How to Pick a Credit Counselor

Jun17
2013 Leave a Comment Written by admin

If you have really bad credit chances are that it’s mostly your fault and that you’re going to need to get over it and move on if you want to clean up your debt problems and get back on financial track.  (Sorry, that’s just us being honest and frank.) Many people with bad credit try and fix it themselves and this can sometimes make their problems even worse. Even if you’re quite adept at figuring out the numbers, it’s possible that you may wish to get some credit counseling in order to pay down your debt as quickly as possible and get your financial problems cleared up sooner rather than later.

Of course, like any other type of business there are excellent credit counseling companies and some that are not so excellent. The worst thing that could happen is that you go to a credit counseling agency with credit problems,  spend what’s left of your hard earned money, and don’t get any real help. With that in mind we put together a number of tips and tricks for picking an excellent credit counselor. Enjoy.

  1. There are a number of federal agencies and programs that the best credit counseling service companies should be a member of, including the National Federation for Credit Counseling. Ask any credit counselor to provide their affiliations before working with them. An agency that’s not affiliated with any should probably be avoided.
  2. Checking with your local Better Business Bureau, your state’s attorney general as well as any local consumer protection groups and find out if your credit counselor has any history of complaints. If they do, keep looking.
  3. You need to ask where your payments will be going and also about any additional fees. What you’re looking for here is that all of your payments are passed on in a timely manner to your creditors and don’t languish at the credit counseling agency’s office. If your agency can’t provide an exact and specific answer, keep looking.
  4. If the credit counseling  agencies and fees hinder your ability to pay down your debt, find another agency. The last thing that you want to do is go into more debt trying to pay off your debt.
  5. Any agreement that you make with the counseling agency should be in writing, no exceptions. ‘Gentlemanly agreements’ are a thing of the past.
  6. Beware of overblown statements and huge promises. The more they promise, the more likely they won’t keep their promise.
  7. Is your credit Counselor certified by an outside organization?  This can be helpful in finding someone that will put together a specific plan based on your individual needs rather than using a blanket recommendation.
  8. Can your credit counseling agency work with all creditors?  This is an important question as there are some agencies that are unwilling to work with creditors who don’t supply them with financial support. (It’s complicated.) No matter who your agency works with, they should at least be contacting all of your creditors.
  9. Ask your credit agency to provide information on how your money and your information are protected. Is your counseling agency bonded, or do they have sufficient insurance to protect your money should they themselves have financial problems? If you don’t find these things out ahead of time you might be in for a rude awakening later, so check ahead of time.
  10. Your credit counseling agency should offer a wide range of different services that are not just limited to counseling but also include education in different financial topics. A good idea would be to ask what services they offer, what the cost is and how they can be made available to you.

At the end of the day what you need to do is find a credit counseling agency that understands your situation specifically, can put together a plan that fits your current budget and has all of the failsafe’s available to protect you like being bonded and having insurance. A good credit counseling agency will be able to help you put your finances back in order more quickly, pay down your debt in a more timely manner and get back up on your financial feet more rapidly.

If you do your homework, a little bit of research and an honest amount of due diligence, you should be able to find a credit counseling agency that works great with you and helps you get through your financial struggles. Best of luck.

Posted in Uncategorized

A few relatively pain free ways to save extra money

Jun10
2013 Leave a Comment Written by admin

Let’s be honest, there are plenty of blogs around that will tell you how to save money by sacrificing things that you love or enjoy. Going to restaurants less frequently, staying close to home for vacation, buying less new clothes and even turning the heat down in winter and wearing more clothing  are all great ideas but aren’t exactly a whole lot of fun. Sure, we’re all looking for ways to save more money but it would be nice if it didn’t mean that we had to brown-bag our lunch every single day. With that in mind with put together a blog about some money-saving tips that don’t involve sacrificing on the things you love and enjoy.  We hope you enjoy it.

