Moolanomy Personal Finance

Does Investment Portfolio Diversification Still Work?

Craig Ford (Staff Writer) — Fri, 12 Mar 2010 15:00:41 +0000

A common lesson from a children’s story book has become one of the guiding principles for investing: “Don’t put all your eggs in one basket.” But lately, I’ve come across a few articles where people are questioning the wisdom of diversification. Today, we are going to ask the question – could you make more money investing if you did not diversify?

But, first here’s a quick definition of diversification: “to spread out your investments amongst different types of funds”.

Photo via Wikimedia Commons

The Theoretical Answer

Theoretically, you can make more money (investing or otherwise) if you do not diversify. Let’s say, for example, there are three mutual funds.

Fund #1 increases 15% over the year.
Fund #2 increases 20% over the year.
Fund #3 increases 10% over the year.

Theoretically, you would make more money IF all of your money was in fund number #2 instead of a third in each fund. Having a third in each fund would only yield a 15% return, while fund #2 yielded a 20% return.

Diversification and Risk

So, why should you diversify your investment portfolio? But that’s a big IF, and in real life, we also have to deal with WHEN.

One thing every new investor must know is that risk and reward have an inseparable relationship. You cannot get one without the other. In other words, if you want to increase your return, you must be willing to increase your risk. Conversely, if you want less risk, you will need to sacrifice your potential for gains.

I believe this one investing lesson could save investors millions of dollars annually. Those who seek to get rich quick by investing in something with unrealistic gains usually end up losing everything.

Two Reasons Why You Should Diversify Your Investments

The long term results are better

The turtle still wins. Anyone who makes a big killing off a single stock will rarely walk away unscathed. They will often reenter the market with another gamble and eventually the risk will catch up.

Take the slow, steady, and diversified approach. It is better to slowly get to a million dollars than risk everything to get to ten million.

Emotional security

Not being diversified can be emotionally wearing. When you are diversified, there is probably something going up when everything else is going down. At least there is something holding its ground better than others.

Diversification has a built in ‘plan B’ in case you were wrong.

Sometimes, emotional security is more valuable than financial gain.

The Danger of Going All In: Investing Without Diversification

When I was a kid, I used to love to play the game Stock Ticker (yes, yes, I still love it). In the game, the market is controlled by the roll of the dice. The dice dictate which shares will decrease in value and which will increase in value. If a share drops below the zero line, you lose everything.

The game really doesn’t have an ending, so we usually just say we are going to total up the value of your shares in x # of minutes.

The winner of the game is almost always the person who will sell all of their other shares and buy all the cheapest share. If in those last rounds that share goes up, you have significantly increased your value. If, however, it goes down, you will lose everything.

The person who risks everything in Stock Ticker either finishes first or last.

Going all in on an investment means you risk everything. I’m sure there is someone who has made a lot of money by investing everything in one stock. There are probably thousands of people like that. They went against conventional wisdom and the payoff was huge.

That’s why investors today think they can do it, too.

However, we also need to realize that for every success story, there are 10 people who lost everything by going all in on a stock they just knew was going to succeed.

The risk of investing without diversification is too much.

What do you think…does investment portfolio diversification still work?

How to File a Federal Tax Extension

Miranda Marquit (Staff Writer) — Thu, 11 Mar 2010 15:00:45 +0000

April 15 looms on the horizon. There may be any number of reasons that you are not prepared to file a tax return, from not having your dividend statements back, to waiting to get a home buyer tax credit, to straightforward procrastination. No matter your reasons, you can actually file for an extension. Any taxpayer is eligible to get a six month extension for filing a tax return. You have to file for the extension by April 15, and then you will have until October 15 to get your documentation together and file your actual return.

Photo by alancleaver_2000 via Flickr

Filing an extension is a good idea if you don’t think you’ll be able to get your return together by April 15. The penalty for a “failure to file” can be quite hefty. As long as you file your extension paperwork — it’s only on page! — by April 15, you can avoid this penalty.

