While most people are reconsidering the issue of debt, many do not know the difference between good debt and bad debt. Debt has a negative connotation to it – most personal finance bloggers boast that they are debt-free. However, it is common knowledge that sophisticated investors welcome a healthy debt ratio. After all, leveraging a small amount of cash to make a large, calculated investment will deliver outsized returns relative to your initial equity input.

As a rule, good debt is money that is borrowed for investments that will offer a return, create additional income, or generally increase your net worth and financial security. Bad debt is money that is borrowed for things like material goods that are desired rather than things that are necessary. Often the interest rates on bad debt are higher than the rates on good debt, which in itself should deter Americans from pursuing access to them.

Examples of Good Debt

1. Student Loans

Student loans are often the first debt that people incur and are an investment in yourself and your future earnings. A college or graduate degree, even a prestigious license or certification, can raise your earning power by tens of thousands of dollars per year, resulting in millions over a lifetime. Many low interest college loans are available and some may offer loan “forgiveness” in return for working in certain professions, like teaching, nursing or the military, or working in the public sector for a specified number of years.

The interest on student loans is also tax deductible and those who choose to continue their education after they begin working may be eligible for a lifetime learning tax credit or tuition assistance from their employer. Tax deductible loan interest is one of the hallmarks of good debt. It is a government incentive to borrow money for worthwhile purposes that will offer financial rewards after the loan has been paid.

2. Mortgages

Regardless of where you live, you have to pay for your accommodations. Buying a house is a long term investment that helps people build wealth. Mortgage interest rates are usually low compared to other types of debt and, like student loans, mortgage interest on a primary home is tax deductible. Unlike other purchases, real estate tends to appreciate in value and a home can be sold to help finance retirement. Certain home improvements also net homeowners tax credits which can save a bundle on income taxes.

It is important to have a reasonable down payment and to buy a home that is affordable. Generally the best mortgages are 30 year fixed rate loans, but if you can afford a 15 year mortgage comfortably, consider it. Adjustable rate mortgages often have higher interest rates, balloon payments and homeowners may have to refinance within 2 to 3 years, paying additional points for the new loan. Borrowing too much with too small a down payment or high interest rates can result in an upside down loan where the borrower owes more than the property is worth.

3. Car Loans

Car loans are hard to classify as good or bad debt. If an old car needs constant repairs to keep it running, a new car may actually save you money. If you have to borrow money for a car, consider buying a late model used car instead of a new car, since the initial depreciation on a new car can put car buyers in an upside down loan. A late model used car also usually has lower insurance payments for collision and comprehensive coverage than a brand new car.

Extended warranties are usually not the best investment, but depending on the cost of the warranty, they can save money on major auto repairs. Some dealerships offer extended warranties on certified pre owned cars and they are also available through private companies. Make a reasonable down payment when financing a car to avoid owing more than the car is worth if it is totaled in a loss covered by collision or comprehensive insurance. The insurance company only pays the value of the car, not the amount of the loan.

Finally, the absolute best way to buy a new car is if you take advantage of 0% of .9% interest rates offered by car manufacturers. If you can buy a car without paying any interest for the next 5 years, make sure to include your interest cost savings when considering which make and model to purchase.

4. Medical Bills

Another gray area, loans to cover medical bills are not really a choice. While medical debt is responsible for more than half of all personal bankruptcies, providing life-saving treatment for a loved one is more important than money. Although medical bills, not covered by insurance, that exceed 7% of your yearly income may be tax deductible, the interest on loans to pay these bills is not. Medical care for loved ones is a priority and medical debt is always acceptable.

5. Business Loans

If a business loan is likely to grow your business, it should be considered good debt. Starting a new business or expanding an existing one is always risky, so before taking out a loan be sure to do your homework to insure your plan for your business is likely to be successful. The amount of interest on business loans varies and depends on how good your credit score is, the debt to income ratio, and your company’s cashflow. Interest on business loans may be tax deductible as a business expense, but this depends on the structure of your business. To start off small, you may want to consider the best ways to make money from home before diving into a full-scale commercial venture.

Examples of Bad Debt

1. Payday Loans

Some states have taken steps to outlaw or severely restrict payday loans because these short term loans have extremely high interest. Borrowing money on a payday loan often leads to borrowing more money each pay period. This can mean chronic high interest debt and may meaningfully reduce your disposable income. Payday loans are a bad idea unless you are certain you can pay off the loan in full on the due date without having to borrow more money to get through the next pay period.

2. Credit Card Debt

Another type of high interest debt, credit card debt is usually considered bad debt, at least if you are carrying a long-term balance. If you use a credit card and pay the full amount every month, or if you only use the credit card for specific, necessary purchases with a plan to pay it off in a limited time period, this debt can be acceptable. Using credit cards to pay for things you do not need like electronics, jewelry or a vacation will almost always lead you to overpay for your purchases. The average American has more than $10,000 in credit card debt, with interest rates of between 10% and 29.99% and making minimum payments often only covers the interest on these loans.

3. Borrowing From Retirement Plans

Borrowing from retirement plans is expensive since you may face substantial tax penalties for early withdrawal. You may also face penalties, like a loss of quarterly interest, from savings institutions. You can withdraw money to make a down payment on a home, but it must be paid back within five years or penalties apply. Not only that, but you have to pay income taxes on the money when it is withdrawn early and pay taxes again when the money is withdrawn during retirement. Since you will not be able to borrow to fund your retirement, it is best not to take money from retirement accounts unless absolutely necessary. Tax penalties may not apply to Roth IRAs and 401(k)s since they are paid from after tax income.

Having manageable debt is a fact of life, but if your debt becomes unmanageable and burdensome to your comfortable lifestyle, it can affect everything from your personal relationships to your health. Avoiding bad debt altogether and paying off good debt as quickly as possible can help anyone build financial stability and a secure future. Next time you are considering taking on any type of debt, ask yourself if this financial transaction will further your financial goals and provide you and your family with a better life?

This article is a guest post from Gary Dek, a finance blogger who writes about investing, making money, saving, credit/debt, real estate, and career and education advice at Gajizmo.com. Gary has worked at an internet company on their M&A team, as well as investment banking and private equity firms in California. He graduated with a degree in financial analysis and valuation and entrepreneurship.
 

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Medigap operates as a form of supplemental insurance to Medicare. On its own, Medicare leaves gaps in coverage, causing the benefactors to pay copayments and deductibles out-of-pocket. These charges and fees can become quite costly over time. For this reason, Medigap was created to cover those extra expenses.

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This additional insurance can greatly reduce your medical expenses, so what’s the catch?

Medigap policies are all standardized by the federal government. This means that if an insurance company offers “Plan A,” and a different insurance company offers their “Plan A,” then they both offer the exact same coverage and benefits; the plans do not change from company to company. What does change however, is price.

This is critical when deciding if Medigap is the right route to take, because private insurance companies are allowed to price their rates however they want. Certain determinants can be based on tobacco use, gender, health history, previous insurance claims, and so on.

On the surface, the initial instinct of most Medigap buyers is to purchase the plan they want that has the lowest premium. However, that’s not an easy criteria to pinpoint since different insurance companies can determine how they price their premiums. While some companies may have lower premiums initially, these can rise greatly. There are three different ways to do this: community, issue-age, and attained-age ratings.

Community Rated

Under this rating system, all people are charged the same rate regardless of their age or gender. This means that a 67 year old will pay the same monthly premium as someone who is 80. These premiums are usually set based on the average age of policyholders. For this reason, premiums are usually higher for younger seniors and lower for older enrollees.

Issue-Age Rated

This rating is determined based upon the person’s age when the plan was issued. For example, two people sign up for Medigap at the same insurance company on the same day. One person is 67 years old and the other is 70. The 70 year old will pay a higher monthly premium than the 67 year old. This however does not change with time, so when the 70 year old turns 77, they will still be paying the monthly premium they were at age 70. This is usually the best pricing to enroll in for younger seniors.

