In essence, this is post #598 on this blog. Because I have a lot of other posts scheduled, including two in a row after this one, post #600 will show up on Saturday and it’ll be a guest post. I didn’t want this article to be posted on Sunday, and you’ll know why within the next paragraph. So I decided to let this be an acknowledgment to post #600, which is another milestone I’m proud of, and highlight 9 posts I’ve written over the years that I think deserve another round of attention.

First, I want to share the first interview I’ve done regarding Top Finance Blog. Bill Hazleton of the blog Credit Card Assist interviewed me and it went live on May 15th. I’d be happy if you checked it out to learn why I decided to write this blog in the first place, as well as a bit of advice I give since I was asked.

Now 9 posts that I feel deserve a bit more attention, more for you and your financial health and entertainment than mine.

The Case For Paying Bills Online was my attempt to talk about why it could help many people to think about paying some of their bills online; I guess that’s self explanatory.

Work For Yourself was a post I wrote when the economy was really hard and a lot of people were out of work, and I was trying to find ways to encourage folks to think of entrepreneurship.

Have You Started Generating Your Own Income Yet was written to encourage people who needed extra money to find ways to generate income by using skills they had to provide either services or products in your own time.

3 Reasons To Work From Home And 3 Reasons Not To Work From Home means exactly what the title says; nothing else necessary to say.

Is Medical Billing From Home A Scam was written because I kept running into so many people telling me they’d bought software and were going to start doing medical billing, and I knew I had to warn others not to go down that route.

3 Pros and Cons of Ebooks looked at this relatively new phenomenon.

Everyone Wants Your Money; Don’t Fall For Scams is the most recent article on this list, and once again it’s fairly self explanatory.

The Un-Art Of Tipping looked at why it seems so many people can’t figure out the why and how of tipping.
 

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It’s understandable then, why so many people resort to raiding their IRA and other retirement accounts when they lose their job. In such uncertain economic times, people want the security of knowing that they will make it — and at the end of the day, they think, “what good is a retirement fund if I’m too broke to ever retire?”

But prematurely withdrawing funds from your retirement account is bad news and has serious consequences, whether you need it or not. Sometimes it’s essential to withdraw the money — that’s why they call it a hardship withdrawal — but if you do have to take money out, be sure you understand the implications:

The Price of an Emergency

Kevin O’Fee, vice president of retirement strategy at USAA bank, says “the IRS makes early withdrawals onerous because it wants to encourage keeping money in the plan for retirement — its intended purpose.” And he’s right.

Withdrawing money from a 401(k), a 403(b), or a Thrift Savings Plan before the age of 59½ will result in a 10% penalty, and all the funds you withdraw are considered taxable income. Let’s break that down a little.

If you had a $10,000 emergency, for example, that forced you to withdraw funds from your retirement account, depending on the state you lived in, you might only get $6,000 of that money, after the penalty and taxed.

“You don’t just lose the long-term accumulation effect of having the money in your account,” says David Wray, president of the Profit Sharing/401(k) Council of America. “The value of the amount you withdraw takes a big hit.”

Generally retirement accounts offer two ways to withdraw funds in an emergency: loans and hardship withdrawals. Both have their advantages and disadvantages, but if you have to pick one, it’s better to borrow from your 401(k) than to make a withdrawal.

Obviously you want to avoid taking money out at all, but as certified financial planner June Walbert says, if you take out a hardship withdrawal, “you’ll be robbing your future for a need today and paying a dear price.”

Loans

Walbert continued, saying, “Borrowing from a 401(k) gives you flexibility. As long as you can meet the requirements of paying it back, you may be better off taking out a loan than taking a permanent withdrawal of funds from the account.”

Advantages

• Low interest rates. Wray says that interest rates for 401(k) loans are extremely reasonable, typically the prime interest rate plus 1%.

• You might be able to continue making contributions. Not all companies offer this, but some allow employees to contribute to their retirement accounts even though they’ve taken a loan out against them. If you withdraw funds, however, the IRS prohibits you from contributing for six months.

• You can pay yourself back. “Loans get repaid,” Wray notes. “You’re not subject to all the taxes and penalties of a withdrawal, which never gets repaid.”

Disadvantages

• You’ll have even more debt than you did when you took out the loan, and you will have to pay it back within one to five years.

• Failing to repay the loan will transform the loan into a permanent withdrawal, and the IRS will take out taxes and possible a 10% penalty.

• If you quit your job you will have to pay the remainder of the loan back as a lump sum. And guess what happens if you can’t afford it? You now have a permanent withdrawal with taxes taken out and, again, possibly a 10% penalty.

Hardship Withdrawal

Employers and the IRS really don’t want you to take money out of your retirement account, and in some cases, company policy won’t even allow it. If your company does, you will also have to meet IRS requirements that include showing “an immediate and heavy financial burden.” Then and only then will you be eligible to withdraw funds, which will be taxed, along with (you guessed it) the 10% penalty.

“Withdrawals should be used only in truly the most extreme cases,” says Wray. If you have absolutely no other way to pay for an emergency, then consider taking out funds, but know that the IRS only lets you take exactly what you need and nothing more.

This is a guest post by Kristie Lewis from construction management degree. You can reach her at: Kristie.Lewis81 @ gmail. com.
 

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Making good buying decisions means consider every aspect to the transaction, including how you’re choosing to pay. According to some recent research done by Professors Rose and Chatterjee (pdf) at the University of South Carolina and the University of Kansas, your buying decisions are greatly impacted by the form of payment you use, whether that’s cash or a credit card.

The Cash-Cost Connection

Specifically, the researchers looked at a phenomenon known as the “pain of payment.” The pain of payment is the psychological impact that spending money – in whatever form – has on the consumer.

What they found is that cash leaves a much more vivid and intense memory when it comes to the pain of payment. Credit, on the other hand, creates a situation where payment is decoupled from consumption. Thus, using credit, consumers are less likely to feel the pain of payment.