One of the very best ways to save money in the long run is to get healthy and stay healthy. That means staying in shape, eating the right foods, getting enough rest and taking care of yourself regularly. Not only will this save you money due to lower doctor bills and lower life insurance policy payments you’ll also feel better, have more energy and look great.

Most people just blindly pay their automobile insurance without ever giving any thought to shopping around or re-examining their policy to look for opportunities to save more money. One easy thing to do is raise your deductible, especially if your car is older and paid off, as it’s something that will immediately lower your premiums. Take a look at your policy and figure out how much the extra collision coverage is costing you. If it’s older, dinged up and being used as a spare car you can probably drop this coverage without any worries. Also get into the habit of comparing your insurance carrier and your price to other carriers on an annual basis. You can usually do this online in under half an hour.

For many of us this may be like closing the barn door after the horses have already escaped but keeping your credit score high may be one of the most important things you can do financially in the long run. Paying your home, car and credit card bills on time and keeping your credit utilization ratio low will, over a lifetime, save you thousands of dollars.

There are a number of ways to save as an investor.  For example, if you invest in mutual funds you should definitely stick with funds that have low expense ratios.  One expert recommends to keep the weighted average expense ratio for mutual funds under .50%, something that will save you a substantial amount of money when compared to funds that charge well over 1% in fees annually. If you are an active trader the same expert recommends that you stick with discount brokerage firms that will charge you $10 or less per trade.

On the home front,  one of the easiest ways to save is by combining your Internet, television cable and phone services together. Most of the major providers today will offer a substantial discount when you order all three of these services from them at once. It can be called a ‘triple play’ or ‘bundling’ and what it does is save you a bundle of money and also makes paying much more convenient as you only will receive one bill instead of three.

This might not work for everyone but it can save some people quite a bit of money. We’re talking about prepaid cell phones, some that charge just $.10 a minute. The best thing about prepaid cell phone plans is that there’s no need to commit to any long-term contracts whatsoever and, depending on your usage, you could literally save hundreds of dollars a year. Two of the best prepaid cell phone carriers on the market today are Net10 and Cricket but there are several others so do your research before you make your final decision.

This next tip will not only save you money but will also save you quite a bit of time as well. Shopping online is quick, easy and doesn’t include having to use your car (and expensive gasoline) to get many of the products and services that you purchase every day. Many companies have free shipping policies over a certain purchase amount and there are promo codes, discounts and coupons aplenty as well. Searching online to find the best price on larger items like large electronics and automobiles is also a great idea even if you don’t purchase those items online.

One last tip that we have is to find a cash back credit card. This is only a good idea if you already have excellent credit and also are very diligent about paying off your credit card bills every month. One of the keys with this type of card is to use it for your monthly bills and your everyday expenses, not for things that you really don’t need. If you’re keen on doing it, you can put your monthly bills on automatic payment with the card and then also use it for everyday purchases like groceries and gas. Again, it’s really only a good idea to have a card like this if you’re definitely going to be able to pay it off completely every month. There’s no sense using a card that will pay you $10 back a month if the interest charge per month is $20.

So there you have it.  Eight different ways that you can start saving money right away and not have to give up your $12 Starbucks coffee. (Actually, you should give up that $12 Starbucks coffee.) (Sorry, we just can’t help it.) Anyway, we hope that you enjoyed our newest blog and that you got a little bit of advice out of it. Make sure to come back and see us again soon as we are always giving out great advice like this about all things financial. See you then.

 

Posted in Save

Financial Mistakes that you Should Avoid like the Plague

Jun03
2013 Leave a Comment Written by admin

Today’s consumer is much more savvy then consumers of days gone by. One of the reasons is that the Internet allows us to see and compare prices and services much more easily than ever before. That being said, there are still plenty of financial mistakes that many people make that are costing them loads of money. Most of them are easily corrected however and it is for this reason that we put together our blog today, to show you, our dear readers, what some of these mistakes are and what you can do to avoid them. Enjoy.