Attained-Age Rated

This rating increases with the individual’s age. For example, the 67 year old who signs up under this pricing system will pay a higher premium when they turn 70.

Attained-age ratings is why it is so important to determine the pricings financially. Historically, attained-age ratings are the most inexpensive in the first years, but can increase significantly as time goes on.

For this reason community ratings are the most suitable to older candidates, who want to be priced fairly; issue-age is best for younger seniors; and attained-age is much more dependent on income and when you sign up.

Keep these pricings in mind when deciding a Medigap policy. The most inexpensive monthly premium is not always the most inexpensive choice.

Derek Nahigyan is the content writer for MedicareSupplement.com.
 

Copyright secured by Digiprove © 2013 Mitch Mitchell

Homeowners around the nation are always fretting about the next property disaster they could possibly encounter. While it’s true that many situations are out of the owner’s control, it’s also safe to say that many of the problems are at least somewhat preventable. Oftentimes this prevention requires narrow and direct focus, but hey, when thousands and thousands of dollars are involved it’s probably worth it.

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Below I list some expensive property concerns that homeowners can potentially avoid, and how to go about it. The particular situation will vary from person to person and house to house, but these ideas are meant to inspire discussion and action. If you are a homeowner or prospective homebuyer, they may come in handy down the road.

1. Sewer line.

You can imagine how terrible and expensive sewer problems can be. However, there are signs to look for early on that might prevent a complete replacement. A total revamp of a main sewer line can cost upwards of $5,000, and can be even more if the road in front of the house has to be ripped up to make the replacement possible. Look for the following indicators of sewer issues:

- Clogged basement drains: Due to these drains usually being the lowest point of direct contact with the main sewer line, any issue with them can be indicative of a bigger problem throughout the system.

- Leaky or cracked walls/foundation: Any water damage is a serious concern, but is even more detrimental when a main sewer line is involved. Visible cracks are easy to spot, and much simpler to deal with the earlier they’re noticed.

- Any large trees near major sewer line: Tree roots can grow through sewer lines and cause irreplaceable damage. Consider taking note of a property’s landscape before and during residency. Misplaced or overgrown trees can have a surprisingly obtrusive impact on sewer operations.

Sewer lines can cost a ton to fix. Total replacements can be prevented by having a plumber run a camera through your line and then using a high water pressure machine to blow out any obstructive objects. Sewer line inspections are particularly important if you are a prospective homeowner taking over a new house. Make sure to get it checked out before you agree to purchase.

2. Foundation.

The foundation is not only the physical skeleton of real estate, but it also represents a huge financial groundwork. If you own a house or are looking at a house with foundational issues, you better know how to write a check or swipe a credit card for serious amounts of money. Problems with the foundation will at best cost thousands and at worst compromise the total value of the structure. Some signs to look for:

- Severe cracks in the structure: Most foundations will have cracks, but it’s critical to take note if there are sections or areas that have more significant ones. These could be a sign that pressure and or design is uneven.

- Leaning: If the top of a house is leaning at allover the base, there could be serious trouble. Take note and seek a professional’s advice. Tilting floor can also be an indicator of something huge when foundation is concerned.

The base of your house or a prospective home is the groundwork that the entire structure is founded upon. There’s a reason that it’s expensive to fix and even more of a reason why it’s important to take care of and troubleshoot throughout the years. A large-scale foundation renovation can be somewhat prevented by regular professional upkeep and increased awareness.

3. Roof.

The roof of a home provides the shelter and insulation that people need to live comfortably. Due to the extreme nature of Earth’s weather, the standard roof is exposed to some serious elements. This exposure naturally creates wear and damage. However, the impact that the particular damage has can be mitigated by regular maintenance. Issues to notice:

- Leaky roof: If you have constant water drips, it’s a sign of something.

- Extensive water damage: If there are sections in your ceilings that appear to have puffy or sprawling water damage, get on the phone and get a professional in there.

- Worn shingles: Shingles are meant to help water navigate down and eventually off your roof. If they are worn down to the nail, the moisture and liquid will begin to seep in to the actual structure. This can create the above problems, along with other damage.

Major housing renovations are tough on anyone’s wallet, and it’s important to keep an eye out for any issues that are even somewhat preventable. It can go a long way to be on top of problems before they become irreversible.

Griff Haeger loves peanut butter and fixing things. When he’s not teaching his neighbor how to use a ladder, he writes about air conditioning equipment.
 

Copyright secured by Digiprove © 2013 Mitch Mitchell

It’s everyone’s dream to win a huge jackpot that will help you to pay off your house or maybe even set you up for life. While big wins like these are rare, it is more possible that you could win a couple thousand dollars playing the slots in Vegas or hitting a few numbers in the Powerball. Whether you win millions or you win thousands (or even hundreds), it’s important for you to have a plan for managing your money so you don’t end up burning through it in the first couple of weeks (or couple of years) and end up where you were before or worse.

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Here are a few tips for managing money you’ve won to make sure that you get the most benefit from it:

Talk to a Financial Advisor

If you’ve won a large amount of money — more than $10,000 or so — it’s best that you talk to a financial advisor before you do anything else. A financial advisor can review your financial situation and talk to you about your goals to determine where you can make the biggest impact with your money. A financial advisor can also give you feedback about your tax obligations, including how donations to charitable organizations or gifts to family members would impact your (or their) taxes.

Set a Budget and Goals

It may be tempting to rush right out and buy a new computer or a new car or new clothes or any dozens of other things, but it is important to first assess your financial situation and to create goals for the money. Create a few goals for yourself — such as paying off certain debts or buying certain big-ticket items that you have had your eye on for awhile — and then create a budget based on priorities for those goals.

You may not have enough money to take care of all your goals, but you can divide it up to make a dent in each of them. The budget will help you stay on track.

Pay Off Debts

Winning money is very exciting, but don’t let it distract you from your financial goals. Paying off debts should always be a priority for you since debts can have a cumulative negative effect on your finances and can be a constant drain. Unless your winnings are very small — like $20 small — you can use a portion of them to pay off or pay down your debts.

Though you may feel like paying off debts isn’t the “fun” thing to do with your winnings, if you pay down your debt, you will free up more of your income and give yourself the financial freedom to buy more of the things you want. Having financial freedom is much more “fun” in the long run.

How you handle winning money will depend in large part on how much you win. Obviously, if you win a big jackpot, you will also need to talk with a legal advisor, set up accounts to safeguard your assets, and work to protect your anonymity, amongst other concerns. However, following these tips can give you a good base for managing any amount of money you are fortunate to win. Make sure you work the situation to your advantage and don’t just get carried away by spending.

Kelly Opferman is a seasoned writer who at this time focuses on her auto calculator site. Her educational background includes finance, teaching, and economics.

Copyright secured by Digiprove © 2013 Mitch Mitchell

Every once in awhile, you start a small business with little or no capital. Suddenly you find yourself in a position of needing money, yet you’re not sure you could ever pay back a loan.

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There are business grants offered by many entities that might be able to help you through a tough period. Some are totally free, whereas others might have regulations tied to them that you have to meet in order to not have to pay it back.

There are state grants that you can apply for that you don’t have to worry about paying back. Many state grants have attached to them riders such as needing to employ so many people within a certain amount of time, or having to establish a business within a certain area of the state. You will need a product and business plan; you’ll never get a business grant for services except in certain circumstances.

Those circumstances are if you’re a woman or minority owned business. There are more grants for you if you fit within these categories, but there are also more hoops you have to go through to first get the certification, then the grants. Many of the questions might seem invasive, such as a listing of all your jewelry and furniture and its worth, but if you can get beyond that you could find yourself eligible for all sorts of grant money.

