Consumer Boomer |
- Unique Christmas Gifts – Revolving Personal Finance
- Best Online Checking Accounts to Simplify Your Life
- What Are The Benefits Of A Roth 401K?
- 1035 Exchange Life Insurance To Annuity
- How Much of Social Security is Taxable If Still Working
- Is It Really Time To Invest Into Gold?
- Why Haven’t You Bought Life Insurance Yet?
- Early Retirement Mistake-Swallow Your Pride and Go Back to Work
- What To Do If Your Pension Freezes
- Should You Buy AARP Life Insurance Policies
| Unique Christmas Gifts – Revolving Personal Finance Posted: 08 Dec 2010 05:06 AM PST  The holidays have long been associated with increased spending – and increase debt. It has become an American tradition at this point to spend outrageous amounts of money to make sure everyone gets a nice Christmas gift (or gifts). Credit card debt runs rampant at this time of the year more than any other, leaving the personal finances of many families in shambles. Some many wonder if there is a better way to make responsible use of revolving personal finance options – such as a revolving line of credit.
Making A Different ChoiceEveryone can identify with that Christmas shopping rush, where you are flying from one store to another to get the best deals and find exactly what your friends and loved ones might like. In this environment it become much harder to stop and think about what type of debt you are building in order to buy these things. The credit cards offered by many department stores and boutiques do offer some discount benefits up front but they are not necessarily the right option for carrying that debt since they work within specific interest rates you need to qualify to receive. In fact, they are typically high interest cards. This may be okay unless you can't pay the complete balances before the end of billing cycle. If you don't those gifts may get more expense due to the hiked interest. The revolving line of credit is normally a simple way to do your Christmas shopping if you lack the available cash. Now, if you want to get one, you need to have a good credit rating. Additionally, this revolving credit provides flexible capital at low, reasonable interest rates. If you don't qualify, it's possible to move your store card balances onto a low interest credit card. There are other options too such as getting a loan to consolidate holiday debt. Thinking AheadIf you want to use revolving credit to shop for the holiday you need to some planning beforehand so you can avoid having the real costs exceeding the actual worth of the goods you bought. Obviously, saving strategies and using Christmas club accounts can help you keep things under control. The holidays do not have to be a stressful experience where money worries eat away at the fun and enjoyment. You can spend money provided you've consider how you'll for it and what sort of debt it will lead to in the end. It's nice to be generous but don't let your willingness to give (and spend) lead you to added burdens and plenty of regrets when New Year's rolls around. You can do it if you take the time to look at the situation before getting caught up in the consumer fervor. Review this information and do more research so you can find a plan that will work best for your particular financial circumstances. This will go a long way towards quieting your worries as the holidays approach. |
| Best Online Checking Accounts to Simplify Your Life Posted: 07 Dec 2010 06:12 AM PST  There are hundreds of different types of checking/savings accounts that can be opened, but which one is right for you? I feel that the answer to this question totally depends on the type of person that you are, and how often you need access to your accounts. Some of the major personal attributes that will effect which type of account you should have are as follows, are you mobile (do you use a cell phone that has a link to the internet), do you feel safe being able to do all of your transactions with no physical location, how often do you need to access your checking account, and what is your preferred method of payment when you are purchasing something. Depending on which of the above characteristics fits you best, scroll down to find the best online checking accounts that are a possible fit for you.