One huge mistake that many people make is avoiding going to the doctor and skipping annual physicals and dentist appointments. This is not only a classic money mistake but also a classic health mistake as well and one that should definitely be avoided. For example, in the last five years there has been a 16% increase in emergency room visits for dental problems. This could easily be avoided by seeing your dentist the recommended twice a year and, when you consider that an ER visit costs approximately $6500 as opposed to 2 visits to the dentist that cost approximately $600., it doesn’t take a rocket scientist to figure out which choice is best.

Having a yearly physical and getting your eyes checked at least once a year are also vitally important to making sure that any small problems that you may not know about with your health are detected before they become big problems. Not only is it much  more economical to treat a health problem when it is small it is also much safer.

Many people like to lease their cars and, for the most part, there’s not a lot wrong with doing so financially. The problem comes when a person has a change in their life or in their job during the time that they’re leasing the car and suddenly find themselves driving it quite a bit more. Since most lease  arrangements have a yearly mileage of 10,000 to 12,000 miles per year with a charge of $.10 per mile over that limit, a person stuck in a lease may suddenly find themselves paying a huge amount of money to drive their car.

Another big mistake that many people make is that they don’t put enough money away for retirement. In fact, there are many people who put absolutely nothing away for retirement, a mistake that will undoubtedly leave them in a situation that is financially difficult someday. The fact is, with  the tax free contribution limit at $17,500 and many employers matching contributions up to 6% of your salary, not taking advantage of this retirement opportunity means leaving a huge amount of money on the table. Even if you are self-employed there are plenty of ways to take tax-free advantage of your money using retirement plans and these plans should definitely be part of your financial planning.

Not having a last will and testament or doing it yourself is a financial mistake that lots of people make. While it’s true that hiring an attorney to draft even a simple will can easily cost $500 or more, the fact is that without a will much of your money and other assets will  be lost to court and legal fees. A great example of this comes directly from the Supreme Court of the United States. Supreme Court Chief Justice Warren Burger, a man that you would think would have an incredible amount of legal experience, famously decided to write his own will. When he passed, because of the fact that his will was badly written, his family ended up spending nearly $500,000.00 to get everything sorted out. (If that isn’t example enough for you then frankly we don’t know what will be.)

Many people make the financial mistake of buying health insurance that has the lowest premium. While we will readily admit that having so-so health insurance is better than having no health insurance at all, the fact is that people who purchase health insurance with the lowest premiums usually end up paying more annually for them due to co-pays and costs that aren’t covered. In the end, the premiums may be cheap but the annual cost makes up for it, saving you absolutely nothing.

The last mistake on our list today is using the cheapest moving company when you’re moving long distance. This is a mistake that many people make because they just don’t know how the moving industry functions.  The fact is, a moving estimate is just that, an estimate. Most larger, well-known moving companies will send a moving salesman to your house to estimate the cost of your move, including how much weight will be moved and how many boxes that you will need to pack everything. Once your move is finished the  actual amount of boxes used  and the actual weight of your shipment will be determined and your final price will be based on  those specific numbers. If you picked the lowest price but it was the lowest because the estimated amount of weight and boxes were too low, you may be in for a big surprise when you’re moving truck arrives at choose new home.

Think of it this way; if you go to a  deli and ask for  16 ounces of Swiss cheese but the attendant gives you 18 ounces instead, you will definitely be paying for 18 ounces (unless you ask them to take 2 ounces away). With moving it’s the same thing. If they estimate that your weight will be 5000 pounds and that they will need 50 boxes and the weight ends up being 5600 pounds and they use 72 boxes, you will need to pay for the extra 600 pounds and the extra 22 boxes. It’s not unfair per se but it can be one heck of a financial surprise when they arrive with the bill. When you factor in that many moving salespeople will underestimate the amount of weight and packing that you have in order to make it appear as if their price is better, you realize how dangerous it can really be to choose the lowest priced mover.

Are you making any of these financial mistakes? If you are we hope that we’ve given you enough advice to be able to stop and set your financial ship straight. Knowing what kind of mistakes you are making is half the battle, the other half is knowing what to do to stop making them. We hope we’ve provided that information and we invite you to come back and visit us sometime soon for more excellent information on all things financial. See you then.

