When a country is experiencing a financial crisis it often results in several increases in other areas such as prices, health issues, unemployment, crime and more. Many criminals think of new ways to catch unsuspecting victims using scams, devices or fake items such as money to make a quick buck. One item that is duplicated as a fake is money. Several people make fake bills and pass them around as real money including banks.
A man withdrew some money from his credit union to pay his roommate his portion of the rent. The roommate deposited the hundred dollars bills at Chase bank. Chase later discovered that one of the hundreds was actually a $5 altered to look like a $100. Chase deducted $100 from the roommate's bank account. When he complained, Chase pretended as though they knew nothing about it and hadn’t put the hundred dollar bill in the drawer and felt that it wasn't their responsibility. After a consumer reporter began asking questions to Chase bank representatives, they credited the roommate back the $100.
By Chase passing the fake hundred dollar bill back to the customer it was conducting a fraudulent transaction. Chase originally had the fake dollar bill in its possession and should have noticed the error sooner. Here are some tips to help you spot counterfeit money.
1. Hold the bill up to bright lighting. You should see a hologram on the face-up side of the bill. Both of the images should match perfectly. You should also notice a vertical strip that spells out the currency’s denomination ($1, $5, $10, etc.).
2. Look for changes in color. Take a $5 bill and move it back and forth while tilting it. Look for a number in the lower right hand corner. The number’s color should shift from green to black and back to green again, if not, it is a counterfeit.
3. Hold the bill up to an ultraviolet light. A $5 bill glows blue, a $10 bill glows orange, a $20 bill glows green, a $50 bill glows yellow and a $100 bill glows red.
4. Check the serial numbers which should be cleanly spaced and printed in the same color ink as the Treasury seal.
5. If you think you have a fake bill in your possession get a good description of who gave it to you, when and where.
6. Write down the license number or any other identifying information about who gave you the fake bill.
7. Do not accuse the person of using counterfeit money.
8. Place the counterfeit bill in an enclosed envelope.
9. Invest in an ultraviolet light if you handle cash as part of your job or accept cash for payments for services or goods you provide.
10. Contact the local police department or Secret Service at www.secretservice.gov/field_offices.shtml and provide them with the fake bill.
Monday, January 31, 2011
Friday, January 28, 2011
First Class is Still First Class With Stamps
Although many households and companies use the internet daily, several Americans still use the post office to conduct business and mail packages and letters. The postal service delivers approximately 177 billion pieces of mail a year. I use the post office frequently to mail letters for personal and business reasons.
The post office offers many services one of which is postage stamps. First class postage has increased since its inception in 1861. The price of first class postage has increased dramatically: in 1900 a first class stamp was two cents, in 1918 three cents, in 1959 four cents, in 1982 20 cents, in 1995 32 cents and in 2011 44 cents.
On April 12, 2007, the U.S. post office created the forever stamp which can be used to mail a first class letter in the future if rates go up. Many customers have complained about the price of stamps over the years and your complaints have been heard. Starting January 2011, all new stamps for one ounce of first class mail can use the forever stamp. The post office implemented the feature to help customers deal with increased first class postage costs and provide more efficiency in the postal service.
Due to the economic crisis in the country many businesses have been affected and have lost revenue including the postal service. The number of mail being delivered has steadily declined due to the use of the internet and email. As a result the post office requested a two cent increase in postage rates for 2011 but the request was rejected. The postal office is appealing the decision.
However, on April 17, 2011, there will be price increases for other postage services. More information can be found at www.usps.com/prices/pricechanges.htm?from=home_lgpromo&page=NewMailingPricesApril2011. So there you have it - first class is still first class for consumers.
The post office offers many services one of which is postage stamps. First class postage has increased since its inception in 1861. The price of first class postage has increased dramatically: in 1900 a first class stamp was two cents, in 1918 three cents, in 1959 four cents, in 1982 20 cents, in 1995 32 cents and in 2011 44 cents.
On April 12, 2007, the U.S. post office created the forever stamp which can be used to mail a first class letter in the future if rates go up. Many customers have complained about the price of stamps over the years and your complaints have been heard. Starting January 2011, all new stamps for one ounce of first class mail can use the forever stamp. The post office implemented the feature to help customers deal with increased first class postage costs and provide more efficiency in the postal service.
Due to the economic crisis in the country many businesses have been affected and have lost revenue including the postal service. The number of mail being delivered has steadily declined due to the use of the internet and email. As a result the post office requested a two cent increase in postage rates for 2011 but the request was rejected. The postal office is appealing the decision.
However, on April 17, 2011, there will be price increases for other postage services. More information can be found at www.usps.com/prices/pricechanges.htm?from=home_lgpromo&page=NewMailingPricesApril2011. So there you have it - first class is still first class for consumers.
Tuesday, January 25, 2011
Standard Mileage Rates Changes
The IRS revised the standard mileage rates for 2011 that apply to all employees, self-employed individuals and other taxpayers who use the figure to calculate deductible costs of operating a car for charitable purposes, business, medical or moving purposes. The rates for business, medical and moving purposes increased, however the rates for charitable purposes did not change from 2010.
Effective January 1, 2011, the standard mileage rate for using a car, pickup truck or van will be $.51 per mile. The rate for using a car for charitable purposes is $.14 per mile. The rate for using a car for medical or moving purposes is $.19 per mile.
The standard mileage rate cannot be used for: cars that are used for hire such as taxicabs, cars that claim a Section 179 deduction, for more than 4 cars simultaneously, or cars that use a depreciation method under the Modified Accelerated Cost Recovery System (MACRS).
Refer to the IRS website for more information on the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate and the maximum standard car cost for cars under a Fixed and Variable Rate (FAVR) allowance.
The IRS is requesting public comments on whether taxpayers should be allowed to use the business standard mileage rate.
Effective January 1, 2011, the standard mileage rate for using a car, pickup truck or van will be $.51 per mile. The rate for using a car for charitable purposes is $.14 per mile. The rate for using a car for medical or moving purposes is $.19 per mile.
The standard mileage rate cannot be used for: cars that are used for hire such as taxicabs, cars that claim a Section 179 deduction, for more than 4 cars simultaneously, or cars that use a depreciation method under the Modified Accelerated Cost Recovery System (MACRS).
Refer to the IRS website for more information on the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate and the maximum standard car cost for cars under a Fixed and Variable Rate (FAVR) allowance.
The IRS is requesting public comments on whether taxpayers should be allowed to use the business standard mileage rate.
Saturday, January 22, 2011
Saving is the New 20
Being sexy can be summarized in 3 main areas: attitude, confidence and image. Attitude relates to your views on life, usually an optimistic person who can take criticism well and always remains positive. Confidence is how you feel about yourself no matter what someone else says about you or does to you. Image is the physical appearance of a person, their smile, their teeth, their hair, their walk, their laugh, their face, their body, how they dress, how they smell.
According to a study by ING 61% of the men that participated in the survey feel that women who are frugal are smart and sexy. Cash is king and having a savings account makes you more attractive and appealing. When you are in debt and have bad credit is it hard to focus on anything else and if you do, you can’t give it your all because of your financial problems especially when it comes to relationships.
When you go on dates or out with your boyfriend or girlfriend your conversations will somehow always lead to discussing your financial problems. The lack of a savings account or retirement account may cause you to stay in a relationship longer than you have to or stay at a job longer that you would like because you are living paycheck to paycheck. If you are out on a date and have financial problems you might slip up and make statements like “I wish I had someone to help me pay my bills” or “I wish I had a man to take care of me” which may be a turnoff especially on a first date.
When you start saving you see your money grow which is a great feeling. When you start paying down your debt you feel like a burden has been lifted off of your shoulders and you can begin creating long-term financial goals such as planning for retirement, starting a business or planning for your children’s college education. Saving money also helps to pay for unexpected expenses and prevents you from going into debt. Saving money and have good spending habits is an appealing quality in a mate.
If you don’t feel sexy try to make yourself more appealing by working hard to save money, fix bad credit and set financial goals. Saving is smart. Investing is smarter. Good credit is smart and sexy. Saving the environment is sexy. Saving is sexy.
According to a study by ING 61% of the men that participated in the survey feel that women who are frugal are smart and sexy. Cash is king and having a savings account makes you more attractive and appealing. When you are in debt and have bad credit is it hard to focus on anything else and if you do, you can’t give it your all because of your financial problems especially when it comes to relationships.
When you go on dates or out with your boyfriend or girlfriend your conversations will somehow always lead to discussing your financial problems. The lack of a savings account or retirement account may cause you to stay in a relationship longer than you have to or stay at a job longer that you would like because you are living paycheck to paycheck. If you are out on a date and have financial problems you might slip up and make statements like “I wish I had someone to help me pay my bills” or “I wish I had a man to take care of me” which may be a turnoff especially on a first date.
When you start saving you see your money grow which is a great feeling. When you start paying down your debt you feel like a burden has been lifted off of your shoulders and you can begin creating long-term financial goals such as planning for retirement, starting a business or planning for your children’s college education. Saving money also helps to pay for unexpected expenses and prevents you from going into debt. Saving money and have good spending habits is an appealing quality in a mate.
If you don’t feel sexy try to make yourself more appealing by working hard to save money, fix bad credit and set financial goals. Saving is smart. Investing is smarter. Good credit is smart and sexy. Saving the environment is sexy. Saving is sexy.
Wednesday, January 19, 2011
Another Reason to Use Cash
A trend that has been occurring in some parts of the country for the past two years is continuing but has had a sharp increase in the past few months. Some gas stations and merchants are charging customers more when paying with credit or debit cards. Some states have passed laws to prohibit charging customers fees: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.
Previously processing fees for credit card and debit card transactions were paid by the merchants now the charge is being passed to customers. This is due to increased charges that merchants have to pay when processing credit and debit card transactions. However, fees for debit card purchases are lower than credit card transactions.
In order to legally charge customers for credit card and debit card processing fees gas stations and merchants have to create two separate pricing offers. This is done by offering a discount when paying with cash but a sign must be displayed that states that a higher price will be charged when paying with credit card or debit card. The increase in this practice is due to the changes implemented in the CARD Act of 2009 that stated credit card issuers can charge a discount to customers who pay with cash.
Visa and MasterCard allow merchants to offer a discount when paying with cash that is lower than the price paid for other forms of payment. Discover allows merchants to charge a fee to customers when using a credit card or debit card. American Express states that merchants cannot accept a credit card or debit card for fees over the normal price of an item.
I noticed this week that the local gas station near my office is now charging more when paying with a credit card or debit card. I visited the gas station yesterday and decided to pay with cash but usually pay with my debit card. I am glad I did because I saved $.10 per gallon saving a total of $.80 yesterday for unleaded (regular) gas. For those who buy mid-grade or premium the cost is even more and can easily cost you anywhere from $1.00 - $5.00 more when paying with credit card or debit card.
Be aware of the rules and regulations that govern businesses as well as the rules and regulations that protect consumers to ensure you are not being taken advantage of. For detailed information on the CARD Act of 2009 visit www.govtrack.us/congress/billtext.xpd?bill=h111-627.
Previously processing fees for credit card and debit card transactions were paid by the merchants now the charge is being passed to customers. This is due to increased charges that merchants have to pay when processing credit and debit card transactions. However, fees for debit card purchases are lower than credit card transactions.
In order to legally charge customers for credit card and debit card processing fees gas stations and merchants have to create two separate pricing offers. This is done by offering a discount when paying with cash but a sign must be displayed that states that a higher price will be charged when paying with credit card or debit card. The increase in this practice is due to the changes implemented in the CARD Act of 2009 that stated credit card issuers can charge a discount to customers who pay with cash.
Visa and MasterCard allow merchants to offer a discount when paying with cash that is lower than the price paid for other forms of payment. Discover allows merchants to charge a fee to customers when using a credit card or debit card. American Express states that merchants cannot accept a credit card or debit card for fees over the normal price of an item.
I noticed this week that the local gas station near my office is now charging more when paying with a credit card or debit card. I visited the gas station yesterday and decided to pay with cash but usually pay with my debit card. I am glad I did because I saved $.10 per gallon saving a total of $.80 yesterday for unleaded (regular) gas. For those who buy mid-grade or premium the cost is even more and can easily cost you anywhere from $1.00 - $5.00 more when paying with credit card or debit card.
Be aware of the rules and regulations that govern businesses as well as the rules and regulations that protect consumers to ensure you are not being taken advantage of. For detailed information on the CARD Act of 2009 visit www.govtrack.us/congress/billtext.xpd?bill=h111-627.
Sunday, January 16, 2011
Federal Payment Changes for Tax Exempt Organizations
No one wants to owe the IRS but if you do some recent changes have been made regarding payments to the IRS for tax exempt organizations. Previously a tax-exempt organization could send payments by making deposits either electronically, using the Electronic Federal Tax Payment System (EFTPS), or by taking its deposit and the Federal Tax Deposit Coupon Form 8109B to an authorized financial institution or a Federal Reserve bank serving your area federalreserve.gov/fraddress.htm. Blank coupons can be obtained at your local IRS office. However, original coupons must be used, photocopies will not be accepted.
If you owe the IRS and previously made payments using the Federal Tax Deposit Coupon (8109), effective January 1, 2011 you can only use the EFTPS to make your federal tax deposit payments. Using this system allow tax exempt organizations to make payments 24 hours a day from anywhere, by phone or online. Using the system allows reduced payment errors and reduced penalties incurred due to errors. Payers can schedule payments up to 120 days in advance of the payment date. Payments must be scheduled by 8:00pm EST before the due date to receive same day credit.
The EFTPS allow payment via the website or the voice response system. Your bank can create an ACH credit payment on your behalf but you may be charged a fee by your bank. Your bank may make a same day wire payment for you in special circumstances but you may be charged a fee by your bank. Always check the IRS website to get the latest information on taxes, tax filing and tax preparation procedures.
If you owe the IRS and previously made payments using the Federal Tax Deposit Coupon (8109), effective January 1, 2011 you can only use the EFTPS to make your federal tax deposit payments. Using this system allow tax exempt organizations to make payments 24 hours a day from anywhere, by phone or online. Using the system allows reduced payment errors and reduced penalties incurred due to errors. Payers can schedule payments up to 120 days in advance of the payment date. Payments must be scheduled by 8:00pm EST before the due date to receive same day credit.
The EFTPS allow payment via the website or the voice response system. Your bank can create an ACH credit payment on your behalf but you may be charged a fee by your bank. Your bank may make a same day wire payment for you in special circumstances but you may be charged a fee by your bank. Always check the IRS website to get the latest information on taxes, tax filing and tax preparation procedures.
Thursday, January 13, 2011
Ways to Increase Your Tax Refund
It is that dreaded time of the year when everyone has to gather their receipts if you can find them to begin preparing to file taxes. Many argue that we should have a flat tax for all Americans. There are pros and cons to having a flat tax.
For now, we all have to pay our taxes or suffer the consequences like Wesley Snipes and be sent to jail. Some people try to avoid paying taxes by filing for bankruptcy but not all taxes can be included in bankruptcy.
If you plan on filing taxes this year here are some ways to increase your refund.
1. Tax Deductions. Check your health care costs, mortgage interest, closing and settlement costs, job-related expenses, tax preparation fees, moving costs, student loan interest or credit card interest which are just a few you can claim to increase your tax deductions.
2. State Sales Tax. If you live in a state that does not charge state taxes you can either deduct state and local sales taxes or state and local income taxes but you cannot deduct both. If you choose sales tax remember to include all items eligible for sales tax. Check the IRS website sales tax tables for your state.
3. Refinance. Don't forget to include your refinance costs when filing. When you refinance you have to deduct the mortgage points over the life of the loan so it's better to refinance for less time than your original loan. If you previously had a 30 year loan refinance to 20 years or less.
4. Property Tax. File a Schedule L to claim the property tax for personal property including car registration fees.
5. Casualty Loss. If you claim the standard deduction you can add casualty loss to your standard deduction amount if the loss occurred in an area that was declared as a disaster area by the President. You will have to file a Schedule L with your tax return to include the loss.
6. Read. Read the federal and state tax booklet that corresponds with your tax forms to make sure you are not overlooking any tax credits that you may be eligible for.
7. Avoid Rapid Refund. Don't get a rapid refund or loan. These usually have high interest rates and may not provide your refund faster than filing electronically.
8. Use Software. There are several free tax software available that you can use to file your taxes. Check frequently for software updates that may include additional tax deductions. Also look for free tax filing services in your area.
9. Reinvested Dividends (DRIP). Reinvested dividends cannot be deducted on your taxes but you can subtract the amount from your total taxable income which can save you money because it reduces your taxable capital gains.
10. Estate Tax. If you inherited an Individual Retirement Account (IRA) from an estate that was subject to estate taxes you can get an income tax deduction for the amount of estate tax paid on the IRA you received. You can claim an itemized deduction on Schedule A which will save you money.
For now, we all have to pay our taxes or suffer the consequences like Wesley Snipes and be sent to jail. Some people try to avoid paying taxes by filing for bankruptcy but not all taxes can be included in bankruptcy.
If you plan on filing taxes this year here are some ways to increase your refund.
1. Tax Deductions. Check your health care costs, mortgage interest, closing and settlement costs, job-related expenses, tax preparation fees, moving costs, student loan interest or credit card interest which are just a few you can claim to increase your tax deductions.
2. State Sales Tax. If you live in a state that does not charge state taxes you can either deduct state and local sales taxes or state and local income taxes but you cannot deduct both. If you choose sales tax remember to include all items eligible for sales tax. Check the IRS website sales tax tables for your state.
3. Refinance. Don't forget to include your refinance costs when filing. When you refinance you have to deduct the mortgage points over the life of the loan so it's better to refinance for less time than your original loan. If you previously had a 30 year loan refinance to 20 years or less.