Different Online Checking Accounts for Different PeopleIf you are constantly on the move and have a "smart Phone" which gives you access to the internet at all times, then chances are you trust the internet and would not mind doing all of your banking online. There are a variety of choices for you if you think that you trust a totally online bank, and by totally online it means that there is no physical location that you can walk into to do any of your banking. The options for this type of banking are as follows. Top Online Checking Account Options:FNBO Direct Online Bill Pay: This account is a good option for those who typically will have a lower balance in their account. There is no minimum balance and you are able to receive a free debit card when you open the account. They offer a competitive interest rate on their checking as well as savings accounts compared to other online banks. However, there is a very limited amount of free cash withdrawals from ATM machines. On this account there is also no monthly fee. Perk Street Financial: Perk Street is a great option for those who enjoy getting rewards for their shopping. They offer a variety of "perks" such as a cash back plan, as well as a variety of other rewards that are on a dollar based system. Like FNBO, there is no monthly fee or minimum balance attached to the account but there is a 25$ minimum when you would like to open an online checking account. There are more free ATM's that can be accessed, but there will still be a fee charged for foreign ATM's. Want more info. Check out our Perkstreet Financial Review Post EverBank: Ever Bank offers one of the highest interest rate checking accounts available, but there are a few requirements to bank with them. You will need to have a minimum balance of $5,000 in the account at all times. They will however give you the great option to scan your checks and deposit them through their online system. This feature is relatively new in the banking industry. If checks is your preferred method of payment, then Ever Bank is the right choice for you because they have free unlimited check writing. Want more info. Check out our EverBank Review Post ALLY Bank: Ally bank is the new kid on the block in the online banking industry and is putting a strong hold on the community. Ally offers a free checking account with no minimum balance as well as no monthly fees. Ally has its strong points in their CD area. They offer a variety of No Penalty CD's that allow you to withdraw your money from a CD without paying the early termination fee's that apply on all other CD's. If you use ATM's frequently and are on the move a lot, Ally offers free ATM usage because they will refund all of your ATM fees. Want more info. Check out our Ally Review Post These Online Banks are FDIC InsuredAll the above banks are FDIC insured so you know that your money up to $250,000 is safe. One subject I did not mention much in the above descriptions is an interest rate. I left this out on purpose because a checking account is not used as an investment security. Most checking accounts will have an interest rate under 2%, this rate is only competitive to other checking accounts, not to virtually any investment grade security. Even a 10Yr treasury bond will offer you a 2.8% interest rate and is totally RISK FREE. A checking account is only to be used for money that you will need to use within the next year, if you were to invest in a treasury bill/bond, you still maintain liquidity because these investments are traded on a daily basis. That is why if you will not need the money for more than 6 months to a year, DO NOT put the money into a checking account. If you would like assistance in gaining access to a security such as an insured bond such as a treasury bill, consult your local financial advisor. Accounts that are only partially onlineIf you are one of those people who do not feel completely safe with leaving your money in a location where you can not physically see or walk into, you are definitely not out of luck in the online banking industry. If you are like me, and like all of your accounts to be with a single bank (and by all accounts I mean checking, savings, mortgage, credit card as well as kids savings plans), then in my mind the best option for you is JP Morgan Chase. Chase will be the name that you see on the side of the building, but Chase offers a variety of great products for banking online. Chase has thousands of locations scattered across the United States as well is in foreign countries. They also offer the no minimum balance checking accounts with no monthly fee. If you hold all of your accounts with chase and become a premier member, then you also have the right to free credit cards as well as more advantageous account options. The online segment is also very integrated and easy to use. There are even mobile chase applications that you can buy for your I-Pod, Android or any smart phone out there. You will have the luxury of having all of your accounts on a single screen, where transferring money is free and instantaneous. You will have no issues with or hoops to jump through to access any of your funds no matter what account they are in. They offer great rewards for their accounts that also include cash back as well as plenty of other rewards. You have the luxury with chase of having almost all the same options of any online account, but also the ability to walk into a physical location for customer service issues. Managing your Kids Money with ChaseChase also gives you the ability to manage your kid's money no matter where they are. You can link their accounts right to the same main screen that you look at for all of your personal accounts. This way you will be able to access all of their transactions, and even provide overdraft protection (hooking their account to any of your accounts) so that they will not be loaded with fees. If your child is away at college, with Chase you will be able to transfer money into their account from any of your accounts in seconds, this will save you and your child lots of time, also letting you feel safe knowing that he/she will have money when they need it. Conclusion on Online Checking AccountsThere are plenty of banks out there for you to choose from that will be able to fit your exact needs. Whether you would like a high yielding checking account, or a check scanning service, there is always an option for you. All of the online banks are FDIC insured so you know that your money is safe, and if you are truly a mobile person an online account is great for you. If you are a little more traditional and like making infrequent appearances to your bank, but also want the ability to take care of business online, then a bank such as Chase is right for you. |
| What Are The Benefits Of A Roth 401K? Posted: 06 Dec 2010 05:53 AM PST  Today, more business owners, executives, and other professionals are starting to recognize the advantages of the Roth 401k plan. It may be that your business or company could offer a Roth option that would let you contribute money after taxes that could end becoming tax-free in the long run. This type of plan offers an added layer of flexibility for you and those that work for you. Investing in Roth 401k Has BenefitsOf course, you may be wondering what specific benefits could be available to you – should you choose to get a Roth 401k. For the moment, take a look at some key benefits. By understanding them, you may have sufficient information to determine if this kind of retirement account works best for you.