Posted in Personal Finance

The Top 10 States that Retirees should Avoid

May21
2013 Leave a Comment Written by admin

When it comes to retirement one of the most popular solutions that people make to lower their cost of living is to pick up and move from one state to another. While in many ways this is a solid financial choice there are many factors that need to be taken into account before leaving for what might seem like greener pastures. The fact is, while there are some states that have no state taxes, the same states usually make up for that fact by charging higher taxes elsewhere. Other things like crime rates, cost-of-living and access to medical care are also important to keep in mind if you’re considering moving to another state in retirement.

Recently  there was a list out by Bankrate that analyzed a number of different things and their findings were very interesting, to say least. We bring you those findings (in rather abridged form) about the 10 worst states to live in the United States if you’re going to retire. Some of them may look good from the outside and indeed steal your heart but, when you look deeper, you will find that they are lacking in one way or another that is important to retirees.  We’re not saying that these states aren’t beautiful, just that they aren’t exactly what we’d call ‘senior friendly’. We’ve listed them in descending order from worst to first. Enjoy.

Delaware, while boasting excellent beaches, hiking trails and other natural amenities in abundance, can also be quite tough on retirees. While it’s state and local taxes are low the cost of living is higher than average, access to medical care is quite a bit below average and Delaware happens to have one of the highest crime rates in the country (even though it’s one of the smallest states). While it might be called the First State, Delaware certainly isn’t the 1st state that you should consider moving to if you’re going to retire.

With weather that is some of the coldest in the entire country and a cost of living that makes your wallet feel cold, Minnesota is one tough place for retirees no matter what Garrison Keillor might want you to believe.  Not only do state and local taxes eat up your retirement money faster than  a hungry teenager but, when you combine that 10.8% will with other taxes including property and sales tax, you find that Minnesota has the second-highest tax situation in the United States. While their crime rate is below the national average and their access to medical care is good, the combination of snow and taxes is one that retirees should definitely avoid.

Tied at number seven are Maryland and Vermont because both have a high cost of living and high state and local taxes. While Maryland has average temperatures Vermont has long cold winters that can be tough on retirees. Maryland might not get the snow but they certainly get the crime as it’s worse than the national average, one of the main factors being that it’s so close to Washington, DC. Of course Maryland does boast many other attractions as well as Vermont, attractions that may be enough to bring their retirees in. (Just don’t say we didn’t warn you.)

Another state that can be quite cold, with an average temperature of about 42°, is Maine. In fact it’s colder than every other state except North Dakota and Alaska. Add that to the fact that Maine’s  cost of living as well as their state and local taxes are some of the highest in the country and  you clearly see why it falls on this list. While it does have a lower than average crime rate and excellent access to medical care the temperature and the taxes make it hard state to love for retirees.

At over 11% local and state taxes and with a  cost of living is well above the national average, Wisconsin comes in at number 5 on the list. It’s also one of the coldest states in the country so, even though it does post a low crime rate and some fantastic scenery, it’s hard to enjoy them when there’s 5 feet of snow blocking you from leaving the house. Unless you’re prepared to put on your snowshoes and fire up the snowmobile you probably should look at another state if you’re going to be retiring soon.

Like a fancy restaurant California keeps increasing their prices on everything and, in fact, has one of the highest costs of living in the country. Besides New York, New Jersey and Connecticut, California has the highest state and local taxes and has higher than average crime and lower than average access to hospitals and healthcare. While there is much to be said about their beaches, vineyards, sunshine and abundant nature the simple fact is that, at least for retirees, California is no picnic.

Washington state’s number three on the list and, although it has stunning natural beauty, it also has a crime rate and cost of living that are both well above the national average as well as being one of the coldest states in the nation with an average annual temperature of only 50°F. While in Washington is one of nine states where there is no personal income tax they more than make up for it in state and local taxes that are near 9.5%.

