It Allows Just About Anyone To Save For College

Category: Finance, Financial Planning.

With higher education tuition increasing at double digit year over year percentages an effective saving plan for your kid s education is becoming much more important than it has been before. This leaves many kids to be faced with obtaining financial aid to pay for a portion of their college education.

Most families will discover that their future higher education costs will be much more than they have saved for their kid s education. The goal of this article is to explore the pros and cons of 4 common investment options when saving for college. It allows just about anyone to save for college. This article will also explore why some of these options are better than other when considering a portion of your kid s education may be funded by financial aid. 529 College Savings Plan: - A 529 college savings plan is a fairly new investment option for college saving. There is a long list of benefits of a 529 college savings plan, but perhaps the most important is that your earnings grow tax free if you use it for qualified education expenses. In the event you do not use the funds for college, you can still withdrawal your earnings, but you will have to pay taxes and a 10% penalty.

Additionally, the maximum amount you can contribute to a 529 plan can go as high as several hundred thousand dollars depending on your State. The penalty will be waived if your child receives a scholarship, or your child becomes disabling or dies. 529 plans can typically be purchased through a broker or mutual fund company, but a disadvantage is that investment choices can sometimes be limited. Uniform Gifts to Minors Act/ Uniform Transfers to Minors Act. (UGMA/ UTA Custodial Account) : - The benefit of a UMGA/ UTA Custodial Account is that there is no limit on the contribution and it is easy to set up at most financial institutions. Since qualifying for financial aid is based on a calculation that considers your kids assets, another big benefit of a 529 college savings plan is that the money in the plan is classified as a parents assets so less that 6% of the value counts against your kid s financial aid eligibility. However, the limitations far outweigh the benefits. If your child is under 14, only the first$ 800 of income is tax free, the next$ 800 is taxed at your child s tax rate and after that there is no tax benefit at all.

The first limitation of a UMGA/ UTA Custodial Account is that these types of accounts offer very little tax advantage. The other big limitation is that the account has to be set up in your child s name. Therefore, this type of account is not advisable for those who may need financial aid. As a result, if your child needs financial aid all of the assets will be reviewed at a 35% rate. Coverdell Education Savings Account( CESA) : - A Coverdell Education Savings Account is very similar to a 529 college savings plan. The account is classified as a parent s asset so less that 6% of the value counts against your kid s financial aid eligibility.

The main difference is that with a Coverdell Education Savings Account you can only contribute$ 2000 per child and to qualify your adjusted gross income must be less than$ 110, 000 if single and less than$ 220, 000 if married filing jointly. In the end, parents should consider planning for college to be a highly important process. Copyright( c) 2005, by Jay Fran. The above 3 alternatives can make this process much more easy and financially sound. This article may be freely distributed as long as the copyright, author s information and the below active live link is published with the article.

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Money And Fun Aren T Necessarily Words That People Automatically Put Together - Finance and Financial Planning Articles:

Money and fun aren t necessarily words that people automatically put together.

Many People Fail To Understand The Importance Of Estate Planning - Finance and Financial Planning Articles:

Many people fail to understand the importance of estate planning.

If You Took Out Index Funds, The Gap Was Almost Two Thirds Of A Point

Category: Finance, Financial Planning.

The financial industry must continue to ask itself, "Why does the public needs us? " I know this question makes many financial advisors feel uncomfortable. Why?

But if we do not continue to ask ourselves this question, we could find ourselves out of a job. Whether we ask ourselves this question or not, others are asking it. What they found does not reflect well upon the financial advisor community. This perennial question of, "Why does the public need stockbrokers and financial advisors" has been raised again by three professors in their paper, "Assessing the Costs and Benefits of Brokers in the Mutual Fund Industry. " In this paper, Tufano, professors Bergstresser, and Chalmers uncovered why consumers pay advisors to choose mutual funds for them. Do Financial Advisors Help Clients Choose Better or Better Performing Mutual Funds? Unfortunately, Tufano and Chalmers, Bergstresser found the reverse to be true. Most financial advisors tell clients that their chosen funds will perform better than direct purchase mutual funds.

They found that investors suffer by paying on average 6 percentage points in front- end load fees, as well as higher annual marketing costs in the form of 12b- 1 fees. In a recent year, not only did investors pay about$ 15 billion in sales charges and 12b- 1 fees, but they spent an additional$ 24 billion on management fees. They also found that the financial advisor recommended funds underachieved as compared to the direct purchase mutual funds. Think about this, these investors spent nearly as much paying advisors to find the funds as they did to the money managers to manage the funds. Did they? With this being the case, financial advisors had better do a great job finding funds for their clients.

Investors who bought directly from the mutual funds earned almost a half a percent higher than those that had advisor recommended funds. But wait there s more! If you took out index funds, the gap was almost two thirds of a point. These differences were calculated before accounting for 12b- 1 fees. So Why Do Investors Use Financial Advisors to Pick Their Mutual Funds and Investments? When included, funds bought directly beat advisor recommended funds by almost a full one point.