You still have to pay what you owe by April 15!

Be warned, though, that filing for an extension doesn’t get you another six months to actually pay your taxes. You are required to estimate how much you owe, and submit payment by April 15. The IRS starts charging interest from April 16, so it’s a good idea to pay something. Any tax refund you are entitled to will, as you might have guessed, be mailed to you after you file your return in October.

Filing Your Tax Extension

It is fairly easy to file a tax extension these days. You just need to fill out Form 4868.

If you use tax preparation software, like Tax Cut or TurboTax, it’s easy to file your tax extension. These programs have the appropriate forms, and the ability to allow you to send in the form electronically, or print out your completed form and then mail it in. If you have a professional prepare your taxes, he or she can usually file your tax extension electronically on your behalf.

Even without tax preparation software, you can still file your Form 4868 electronically using the fillable forms from the IRS. Just fill in your form online, and then submit it using approved methods directly from the IRS web site. In many cases, it is free to file your federal tax extension, and it only takes a few minutes.

If you are more old school, it is possible to file for a tax extension using paper methods. Many post offices, community government buildings and libraries offer tax form packets, and you can pick them up for free. Additionally, you can download Form 4868 and then fill it out and mail it in. You can also obtain the proper form by calling 1-800-TAX-FORM (829-3676).

The nice thing about filing a tax extension is that it doesn’t prevent you from filing your return electronically. In six months, when you are ready to file your tax return, you can do so over the Internet. This is a definite step above filing an amended return, which can only be done via paper. This can cause delays in processing and receiving your refund. With an electronically filed extension and return, you will get your refund — if you have one coming — faster.

Once your tax extension is filed, the clock is ticking until October 15. If you have been procrastinating, now is the time to get into gear and start doing what you can to get your documentation together.

11 Money Saving Tips for Parents with Babies

Craig Ford (Staff Writer) — Tue, 09 Mar 2010 15:00:45 +0000

When it comes to money saving ideas, some people go way out of their way to save a dime while others casually use products that cost hundreds of dollars. For example, is it worth drying a piece of Saran wrap? Some folks (mostly from a previous generation) would put the wrap on the window to dry just to save a few cents. Because most people overspend on babies, I collected some money saving tips for parents with babies to share with you.

The thing is that some of these ideas are genius, and others are simply a waste of time. For the frugal minded parents, many of these will be genius ideas. For the rest, they’ll probably sound like a complete waste of time. Which is right? I’ll let you decide.

At the end of the day, what is most important is that both the husband and wife agree that the effort is worth the reward. Otherwise, you’ll end up with some more marriage and money problems.

Photo by gabi_menashe via Flickr.

11 Money Saving Ideas For Babies

1. Cloth diapers instead of disposables

Yes, it is nasty. My counterparts in North America have told me there are ways to avoid the whole hand in the toilet thing, but we do it the old fashioned way. Fortunately, you can become numb to the nastiness.

My vote: Disposables are for wimps. Cloth is worth the savings.

2. Breast Feeding instead of Formula

Hey, I’m not going to say a lot about this one because I know this topic deals with a lot more than just money. There are discussions about health and the mother’s schedule that I really don’t want to get into. But, in term of cost savings, this is one of the best ways to save a lot of money.

My vote: Why buy what God has already given?

3. Laundry basket instead of a bassinet

My daughter slept for about two weeks in a laundry basket. Fortunately, we didn’t buy a bassinet — there was a bassinet in part of our Pack N Play. However, if someone were going to buy an actual bassinet, I’d say just use a laundry basket.

My vote: Surely kids could survive a few week/months in a laundry basket — go for it.

4. DIY baby wipes

You can make your own inexpensive wipes by soaking small paper napkins or double-ply toilet tissue in a shallow bowl of baby oil. Once the oil is absorbed, put it in a Ziploc bag or plastic container. We actually make our own wipes, mostly because they are sometimes hard to find and often expensive. We just cut strips of cloth and keep them moist with water.