4. Property Tax. File a Schedule L to claim the property tax for personal property including car registration fees.
5. Casualty Loss. If you claim the standard deduction you can add casualty loss to your standard deduction amount if the loss occurred in an area that was declared as a disaster area by the President. You will have to file a Schedule L with your tax return to include the loss.
6. Read. Read the federal and state tax booklet that corresponds with your tax forms to make sure you are not overlooking any tax credits that you may be eligible for.
7. Avoid Rapid Refund. Don't get a rapid refund or loan. These usually have high interest rates and may not provide your refund faster than filing electronically.
8. Use Software. There are several free tax software available that you can use to file your taxes. Check frequently for software updates that may include additional tax deductions. Also look for free tax filing services in your area.
9. Reinvested Dividends (DRIP). Reinvested dividends cannot be deducted on your taxes but you can subtract the amount from your total taxable income which can save you money because it reduces your taxable capital gains.
10. Estate Tax. If you inherited an Individual Retirement Account (IRA) from an estate that was subject to estate taxes you can get an income tax deduction for the amount of estate tax paid on the IRA you received. You can claim an itemized deduction on Schedule A which will save you money.
Monday, January 10, 2011
Your Wallet Says a Lot About You
Most Americans carry a wallet or a billfold. Did you know that the type of wallet you carry and how you organize it describes how you manage your money and your life?
An old worn or torn wallet may show that your wallet is used to serve the purpose of holding your money and don’t believe a lot of money should be spent on wallet. If your wallet is organized neatly it shows that you organize your money and your finances as well as your life.
If you keep everything in your wallet including receipts from 5 years ago like George from Seinfeld that may show that you are not organized with your money, your finances or your life. Carrying a designer wallet may show that you value image and appearance.
If you never have cash or never have enough cash that is a red flag that you need to adjust your spending habits quickly to prevent a financial crisis such as filing for bankruptcy, foreclosure, judgment, or tax lien.
If you have money in your wallet but never know how much you have you also don’t know how much you spend. This is a red flag that you need to create a budget. I always keep track of how much I spend down to the penny.
If you find money in several places in your home or car that is a red flag that you are not responsible with your money. If you don’t manage the money you have now when you have the ability to earn more you will not be able to manage it which will result in bigger financial problems.
If you have more than one credit card in your wallet that is too many. Carrying several credit cards in your wallet is very tempting and will cause you to spend money you don’t have or don’t need to spend. I only carry my credit card when I know I am going to make a purchase.
Not knowing how much money you have can lead to bad money habits such as frequently using your credit card, bouncing checks or overdrawing on your checking account. This can also carry over to other financial accounts such as your savings, retirements, college savings account, etc.
It takes 23 days to break a habit. If you think about how you spend your money every day or how you manage it, you will be able to break the bad financial habits and become a better shopper, spender and will eventually become a role model for your family and friends.
The first step to managing your money is knowing how much you have and keeping it in a safe place such as a bank account.
My wallet is ten years old and I don’t plan on buying a new one anytime soon. It only matches one of my purses but I don’t care. I will keep carrying it until it can no longer serve the purpose of carrying my money. Until then, I will continue to be unmatched.
An old worn or torn wallet may show that your wallet is used to serve the purpose of holding your money and don’t believe a lot of money should be spent on wallet. If your wallet is organized neatly it shows that you organize your money and your finances as well as your life.
If you keep everything in your wallet including receipts from 5 years ago like George from Seinfeld that may show that you are not organized with your money, your finances or your life. Carrying a designer wallet may show that you value image and appearance.
If you never have cash or never have enough cash that is a red flag that you need to adjust your spending habits quickly to prevent a financial crisis such as filing for bankruptcy, foreclosure, judgment, or tax lien.
If you have money in your wallet but never know how much you have you also don’t know how much you spend. This is a red flag that you need to create a budget. I always keep track of how much I spend down to the penny.
If you find money in several places in your home or car that is a red flag that you are not responsible with your money. If you don’t manage the money you have now when you have the ability to earn more you will not be able to manage it which will result in bigger financial problems.
If you have more than one credit card in your wallet that is too many. Carrying several credit cards in your wallet is very tempting and will cause you to spend money you don’t have or don’t need to spend. I only carry my credit card when I know I am going to make a purchase.
Not knowing how much money you have can lead to bad money habits such as frequently using your credit card, bouncing checks or overdrawing on your checking account. This can also carry over to other financial accounts such as your savings, retirements, college savings account, etc.
It takes 23 days to break a habit. If you think about how you spend your money every day or how you manage it, you will be able to break the bad financial habits and become a better shopper, spender and will eventually become a role model for your family and friends.
The first step to managing your money is knowing how much you have and keeping it in a safe place such as a bank account.
My wallet is ten years old and I don’t plan on buying a new one anytime soon. It only matches one of my purses but I don’t care. I will keep carrying it until it can no longer serve the purpose of carrying my money. Until then, I will continue to be unmatched.
Saturday, January 08, 2011
Will Black Street Be Repeated
In the 1900s blacks were not allowed to vote, business owners were threatened with violence and black students were forced to go to inferior schools. Lynchings and race riots occurred frequently against blacks.
In 1907, Madame C.J. Walker forms a successful cosmetic company and became the first black millionaire. In 1910, there were 40,000 black owned businesses and blacks owned 13 million acres of land in America. In 1910, the number of black farm owners in the South owned 24.5% of the farms. In 1913, federal segregation was implemented.
During the Progressive Era from 1895 to 1920 racism played a pivotal role in the failure of some successful black businesses and communities such as Black Wall Street. Black Wall Street was a wealthy all black community with a population of 15,000 in Tulsa Oklahoma that was bombed from the air and burned to the ground by white Americans on June 1, 1921. Black Wall Street consisted of 36 black businesses. The event killed 3,000 blacks and destroyed over 600 businesses including 21 churches, 30 grocery stores, 21 restaurants, 2 movie theaters, jewelry stores, medical schools, a hospital, a bank, a post office, libraries, schools, law offices, a bus system, two airports and private planes. Will Black Wall Street be repeated or has it already been repeated?
A study by the Bureau of Justice Statistics in 2005 found that hate crimes were 15 times higher than reported by the FBI. According to the 2008 FBI Hate Crimes report of the hate crime offenses reported, 72.6% were motivated by anti-Black bias. Eric Ward stated, “Because democracy is contingent on participation, hate crimes are also a blow against democracy which is a reason why all incidents are not reported. If individuals are afraid to participate in society, all of society suffers. “With the election of President Obama the FBI and other government agencies reported a dramatic increase in hate crimes and violence against blacks.
In 2010 there are over 1 million black owned businesses which is about 1/10 of the total number of businesses in America. However, each dollar earned in the black community today leaves the community every 15 minutes. During Black Wall Street it could take up to a year for a dollar to leave the community. In 2010, there are at least: 7 black owned winemakers, 10 black owned hair care businesses, at least 3 black owned radio broadcasting companies, 30 black owned banks, 12 black owned hospitals, 22 black owned churches in America. There are 3 black billionaires and over 100,000 black millionaires in America. The number of black politicians in 2010 has dwindled to 42. All we can do is hope that future generations will never experience these events and will know that America is the land of freedom and not the land of hate. “It demands great spiritual resilience not to hate the hater whose foot is on your neck, and an even greater miracle of perception and charity not to teach your child to hate. – James Arthur Baldwin”.
In 1907, Madame C.J. Walker forms a successful cosmetic company and became the first black millionaire. In 1910, there were 40,000 black owned businesses and blacks owned 13 million acres of land in America. In 1910, the number of black farm owners in the South owned 24.5% of the farms. In 1913, federal segregation was implemented.
During the Progressive Era from 1895 to 1920 racism played a pivotal role in the failure of some successful black businesses and communities such as Black Wall Street. Black Wall Street was a wealthy all black community with a population of 15,000 in Tulsa Oklahoma that was bombed from the air and burned to the ground by white Americans on June 1, 1921. Black Wall Street consisted of 36 black businesses. The event killed 3,000 blacks and destroyed over 600 businesses including 21 churches, 30 grocery stores, 21 restaurants, 2 movie theaters, jewelry stores, medical schools, a hospital, a bank, a post office, libraries, schools, law offices, a bus system, two airports and private planes. Will Black Wall Street be repeated or has it already been repeated?
A study by the Bureau of Justice Statistics in 2005 found that hate crimes were 15 times higher than reported by the FBI. According to the 2008 FBI Hate Crimes report of the hate crime offenses reported, 72.6% were motivated by anti-Black bias. Eric Ward stated, “Because democracy is contingent on participation, hate crimes are also a blow against democracy which is a reason why all incidents are not reported. If individuals are afraid to participate in society, all of society suffers. “With the election of President Obama the FBI and other government agencies reported a dramatic increase in hate crimes and violence against blacks.
In 2010 there are over 1 million black owned businesses which is about 1/10 of the total number of businesses in America. However, each dollar earned in the black community today leaves the community every 15 minutes. During Black Wall Street it could take up to a year for a dollar to leave the community. In 2010, there are at least: 7 black owned winemakers, 10 black owned hair care businesses, at least 3 black owned radio broadcasting companies, 30 black owned banks, 12 black owned hospitals, 22 black owned churches in America. There are 3 black billionaires and over 100,000 black millionaires in America. The number of black politicians in 2010 has dwindled to 42. All we can do is hope that future generations will never experience these events and will know that America is the land of freedom and not the land of hate. “It demands great spiritual resilience not to hate the hater whose foot is on your neck, and an even greater miracle of perception and charity not to teach your child to hate. – James Arthur Baldwin”.
Wednesday, January 05, 2011
How Your Degree Affects Your Income Potential
When in school you are told to explore different areas and find things you like to do. You are taught to use this information to help you decide what area to major in when you go to college. Unfortunately, you were not told that if you attend college and get $100,000 in student loans you have to get a job making $100,000 to even come close to paying back your student loan debt.
Getting a bachelor’s degree allows you to earn on average $1,000,000 over the life of a career versus just having a high school diploma. However, a college education can come with a price. According to Payscale.com, the top 10 majors with the highest salaries are: electrical engineering, computer engineering, petroleum engineering, biomedical engineering, aerospace engineering, chemical engineering, nuclear engineering, applied mathematics, economics and physics. Art, literature, foreign languages, history and social work majors tend to make the least amount of money per year.
The cost of college tuition increases faster than the rate of inflation. It is difficult to decide what to major in at college but now college students have to consider the earning potential before deciding a major. If you have $100,000 in student loan debt and earn $30,000 a year you may never be able to pay off your student loans and probably won’t have enough money to pay for anything else.
Deciding to get an advanced degree depends on the major and the job market. For those with an undergraduate degree who decide to go to law, dental or medical school, the education pays off. However, if you major in English and get a graduate degree in history you may not increase your earning potential by a large amount. Advanced degrees provide more income potential when starting a job or if you have several years’ experience in a particular field. Here are some tips if you decide what you should major at college.
1. Living. Stay home at least 2 – 3 years after you graduate from college. This will help you save money and you can get a handle on paying down your student loans. During this time try to work a part-time job plus your full-time job to double or triple your student loan payments. The most interest on the student loans accrues during the first 2-3 years of the loan so if you are able to pay more than the minimum monthly loan payment you will be able to pay your balance down faster.
2. Major. Major in a field that has income potential. If not, you can get a minor or take classes in areas that you love or enroll in a dual major program.
3. Volunteer. You can do volunteer work in the field that you love. Try getting internships in the field you love where you can apply skills learned in your major. When looking for a job after college this will make you more appealing as a candidate for employment.
4. Interest. Figure out what subjects you are interested in or like, what classes you received “A’s” or “B’s” in and explore what industries use that knowledge.
5. Get feedback. Ask your school counselors, teachers, parents, friends or family members what skills they think you have or what areas they think you would do go good in and explore those as a major.
If you decide to live a modest lifestyle you can major in a field you truly love. However if you want to live a certain lifestyle, go on yearly vacations, plan for retirement, own a home and have a family you may need to think hard about what to major in college and how you will pay for college.
Getting a bachelor’s degree allows you to earn on average $1,000,000 over the life of a career versus just having a high school diploma. However, a college education can come with a price. According to Payscale.com, the top 10 majors with the highest salaries are: electrical engineering, computer engineering, petroleum engineering, biomedical engineering, aerospace engineering, chemical engineering, nuclear engineering, applied mathematics, economics and physics. Art, literature, foreign languages, history and social work majors tend to make the least amount of money per year.
The cost of college tuition increases faster than the rate of inflation. It is difficult to decide what to major in at college but now college students have to consider the earning potential before deciding a major. If you have $100,000 in student loan debt and earn $30,000 a year you may never be able to pay off your student loans and probably won’t have enough money to pay for anything else.
Deciding to get an advanced degree depends on the major and the job market. For those with an undergraduate degree who decide to go to law, dental or medical school, the education pays off. However, if you major in English and get a graduate degree in history you may not increase your earning potential by a large amount. Advanced degrees provide more income potential when starting a job or if you have several years’ experience in a particular field. Here are some tips if you decide what you should major at college.
1. Living. Stay home at least 2 – 3 years after you graduate from college. This will help you save money and you can get a handle on paying down your student loans. During this time try to work a part-time job plus your full-time job to double or triple your student loan payments. The most interest on the student loans accrues during the first 2-3 years of the loan so if you are able to pay more than the minimum monthly loan payment you will be able to pay your balance down faster.
2. Major. Major in a field that has income potential. If not, you can get a minor or take classes in areas that you love or enroll in a dual major program.
3. Volunteer. You can do volunteer work in the field that you love. Try getting internships in the field you love where you can apply skills learned in your major. When looking for a job after college this will make you more appealing as a candidate for employment.
4. Interest. Figure out what subjects you are interested in or like, what classes you received “A’s” or “B’s” in and explore what industries use that knowledge.
5. Get feedback. Ask your school counselors, teachers, parents, friends or family members what skills they think you have or what areas they think you would do go good in and explore those as a major.
If you decide to live a modest lifestyle you can major in a field you truly love. However if you want to live a certain lifestyle, go on yearly vacations, plan for retirement, own a home and have a family you may need to think hard about what to major in college and how you will pay for college.
Sunday, January 02, 2011
Save Money Paying Bills
Over 15 billion checks were written in 2009. If you write checks make sure you get a checking account with no monthly fees. If you are struggling paying bills there are several ways to save money when paying your bills.
Paying bills by check can be costly. If you write 10 checks per month, it costs you $4.40 per month or $52.80 per year plus the cost of ordering checks which can range from $12-$40 per order or $144-$400 a year. If you buy money orders to pay your bills the average cost for a money order is $1.20. If get 10 money orders per month, it costs you $12 or $144 per year. Here are 9 ways to save money paying your bills.
1. Online. Use online banking to pay bills online. Make sure you get a checking account that includes the online bill payment service for free. Online banking can save you between $50 - $144 a year.
2. Many companies offer the option of paying bills by phone for a small fee. Only use this option if your payment will be late using postal mail. Pay $5-$10 versus a $25-$30 late fee.
3. Transfer. You can transfer your credit card balance to a credit card with a lower interest rate. Be cautious with transfers and make sure you pay the full balance before the promotional period expires.
4. Automatic. You can use automatic deduction to pay your bills. Make sure you have enough money in your account to cover the bills each month. Request an email confirmation for each bill paid.
5. Extra. Send more than the minimum monthly payment to save money on interest and finance charges each month. You can also send multiple payments during the month.
6. Consolidate. Get a debt consolidation loan to combine all debt into one payment. Use caution and make sure you use a reputable company. Request monthly confirmations for each bill paid. Don’t get a home equity loan to consolidate debt because if you miss a payment you may lose your home.
7. Ebilling. Get your bills online and save money. Some companies now charge for sending bills by postal mail.
8. Verify. Verify your monthly bills to make sure no errors appear on your bill. Also verify all charges. Read the fine print and ask questions. Many companies offer discounts or specials that they do not advertise. See which ones you may be eligible for.
9. Card. You can pay bills using your debit or credit card to save money on check writing fees. Check to see if the company charges a fee for paying by debit or credit card. If paying by credit card make sure you pay the amount charged in full when your credit card bill arrives to avoid interest and finance charges.
Paying bills by check can be costly. If you write 10 checks per month, it costs you $4.40 per month or $52.80 per year plus the cost of ordering checks which can range from $12-$40 per order or $144-$400 a year. If you buy money orders to pay your bills the average cost for a money order is $1.20. If get 10 money orders per month, it costs you $12 or $144 per year. Here are 9 ways to save money paying your bills.
1. Online. Use online banking to pay bills online. Make sure you get a checking account that includes the online bill payment service for free. Online banking can save you between $50 - $144 a year.
2. Many companies offer the option of paying bills by phone for a small fee. Only use this option if your payment will be late using postal mail. Pay $5-$10 versus a $25-$30 late fee.
3. Transfer. You can transfer your credit card balance to a credit card with a lower interest rate. Be cautious with transfers and make sure you pay the full balance before the promotional period expires.
4. Automatic. You can use automatic deduction to pay your bills. Make sure you have enough money in your account to cover the bills each month. Request an email confirmation for each bill paid.
5. Extra. Send more than the minimum monthly payment to save money on interest and finance charges each month. You can also send multiple payments during the month.
6. Consolidate. Get a debt consolidation loan to combine all debt into one payment. Use caution and make sure you use a reputable company. Request monthly confirmations for each bill paid. Don’t get a home equity loan to consolidate debt because if you miss a payment you may lose your home.
7. Ebilling. Get your bills online and save money. Some companies now charge for sending bills by postal mail.
8. Verify. Verify your monthly bills to make sure no errors appear on your bill. Also verify all charges. Read the fine print and ask questions. Many companies offer discounts or specials that they do not advertise. See which ones you may be eligible for.