The average mutual fund investor is higher educated and wealthier than the average consumer. I believe one of the authors of the study to be charitable when he hypothesized that advisors bring a service to their clients by taking the emotion out of investing. So it can t be because they don t think they re capable of doing it themselves. Though when you look at the data, it appears that investors using advisors chase short- term returns as much a self- directed investors. This study uncovered yet more unflattering details. And yes, it was found that advisors are as likely to chase short- term returns as anyone. It found evidence that brokers usually recommend funds with higher loads.

It doesn t take a rocket scientist to figure out why too many advisors do this. So not only do advisors generally not pick the best mutual funds, they also recommend underperforming funds with a preference to higher sales loads. The question is, what as an industry are we going to do about it? Every change starts with one person. What You Can Do as a Financial Advisor to Change How People Perceive You. How much research are you doing for your clients?

Are you providing service equal to the amount of extra fees a client pays for the funds you recommend? Whether consciously or unconsciously, are you recommending funds with higher fees? Only you can answer these questions. Studies like" Why does the public need stockbrokers and financial advisors" are going to come around, become distributed and get publicized more often. We are in the information age. You might as well get used to it.

The public does not mind paying fees. As financial advisors we need to step up to the plate and start doing the right thing by our clients or we re going to find ourselves out of business, one advisor at a time. What they do mind is an advisor not disclosing the fees. Instead, we should fully disclose them and explain to our clients why our advice is worth it. If we think we are worth the fees, then as financial advisors we should feel no need to hide the fees. The public knows that we do not have a crystal ball that enables us to find the best performing mutual funds going forward. There is an ever so slowly growing trend toward full disclosure vs. casual disclosure by advisors in the financial industry.

But the public does become suspicious when all the funds we choose have higher than average expense and sales charges. Another movement gaining speed is that of formal fiduciary relationships with clients. I hope you join me as part of this trend of full disclosure and fiduciary responsibility, for everybody s sake. Both these movements assure a long and profitable partnership between advisors and their investor clients.

Start- Up Loans

Category: Finance, Financial Planning.

Knowing the correct type of loan to ask for is essential in getting the bank to approve your desired loan.

Also, business owners have several types of funding choices, based on various factors about your business. Banks have many different loans available and it is necessary for you to have a written business plan in place before approaching the bank of your choice. Some of the programs available through the Business Credit Services are below. These loans are secured by collateral. Types Of Business Loans( Explained Basically) Secured Working Capital Loans. The lender will take a security interest in your property. Most lenders will require collateral to secure a small business loan.

If you do not pay the loan back the lender has the right to seize your collateral. Lenders will not lend you more than 100 percent of the value of your collateral and will usually only lend you 60 to 80 percent of its value. As the name implies, these are loans that are not secured by any collateral. Unsecured Working Capital Loans. Credit cards, while not technically loans, are the most common example of unsecured debt. It is very. very rare to find a lender willing to give you an unsecured loan for a new business. The lender is loaning you money based on your reputation and credit worthiness.

Because you have no track record for them to work from. Loans for the new or start- up businesses. Start- up Loans. Commercial Real Estate Loans. Business Acquisitions. Commercial Real Estate loans with fixed or variable terms.

Loans to acquire an existing business. Accounts receivable serve as collateral for short- term working capital loans that you ca obtain fast and cost effectively. Accounts Receivable Factoring. Merchant Account Cash Advance. Franchise Start- up Loans. Up to a$ 50, 000 advance against regular occurring monthly merchant credit receipts.

Specialized financing reserved for the franchises of recognized, franchises, typically nationally known. Loans to small businesses from private- sector lenders( banks, etc. ), which are guaranteed by the SBA. SBA Business Loans. The SBA has funds for direct lending or loans to small businesses with long- term, fixed- rate financing for major fixed assets, such as land and buildings. A pre- arranged amount of credit based upon existing inventory, A/ R and POs or up to$ 200, 000 in business credit based upon credit worthiness with no collateral. Lines Of Credit.

Equipment Leasing. Hard Money Equity Loans. An easier way to find financing for your equipment needs and obtain tax benefits at the same time. Loans available that are typical hard to obtain from a local bank lender. If you have existing equipment, sell it and then lease back the equipment. Equipment Sale- Lease Back.

Essentially you get cash for your equipment and then lease it back. Loans for home or commercial construction. Construction Financing. Business Only Loans. Residential Equity Lines. Loans can be obtained in the business name without the use of personal credit as long as the business can justify the loan amount and ability to pay it back.

Lines of credit secured by the equity in your home. So study before heading to the bank and it will help you with many of the questions you will have. There are also short- term and long- term loans with the above.

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The Way In Which Asset Allocation Dovetails With Ancient Wisdom Is That It Turns Our Focus Inward Rather Than Outward - Graciela Dino about Finance and Financial Planning:

Advances in investment theory have dovetailed nicely with ancient wisdom to present investors with a new and exciting paradigm for investing. Markowitz.