There are also grants given to small businesses in certain fields on a yearly basis. Grants of this sort include general business grants, grants for technology, and almost anything related to being “green” will qualify. Also, grants that will create jobs will often qualify.

It’s important to put together a great business plan before going for a grant. Be ready to answer questions about fiscal viability and to have your business knowledge. After all, this will be free money; no one gives it away without a good reason.
 

Copyright secured by Digiprove © 2013 Mitch Mitchell

The business landscape has experienced significant changes the last few years. Technology is being integrated to every facet of companies’ processes, and this has led to favorable business prospects. In line with this growth is the need for upper management to prepare them for any circumstance that may disrupt operations and compromise the company’s status. Business insurance helps secure the stability of business principles, and you can use the guide below to check if you’re ready to drive your company forward.

via FreeDigitalPhotos.net

Assets – The first thing you need to protect is your portfolio of assets, including intangible elements stored in computer systems. Everything you own has an appropriate price, so you need to ensure they are protected at all times.

Cybercrime – Hackers have been consistently making headlines as their ability to attack companies is broadcast for all the world to see. Their processes have become sophisticated, with some operations taking months to plan and play out. Insurance products are available for these types of crimes, and you’ll have access to funds when rebuilding databases and software.

Finances and Stocks – Banks can guarantee protection for the monetary assets you’ve trusted them to keep, but there are instances when they may be forced to close operations, leading to the loss of every deposit you’ve ever made. In addition to protecting the income you’ve earned, business insurance lets you work arrangements for losses attributed to stocks or other transactions.

Equipment – As mentioned, criminals have been working double time to conjure up heists involving company assets. They target warehouses, shops and even bases of operations. The loss of computers, machines and even vehicles can disrupt the operations of certain departments, so you need a way to come up with cash for replacements immediately.

Operations – The heart of a business is the smooth flow of operations, whether it’s manufacturing or producing creative projects.

Business Interruption – Reliable insurance providers are committed to help in supporting companies reach their business goals and target profits. If forecasts are compromised due to unwarranted interruptions, insurance can cover for the potential income, thereby maintaining the steady climb to ideal revenues.

Unreliable Suppliers – Sudden changes that stem from management decisions can cause inconsistency with the spare parts or other services you receive from suppliers. Business insurance can cover for losses sustained as you hunt for other options.

Professional Indemnity – If a client or customer tries to pin down their financial losses to your services, you can rely on professional indemnity insurance as protection after litigation. The verdict will depend on how the court analyses the evidence, so you should ensure that you have financial protection beforehand.

Public Liability – Accidents and injuries directly connected to damages or poor maintenance in your establishment will be investigated by authorities. If your company is eventually required to provide compensation, financial arrangements can then be handled by your business insurance specialist.

Whatever industry you’re in, you will eventually be obligated to ride the wave of dynamic markets and business strategies. Obtaining essential business insurance products sets you apart from the competition, and you can focus on just improving your brand and your product.

Christopher Allen Samson is a writer for several websites including Business Insurance Specialists. His work is focused mainly on business, finance, and economics.
 

Copyright secured by Digiprove © 2013 Mitch Mitchell

I remember when I started working for myself many years ago that I went into it thinking I was going to need the same office supplies that I had in my office at the job. Thus, I purchased, in volume, things such as pens and pencils, staples, notepads, and paper clips, along with a lot of other junk. Just 3 years later I still had almost all of that stuff because, it turned out, very few small or independent businesses need things like that. Sure, it might make sense to buy one of each of those things just in case but buying in bulk as I did… stupid move.

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One of the issues in doing things like that is that it creates debt that doesn’t serve you all that well. Truthfully, 12 years later I still have most of that stuff, and there’s nothing I can do with it other than thinking about throwing it away, and that’s not happening. And yet, every business does have to spend a bit of money before they get going, and be ready to spend other money once things start. This means there will be some debt that has to be incurred, but it doesn’t have to be all bad. These five tips offer business debt advice that’s beneficial and necessary that will do you great good, no matter what your business happens to be.

1. Computers. These days the word “computer” takes on so many more meanings than it did years ago, but whatever you call it or whatever form it manifests, you need some type of electronics of this sort. You need something to help you with your bookkeeping, writing email, creating flyers or sales presentations, save files, etc.

2. Cell or smartphone. You need a way to communicate with your clients because sometimes email just isn’t going to get it done. I didn’t mention a regular office phone because studies show that 40% of the American population doesn’t own a regular phone anymore, and that number is growing. Being able to contact your clients or staff while not being in the office as well as being able to be reached if you’re on the road, enhances your business greatly. And having a smartphone with the right applications on it can allow you to connect your schedules, files, and other things with the “cloud” or even with your computers and laptops.

3. Software. This one is pretty ambiguous and yet it needs to be on the list. So many people try to get by with insufficient software or keeping everything on paper and that’s just not the modern way. Desktop computers, laptops, tablets, etc, all have software you can use for both personal and business purposes. I already mentioned smartphones for business, and applications can be considered as software because many people are able to upload documents and spreadsheets, even Powerpoint applications to their smartphones, and then take those files with them and connect to viewers and projectors or just show the presentations on whatever platform they wish to use.

4. Printer/scanner. No business can get anything done without one of these. In the past one had to purchase each of these separately but it’s smarter to spend a few extra dollars and get a printer and scanner combined. It saves space, often has a port to connect to a phone line to use as a fax machine if you wish to go that route, and they can hold more paper, as well as having the ink last longer because the cartridges are larger. Yes, you can scan things and turn them into electronic files, which makes them easier to store, but sometimes you still have to print things out, such as if you need to sign a contract to send back to someone.

5. Helpful services. This one you don’t have to do right away but at some point very early on you need to think about allowing someone else to handle some of the things you do. In my case I started out by hiring someone to take care of my yard, which is pretty big and often took 3 hours out of my day. Later on I hired an accountant because I realized that even though I could do it, the time it took was overwhelming and I had my own business to concentrate on. Once every 3 or 4 months I have someone come in and do a thorough cleaning of some of the rooms in my house, as I have a home office. All of these saves a lot of time that I can spend trying to make money. And I get to write them all off on my business taxes; nothing wrong with that.
 

Copyright secured by Digiprove © 2013 Mitch Mitchell

Dividends are part of the company’s earnings, paid back to its shareholders, usually in the form of cash. Why does a company do that? Usually, when a company reaches a stable stage, the rate of return that it provides does not beat risk adjusted return available in the market. At this point, re-investing profits in the company does not make sense. Therefore, the company distributes profits to investors in the form of dividend. This is known as a Dividend Reinvestment Plan, or DRIP.

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Whenever a company issues dividends, the company’s cash per share goes down. Consequently, shareholders’ investment in the company reduces as well. Actually, the price of the stock goes down by the same amount as the dividend paid per stock. Many investors might not want that and would like to stay invested. DRIP exists for such investors. So, instead of giving out cash, the company issues more stocks to the shareholders interested in the dividend reinvestment program. This way the total money invested for an investor remains the same while the number of shares held increases.

Companies usually sweeten the deal for DRIP investors by giving them a discount on the market price of the share. So it’s a win-win situation for both investors and the company. Please note that it may result into acquiring partial shares. For example if a company’s share price is $100 per share and company is issuing $10 dividend. In that case the DRIP investors will end up getting a 1/10th additional share for each share held in their account before the issuance of the dividend.

Why Dividend Reinvestment Plan?

Some of the investors may be bullish on the company’s stock. These investors would like to re-invest the cash payout instead of cashing out.. For these investors, DRIP is a convenient option. It lets the investor re-invest the cash given out as dividend.

Also companies like that because this is a good way to maintain the cash level and encourage people to stay as loyal investors. Most of the companies actually offer incentives like discounted prices, no broker commissions to investors to adopt DRIP. Small companies usually tend to offer hefty discounts to its loyal shareholders by offering as high as 20% discount on the share price from the market price.