Here are some specific results researchers had for those customers who were primed to use cash to make a purchase:

• When customers are primed to use cash, they focus more on cost aspects than on benefits.

• Cash customers were more likely to focus on all areas of cost including: purchase price, delivery time and delivery cost, warranty cost, installation cost, and more.

• Cash customers were less likely to recall benefit-related words after the transaction than they were to recall cost-related words.

• Cash customers experience the pain of payment in that, with each purchase, they watch the amount of cash they have lessen.

The Credit-Benefit Connection

On the other hand, customers who were paying with credit cards were more likely to spend larger amounts during their transactions. Here’s what researchers discovered about those customers:

• When customers are primed to use credit cards, they focus more on benefits than on costs.

• Credit customers made more recall errors in regard to cost, and fewer errors in regard to benefits.

• Certain things triggered credit card transactions, such as having a credit card symbol on the front door, a credit card sign at the cash register, or advertisements for credit cards.

• Credit card customers were more likely to choose indulgent products.

• Credit card customers were more likely to choose high-image products over low-cost products.

When going for price, use cash

The lesson here is fairly straightforward: if you want to save money on a purchase, make that purchase in cash. You’re going to be better able to focus on the costs involved in the purchase – all of the costs.

You’re also more likely to feel the pain of payment. That’s a good thing, if you’re trying to get the best price. You want that connection between your dwindling cash supply and the product or service that you wind up buying.

Using cash saves you money when you want to save money. If money isn’t a concern, or if you’re really focused on getting the best of a product, consider paying with a credit card.

David Rodwell is a seasoned writer in business and personal finance, taking a particular interest in payment processing. You can find more of his articles located at CreditCardProcessing.net.

Copyright secured by Digiprove © 2012 Mitch Mitchell

That same CEO is probably losing his job this week (3 other executives are said to definitely be gone by week’s end) after the company announced a $2 billion loss, which is amazing for a bank that made $5.4 billion. How does a bank lose that kind of money? By doing some of the same type of stupid stuff that got banks into problems in the first place, that being speculating on things that had no real value but a minimal amount of hope (this time in Europe instead of here) that, if it had all worked out, the bank would have realized dramatic gains and we’d be talking about the genius of their leadership, but instead failed and, if it only stops at the loss it’s at they’ll all be extremely happy. Dimon was quoted as saying that what this man, Bruno Iksil, did was caused by “errors,” “sloppiness” and “bad judgment.”

Duh! Hasn’t that been the roller coaster of all the major banks over the past 5 or 6 years? Haven’t all the problems the world has suffered come about because these mega banks, unlike our neighborhood variety banks, have taken risks with what’s essentially “our” money (in quotation marks because I’ve never trusted large banks) that, in retrospect, had no real chance to succeed because, in the long run, people weren’t as stupid as some of these banking managers felt they might be?

There’s also the expectation that there could be some political fallout as well, although I’m not quite sure where it could be or who it could affect. Some are saying the Obama Administration might have to take the hit for the lack of oversight while others say that Romney and the Republican party might take a hit for fighting to allow big banks to continue doing business as usual. Personally I’m tired of the political posturing over things that neither side really had any control over.

So, what happens to J.P. Morgan Chase now? They’ll survive for now, and probably for the long run as well. But they’ve been tarnished even worse than before, and in my mind it will heed some passing of legislation in the near future breaking up the major banks to try to avoid the kind of collapse that’s had such a negative effect on our economy over the past few years. And the government can do it; remember Baby Bell in the 80′s? I for one think it’ll be about time.
 

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Just as credit cards vary by APRs, minimums, and various payment options, checking accounts similarly are not created equal. If it’s been awhile since you last thought about your checking account, here are three tips you should sincerely consider that could save you money and have you reconsidering your options soon.

- Read the Fine Print

You might find it surprising how little you actually know or remember about the particulars of your checking account. Many accounts carry with them a minimum balance requirement that folks often forget about. In some cases, if you’re not careful, you could be paying monthly maintenance fees associated with these minimum balances for a long time before you even realize that you’re paying for them.

Many accounts also offer some type of savings program in which they actually offer cash incentives for joining, without charging you anything at all. Why not save some extra money if it costs you nothing? Again though, it’s important that you read the fine print and make sure you won’t eventually be charged for joining certain programs. By reading the various account options though, you may very well find that there are other account types within your own financial checking institution that offer better services for your particular needs. Switching account types is usually as simple as making a call to your bank, and it could save you tons of money in the long run.

- Compare Other Banks

Although switching banks may seem like a hassle, if it can save you money, it’s a hassle that’s well worth it. First of all, if for some reason you’re paying for a checking account, seriously reconsider. There are tons of banks and financial institutions out there that offer free checking accounts, so paying for one is a real waste. In general though, comparing other banks and their particular types of checking accounts is a great way to ensure you’re getting the most buck for your bang, and vice versa.

As stated in the beginning of this article, all checking accounts are not created equal. Similarly, all financial institutions are not created equal either; some banks offer great, unique deals that are just too good to pass up. Do your homework and make sure your bank is the right one for you.

- Go Paperless

Switching to a paperless banking option is not only good for the environment; it can actually lead to some personal savings too. In switching over to paperless statements, bank users are far more likely to monitor their spending online more closely. Not only is it much more time efficient to view your statements online, you can do so as frequently as you’d like, making the chances of catching an erroneous charge or unnecessary maintenance fee that much more likely. Going paperless helps both you and the environment, and can lead to some great savings also.

While saving money with a checking account is something that often goes overlooked by many bank users, it’s actually one of the easiest things to do when it comes to personal finance. Banks generally want to be as easy to use for their clients as possible. That doesn’t mean that they’ll go out of their way to save you money and make sure you’re using the best account for your needs, but it does mean that by doing just a small amount of research, you will likely find easy to use, great account options for your personal banking needs.

Alex Summers is a recent graduate from the University of Arkansas and is entering the foray of the world of writing.
 