9. Card. You can pay bills using your debit or credit card to save money on check writing fees. Check to see if the company charges a fee for paying by debit or credit card. If paying by credit card make sure you pay the amount charged in full when your credit card bill arrives to avoid interest and finance charges.
Thursday, December 30, 2010
Financial Tips for 2011
Paying Down Debt
1. Future. The future is an unknown.
2. Tax Rates. Tax rates may be higher in 2011 which means you may bring home less money. Tax credits may be reduced, child tax credit will be reduced to $500 in 2011, the deduction for mortgage insurance premiums will be eliminated, and energy saving improvements will be reduced to 10%.
3. Minimum. Paying more than the monthly minimum pays your balance down faster so you will owe less next year (interest, finance charges, etc.).
4. Shopping. Cut back on shopping to reduce changes of going into more debt or having large credit card balances after the holiday shopping season.
5. Variable. Many credit cards have been converted from fixed to variable rates which means if the federal rate increases, so will your monthly payments
6. Finances. Can improve relationship with your spouse or partner related to arguments over finances
7. Retirement. You can't focus on retirement if you are in debt
Tips to Plan for the Future
1. Change your thinking. Eliminate negative thoughts about money and bad money habits. Follow those who have good spending habits and consult a professional.
2. Emergency Fund. Create an emergency fund to cover bills for 9-12 months.
3. Plan for retirement. Contribute the maximum to get matching contributions. You will need 60-80% of your current retirement salary for a minimum of 20 years to have enough money to cover living expenses during retirement. Save 10-20% each month towards retirement.
4. Pre-retirement. One year before retirement start reducing your expenses to retirement levels to get adjusted to living on a reduced income.
5. SS Income. Don't count on social security unless you are near retirement age.
6. Financial Goals. Sets financial goals, i.e. plan for retirement, children's college education, pay off mortgage, pay off car note, etc.
7. Contributions. Increase retirement contributions with each salary increase
Planning For Retirement
1. Sign up. If you don't have a retirement account, run to your employer and sign up. Setup an account even if you are self-employed (SEP) or stay-at-home mom (spousal IRA).
2. Diversify. Don't put all of your eggs in one basket. Ensure your retirement account is diversified. This helps to offset losses.
3. Live below your means. Reduce spending and create a budget.
4. Pay down debt. Pay off large debts and keep debt at no more than 10% of your monthly income after taxes (credit cards, medical expenses, other loans, etc.)
5. Estate planning. Perform estate planning (will, trust, health care directive, etc.). Hire a lawyer to prepare documentation.
6. Review. Review financial statements on a regular basis to check for errors and stay informed about your account.
7. Backup Plan. Create a backup plan if some financial crisis occurs and you need extra money. Have a plan A, B, C and D. Use what-if scenarios.
Saving Money
1. Budget. Create a spending plan or budget to see what areas you can reduce spending. Thirty-five percent of your budget after taxes should go towards housing (mortgage/rent, utilizes, repairs), fifteen percent towards debt (credit cards, student loans, personal loans), twenty-five percent towards transportation (maintenance and car payment), ten-percent towards savings, and fifteen-percent towards other expenses (groceries, prescriptions, medical expenses, etc.).
2. Bulk. Buy items in bulk by shopping at wholesale or discount stores such as Costco, Sam’s Club or BJ’s. Buy generic brands for food, canned goods, paper products, dry goods and prescriptions.
3. Comparison Shop. Look at prices of at least three different companies to see which has the best deal. Ask if the company will honor competitor prices. Look for coupons and specials at online websites such as bizrate.com or pricegrabber.com.
4. Utilities. Buy the cheapest landline plan available. Turn to the lowest settings when you are not at home and use the recommended settings provided by the utility companies to save money on your monthly bills.
5. Bundle. Bundle services to save money on insurances such as car, mortgage and homeowners.
6. Downgrade. Downgrade all your services such as cable, internet, and cell phone. Downgrade your car or home to a cheaper model. You can sell your car and catch public transportation. If you need a car you can rent a car or use a Zip car.
7. Sell Items. Sell new or used items on eBay or Craigslist for extra cash.
1. Future. The future is an unknown.
2. Tax Rates. Tax rates may be higher in 2011 which means you may bring home less money. Tax credits may be reduced, child tax credit will be reduced to $500 in 2011, the deduction for mortgage insurance premiums will be eliminated, and energy saving improvements will be reduced to 10%.
3. Minimum. Paying more than the monthly minimum pays your balance down faster so you will owe less next year (interest, finance charges, etc.).
4. Shopping. Cut back on shopping to reduce changes of going into more debt or having large credit card balances after the holiday shopping season.
5. Variable. Many credit cards have been converted from fixed to variable rates which means if the federal rate increases, so will your monthly payments
6. Finances. Can improve relationship with your spouse or partner related to arguments over finances
7. Retirement. You can't focus on retirement if you are in debt
Tips to Plan for the Future
1. Change your thinking. Eliminate negative thoughts about money and bad money habits. Follow those who have good spending habits and consult a professional.
2. Emergency Fund. Create an emergency fund to cover bills for 9-12 months.
3. Plan for retirement. Contribute the maximum to get matching contributions. You will need 60-80% of your current retirement salary for a minimum of 20 years to have enough money to cover living expenses during retirement. Save 10-20% each month towards retirement.
4. Pre-retirement. One year before retirement start reducing your expenses to retirement levels to get adjusted to living on a reduced income.
5. SS Income. Don't count on social security unless you are near retirement age.
6. Financial Goals. Sets financial goals, i.e. plan for retirement, children's college education, pay off mortgage, pay off car note, etc.
7. Contributions. Increase retirement contributions with each salary increase
Planning For Retirement
1. Sign up. If you don't have a retirement account, run to your employer and sign up. Setup an account even if you are self-employed (SEP) or stay-at-home mom (spousal IRA).
2. Diversify. Don't put all of your eggs in one basket. Ensure your retirement account is diversified. This helps to offset losses.
3. Live below your means. Reduce spending and create a budget.
4. Pay down debt. Pay off large debts and keep debt at no more than 10% of your monthly income after taxes (credit cards, medical expenses, other loans, etc.)
5. Estate planning. Perform estate planning (will, trust, health care directive, etc.). Hire a lawyer to prepare documentation.
6. Review. Review financial statements on a regular basis to check for errors and stay informed about your account.
7. Backup Plan. Create a backup plan if some financial crisis occurs and you need extra money. Have a plan A, B, C and D. Use what-if scenarios.
Saving Money
1. Budget. Create a spending plan or budget to see what areas you can reduce spending. Thirty-five percent of your budget after taxes should go towards housing (mortgage/rent, utilizes, repairs), fifteen percent towards debt (credit cards, student loans, personal loans), twenty-five percent towards transportation (maintenance and car payment), ten-percent towards savings, and fifteen-percent towards other expenses (groceries, prescriptions, medical expenses, etc.).
2. Bulk. Buy items in bulk by shopping at wholesale or discount stores such as Costco, Sam’s Club or BJ’s. Buy generic brands for food, canned goods, paper products, dry goods and prescriptions.
3. Comparison Shop. Look at prices of at least three different companies to see which has the best deal. Ask if the company will honor competitor prices. Look for coupons and specials at online websites such as bizrate.com or pricegrabber.com.
4. Utilities. Buy the cheapest landline plan available. Turn to the lowest settings when you are not at home and use the recommended settings provided by the utility companies to save money on your monthly bills.
5. Bundle. Bundle services to save money on insurances such as car, mortgage and homeowners.
6. Downgrade. Downgrade all your services such as cable, internet, and cell phone. Downgrade your car or home to a cheaper model. You can sell your car and catch public transportation. If you need a car you can rent a car or use a Zip car.
7. Sell Items. Sell new or used items on eBay or Craigslist for extra cash.
Friday, December 24, 2010
Boys vs Girls and Spending
Students between ages 15-21 feel unprepared to face the world. Only 20% of those saved over a $1,000 compared to older teens aged 16-18. According to a Charles Schwab survey, 50% of teenagers say they spend some of their money when they get paid and save the rest, 30% save the money in a bank account. 87% of teens say their parents are their main source of financial education.
According to the Boys & Girls Club of America, teenagers that learned about checking accounts and managing money were more likely to have opened a checking and savings account and to have a budget.
You may have heard that women are from venus and men are from mars. This is evident even among children especially with money. Girls lag behind in finances and with confidence to set and obtain financial goals. Girls show low confidence when asked about money and may avoid the subject or respond by saying “I don’t know, I guess so, or laugh”. Finances are not a high priority on girls’ agendas. They focus more on appearance and use money to go shopping or on entertainment.
The difference in how girls and boys view money may be related to how parents and educators teach girls and boys about money. Mothers may take girls to the grocery store to learn about how to comparison shop and budget for groceries. Fathers may take boys to buy a car. Both are good experiences but limit the knowledge that can be shared among each child. Boys and girls should be treated the same when discussing finances and life skills. If a child is not interested, parents must still provide the basic financial and life skills knowledge so later in life children will be able to apply it to their daily lives.
Girls are more emotional when it comes to spending and boys are more results oriented. Boys like to spend their money on big purchases like electronics, cars and technology. Girls like to spend money on things with little to no value like makeup, clothes, purses, shoes, etc. Many girls are taught to find a husband to take care of them which may prevent them from learning about finances, budgeting and investing because they will depend on their husband to have the knowledge.
Parents have to get girls and boys to change the way the think about money. Parents have to tell children If you want to own a home, go on vacations and live a certain lifestyle you have to save your money, invest and make good financial decisions. Boys and girls should be taught financial skills as soon as there are taught how to add and subject to ensure they become financially responsible adults.
According to the Boys & Girls Club of America, teenagers that learned about checking accounts and managing money were more likely to have opened a checking and savings account and to have a budget.
You may have heard that women are from venus and men are from mars. This is evident even among children especially with money. Girls lag behind in finances and with confidence to set and obtain financial goals. Girls show low confidence when asked about money and may avoid the subject or respond by saying “I don’t know, I guess so, or laugh”. Finances are not a high priority on girls’ agendas. They focus more on appearance and use money to go shopping or on entertainment.
The difference in how girls and boys view money may be related to how parents and educators teach girls and boys about money. Mothers may take girls to the grocery store to learn about how to comparison shop and budget for groceries. Fathers may take boys to buy a car. Both are good experiences but limit the knowledge that can be shared among each child. Boys and girls should be treated the same when discussing finances and life skills. If a child is not interested, parents must still provide the basic financial and life skills knowledge so later in life children will be able to apply it to their daily lives.
Girls are more emotional when it comes to spending and boys are more results oriented. Boys like to spend their money on big purchases like electronics, cars and technology. Girls like to spend money on things with little to no value like makeup, clothes, purses, shoes, etc. Many girls are taught to find a husband to take care of them which may prevent them from learning about finances, budgeting and investing because they will depend on their husband to have the knowledge.
Parents have to get girls and boys to change the way the think about money. Parents have to tell children If you want to own a home, go on vacations and live a certain lifestyle you have to save your money, invest and make good financial decisions. Boys and girls should be taught financial skills as soon as there are taught how to add and subject to ensure they become financially responsible adults.
Tuesday, December 21, 2010
IRS Tax Package Mailings
The IRS will no longer mail income tax packages or booklets which contained forms and instructions for filing federal taxes to individual tax payers and business tax payers. Here are some alternatives:
1. If you make less than $49,000 a year you can use the Volunteer Income Tax Assistance (VITA) program and get your taxes prepared for free or you may be eligible to use free electronic filing. To locate the nearest VITA site, call 1-800-906-9887 and most locations offer free electronic filing.
2. If you are 60 or older you can get free tax advice and tax preparation through the Tax Counseling for the Elderly (T.C.E.) program offered by the IRS. AARP also offers tax preparation and advice. For more information on TCE, call 1-800-829-1040. For more information on AARP tax preparation, call 1-888-227-7669 or visit AARP’s website aarp.org.
3. Military personnel can also receive free tax advice and preparation at their installations and can file their taxes electronically.
To participate in the free tax preparation programs you have to bring required documentation.
• Wage and earning statement(s) Form W-2, W-2G, 1099-R from all employers
• Proof of identification
• Social Security Cards for you, your spouse and dependents and/or a SSN verification letter issued by the Social Security Administration
• Individual Taxpayer Identification Number (ITIN) assignment letter for you, your spouse and dependents
• Birth dates for you, your spouse and dependents on the tax return
• Interest and dividend statements from banks (Form 1099)
• A copy of last year’s federal and state returns if available
• Bank routing numbers and account numbers if you choose Direct Deposit
• Total paid for daycare providers and the daycare provider's tax SSN or EIN
The IRS Free File program provides free federal income tax preparation and electronic filing for taxpayers who make $57,000 or less a year. The program also provides free fillable federal tax forms for 1040, 1040A and 1040EZ forms as well as tax schedules and instructions. You may also be eligible for free electronic filing.
1. If you make less than $49,000 a year you can use the Volunteer Income Tax Assistance (VITA) program and get your taxes prepared for free or you may be eligible to use free electronic filing. To locate the nearest VITA site, call 1-800-906-9887 and most locations offer free electronic filing.
2. If you are 60 or older you can get free tax advice and tax preparation through the Tax Counseling for the Elderly (T.C.E.) program offered by the IRS. AARP also offers tax preparation and advice. For more information on TCE, call 1-800-829-1040. For more information on AARP tax preparation, call 1-888-227-7669 or visit AARP’s website aarp.org.
3. Military personnel can also receive free tax advice and preparation at their installations and can file their taxes electronically.
To participate in the free tax preparation programs you have to bring required documentation.
• Wage and earning statement(s) Form W-2, W-2G, 1099-R from all employers
• Proof of identification
• Social Security Cards for you, your spouse and dependents and/or a SSN verification letter issued by the Social Security Administration
• Individual Taxpayer Identification Number (ITIN) assignment letter for you, your spouse and dependents
• Birth dates for you, your spouse and dependents on the tax return
• Interest and dividend statements from banks (Form 1099)
• A copy of last year’s federal and state returns if available
• Bank routing numbers and account numbers if you choose Direct Deposit
• Total paid for daycare providers and the daycare provider's tax SSN or EIN
The IRS Free File program provides free federal income tax preparation and electronic filing for taxpayers who make $57,000 or less a year. The program also provides free fillable federal tax forms for 1040, 1040A and 1040EZ forms as well as tax schedules and instructions. You may also be eligible for free electronic filing.
Saturday, December 18, 2010
One Remedy to U.S. Bank Failures
According to the FDIC, as of December 17, 2010, a total of 163 banks have failed this year. Some banks were merged with larger banks, some banks never recovered and will never reopen, some banks were bought by the government and some banks were bought by other countries.
The Bank of Montreal located in Canada recently purchased the Marshall & Ilsley's bank for $4.1 billion in stock. The bank began in 1847 and is headquartered in Wisconsin. The bank has 53 locations in Arizona; 192 in Wisconsin, 33 in central Indiana, Indianapolis; 36 in west coast and central Florida; 15 in Kansas City; 26 offices in metropolitan Minneapolis and St. Paul, one in Duluth, Minnesota, 17 in greater St. Louis Minnesota; and one in Las Vegas, Nevada. The Bank of Montreal purchased Amcore Bank in Rockford, Illinois in April 2010.
Marshall & Ilsley participated in the government’s Troubled Asset Relief Program (TARP). The Bank of Montreal purchased their TARP preferred shares and plans to repay them in full before the acquisition closes. Marshall & Ilsley offers personal banking as well as investment management, mortgage banking, investment, insurance, equipment leasing and financial planning services.
The Bank of Montreal previously paid $375 million for the Canadian life insurance business of American International Group Inc. (AIG). The Bank of Montreal is the parent company of Harris Bank based in Chicago Illinois.
Canadian banks have been ranked the soundest in the world and have done much better than banks in other countries. Toronto-Dominion Bank (TD Bank) which is ranked as Canada's second largest bank, purchased New Jersey based Bancorp and the South Carolina based bank South Financial Group. TD Bank also agreed to buy the assets of three bankrupt banks: AmericanFirst Bank, Riverside National Bank of Florida and First Federal Bank of North Florida.
The U.S. Bank, TD Ameritrade Holding Corp. is owned 40% by TD Bank. In September 2010, TD Bank purchased South Financial Group Inc. bank in Greenville, South Carolina. It also purchased 2 other failed banks this year: Carolina First located in North Carolina and South Carolina and Mercantile Bank located in Florida. TD Bank previously purchased Bancorp located in Cherry Hill New Jersey and Banknorth located in Portland Maine.
The Royal Bank of Canada is the largest bank in Canada and also owns the RBC Bank in the US (formerly called RBC Centura) that has branches in Alabama, Georgia, North Carolina, Florida, South Carolina and Virginia. The Royal Bank of Canada (RBC) previously purchased Alabama National Bancorp bank, The Eagle Bancshares, Admiralty Bancorp and AmSouth bank branches.
The Bank of Montreal located in Canada recently purchased the Marshall & Ilsley's bank for $4.1 billion in stock. The bank began in 1847 and is headquartered in Wisconsin. The bank has 53 locations in Arizona; 192 in Wisconsin, 33 in central Indiana, Indianapolis; 36 in west coast and central Florida; 15 in Kansas City; 26 offices in metropolitan Minneapolis and St. Paul, one in Duluth, Minnesota, 17 in greater St. Louis Minnesota; and one in Las Vegas, Nevada. The Bank of Montreal purchased Amcore Bank in Rockford, Illinois in April 2010.
Marshall & Ilsley participated in the government’s Troubled Asset Relief Program (TARP). The Bank of Montreal purchased their TARP preferred shares and plans to repay them in full before the acquisition closes. Marshall & Ilsley offers personal banking as well as investment management, mortgage banking, investment, insurance, equipment leasing and financial planning services.