With a cost of living that’s the second highest in the nation (Hawaii is number one), Alaska is also one of the most extreme states when it comes to cold weather and is by far the coldest state in the United States with an average temperature of just under 36°F. While it doesn’t charge its residents sales tax or state income tax and indeed has the lowest tax rate in the country, the cold is just one factor that can’t be ignored, especially for retirees.

And number one is the state of Oregon which, unfortunately, is bad for retirees on a number of levels.  It is higher than the national average in terms of crime rate, state and local taxes and cost-of-living and it is also one of the coldest states, with an average yearly temperature of just under 53°F. These things put it at number one on the list even though Oregon certainly has plenty of opportunities for people to experience many brilliant outdoor activities.  Still, for the average retiree, this beautiful state should only be considered as a place to visit, not to live.

As we said when we started, this list should not be misconstrued as our way to put down any of the lovely states included herein. Retirement and retirees come with a very different set of needs and, simply put, these 10 states just don’t supply enough of them to make them worth moving to (especially if you are living on a retired person’s budget). We hope this blog has been helpful and that it has given you some useful information whether you’re retiring now or not going to be hitting your golden years for a little while longer. Make sure to come back and visit us again soon for more excellent information about a large range of topics. See you then.

Posted in Personal Finance

Is Going to College a Smart Personal Investment?

May15
2013 Leave a Comment Written by admin

College is increasingly getting more and more expensive. Whether you are on campus or online, it unfortunately seems that increasingly, people are having a significant amount of difficulty paying for college, and it’s getting tougher and tougher to make ends meet for students in school.

So with that being said, really only one question can be asked when it comes to college and making it happen: is college really worth all the money that it costs, and would it really be worth it to you for your specific needs and desires with a job?

Let’s review a few major ideas as we try to figure it out:

Yes!!

First and foremost, yes! College is worth it because you aren’t just learning about your specific subject-  you are learning about so much more than that, including how to study, how to write, how to read, and how to think critically. Beyond that, too, you are learning invaluable social skills that can really, truly help you as you move forward in your life and get better and stronger as an individual in time.

…But Not For Everybody

Let it be known, though, that college truly isn’t for everybody. For some people, there are more important things than college and for some people, vocational training is more critical when it comes to getting the most out of the experience regarding their education. For that, then, you need to weigh your options when it comes to deciding whether or not you might want to go to a higher education experience, or whether you would be better with some sort of vocational training to learn a career.


Weigh your decisions and your maturity

All in all, though, it’s pretty important that you weigh your decisions together in a mature way when it comes to deciding whether college is right for you. It may very well be that college simply isn’t perfect or right for you, and that you may just need to see to it that you enjoy a few years off before you get back into life and more regarding your education and your career.

From there, it’s important to understand that college is a positive thing, and it is important to enjoy that experience in your life, while still understanding that your life and your college experience may look differently from everybody else’s when it comes to getting the most out of your higher education.

All in all, college is a great experience, and is one that should be undertaken by you if you have the majority, the focus, and the concentration, as well as the desire. From there, though, it’s critical that you keep your mind open regarding your options around college, as many things can happen without you understanding the best path until it’s almost too late!

Posted in Personal Finance

Using a Credit Repair Company to Save Your Finances

May09
2013 Leave a Comment Written by admin

Many people experience credit problems, whether from too much credit card debt or other financial problems. How you got there, though, doesn’t really matter – it’s all about how to get out of that situation safely and quickly.

You’ve got two options when it comes to repairing your credit – either do it yourself, which is timely and difficult, or hire a smart and reputable company to do it for you. Fortunately, credit repair companies can do wonders to repair credit and restore your good name with banks and creditors, and it can happen almost overnight!

Many good credit repair companies can boast years of service and expertise in repairing the credit scores of hundreds or thousands of people. Many credit repair companies have staff members who used to work for the major credit bureaus, and who can easily and effectively repair your credit due to the fact that they understand the nuances of credit repair, and what it takes to fix bad debt both efficiently and effectively.