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The traditional options such as the credit card are still widely available on the market in their numerous forms. Yet there has recently been a surge in popularity of alternative options such as the payday loans, espicially from those unable to obtain credit cards.

Essentially, both execute a similar task; providing borrowers with cash which will then need to be paid back with interest however both options are accompanied by different advantages and disadvantages. Before considering either option, consumers should ensure that they are well-informed of the differences between the two products and both the benefits and the drawbacks.

Difference 1) Cash vs. Card.

The first and most obvious difference between the two is that a credit card will provide you with a credit line controlled by a plastic card. The cardholder can use the card to make credit purchases within the set limit. Borrowers are charged interest on all purchases made on the card. The credit card can be used to withdraw cash from an ATM but the majority of lenders will charge for this.

Payday loans however deposit cash into the borrower’s account. Interest is chargedon the loan as a whole. It is taken as a lump sum as opposed to a credit line. Consumers can withdraw this loan as they wise or spend using cards attached to the account which it was deposited in.

Difference 2) Application Procedure

Credit cards are offered to consumers based the lender’s scrutinisation of their credit rating and borrowing history. This will determine the credit limit that they are set and ultimately whether the lender offers them the credit card at all. In short, those with poor credit scores stand less chance of obtaining a credit card and those with good credit scores often receive the highest limits. The credit check procedure can prove time-consuming and could take up to 30 days to be approved.

The payday loan is typically not based on a consumer’s credit score therefore it tends to be a quicker process, with many loan providers stating that successful consumers will be approved within minutes. Sometimes the lender will require proof of employment or a bank statement, other applications can be completed via a form on the internet. These loans are often referred to as ‘yes loans’ as it is believed that people are rarely refused.

Decisions for payday loans tend to be based on whether the consumer earns enough to be able to repay the loan within the set agreement period, typically at a set date which tends to be around their ‘payday’. Often the borrower will either be required to write a post-dated cheque for this date or agree for the amount to be withdrawn from their bank account then.

Difference 3) Interest rates

Typically, the interest rates charged by payday loan lenders tends to be significantly higher than those charged by banks. The rates charged on payday loans can be as high as 30pc and since the interest tends to be based on periods of around a few weeks, the APR is often significantly higher than those of credit cards.

However the limits of payday loans tend to be significantly lower than credit cards. Consumers do not have the option to borrow thousands as limits tend to be set at around the one thousand mark due to their unsecured nature.

Which to choose?

Both options have both advantages and disadvantages therefore it is impossible to give an generic answer of which is the better option. If you are considering the options then it is fundamental that you acknowledge that both come with risks and drawbacks and weigh up the choice which works best for your circumstances.

Payday loans charge very high interest rates and should not be used as a long term option however they could possibly offer a ‘quick fix’ until payday for responsible borrowers who are unable to obtain a credit cards.

Credit cards also come with drawbacks but can be a good method for sensible borrowers to budget effectively and build their credit score if they borrow responsibly.

The two key rules are to repay efficiently and only borrow amounts that you know you can afford to pay back in the near future. If you make unwise borrowing decisions, you could end up paying them off for the rest of your life. Seeking independent financial advice could help to provide you with impartial guidance on the borrowing options which best suit your needs.

This post was written by John Hughes who is the resident blogger at www.independentfinancialadvisor.co.uk, a site that provides access to financial advisors as well as to debt advice charities for those struggling with their debts.

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What’s a HARP?

The Home Affordable Refinance Program, or HARP 2.0 Loan, is defined by Wikipedia as “a federal program set up in March 2009 to help underwater and near-underwater homeowners refinance their mortgages.” Unlike other programs that work to assist homeowners in jeopardy of losing their houses to foreclosures, the HARP 2.0 program was designed to help homeowners who are current on their monthly mortgage, but are unable to refinance due to the impact of the housing market collapse.

The goal of a HARP 2.0 Loan is to help homeowners refinance their mortgages and take advantage of low interest rates to save money. Although the economy is once again starting to show signs of life, I think we can all agree that any advantage when it comes to monthly finances is still a very welcome opportunity to many of us.

Who is Eligible?

According to HARP 2.0.ORG, the eligibility requirements are as follows:

• Fannie Mae or Freddie Mac must own the mortgage and must have acquired it before June 1, 2009

• Homeowners who have refinanced previously under HARP are not eligible, unless it was refinanced by Fannie Mae between March and May of 2009

• Homeowners must be current with their monthly payments

• The loan-to-value ratio must be higher than 80%

Just the Facts

So now that you know if you are eligible, here are a few more tidbits that you need to know about the HARP 2.0 Loan. The deadline for applying for the loan is December 31, 2013. Also, the loan has a great feature which allows applicants to forgo a home appraisal if an automated valuation model is available in their area.

Benefits and Possibilities

While a HARP 2.0 Loan isn’t right for everyone, it does provide an excellent opportunity for homeowners who are on time with their monthly mortgages to lower interest rates and keep a little more money on-hand each month. According to HARP 2.0.ORG, it is estimated that “the average borrower will save over $2,000 in the first twelve months.”

Next Steps

Now that you know the facts about the HARP 2.0 program, it’s time to contact your local lender to see if they participate in the program. Don’t forget, you only have until December 31, 2013 to apply, so if you are eligible get moving because, as they say, this opportunity won’t last forever.

Rebecca Scott of Scott Project Solutions is a marketing consultant and blogger focused on all things social media. Follow her on Twitter.
 

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Simply put, debt collectors have a financial stake in your debt and want you to pay it. Some debt collectors act appropriately within the law, but because of their personal interest in your loan, others resort to illegal actions while attempting to collect money from you. Commonly, they may harass, threaten or lie to you, all of which are prohibited by the federal Fair Debt Collection Practices Act.

If you’re receiving calls from debt collectors, your first action should be to verify the debt. Make sure you actually owe the debt in question. If you don’t, notify the debt collection agency as soon as possible and do not pay a debt you don’t actually owe.