My vote: The idea of making your own wipes doesn’t seem like the most effective money saving idea. I’d use store bought wipes combined with the ‘strategy’ in #5.

5. Use toilet paper instead of (in addition to) wipes.

I think round one cleaning should be done with regular toilet paper. To get a thorough clean, finish up with a wipe.

My vote: If it’s good enough for me, it’s good enough for them.

6. Use tape to mend cloth diaper covers/plastic pants.

We’ve never done this. The covers we find in town are about $2, so there is not much point in repairing them. If we had more expensive covers I wouldn’t be surprised if one of my kiddos had to crawl around patched with tape.

My vote: Use the tape and then put shorts on the kid. No one will ever know.

7. During the first few months, dress kids in the opposite gender clothes.

If you were smart, you would have bought gender neutral clothes the first time around. However, the question is, would you put a pink onesie on a one month old baby boy? I think we ran out of clothes once and that was all that was left for my son. It had been a long time since I cried as a grown man.

My vote: Please don’t ever make me look at my son in pink again. In life or death situations that is fine, but not a good game plan. Buy gender neutral the first time around.

8. DIY diaper cream.

You can crush an antacid tablet (like Tums) and mix it with petroleum jelly to make your own diaper cream. Here’s one of those jobs I don’t think is worth the time. We actually have a ton of diaper cream around our house so the idea of becoming a scientist and experimenting with diaper creams doesn’t sound appealing.

My vote: Squeeze and go. Leave the diaper cream to the professionals.

9. Make your own baby food.

Did it. My wife would cook up some vegetables, puree the food, put them in ice trays and freeze it. All we would need to do is pull out a cube and melt it for a meal. But, that was then. I guess having three kids 4 and under doesn’t leave my wife with a lot of time to puree food for the baby. Sorry, baby #3 you’re going to be a Gerber baby.

My vote: A healthy alternative, but a lot of work. Tough call.

10. A simple diaper pail with lid instead of high tech diaper pail

Diaper pails can get expensive. Deodorizers. Replacement bags. Plus the actual cost of the diaper pail. We opted with a pail that had a flip top lid and a small compartment for a deodorizer. I think it was about $10. Anyways, we love it because we used it for disposable diapers and then cloth when we made the switch. Sometimes we just stick some old Bounce pads into the deodorizer compartment.

My vote: Simple and cheap — a frugal idea worth trying. Give me a diaper pail that doesn’t require instructions.

11. Use an old T-shirt as a bib for baby.

Never done this one.

My vote: Seems like a good idea to me.

Now, I’ll let you decide if these ideas are frugal or cheap? Do you have any other money saving tips for parents of young kids?

File a Tax Extension Instead of an Amended Return

Miranda Marquit (Staff Writer) — Mon, 08 Mar 2010 15:00:21 +0000

As April 15 inches closer, many are beginning to get their tax documents together and prepare to file their tax returns. However, there are many who don’t have all their tax documents by the requisite time, or who want a little extra time to make some savvy tax moves for their 2009 returns. In such cases, it can be tempting to file anyway, and then file an amended return later. This may not be the best choice, though. Instead, consider filing for an extension.

Photo by blmurch via Flickr

Advantages of a tax return filing extension

Anyone can file for an extension of six months on their tax return, meaning that you have until October 15 to file your tax return. You still have to make an estimated payment, though, by April 15 on what you think you will ultimately owe. If you don’t, the IRS will start charging you interest, and if you underpay by more than 10%, there are additional penalties. Even with this, though, there are advantages to filing for an extension.

An extension can be filed easily — and electronically. All you need to do is submit Form 4868 (it’s only a page long) by April 15. When it comes time to file your return, you can do that electronically as well. However, when you file an amended return, it has to be done on paper. Your paper amended return takes longer to process, and is more likely to be audited than an extension. Instead of filing your return with missing documents, and then amending later, it is usually easier to get an extension. Then you have plenty of time to work on your complicated tax return, and get all the necessary documents together.