Not Having Savings Often Leads To Debt Spending - Casey Colston about Finance and Financial Planning:

Saving Money is the key to financial freedom. Inside many people simply feel that life is for living now, not for sometime never in the future and anyway they already contribute to a 401k.

So- What Does Retirement Mean For Them - Finance and Financial Planning Articles:

I propose that we throw out the term" retirement" and replace it with" The Harvesting Phase" .

Don T Give Your PIN To Anyone- Not Even The Police Or The Credit Card Company

Category: Finance, Financial Planning.

The new Chip& Pin credit card system has been officially in use for several months now, but in some cases you ll still be able to sign rather than use your Chip& Pin.

You ll also still be able to sign for your purchases if the merchant doesn t yet have a Chip and PIN reader, or at many overseas merchants. Specifically, if you are disabled and cannot enter a PIN, you ll still be able to sign for your purchases as you always have and the cashier will compare credit cards with your signature as always. As of February 14, all credit card, 2006 customers should be have and be using the new Chip& PIN cards that have been issued since late 200The Chip& PIN card is meant to make credit card purchases more secure and cut down on credit card fraud, a goal that is already happening, who report that, says APACS credit card fraud was down by 13% between January 2005 and February 200In order to fully benefit from using Chip& PIN cards, though, it s important that you follow some safe- use rules for your new card. Choose a safe PIN. - No more than two numbers in sequence. - No more than two of the same digit. - Don t use easily found personal data like your full birthday. - The safest PINs are randomly generated numbers, but you can make a PIN that s easy for you to remember and hard to guess by combining two numbers that have personal significance to you. Don t give your PIN to anyone- not even the police or the credit card company. Try something like the street number of your first house and the day your youngest son was born, for instance.

Stand so that no one can look over your shoulder or read the keypad. Be careful when entering your PIN at the till. Safety isn t the only thing you should take care with when it comes to credit cards. Before you apply for any credit card, compare credit cards online to be sure that you re getting the best credit card deal for your situation. Start being careful from the beginning when you choose a credit card. When you compare credit cards, be sure to read all the fine print in the card member agreement to avoid any surprises from unexpected fees and charges when the account comes due. Depending on your situation, you may not qualify for the best credit card rates and fees.

Some points to compare when you re deciding on the best credit card are: - APR( Annual Percentage Rate) - Annual fees if any. - Late payment charges. - Method of calculating interest. - Rewards for using your credit card to shop. If you ve had trouble with your bills, you may be, for instance offered a bad credit credit card with a higher rate of interest than the typical rate( the APR that is offered to at least 75% of those that qualify for credit with that company) . As with any other kind of credit card, there are many companies that offer the so- called bad credit credit cards. If that happens, don t think that you have no other choice. Just as you would with any other credit card offer, be sure to compare credit cards against each other to make sure that the one you choose is the best credit card offer that you can manage. Taking care up front can save you money over the long run.

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Greater Income( Return) , Always Entails Greater Risk - Finance and Financial Planning Articles:

There s an old adage in the brokerage community that you should speculate for growth, not for income. The point is that you should take risk with investments which you expect to increase in value, i. e. , stocks, but not with investments made to generate current income, i. e. , fixed income securities.

You May Still Be Subject To State Gift Taxes - James Geraghty about Finance and Financial Planning:

Doris from Minnesota is considering transferring her assets to her son so they won t be lost to Medicaid should she need assisted- living or nursing home care. One of the greatest financial risks seniors face is the rising cost of healthcare, including the cost of custodial care in an assisted- living facility or nursing home.

Should You Trust Or Not Trust - Finance and Financial Planning:

Living Trusts have become very popular and are being heavily promoted to seniors. That is the question.

Step One- Your Income

Category: Finance, Financial Planning.

Are you tired of sleepless nights when all you can think about is how can I fix my credit score? Most of us fail from time to time to handle our credit correctly.

If so, I will let you in five easy steps which could just keep your head over the stormy water. This might lead you to some hectic times. But every one can control his life and in few simple steps you can see the light at the end of the tunnel as well. You might find your- self and your family in chaotic financial situation. Step one- Your income. This should include: your income, bank savings with interest, property which bear, funds fruits, etc.

Create a list of all the income sources you have. Sum these sources to one solid number. Step two- Your spending. This number will be the ground to all future calculation. Create a list of your spending: food, school, bills, cables, your gardener, hobbies, house- keeper, mortgage, leisure culture, etc. The better you break it down the better you will be able to analyze it in the coming steps.

Now, it is very important to include each and every activity which consumes money. Step three- Rank your spending. As a rule of thumb the things you do not enjoy- bill, etc usually are, mortgage located at the mast have section. Rank your spending from most important must have to I can afford to give- up . Leisure culture, eating out- sides and all the other fun activities usually belong to the I can give- up section. Now, this is the most crucial step in the whole process, remove all the expenses from the bottom of your list, until your earnings exceeds your expenses by$ 5It is extremely important that at this stage you will recheck if you can really live without the item you are about to cut off. Step four- Cut over budget expenses.