Then find out if your rights are being violated.By law, collection agents may not harass you, such as by using profanity, publishing your name or threatening you in any way. Repeated or continuous phone calls, or calls during unreasonable hours, also constitute harassment. Debt collectors cannot lie to you; they cannot misrepresent themselves or their employers, claim that you committed a crime or otherwise deceive you. And they cannot take unfair financial actions against you: unless your original contract states otherwise, the debt collector cannot charge you interest or fees.

If you believe your rights have been violated, there are several actions you can take against the debt collector and collection agency. First and foremost, report the violations to the Federal Trade Commission and to your state’s Attorney General.

You also have the right to sue the debt collector. If you’ve suffered damages such as lost wages because of the collector’s actions, a lawsuit can help reimburse you for your losses. If you cannot prove monetary damages, you’re still eligible for an award of up to $1,000 in court. If you win your court case, you can be compensated for court and lawyer fees.

Keep in mind that a debt collector’s illegal actions do not affect your debt. Even if you sue and win, you are still legally responsible for paying your debt in full. But no matter how much you owe or to whom, you still have rights.

Mickey Colon writes for America’s Debt help Organization, serving the public with information on your financial well-being.

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There are some things most of us don’t know about them however. One, they have no real power. Two, if a business hasn’t gone to them first to request certification, then they probably have little information on a business otherwise. And three, anyone can pretty much get a certification with no problem because they pay for it, and you can get it for both offline and online businesses. As a matter of fact, the BBB, as they’re often known, does tons of sales calls trying to get businesses to pay upwards of around $500 a year for that certification. Does this sound like a company that’s willing to bite the hand that feeds them?

With that said, they do advertise a rating system that runs from A+ to F or no rating whatsoever, which means they don’t have any information on that business. I don’t know that I’ve ever seen them rate a business that’s paid for a certification low, but I have seen other businesses where they’ve received so many complaints about them that they have been given the F rating.

I don’t come to asking this question without a reason. In my case, I had a situation that occurred over the course of a couple of weeks, which I wrote about on a different blog titled Energy Scammed & Robbed, so I don’t rehash that here. What I’ll add is that I ended up filing a BBB complaint online against that business, a very detailed complaint that mentioned most of what’s in the blog post I’ve just linked to.

One of the final questions you have to answer is if you’re looking for something along the lines of money or an apology. There was no money exchanged so I couldn’t pick that one. I didn’t want an apology because, if you read the post, what could they have apologized for since they wouldn’t acknowledge either what we accused them of or their own deception?

What did the BBB do? They wrote me after a week saying they had reviewed what I’d sent them and that they were closing the case. That’s pretty much it; nothing else to say. And the business? On the BBB website, the business is shown as having an A+ rating, and my complaint isn’t listed there at all. One would expect that at the very least, even if I said I didn’t want the business contacting me, that they’d put something up and reduce the rating. But I guess that’s not their policy, and it makes me wonder just how they actually decide what’s credible enough to take some kind of action, even if it’s just posting the issue. No real problem for me since I wrote about it, though I didn’t name the business.

Like most rating systems you see online, you have to judge what you’re seeing based on your own criteria. Like my post last week about Zillow; you can only trust so much.
 

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It is also well known that the super-rich in today’s economy pay a lower tax percentage on their incomes when compared to middle class individuals. This is due to the use of numerous professional tax preparers who provide legal advice on avoiding excess payments. While most of us might not have the funds to enjoy the luxury of numerous accountants or offshore banking services, there are still legal methods available to the average individual to help avoid paying high taxes.

1. Adjusting Withheld Tax: Receiving tax refunds at the end of the year may look like a dream come through to most individuals, but the reality of this situation is that you are losing money because the tax refund you receive each year could have been put to better use in your private business or investments. The solution to stop this from happening is by simply filing up the necessary forms with your employer to adjust your withholdings to a higher amount, and then you can relax and observe the added income that comes in.

For instance, if you claim zero or one on your taxes to have more money withdrawn, raise the amount to claim 2 or even higher. You’ll bring in more money that you can use now, although if you raise your withholdings too high you’ll end up owing more taxes at the end of the year.

2. Taking Tax Credits: Most people qualify for tax exemptions without even realizing it and as a result they end up paying taxes which otherwise could have easily been avoided with a little knowledge. Tax credits reduce the percentage of tax an individual pays by the dollar and is one of the most powerful tools you can use to legally avoid paying high taxes. There is a defined list of tax credits which you can be eligible for and in some cases, you could be eligible for two or three tax credits. The list includes: child tax credit, earned income credit, retirement savings credit, home buyer credit etc.

3. Tax Deductions: The IRS also provides individuals with legal means to help them lower their taxes but a lack of knowledge about these opportunities make a lot of people lose out on these incentives. A tax deduction is an amount from a person’s income that tax organizations allow to be removed from the taxable income. These deductions can come in the form of student loan interest, prescribed medical aids i.e wheel chairs, loss of property which could be due to natural disasters etc. Individuals who partake in charitable donations are also prime candidates for benefiting from state tax deductions.

Receiving a tax deduction for monetary donations to charity, comes with its own guidelines which include: making a yearly donation of over $5000, filing the appropriate forms and donating to a registered charitable organization. The easiest way to know about available tax deduction avenues in your locality is by seeking the help of a tax preparer.

a. The S Corporation Technique: Taxes are applied to an individual’s income which is salaries or wages collected leaving the dividends aside. Therefore forming an S corporation to receive payment from your clients and issuing a reduced salary to yourself while collecting the rest as dividends drastically reduces your tax. This is by no means illegal and is a practical and safe technique to reduce the amount of money paid out to service your tax.

b. Deducting Business Expenses: This is also one of the freebies tax organizations provide for small business owners to help them reduce taxes. It involves keeping a record of all valid business expenses such as the purchase of equipment, legitimate business travels, office rent, utility bill for those who work from home etc. Every disbursement made in making your business operational should be deducted and the advice of a professional can also be sought to differentiate business expenses from normal ones. A trip to the Bahamas is obviously not a business trip and adding that to your expenses is counter-productive for only legitimate expenses count as business expenses.

c. Hiring freelance/Independent Contractors: Outsourcing some jobs to independent contractors removes the burden of withholding their income tax from their earnings because the IRS does not see these workers as employees but as contractors. Further advice on this method should also be sought from tax preparers so your business does not get saddled with back taxes and fines due to violations.