Who can benefit from filing an extension

Those who are most likely to benefit from an extension are those who want to take advantage of special tax credits and deductions. Those taking advantage of the home buyer tax credit can actually apply purchases made this year to their 2009 taxes. So, if you have a contract by May 1, and you close before July 1, you can put your credit toward your 2009 tax liability — if you would rather do that than put it on your 2010 taxes.

Another way to take advantage of the extension is for those who are converting to a Roth IRA, and want to use the option to reverse their conversions by October 15. It can also be helpful for those who are opening traditional IRA and want to take the deduction on 2009 taxes. And, of course, if you haven’t got your dividend statements or K-1 forms in time to include in a return by April 15, filing an extension can simplify matters.

You do need to be careful, though, if you are involved with offshore accounts. Those with signature power have to file a special form by June 30. There is no filing extension attached to this, since its a non-IRS Treasury form.

If you have a complex tax return, or if you are planning on taking advantage of moves that can reduce you 2009 tax liability, you might be better off to file for an extension while you consider your tax checklist. (Just remember that you still have to pay your taxes by April 15.) It doesn’t take much time, and a tax professional can help you decide if its a good idea in your specific situation.

How to Get In Shape and Save Money

Griff Hanning — Thu, 04 Mar 2010 15:00:28 +0000

Tired of spending money on things you don’t use or get very little results out of? I’m referring to your gym membership. Don’t get me wrong, I’m a big fan of gyms and love going to them, but when they cost an average of $33 per person per month, it comes down to a combined $792 for my wife and I to attend — and I gladly say, “No, thanks.”

If you are like me, you consider your physical health something that is important and worth taking care of. Staying fit and healthy is the best way to keep from getting sick or simply becoming unhappy with yourself. But why pay a fortune in order to do it?

Photo by Ernst Moeksis via Flickr

Last year, my wife and I ditched our gym membership and spent a total of $50 on a few different products to help us stay in shape (We love creative money saving tips!). There are plenty of things you can do in order to accomplish this, but here are my suggestions.

At Home Workout Videos

My wife loves the new Jillian Michaels videos. Jillian is hardcore! (If you are unfamiliar with who I am talking about, she is one of the trainers on the show “The Biggest Loser”). There are different workouts that you can choose from. If my wife only has thirty minutes, then she will do three 10-minute workouts, but if she has a whole hour, she will do all six.

This is nice because of the flexibility. It also cuts down on the amount of time and fuel driving to and from a gym. The Jillian videos are only about $10 each and can be found at any store like Walmart or Target.

Where else can you find great workout videos? Try Youtube.com. There’s an array of free selections on Youtube. They may be little teasers to try and sell you something else, but hey, just stick with the free stuff. Find videos you like the most and save them to your browser to pull up later.

Get an Iron Gym Set

I’m not talking about a big workout stations with weights and pulleys that costs a few thousand dollars, I’m talking about a simple tool that only cost $30 — the Iron Gym. You have probably seen them in commercials or late-night infomercials. They are the contraptions that hang on any interior door frame and allow you to do pull-ups for your back and biceps, and leg lifts to work your stomach muscles. You can also easily remove it and put it on the ground to do push-ups on.

Whoever invented the Iron Gym deserves a metal, in my opinion. It has helped me stay in shape and save hundreds of dollars in the process. It’s a thing of beauty.

Run outside

I don’t care how cold it is, you can bundle up and make it around the block just fine! Running outside is super healthy and much more fun than going around and around inside a building.

Use things around your house

So, let’s say that it really is too cold to go outside. Use things like stairs and chairs to get a good workout.

You can run up and down the stairs and feel pretty exhausted after about ten times. To motivate my wife to push herself, she will empty a bowl of candy at the bottom of the stairs. Then, every trip down she will grab a piece and bring it back up to put in in the bowl. This ensures that she will not quit until all of the candy is put back in place. Figure out what motivates you to run stairs and you’ll probably find it to be one of the best workouts you have ever experienced.