If you think that the stock with a nice dividend yield is going to rise in the near future, DRIP is a smart option for investment. DRIP is one of the most popular means of investment for a wide variety of long term investors.

What are the Different Types of DRIP?

DRIPs are of two types: traditional and synthetic. Traditional DRIPs allow you to re-invest dividends in the company. Traditional DRIPs are offered by the companies themselves. Whereas, synthetic DRIPs are offered by Brokers. With synthetic DRIPs, you can invest your cash to buy stock in a company that did not pay you the dividends.

How to Check if A Company offers a DRIP?

Most of the established companies on the stock market offer DRIP. You should check out with the “Investor Relations” department of the company to know if it offers DRIP. Most DRIPs require you to be an existing shareholder.

Which Brokers Facilitate DRIPs?

Brokers with DRIPs allow the reinvestment of dividends into additional shares without any additional charges. However, some broker DRIPs do not allow the purchasing of fractional shares. A few of the companies that facilitate DRIPS include: E*TRADE, Vanguard, Schwab and TD Ameritrade.

While these brokers provide DRIPs, it is advised that you should read the Editorial Reviews of Stock Brokers before finalizing on a broker. By reading the reviews, you can know if a particular broker suits your needs.

What Are the Benefits of DRIP?

1. Zero Commission: The major benefit of using DRIP is that you can buy stocks without having to pay broker commission.

2. Dollar-Cost-Averaging: DRIP enables you to take benefit of dollar-cost averaging from your income through the dividends.

3. Discounted Price: Some DRIP offers stock at a discounted price as compared to the market price. Discounts can range from as little as 1% to as much as 10%.

4. Fractional Shares: DRIP allows you to purchase fractional shares. As, the dividend is relatively a small percentage of the share price, it might not be sufficient to buy a whole share. If you do not want to wait and accumulate cash until they become a whole stock, fractional shares are a good option.

What Are the Downsides of DRIPs?

1. Maintain Records: One of the major drawbacks of DRIP is that you have to maintain records of all stocks purchased. These records are needed while calculating the capital gains tax, when you sell your shares. If you regularly buy shares using DRIP, this record keeping can be burdensome.

2. Minimum Share Requirement: With some DRIPs, you must have a minimum number of shares, for you to enjoy the benefits. You should inquire with the company beforehand, concerning the share requirements for enrollment. This way there will be no surprises when the dividend is paid.

DRIPs can be beneficial for investors who are bullish on the company’s stock by re-investing their dividends. However, you should not invest for the sake of investing in a DRIP; rather technical and fundamental analysis should be the driving factors.

Punit Gupta is an entrepreneur and full time stock trader currently developing a brokerage comparison platform.
 

Copyright secured by Digiprove © 2013 Mitch Mitchell

As a personal finance fanatic, you can bet, I follow quite a few different threads about credit scores. One thing I’m incredibly happy to say is that more and more people are talking about their credit scores just about every day. More and more people are starting to become concerned with their credit scores and doing something about it.

I’ve also noticed that there is quite a bit of information being left out of the conversation. Vital information that will help you to improve your credit score faster! Why? Well, it is the concept of earning trust by giving some secrets for free while holding enough back to make consumers want to buy! A great marketing concept that often leaves many scratching their heads! All of that to say, here are a few things that are often left out of DIY credit improvement tutorials…

Things You Will Need To Know To Improve
Your Credit Score Quickly!

Dispute Letter Addresses – One of the first things that you will be told to do in many tutorials is to write a letter to the credit reporting agencies informing them of inaccuracies. However, a key factor is being left out, the addresses that you will need to send the letter to! With that said, here they are:

Experian:

Phone Number – (888) 397 – 3742

Website – www.Experian.com

Address:
P.O. Box 2002
Allen, TX 75013

TransUnion:

Phone Number – (800) 916 – 8800

Website – www.TransUnion.com

Address:
P.O. Box 1000
Chester, PA 19022

Send Disputes To:
TransUnion Consumer Solutions
P.O. Box 2000
Chester, PA 19022-2000

Equifax:
Phone Number – (800) 685 – 1111

Website – www.Equifax.com

Address:
P.O. Box 740241
Atlanta, GA 30374

Send Disputes To:
Equifax Information Services, LLC
P.O. Box 740256
Atlanta,GA 30374
or
CSC Credit Services
PO Box 619054
Dallas, TX 75261-9054

The Average Age Of Your Cards Plays A Role

One factor that is often left out of conversations about credit scores is that the average age of your credit cards plays a role in determining your score. Therefore, many people are under the assumption that if they open a new secured credit card, it’s a good idea to close all of the other cards. Why have them if you have a new, credit building credit card, right? Well, when you close the other accounts, no matter how much of the credit limit you have spent, you will reduce the average age of your revolving accounts. This will definitely be bad for your credit unless all of your maxed accounts are incredibly new themselves.

Be Aggressive When Using Your New Line Of Credit

You are often told that if you open and use a new line of credit, you will see massive improvements in your credit score quickly. However, this isn’t always the case! For instance, if you max out your new card and pay minimum payments, you aren’t doing a thing for your credit score. However, if keep your balance below 50% of your credit limit while aggressively using the card and sending extra payments, your score will grow much quicker. This is because by doing so, you are showing the reporting agencies that you are not only capable of handling your debts, you are actively keeping track of your debts and making more than minimum payments when you feel necessary. Now that shows financial stability!

Final Thoughts

Building your credit score really isn’t all that hard. It’s a fairly simple process that just takes a bit of know how. I hope that the information in this article has inspired you to start to make a difference in your credit score! Thank you for reading and come back the first Wednesday of each month to learn more!

About The Author – Joshua Rodriguez

Hey everyone, thanks for reading my article! I’m Joshua Rodriguez and I’m the proud owner of CNA Finance and an avid freelance personal finance journalist. Another thing I’m very proud of is my relationship with Top Finance Blog so, please keep coming back the first Wednesday of each month to get more great financial tips. If you don’t want to wait for the next post to learn more, feel free to read one of the articles I’ve recently written about credit scores by clicking below! Also, remember to join the conversation on Google+ and facebook!

How To Improve Your Credit Score – A full, step by step guide to improving your credit scores!

How Long Does It Take To Improve Your Credit Scores? – The question you can’t seem to find a straight answer to!

Special thanks to flickr for the featured image!

Copyright secured by Digiprove © 2013 Mitch Mitchell

I don’t always note whenever I reach a milestone, and in this case it might seem a little odd that I’m noting post #799 instead of post #800. I accept guest posts on this blog and, because sometimes I have them way in advance, I’m not always keeping up with the number of posts there are. In this case there’s already a post scheduled after this one that, because I’ve already notified the person that their post will go out on that date, and because I moved another post up, would mean I’d have to wait an extra week so my post would be #800, and that would also mean only one post this week; didn’t want to do that.

LEOL30 via Compfight

The mission of this blog is to tackle financial news, information and commentary. In the last 100 posts there’s been only a little bit of news and a little bit of commentary, and I wrote all of those posts. Overall, most posts are on the topics of insurance, investing and housing; that kind of makes sense. There are also a lot of posts on saving money and budgeting; those are important things for personal finance.

There can always be more but overall the goal has been sustained,and it will continue. This blog will continue accepting guest posts on financial issues, but there has been some changes, most of them not from me. A few more people are reading the guest posting policy; I appreciate that.

However, we’re also receiving more emails from sources asking us to remove links, either from comments or links that were added by the writers as well. Frankly that’s irritating but we do it; we just don’t always inform those folks that we’ve done it. Also, I’ve been a bit more diligent in finding the time to remove the links from those authors who haven’t followed the guest posting policy & responded to comments; after all, this blog is really for those who read it and have commentary or questions, and they deserve responses for taking the time to write something here; we appreciate all of you and hope you continue visiting.