If you have seconds thought regarding one of the items simply re rank your list of expenses, then come back, step four to step five. If you completed all the above steps you now have an extra$ 50 every month. Step Five- Use extra money to fix your credit. This must be used to cut down your payments. Point your new health plan to$ 50 a month. Work a payment plan with all the credit payments you currently have. Use your extra$ 50 to pay for your financial solution.

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Their Attorney Was A Generalist - Finance and Financial Planning:

Ned almost lost the farm that had been in his family for 8 generations! Make sure you don t make the same mistake Ned did.

Many People Fail To Understand The Importance Of Estate Planning - Finance and Financial Planning Blog:

Many people fail to understand the importance of estate planning.

Nobody Likes To Pay Taxes - Finance and Financial Planning Articles:

Nobody likes to pay taxes. Knowing some simple rules will reduce your tax bill and allow you to keep more of what you inherit.

So What Is A Bad Credit Credit Card

Category: Finance, Financial Planning.

When your credit is bad, card issuers don t want to give you a credit card.

It s a catch- 22- you need a way to show that you can pay your bills, and unless you show that you can pay your bills, no one is going to trust you. When you can t get credit, it s hard to rebuild that all- important credit history. It s a shameful situation, but bad credit isn t something to be ashamed of. If you ve had trouble with credit in the past and want to repair your history, bad credit credit cards are one of the tools that can help you put your things back on the road to recovery. It s something to be fixed. It can help you rebuild your payment history upon which much of your credit rating is based.

There are many reasons that you might have bad credit. So what is a bad credit credit card? If you ve had trouble paying off accounts before, the record of your late and missed payments ends up on your credit record. When you have bad credit card issuers are understandably wary of granting you further credit. When you apply for finance, the card issuers check your credit record to see if you re the type of person who typically pays bills( as well as finding out many other things, like if you have enough income, and where you live) . At the same time, there s money to be made in extending you finance, and these companies aren t well known for shying away from an opportunity to make money.

How do bad credit cards help you repair your credit? It presents them with a dilemma, and the solution to that dilemma put less emphasis on the risk with high interest rates on the repayments which offsets the risks of lending money to people who don t have excellent credit. Generally, when people look for a credit card, they re looking for low interest rates. In fact, usually reserved for, the best offers those folks who ve never missed or been late with a payment, sport APRs in the single digits these days. Most applicants wouldn t even think about taking a card with an APR above 12- 15% . Most people would consider options with APRs above 17% to be bad credit cards. Most won t offer you cards at all.

When you ve been in debt and are trying to recover your good credit, issuers aren, though t going to offer you their best rates. When no one will let you borrow money, it s a little difficult to prove that you can pay it back, yes? Despite higher interest rates averaging 39% if you borrow a little each month, but pay it off completely each month you ll re- establish yourself as a reliable borrower and your credit rating will improve. When you re in that situation the solution is bad credit credit cards. Of course, the key to using cards as tools that get your credit back on track is in the way that you use them. Pay off the entire account each month. These are the basic rules to repair your credit: Only charge what you can afford to repay within a month.

Pay the account as soon as it comes in each month so your payments are never late. Needless to say, some bad credit cards are better than others. Be sure that your payments are being reported to the credit reporting agencies. Before you apply, take the time to compare rates and fees and choose the option that is the best for your needs.

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This Is How You Can Find The Best Estate- Planning Attorney For Your Family - Finance and Financial Planning:

Finding a good estate- planning attorney is vital for the success of your estate plan.

Even If The Underlying Index Goes Up 10% , Your Return Will Be Lower - Finance and Financial Planning Articles:

Equity Indexed Annuities( EIAs) have become the hot product of late. I ll discuss these alternatives in the next two articles.

Many People Fail To Understand The Importance Of Estate Planning - Finance and Financial Planning Articles:

Many people fail to understand the importance of estate planning.

The Definition Of A Market Correction Is A 10% Decline

Category: Finance, Financial Planning.

The Dow, S& P and NASDAQ are touching their lows for the year, down some 8% - 9% . A 20% decline is to be expected if there is a moderate recession or the expectation of one.

The definition of a market correction is a 10% decline. Are we headed for a recession? Housing, jobs account for, and related 10% of our total employment. Let s review the economic facts. Single family housing starts fell 3% in October and permits dropped 6% , to the lowest levels in 15 years. (You can see the ripple effect on the earnings of Home Depot and Lowes. ) New housing starts have fallen for almost two years. On top of this, the value of existing homes is declining, creating a( true) feeling of less wealth and limiting the use of home equity loans to monetize residential real estate.