You can also use chairs for doing dips. Sometimes I set two chairs side by side with about 18 inches in between them. Then I set one hand on each chair, prop my feet up on another chair, and dip up and down in between them. This works the chest and triceps really well.

Schedule your workouts

You will see a lot more progress when you schedule your workouts and set goals before hand. Keep a calendar or chart to track how you are doing. This is extremely helpful.

If you are fine with paying $792 to get in shape and stay healthy, that’s fine by me. But if you are more inclined to spending $50 and putting the other $742 into your savings or your retirement fund, I’d highly recommend it.

Good luck getting in shape for less!

How to Make Money Short Selling Stocks

Stephan P. Klien — Wed, 03 Mar 2010 15:00:18 +0000

Short selling is a strategy used to profit from stocks that are overvalued. As a short seller, you would borrow — remember, borrow, and not buy — the stock of a company that you think is overvalued and will fall in the near future. You then sell the borrowed stock in the market and wait for the price of the stock to fall to a level, which you think is the fair value of the stock. If the price falls to the level you expected, you buy back the stock from the market and return the borrowed shares to the broker. The difference between the selling price and the price at which you buy back the stock is your profit, less the fee charged by your broker to lend you the stock. So, you have profited from a stock without actually owning it.

How Exactly Does Short Selling Work?

As an example, you think that a certain company’s stock, which is currently trading at $20, is overvalued. You expect the price to drop in the next 3 months. The next thing you do is, call your broker and borrow 100 shares of that company and sell it in the market. The proceeds of the sale, $2,000, are credited to your trading account with your broker. Now, you wait for the price to drop to a level where you can make the maximum profit.

For example, the price of the company’s stock falls to $15 after two months. You think that the price will not fall below this level, you buy the stock back, which is also known as covering your position. You pay $1,500 in the market to buy back 100 shares of the company and return it to your broker. There it is! You have made a profit of $500, minus the fee charged by the broker to lend you the stock, without actually owning the stock.

You can borrow the stock for as long as you want, but this is not advisable for two reasons; you will have to pay a higher cost for borrowing, and since you do not own the stock, the broker may ask for it back any time, which will force you to cover your position sooner than you wanted. So, unless you are sure that price will fall to a level where you can profit in a short period, do not go short. Additionally, you are also not entitled to receive any dividend payments made in the period you short the stock, since you are not the owner of the stock.

Short Selling Risks

The major risk you face as a short seller is if the price of the stock does not fall to the level where you can profit from it for a long time, or if the price increases. Take the previous example where you expect the price to drop in 3 months. However, the price level increases to $25 after 3 months. Now, if your broker asks you to return the borrowed stock, you will make a loss of $500.

Remember, the profits from short selling are limited, as the price of a stock cannot fall below zero. However, you can make unlimited losses on your position because there is no limit to which the price of a stock can rise. So, you need to be completely convinced that the stock is overvalued, and that the price will fall within a short period of time.

Best CD Rates (Certificate of Deposit Rates), March 2010

Pinyo — Tue, 02 Mar 2010 15:30:28 +0000

The following is a list of the nationally available highest yields 12-month CD rates. In general, certificates of deposit (CDs) are great investments because your principal is protected by FDIC insurance and your interest rates are guaranteed. Moreover, you can use CD Ladder to make your CD savings more flexible and effective. You can open certificates of deposit at your local bank, but with a little more effort you can secure the best rates through online banks.

As of 3/12/2010, the highest yield CDs are:

Bank	Rate (APY)	Min Deposit	Details
Discover Bank CD	1.60%	$2,500	Choose terms from 6 months (1.00% APY) to 24 months (2.15% APY).
Ally Bank High-Yield CDs	1.57%	$0	Open with $0, No monthly fees, Daily compounded interest for maximum earnings, Automatic renewal at maturity, Ability to withdraw and receive earned interest as income — just let us know before the CD maturity date or by ten days after. Ten-Day Best Rate Guarantee to new and renewing CDs.
EverBank Yield Pledge Certificates of Deposit	1.49%	$1,500	Choose terms from 3 months (0.75% APY) to 5 years (3.37% APY), Low minimum of $1,500 to open your CD
Citibank CDs	0.80%	$500

Bank Rates Search Tool

Additionally, you can use the following bank rates tool from MoneyRates.com to find the right banking product for your need.