Should Businesses offer Roth 401k’s?The question is, in the end, whether your business offers the Roth 401k option. If you're the owner, you may want to offer this option. Those more apt to use it typically include the owners, executives, and professions that make up the highest-earning people in the country. They also need savings options that will ensure tax-free growth. |
| 1035 Exchange Life Insurance To Annuity Posted: 01 Dec 2010 05:59 AM PST  For those who wish to upgrade their life insurance or change to annuities, one of the biggest considerations is doing so without incurring tax penalties. Certainly this can be challenging in good economic times but when economy is bad there can be additional difficulties. At the same time, the life insurance industry is taking advantage of some special alternatives. These options offer more opportunities for those with differing financial needs and objectives than are available through traditional kinds of insurance and annuities.
The 1035 ExchangeThis is where the 1035 Exchange may come into play. Essentially, it is a section of the IRS's tax code that was put into place to facilitate the transfer of funds from liquidated insurance policies into another insurance policy in a way that avoids the gains taxes usually assigned to transfer money. When you follow specific guidelines of the 1035 Exchange rules, you, as a policyholder, may transfer your funds from existing policies or annuities to new insurance policies and annuities. Of course, your circumstances may determine the type of transfer you will need. Some policyholders may end up transferring more than once between different types of insurance policies and annuities. Each type of transfer, in turn, has specific rules that govern its usage. This means that you may need to know the basics in order to make a smart decision about a 1035 exchange. Changing From Insurance To AnnuityWhen you have a situation where you don't want or require death benefits, you can institute a transfer of that life insurance policy to an annuity. It's important to point out that under the 1035 Exchange guidelines, if you choose to transfer from a life insurance policy to an annuity you cannot turn around a change back to an insurance policy. The exchanges may only be conducted in one direction. In other words, you may not move from annuity to an insurance policy. You can also transfer to a new annuity account. If you attempted to transfer from an annuity to life insurance you could end paying gains taxes. Additional Thoughts on 1035 ExchangesBy using the 1035 Exchange you gain added flexibility via tax-deferred accumulation since you won't be required to pay taxes on what you've built up in one account. You can move smoothly from an old or outdated account to a new one that better meets your current needs. The rules behind this provision can be complicated and there may be other fees that you might incur during the exchange process, such as surrender changes from your original policy. It may be wise to consult with some kind of financial professional or advisors before you decide to take this kind of step. They should be able to outlines the pros and cons of this type of measure so you know what value may be available to you. Why not take advantage of the 1035 Exchange? It may really benefit you and your family in the long run. |
| How Much of Social Security is Taxable If Still Working Posted: 30 Nov 2010 05:04 AM PST  Some people are genuinely surprised when they learn that their social security income can be taxed. In certain instances, they may not have factored tax payments into their retirement planning. In other instances, people may continue working even though they're eligible for social security benefits. Tax Rates and Social SecurityThere are a few factors that will be used to determine what of tax rates you'll follow when paying on social security. The two top ones are total income and marital status. When it is time to pay these taxes, you will need to pick up a Form SSA-1099. The form will outline total benefits, but if you wish to know how much is taxable will require doing some calculations. Social Security as Your Only Source for IncomeBefore looking at how much might be taxable if you are still working, you need to understand something first: If the only income you have for a given year is Social Security income, the benefits remain non-taxable. In fact, you may not need to file a federal income tax return. The IRS includes monthly survivor and disability benefit, but doesn't include additional security income payments, which aren't taxable. It is the other income that comes in that may subject you to taxes on a portion of your government benefits. The Numbers and Social SecurityIf you want to know your potential tax liability, you should start by adding about half of your Social Security benefits to other income. There are additional factors that must be accounted for at this stage. You'll need to record tax-exempt interest earned, savings bond interest, and other benefits that could be excluded for whatever reason. If you come up with a figure