Every time in post- war history housing has declined for two years, it has been accompanied by a recession. Even if the equity is there, home- related lending standards are tightening, making it harder to get home- equity and new home loans. Is this a vicious circle? Tight credit keeps buyers out of the market further slowing new home building and existing home sales. Add to this some$ 350 billion of adjustable rate mortgages which are due to adjust in 200 Most( all? ) of these mortgages will adjust upward. Under the best case scenario, this will take money out of consumer s pockets. Many are two year adjustable mortgages which are arriving at their first adjustment- from that attractive low rate to a healthy premium over LIBOR.

The worse case is much worse. But wait, the Fed can, you say solve this problem by lowering interest rates. Thus far, tightening credit has been limited to the residential market but we now see signs of it spreading to auto loans and credit cards. It s true, the Fed Funds rate can be reduced and interest rates should follow( although not necessarily LIBOR- based loans) but a rate cut will not impact lending standards. The Fed is predicting modest growth for 2008, in the 8% - 5% range( the low end suggests the economy is operating at dangerously close to stall speed) , and continued growth beyond. If financial institutions keep tight lending standards, its the same as a tight money policy regardless of what the Fed does.

There are economic bright spots: exports, technology and farming. (Although, let s also not forget the potential for high energy prices to disrupt the economy. ) Black s Friday s retail sales were encouraging and inflation is in check. Strong exports and technology sector sales cannot overcome a slowdown in consumer spending. However, the consumer accounts for about 70% of the economy. Economists like to point out the resiliency of the U. But, it doesn, in this instance t mean we will avoid a recession, it means we ll come out of it and keep growing afterwards. S. economy and they re right. The problem with recessions is that they re hard to predict.

We won t know we re in a recession until we can see it in the rear view mirror. The old saying is that the stock market has successfully predicted ten of the past five recessions. By then we ll be in it or, coming out of, hopefully it. Is this the capitulation which signals a market bottom or will there be another 10% downward movement to reach the 20% decline typical of recessions? The stock market is in its second major correction of the year and sentiment is decidedly negative. The honest answer is- who knows?

So, let s look at the risk/ reward for stocks and bonds and make some decisions. But, that s not an acceptable answer for an investor who needs to know what to do with his or her money. The S& P is currently selling at about 15x estimated 2008 earnings. A market selling at under a 15 price/ earnings ratio is attractive. This is a reasonable valuation. Even if 2008 earnings estimates are 10% too high, the market moves from being undervalued to fairly valued. So the risk/ reward is 10% downside. 20% upside.

If we avoid a recession, earnings and multiples suggest a 20% market rise. This is why long term investors should stay in the market. As for fixed income investments, let s use US Treasuries as our proxy. Focus on the companies doing the best- large caps with foreign sales. You certainly want to stay away from riskier bonds until the credit mess sorts itself out. Why subject yourself to the uncertainly of inflation and other risks over the next decade for such a low return? Five year Treasuries currently yield 5% ; 10 year yield 0% .

These aren t attractive yields given money market fund and bank deposit rates in the 4% -plus range. You re better off in cash than bonds.

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Once You See What You Want, You Can Even Buy It Over The Internet - Finance and Financial Planning Articles:

Throughout the ages, people of all races have desired, luxury, and searched for. The desire for luxury is entirely natural, and people have found hundreds of different ways to pursue it.

A Budget Is Basically A List Of Expenses And Income - Finance and Financial Planning Articles:

It is fairly common knowledge that money matters can be simplified and controlled with a budget. It is not a really hard task, but one that many people avoid.

Nobody Likes To Pay Taxes - Finance and Financial Planning Articles:

Nobody likes to pay taxes. Knowing some simple rules will reduce your tax bill and allow you to keep more of what you inherit.

Low Cost Instant Approval Loans

Category: Finance, Financial Planning.

The cost of payday loans is an issue that has been much hyped and discussed over and over again.

In fact the low cost payday loan can cost lesser than a hefty late payment fee, or prove cheaper than a default payment that would not do much good to your credit profile too. The fact of the matter is that nothing comes for free, and when you can avail a fast cash loan when other credit options are unavailable to you, the fee and charges for cash loan will not be something that you will complain about. Low Cost Instant Approval Loans. They are usually borrowed by cash strapped, hard- working people who live from one paycheck to another. Payday loans are available in sums ranging from$ 100 to$ 1, 500 and they usually cost about$ 15- $30 for$ 100 borrowed for 7 days to14 days. Such people find it hard to manage emergencies while living on a tight budget and rely on faxless low cost payday loan to get them through their temporary financial crisis. The cost of taking a payday loan is a matter of concern only when the borrower is unable to manage his finances well.

When You Need To Worry. The cash advance loans are useful and offer timely relief in cases of temporary financial crises. If the borrower unwittingly borrows more than he can afford he may have a tough time as these loans are indeed very expensive if they are continually" rolled over" or extended. They are not long term solutions and cannot offer much help to those who have deep- rooted debt problems. If payments are made on the due date, the loans are very affordable, it is only when the borrower is unable to make payments on time that it may get costlier than expected. It is better than asking friends and relatives for short cash loans and making them aware of your financial situation.