Alternative Savings And Investment Options

In addition to high yield savings accounts, there are other alternatives that may work for you.

Lending Club (average 9.65% APY*)

Lending Club is a social lending network where you can invest in individual loans with as little as $25. The specific interest rate depends on the quality of loan you are investing in. Currently, the average return on investment is 9.65% APY. To learn more about peer lending, please read Introduction to Peer-to-Peer Lending.

* IMPORTANT: Please note that there are special risks associated with social lending.

Please review information associated with each offer before you sign up. Rates and conditions change constantly and I have reported what I believe to be the most accurate information at the time the article was updated.

Should You Add Accident Forgiveness to Your Auto Policy?

Miranda Marquit (Staff Writer) — Tue, 02 Mar 2010 15:00:52 +0000

When it comes to insurance, it’s all about reducing risks. The whole point of insurance is to help you hedge against the risk that unexpected events could financially devastate you — or at least cost you a great deal more than you would like to pay. If you have an auto insurance policy, you might find that it offers another risk-reducing feature: accident forgiveness.

Photo by cdaltonrowe via Flickr

What is accident forgiveness?

Accident forgiveness is a feature on some policies that allows you to have an at-fault accident without experiencing a premium increase. Some policies will even let you have more than one at-fault accident without a premium increase. Since it is common practice to hike insurance premiums by up to 40% after an at-fault accident, this auto policy feature can seem like a good idea to help you save money in the long term.

However, as you might guess, this sort feature does come with a cost. Most insurance companies aren’t just going to give you a free pass if you become a higher risk to them. Adding accident forgiveness to your auto insurance policy is probably going to cost you a little more up front. You’ll see a premium increase anyway, although it might be lower than the increase you’d get if you actually caused an accident.

Realize, too, that not everyone is eligible for accident forgiveness. There might be a requirement to be a customer for a minimum amount of time before accessing the feature. In some cases, you have to show a driving record free of moving violations and accidents for a certain number of years, usually three or five. You will need to find out what sorts of restrictions are on the accident forgiveness feature as well, if you are considering adding it to your policy. You might be surprised at what you find.

Who can benefit from accident forgiveness?

Due to costs and restrictions, accident forgiveness isn’t for everyone. Indeed, if you have a good driving record, and you are a careful driver, not likely to be at-fault for an accident, you might find that accident forgiveness is unnecessary. Compare the costs of policies with accident forgiveness against a standard policy. If you have a clean record, and are unlikely to run into issues that will affect your policy in the near future, it may not be worth the cost to pay for accident forgiveness.

On the other hand, if your insurance premium is already somewhat high due to problems in the past, it may be worth it to switch to a new policy with accident forgiveness (if you meet eligibility requirements, of course). Another consideration is who might be driving soon. Some parents get accident forgiveness as their teenage children begin to drive. Before you sign up, though, it is a good idea to speak with your insurance agent. In some cases, there is de facto accident forgiveness due to your paying an elevated rate because of the increased risk associated with teen drivers. Before signing up for accident forgiveness, find out what sort of premium increase is expected for the first no-fault accident your teen gets into. Then compare costs based on that.

In the end, it’s up to you to run the numbers and see whether or not accident forgiveness is for you. Shop around, compare policy costs and consider consulting a professional who can help you figure things out.

Best Online High Interest Savings Account Rates, March 2010

Pinyo — Tue, 02 Mar 2010 02:00:52 +0000

The following is a list of top online banks that offers high yield savings account, high interest savings account, or high yield money market account. All of these accounts are FDIC insured up to $250,000. Your principal is protected and you’re guarantee a positive nominal return on investment. For March 2010, the average interest rate on high yield savings accounts remained stable at around 1.0% to 1.5% APY range. New to the list is Discover Bank Online Savings at 1.35% APY.

