to a Futures Commission Merchant, an Introducing Broker, one of their Associated Persons, or a Commodity Trading Advisor to make trading decisions on your behalf Commodity Pool You may also trade commodities through a "commodity pool" This means you are purchasing a share or interest in the pool, and trades are executed for the pool as a whole, rather than for the individuals who have interests in the pool Pool participants share in any gains or losses If you have a dispute or a problem arises out of your commodity futures or option account, first try to resolve the problem with your broker If that is not successful, then you have options for resolving disputes: (1) the CFTC Reparations program; (2) industry sponsored arbitration; or (3) court litigation In selecting a particular approach, you may want to consider the cost, length of time involved and whether or not the assistance of an attorney is required More information on dispute resolution is available from the CFTC's Office of Proceedings (202-418-5250) A Checklist "Before You Trade": Make sure you have: Â• Clearly identified your financial goals, including the amount of risk and loss you can handle? Â• Determined how much assistance and help you may want from a trading advisor in making trading decisions? ]]></description>
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