The Bank of Montreal previously paid $375 million for the Canadian life insurance business of American International Group Inc. (AIG). The Bank of Montreal is the parent company of Harris Bank based in Chicago Illinois.
Canadian banks have been ranked the soundest in the world and have done much better than banks in other countries. Toronto-Dominion Bank (TD Bank) which is ranked as Canada's second largest bank, purchased New Jersey based Bancorp and the South Carolina based bank South Financial Group. TD Bank also agreed to buy the assets of three bankrupt banks: AmericanFirst Bank, Riverside National Bank of Florida and First Federal Bank of North Florida.
The U.S. Bank, TD Ameritrade Holding Corp. is owned 40% by TD Bank. In September 2010, TD Bank purchased South Financial Group Inc. bank in Greenville, South Carolina. It also purchased 2 other failed banks this year: Carolina First located in North Carolina and South Carolina and Mercantile Bank located in Florida. TD Bank previously purchased Bancorp located in Cherry Hill New Jersey and Banknorth located in Portland Maine.
The Royal Bank of Canada is the largest bank in Canada and also owns the RBC Bank in the US (formerly called RBC Centura) that has branches in Alabama, Georgia, North Carolina, Florida, South Carolina and Virginia. The Royal Bank of Canada (RBC) previously purchased Alabama National Bancorp bank, The Eagle Bancshares, Admiralty Bancorp and AmSouth bank branches.
Wednesday, December 15, 2010
Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
Former Federal Reserve Chairman Alan Greenspan deregulated the financial industry which led to industry corruption and the recession. Back in 2001 he agreed to the Bush tax cuts but now says that the all tax cuts should expire at the end of the year because the government needs the revenue and it can help reduce the federal deficit.
Well, fast forward to today and the tax cuts enacted by President George W. Bush may be extended for two years per an agreement between the Democrats and Republicans. The agreement called the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 is expected to create over 1,000,000 jobs and improve the economy. Here is a brief list of the tax cuts that may be extended if Congress agrees to the act:
1. Child tax credit up to $1,000 for lower income individuals
2. Earned Income tax credit
3. American Opportunity tax credit - college tuition tax credit of up to $2,500
4. 2% payroll tax cut for taxpayers
5. Estate tax reinstated at 35% only for estates over $5 million, estates less than $1 million will remain tax free
6. Preserve jobless benefits for 13 months
7. Businesses can expense 100% of their investments in 2011 retroactive to September 2010
8. Those who don’t pay federal income taxes will continue to receive a
refundable credit up to $1,000
9. The capital gains tax would remain at 15% for the highest earners, lower income individuals will continue to pay zero for capital gains and dividends
10. Mortgage insurance premium deductions can continue for individuals making less than $109,000 or married couples earning less than $54,500 each
11. The energy tax credits would continue for home energy efficient improvements and hybrid cars
Well, fast forward to today and the tax cuts enacted by President George W. Bush may be extended for two years per an agreement between the Democrats and Republicans. The agreement called the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 is expected to create over 1,000,000 jobs and improve the economy. Here is a brief list of the tax cuts that may be extended if Congress agrees to the act:
1. Child tax credit up to $1,000 for lower income individuals
2. Earned Income tax credit
3. American Opportunity tax credit - college tuition tax credit of up to $2,500
4. 2% payroll tax cut for taxpayers
5. Estate tax reinstated at 35% only for estates over $5 million, estates less than $1 million will remain tax free
6. Preserve jobless benefits for 13 months
7. Businesses can expense 100% of their investments in 2011 retroactive to September 2010
8. Those who don’t pay federal income taxes will continue to receive a
refundable credit up to $1,000
9. The capital gains tax would remain at 15% for the highest earners, lower income individuals will continue to pay zero for capital gains and dividends
10. Mortgage insurance premium deductions can continue for individuals making less than $109,000 or married couples earning less than $54,500 each
11. The energy tax credits would continue for home energy efficient improvements and hybrid cars
Sunday, December 12, 2010
You Can Run But You Can't Hide From Your Debt
With the advancements in technology many debt collectors and some state taxing authorities are searching for consumers on the internet use social media networks such as Myspace, Facebook, Twitter, Linkedin and other sites to find unsuspecting consumers to pay debts. This seems unethical and illegal but it is legal.
According to the Fair Debt Practices Collection Act, debt collectors can contact your family and friends to find your location or get other personal information such as your address, email address or phone number. If you posted your contact information including your current employers on your social media profile you may soon be getting emails or phone calls from your debt collectors. What if a debt collector contacted someone who is listed as a friend on your social media profile?
If you love to use social media networks and are in debt you increase your chances of debt collectors finding you. The IRS has not confirmed whether they use social media networks to find those who owe back taxes but I suspect they do. The good news is that tax agents cannot friend a consumer who owes back taxes on a social media site but that probably doesn’t stop all tax collectors from doing it. Here are some ways you can be found on the internet:
1. Motor vehicle records
2. Employment records
3. Tax records
4. Bank records
5. Public inquiries at local businesses such as groceries stories, barbershops, church meetings, social and civic meetings, etc.
6. Internet search engines
7. Chat rooms and forums
If you owe debt and have not been contacted yet or have not paid your debt, contact the debt collector immediately to setup a payment plan or request a financial hardship and follow-up with a letter confirming the agreement. It is better in the long run if you contact them before they contact you.
According to the Fair Debt Practices Collection Act, debt collectors can contact your family and friends to find your location or get other personal information such as your address, email address or phone number. If you posted your contact information including your current employers on your social media profile you may soon be getting emails or phone calls from your debt collectors. What if a debt collector contacted someone who is listed as a friend on your social media profile?
If you love to use social media networks and are in debt you increase your chances of debt collectors finding you. The IRS has not confirmed whether they use social media networks to find those who owe back taxes but I suspect they do. The good news is that tax agents cannot friend a consumer who owes back taxes on a social media site but that probably doesn’t stop all tax collectors from doing it. Here are some ways you can be found on the internet:
1. Motor vehicle records
2. Employment records
3. Tax records
4. Bank records
5. Public inquiries at local businesses such as groceries stories, barbershops, church meetings, social and civic meetings, etc.
6. Internet search engines
7. Chat rooms and forums
If you owe debt and have not been contacted yet or have not paid your debt, contact the debt collector immediately to setup a payment plan or request a financial hardship and follow-up with a letter confirming the agreement. It is better in the long run if you contact them before they contact you.
Thursday, December 09, 2010
How to Stretch Your Paycheck
Unemployment is now at 9.8%. Some Americans have moved down an income level from upper-middle class to middle class, middle class to lower income or lower income to poverty due to the economy and job market. Many Americans are forced to live on less money while other Americans are finding it difficult to live on less for several reasons: 1) they don’t know how, 2) they don’t want to or 3) they are in denial. Here are some helpful tips to help stretch your paycheck in a tough economy.
1. Bulk. Buy items in bulk by shopping at wholesale or discount stores such as Costco, Sam’s Club or BJ’s.
2. Budget. Create a spending plan or budget to see what areas you can reduce spending. Thirty-five percent of your budget after taxes should go towards housing (mortgage/rent, utilizes, repairs), fifteen percent towards debt (credit cards, student loans, personal loans), twenty-five percent towards transportation (maintenance and car payment), ten-percent towards savings, and fifteen-percent towards other expenses (groceries, prescriptions, medical expenses, etc.).
3. Comparison Shop. Look at prices of at least three different companies to see which has the best deal. Ask if the company will honor competitor prices.
4. Online. Look for coupons and specials at online websites such as bizrate.com or pricegrabber.com.
5. Generic. Buy generic brands for food, canned goods, paper products, dry goods and prescriptions.
6. Utilities. Buy the cheapest landline plan available. Turn to the lowest settings when you are not at home and use the recommended settings provided by the utility companies to save money on your monthly bills.
7. Bundle. Bundle services to save money on insurances such as car, mortgage and homeowners.
8. Downgrade. Downgrade all your services such as cable, internet, and cell phone. Downgrade your car or home to a cheaper model. You can sell your car and catch public transportation. If you need a car you can rent a car or use a Zip car.
9. Eat at home. Skip buying lunch every day and eating out. Cook meals at home and take leftovers for lunch.
10. Get assistance. Borrow money from friends or family members. Apply for government assistance, get help from your local church or get assistance from social organizations like the Salvation Army or American Red Cross.
11. Sell Items. Sell new or used items on eBay or Craigslist for extra cash.
12. Multiple Jobs. Work multiple part-time or full-time jobs; work a combination of full-time or part-time jobs to make ends meet. Do odd jobs such as cleaning homes, shopping for the elderly or babysitting to earn extra money.
1. Bulk. Buy items in bulk by shopping at wholesale or discount stores such as Costco, Sam’s Club or BJ’s.
2. Budget. Create a spending plan or budget to see what areas you can reduce spending. Thirty-five percent of your budget after taxes should go towards housing (mortgage/rent, utilizes, repairs), fifteen percent towards debt (credit cards, student loans, personal loans), twenty-five percent towards transportation (maintenance and car payment), ten-percent towards savings, and fifteen-percent towards other expenses (groceries, prescriptions, medical expenses, etc.).
3. Comparison Shop. Look at prices of at least three different companies to see which has the best deal. Ask if the company will honor competitor prices.
4. Online. Look for coupons and specials at online websites such as bizrate.com or pricegrabber.com.
5. Generic. Buy generic brands for food, canned goods, paper products, dry goods and prescriptions.
6. Utilities. Buy the cheapest landline plan available. Turn to the lowest settings when you are not at home and use the recommended settings provided by the utility companies to save money on your monthly bills.
7. Bundle. Bundle services to save money on insurances such as car, mortgage and homeowners.
8. Downgrade. Downgrade all your services such as cable, internet, and cell phone. Downgrade your car or home to a cheaper model. You can sell your car and catch public transportation. If you need a car you can rent a car or use a Zip car.
9. Eat at home. Skip buying lunch every day and eating out. Cook meals at home and take leftovers for lunch.
10. Get assistance. Borrow money from friends or family members. Apply for government assistance, get help from your local church or get assistance from social organizations like the Salvation Army or American Red Cross.
11. Sell Items. Sell new or used items on eBay or Craigslist for extra cash.
12. Multiple Jobs. Work multiple part-time or full-time jobs; work a combination of full-time or part-time jobs to make ends meet. Do odd jobs such as cleaning homes, shopping for the elderly or babysitting to earn extra money.
Monday, December 06, 2010
Did the News Laws Help or Hurt
The CARD Act of 2009 was implemented to provide additional protections for consumers who experienced increases in credit card fees and who experienced unfair and illegal practices by credit card companies. Unfortunately, according to the Office of the Comptroller of the Currency, Better Business Bureau and state attorney general offices, consumer complaints against banks have greatly increased this year. Consumers are still suffering because banks have found new ways to bypass the new laws that were put in place.
Consumer complaints for mortgages and foreclosures have also increased. Many consumer agencies have filed lawsuits against companies in several states and some companies are being investigated.
Consumers are also complaining about bank overdraft fees. Many banks process the largest checks first which allows them to charge fees on smaller transactions after a checking account has been overdrawn.
The Federal Deposit Insurance Corporation (FDIC) which monitors the banking industry asked banks to consider eliminating overdraft fees for small accounts. Banks are pushing back because they don’t want to lose revenue generated from overdraft fees. Here are some tips to fight back against the banking and mortgage industry.
1. Research. Research several companies that provide the services you are looking for and choose the company that best suits your needs.
2. Notify. If you feel that you are being charged too many fees, contact the company and let them know you want and a reduction in fees and that you will take your business to a competitor company if you are not satisfied. You can also ask that you be transferred to the cancellation department for credit or debit cards to let them know you are serious about your request.
3. Fight Back. If you feel that you are being charged high fees or are being unfairly treated, file a complaint against the company with the Better Business Bureau, Federal Trade Commission or your state attorney general’s office.
4. Learn. Don’t make the same mistakes. Learn from your mistakes and make sure you are spending your money wisely so that you don’t get charged overdraft fees or late fees.
5. Educate. Watch financial shows or your local news, read financial newsletters or articles to learn about new and existing laws that affect you.
Consumer complaints for mortgages and foreclosures have also increased. Many consumer agencies have filed lawsuits against companies in several states and some companies are being investigated.
Consumers are also complaining about bank overdraft fees. Many banks process the largest checks first which allows them to charge fees on smaller transactions after a checking account has been overdrawn.
The Federal Deposit Insurance Corporation (FDIC) which monitors the banking industry asked banks to consider eliminating overdraft fees for small accounts. Banks are pushing back because they don’t want to lose revenue generated from overdraft fees. Here are some tips to fight back against the banking and mortgage industry.
1. Research. Research several companies that provide the services you are looking for and choose the company that best suits your needs.
2. Notify. If you feel that you are being charged too many fees, contact the company and let them know you want and a reduction in fees and that you will take your business to a competitor company if you are not satisfied. You can also ask that you be transferred to the cancellation department for credit or debit cards to let them know you are serious about your request.
3. Fight Back. If you feel that you are being charged high fees or are being unfairly treated, file a complaint against the company with the Better Business Bureau, Federal Trade Commission or your state attorney general’s office.
4. Learn. Don’t make the same mistakes. Learn from your mistakes and make sure you are spending your money wisely so that you don’t get charged overdraft fees or late fees.
5. Educate. Watch financial shows or your local news, read financial newsletters or articles to learn about new and existing laws that affect you.
Friday, December 03, 2010
2010 Tax Changes
Here are some tips on 2010 tax changes that will affect you and the amount of your refund.
1. Head of household. The head of household standard deduction increased by $50.
2. Mileage. The mileage deduction rates decreased: $.50 for business travel, $.14 for charitable services, and $.165 for medical travel.
3. EIC Credit. The maximum Earned Income credits that can be received as indicated below:
• No Children - $457
• One Child - $3,050
• Two Children - $5,036
• Three or More Children - $5,666
4. Hope Credit. Used for the first 2 years of post-secondary education increased to $2,500 in 2010. Includes 100% of qualifying tuition and related expenses up to $2,000 (plus 25% of those expenses that do not exceed $4,000 but begins phasing out for taxpayers who earn more than $80,000).
5. Energy Credit. Home energy efficiency improvements can claim a tax credit for 30% of the cost up to $1,500
6. Car Credit. Individuals and businesses who buy or lease a new hybrid gas-electric car or truck are eligible for an income tax credit for vehicles "in service" starting January 1, 2006, and purchased on or before December 31, 2010
7. Home Buyer Credit. Military personnel can take advantage of the home buyers tax credit through April 2011.
1. Head of household. The head of household standard deduction increased by $50.
2. Mileage. The mileage deduction rates decreased: $.50 for business travel, $.14 for charitable services, and $.165 for medical travel.
3. EIC Credit. The maximum Earned Income credits that can be received as indicated below:
• No Children - $457
• One Child - $3,050
• Two Children - $5,036
• Three or More Children - $5,666
4. Hope Credit. Used for the first 2 years of post-secondary education increased to $2,500 in 2010. Includes 100% of qualifying tuition and related expenses up to $2,000 (plus 25% of those expenses that do not exceed $4,000 but begins phasing out for taxpayers who earn more than $80,000).
5. Energy Credit. Home energy efficiency improvements can claim a tax credit for 30% of the cost up to $1,500
6. Car Credit. Individuals and businesses who buy or lease a new hybrid gas-electric car or truck are eligible for an income tax credit for vehicles "in service" starting January 1, 2006, and purchased on or before December 31, 2010
7. Home Buyer Credit. Military personnel can take advantage of the home buyers tax credit through April 2011.
Tuesday, November 30, 2010
End of Year Financial Tips
2010 Roth IRA Conversions
1. Funding. Funded with after-tax (post-tax) dollars, offer tax-free growth and tax-free distributions in retirement
2. Distributions. No minimum distributions and no age requirement
3. Income. Can convert to a Roth IRA regardless of your income
4. Pay taxes. Conversion taxes can be spread over two years: 2010 and 2011
Conversions after 2010 will pay the full tax due
5. Conversion. Can convert back to traditional IRA by October 15, 2011
6. 1099. No 1099 is required
7. Deadline. Make conversion by 12/31/10
Paying Down Debt Now Can Help You Next Year
1. Future. The future is an unknown.
2. Tax Rates. Tax rates may be higher in 2011 which means you may bring home less money. Tax credits may be reduced, child tax credit will be reduced to $500 in 2011, the deduction for mortgage insurance premiums will be eliminated, energy saving improvements will be reduced to 10%.
3. Minimum. Paying more than the monthly minimum pays your balance down faster so you will owe less next year (interest, finance charges, etc.).
4. Shopping. Cut back on shopping to reduce changes of going into more debt or having large credit card balances after the holiday shopping season.
5. Variable. Many credit cards have been converted from fixed to variable rates which means if the federal rate increases, so will your monthly payments
6. Finances. Can improve relationship with your spouse or partner related to arguments over finances
7. Retirement. You can't focus on retirement if you are in debt
Tips to Help You Plan for the Future
1. Change your thinking. Eliminate negative thoughts about money and bad money habits. Follow those who have good spending habits and consult a professional.
2. Emergency Fund. Create an emergency fund to cover bills for 9-12 months.
3. Plan for retirement. Contribute the maximum to get matching contributions. You will need 60-80% of your current retirement salary for a minimum of 20 years to have enough money to cover living expenses during retirement. Save 10-20% each month towards retirement.
4. Pre-retirement. One year before retirement start reducing your expenses to retirement levels to get adjusted to living on a reduced income.
5. SS Income. Don't count on social security unless you are near retirement age.
6. Financial Goals. Sets financial goals, i.e. plan for retirement, children's college education, pay off mortgage, pay off car note, etc.
7. Contributions. Increase retirement contributions with each salary increase
Tips to Plan For Retirement Now
1. Sign up. If you don't have a retirement account, run to your employer and sign up. Setup an account even if you are self-employed (SEP) or stay-at-home mom (spousal IRA).