Andras Deak is an occasional guest blogger on many topics, now a trainee at a financial service company.
 

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by 401K via Flickr

How does transferring credit card balances work? The idea is to keep moving your debt from high interest cards to low interest ones. That way you keep your interest rates low, and pay more towards your balance. In theory, this sounds really great. After all, who wouldn’t want to lower their interest rates, especially if you can easily move your balance from one of your cards to another, switching when the “teaser” rates expire and your interest goes back up.

But there are some potential problems with this strategy that you need to look out for.

• First, if you don’t remember to transfer before the rates go up, you’ll get a big fat finance charge. And don’t think you’ll get a notice from your bank. No way. That’s how they make their money. So if you don’t keep track of when the rates go up, you can get burned big time!
  

• Second, if you don’t pay on time – even just once – then your super-duper low rate turns into 19.98% or something outrageously high like that (maybe even higher). So even if the low-interest period is for 6 months or 9 months, if you are late with your payment it ends that month.
  

• Third, most cards charge a fee for each transfer. So you’ll need to do the calculations to see if the amount you save with lower interest is more than the fee. Usually you will if the low rate is for 6 months or longer, but still a good idea to make sure.
  

• Fourth, if you only have one card, you’ll need to open more cards for the transfers to work. And the more cards you have, the more tempted you will be to use them. And if you do use them and don’t pay them off right away, then you start the whole cycle of debt all over again! So keep one card in your wallet, and put the rest in a safe deposit box or your sock drawer or anywhere hidden so you won’t use them.
  

• Fifth, it will still take a long time to get out of debt. So if you’ve got quite a bit of debt, after the initial “wow factor” of the low or zero interest, you have to keep doing this over and over for quite a while. Most people don’t stick with a diet for more than a few weeks, so you’ll need to have lots of discipline and motivation for this to work!

If you keep transferring your balances, eventually you’ll start getting offers from your own credit cards! They don’t like it when you don’t carry a balance, so if you transfer the entire balance to a new card, you’ll get one of these great offers without having to open up a new account. Which makes the process a little easier.

Ultimately, if you decide to use balance transfers, and you stick with this option, it can work. Like any debt relief plan, the key is to stick with it. And if lowering your interest rate is the right solution for you, then it can be a very successful strategy. And you can avoid the need for signing up with a debt management program. But if you are looking for some “get out of debt quickly” strategy, this is not it. In fact, that type of strategy doesn’t exist – unless you have a rich relative who can lend you money.

So make sure you have the discipline to not keep using your credit cards before deciding on credit card balance transfers. Or else you’ll end up paying more in the long run!

Kris Bickell started www.Debt-Tips.com to share the lessons he learned about getting out of debt. You’ll learn tips for choosing the right debt relief program, fixing your past credit problems, and making good financial decisions.

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While the unemployment rate has dropped to almost 8% (January 2012, U.S. Bureau of Labor Statistics), finding a job for recent grads can be a very daunting task. This uncertainty of finding a well-paying job right out of school, means that it is essential for students to make smart financial decisions and minimize their college debt. After all, school loans do not just go away with time!

One of the best ways to minimize tuition costs and college debt is by creating a Section 529 Account. This type of account allows parents to invest money tax-free for their kids’ education. It can also be used for parents to “prepay” for their child’s tuition college credits.

Here are a few things that you need to know when considering a 529 Account:

• Prepay Option – If college is still a long ways off for your child or grandchild and you expect inflation, consider prepaying for college credits. This is usually done on a state by state basis, although that does not mean you must only prepay for the state you are living in. When doing this, make sure that you carefully read all stipulations, especially if you are buying credits in another state.

• Investment Option – The second option within a 529 account is through investing tax-deferred funds for college education. While you still have to pay income taxes for the initial investment funds on your 529 account, you don’t have to pay taxes on investment gains (provided that you use the money for approved college expenses). Once again there are some stipulations on this savings plan, but it can be an excellent way to save money for school.

• Alternatives – A 529 Account is one of many creative ways to save for college, but it may not be best for your current situation. Investigate other options like the Coverdell Education Savings Account. If you have a financial advisor, talk to them about planning for your child or grandchild’s college education costs. Also, take advantage of many online resources dedicated to helping you succeed in being financially free of debt!

Jared Banz is a guest author who is currently helping create Postify, a free college classifieds system for students to sell, buy or exchange items like textbooks and furniture.
 

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Ecuador: Where Your Dollar Goes Ridiculously Far

by Rinaldo Wurglitsch via Flickr

A four-course meal for less than $2? A brand new condo for less than $50,000? That is all possible in Cuenca, Ecuador, which is the most affordable city to retire to; where you can easily live on $600 to $800 a month, according to the Yahoo News. If you are looking for affordability and year round Spring-like weather, you can join the expat community in Quito.

However, moving to a country like Ecuador is not like living in the US with rock bottom prices. Ecuador still has an underdeveloped infrastructure, meaning restaurants, hospitals, and banks are not going to be as high quality as they are in the US.

Panama: Affordable, US-Like Living

Panama’s retiree residency program gives you discounts that include 50% off entertainment and 25% off eating out. Outside of Panama City you can live on $1,200 a month and have access to U.S. trained doctors in hospitals such as Hospital Punta Pacifica, which is affiliated with John Hopkins Medicine International. Unlike Ecuador, Panama has a modern infrastructure and you’ll be able to buy U.S. goods because of the American presence that was established during the building of the Panama Canal. The one glaring downside to living in Panama is the humid climate and six month long rainy season.