For most people with a poor credit history, it takes a great deal of time to fix mistakes on your credit report and get the application cleaned up. From dispute letters, to getting items removed from your report formally, professional credit services takes the time that you just don’t have to repair credit for you professionally, and while understand the system and process.

Any item that you have removed from your report by a repair company is typically guaranteed to never come back, too, so any time you work with a good credit repair company is a time you need not worry about credit problems returning after time.

When you use a credit repair company, another benefit of their service is that many firms also teach you about financial self-sufficiency, and provide for you tools and lessons on how to manage your own finances. That way, you never again have to worry about falling into poor credit, since your work with the repair company will teach you what not to do in the future.

When searching for a credit repair company, start online. The best companies will consistently have the best reviews on various websites, and the greatest amount of satisfied customers who are happy to discuss their experiences and positive thoughts.

Credit repair companies also allow for you to save a considerable amount of money in using their services, and it is in your interest in the long-term to do so. Companies can restore your credit faster, more efficiently, and more fully than you can do on your own, and handing off a need to a qualified credit repair company allows you some piece of mind and knowledge that you are in good hands.

Nobody likes dealing with poor credit, but the options are made immediately better by taking on the solution with a professional, reliable partner – and for a little bit of money for their services, a good credit repair company can make your life significantly easier and better!

Posted in Credit

Nothing is for Free in this World

May04
2013 Leave a Comment Written by admin

I’m an MBA with a finance background, and I can attest that there is no such thing as a free lunch!  I learned the concept in my 12th grade economics class, but it didn’t resonate with me for years.  It takes quite a bit of growing up, a steady paycheck, mortgage, and unexpected life changes to really teach you the meaning of that statement.  Consider my reasoning below, and tell me what you think.

I used to think water was free, but in fact I couldn’t have been more wrong.  No, I’m not talking about bottle water, which can be quite an expensive habit, but rather the “free” stuff that comes out of your tap.  Well as it turns out, I actually pay about $150 every 3 months for this so-called “free” water.  It just so happened my parents used to pay for it when I lived at home.  If you have a sprinkler system, or worse, a pool, you will learn very quickly just how expensive water can be.

Less expensive gym memberships, I used to think staying in shape could be done for free.  All you have to do is take a few brisk walks each week, maybe jog a little, play some tennis or racquetball.  This is when the appropriate attire is required.  You can’t go jogging in jeans and loafers.  Instead, you need the right kind of shoes that can support the wear and tear, and some comfy clothes to make it all bearable.  Others feel the need to buy an iPOD and pedometer as well.

Forget the movies, stay at home and watch some television.  Yeah ok, this is definitely a much cheaper option, but it is far from free.  I will make the assumption you at one time had to foot the bill for the television, and most likely the couch you are watching it on.  But furthermore, you pay for electricity to turn that tv on, and probably the cable you are watching as well.

How about just stepping outside for a breath of fresh air?  Yeah I will give you that it doesn’t cost a dime to do that.  But, where are you stepping out at?  Presumably the home in which you pay a mortgage, monthly utilities, amongst regular upkeep and maintenance. I know it seems like a stretch, but unless you are homeless, stepping outside still costs you money when you think about it.

I stand by that there is absolutely nothing for free in this world anymore, just some things that happen to be less expensive than others, but in the end you will still pay!

Posted in Personal Finance

Retirement Wealth Building Tips for people in their 40a & 50s – Part 2 of 2

Apr29
2013 Leave a Comment Written by admin

Just as we did in Part 1, Part 2 of our two-part blog on wealth building tips for people in their 40s and 50s is going to give you, our dear reader, a wheelbarrow full of tips and advice about how to build wealth and how to put it away for retirement. So if you’re ready to get going so are we. Enjoy.

It used to be that once a person found angood, stable job with an excellent company they would stay there for most of their adult working life. These days that’s far from the norm of course and, truth be told, with fewer jobs that are going to be at your particular skill and experience level you’re going to have a tougher time finding a new one should layoffs or other unexpected changes occur.