2. Diversify. Don't put all of your eggs in one basket. Ensure your retirement account is diversified. This helps to offset losses.
3. Live below your means. Reduce spending and create a budget.
4. Pay down debt. Pay off large debts and keep debt at no more than 10% of your monthly income after taxes (credit cards, medical expenses, other loans, etc.)
5. Estate planning. Perform estate planning (will, trust, health care directive, etc.). Hire a lawyer to prepare documentation.
6. Review. Review financial statements on a regular basis to check for errors and stay informed about your account.
7. Backup Plan. Create a backup plan if some financial crisis occurs and you need extra money. Have a plan A, B, C and D. Use what-if scenarios.
1. Funding. Funded with after-tax (post-tax) dollars, offer tax-free growth and tax-free distributions in retirement
2. Distributions. No minimum distributions and no age requirement
3. Income. Can convert to a Roth IRA regardless of your income
4. Pay taxes. Conversion taxes can be spread over two years: 2010 and 2011
Conversions after 2010 will pay the full tax due
5. Conversion. Can convert back to traditional IRA by October 15, 2011
6. 1099. No 1099 is required
7. Deadline. Make conversion by 12/31/10
Paying Down Debt Now Can Help You Next Year
1. Future. The future is an unknown.
2. Tax Rates. Tax rates may be higher in 2011 which means you may bring home less money. Tax credits may be reduced, child tax credit will be reduced to $500 in 2011, the deduction for mortgage insurance premiums will be eliminated, energy saving improvements will be reduced to 10%.
3. Minimum. Paying more than the monthly minimum pays your balance down faster so you will owe less next year (interest, finance charges, etc.).
4. Shopping. Cut back on shopping to reduce changes of going into more debt or having large credit card balances after the holiday shopping season.
5. Variable. Many credit cards have been converted from fixed to variable rates which means if the federal rate increases, so will your monthly payments
6. Finances. Can improve relationship with your spouse or partner related to arguments over finances
7. Retirement. You can't focus on retirement if you are in debt
Tips to Help You Plan for the Future
1. Change your thinking. Eliminate negative thoughts about money and bad money habits. Follow those who have good spending habits and consult a professional.
2. Emergency Fund. Create an emergency fund to cover bills for 9-12 months.
3. Plan for retirement. Contribute the maximum to get matching contributions. You will need 60-80% of your current retirement salary for a minimum of 20 years to have enough money to cover living expenses during retirement. Save 10-20% each month towards retirement.
4. Pre-retirement. One year before retirement start reducing your expenses to retirement levels to get adjusted to living on a reduced income.
5. SS Income. Don't count on social security unless you are near retirement age.
6. Financial Goals. Sets financial goals, i.e. plan for retirement, children's college education, pay off mortgage, pay off car note, etc.
7. Contributions. Increase retirement contributions with each salary increase
Tips to Plan For Retirement Now
1. Sign up. If you don't have a retirement account, run to your employer and sign up. Setup an account even if you are self-employed (SEP) or stay-at-home mom (spousal IRA).
2. Diversify. Don't put all of your eggs in one basket. Ensure your retirement account is diversified. This helps to offset losses.
3. Live below your means. Reduce spending and create a budget.
4. Pay down debt. Pay off large debts and keep debt at no more than 10% of your monthly income after taxes (credit cards, medical expenses, other loans, etc.)
5. Estate planning. Perform estate planning (will, trust, health care directive, etc.). Hire a lawyer to prepare documentation.
6. Review. Review financial statements on a regular basis to check for errors and stay informed about your account.
7. Backup Plan. Create a backup plan if some financial crisis occurs and you need extra money. Have a plan A, B, C and D. Use what-if scenarios.
Saturday, November 27, 2010
Are You Paying the Right Creditor
It can be very difficult trying to make payments on a collection account because a collection agency holds a collection account for a few months, it they are unsuccessful in collecting on the debt owed the account is forwarded to another collection agency. This process continues until the account is paid or legal action is taken against the consumer.
Many consumers don't realize that once a delinquent account is reported to a collection agency a consumer has a short amount of time to pay the bill. This is because collection accounts are put on a nationwide registry and each collection agency in the country gets notified of a collection account. However, only one collection agency has a legal right to collect money on a delinquent account.
Collection agencies don't want you to know that as a consumer you have a legal right to question the validity of a collection agency which is called debt validation. Many consumers have paid money on delinquent accounts to a particular company only to find out that the company did not legally have a right to collect money on that account. As a result the consumer still owed the money on the delinquent account. Here are 7 ways to validate a debt and ensure you are paying the right creditor:
1. Request the creditor, collection agency or attorney to provide documentation that the company is authorized to collect on the debt. Ensure the name and address of the collection agency appears on the documentation which should be on company letterhead.
2. Ask for proof of the total amount of the debt including payment history from with the original creditor and status of the account. Verify the documentation against your own records.
3. Request the collection agency to provide the original contract or other documentation showing the agreement you made with the original creditor including the name and address of the original creditor.
4. Ask the creditor to provide a copy of their business license to prove they are licensed in their state to collect money on delinquent accounts. However this varies from state to state.
5. If the creditor use profanity, harasses you, is rude or threatens you inform the collection agency that they are subject to the Fair Credit Reporting Act (FCRA), they might argue and say they are not but they are considered debt collectors and are covered under the act.
6. If the creditor cannot verify the debt they cannot collect any money owed on your account and is not allowed to contact you about the debt. They also cannot report the account on your credit report.
7. A creditor may respond to your debt validation letter by sending you a summons to appear in court. This is a scare tactic and is illegal. A creditor has to validate the debt before they can file suit against you.
Many consumers don't realize that once a delinquent account is reported to a collection agency a consumer has a short amount of time to pay the bill. This is because collection accounts are put on a nationwide registry and each collection agency in the country gets notified of a collection account. However, only one collection agency has a legal right to collect money on a delinquent account.
Collection agencies don't want you to know that as a consumer you have a legal right to question the validity of a collection agency which is called debt validation. Many consumers have paid money on delinquent accounts to a particular company only to find out that the company did not legally have a right to collect money on that account. As a result the consumer still owed the money on the delinquent account. Here are 7 ways to validate a debt and ensure you are paying the right creditor:
1. Request the creditor, collection agency or attorney to provide documentation that the company is authorized to collect on the debt. Ensure the name and address of the collection agency appears on the documentation which should be on company letterhead.
2. Ask for proof of the total amount of the debt including payment history from with the original creditor and status of the account. Verify the documentation against your own records.
3. Request the collection agency to provide the original contract or other documentation showing the agreement you made with the original creditor including the name and address of the original creditor.
4. Ask the creditor to provide a copy of their business license to prove they are licensed in their state to collect money on delinquent accounts. However this varies from state to state.
5. If the creditor use profanity, harasses you, is rude or threatens you inform the collection agency that they are subject to the Fair Credit Reporting Act (FCRA), they might argue and say they are not but they are considered debt collectors and are covered under the act.
6. If the creditor cannot verify the debt they cannot collect any money owed on your account and is not allowed to contact you about the debt. They also cannot report the account on your credit report.
7. A creditor may respond to your debt validation letter by sending you a summons to appear in court. This is a scare tactic and is illegal. A creditor has to validate the debt before they can file suit against you.
Wednesday, November 24, 2010
Say No to Black Friday Shopping
Approximately 84 million Americans shopped online from the middle of November to the middle of December last year for gifts. According to comScore, last year, Americans spent almost $900 million online shopping on the Monday after Thanksgiving, $595 million on Black Friday and $300 million on Thanksgiving Day.
Many of the best bargains are for electronics and large items such as tv's and computers purchased online. Some companies are offering pre-black Friday sales and in some cases prices are better than black Friday sales. Amazon, Target, Wal-Mart and Best Buy are offering online discounts on electronics that match or beat black Friday sales. Apple.com will have a one day sale on black Friday. Several websites, like Amazon, DealNews, RetailMeNot and DealDump, create online shopping bargains all in one place so shoppers can find them easily. Also look for black Friday sales on Twitter and Facebook. Here are 12 reasons to shop online on black Friday instead of going to the stores.
1. Store gimmicks. If the store says "Limited Supply" it usually means there are 4-6 items in stock. If an item is out of stock be sure to get a rain check and go after the New Year to buy the item at the discounted price.
2. Save gas. You can shop in your pajamas instead of waiting in line at 6:00am or in the cold trying.
3. Free shipping. Many companies offer free shopping starting on Black Friday through the holiday season.
4. Stock. There are more items in stock online that in the actual stores.
5. Easier. You can take your time and in some cases chat with online representatives to answer questions.
6. Stress. Shopping online is less stressful than running through the stores, fighting for parking spaces, fighting over items on sale and waiting in long lines.
7. Safer. Shopping online is much safer and you don't have to worry about getting elbowed or trampled over while shopping.
8. Prices. Some black Friday prices are not really bargains. Just because a store advertises an item for 50-60% doesn't mean you are getting a deal. Comparison shop to ensure you are getting the best deal.
9. Security. Don’t shop with companies you never heard of or with sites that don't have a https or shttp on the payment page, a mailing address and contact phone number.
10. Payment. Shop with a credit card. If you are a victim of identity theft you will not be held liable for charges reported within a few days.
11. List. Stick to a list. Don't get enticed with advertisements for something not on your list. Don't buy items on impulse. If you get emotional about an item you see on sale wait 30 minutes and ask yourself if it is a need or want.
12. Set a budget. The holidays should be more focused on spending time with family and friends and not about buying a gift. If you have to buy a gift for a parent and child consider just buying a gift for the child. Let the parent know you are cutting back this year and really can't afford a gift right now.
Black Friday shopping has resulted in violence such as: fist fights, trampling, smashed glass doors, shootings, pushing of employees, calling the police, and even death. If you insist on going to a store, ask yourself, if buying an item that may or may not really be a bargain worth getting injured for. I will be shopping online.
Many of the best bargains are for electronics and large items such as tv's and computers purchased online. Some companies are offering pre-black Friday sales and in some cases prices are better than black Friday sales. Amazon, Target, Wal-Mart and Best Buy are offering online discounts on electronics that match or beat black Friday sales. Apple.com will have a one day sale on black Friday. Several websites, like Amazon, DealNews, RetailMeNot and DealDump, create online shopping bargains all in one place so shoppers can find them easily. Also look for black Friday sales on Twitter and Facebook. Here are 12 reasons to shop online on black Friday instead of going to the stores.
1. Store gimmicks. If the store says "Limited Supply" it usually means there are 4-6 items in stock. If an item is out of stock be sure to get a rain check and go after the New Year to buy the item at the discounted price.
2. Save gas. You can shop in your pajamas instead of waiting in line at 6:00am or in the cold trying.
3. Free shipping. Many companies offer free shopping starting on Black Friday through the holiday season.
4. Stock. There are more items in stock online that in the actual stores.
5. Easier. You can take your time and in some cases chat with online representatives to answer questions.
6. Stress. Shopping online is less stressful than running through the stores, fighting for parking spaces, fighting over items on sale and waiting in long lines.
7. Safer. Shopping online is much safer and you don't have to worry about getting elbowed or trampled over while shopping.
8. Prices. Some black Friday prices are not really bargains. Just because a store advertises an item for 50-60% doesn't mean you are getting a deal. Comparison shop to ensure you are getting the best deal.
9. Security. Don’t shop with companies you never heard of or with sites that don't have a https or shttp on the payment page, a mailing address and contact phone number.
10. Payment. Shop with a credit card. If you are a victim of identity theft you will not be held liable for charges reported within a few days.
11. List. Stick to a list. Don't get enticed with advertisements for something not on your list. Don't buy items on impulse. If you get emotional about an item you see on sale wait 30 minutes and ask yourself if it is a need or want.
12. Set a budget. The holidays should be more focused on spending time with family and friends and not about buying a gift. If you have to buy a gift for a parent and child consider just buying a gift for the child. Let the parent know you are cutting back this year and really can't afford a gift right now.
Black Friday shopping has resulted in violence such as: fist fights, trampling, smashed glass doors, shootings, pushing of employees, calling the police, and even death. If you insist on going to a store, ask yourself, if buying an item that may or may not really be a bargain worth getting injured for. I will be shopping online.
Sunday, November 21, 2010
How to Handle Creditor Calls
Creditors call your house day and night. Some are rude and ask for a payment every hour on the hour. You can stop these harassing calls. Talking to customers in a rude and unprofessional manner is against the law according to the Fair Debt Collection Practices Act (FDCPA).
If you make one late payment, usually 30 days or more late, a creditor will call to remind you to send a payment, even if the payment is one day past the due date – unless the company offers a grace period.
A creditor cannot call you before 8:00 am or after 9:00 pm. Creditors cannot use threats, use profanity, make false statements, use unfair practices, or make repeated calls to your home to collect a debt.
If a creditor contacts you, as a consumer, legally you have the right to ask them to stop calling which is called "cease and desist" by writing a letter telling the creditor to stop contacting you by phone. You also have the option of having the creditor contact you by mail only which I strongly advice. Cutting off all contact with the creditor may anger the company and cause them to quickly take legal action against you.
If you are late on a payment, notify your creditor immediately that you are having financial problems and try to setup a payment plan with them to prevent the item from being reported on your credit report and to maintain a good relationship with the company.
If you feel a creditor has violated the Fair Credit Reporting Act you may file a complaint against them by calling the Federal Trade Commission at 1-877-FTC-HELP or visit ftc.gov to fill out an online complaint.
If you make one late payment, usually 30 days or more late, a creditor will call to remind you to send a payment, even if the payment is one day past the due date – unless the company offers a grace period.
A creditor cannot call you before 8:00 am or after 9:00 pm. Creditors cannot use threats, use profanity, make false statements, use unfair practices, or make repeated calls to your home to collect a debt.
If a creditor contacts you, as a consumer, legally you have the right to ask them to stop calling which is called "cease and desist" by writing a letter telling the creditor to stop contacting you by phone. You also have the option of having the creditor contact you by mail only which I strongly advice. Cutting off all contact with the creditor may anger the company and cause them to quickly take legal action against you.
If you are late on a payment, notify your creditor immediately that you are having financial problems and try to setup a payment plan with them to prevent the item from being reported on your credit report and to maintain a good relationship with the company.
If you feel a creditor has violated the Fair Credit Reporting Act you may file a complaint against them by calling the Federal Trade Commission at 1-877-FTC-HELP or visit ftc.gov to fill out an online complaint.
Thursday, November 18, 2010
Tips for Estate Planning
An estate is property owned by you at the time of your death including: real estate, bank accounts, stocks, bonds, mutual funds, life insurance policies, and personal property such as cars, jewelry, and art. Estate Planning ensures that your property and health care wishes are honored, and that loved ones are provided for after your death. Estate planning can include wills, trusts, and health care directives.
According to Retirement Made Simpler, in 2009, women, younger and lower-income adults were less likely than men, older and higher-income adults to say they participate in a 401k plan offered by their employers. Approximately 53% of adults feel that even if their 401k account has lost value, it is as important to continue contributing to it. Here are some tips for estate planning.
Will Preparation:
1. If no will court decides who gets your assets
2. Living spouse and children get assets and if no children next to kin gets assets
3. Identifies who will take care of children and who manages will
4. Minimizes legal and court fees
5. Laws vary by state
6. No absolute right to estate
7. Signed by 2-3 witnesses
Living Trust:
1. Maintains privacy
2. Minimize gift and estate taxes
3. Can’t have trust without a will
4. Can put conditions on how your assets are distributed after you die
5. Covers only specific assets (life insurance, property, etc.)
6. Use if you have a net worth of $100,000 or more
7. Use if you want to maximize estate tax exemptions
For more information on estate planning visit moneycentral.msn.com/quiz/make-a-will-quiz/home.aspx or www.nolo.com/products/nolos-online-living-trust-NNTRUS.html.
According to Retirement Made Simpler, in 2009, women, younger and lower-income adults were less likely than men, older and higher-income adults to say they participate in a 401k plan offered by their employers. Approximately 53% of adults feel that even if their 401k account has lost value, it is as important to continue contributing to it. Here are some tips for estate planning.
Will Preparation:
1. If no will court decides who gets your assets
2. Living spouse and children get assets and if no children next to kin gets assets
3. Identifies who will take care of children and who manages will
4. Minimizes legal and court fees
5. Laws vary by state
6. No absolute right to estate
7. Signed by 2-3 witnesses
Living Trust:
1. Maintains privacy
2. Minimize gift and estate taxes
3. Can’t have trust without a will
4. Can put conditions on how your assets are distributed after you die
5. Covers only specific assets (life insurance, property, etc.)
6. Use if you have a net worth of $100,000 or more
7. Use if you want to maximize estate tax exemptions
For more information on estate planning visit moneycentral.msn.com/quiz/make-a-will-quiz/home.aspx or www.nolo.com/products/nolos-online-living-trust-NNTRUS.html.
Monday, November 15, 2010
More Car Recalls in 2010
Cars are not what they used to be. Cars used to last for 5 to 10 years without major defects or major problems. Nowadays you are lucky if you car lasts during the warranty. Think twice before trading in your old car for a shiny new one.
Last month there were multiple car recalls. Honda recalled approximately 500,000 cars with brake problems for the Odysseys and Acura RLs models from 2005 to 2007. Toyota recalled over 730,000 cards with unsafe brakes for the Avalon models from 2005 to 2006, non-hybrid Highlanders from 2004 through 2006, Lexus RX330, LXGS300, IS250 and IS350 from 2006.
BMV recalled over 150,000 cars because of potential problems with their fuel pumps. The problem affects cars with twin-turbo six cylinder engines with high pressure injection and direct fuel injection systems. The recall affects the 335i models from 2007 to 2010, 135i, 535i and X6 xDrive35I sports activity coupes from 2008 to 2010, Z4 roadster sDrive35i models from 2009 to 2010, MY 2008 X5 sports activity cars.