that larger than the base for your filing status, then you'll to pay taxes on the difference. Base numbers are $25,000 for a single head of household or widow/widower with a dependent, $25,000 for married filing separately who did not live together during the tax year, and $32,000 for married couples filing jointly. Finally, there is no charge for married persons filing separate returns that who lived together during the tax year. All of this makes up the raw data when you want to find out how much your social security will be taxed. It's possible for up to half of your Social Security benefits to be taxed if you're a single filer and your total income plus half the benefits exceeds $34,000. The number is $44,000 if you're married and have filed jointly. Can’t Avoid ItThere's no getting around the fact that you'll have to pay taxes on Social Security if you income falls into the sort of rates and guidelines outlined here and in the IRS's latest tax charts. You'll really have to do the math to see where you fall. Check out the IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits for more details. It is important to take the time find out as much as you can so you pay the appropriate taxes on income received during a given tax year, so you do not take off more of your benefits than is necessary. |
| Is It Really Time To Invest Into Gold? Posted: 29 Nov 2010 05:47 AM PST  It may be no surprise to some of you that gold has become a hot investment item in recent years. The movement encouraging gold buying is enormous. Financial experts in some quarters are saying that gold is the asset to buy at the moment. Television personalities, celebrities, and other specialized gold dealers are all getting the word out about gold. The important point is that they are telling investors to buy gold to protect themselves against the falling value of the dollar. Others look at gold as a means to address inflation concerns. So, is it really time to invest into gold?
Do you have the gold buying fever?Expert investors and ordinary investors alike have been seized by a kind of gold fever. At current prices, gold is selling for just over $1,400 an ounce. This is part of a decade long trend in the precious metals markets that have more investors including larger percentages in their portfolios. Gold, in particular, is making up a significant share of investor portfolios. Would a, Could a, Should a…For those who chose to invest in gold only a few years ago at prices between $700 and $800 have reaped excellent financial gains. Even those who got in the markets late in the game have been able to post serious gains as the price has gone up. Yet, there are some questions about how long these price increases will continue. There are some experts speculating that this is a gold market bubble. As such, it is bound to burst. There are good reasons to think that now is really not the best time to invest in gold. Gold BubbleThis bubble is being caused by too many investors jumping into the markets. Some would say that this lessened gold's ultimate value as an investment. People are being carried away by the euphoric price increases and the seeming endlessness of the upward trend. Of course, for anyone who's really paid attention, the fact it's being described as a bubble should give one reason to pause. Do you remember tech bubble of the 1990s or maybe the housing bubble that has more recently burst? There are good reasons to think that following the pack may be a bad idea. Investors may be smarter to look in another direction. The fact is that there are some serious downsides to investing in gold. It is a matter of history that when gold has experienced serious price spikes it has also experience significant declines in subsequent years. A crash in gold prices is inevitable. As the economy recovers and consumer confidence improves this outcome may be assured. There is risk involved if you decide to starting investing in this market. Other Areas to InvestThere are some good reasons to move away from precious metals at the moment and start looking in other areas of investments. Investors could be more stable investment opportunities in undervalued assets. This could be oil or steel, both of which have the potential for capital appreciation in the coming years. |
| Why Haven’t You Bought Life Insurance Yet? Posted: 22 Nov 2010 08:45 AM PST  As it stands right now, there are three things that are pretty much certain right now. You will pay the IRS tax one way or another, eventually you’re time will come and you will leave this earth, and Brett Favre should have retired last year. Sorry, Favre fans; but you know it’s true. For now, we’ll ignore the IRS and the 41 year-olds 17 interceptions, and we’ll focus on the Grim Reaper. Sorry to be morbid, but it’s a fact that you are going to die. When you die is a whole other question. Knowing that this is a reality and you can’t avoid it, I assume that you have life insurance in place, right? Maybe my assumption is incorrect. What Type of Life Insurance is Right For You?There are two primary types of life insurance: whole life