When all is said and done this blog doesn’t make a lot of money; very little actually. We’re always looking for advertisers and investors, and we’ll always have some type of products on the site; we deserve to make some money as well because it’s time consuming running a blog of this kind. The content is quality stuff; we don’t accept anything that’s not top notch.

With that said, we’re highlighting 9 articles from this period that were considered as the best of the lot for the period, which was about 7 months. As a disclaimer, the articles to the left in the top 5 are still the top 5 articles overall in visits for this time period; that’s saying a lot. I also want to make a special mention of another writer of content for this blog, Joshua Rodriguez, who has one feature article a month, the first Wednesday, and his stuff is fabulous; he has two of the articles listed below. We hope you continue visiting Top Finance Blog and hope that you’ll give the articles below another look:

Is Gold a Worthwhile Investment?

The Financial Case For Barack Obama

Understanding And Applying For Credit Card Hardship Programs – Joshua Rodriguez

10 Ways To Change How You Think About Money

Top 5 Financial Issues To Address In 2013

Your Financial Life Is On You

How To Pay Off Your Mortgage Faster In 2013 – Joshua Rodriguez

3 Do It Yourself Alternatives To Credit Card Debt Consolidation

Secrets of the Life Insurance Industry: How Life Insurance Agents Get Paid
 

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For those who believe that the world’s major economies are going to hell in a hand basket, it augurs the question of what to do with your money to firstly protect it and secondly profit from it during these difficult times.

Grace Tari via Compfight

Some of the shrewdest financial minds of our time, think Jim Rogers and Doug Casey, as well as numerous adherents to the Austrian school of economics are of the opinion that we are in the midst of economic turbulence that still has a long way to run. And with central banks printing money at a rate unprecedented in the history of mankind, interest rates at historically low levels, and very questionable methods of measuring key economic statistics such as inflation, cash in the bank is losing purchasing power on a daily basis.

So if paper money is not a place to be and quantitative easing creating distortion in the bond market, then what other alternatives are out there?

Jim Rogers is a firm believer in hard assets that cannot be produced by the printing press or clicking a computer keyboard – think gold, silver, and to a lesser extent, industrial metals such as copper and nickel. He is a very firm believer in farmland as the growing middle classes in the world’s two most populace countries – China and India – will require more and better food, and with much farmland been overtaken by urban sprawl, this sector has been neglected. Doug Casey seems to concur with Rogers’ advice.

An investment you rarely see mentioned and one that has outperformed most others over the last decade is diamonds. Investing in diamonds, particularly natural fancy color diamonds, has proven to be a very smart place to park your money.

Diamonds have a market in the tens of billions of dollars so it is never a problem selling them if required. They are easy to maintain as they never lose their sparkle and are the hardest natural element known to man. They are not subject to reporting requirements such as gold holdings and are easy to transport either in jewelry form or if placed in your pocket.

Fancy color diamond prices have appreciated in the hundreds of percent, and even in excess of 1,000% depending on the stones in question, over the past decade or so. Ten thousand times rarer than colorless diamonds, fancy color diamond prices barely flinched during the great financial crisis of 2007/2008.

Minimal downside, lots of upside, durable, easily transportable, not subject to reporting requirements, marketable, and rare – what more do you need in an investment?

Jonathan Peterson enjoys writing about investing in diamonds, and working with them day by day.
 

Copyright secured by Digiprove © 2013 Mitch Mitchell

Not everyone is lucky enough to inherit a large sum of money. In fact, some people find that they are the ones supporting their own elderly parents. But, if you are one of the lucky ones who receive an inheritance, how do you honor it and not blow your money?

Alex Cockroach via Compfight

Slow Down and Think Before Spending

First, do not immediately go out and blow your money and then regret it. Think things over carefully. If you receive an inheritance and plan carefully, it can change the rest of your life and your retirement for the better. Look at how the inheritance money will affect your balance sheet. If you are in a situation where you have a hard time making ends meet, think about using part of your inheritance to invest in a fixed annuity that gives you a set amount of money for life.

Drawing Out Money as You Need it

If you are already financially ready for retirement, holding on to your inheritance and drawing out the money when you want or need is best.

Keep a Memory of Your Loved One

Your inheritance money should have an emotional attachment with the person who left the money for you. You want to honor your inheritance, and do something special to honor the one that left it for you. Things like buying a small beach house so that the entire family can gather together and reminisce about the person who left the money is a great idea. Something like this might support the values that grandma had when she was alive. Do something that represents the loved one who wanted to leave you with a special gift.

Use the Money to Serve You Best

On the other hand, it is also fine to do what you want to do with your inheritance. If you get stuck on doing what grandma wanted you to do and keep your inheritance invested the same way grandma did, you might need to think twice. Look at things from a broader perspective. These assets were given to you to serve you. You want use them in the way that they serve you best.

Consider CDs, Bonds and Emergency Funds

Until you do figure out what you want to do with your inheritance, consider short-term CDs or top-quality municipal bonds. If you do not have an emergency fund that would keep you going for six months, use some of your money to create that fund. You should always have immediate access to your emergency fund.

Paying Off Debt

Spending your inherited money is not always a bad thing. Before you go on a spending spree, pay down all your debt, especially credit cards that have a high interest rate and loans for vehicles. If your mortgage will be hard to pay once you retire, pay some of that down.

Consider Your Retirement at All Times

Always think about your own retirement. If you have always wanted a new car, but you have a car note now, pay off the current car loan, trade in your car and buy a new car paying cash with the money you inherited. Use the car note money that you no longer have to pay for a savings account for your retirement.

Using Your Inheritance For College

If you have children, think about using the inheritance money for their college education. This way, your kids will not be strapped down with a load of student loan debt.

No matter what you do with your inheritance, think about it first before making any concrete decisions. Plan for the future, but keep the memory of your loved one alive if at all possible.

Roger Rudd is a freelance blog contributor. He specializes in business and finance articles, and this article was written on behalf of Approved Cash Advance.
 

Copyright secured by Digiprove © 2013 Mitch Mitchell

A budget is a financial tool that is very useful, especially when it comes to managing your expenses. Yet, many don’t create a budget because they feel it may not help them or that it isn’t worth the effort. Here are 5 budgeting myths you cannot believe in order to profit.

Image from Flickr by 401(K) 2013

You Don’t Need A Budget to Manage Your Spending

The biggest myth about budgeting is that you simply don’t need one to manage your spending. Even those that spend wisely and aren’t frivolous with their purchases can run into problems. This usually occurs when unexpected expenses arise, or you simply want to buy something you wouldn’t normally consider buying. With a budget, you can plan your normal expenses and leave a portion of your income available for emergencies, unexpected purchases, and other things.

It’s Too Difficult to Maintain a Budget

The second myth that prevents most from creating a budget is that it’s too difficult. If you can balance a check book, maintaining a budget shouldn’t be a problem. Plus, there are financial software which lets you easily plan your budget on a computer and calculate expenses. Identifying all your expenses is usually the hardest part of the process. The best way is to take a look at your monthly bills, yearly bills, and purchases (even daily expenses such as coffee or parking fees).

Budgets Are Not Flexible

The biggest concern most have after creating a budget is sticking with it. Some of your expenses need to be met such as the mortgage, utilities, and groceries. Other expenses can be reduced or eliminated within the budget, and the new-found cash can be used for other purchases. For example, if you are paying more than the minimum amount due on a credit card or loan, you could pay just the minimum amount for a month or two and use this cash for other expenses. You could also eliminate expenses with alternatives such as preparing your own coffee and driving to work with a co-worker.

Budgets Limit Your Financial Options

Another myth that prevents most from maintaining a budget is that it restricts their financial options. Budgets allow for savings, retirement, and even investments. Simply set aside a portion of your income for these categories in your budget. From industry experts like Ken Fisher, who writes articles for Fisher Investments in Forbes, to your grandmother’s nickel jar, everyone has a budgeting secret that works for them.