Mexico: Close to Home

In Mexico you can live comfortably for less than $1,000 a month and stay relatively close to home. Retirees in Lake Chapala say that you can get access to “the world’s best medical facilities” in Guadalajara, which is 30 minutes away. You can get good health care near the cities and make friends with some of the thousands of American expats, who stay away from the violence of border towns. Aside from spotty healthcare, retirees don’t have access to brand name products and stores such as Walmart.
Ecuador is extremely affordable, Panama has a modern infrastructure, and Mexico is close to home. There are many other countries, each with their own pros and cons, to choose from, according to AARP, Forbes, and U.S. News.

When browsing the aforementioned lists, don’t look at each place as some sort of perfect tropical paradise. You’re going to be far away from friends and family back home, have limited selection at stores, and have to adjust to a new language, culture, and weather pattern. For a lot of expats, however, the quality of life, that can be lived on a limited budget, more than makes up for the cons. Furthermore, if you’re wary of being away from your loved ones, you can always take advantage of Skype and talk for as long as you want. Furthermore, foreign countries have tight-knit expat communities which you can be a part of.

Nickolay Lamm protects consumers from online scams at InventHelp Scam Watch.
 

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Even back then I was a little bit skeptical of the site. While the property values everywhere else were drastically falling, my property values were going up anywhere from $500 to $1,500 a month. I live in central New York, and at that time we weren’t experiencing a horrible housing market. However, it was a flat market, so seeing my estimated home price increasing so much didn’t make a lot of sense. But my thought was if someone decided they wanted to buy my house and used Zillow’s estimate for it, I wasn’t going to complain.

Of course now, 3 years later, I think I have reason to complain. I’m learning more about how the system works, and truth be told, it doesn’t work on looking at comparable homes in your area. Well, let me change that up just a bit. It does look at what other homes in your area might be selling for, but that’s the only comparison they seem to use.

In my neighborhood a few homes have come up for sale. A couple of them are still on the market, but one home across the street from me was sold maybe 6 months ago. It sold for a nice rate based on the size of the house and the amount of property. The other homes, because they’re not selling, are bringing down the estimated worth of the homes of the rest of us because they keep reducing the rate.

Here’s the thing. The house across the street that sold is a small 3-bedroom home with a small plot of land in front and in back of it. I own a 5-bedroom ranch style home with just over half an acre of land and no one living behind me. I own the largest plot of land in the area as a matter of fact. The other two homes that are for sell are a 3=bedroom and a 4-bedroom, neither of which has much more land than the house across the street.

Because of these other homes Zillow shows the worth of my home almost at the level of what it was when I purchased the home back in 2000, even though I got the house at a discount. The town I live in has my home assessed around $10,000 more than what Zillow says my home is worth; how is that possible?

As with most online services, Zillow bases its estimates on everything except onsite assessments of property, what the home looks like, etc. At best it’s a tool that might give you an overview of what the house might contain; for instance years ago it had this house as only having 4 bedrooms, so I went in and adjusted that, as well as updated some other things it had incorrect. So if someone did decide to look at Zillow, at least they’ve have a better idea of the dimensions and inside of the house.

Take estimates from online sites at arm’s length. Putting too much stock into these things will either make you inflate your sense of worth or irk you for how little it believes your property is worth.
 

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via Flickr

Take a look online to get some house insurance quotes, checking the policies carefully to see what you would be covered for.

Here are a few potential problems with your house that aren’t generally covered by house insurance, but are worth keeping an eye open for…

Japanese knotweed

Japanese knotweed is a plant that can seriously undermine your home with its invasive root system and rapid growth – it can reach up to three meters high in a matter of months. But what sort of damage can it cause?

In its quest for light, the plant’s shoots can cause big problems for hard surfaces, easily breaking though and damaging things like concrete, tarmac or patio slabs. Your home itself could come under attack – Japanese knotweed has been known to come through cavity walls and concrete foundations, as well as retaining walls and drainage networks.

If you know or suspect the plant is growing in your garden, you should call in experienced professionals to get rid of it – the longer you leave it, the bigger the issue may be. Not only that, it may make buying or selling a property – and also getting house insurance– more difficult.

Woodworm

Woodworms are ‘fair weather pests’ – you’ll see them mostly between May and October (if your home is affected) coming out of flooring and roof timbers. Attracted to light, they’re often found near windows and windowsills, or around loft hatches.

Woodworms can cause serious damage to both internal and external timber, as well as your home furnishings, fixtures and fittings. If you don’t get the affected areas treated, it could weaken timber, which may undermine and eventually badly damage the structure of your property.

Mold and mildew

Mold spores are all around you, both in and outside of your home. They can only really grow and potentially become an issue in damp, wet or humid conditions.

Most people wouldn’t give mold or mildew much thought. And yet it can become a serious problem and cause all sorts of damage to your property’s structure and your possessions – not to mention your health. So how can you keep it at bay?

While you can’t get rid of them completely, you can minimize the growth of mold spores by making sure your house is well ventilated. Use an air conditioner or dehumidifier whenever necessary. Clean bathrooms regularly with mold-killing products – and avoid laying carpet in your bathroom, as it could retain moisture and encourage mold growth. Finally, if you’ve had a leak or suffered any water damage in your home, it’s best to replace all the affected carpets.

Water damage

Unfortunately, water leaks and floods can be severely destructive. So it’s well worth looking into ways you can protect your home from potential water damage, especially if you live in a flood-prone area.

For example, there are many products on the market that will make your exterior walls watertight – some products you can paint on yourself, while others need to be applied by specially trained professionals.

If you live on or near a floodplain, keep a stack of sandbags handy to block off any doorways and places where water could seep in. Also, consider keeping valuable electrical items on raised surfaces – or even upstairs wherever possible.

With rain never far from the forecast, it’s worth making sure your roof is completely watertight. Ask an expert to check all the joints and seals around chimneys, skylights and so on, as well as for missing or loose roof tiles.

While it’s vital to keep an eye open for problems, it is also vital to have the right house insurance in place. You can buy house and contents insurance together online. To find out more about what cover Halifax offers – simply go to their website.