and term. For most people, term is the right answer for which type of life insurance you should have. The difference between the two forms of life insurance is this: if you have a term policy, your beneficiary receives the amount of the policy if you die within the term you’ve specified (one year to 30 year terms). With whole life insurance, you get the term policy coverage plus an investment component that you can borrow against. How much Life Insurance Do You Need?Life insurance is for one thing and one thing only: income replacement. The idea is your life insurance will take care of your family when you’re no longer here. You may only be in your twenties or thirties and expect to live many more years – but the reality is sometimes life doesn’t turn out as expected. Being prepared for the worst is much more peace of mind than simply hoping you live long enough to provide for your loved ones forever. Most people want to leave enough money so their family can live debt free and to not be overly concerned about their finances. Most people are unable to save enough money to provide for their family for years after their passing, which is why we turn to life insurance policies. Rather than just picking a number out of the air, here’s how to analyze how much life insurance coverage you need – take these numbers to the life insurance agent of your choice to get the policy you need:
Get a Free Quote from AccuquoteBefore you purchase your life insurance policy, be sure to shop rates. A great resource to compare rates is Accuquote. Accuquote clients typically save up to 70% on their life insurance premiums. |
| Early Retirement Mistake-Swallow Your Pride and Go Back to Work Posted: 18 Nov 2010 01:05 PM PST  There are plenty of people in the world who absolutely love their job. In fact, we should each strive to find employment in an area that we find personally rewarding. Whether you love your job or simply go through the motions for a paycheck, the fact remains that the vast majority of individuals dream of the day when they will no longer “have” to work. Some people actively plan for an early retirement while others find themselves retiring early for unexpected reasons. Early retirement can be a great thing if you are financially prepared for that step. For those who retire early and find themselves struggling to meet their financial obligations, there is often a need to re-enter the workforce to make ends meet. The following tips can help those who find themselves going back to work after an early retirement. How to handle Social Security?If you retired prior to what Social Security considers your “full retirement age”, and have already started receiving benefits, you may think a retirement do-over is out of the question. Fortunately you are in luck and it is possible to go back to work after you have received Social Security benefits while increasing your Social Security benefits. In order to gain the maximum Social Security benefits, you must begin taking benefits at or after your full retirement age (currently 66 or 67 depending on the year of your birth). If you have already received benefits you can drop your claim and repay the amount you have received- which will allow you to re-apply at your full retirement age and qualify for a higher benefit amount each month. Saving for retirement.If you are going back to work due to a shortage of money, it is important to recognize where you can save more money for your remaining years. Investment strategies this close to actual retirement should be on the conservative side with minimal risk. Many individuals find the Roth IRA a great investment tool at all ages, especially closer to retirement as there are fewer restrictions than those applied to other accounts. For example, an individual is not limited to contributing to a Roth IRA until age 70 1/2 and there are also no minimum mandatory distributions to content with once you reach that age. Readjusting to work.Depending on how long you have been in retirement, it may take a bit of time to re-adjust upon re-entry to the work force. Before you make the leap, consider updating your resume and possibly discussing your move with a career advisor. They may be able to help you pinpoint where your skills will best be utilized as well as helping find the right job. Many ex-retirees find that re-entering the work force is not as difficult as they might have imagined. Others are reminded of the fulfillment that comes from a good day’s work. Regardless of the circumstances that have brought you out of retirement, it is important to take advantage of this additional opportunity to earn and save for the years to come. |