High Income Earners Don’t Need to Budget

If you make a lot of money, you probably aren’t too concerned with maintaining a budget. Daily and monthly expenses aren’t a problem, but long-term planning should be a concern to you. Some of the expenses to consider include a child’s college tuition, large purchases, and investments. By saving a portion of your income for these expenses today, you will be ready for it in the future.

Don’t let these five budgeting myths prevent you from sticking to a budget. By reducing expenses and tracking where you spend money, you can easily save money and live worry free.

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Any internet user knows that the web is full of bad financial advice, but that doesn’t mean that we all know how to identify it at first glance. It’s easy to remember that anyone who claims that they can predict with certainty the future behavior of the stock market is snake-oil salesman, but some of the most useful and important financial planning tips are less intuitive.

seier+seier via Compfight

For example, knowing that you should look for a fee-only broker or financial advisor may not be something you’ve heard before. This will help to ensure that the person you’re paying to help you navigate your financial decisions has your best interests in mind, rather than their own commission.

The inspiration for this article came to me after I found a post online called “5 Reasons not to Mortgage Your Home to Pay off Your Credit Card Debt.” This actually made me laugh out loud, and not just because of how hilariously long the title is. I couldn’t understand how anyone could need more than one reason to tell them that was a bad idea: If you default on your credit cards, you’ll be sued. If you default on your mortgage, you’ll be homeless.

I spent one afternoon deliberately reading bad financial advice, and after all of the awful tips that I jotted down for consideration, I realized that I had the beginnings of a book, not a blog post. In order to narrow down the field a little, I decided that for now I would look specifically at mortgage related misguidance.

• Stop paying your mortgage to get a loan modification

Getting a loan modification may be a good idea for you, and there are some government backed programs that are only available to borrowers who are already in default, but that does not make this strategy worth the risk.

Even if you are lucky enough to be able to modify your loan, you’ll still be responsible for all of the late fees that your lender assesses, and your credit will be shredded by such a significant delinquency. If you’re among the majority of borrowers who are stuck with the original terms of their loan, you’ll be in very real danger of losing your home.

• Add the closing costs to your home loan

The cluster of vaguely defined, randomly set fees that lenders will charge every mortgage borrower are referred to as the closing costs. These can include the loan origination fee, which tends to be about .5-1.5% of the loan, a rate lock fee, application fee, and any other processing fees the lender can think of.

Closing costs usually wind up being about 2-4% of the total loan, which may sound small, but if you’re borrowing $100,000 for a home, you’ve just added up to $4000 and the interest it generates to your loan. It is a far better idea to wait until you’re able to save up the closing costs, as well as your down payment before entering into a mortgage agreement.

• A home is the best investment

Home ownership is one of the hallmarks of middle class American life, and I am not trying to dissuade anyone from taking that leap. However, purchasing a home strictly as an investment is a little bit like buying a cow so you don’t have to go out for milk anymore. The amount of labor and expense required may exceed the financial gains.

Owning a home comes with the added costs of property taxes, maintenance, and homeowners’ insurance. In many places, after a housing bubble pops the market never fully recovers the value lost, and even if it does, or if you’re lucky enough to live in a place where home prices never drop, they almost never keep up with inflation.

• Follow the 2% rule before you refinance

This piece of financial lore suggest that you shouldn’t bother to refinance your loan unless it will drop your interest rate by at least 2%. The primary argument for this seems to be that there will be new costs associated with a refinance, and it may not be worth the hassle.

A little simple math can clear this misconception up. If we go back to our $100,000 example, even just a 1% reduction in interest will save $1000 per year. Perhaps you live a life where that is an irrelevant sum, but for most of us that would make a significant difference.

• Refinance with your bank

There are several reasons to refinance your home, and you may be inclined to do so through a bank or credit union that you already know and trust rather than going through a broker who may or may not be looking to rip you off. Unfortunately, this instinct may lead you away from the best deal for you.

The Real Estate Settlement Procedures Act is a law that was passed with the intention of protecting borrowers from invisible markups on home loans. This legislation requires that mortgage brokers disclose the amount that they add to the market price of a loan. The law was specifically written to exclude banks, so they’re able to mark up the loans they sell at whatever rate they’d like, and never reveal to the borrower what the fair price would have been or what commission they were charged.

One of the most difficult things about this Mac-truck sized loophole is that it allows mortgage brokers to turn themselves into ‘broker banks,’ simply by funding all of their loans themselves. If that is the case, they no longer have to disclose their commissions or inform customers of the fair market price for their product.

Before committing to a mortgage, shop around, investigate the rate you would be charged by your own bank as well as one or two other lenders. Ask any brokers you’re considering working with if they close their loans in the name of a wholesale lender, or if they’re a ‘broker bank.’ At least this way you’ll know who is giving you all of the information and who is trying to sneak some extra charges past you unnoticed, and you may have the opportunity to attempt to negotiate down the commission.

Frank Newhouse is a freelance writer with experience in property management and personal finance. He currently writes for AC Florida, which helps people in the Miami area find air conditioning services.
 

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Last December I wrote a post talking about grocery shopper’s cards and the great savings you can get from them. Even though I wasn’t someone with a pattern of going to lots of different stores for groceries, since I literally share a backyard with one, I have found not only great deals here and there at other places but foods my own store doesn’t have that are pretty tasty.

Recently I’ve discovered something that’s even more beneficial, depending on your malady. Presently I don’t have health insurance, and unfortunately I’m diabetic. I’m also on insulin, a mix, to help supplement my other medication. It’s not until you don’t have insurance that you find out how much stuff really costs; shocking!

At the same time, it’s not until you have to start shopping around that you find some very strange and interesting deals. It seems that if you have a lot of local grocery stores that have pharmacies and a lot of pharmacies around you’ll find that each store seems to have a special price for certain types of things, not necessarily diabetes.

Here’s an example. The insulin I take is known as Humulin 70/30. It normally comes in what’s called a pen, where you attach a needle when it’s time for an injection, you turn the bottom to the dosage you need, and then you inject yourself. The price for this is at least $265 a box. I say that because when I started looking around the price went from that up to $399 a box; ouch! Depending on your dose, a box could last you a month, or possibly less; that’s a lot of money.

However, it turns out that Walmart has its own version of that same medication, in vials, for less than $25 per vial. Two vials equals a month’s supply when compared to the Humulin 70/30, which means it costs me less than $50 a month, and there’s no tax; stunning!

I know someone’s out there saying “yeah, but that’s Walmart”. Here’s the deal. With vials you now need syringes. Walmart charges $35 for 100 syringes. Locally the range for syringes was between $29 and $55; interesting isn’t it? However, one store in my area actually gives you syringes for free as long as you have a prescription; what?!?!? Yes, it’s true! So, that’s the store I go to for those; nice savings, eh? And since I inject twice a day, that means they last a month and a half; at free, that’s fantastic.

Do you have a high cholesterol level? I don’t really, but because I’m diabetic my doctor has put me on something; ugh. I’m not on Lipitor because that’s a pretty strong medication, but what if I was? At most stores Lipitor can cost you as much as $20 for a month’s prescription. That’s not too costly so no big deal you say. However, at the store I share a backyard with they give you Lipitor for free. Did I say free? Yes, it’s free! If I wanted the stronger medication I could have my doctor call it in and I could get it for free. But since I’m hoping I’m only temporarily on this stuff I’m sticking with what I’m taking, which is only $4 for a month’s supply.

Here’s the thing. Even if you have insurance, if you owe a co-pay that’s around $40 looking into stores that might offer what you need to take at a lower price might be a smart way to go. When my wife was working at the hospital we got a special deal, but if I’d had to buy those medications elsewhere I’d have had a 40% co-pay for them. For that insulin, it means I’d have had to pay more than $100 for it in some places, whereas at Walmart I’d have only had to pay $15; I’m thinking that’s a deal worth looking into.