Here are 4 tips to help if your car is recalled.
1. Research. Find out what the process is to get your car fixed and if you will be compensated for the recalled part or for a rental car while your car is being repaired. Check the company's website to see if any information has been posted.
2. Call. Contact the car manufacturer directly to get accurate information on the model being recalled.
3. Status. Check on the status of your car repair frequently and document all phone calls with the car dealer and car manufacturer. Ask for a letter in writing from the car manufacturer stating what model what recalled and the process for addressing the recalled model.
4. Car Fund. Start creating an emergency car fund so if you have to get your car repaired you minimize the chance of going into debt.
Last month there were multiple car recalls. Honda recalled approximately 500,000 cars with brake problems for the Odysseys and Acura RLs models from 2005 to 2007. Toyota recalled over 730,000 cards with unsafe brakes for the Avalon models from 2005 to 2006, non-hybrid Highlanders from 2004 through 2006, Lexus RX330, LXGS300, IS250 and IS350 from 2006.
BMV recalled over 150,000 cars because of potential problems with their fuel pumps. The problem affects cars with twin-turbo six cylinder engines with high pressure injection and direct fuel injection systems. The recall affects the 335i models from 2007 to 2010, 135i, 535i and X6 xDrive35I sports activity coupes from 2008 to 2010, Z4 roadster sDrive35i models from 2009 to 2010, MY 2008 X5 sports activity cars.
Here are 4 tips to help if your car is recalled.
1. Research. Find out what the process is to get your car fixed and if you will be compensated for the recalled part or for a rental car while your car is being repaired. Check the company's website to see if any information has been posted.
2. Call. Contact the car manufacturer directly to get accurate information on the model being recalled.
3. Status. Check on the status of your car repair frequently and document all phone calls with the car dealer and car manufacturer. Ask for a letter in writing from the car manufacturer stating what model what recalled and the process for addressing the recalled model.
4. Car Fund. Start creating an emergency car fund so if you have to get your car repaired you minimize the chance of going into debt.
Friday, November 12, 2010
Organization is The Key to Filing Taxes
Every year Americans have to file their taxes unless they don't earn enough income to qualify having taxes taken out. There are tons of tools available to help prepare your taxes and determine if you will get a refund or owe money. Some of the most widely used tools are Turbo Tax, Tax Cut and Quicken.
One of the reasons many Americans end up owing taxes or miss out on claiming deduction is because their financial papers are not in order. Many throw away, misplace receipts or even falsify documents because the original document cannot be found.
Don't wait until the last minute, this year start early and gather all of your financial paperwork. You can use an automated tool to track your spending and deductions or use a piece of paper, or word processing software such as Excel or Access. Getting organized will help you to see right away what deduction you can qualify for.
Using a tax preparation tool has all the tax laws imbedded in the tool which makes it easier for you to see what deductions you are eligible to claim. Here are 6 tips to help you get organized this tax season.
1. Gather. Gather all receipts, monthly, quarterly and yearly statements, medical bills, student loans, credit card statements, prescriptions, financial statements, etc. and place in one easy to find location.
2. Automation. Use a software package like Quicken or Quick Books to record all of your deductions. Use basic column headings: Item, Date Purchased or Sold, Cost, Quantity, Total Cost.
3. Categorize. Identify all items that can be used as itemized deductions and put them in one folder. Determine if the standard deduction for your tax bracket is greater than your itemized deductions. (This can be found in the IRS tax manual by using the items identified in tip 2). If not (standard deduction is less than itemized deduction), use the worksheet included with your IRS tax booklet to calculate your itemized deductions.
4. Go Green. To save money file your taxes electronically. You will receive your refund in approximately two weeks from the date of filing and you help save the environment.
5. Be Patient. Don't get a tax refund loan (rapid refund) or refund anticipation loan. You are charged a fee to get the refund loan which usually has high interest rates and associated fees. Save yourself time and money.
6. Free Filing. If you salary is less than $52,000 or less you can file your taxes electronically for free.
One of the reasons many Americans end up owing taxes or miss out on claiming deduction is because their financial papers are not in order. Many throw away, misplace receipts or even falsify documents because the original document cannot be found.
Don't wait until the last minute, this year start early and gather all of your financial paperwork. You can use an automated tool to track your spending and deductions or use a piece of paper, or word processing software such as Excel or Access. Getting organized will help you to see right away what deduction you can qualify for.
Using a tax preparation tool has all the tax laws imbedded in the tool which makes it easier for you to see what deductions you are eligible to claim. Here are 6 tips to help you get organized this tax season.
1. Gather. Gather all receipts, monthly, quarterly and yearly statements, medical bills, student loans, credit card statements, prescriptions, financial statements, etc. and place in one easy to find location.
2. Automation. Use a software package like Quicken or Quick Books to record all of your deductions. Use basic column headings: Item, Date Purchased or Sold, Cost, Quantity, Total Cost.
3. Categorize. Identify all items that can be used as itemized deductions and put them in one folder. Determine if the standard deduction for your tax bracket is greater than your itemized deductions. (This can be found in the IRS tax manual by using the items identified in tip 2). If not (standard deduction is less than itemized deduction), use the worksheet included with your IRS tax booklet to calculate your itemized deductions.
4. Go Green. To save money file your taxes electronically. You will receive your refund in approximately two weeks from the date of filing and you help save the environment.
5. Be Patient. Don't get a tax refund loan (rapid refund) or refund anticipation loan. You are charged a fee to get the refund loan which usually has high interest rates and associated fees. Save yourself time and money.
6. Free Filing. If you salary is less than $52,000 or less you can file your taxes electronically for free.
Tuesday, November 09, 2010
How to Lower Heating Costs
This year's winter season didn't seem like a normal winter season where in some parts of the country temperatures were in the 70's and 80's even until the last week of October. For utility companies specifically the gas company, the winter season begins October 1 and ends March 31. According to the Energy information Administration the average American household will pay $27 more than last year due to a 6% price increase.
Approximately 52% of all U.S. homes depend on natural gas as their primary heating fuel. Approximately 7% of U.S. homes depend on heating oil and will pay approximately $220 more this winter. Approximately 6% of all U.S. homes use propane for heating and can expect to pay approximately $136 more than last year. Approximately 37% of all U.S. homes use electricity for heating and can expect to pay approximately $18 less this winter.
The national average price for heating with oil has more than quadrupled to 198% from 2003-2004 to 2008-2009. Here are 9 tips to save on heating costs this winter.
1. Yearly check. Have annual checks on your heating system such as your furnace before the winter season begins. It is best to get a checkup during the summer months when business is slow.
2. Insulate. Insulate your attic and any other areas that are drafty such as your attic, basement, ceilings, walls, crawl spaces, hot water pipes, furnaces, ducts, etc.
3. Automate. Install a programmable thermostat and keep your setting on 68% Fahrenheit. Lower the temperature setting while away from home and during the day. This can save 20% on your heating costs.
4. Seal drafts. Seal any drafts around windows, chimneys, pipes, light fixtures, doors or electrical outlets which can reduce your heating costs by 30%. Replace drafty windows if needed. Hang curtains to seal drafts from windows or place rugs at doors to keep air out.
5. Water Heater. Buy a home water heater insulator to keep the water hot longer and reduce the amount of gas needed to heat the hot water heater.
6. Clothes. Wear more clothes at home to prevent turning the thermostat up.
7. Let the sun in. Open blinds or curtains during the day to let heat in.
8. Use fans. Use ceiling fans and run in the opposite direction to circulate heat.
9. Cover floors. Carpet floors to retain heat and keep floors warm.
Approximately 52% of all U.S. homes depend on natural gas as their primary heating fuel. Approximately 7% of U.S. homes depend on heating oil and will pay approximately $220 more this winter. Approximately 6% of all U.S. homes use propane for heating and can expect to pay approximately $136 more than last year. Approximately 37% of all U.S. homes use electricity for heating and can expect to pay approximately $18 less this winter.
The national average price for heating with oil has more than quadrupled to 198% from 2003-2004 to 2008-2009. Here are 9 tips to save on heating costs this winter.
1. Yearly check. Have annual checks on your heating system such as your furnace before the winter season begins. It is best to get a checkup during the summer months when business is slow.
2. Insulate. Insulate your attic and any other areas that are drafty such as your attic, basement, ceilings, walls, crawl spaces, hot water pipes, furnaces, ducts, etc.
3. Automate. Install a programmable thermostat and keep your setting on 68% Fahrenheit. Lower the temperature setting while away from home and during the day. This can save 20% on your heating costs.
4. Seal drafts. Seal any drafts around windows, chimneys, pipes, light fixtures, doors or electrical outlets which can reduce your heating costs by 30%. Replace drafty windows if needed. Hang curtains to seal drafts from windows or place rugs at doors to keep air out.
5. Water Heater. Buy a home water heater insulator to keep the water hot longer and reduce the amount of gas needed to heat the hot water heater.
6. Clothes. Wear more clothes at home to prevent turning the thermostat up.
7. Let the sun in. Open blinds or curtains during the day to let heat in.
8. Use fans. Use ceiling fans and run in the opposite direction to circulate heat.
9. Cover floors. Carpet floors to retain heat and keep floors warm.
Saturday, November 06, 2010
Green Tax Tips for 2010
It's Tax Season. That dreaded time of year when you have to look through all of your receipts and try to piece together your spending for the year to file your taxes and hope you get a refund. In addition to the tax credits and usual tax benefits, you can also get tax credits for going green. Going green can qualify you for federal tax deductions for individuals as well as businesses.
Businesses that make changes in their appliances and products can get federal tax credits including those that recycle, buy recycling equipment, or use recycled materials. These can include items such solar water heaters which could qualify for a tax credit of 30 percent of the cost of the appliance.
Many state taxing authorities offer tax deductions and tax credits for going green to individuals. New legislation allows employers to give employees up to $20 a month for riding a bike to work. Employers can reimburse up to $230 per month of an employee’s public transportation expenses.
Solar homeowners and businesses can get tax credits for installing solar panels and solar powered water heaters. Solar water heaters may qualify for a tax credit of up to 30% of the purchase price. Improvements to a taxpayer's primary residence must be made before January 1, 2011. Here are 5 tax tips to go green.
1. Residential Energy Efficient Property Credit. This tax credit qualifies residential energy appliances such as solar hot water heaters, solar electricity equipment, geothermal heat pumps and wind turbines installed in or on the home and ends in 2016. The credit is 30% of the cost of home.
2. Plug-in Electric Vehicle Credit. This tax credit is for two types of plug-in vehicles: two- or three-wheeled vehicles or certain low-speed electric vehicles. The credit is 10% of the cost of the vehicle, up to a maximum credit of $2,500 for purchases made after February 17, 2009, and before January 1, 2012.
3. Residential Energy Property Credit. This tax credit is for homeowners who make energy efficient improvements to their existing homes. The credit is 30 percent of the cost of all improvements. The credit applies to improvements such as energy efficient windows, insulation, heat pumps and energy-efficient heating and air conditioning. The maximum credit is $1,500 for improvements placed in service in 2010.
4. Credit for Car Conversion Kits. This credit is for car owners who convert a vehicle to a qualified plug-in electric vehicle. This credit is 10% of the cost of converting a vehicle that is placed in service after Feb. 17, 2009. The maximum credit is $4,000 and ends in 2011.
5. Treatment of Alternative Motor Vehicle Credit. This credit allows the Alternative Motor Vehicle Credit, including the tax credit for purchasing hybrid vehicles, to be applied against the Alternative Minimum Tax (AMT).
To claim the green tax credit you must file out Form 5695, Residential Energy Credits. Manufacturers must certify that their products meet the green standards and they must provide a written statement to the taxpayer in the product packaging or on the manufacturers’ website.
Businesses that make changes in their appliances and products can get federal tax credits including those that recycle, buy recycling equipment, or use recycled materials. These can include items such solar water heaters which could qualify for a tax credit of 30 percent of the cost of the appliance.
Many state taxing authorities offer tax deductions and tax credits for going green to individuals. New legislation allows employers to give employees up to $20 a month for riding a bike to work. Employers can reimburse up to $230 per month of an employee’s public transportation expenses.
Solar homeowners and businesses can get tax credits for installing solar panels and solar powered water heaters. Solar water heaters may qualify for a tax credit of up to 30% of the purchase price. Improvements to a taxpayer's primary residence must be made before January 1, 2011. Here are 5 tax tips to go green.
1. Residential Energy Efficient Property Credit. This tax credit qualifies residential energy appliances such as solar hot water heaters, solar electricity equipment, geothermal heat pumps and wind turbines installed in or on the home and ends in 2016. The credit is 30% of the cost of home.
2. Plug-in Electric Vehicle Credit. This tax credit is for two types of plug-in vehicles: two- or three-wheeled vehicles or certain low-speed electric vehicles. The credit is 10% of the cost of the vehicle, up to a maximum credit of $2,500 for purchases made after February 17, 2009, and before January 1, 2012.
3. Residential Energy Property Credit. This tax credit is for homeowners who make energy efficient improvements to their existing homes. The credit is 30 percent of the cost of all improvements. The credit applies to improvements such as energy efficient windows, insulation, heat pumps and energy-efficient heating and air conditioning. The maximum credit is $1,500 for improvements placed in service in 2010.
4. Credit for Car Conversion Kits. This credit is for car owners who convert a vehicle to a qualified plug-in electric vehicle. This credit is 10% of the cost of converting a vehicle that is placed in service after Feb. 17, 2009. The maximum credit is $4,000 and ends in 2011.
5. Treatment of Alternative Motor Vehicle Credit. This credit allows the Alternative Motor Vehicle Credit, including the tax credit for purchasing hybrid vehicles, to be applied against the Alternative Minimum Tax (AMT).
To claim the green tax credit you must file out Form 5695, Residential Energy Credits. Manufacturers must certify that their products meet the green standards and they must provide a written statement to the taxpayer in the product packaging or on the manufacturers’ website.
Wednesday, November 03, 2010
How to Establish Business Credit
Two-thirds of new businesses survive at least two years, and 44% percent survive at least four years. Thirty-three percent of self-made millionaires are entrepreneurs. Now is a great time for entrepreneurs to start a business.
It is important to establish business credit when you are running a business because when you apply for business loans or credit, companies will look at your personal credit and your business credit profile to determine: if you will be approved, the amount approved, the terms of the approval and if you will have to give a personal guarantee. It takes about 6-9 months to establish business credit and up to 2 years to establish good to excellent business credit.
When you separate your business and personal credit it makes it easier to file your taxes. Opening a business credit card account provides a professional image for your company and ensures other businesses perceive you as a legitimate company.
There are only a few payments options available when making business transactions such as credit card, PayPal, debit card and checks. Business credit cards provide higher limits and higher rewards than personal credit cards.
Before applying for business credit and to ensure you are approved you will need: two years of financial statements and tax returns, one bank reference, and a good relationship with your local bank. You can do this by opening a CD for 3-6 months. Once it matures take the money out and open a small personal loan. Pay the loan back on time or before the loan end date. This helps establish a relationship with the bank. Now the bank will be more willing to approve you for a business loan or business credit card.
Here are 6 tips to establish business credit:
1. Open a business credit card or trade line with your business tax id to keep your personal credit and business credit separate such as Staples, Office Depot, UPS, FedEx, Office Max, Exxon, etc. You will need 5 trade references reporting to Dunn & Bradstreet.
2. You can apply for a business credit card with your SSN. However, if you make a late payment your personal credit is damaged.
3. Establish a business profile with Dunn & Bradstreet and get a Paydex score (business credit score).
4. Get a credit card with no personal guarantee. This ensures that if the business fails you are not responsible for any debt owed.
5. Get a secured business credit card.
6. Setup business credit reports with at least 3 agencies (Experian, Equifax, Dunn & Bradstreet, TransUnion, etc.)
It is important to establish business credit when you are running a business because when you apply for business loans or credit, companies will look at your personal credit and your business credit profile to determine: if you will be approved, the amount approved, the terms of the approval and if you will have to give a personal guarantee. It takes about 6-9 months to establish business credit and up to 2 years to establish good to excellent business credit.
When you separate your business and personal credit it makes it easier to file your taxes. Opening a business credit card account provides a professional image for your company and ensures other businesses perceive you as a legitimate company.
There are only a few payments options available when making business transactions such as credit card, PayPal, debit card and checks. Business credit cards provide higher limits and higher rewards than personal credit cards.
Before applying for business credit and to ensure you are approved you will need: two years of financial statements and tax returns, one bank reference, and a good relationship with your local bank. You can do this by opening a CD for 3-6 months. Once it matures take the money out and open a small personal loan. Pay the loan back on time or before the loan end date. This helps establish a relationship with the bank. Now the bank will be more willing to approve you for a business loan or business credit card.
Here are 6 tips to establish business credit:
1. Open a business credit card or trade line with your business tax id to keep your personal credit and business credit separate such as Staples, Office Depot, UPS, FedEx, Office Max, Exxon, etc. You will need 5 trade references reporting to Dunn & Bradstreet.
2. You can apply for a business credit card with your SSN. However, if you make a late payment your personal credit is damaged.
3. Establish a business profile with Dunn & Bradstreet and get a Paydex score (business credit score).
4. Get a credit card with no personal guarantee. This ensures that if the business fails you are not responsible for any debt owed.
5. Get a secured business credit card.
6. Setup business credit reports with at least 3 agencies (Experian, Equifax, Dunn & Bradstreet, TransUnion, etc.)
Sunday, October 31, 2010
Beware of Credit and Debit Card Scams
I was a victim of identity theft on my business debit card. Two fraudulent charges were made on my business account - both were under $10. How often have you seen charges that range from $2-$10 and for a second you wondered what the charge was but ignored it. Well I did just that.