As of 3/13/2010 the highest yield savings account rates are:

Bank	Interest Rate*	Min. Deposit	Details
EverBank Yield Pledge Money Market Account	1.51%	$1,500	For new customers 2.25% 3-Month Bonus Rate. Low $1,500 initial-deposit requirement. No-fee Online and Mobile Banking. Up to six withdrawals per month.
Discover Bank Online Savings	1.35%	$0	No minimum balance, fast and free online money transfers, and set up automatic transfers from any checking or savings account.
Amercan Express High Yield Savings	1.30%	$0	No minimum balance, and fee-free electronic transfers.
Discover Bank Money Market	1.30%	$10,000	Access anywhere: online, by ATM, by check and with a Discover Card or Discover Debit Card
Ally Bank High Yield Savings	1.29%	$0	Open with $0, no minimum balance. No monthly fees. Daily compounded interest for maximum earnings. Six withdrawals or transfers per statement cycle.
FNBO Direct Online Savings Account	1.25%	$0	No blance minimums. No fees. Manage your account securely online.
WT Direct Savings Account	1.16%	$10,000	No minimum deposit required to open the account. The account earns maximum APY for the first 60 days regardless of the account balance. After the first 60 days, the APY drops to 0.15% APY if the if the balance drops below $10,000.
ING Orange Savings Account	1.10%	$1	No fees. No minimums. Your Orange Savings Account will be automatically linked to your current checking account. Access your account around the clock via ingdirect.com. Open your account online in under 5 minutes.
HSBC Advance Online Savings Account	1.10%	$1	No monthly fees. No matter how much you use our ATMs or how many times you transfer your money, there are no fees. No minimum balance requirement.
Citibank Ultimate Savings	0.90%	$100	No monthly fee. $100 minimum opening deposit. Apply online or by phone.

* Interest rates are expressed as Annual Percentage Yield (APY)

If you are looking for more savings options, I recommend that you try our customizable bank rates search tool to find more banks that offer high interest rate savings account and other banking products for your need.

Alternative Savings And Investment Options

In addition to high yield savings accounts, there are other alternatives that may work for you.

Lending Club (average 9.65% APY*)

Lending Club is a social lending network where you can invest in individual loans with as little as $25. The specific interest rate depends on the quality of loan you are investing in. Currently, the average return on investment is 9.65% APY. To learn more about peer lending, please read Introduction to Peer-to-Peer Lending.

* IMPORTANT: Please note that there are special risks associated with social lending.

SmartyPig (2.01% APY)

SmartyPig is an online piggy bank where you could set up savings goals, and invite family and friends to contribute to your account. While your savings is accumulating, it’s earning a competitive interest rate of 2.01% APY — currently the bast savings rate. Additionally, you could opt for special incentive from participating retailers to get even more from your savings.

Here’s a review of SmartyPig I did in 2008, please note that several things may have changed since.

Save Yourself Account at TD Ameritrade ($100 + 0.50% APY)

Open a new (non-retirement) Save Yourself Account at TD AMERITRADE, make 12 consecutive monthly deposits of $100 or more, and TD AMERITRADE will give you $100. Also, you will receive free online access to Women & Money—the book that launched Suze’s Save Yourself movement.

High Yield Checking Accounts (up to 1.55% APY)

Generally, there are more restriction around high yield checking to be eligible for the best rate. However, it may be worth while if you can meet the requirements. Currently, ING Electric Orange offers a high yield checking account that pays up to 1.55%.