With that in mind it may be time to give your resume a facelift. If you haven’t done that in more than 10 years you’ll definitely want to freshen it up. As far as we’re concerned you can basically get rid of everything that you did from 10 years ago and further out.  Employers are certainly looking for experience but they also need to be able to make decisions without having to read through a thick book of yours.

That being said that your experience can also be an incredible boon to your job search. What you’ll need to do is take your time and find companies that are actively seeking workers with a high level of experience. For help with this you can go to the AARP website or to social media site LinkedIn as well as CareerBuilder’s Prime at www.primecb.com .

It would also be in your best interest to become a mentor or protégé as managers who are will earn an average of over $25,000 a year more than their peers who are not. As found by a 2012 workplace study, it has been shown that the ability to develop talent is valued among many companies.

One important statistic to keep in mind is that a high level executive over 50 needs about 20% more time to find a new position. One way to interest prospective employers is to have plenty of new skills on your resume and be adding them constantly. While what you’ve learned and what a perspective company needs may not be exactly the same the fact is that any show of interest in continued education is appreciated by many different businesses and proves you have the ability to adapt.

Research has also shown that people who take the advice of their 401(k), including their advice on offerings, target date funds and earned median investment returns, were able to get nearly 3 percentage points more per year in interest, which can over time add up to a good bit of money. There’s also shown that those investors who really did their homework and financial planning had an average wealth of over $300,000. Compare that to someone who has not done any or little financial planning at $122,000 (by age 50) and the difference is large and obvious.

Speaking of financial advice, if you’re getting paid professional financial advice you’d be surprised to know that there’s a 60% chance that you don’t exactly know what they charge or what you are paying. Figuring that out is no picnic either especially if you have several layers of fees or you own annuities. Your best bet; ask your advisor to please spell out exactly what they make and why they make it so that you can decide on your own if their help is worth what you’re paying.

While we fully admit that our advice here is kind of all over the board we think it’s valuable and we hope that you gained some insight today. No matter what age you happen to be, planning for your retirement should be at the very top of your to-do list. Even young adults in their 20s need to seriously look at their retirement plans because, frankly, the ones that do are generally the ones that will retire much more comfortably. If you are closer to 50 then 20 you’ll definitely want to get on the ball ASAP, so keep that in mind and also make sure to come back and visit us soon for more advice on everything financial. See you then.

Posted in Save

Retirement Wealth Building Tips for people in their 40a & 50s – Part 1 of 2

Apr23
2013 Leave a Comment Written by admin

When it comes to funding your retirement and investing there are different needs and different tasks that should be accomplished depending on where you are in your adult life. If you’re between 40 and 50 years old then you’re in luck because this wealth building tips blog was made just for you. What we’ve done is put together a smattering of advice, information and the usual great stuff, all of it pertaining to what you should do as far as retirement funds and investing just before you hit the half-century mark. Enjoy.

One of the most important things to note is that, between the age of 40 and 50 years old, you will probably be at your peak earning level. It’s for this reason that you need to really ramp up your savings and sock as much money into your IRAs as possible. Yes, you’re making more money than you’ve ever made and there will be the temptation to spend it and ramp up your lifestyle but, unless you are also able to invest enough to keep that lifestyle going, you’re going to be in trouble once you stop working.

Based on research done at Columbia University and the University of Chicago, it was found that the best way to motivate yourself to save for retirement is to take some time and envision what your life will be like in 20 to 30 years. Researchers found that, when a person feels a stronger connection to their future self, in many cases they will be more willing to put off and wait for a reward, which in this case would be retirement with no financial worries.

If you’re keen on taking a look at yourself in the future you can surf to www.faceretirement.com and have a picture created of what you will look like.  It’s fun but a little scary.

Continuing on this topic, it is been found that nearly half of all successful retirement savers (and by successful we mean that they were able to build a retirement fund equal to 10 times their pay) saved at least 15% of their total income over a ten-year period. Also, it has been shown that people who use yearly bonuses to fund their retirement, what they call ‘burst savers’, were very successful because they put raises, bonuses and banner commissions into savings rather than spending them on bigger homes, cars and bills.