The first charge I saw I assumed it was correct but I saw a similar charge two months later around the same amount of the first charge. I never bought anything from the company. I looked at all my receipts and bank statements. I researched the company. I called and let a voicemail message and never got a call back. The automated message stated they were busy helping other customers and to leave a message. I further researched the company phone number and other customers had been victims of fraud by the same company. It was a bogus company. I had been scammed.
I contacted my bank and told them of the fraud. They immediately placed an alert on my account and after 2 business days the charges were credited back to my account which totaled $18.98. If I never investigated these charges, the charges could have continued for years. My business account is with one of the largest banks in the country. I am going to open a new business account with another bank tomorrow.
The FTC has been cracking down on debit card scams. The FTC is investigating an international micropayment scam that stole almost $10 million from customers' credit and debit cards. Over 1 million credit cards were used to make fraudulent charges. Most of the charges were not disputed. The FTC closed down phony merchant accounts used by the scammers.
The charges were not detected by bank antifraud software. Some customers didn't bother to dispute the low charges. The identity thieves charges approximately $9.5 million over a 4-year period of four year starting in 2006. Here are 6 ways to protect your personal and business credit and debit cards from fraud.
1. Go with your gut feeling. Don't doubt yourself.
2. Don't give out your checking account number, tax id, personal or business credit card number over the phone unless you know the company and understand why the information is necessary.
3. If someone says they are taping your call, ask why. Don't be afraid to ask questions.
4. Companies do not ask for your bank account information unless you have expressly agreed to this payment method.
5. Do business with reputable companies. Be sure the company website has a physical address that is verifiable and a phone number that is answered by a live person. Verify the company phone number in the Verizon online yellow pages or do an internet search on the phone number.
6. Report the fraud to the FTC at ftc.gov by filling out an identity theft complaint form.
The first charge I saw I assumed it was correct but I saw a similar charge two months later around the same amount of the first charge. I never bought anything from the company. I looked at all my receipts and bank statements. I researched the company. I called and let a voicemail message and never got a call back. The automated message stated they were busy helping other customers and to leave a message. I further researched the company phone number and other customers had been victims of fraud by the same company. It was a bogus company. I had been scammed.
I contacted my bank and told them of the fraud. They immediately placed an alert on my account and after 2 business days the charges were credited back to my account which totaled $18.98. If I never investigated these charges, the charges could have continued for years. My business account is with one of the largest banks in the country. I am going to open a new business account with another bank tomorrow.
The FTC has been cracking down on debit card scams. The FTC is investigating an international micropayment scam that stole almost $10 million from customers' credit and debit cards. Over 1 million credit cards were used to make fraudulent charges. Most of the charges were not disputed. The FTC closed down phony merchant accounts used by the scammers.
The charges were not detected by bank antifraud software. Some customers didn't bother to dispute the low charges. The identity thieves charges approximately $9.5 million over a 4-year period of four year starting in 2006. Here are 6 ways to protect your personal and business credit and debit cards from fraud.
1. Go with your gut feeling. Don't doubt yourself.
2. Don't give out your checking account number, tax id, personal or business credit card number over the phone unless you know the company and understand why the information is necessary.
3. If someone says they are taping your call, ask why. Don't be afraid to ask questions.
4. Companies do not ask for your bank account information unless you have expressly agreed to this payment method.
5. Do business with reputable companies. Be sure the company website has a physical address that is verifiable and a phone number that is answered by a live person. Verify the company phone number in the Verizon online yellow pages or do an internet search on the phone number.
6. Report the fraud to the FTC at ftc.gov by filling out an identity theft complaint form.
Thursday, October 28, 2010
Halloween Mania and Money
Halloween is celebrated by many Americans in the United States. Is Halloween really a holiday? We don't get a day off work to celebrate it but it is treated as a holiday and it seems as though some people get more excited about Halloween than Christmas. I wonder if the people who dress up at Halloween also dress up as Santa or Mrs. Claus at Christmas or dress up at Thanksgiving.
Companies make millions of dollars in sales during Halloween. Disney theme parks had a 40% increase in attendance at Disneyland in LA. In 2009, companies made approximately 6 billion dollars in Halloween sales.
If Americans took the money they plan on spending this year for Halloween and put it towards paying down their debt or put it in an emergency fund they would be in a better financial position next year. If you are going to celebrate Halloween this year here are 5 ways to save money.
1. Costumes. Buy costumes from the dollar store or make you own. Dress up like a cartoon character or a TV show character.
2. Candy. Buy candy from the dollar store or at discount or wholesale stores like Costco, BJ's or Price Club. You can also use coupons at store that double the coupon value.
3. Family Outings. Carpool, buy bulk tickets or ask about discounts for families or large parties to save money on admission fees for haunted houses or other activities.
4. Host a party. Host your own Halloween party and ask guests to bring a dish. This way you save money by not going out and get the luxury of staying at home.
5. Skip Halloween. Skip Halloween and do something that is low cost or free like attending church, visiting family or plan a family night and watch TV. This will save you a lot of money and will bring your family closer together.
Companies make millions of dollars in sales during Halloween. Disney theme parks had a 40% increase in attendance at Disneyland in LA. In 2009, companies made approximately 6 billion dollars in Halloween sales.
If Americans took the money they plan on spending this year for Halloween and put it towards paying down their debt or put it in an emergency fund they would be in a better financial position next year. If you are going to celebrate Halloween this year here are 5 ways to save money.
1. Costumes. Buy costumes from the dollar store or make you own. Dress up like a cartoon character or a TV show character.
2. Candy. Buy candy from the dollar store or at discount or wholesale stores like Costco, BJ's or Price Club. You can also use coupons at store that double the coupon value.
3. Family Outings. Carpool, buy bulk tickets or ask about discounts for families or large parties to save money on admission fees for haunted houses or other activities.
4. Host a party. Host your own Halloween party and ask guests to bring a dish. This way you save money by not going out and get the luxury of staying at home.
5. Skip Halloween. Skip Halloween and do something that is low cost or free like attending church, visiting family or plan a family night and watch TV. This will save you a lot of money and will bring your family closer together.
Tuesday, October 26, 2010
Retirement and You
Last week was designated as National Savings Retirement Week to help bring awareness to the need to plan for retirement. Many Americans still do not save enough for retirement and some do understand the importance of saving for retirement.
According to a 2009 EBRI a study of employees: 43% of workers said they have less than $10,000 in savings, while 27% of workers said they had less than $1,000. According to the FDIC: 97% of Americans will be dependent to some degree on family, friends or the government in retirement; a 65 year-old couple retiring today has a 63% chance that one of them will live to 90 years old; a 65 year-old couple retiring today will need approximately $240,000 to cover just medical expenses even with Medicare assistance.
You will need at least 60-70% of your salary during retirement. You should plan to save enough in your retirement account to cover living expenses for at least 20 years. Here is a retirement checklist to use when saving for retirement.
1. Do you have a retirement account?
2. Have you contacted a professional to map out your retirement plan and goals?
3. Do you know your retirement account balance?
4. Do you check your quarterly retirement statement?
5. Is your retirement portfolio diversified?
6. Do you know where you will live, what age you want to retire and the lifestyle you want to live during retirement?
7. Have you determined what costly expenses you will need during retirement (healthcare, prescriptions, etc.)?
8. Have you created an estimated budget for retirement?
9. Will you have enough life, health, disability and long-term care insurance?
10. Do you plan to pay off your mortgage and any other large debts prior to retirement? If not, how do you plan to pay for those expenses?
11. Do you want to be fully retired or work part-time?
12. Will you be eligible for social security when you retire?
13. Is your beneficiary information is up-to-date?
Here are 6 ways to help you prepare for retirement and increase your retirement savings.
a) Don't panic. Don’t make decisions based on emotions or get overwhelmed by the media, fear, anxiety and nervousness of those around you. Stay calm and follow the plan you have setup with your financial planner. Don't torture yourself by checking the stock market everyday or checking your retirement account balance every week or every month.
b) Review. Review your financial goals with your financial planner at least once a year to ensure you are on track to meet your goals. Also, check your statement for any errors and notify your financial planner immediately.
c) Time. Your money cannot grow if you take it out too soon. It takes a minimum of 7 years to see a significant return on your investment so leave your money in your account.
d) Diversify. If you have all of your investment in one area, re-allocate your investments to at least 3 areas to minimize losses.
e)DRIPs. To offset any losses you may have experienced you can purchase a Dividend Reinvestment Plan (DRIP) or use it as an easy way to start investing.
f) Buy now. The motto is "buy low, sell high" is very appropriate during a recession. This is a great time to buy stocks or to invest in a mutual fund. When the market bounces back you will have achieved great gains.
According to a 2009 EBRI a study of employees: 43% of workers said they have less than $10,000 in savings, while 27% of workers said they had less than $1,000. According to the FDIC: 97% of Americans will be dependent to some degree on family, friends or the government in retirement; a 65 year-old couple retiring today has a 63% chance that one of them will live to 90 years old; a 65 year-old couple retiring today will need approximately $240,000 to cover just medical expenses even with Medicare assistance.
You will need at least 60-70% of your salary during retirement. You should plan to save enough in your retirement account to cover living expenses for at least 20 years. Here is a retirement checklist to use when saving for retirement.
1. Do you have a retirement account?
2. Have you contacted a professional to map out your retirement plan and goals?
3. Do you know your retirement account balance?
4. Do you check your quarterly retirement statement?
5. Is your retirement portfolio diversified?
6. Do you know where you will live, what age you want to retire and the lifestyle you want to live during retirement?
7. Have you determined what costly expenses you will need during retirement (healthcare, prescriptions, etc.)?
8. Have you created an estimated budget for retirement?
9. Will you have enough life, health, disability and long-term care insurance?
10. Do you plan to pay off your mortgage and any other large debts prior to retirement? If not, how do you plan to pay for those expenses?
11. Do you want to be fully retired or work part-time?
12. Will you be eligible for social security when you retire?
13. Is your beneficiary information is up-to-date?
Here are 6 ways to help you prepare for retirement and increase your retirement savings.
a) Don't panic. Don’t make decisions based on emotions or get overwhelmed by the media, fear, anxiety and nervousness of those around you. Stay calm and follow the plan you have setup with your financial planner. Don't torture yourself by checking the stock market everyday or checking your retirement account balance every week or every month.
b) Review. Review your financial goals with your financial planner at least once a year to ensure you are on track to meet your goals. Also, check your statement for any errors and notify your financial planner immediately.
c) Time. Your money cannot grow if you take it out too soon. It takes a minimum of 7 years to see a significant return on your investment so leave your money in your account.
d) Diversify. If you have all of your investment in one area, re-allocate your investments to at least 3 areas to minimize losses.
e)DRIPs. To offset any losses you may have experienced you can purchase a Dividend Reinvestment Plan (DRIP) or use it as an easy way to start investing.
f) Buy now. The motto is "buy low, sell high" is very appropriate during a recession. This is a great time to buy stocks or to invest in a mutual fund. When the market bounces back you will have achieved great gains.
Friday, October 22, 2010
Are You Financially Literate
According to the Federal Reserve, 43% of Americans live above their means. Many Americans live paycheck to paycheck and are living in either low-income or middle income households – some just one paycheck away from being homeless. If they lose their jobs, they have no backup plan, no savings and no safety net to help them through a financial crisis. Some school systems do not teach financial literacy because they don't feel it is a priority.
Unfortunately, students who are not financially literate grow up to be adults who are not financially literate. These same adults develop bad spending habits, have bad credit and file for bankruptcy or foreclosure. If financial literacy was taught in all the school systems in the country, many Americans would be in a better financial position because they would be empowered with knowledge to help them make good financial decisions and they would have the tools to recover from a financial crisis.
Here are some questions that will help you determine if you are financially literate. If you answer "no" to 5 or more questions, you may need to gain some knowledge about financial literacy and change your thoughts about money.
1. Do you have a bank account?
2. Do you frequently overdraw your bank account?
3. Do you have an emergency fund? Do you have at least 9-12 months of savings in an emergency fund?
4. Do you cash your checks at a check cashing store or liquor store?
5. Do you pay bills late?
6. Do you have a retirement account or do you invest?
7. Do you know what your current credit score is?
8. Do you write all ATM/debit card transactions in your check book?
9. Do you regularly compare your bank statement with your receipts?
10. Do you have a budget?
11. Do you know how much debt you owe?
12. Do you know your net worth?
13. Do you owe taxes or have you owed taxes in the past?
If you are not financially literate and don't the basic about personal finance I encourage you to read self-help books on personal finance that discuss budgeting, investing, retirement, saving, paying for college and taxes. There are also several websites available such as CNN Money, Yahoo Finance, Bankrate.com, MSN Money and morningstar.com. The more you know the more you grow. Money can generate wealth or generate debt, you make the choice.
Unfortunately, students who are not financially literate grow up to be adults who are not financially literate. These same adults develop bad spending habits, have bad credit and file for bankruptcy or foreclosure. If financial literacy was taught in all the school systems in the country, many Americans would be in a better financial position because they would be empowered with knowledge to help them make good financial decisions and they would have the tools to recover from a financial crisis.
Here are some questions that will help you determine if you are financially literate. If you answer "no" to 5 or more questions, you may need to gain some knowledge about financial literacy and change your thoughts about money.
1. Do you have a bank account?
2. Do you frequently overdraw your bank account?
3. Do you have an emergency fund? Do you have at least 9-12 months of savings in an emergency fund?
4. Do you cash your checks at a check cashing store or liquor store?
5. Do you pay bills late?
6. Do you have a retirement account or do you invest?
7. Do you know what your current credit score is?
8. Do you write all ATM/debit card transactions in your check book?
9. Do you regularly compare your bank statement with your receipts?
10. Do you have a budget?
11. Do you know how much debt you owe?
12. Do you know your net worth?
13. Do you owe taxes or have you owed taxes in the past?
If you are not financially literate and don't the basic about personal finance I encourage you to read self-help books on personal finance that discuss budgeting, investing, retirement, saving, paying for college and taxes. There are also several websites available such as CNN Money, Yahoo Finance, Bankrate.com, MSN Money and morningstar.com. The more you know the more you grow. Money can generate wealth or generate debt, you make the choice.
Wednesday, October 20, 2010
Financial Survivor or Victim
Many Americans have experienced financial, family or physical tragedies over the past few years. Their financial outlook has gotten worse because of the recession. This has caused many Americans to give up, lose hope, lose faith and become confused, lost, afraid, stressed, anxious, angry and resentful.
These feelings can cause one to make poor decisions and choices in their lives. The first key to dealing with these emotions is to acknowledge them. Once you acknowledge your feelings don’t allow your feelings to control you. Next, think about what you can do to overcome your current situation and find a solution. You can’t change what happened but you can change how you react to it and how you deal with it. To do this you determine if your behavior is that of a survivor or a victim.
A victim:
1. Makes excuses
2. Looks for handouts
3. Waits for someone to help them
4. Doesn’t take responsibility for their actions
5. Doesn’t seek professional help
6. Refuses to change their current situation
7. Doesn’t accept reality
8. Is unable to implement a solution
9. Stays in a spiraling state of emotion (stress, frustration, anxiety, etc.)
10. Doesn’t have a plan of action
11. Unable to recover from a crisis
A survivor
1. Doesn’t make excuses
2. Develops a plan to solve problems on their own
3. Seeks professional help
4. Lives in reality - accepts the current situation but remains focused on future goals
5. Takes responsibility for their actions
6. Doesn’t wait for someone to help them
7. Uses emotional intelligence to manage feelings (eqi.org/eitoc.htm)
8. Uses resources such as self-help books, educational television shows, law of attraction, etc.
9. Survived previous crises and learned from the experience
Here are 8 steps to overcome a financial crisis.
1. Focus on how to solve the problem rather than focusing on the problem
2. Spend money without feeling guilty – you feel guilty because you are not living below your means
3. Use cash vs. credit to save you money
4. Have faith that your financial situation will improve – law of attraction
5. Pay off credit cards at the end of each month to avoid paying interest and finance charges
6. Have a savings account, checking account and retirement account which helps you plan for the future
7. Have at least 6-12 months worth of savings in an emergency fund to help with unexpected expenses or a financial crisis
To become a survivor of any financial crisis you have to change your mindset. “If you do not attract what you want to be, you will be what you are, forever” by Ankur Sancheti.
These feelings can cause one to make poor decisions and choices in their lives. The first key to dealing with these emotions is to acknowledge them. Once you acknowledge your feelings don’t allow your feelings to control you. Next, think about what you can do to overcome your current situation and find a solution. You can’t change what happened but you can change how you react to it and how you deal with it. To do this you determine if your behavior is that of a survivor or a victim.
A victim:
1. Makes excuses
2. Looks for handouts
3. Waits for someone to help them
4. Doesn’t take responsibility for their actions
5. Doesn’t seek professional help
6. Refuses to change their current situation
7. Doesn’t accept reality
8. Is unable to implement a solution
9. Stays in a spiraling state of emotion (stress, frustration, anxiety, etc.)
10. Doesn’t have a plan of action
11. Unable to recover from a crisis
A survivor
1. Doesn’t make excuses
2. Develops a plan to solve problems on their own
3. Seeks professional help
4. Lives in reality - accepts the current situation but remains focused on future goals
5. Takes responsibility for their actions
6. Doesn’t wait for someone to help them
7. Uses emotional intelligence to manage feelings (eqi.org/eitoc.htm)
8. Uses resources such as self-help books, educational television shows, law of attraction, etc.
9. Survived previous crises and learned from the experience
Here are 8 steps to overcome a financial crisis.