It pays to shop around for expensive things anyway, but hopefully you’ll be able to find the types of deals I have in your area.
 

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Whether off the back of long-held ideas or a sudden spark of imagination, small, independent businesses are starting to pop up all over the place – with determined owners looking to make a successful go of things.

by Ashim Adhikari via Flickr

While most of those who decide to start a business will have an endless sense of ambition and excitement about the direction in which the company will eventually travel, some find themselves content with getting to a certain point and simply maintaining the firm’s size and stature.

However, growth plays a crucial part in a successful business venture. A trade which doesn’t need to develop alongside the needs of the consumer is extremely rare, and very few businesses still operate in exactly the same way as they did in their early stages.

How to cultivate business growth

The moving forward of a business doesn’t just happen without hard work and planning. That said, there’s no single answer when it comes to determining what constitutes growth. Different businesses will have different targets to meet and ambitions to work on to ensure success steadily increases and the business remains relevant.

One thing which should be a part of any business, however, is a plan. While this plan must be established in the venture’s early stages, it should be open to adaptation and development to ensure it remains relevant. Running a business, whatever it sells or provides, is all about meeting the needs of the consumer – as these needs change, so too will the targets laid out in your plan.

By keeping on top of the goings-on in your industry (and the industries closely related), you shouldn’t have too much trouble working out how to consistently provide consumers with what they want. This will also help to ensure the business has a chance of staying ahead of the competition.

Talking to customers directly, however, won’t hurt. Although customer feedback forms and market research questionnaires have long been part of business growth strategies, technology today makes it even easier to enjoy a direct relationship with both loyal and potential customers – Facebook and Twitter, for example, have broken down many walls between the modern business and its consumer.

Growth from the employees perspective

The development a company experiences will not only affect the major decision-makers at the top. The best employees will look to be constantly challenged in order to better themselves; in the context of a workplace, these needs are best met with steady growth. As needs change amongst the target audience, all of the company’s employees will have to adapt to suit – the ones who don’t take well to such change may be lacking ambition and this shouldn’t be taken too lightly.

Also, if the firm’s best employees aren’t challenged at all in their roles, they’re likely to become jaded. This could lead to a significant drop in performance and productivity levels or perhaps even pushing the worker to seek what they’re looking for elsewhere.

Growth: being financially sensible

Growing too fast can cause major financial problems and, in some cases, these can jeopardize the business altogether. In the early days, it is highly unlikely that a business owner will have a huge budget to work with. At this stage, it pays to be frugal; and there are plenty of ways to achieve this. Moving gradually up the ladder from a room at home to a serviced office and eventually a permanent space is one example.

It’s important to use this situation to get into the habit of restraint. While finding the ultimate dream premises may be the first thought, for example, its cost will impact other parts of the business if it doesn’t quite fit into your budget. Instead, put it on the plan’s target list and use it as inspiration to work hard.

Business growth shouldn’t be seen as just increasing profit. The environments in which modern businesses operate are evolving quicker than ever before – meaning growth has become more of a necessity than a choice.

Gemma Cole works for PS Finance an independent brokerage offering cash-flow solutions such as invoice discounting and invoice factoring.
 

Copyright secured by Digiprove © 2013 Mitch Mitchell

Seniors are just as likely as any other citizen to be thinking about making a change to their insurance. Regardless of the type of life insurance under consideration, it is a sad fact that senior citizens are also more likely to be taken advantage of by unethical insurance sales proposals. The increasing complexity of various types of life insurance for seniors makes protecting seniors in the family of the utmost importance. Too often, seniors may be left on their own to make such decisions.

Patrick via Compfight

Regardless of whether you have significant assets at your disposal, or if you are living on a limited and fixed income, as a senior citizen you need to be careful with any financial transaction. The reasons for initial purchase of some types of insurance may no longer be present, making continued coverage the wrong way to use monetary assets. If you are conducting a review of your insurance coverage, be prepared and be warned. You need to know how to protect yourself when considering any change to existing policies or a new purchase of any type of insurance. Here is some helpful information that can help you avoid being scammed or have someone take advantage of your age.

- Have a family member, or independent financial consultant, review any insurance proposals you receive. If approached by an insurance agent, regardless of where or when, only accept insurance proposals for consideration that are given to you in writing. Proceeding in this manner allows you to tell the person offering the insurance that you will have to get back to them after a proper review of their proposal.

- Never let yourself be pressured, for any reason, to make a quick decision on any type of financial matter, especially the change to your current insurance policies, or the purchase of new insurance. Representatives of any company that try to pressure you should be a warning to avoid dealing with that particular company.

- Even after you have had a proposal reviewed if you have any questions, or do not believe you fully understand the transaction that is about to take place, do not sign or agree to anything. You can avoid uncomfortable situations if you have a family member or financial consultant with you at the time to conclude any financial transaction.

- If you follow the suggestions already listed above, you should never end up in a situation where you do not know the people, or company making a proposal to you. If you should be offered something from a new agent or company, make sure part of the review process of any proposal is a complete research on the reputation of the company and people involved. Remember, every state has an insurance commission. They can advise you about which companies are licensed to do business in your city and state.

- Regardless of the type of financial transaction you are considering, make sure you get copies of full disclosure information. This data should advise you of the pros and cons, the possible benefits and dangers that you are facing if you decide to complete the transaction. Any payments or changes in rates of charges, including insurance premiums or reductions of coverage, should be clearly and completely included in full disclosure information. All legitimate investment or insurance agents will be pleased to provide you with all the information you require about seniors’ life insurance.

The bottom line is that, because of your age, you should never complete any type of life insurance transaction, until someone in your family, or a trusted financial advisor has made a review and given their advice, in the form of an approval, for you to go ahead and conclude the proposed transaction.

Chuck Malhab is the owner of lifeinsurancequotes-online.org and he occasionally writes for popular sites and blogs related to business, finance, insurance…. You can reach him @https://twitter.com/quotes_for_ins.
 

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Buying a new home is always exciting, whether it is your first home or you have had the experience before. Sometimes the process of buying is smooth and sometimes it can be overwhelming with a number of choices available. No matter how much excited you are to buy your new home, always consider the important factors that make your house a dream home that you have always fantasized.

Denis Collette via Compfight

When searching for a new home there are a certain factors that you need to consider. If you find a home that meets these criteria then you can buy the home and be relaxed that you have made a perfect choice. The below mentioned factors will help you in finding a great house for you, where you can dwell serenely with your family.

Check the neighborhood:

Neighborhood is a very important factor to be considered before you decide to buy the house. This is because you can make changes in the house if you are not happy with a few construction details, but you will never be able to change the neighborhood. You should check the crime rate in the area, availability of necessary goods and services in close vicinity of the home. You should also look for a home that has a good hospital and school in the nearby area. You can talk to the home owners in your immediate neighborhood about the safety that they feel while living in that area.

Consider the size of the home:

Another important thing is the size of the home. You should never buy a home that is too small for your family and at the same time buying a home that is too big for your family can also prove to be a bad investment if you have financial constraints. The size and the style of the home totally depend on the individuals of the family. If your family includes kids then you will want to buy a home that has open floor plan. If you like to invite friends and relatives over then you need to keep and extra room and also consider a larger dining area to accommodate the guests.

Consider your future needs:

Your future needs have a huge influence on the home that you buy today. If you are a newly married couple then you must consider a home with extra rooms as you will have expansion in your family soon. If you have plans to have a workshop in your home then that should also be considered, a house with a garage can work for that as you can convert a garage into a workshop easily. This kind of planning helps when you already know your future needs, because it is not worth changing homes often and the changes in the real estate price can also prove to be prohibitive in future.