If you do not abuse the services of a cash advance lender, you may find the fee paid for payday loan much lesser than the hassle of a bounced check. Your credit history is not considered and you require no collateral, so it is indeed not very expensive as long as payments are made on time. It can be done in an impersonal manner, completely online. Consider other factors in its favor such as no lengthy loan application procedures, paper work or having to actually face someone to secure a loan. If you repay the loan on time, it can be a source of relief which is better than not making payments on time and worrying about mounting cost of payday loan.

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A Health Care Power Of Attorney Is Activated By Your Incompetence - Finance and Financial Planning Blog:

Living wills have received a great deal of attention due to the recent Terry Schiavo situation. By having a proper Living Will, you can avoid such confusion.

There Are Many Benefits To Having Your Money Problems Under Control - Chelsea Mayton's Finance and Financial Planning blog:

I could only guess what a great feeling it would be to be totally out of debt. Although most people will have a hard time getting a handle on the money that goes through their hands if you plan everything right you most certainly can take control of your money.

Should You Trust Or Not Trust - Finance and Financial Planning:

Living Trusts have become very popular and are being heavily promoted to seniors. That is the question.

In Either Case The Homeowner Should Investigate The Possibility Of Re- Financing

Category: Finance, Financial Planning.

Whether or not to re- finance is a question homeowner may ask themselves many times while they are living in their home. This may sound odd at first but it is important to realize when this is done properly it can result in a significant cost savings for the homeowner over the course of the loan.

Re- financing is essentially taking out one home loan to repay an existing home loan. When there is the potential for an overall savings it might be time to consider re- financing. These situations may include when the credit scores of the homeowners improve, when the financial situation of the homeowners improves and when national interest rates drop. There are certain situations which make re- financing worthwhile. This article will examine each of these scenarios and discuss why they may warrant a re- finance. There are currently so many home loan options available, that even those with poor credit are likely to find a lender who can assist them in realizing their dream of purchasing a home. When Credit Scores Improve.

However, those with poor credit are likely to be offered unfavorable loan terms such as high interest rates or variable interest rates instead of fixed rates. Fortunately for those with poor credit, many credit mistakes can be repaired over time. This is because the lender considers these homeowners to be higher risk than others because of their poor credit. Some financial blemishes such as bankruptcies simply disappear after a number of years while other blemishes such as frequent late payments can be minimized by maintaining a more favorable record of repaying debts and demonstrating an ability to repay existing debts. All citizens are entitled to a free annual credit report from each of the three major credit reporting bureaus. When a homeowner s credit score improves considerable, the homeowner should inquire about the possibility of re- financing their current mortgage.

Homeowners should take advantage of these three reports to check their credit each year and determine whether or not their credit has increased significantly. When Financial Situations Change. When they notice a significant increase, they should consider contacting lenders to determine the rates and terms they may be willing to offer. A change in the homeowner s financial situation can also warrant investigation into the process of re- financing. In either case the homeowner should investigate the possibility of re- financing. A homeowner may find himself making considerably more money due to a change in jobs or considerably less money due to a lay off or a change in careers. The homeowner may find an increase in pay may allow them to obtain a lower interest rate.

This may result in the homeowner paying more because some debts are drawn out over a longer period of time but it can result in a lower monthly payment for the homeowner which may be advantageous at this juncture of his life. Alternately a homeowner who loses their job or takes a pay cut as a result of a change in careers may hope to refinance and consolidate their debt. When Interest Rates Drop. Lower interest rates are certainly appealing because they can result in an overall savings over the course of the loan but homeowners should also realize that every time the interest rates drop, a re- finance of the home is not warranted. Interest rates dropping is the one signal that sends many homeowners rushing to their lenders to discuss the possibility of re- financing their home. The caveat to re- financing to take advantage of lower interest rates is that the homeowner should carefully evaluate the situation to ensure the closing costs associated with re- financing do not exceed the overall savings benefit gained from obtaining a lower interest rate.

The mathematics associated with determining whether or not there is an actual savings is not overly complicated but there is the possibility that the homeowner will make mistakes in these types of calculations. This is significant because if the cost of re- financing is higher than the savings in interest, the homeowner does not benefit from re- financing and may actually lose money in the process. Fortunately there are a number of calculators available on the Internet which can help homeowners to determine whether or not re- financing is worthwhile.

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The Policy Has A Large Loan - Finance and Financial Planning Blog:

Most people do not know they can sell an insurance policy. Even term insurance, which has no cash value, is a candidate for purchase.

Financial Planning - Michele Strandberg about Finance and Financial Planning:

Financial planning.

The First Is A Medical Power Of Attorney - Ingrid Grimley's Finance and Financial Planning blog:

Few topics confuse investors more than figuring out what estate- related documents they need.

This An Important For Saving Money

Category: Finance, Financial Planning.

Perhaps some of you would not believe that you can start saving money at home by managing ideally even the smallest and the cheapest commodities in your home like vinegar. Saving money can be started by this commodity.