50 is a big number as far as birthdays go but also as far as your retirement plans because, once you reach the big 5 0, you can start making catch-up contributions to the tune of $5500 in your 401(k) and $1000 in your IRA. Another federal rule that will help you if you earn more than $113,700 is that this number is the maximum income subject to Social Security taxes. Successful savers are the ones that take the resultant extra money in their paycheck and stuff it into their retirement funds.

During these years is when many people who are also parents face another huge expense; college costs. Indeed, many moms and dads raid their 401(k) to cover college costs but it’s possibly one of the worst things that you can do with your money. Not only that but, with college costs skyrocketing, one of the smartest things that you can do is make sure that your child graduates in four years or less. Experts will also advise that if you have to resort to PLUS loans you probably can’t afford the college to begin with and also that you should not borrow any more than you can definitely repay within 10 years or by the time you retire, whichever of the 2 comes first.

We hope you’ll agree that we’ve put together some interesting, important and valuable information here for you. That does it for Part 1. When you get a moment make a note somewhere to come back and visit us for Part 2 very soon. See you then.

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Money Saving Tips for Prom Season

Apr14
2013 2 Comments Written by admin

Prom season is fast approaching and with it the ever increasing costs that going to the prom incurs. In the United States going to prom is a rite of passage that all teenagers should be able to enjoy but the fact is that the cost of going to prom gets higher every year, especially when you have teenagers trying to one-up each other with more expensive clothing, limousines, after-prom parties and so forth. With that in mind we put together a blog featuring some of the best tips for saving money on your son or daughter’s prom because, let’s face it, we all know who’s going to get the bill when everything is said and done. Enjoy.

  1. When it’s time for renting a tuxedo you should definitely shop around because, frankly, tuxedo rental stores are all competing for your prom dollars and if you let them know that you are shopping around they will usually start breaking out the discounts.
  2. Taking a disposable camera to the prom is a good idea for several reasons. First, it will save money on hiring a professional to take pictures and second, a disposable camera only costs around $20 so there’s a lot less worry about it getting lost or stolen.
  3. Purchasing a prom dress before or after prom season or buying a secondhand prom dress from someone who went to prom last year are two great ways to save money.
  4. Purchasing shoes for the prom should be treated like any other purchase. Shop around, compare prices and try to find the best deals.
  5. If your team is keen on renting a limousine for the prom try to get a few other couples to share the ride and thus share the cost. This will lower your costs significantly, obviously, and also assure you that your teen won’t be driving, which is a much safer option and it can help keep your anxiety down on prom night.
  6. Hosting a hair and makeup party before the prom will save big bucks on the high rate of going to a salon and can also be a lot of fun.
  7. The ‘vintage look’ is very trendy right now and borrowing jewelry from older relatives or finding something at the thrift store will save you big bucks and help your teen to keep trendy on a budget.
  8. If possible, choose a dress for your daughter that can be used for other future occasions like dances, holidays and so forth.
  9. Many of the large – chain grocery stores have discount florist that will save you money on corsages and other flower needs for the prom.
  10. An excellent idea is to sit down with your teen and put together a prom budget. Many times your son or daughter will have no idea what the actual cost of the prom is and making them put a budget together will not only show them just that but also help them realize that going to the prom isn’t cheap. It can also give them a great lesson in how money works and help them get started with their own good financial habits.
  11. If you do decide to use a budget don’t put a definite cost on it until your teen and you have done some research into the final costs. This will ease some of the tension that they are often tends to be between teens and parents when talking about money.

Prom can be a lot of fun and we recommend that every team go to at least one during high school. We hope that these tips will help you and your son or daughter to not only have a great time at their problem but also to save some real money while doing it. Please make sure to come back and check with us frequently as we will be offering more money-saving blogs like this one covering all sorts of different topics in the future. See you then!

Posted in Save
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