1. Focus on how to solve the problem rather than focusing on the problem
2. Spend money without feeling guilty – you feel guilty because you are not living below your means
3. Use cash vs. credit to save you money
4. Have faith that your financial situation will improve – law of attraction
5. Pay off credit cards at the end of each month to avoid paying interest and finance charges
6. Have a savings account, checking account and retirement account which helps you plan for the future
7. Have at least 6-12 months worth of savings in an emergency fund to help with unexpected expenses or a financial crisis
To become a survivor of any financial crisis you have to change your mindset. “If you do not attract what you want to be, you will be what you are, forever” by Ankur Sancheti.
Saturday, October 16, 2010
Do Your Thoughts Keep You Poor
Today's post is taken from Burt Goldman creator of the Prosperity Paradox. I thought it would provide another perspective to financial success. Enjoy!
The longer you spend doing something, the better you will become at it. That is the Law of Life.
To become an expert at whatever it is you want to do, you know that if you put in the time and dedication, you'll eventually get there. After all, practice makes perfect, right?
This rings true for almost anything in life and most professionals in any field will tell you that following this Law has gotten them to where they are today.
In Sports - During his high school years, Michael Jordan never made the school basketball team but after years and years of dedication and practice, he became the all-star he is today.
In Arts - Heath Ledger took months to study and absorb his character, the Joker, in 'The Dark Knight' and actress Winona Ryder had to dive into the psychology of disturbed women for months before starring in 'Girl Interrupted'.
In Music - The Beatles were no strangers to practice. In the earlier days of their career, they played 8 hour sessions, every night of the week without fail. Well, we all know how successful they became.
There are an endless number of fields where world-class experts will tell you the same thing. Dedication, motivation and hours of practice will make you better at anything you take on. It's common sense, right?
It is the proven formula for most things... but here lies the problem... this does not apply to making money.
The Prosperity Paradox
We spend the majority of our lives trying to make good money. Do the math - say you have already spent 20 years dedicating the majority of your time and effort into making money. At 40 hours a week, that's over 40,000 hours spent making money!
After that much time, you should already be a master at it!
Think about what your golf handicap would be if you spent that amount of time on the driving range! But the truth is, most of you will continue breaking your backs for the rest of your lives and still not get any better at making money. Why?
Money is the only thing you will not get better at with time. This is what I call the Prosperity Paradox and it exists because of the 3 great lies we tell ourselves about money.
The 3 Great Lies
1) Money = Career
Most often we think that our career path will determine how much money we will make. A lawyer, accountant and a clerk will have certain expected pay grades. We believe our chosen career always has a salary cap. But this type of thinking limits our potential to make money. The truth is that you can reach financial success regardless of your monthly paycheck.
2) Money = The Value You Give The World
You make money only by giving value to the world. This is a myth. Think about jobs that benefit no one but themselves. Casino kings, drug lords, people who cheat others of their hard earned money. All these add no value to the world. Yet, these people are living the life honest folks deserve. Then think about those who have given so much value to the world. Teachers, nurses, even garbage collectors are not anywhere close to being millionaires. So how can this statement be true?
3)Money = Hard Work
The advice from our parents "You have to work hard for your money" no longer rings true. Money does not equal hard work. Most people slog all day and night, they take on two or three jobs, eat from their desks, ruin their health, suffer from stress, and yet they are no closer to financial freedom than before.
These 3 lies are created by YOU, by society and by your misconceptions about money. In fact, money doesn't relate to any of these things! The only thing your financial success relates to is your... Prosperity Blueprint.
The Prosperity Blueprint and Your Money Mindset
Or, in other words, your money mindset. Here's a scary fact... Right now, your Prosperity Blueprint has been preconditioned to never help you get any better at making money. But it's NOT your fault! You have been misled along with millions of other hardworking people who will never escape this money making struggle. Let me tell you how it happened.
1)You were never trained on HOW to make money
It is a sad but true fact. You were never trained on how to make money. There are no classes in schools or Universities that tell you what you need to do to become a professional moneymaker. You were simply trained with the skills that would hopefully make you some money one day. You make money as a result of THAT skill.
2) You are BRAINWASHED by society
You were conditioned to have certain limited and stereotypical beliefs about money. Here are a few phrases that I am sure you have heard before whether you believe them or not: "Money is the root of all evil" "It's more enlightened to be poor than rich" "If I get rich, everyone will want something from me"
In fact, even some very famous people have cautioned us against money:
"I do not like money, money is the reason we fight." --Karl Marx
"Love and money should properly have nothing to do with each other." --John Saul, Guardian
"Surely there never was so evil a thing as money, which maketh cities into ruinous heaps, and banisheth men from their houses, and turneth their thoughts from good unto evil." --Sophocles, Antigone
3) You are influenced by BIPOLARITY within society
There are many subsections within the society: The rich and the poor. The educated and the uneducated. The urban and rural. The democrats and the republicans. These splits within our society have fortified the limitations in our self-belief system about making money, "People like us will never be rich." "People like them have it so good." These conditionings have limited your potential to make money. This is a very BIG problem.
But here is good news... Unlike the millions of others who do not know any better, you have read this and are aware of this Prosperity Paradox. And here is more good news. There is a very SIMPLE SOLUTION and that is to... Reset Your Prosperity Blueprint.
Only 5% of people have figured out how to do this and they are enjoying financial success in a way that many can only dream of. And what about the other 95%?
Because of the lies they believe in, they will always be stuck trying to make money. Now that you know the truth, will you be part of the successful minority or the striving majority?
The longer you spend doing something, the better you will become at it. That is the Law of Life.
To become an expert at whatever it is you want to do, you know that if you put in the time and dedication, you'll eventually get there. After all, practice makes perfect, right?
This rings true for almost anything in life and most professionals in any field will tell you that following this Law has gotten them to where they are today.
In Sports - During his high school years, Michael Jordan never made the school basketball team but after years and years of dedication and practice, he became the all-star he is today.
In Arts - Heath Ledger took months to study and absorb his character, the Joker, in 'The Dark Knight' and actress Winona Ryder had to dive into the psychology of disturbed women for months before starring in 'Girl Interrupted'.
In Music - The Beatles were no strangers to practice. In the earlier days of their career, they played 8 hour sessions, every night of the week without fail. Well, we all know how successful they became.
There are an endless number of fields where world-class experts will tell you the same thing. Dedication, motivation and hours of practice will make you better at anything you take on. It's common sense, right?
It is the proven formula for most things... but here lies the problem... this does not apply to making money.
The Prosperity Paradox
We spend the majority of our lives trying to make good money. Do the math - say you have already spent 20 years dedicating the majority of your time and effort into making money. At 40 hours a week, that's over 40,000 hours spent making money!
After that much time, you should already be a master at it!
Think about what your golf handicap would be if you spent that amount of time on the driving range! But the truth is, most of you will continue breaking your backs for the rest of your lives and still not get any better at making money. Why?
Money is the only thing you will not get better at with time. This is what I call the Prosperity Paradox and it exists because of the 3 great lies we tell ourselves about money.
The 3 Great Lies
1) Money = Career
Most often we think that our career path will determine how much money we will make. A lawyer, accountant and a clerk will have certain expected pay grades. We believe our chosen career always has a salary cap. But this type of thinking limits our potential to make money. The truth is that you can reach financial success regardless of your monthly paycheck.
2) Money = The Value You Give The World
You make money only by giving value to the world. This is a myth. Think about jobs that benefit no one but themselves. Casino kings, drug lords, people who cheat others of their hard earned money. All these add no value to the world. Yet, these people are living the life honest folks deserve. Then think about those who have given so much value to the world. Teachers, nurses, even garbage collectors are not anywhere close to being millionaires. So how can this statement be true?
3)Money = Hard Work
The advice from our parents "You have to work hard for your money" no longer rings true. Money does not equal hard work. Most people slog all day and night, they take on two or three jobs, eat from their desks, ruin their health, suffer from stress, and yet they are no closer to financial freedom than before.
These 3 lies are created by YOU, by society and by your misconceptions about money. In fact, money doesn't relate to any of these things! The only thing your financial success relates to is your... Prosperity Blueprint.
The Prosperity Blueprint and Your Money Mindset
Or, in other words, your money mindset. Here's a scary fact... Right now, your Prosperity Blueprint has been preconditioned to never help you get any better at making money. But it's NOT your fault! You have been misled along with millions of other hardworking people who will never escape this money making struggle. Let me tell you how it happened.
1)You were never trained on HOW to make money
It is a sad but true fact. You were never trained on how to make money. There are no classes in schools or Universities that tell you what you need to do to become a professional moneymaker. You were simply trained with the skills that would hopefully make you some money one day. You make money as a result of THAT skill.
2) You are BRAINWASHED by society
You were conditioned to have certain limited and stereotypical beliefs about money. Here are a few phrases that I am sure you have heard before whether you believe them or not: "Money is the root of all evil" "It's more enlightened to be poor than rich" "If I get rich, everyone will want something from me"
In fact, even some very famous people have cautioned us against money:
"I do not like money, money is the reason we fight." --Karl Marx
"Love and money should properly have nothing to do with each other." --John Saul, Guardian
"Surely there never was so evil a thing as money, which maketh cities into ruinous heaps, and banisheth men from their houses, and turneth their thoughts from good unto evil." --Sophocles, Antigone
3) You are influenced by BIPOLARITY within society
There are many subsections within the society: The rich and the poor. The educated and the uneducated. The urban and rural. The democrats and the republicans. These splits within our society have fortified the limitations in our self-belief system about making money, "People like us will never be rich." "People like them have it so good." These conditionings have limited your potential to make money. This is a very BIG problem.
But here is good news... Unlike the millions of others who do not know any better, you have read this and are aware of this Prosperity Paradox. And here is more good news. There is a very SIMPLE SOLUTION and that is to... Reset Your Prosperity Blueprint.
Only 5% of people have figured out how to do this and they are enjoying financial success in a way that many can only dream of. And what about the other 95%?
Because of the lies they believe in, they will always be stuck trying to make money. Now that you know the truth, will you be part of the successful minority or the striving majority?
Wednesday, October 13, 2010
Open Enrollment Tips
The health care reform will affect health benefits for most Americans. Most of the changes will occur in 2011. For those currently employed, you can make changes now during your employers Open Enrollment.
Verify all of your health information is accurate. If you have benefits that will no longer be paid in 2011, ask your health plan provider if you can pay for the services using a Flexible Spending Account. Some highlights of the health care changes are:
1. Children up to age 26 can be added to their parent's health insurance plans and be considered qualified dependents for a Flexible Spending Account or Health Savings Account.
2. Starting in September 2010, some preventative services willl be available to health insurance customers at no additional cost.
3. Starting on January 1, 2011, a doctor's prescription is required to receive reimbursement from a Flexible Spending Account or Health Savings Account for over-the-counter medications and drug purchases. You will also be charged a penalty up to 20% of the total withdrawal if you withdraw from your Health Savings Account for non-medical expenses.
4. During Open Enrollment you should also sign up for vision, dental and life insurance benefits. Know th difference between Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPO), and Point-of-Service (POS) plans.
5. Comparison shop during Open Enrollment season and consider the cost of the plan including but not limited to: the monthly cost of each plan, deductibles, services provided and prescriptions costs. Coverage is also based on what you can afford and what is best for your family.
Employees and health insurnce providers must communicate about the different options that are available to an employee.
Verify all of your health information is accurate. If you have benefits that will no longer be paid in 2011, ask your health plan provider if you can pay for the services using a Flexible Spending Account. Some highlights of the health care changes are:
1. Children up to age 26 can be added to their parent's health insurance plans and be considered qualified dependents for a Flexible Spending Account or Health Savings Account.
2. Starting in September 2010, some preventative services willl be available to health insurance customers at no additional cost.
3. Starting on January 1, 2011, a doctor's prescription is required to receive reimbursement from a Flexible Spending Account or Health Savings Account for over-the-counter medications and drug purchases. You will also be charged a penalty up to 20% of the total withdrawal if you withdraw from your Health Savings Account for non-medical expenses.
4. During Open Enrollment you should also sign up for vision, dental and life insurance benefits. Know th difference between Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPO), and Point-of-Service (POS) plans.
5. Comparison shop during Open Enrollment season and consider the cost of the plan including but not limited to: the monthly cost of each plan, deductibles, services provided and prescriptions costs. Coverage is also based on what you can afford and what is best for your family.
Employees and health insurnce providers must communicate about the different options that are available to an employee.
Sunday, October 10, 2010
Medical Bankruptcy
The Medical Bankruptcy Fairness Act of 2009 is a bill that would amend title 11 of the United States Bankruptcy Code (Bankruptcy Abuse Prevention and Consumer Protection Act of 2005) would: 1) provide protection for homeowners with medical debt, 2) restore bankruptcy protection for individuals experiencing financial distress who serve as caregivers to injured, ill, or disabled family members, 3) and to become exempt from taking the bankruptcy means test for those whose financial problems were caused by serious medical issues.
If the bill is passed it would waive the “means test” and credit counseling requirements for those who to wish file bankruptcy.
A recent study shows that based on the effects of the recession approximately seven million Americans will lose their health insurance coverage. Employee spending on health insurance coverage has increased 128% between 1999 and 2008.
Economists have found that increasing health care costs show a connection with decreases in health insurance coverage. National studies show that the main reason many people are uninsured is due to the high costs of health insurance.
The United States is the only developed country that provides health insurance but has the largest number of deaths due to lack of medical insurance or lack of appropriate medical care.
Contact your loss congressman to have the bill passed to provide additional protection for Americans and their medical costs.
If the bill is passed it would waive the “means test” and credit counseling requirements for those who to wish file bankruptcy.
A recent study shows that based on the effects of the recession approximately seven million Americans will lose their health insurance coverage. Employee spending on health insurance coverage has increased 128% between 1999 and 2008.
Economists have found that increasing health care costs show a connection with decreases in health insurance coverage. National studies show that the main reason many people are uninsured is due to the high costs of health insurance.
The United States is the only developed country that provides health insurance but has the largest number of deaths due to lack of medical insurance or lack of appropriate medical care.
Contact your loss congressman to have the bill passed to provide additional protection for Americans and their medical costs.
Thursday, October 07, 2010
Extra Money for Verizon Wireless Customers
If you are a Verizon Wireless customer you may be getting a refund. Verizon Wireless has been ordered by the Federal Communications Commission (FCC) to pay up to $90 million in refunds to cell phone customers who were changed for internet access or data usage over the past few years.
Last year the FCC asked Verizon Wireless about the $1.99 a megabyte access fee that appeared on bills of cell phone customers who didn't have a data plan but accidentally initiated data or internet access by pressing a button on their cell phones.
The issue affects approximately 15 million customers who will receive credits between $2 - $6 on their October or November cell phone bills. Customers who are no longer Verizon Wireless customers will receive refund checks.
Verizon stated that it no longer charges fees when a customer accesses data services but shuts it off quickly.
If you were affected by this, check your statement. If you have not received a credit on your October or November bill, contact Verizon Wireless to find out the reason.
Last year the FCC asked Verizon Wireless about the $1.99 a megabyte access fee that appeared on bills of cell phone customers who didn't have a data plan but accidentally initiated data or internet access by pressing a button on their cell phones.
The issue affects approximately 15 million customers who will receive credits between $2 - $6 on their October or November cell phone bills. Customers who are no longer Verizon Wireless customers will receive refund checks.
Verizon stated that it no longer charges fees when a customer accesses data services but shuts it off quickly.
If you were affected by this, check your statement. If you have not received a credit on your October or November bill, contact Verizon Wireless to find out the reason.
Monday, October 04, 2010
Help for Bank of America Customers
As of August 2010 over 2 million homes are listed as foreclosed which shows there is still a great need for mortgage companies to work with homeowners to help them stay in their homes. Bank of America has decided to delay foreclosing on homes in 23 states while the company determines if they rushed too soon to foreclosure on some homes.
The states affected are: Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont and Wisconsin.
In some cases employees signed foreclosure documents without verifying the information. GMAC and JPMorgan Chase have also made the same mistake. This issue may lead to lawsuits due to homeowners contesting foreclosures that may not be valid. Pressure is being added to mortgage industry professionals by state attorney generals who are working hard to enforce foreclosure laws.
In some states, mortgage lenders can foreclose quickly on delinquent homeowners. Freddie Mac and Fannie Mae and Freddie Mac stated that they are informing mortgage companies to follow proper procedures.
It is uncertain how this decision will affect homeowners. If you are a Bank of America mortgage customer call the company at the 800 number provided on your mortgage statement to get information about your foreclosure or pending foreclosure.
In the future, go with your gut if you feel you have not been treated fairly by your mortgage company or you feel that proper procedures have not been followed. You can also contact HUD or a certified housing counselor to get a second opinion on any housing paperwork or issues that you are concerned about or have questions about. You can also file a complaint against your mortgage company with the Federal Trade Commission, Better Business Bureau or your state attorney general's office. If you have a FHA mortgage loan you can file a complaint with HUD.
The states affected are: Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont and Wisconsin.
In some cases employees signed foreclosure documents without verifying the information. GMAC and JPMorgan Chase have also made the same mistake. This issue may lead to lawsuits due to homeowners contesting foreclosures that may not be valid. Pressure is being added to mortgage industry professionals by state attorney generals who are working hard to enforce foreclosure laws.
In some states, mortgage lenders can foreclose quickly on delinquent homeowners. Freddie Mac and Fannie Mae and Freddie Mac stated that they are informing mortgage companies to follow proper procedures.
It is uncertain how this decision will affect homeowners. If you are a Bank of America mortgage customer call the company at the 800 number provided on your mortgage statement to get information about your foreclosure or pending foreclosure.
In the future, go with your gut if you feel you have not been treated fairly by your mortgage company or you feel that proper procedures have not been followed. You can also contact HUD or a certified housing counselor to get a second opinion on any housing paperwork or issues that you are concerned about or have questions about. You can also file a complaint against your mortgage company with the Federal Trade Commission, Better Business Bureau or your state attorney general's office. If you have a FHA mortgage loan you can file a complaint with HUD.
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