Please visit Best High Yield Online Checking Account Rates for more checking options

savings account rates

9 Job Hunting Tips For Facebook Users

Craig Ford (Staff Writer) — Mon, 01 Mar 2010 15:00:09 +0000

A few weeks ago I received an email. In the email I was asked to give a reference for two individuals who were applying for the same job. That’s not really unusual, right? We’ll, here’s the kicker. (I hope this doesn’t get too complicated …) One of the key decision maker’s daughter and I are friends on Facebook. She found out I that I was friends with both applicants. I suspect there is no way that my friendship with both parties would have ever been known except for Facebook. Three completely different circles of friends were connected by Facebook. The stake was high – a full time job.

Before this incident I had heard that the CEO of a large non-profit always asks to become friends with all potential employees. A few moments scanning those Facebook pages reveals so much about a person’s true character.

Thus, it becomes clear that getting a job is not a matter of luck, there are changes you can make to your Facebook account to increase your chances of getting hired. Before starting you start job hunting, you’ll want to get organized.

Job Hunting Tips for Facebook Users

While it might not be possible to keep a completely professional Facebook profile, each job hunter should be sure that their Facebook account is full of positive information. Facebook provides one of the best places to get a good, concise, and honest look at a person’s character. Expect that a future employer will at least want to have a look at your Facebook profile. If you do become ‘friends’ you’ll want that glance to have a positive impact. If you boss is already your ‘friend’ you’ll want to maintain a more professional profile to avoid a job loss. As a side not this is especially important if you start your own small business. Facebook will become an important networking tool.
Screen your friends or restrict access to types of friends. Ever heard of “six degrees of separation?” It is the idea that through a small handful of people you are connected to the rest of the world. There are some friends who you are embarrassed to say were once your friends. Now, you’ve grown up and moved along, but based on their updates it is clear that they have not. While there is not a direct transference of character, if most of your friends have shady content the obvious assumption is that you also must share the same character. Block such friends. A second option is to use your settings options where you can accept someone’s friend request but restrict their access to your pictures or wall comments. This way a potential employer cannot view your pictures or wall comments. Remember, however, that every level of access you deny may raise a thread of suspicion.
Comment and update as if an employer was reading your updates. There have been far too many times when people leave a status and completely forget that hundreds (or thousands) of other people read their status. Sometimes we just want to vent if we’ve had a horrible day. Facebook frequently becomes that venue. Avoid the temptation to bear your soul on Facebook. You never know who is watching.
Facebook is often seen as a true reflection of your character while the interview is just the person you hope to present. I’m not encouraging you to become something fabricated on Facebook, but be guarded with your content just like you would be in person.
Use Facebook to make a personal contact within a company. Suggested update: “I have a job interview at ____. Anyone know someone who works there?” If you can find a personal contact who will vouch for you, your resume is much more likely to get a second look.
Use Facebook to do research on your potential employer (either the company or the individual) before your first interview. I know a person from Houston who flew up to Cheyenne, Wyoming for a job interview. Wednesday night, before his interview, he went to church and actually met the person who was going to be interviewing him the next day. I know both parties and could have given the interviewer a heads up had I known he was going up for the interview. Update suggestion: “I’m heading up to ____________ (city) for an interview with ____________(company). Anyone know anything about the company?”
Review your Facebook settings page. From your settings page you can adjust access and set privacy restrictions. Probably the biggest decision is about ‘networks’. If you are part of a network it is possible that everyone in that network can access your information – not just your friends. Visit the settings page and customize it according to your preferences. In addition, you could use Facebook to create groups (like professional contacts) and allow each group to see only parts of your information.
Decide on your main purpose with Facebook. Some try to use Facebook for too many purposes. They want to network for business relationships. They want to catch up with old friends. They want a way to feel connected to present day friends. Some use Facebook as an online ‘private’ journal. The problem is these divergent goals might conflict with each other. If, for example, you use Facebook just to catch up with old friends you can decline a potential employer’s request explaining you only use it to keep in touch with old friends.
You’ll want to position yourself in such a way that once you do become friends with a potential employer you can use that Facebook connection to advance in the organization. Facebook can be leveraged for business purposes.

Have any of you used Facebook to help land a job? What other job hunting tips would you suggest? Is it fair that nothing is sacred any more – not even Facebook?

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