Yes, you read it right. Of course there are lots of things that can be a effective ways to save money at home but this time, we discuss the importance of vinegar for saving at home. Kindly pay close attention to this write- up. If you need to trim down your grocery budget but have difficulty how to do it, then try this saving money tip. We are going to show you how can you save money. Like this example. This an important for saving money.

All of us, can not take, perhaps a bath without the use of conditioner. However, there are times that we only have just enough for our basic needs and buying some other commodity like that makes our mind puzzled on how to maximize our purchase with our budget. For this reason, we tend to buy in the supermarket as much as we need it. If you would like to cut down your spending and decide not to buy conditioner, you can have this alternative. This has the capacity to maintain the balance of skin s PH level. Vinegar can be used as a substitute for conditioner because this is good for hair and scalp.

It can also effectively remove excess shampoo. It washes cleanly and make your hair shiny and soft. It also will not make your scalp dry and does not leave smell after use. So, if you are tired of spending an amount that is just like a salon price, then use this alternative now. Another is, the capacity of vinegar to maintain the PH level of skin in balanced makes it as a perfect ointment for oily as well as for dry skin. It is effective to use and, an ideal way, of course to saving money.

You can use this as an alternative for expensive cream and detergents which have the possibility to make your skin problem worst. This can deplete oil supply making your skin oilier. Because, some of creams available in the market are harsh cleaners. This idea also applies to dry skin. Thus, this is an effective way of saving at home. As an alternative, vinegar that is much cheaper is available for you to use for ideal result.

And also, by making 1/ 4 cup vinegar with to two tablespoon lemon to water solution, you can have an alternative for expensive window cleaner, bathroom surfaces and kitchen. This can also serve as a mild disinfectant. This mixture penetrates through grease and provides pleasant smell. There is nothing to worry on using this because this is not harmful to your health unlike using commercial expensive products. Now, you could have realized the ideal characteristics of vinegar. Well, you can have this as way of saving money.

You are informed of its multiple usage. So, if you have sometimes to test its effects, then go. You can make this as one of your ways to save money at home. You are not only making your self away from hazardous commercial chemicals but also, you are saving money at home.

Many People Fail To Understand The Importance Of Estate Planning

Category: Finance, Financial Planning.

Many people fail to understand the importance of estate planning.

If there are minors among your heirs or someone who is mentally challenged, the problems increase manifold. The fact is that if you die intestate, i. e. without making a will, all important decisions such as the raising of your children, the inheritance of real and personal property, and the administration of your estate will be done by the courts, and in the majority of cases your loved ones may have no option but to agree to a court appointed administrator. Children and spouses from previous marriages further add to these complications. Or, under court orders, the children may get the bulk of the assets, leaving the surviving spouse in a state where she is unable to maintain the current standards of living. In the absence of proper estate planning, many times when a second spouse survives, the children from the first spouse may end up with nothing, in spite of the wish of the deceased to provide for them. Or, imagine a situation where a husband and wife die together without leaving a will.

The implications of a difference of a few minutes at the time of death can lead to drastically different results for the heirs. For adjudication upon the issues of inheritance and administration of the estate, the State would have to decide who died first. The heirs of the one to die first would be left high and dry. An estate plan would organize everything in order and not leave your heirs to rummage around searching for whatever papers they can find upon your death or if you become incapacitated. In case you do not have an estate plan or one that is properly drafted, all your hard work over so many years may go wasted, as the assets you acquired would be lost and your loved ones deprived of the benefits of your labor. If there is no estate plan, they may not be sure if the documents they find are important, or up to date, or even complete. Small things like family heirlooms, or a rosewood table, or some other personal item may lead to squabbles and very unpleasant situations in the family.

The only alternative for them then would be to take everything to a lawyer or some other professional in order to find out what he can make out of them. Even if you think you do not have much, it is important to take steps so that the people you want to benefit inherit your assets, and not be consumed by lawyer fees and estate taxes. Only then will things continue smoothly, plus there being help for you and your loved ones. In case of your sudden disablement due to some medical condition, there has to be an arrangement in place for someone to automatically take over the management of your financial affairs. This can be ensured through a Durable Power of Attorney, without which even your lawfully wedded spouse will not be able to exercise any right to step in and take over. A properly drafted estate plan envisages all such possibilities and takes care to provide remedial measures, duly supported by legal documents wherever required, preventing problems for you and your family. The Durable Power of Attorney will ensure that your bank accounts are not frozen, and will enable the smooth transfer of property to the rightful beneficiaries.

The above discourse makes it quite evident the import of having a proper estate plan. If you do not have one yet, you need to go about it while you are healthy and in a position to personally see to the preparation of the plan, as per your wishes.

This Is How You Can Find The Best Estate- Planning Attorney For Your Family

Category: Finance, Financial Planning.

Finding a good estate- planning attorney is vital for the success of your estate plan.