This is a guest post by Ink on behalf of Halifax.co.uk, which shares tips and strategies to home owners.

Copyright secured by Digiprove © 2012 Mitch Mitchell

So when is the deadline? You might assume that it’s December 31st, but the government gives you a little bit more room to maneuver when it comes to getting funds into your account.

Under IRS rules, you can make a Roth IRA contribution up until the day of the tax filing deadline (usually April 15th) for the year in which you wish to make a contribution.

The Roth IRA Tax Year

Each Roth IRA contribution you make is designated as having occurred in a specific tax year. So, for instance, if it’s June 30th, 2015 and you make a $1,000 contribution to your Roth IRA, that $1,000 will go toward to your Roth IRA contribution limit for the 2015 tax year.

A tax year covers the period from January 1st to December 31st of any given calendar year, and your ability to make a Roth IRA contribution in any given tax year depends on your income and other eligibility factors for that particular year.

However, don’t make the mistake of automatically assuming that a tax year and a calendar year are one and the same. While in many ways they are the same, there’s a reason for distinguishing between the two.

Between January 2nd and the deadline for filing taxes (April 15th in most years), a window is open which allows you to make a Roth IRA contribution for either the previous calendar year or the current calendar year. So it’s possible to make a Roth IRA contribution for the previous tax year in the current calendar year. Sound confusing? It’s really not.

Here’s an example. Let’s say you pinch pennies all year long in the hope of saving enough money to make a $5,000 Roth IRA contribution. When December 31st rolls around, you’ve managed to save $4,000 – a great accomplishment, but well short of your goal.

Then, in mid-February, you receive a $6,000 bonus check at work. Thinking about your future, you decide to contribute as much as possible to your Roth IRA. Since the tax filing deadline hasn’t arrived yet, you can still contribute $1,000 to your Roth IRA for the previous tax year and contribute $5,000 for the current tax year (also the current calendar year).

So for the first three and a half months each year, you need to designate a tax year for each Roth IRA contribution you make.

When Can You Make A Contribution?

The first day you can make a Roth IRA contribution for a new tax year is January 2nd (January 1st is a federal and bank holiday). So if you’re sitting on a chunk of cash on December 31st just aching to make a Roth IRA contribution, you’ll have to wait. You can’t make “early” contributions to your Roth IRA or contribute in advance to future tax years.

For instance, let’s say you reach your maximum Roth IRA contribution limit on June 15th. Since you’ve met your contribution limit for year, you can’t make another Roth IRA contribution until the following tax year, and the first day you can make a contribution for the new tax year in January 2nd.

Once the clock starts ticking on January 2nd, you have approximately 15 ½ months to meet your maximum annual contribution limit before the window for that tax year closes. Under the Roth IRA contribution rules, the last day to make a Roth IRA contribution for any given tax year in the tax filing deadline.

The Roth IRA Contribution Deadline

Since the deadline for making a Roth IRA contribution is April 15th of the calendar year following the tax year for which you wish to make a contribution, it’s possible to contribute to two tax years simultaneously.

For example, let’s say you qualify to make a maximum annual contribution of $5,000. However, due to some unforeseen hardships, you’re unable to contribute a penny toward to your 2012 Roth IRA contribution limit during the course of the calendar year. Then March 2013 rolls around, and you receive a $10,000 inheritance!

As long as you do so by April 17th, you can contribute $10,000 to your Roth IRA – $5,000 for the 2012 tax year and $5,000 for the 2013 tax year.

Don’t Miss The Deadline!

By now, the message should be clear – if you have the ability to make the maximum allowable contribution to your Roth IRA, make sure you do it. Whatever you do, don’t miss the deadline! Because once you miss your opportunity to make a contribution for any given tax year, that opportunity is gone forever.

You can’t travel back in time and perform a “do-over,” and you can’t carry over the unused portion of your contribution limit from one year to the next. For example, assuming you’re eligible to make a $5,000 annual Roth IRA contribution, and you only make a $2,000 contribution in Year 1, you can’t turn around and make an $8,000 contribution in Year 2 because you didn’t contribute the extra $3,000 in Year 1. The most you can contribute is $5,000 in Year 2, regardless of what you contributed in Year 1. So if you can, make sure you max out your Roth IRA contribution every year.

To illustrate just how disastrous missing the Roth IRA deadline can be, let’s assume that you forget to contribute one year. Instead of investing $5,000, you invest nothing. While you’re certainly free to contribute in the years which follow, you can never go back in time and invest that $5,000. Over the course of 25 years at a 10% rate of return, that $5,000 contribution equals $54,173.53. That’s 54,173 tax-free dollars that could be in your Roth IRA when you retire, but they’re not. Don’t let that happen to you. Max out your contribution today!

Britt Gillette writes for Your Roth IRA, a website which helps you answer questions about your Roth IRA.
 

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Edge of the Computer

There are few things which are good about the inclusion of the computers. Computers have no emotions. So there will be no emotional elements and perceptions in analyzing the markets. Emotion is one of the reasons for the failure of the most traders. If the last trade is a loser, computer will have no emotional impact on the next decision process. These are the things which any trader should work upon. Emotional detachment is the best quality which every successful trader has.

Inability of Trading Robots

Despite these advantages, trading robots don’t work. Short term trends in the markets are a result of the collective emotions of the market participants. The price is nothing but an emotional outcome of the traders. There will be a logical gap if you place trades based on the pre-programmed software. You must have a human involved in the decision making. Markets may change the perception within minutes. Computers may not be in a position to handle such volatility. As a human you may decide to trade or sit on the sideline. There are some limitations of computers. Trading robots at best may work sometimes. But it will not work all the time. The success of trading depends on the consistency.

The Discretionary Element of Trading

There is a discretionary element involved in the decision making. Based on the pre-programmed software may be able to identify a pattern which can be traded. But the set up may not be of the high quality. Software can not differentiate between the high probability set up and the one which is of inferior quality. There has to be a human mind involved in the decision making.