| What To Do If Your Pension Freezes Posted: 17 Nov 2010 06:01 AM PST  It's never a good thing when you hear someone talking about pension freezes. Fortunately, there are some steps you can take to minimize the negative effects of this action and preserve your retirement finances. The smartest move than any employee can take is to become more active when it comes to preparing and saving for retirement. The following are just few of the potential steps you could take. Take a look and see how you use them to your advantage if a pension freeze occurs. Read Everything on Your Pension PlanIf you want understand the scope of a pension free then you, as an employee, should take the time to read the documents that are given to them once the employer has made their intentions for a freeze public. You should also attend any information sessions that are offered by the company. The point to remember is that not every frozen plan will operation in the same manner. There will be differences to consider. You should do everything you can to understand how yours does. For instance, there may be certain provisions in the documentation that allow for an easier transition or provide enhanced 401(k) contributions in order to compensate for the benefits originally offered with the pension. Simply by reading the summary plan description, you can grasp the different between how things operated before and after the freeze took effect. Run The NumbersIf you make use of the figures and formulas that are listed in your plan's documents, you can calculate what will be distributed through frozen pension. In this case, you will probably have to consult your earlier tax records to get your past income numbers. This should help give you some perspective on the quantitative differences. Don’t Just Rely on Your PensionYou should increase the contributions to your 401(k), 403(b), or other contribution plans. Then again, you might want to focus more on contributions to your Traditional IRA or Roth. The goal is really about saving more for retirement if the pension plan does end up getting frozen. This covers your back. In a related matter, be sure that you've captured the maximum matching employer contributions. Thinking About Your Employment OptionsWhen the security of a normal pension plan is removed, it may be better to consider changing employers over the course of your working years rather than sticking with one job the whole time. Of course, not having a pension is not a good enough reason by itself to change jobs. There are other considerations like salary, health benefits, and other retirement benefits that may outweigh the loss of the pension incentive. Seeking Financial Advice It may make sense to talk to a financial or retirement saving professional in order to get the best advice about what to do if your pension freezes. There may be courses of action open to you that you hadn't considered earlier. Your goal is to do what you can to secure you retirement savings for the future not stumble into a bad financial situation that will ruin your chances. |
| Should You Buy AARP Life Insurance Policies Posted: 16 Nov 2010 04:56 AM PST  For many people, life insurance remains an afterthought. Those who do start taking life insurance coverage seriously may become mired in indecision. Still, people are looking for dynamic coverage. For example, AARP life insurance plans provide a number of different benefits that can work for just about anyone. It really doesn't matter what your particular life insurance needs are, you may be able to find something here. But the question is whether you should buy AARP life insurance.
Make A Personal AssessmentYou can probably understand that life insurance needs will be different with each individual. At the same time, there are some important factors that will help to determine what form a policy may take. This is matter of asking certain questions. For instance, do you have family members that will need to be cared for in the event of your death? What would be a sufficient amount to let them live comfortably without fear of financial ruin? Maybe you have debt that needs to be handled. What are the expected costs of your final expenses? These factors will help you decide if an AARP policy is appropriate. The Difference Between Term and Whole LifeAs with any life insurance provider, when you make the decision to buy a policy based on AARP recommendations, you have to think about the type of coverage you want. This often comes down to the difference between term and whole life insurance. Naturally, whole life is good for the duration of your life, provided you pay the premiums. Additionally, you can accrue some added cash value on the policy – providing more incentives down the road. Term, on the other hand, is limited in scope. It is coverage for a specified period. You pick the duration for coverage at the outset. The big plus with term life may be that it's cheaper. AARP Benefits
Perhaps, the biggest advantage to those policies offered through AARP is that it provides benefits not readily available through other insurers. One major one is never being picked out to receive an increase on the costs of your premiums. Rate increases spread across entire demographic rather than touching individuals. Those choosing AARP policies do not need to get a physical exam. With a few simple questions, you can submit your application. This may be why the company enjoys one of the highest approval rates in the life insurance industry. |
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