He must possess other qualities also. The best attorney would not be one who is just aware of the legal provisions related to how your estate would be transferred in the manner and to whom you want it to got to. First of all, he must be a team player. There has to be cohesion and co- ordination among all the people involved, in order to serve the interest of the client. This is because crafting a proper estate plan is not the work of a single individual, but is the result of co- ordinated inputs by a team of accounting, finance, taxation, investment and legal professionals. Usually, other professionals view the estate- planning attorney as a mere'scribe' , who is responsible for just writing the instrument( s) related to the estate plan.

An attorney who focuses on real estate planning is much better placed to understand that estate planning requires much more than cut and dried legal advice. However, this is not a correct perspective. He builds a strong and long- term relationship with you, which would in fact be much more than what generally exists between a professional and a client. Additionally, he would want to lean the details of the aims that you might have regarding your estate. He would help you through the intricate details of the legal requirements of transferring wealth and the related tax implications. He would probe by having an intelligent dialogue so that you can express your desires and aspirations about yourself and those whom you love and care for.

He would also ask you about who you wish should be in control of your affairs. For example, how you would want to be cared for in the event of suffering a disability, or in what way you would wish to provide for those whom you care about after your death. These discussions would also cover areas such as the educational funding of your future generations, your provisions for the care of a surviving spouse, maintaining a record of your family history and the facts that support the values that you stand for, your philanthropic inclinations etc. For example, there could be an issue of an untrustworthy or spendthrift offspring, and other such serious matters. On a different note, he would also inquire about interpersonal relationships within the family, which in reality may be quite different from what they outwardly appear, and which can have profound effects on the final outcome of your estate plan. He would see to it that all such factors are taken care of in your estate plan. This is all the more important because estate planning is not something that is planned once and done away with.

Such interaction leads to building a long- term relationship with strong bonds and high levels of trust. There may arise a need for reviewing and changing it in the light of new events that may occur later. He will ensure maintaining a meaningful dialogue with them, in the best interests of the client. A good estate- planning attorney would pay due recognition to all the other professionals from different disciplines, as he is aware of the importance of their contributions to the estate plan as a whole. Hence, you need to look for these traits, which are sure indicators of the quality of an estate- planning attorney. This is how you can find the best estate- planning attorney for your family.

Their Attorney Was A Generalist

Ned almost lost the farm that had been in his family for 8 generations! Make sure you don' t make the same mistake Ned did.

We' ve all heard that' The Devil is in the details. ' It is especially true when it comes to estate planning. Ned and Nellie Mae were in their early 80's. About 10 years ago they became concerned about the amount of estate taxes that would be due on the family farm when they died. Even though they had been happily married for over 30 years, they each had children from a previous marriage. They' d heard the nightmare stories about losing the farm to Uncle Sam and they wanted to make sure it wouldn' t happen to them! He told the attorney about their estate tax concerns and also that he wanted to make sure the farm went to his children- -stayed in his family- -instead of going to his stepchildren when he died.

So Ned went to see his local attorney. Well, the attorney told Ned what to do and, Ned and Nellie, obediently Mae implemented that plan over the next 9 years. And the attorney missed a few details that left Ned holding the bag. The attorney's advice sounded good, but the Devil is in the details! The result was that if Ned had passed away, his share of the farm could have gone to his stepchildren instead of his daughters- -the very thing he was trying to prevent! They followed a plan for 9 years and were right back where they started!

The attorney's plan was also supposed to reduce the amount of estate taxes that would have to be paid, but because the attorney missed one small detail it would be as if the plan had never happened, leaving a$ 750, 000 tax bill! Fortunately, I was able to help Ned and Nellie Mae get the chaos that had become their estate plan quickly and easily sorted out. Their estate taxes have been drastically reduced, possibly even eliminated. With the help of a competent attorney, Ned and Nellie Mae now have the peace of mind that what they want to happen, will happen. Just as important, Nellie Mae's children will get her portion of the estate and Ned's children his. To their credit, Ned and Nellie Mae did everything they were supposed to.

The farm that has been in his family for 8 generations will stay that way for a few generations more. They were proactive in recognizing that they needed to take action to reduce their estate taxes. They sought out an attorney to help them. They knew they needed legal documents in place to dispose of their estate according to their wishes, minimizing any conflict between the children. They followed the attorney's advice and did what they were supposed to. The only mistake Ned and Nellie Mae made was not working with an attorney that specialized in handling complex estates. So what went wrong and how can you avoid making the same mistake?

Their attorney was a generalist. Just like in medicine, it is hard for any attorney to be an expert in all areas of the law. Being in a small town he did a little bit of everything, legally speaking. You may have a family doctor, but if you need a heart transplant they will refer you to a cardiac specialist. If you have hemorrhoids. well, you get the, never mind picture! If you have severe foot problems they will refer you to a podiatrist.

Ned and Nellie Mae's attorney knew in general what they should do, but since he wasn' t an expert in the area of estate planning he missed a crucial detail. For all but the simplest cases, you should be working with someone who specializes in the areas you need help. It's the same way when it comes to handling all of your financial affairs. Work with a competent professional that specializes in your situation.