A Common Sense Approach

Simple common sense will answer whether trading robots work. With trading robots, one should be able to literally print money at will. If the inventor of the trading robots is so sure about the results of auto trading, why is he selling it for few hundred dollars given that he can make millions using the same robot? Making money in any business requires a lot of hard work. If you are thinking of making money with the help of robots, you are just being naïve.

Trading robots is a fascinating idea. But it doesn’t work. It is nothing but an illusion. You should not fell into the trap of trading robots. Instead spend the same money in learning forex trading basics. If there’s anything you can learn from trading robots, it is keeping emotions out of every trading decision. If you can do that, you don’t need any kind of software to make money. With practice and patience, you will soon make money at will.

This is a guest post by Matthew Johnson, who writes for FXbuild.com where he shares tips, strategies, and reviews to help traders improving themselves. Visit his site at .
 

Copyright secured by Digiprove © 2012 Mitch Mitchell

by Dave & Margie Hill via Flickr

When buying coverage, people usually have the option of paying for their plans in one of several ways. In Texas, for example, drivers are entitled by law to pay for coverage in installments. The state’s Consumer Bill of Rights says that a 12-month policy can be broken up into at least 10 equal installments and that a 6-month policy can be broken up into at least 4 equal installments. Making monthly installments can allow policyholders to evenly distribute the overall cost of their vehicle protection and potentially allow for the purchase of an insurance policy that would have been unaffordable otherwise.

Although helpful, each installment may be accompanied by a billing or transaction fee. Information provided by Massachusetts regulators show flat fees for non-electronic payments from insurers in that state can range from $0 to $8, and some insurers there charge a certain percentage of the outstanding premium as the billing fee. These fees may seem insignificant, but they add to the overall price of a protection plan over time. To avoid many of these additional charges, motorists may want to consider adopting a longer billing cycle. Some insurers, though, do not charge any fee if the payment is made electronically.

One hazard that policyholders should acknowledge when going the installment route with their auto insurance is the possibility of missing a payment. Insurers in many states are not required to offer any grace periods for late or absent installments. This may mean that a policyholder who fails to pay a bill on time can have coverage canceled.

Owning an automobile that is uninsured, even for a brief amount of time, could result in numerous fines and reinstatement fees. In most states, such as New York, a lapse in coverage could lead to driver’s license and vehicle registration suspension, in addition to fees for having these documents reinstated. Insurance providers are often required by law to maintain electronically updated coverage records at all times, making it simple for these companies to notify the proper authorities the moment that a motor vehicle becomes uninsured.

To avoid potential consequences from being uninsured, drivers may want to consider paying for the policy in full. If motorists are able to find auto insurance that can be purchased in one large payment, they should strongly consider making the investment. Apart from significantly reducing installment fees and cutting the possibility of experiencing a lapse in coverage, many insurers also provide special discounts for people who pay for auto protection in full. Although drivers experience greater up-front costs, the overall savings are often significant.

A decade-long fire and casualty broker, Cesar Diaz applied his experience to launch Online Auto Insurance, LLC to bring free, fast, unbiased auto insurance quote comparisons to consumers.
 

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Many people lament the cost of these things, but I’m not one of those people. I’m not because I know what goes into it, and frankly, I think we’re probably safer, even if the costs can end up being astronomical. I’m going to give the basics of how it all works.

Say a national lab decides it wants to work on a drug that can help people with lung cancer. And let’s say that there’s not really enough information on what causes lung cancer. The first step is doing everything possible to learn as much about lung cancer as possible. They’ll bring in experts, read tons of papers, and hope to identify the potential causes of lung cancer.

Next comes the work of figuring out what types of things are out there that might stem the tide of lung cancer. These could be animal based, plant based, or even something man-made that was for something else. It takes a lot of testing, and all that testing takes time and money. It can go as long as 7 to 10 years in testing before there’s really anything they can decide to test on something living.

Yes, they’ve spent all this time testing on cells, but nothing alive. And where to they go most of the time? They start with mice and rats because they’re inexpensive to test on. I know, animal rights advocates hate hearing this but it’s true. Be truthful, if it comes down to animal testing or your child dying which will you choose? Anyway, it turns out that rats have a system that’s comparable to ours, so they’re good to test on. Once those trials are done, if things look good it’s time to test on monkeys, who are the closest to us overall (by the way, man did NOT come from apes; that’s a myth).

After all that testing is completed, and once again it can take years, it’s time for human trials. This is where things get dicey because it’s not always easy finding volunteers for these type of trials. The problem is that you can’t give everyone the drug; you need to have a group that only thinks it’s getting the drug so you can see whether it’s really the drug doing the job or if it’s the placebo effect of people thinking they have something that will help them.

After all this time and money and testing, all mandated by the governments of whichever country the company happens to be in, if all goes well the company gets to release their drug and make back all that money they spent. However, they only have a short period of time, 3 or 4 years, of exclusivity over their product. After that period, it gets to go out for bid, so to speak, and other companies get the science of it all and then get to create generics of that same thing.

For us, it means the price of pharmaceuticals comes down at a certain point, but for the laboratory that did all that work… well, hopefully they’ve made their money so they can move onto the next thing. Of course, on the back end they’re going to have to fend off lawsuits because almost no drug affects everyone the same way, and some people are going to react badly to it, especially if it’s for something big. The costs of lawsuits, successful or not, are extreme. So they’re going to pass on those expenses, and who do you think pays for that?

Now, what’s the other side? Labs could put out certain things as supplements, which is why we have all these plant based pills that promise they’re going to cure all this stuff for us. Most of the testing is done by the people who put it out, and the regulations for testing aren’t close to being what they are for pharmaceuticals. So these companies can make claims without proof that those claims are accurate; you pay your money, you take your chances. For instance, just days ago news came out that Omega-3 does NOT help with heart disease or MS, which it’s always been touted to do, though it might help alleviate some other things.

That’s a very basic explanation of why the drugs you buy cost so much. You can still be mad, but at least be mad for the right reason.
 

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