Compare the real estate value of the home:

It is imperative to know the history of the real estate price in the area you are about to buy a home. It always seems attractive to buy a home that costs less than other homes, but then this should also be taken as an indication that there is some problem either in the home or in the location. However, this might not be the case always and you can find a nice home in your budget without any problems. But if you have plans to sell the home in future and make a handsome profit from the real estate investment, then the historical market values of the location and home helps a lot.

Always go for professional home inspection:

Once you have found a home that meets all your requirements, don’t forget to get it professionally checked by a home inspector. This is very crucial because a home inspector will examine the home from inside out and help you ensure that the home is free from any defects. At times, after buying the home the residents realize that there are many faults in the home, which need urgent repairs and are also expensive in nature. Such faults are not identified by a layperson when they look at the home, the home may as well feel perfect to them. Thus if you want to avoid costly surprises, it is wise to invest a few dollars in home inspection. Who knows, you might also be able to renegotiate the price for the home based upon the report submitted by the inspector.

Conclusion:

I hope you find your dream home soon, but do consider these factors as they will help you in buying a home that is more than perfect. I wish you good luck with buying your new home, and trust that this article will help you in the process.

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Just recently, Suntech Power, the global leader in solar panels manufacturing, became one of the latest companies to succumb to bankruptcy. Whether you are running a small mom-and-pop-shop or a giant multinational conglomerate, bankruptcy is an ever-present possibility.

Trey Ratcliff via Compfight

Further, its adverse effects are so real that business owners must never take their eyes off the financial health of their companies.

How to Prevent Bankruptcy?

Early detection is still the best weapon against bankruptcy. By identifying the symptoms and causes early on, company managers are able to address potential problems more effectively and efficiently.

However, the real problem is not about finding solutions to problems. Business managers are good with that given enough time. It is being able to find out and acknowledge that you have a looming bankruptcy problem before things spiral out of control is the hard part.

The Symptoms

The signs that you have a looming corporate bankruptcy problem would greatly depend on your industry, company size, market share, etc.  The following are just a few of these indicators. Nevertheless, these examples should give you some good insights on what you should look for.

Plateauing sales figure

Every entrepreneur knows product cycle, but it seems that many fail to realize that when a product has reached the so-called maturity phase, decline comes next. This is when complacency becomes very dangerous. Things can only go well for so long. Sooner or later, a new product is born and before you realize it, you’re out of the picture. Instead of allowing product cycle to work against you, use it. By knowing that your product is nearing maturity, start developing a new one already.

Also, don’t fall into the trap of trying to defeat your major competitor on an aging product. Fujifilm did not focus its resources trying to beat Kodak on the camera film business. Instead, it wisely invested more of its resources on the upcoming trend of digital photography.

Increasing marketing expenses to keep sales up

There’s nothing wrong spending on marketing. It’s part of a healthy and growing business enterprise. However, a good entrepreneur knows that wrappings don’t make a product. When you realize the increases in your marketing budget are no longer as effective as they used to be in bringing in more sales, it might already be time to start looking into other options.  Don’t wait for such a time that you are forced to borrow substantially to fund your marketing campaigns before you act. It’s almost the perfect formula towards business failure.

Increased debt repayments to sales ratio

This is something that can easily be checked, but many entrepreneurs seem to shrug this indicator off only to regret it later. Keep debt repayments small by borrowing less while keeping sales up.

If you don’t have the habit of checking your debt repayments to sales ratio, it might be high time to start now. Knowing that you have this issue can be enough motivation to dig deeper in finding areas that need attention without having to resort to borrowing.

Smaller competitors start to capture your market

Being the bigger guy on the block almost always means more guys wanting to take you down. So keep your eyes for upcoming players and deal with them before they become strong enough to challenge you.

In April 2012, Facebook bought Instagram for a staggering $1 Billion and everybody seems to agree that above all else, Mark Zuckerberg’s main agenda is to buy off a competitor than to expand their business. Of course, you don’t necessarily have to buy off everyone. Check out all your options, but make sure to act swiftly.

Large players come to town

Let’s face it. When it comes to direct competition, large companies almost always have the upper hand. Everyone knows that Walmart kills local small businesses.

When facing a larger opponent, don’t wait up until your company is already neck-deep in debt to start considering other options; it might already be too late. What many small businesses don’t realize is that these changes also bring new opportunities.  Look for these emerging opportunities and see if you can rearrange your business to accommodate these changes. Of course, there’s a strong possibility that your only option is to check out. What is important is that you know your options and you are able to act on time.

When Carrying a Huge Business Debt

Even with all the data available to them, many entrepreneurs still come short in detecting potential problems early. They would soon panic and borrow heavily to keep their businesses afloat. Even when your debt levels are still on manageable levels, it might be helpful that you already know what your options are should things turn worse.

If you haven’t considered using business debt relief services yet, you should see if it is an option you can use on your business. Being able to significantly reduce your corporate debt will give you that elbow room you need to develop a new product, offer a new service, train new staff, etc.

Bankruptcy is avoidable if you know how to detect it before it even becomes all too visible. Sharpen your senses to see if things aren’t growing well. Use the best possible tools e.g. product development, business debt relief, or focusing on specialized services, to deal with it early on and save yourself from the troubles brought about by corporate bankruptcy.

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Just about every financial planner out there will answer this question with a resounding YES! If there’s ever a “right time” to purchase life insurance, it’s when you start a family. Unfortunately, not every family views life insurance as a necessary purchase and puts it on the back-burner.

Kevin N. Murphy via Compfight

Following a survey conducted in 2012, the insurance industry’s research outfit, LIMRA, determined that only 36% of families residing within the United States were covered by life insurance. In 2010, this figure was 26% higher, and one can only assume that the economy played a huge role in its decline.

While financial hardship is more than understandable, especially when a new family stacks up even more responsibility, that’s still 64% of U.S. families left struggling if something should happen to their primary income provider.

What’s the purpose of life insurance? To supplement income lost, cover debts and funeral costs, and provide future financial stability for your loved ones, in the event of a tragedy.

Things to Consider When Purchasing Life Insurance

There are different life insurance options available and, as always, you should consult with your financial planner to determine exactly which route you should take, but here are the broad strokes:

• Decide Whether to Buy WHOLE TERM or TERM

A whole term policy is an investment opportunity (it’ll earn you tax-free cash), but it isn’t the policy typically recommended by financial experts—there’s added fees, commissions, and it’s a permanent policy that is very expensive to forfeit. However, a term policy is set for a certain number of years, provides a fixed-rate, and while it doesn’t provide any investment incentive, it does provide you with full death benefits.

• In Your 20’s? Buy NOW

If you’re starting a family in your 20’s, you’re in luck! You can purchase a life insurance policy that will set you up for the next 30 years, very affordably — more so than it will ever be again!

How affordable is it? On the high-end, you can pay $350 to $400 annually and be set up for the next 30 years under a $500,000 policy. As mentioned, that’s on the high-end; you can opt for a $300,000 policy and it would be even more affordable.

• Consider Your Assets

This is where a financial planner will come in handy; before you buy, you’ll want to not only take stock of what your assets are, but what you want handled if something should happen to you. All of this will need to be figured into the face amount of your policy:

o How much is your income? Take out at least 5-8 times this amount.
o Do you want to provide for college tuition? Factor in this amount.
o How much do you want to spend on your funeral? Keep your family from having to absorb this amount, and factor it in, as well.
o Do you have a charitable cause you’d like to leave funds to be donated to? Add this into your coverage.
o Are there additional family members who rely on you financially? Make sure they’re taken care of.

This post was written by insurance specialist, turned professional blogger, Jesse Hughes. Jesse has been been involved in the insurance industry for a number of years now & has worked for some of the biggest name in the business. He now writes full time, contributing to all manner of blogs.
 

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