Homebuilders stocks have gone up again and the SPDR S&P Homebuilders ETF now stands at a year-on-year increase of 30%. The rise came on news that the housing market is stabilizing and sales and prices of new homes are improving. [Read more…]
How to Plan an Affordable Family Vacation
Summer is the ideal time for a family vacation, and now that the season is here, we are all thinking where to go and what to do this time. But many of us are still reeling from the effects of the recent financial meltdown and may not have a big budget for a family trip. So is canceling the annual family vacation our only option? Not really – if you plan your vacation wisely and carefully, you can have a fun filled excursion with your family without having to break the bank. [Read more…]
Start Cutting Costs Now So You Can Live Comfortably In Retirement
The recent recession has made a huge dent in the savings of most Americans, leaving many people near retirement in a state of panic. Any upheaval in the economy can cause the best laid investment plans to take a nose dive, but it is the retirees and the people who have a few years left to retire who are the most affected. [Read more…]
Be Proactive in Managing Your 401(k) Investments
401(k) is a retirement plan that can receive contributions from both the employer and the employee. Your contribution is taken from the salary before calculating your taxable income, which is one of the most significant benefits of the plan. Usually, companies match the contribution made by the employee. This is one of the major differences between IRA and 401(k) plans since IRA plans do not usually get employer contributions. [Read more…]
Economy Grows by 3.2% and on the way to Slow and Steady Recovery
The US GDP has posted a 3.2% growth in the first quarter of the year, fuelled by increased consumer spending and business investments. Statistics also show that home purchases went up by 3.6% in the first three months of 2010. [Read more…]
Republicans are Starting to Give Up Ground on the New Finance Reform Bill
The Republicans seem to have given up their objection that the financial reform bill will institutionalize bailouts of banks that are too big to fail. Instead, they have now shifted their focus to the consumer protection provision of the bill, which they claim is over-reaching. They are demanding modifications to the bill and want Senator Christopher Dodd, chairman of the Senate Banking Committee, to incorporate their suggestions. [Read more…]
Set a Realistic Budget When Shopping for a New House
If you are planning to buy a house, then it is very important to have a realistic budget in mind to avoid defaulting on your mortgage loan. You should carefully evaluate how much you can afford to put down and how much loan you need to apply for. There are many principles that you can follow for assessing how much you can afford to spend on your house. [Read more…]
Learn What Profile of People are Likely to Face IRS Tax Audits
No one wants to face the tension of the vigorous tax audits conducted by the IRS every financial year. The chances of getting audited by the IRS depend on various factors. Let’s see some factors that can increase these chances, even though it is not possible to tell with full certainty who will face a tax audit and who will not. [Read more…]
Know the Difference Between Needs and Wants to Meet Your Budget Goals
Anyone who wants to follow a budget should learn to give higher priority to his or her ‘needs’ over ‘wants’. The principle is simple to understand but difficult to implement. The main difficulty is in deciding whether something should be categorized as a need or a want. This is because there is no fixed formula for making the decision and it all depends on your lifestyle and personal preferences. [Read more…]
How to Reduce Loan Repayment Penalties
With interest rates at record lows, you may be in the process of refinancing your existing mortgage. However, you could encounter a serious problem when you try to settle on the existing obligation. Almost all lenders charge prepayment penalty, a fee that they should have disclosed at the time you applied for the loan. Before you go ahead with the deal, you have to take this fee into account so that you fully understand the costs of refinancing your mortgage. [Read more…]
How to Spend Your Tax Return and Boost Your Savings
About 75% of American taxpayers are due to receive a refund this year. If you are one of them, then you must be thinking of ways to spend it. But don’t blow it all on a shopping spree, set aside some of it to tackle more urgent and important financial issues that you are currently facing. After you have dealt with these issues, you can have fun with the money left over. This article will give you some ideas about how to spend your tax refund in the best possible ways. [Read more…]
What You Should Know Before You Purchase a Life Insurance Policy
Life insurance policies can be classified into two categories – protection and investment. There are several sub categories as well, and you should consider your age, life expectancy, health, lifestyle, and financial situation while deciding which kind of life insurance you need. [Read more…]
How Your Mortgage Balance Effects the Value of Your Home
The value of a home is dependent on a number of factors. Homes in a good neighborhood or those with attractive landscaping or a well maintained backyard and pool, typically sell for good prices even if the housing market is subdued. There is another factor which indirectly influences the value of your home adversely – the state of mortgage balances of homes in your neighborhood. This factor, which is often ignored, can push down home values significantly. [Read more…]
Senate Begins Debate on Finance Bill About Wall Street Overhaul
The much-awaited debate on the finance bill, which proposes a sweeping regulatory overhaul of Wall Street, has begun after being voted down by the Republican Party, which strongly opposed certain provisions of the bill.
The two parties reached a compromise after Republican leader in the Senate, Mitch McConnell, agreed to begin the debate. Republicans will, however, continue to ratchet up pressure on Democrats and try their best to incorporate as many GOP amendments in the bill as they can. The Democrats have agreed to rewrite certain parts of the bill but they will proceed cautiously as Republicans have the power to filibuster amendments as well as the final vote on the bill. [Read more…]
How to Reduce Your Utility Bills Without Compromising Your Comfort Level
If you sit down and analyze your expenditure, you will realize that you spend a large chunk of your income on various utility bills such as electricity, water, and internet. There are some techniques by which you can minimize these expenses. Here are some personally tried and tested methods that will reduce your utility bills significantly. [Read more…]
Practice Financial Discipline to Avoid Falling Into Credit Card Debt
A huge credit card debt can ruin your finances. If you are not careful and deal with it quickly, your debt will keep building up, which also means that you will end up with serious credit score issues, putting your financial stability in jeopardy. Be disciplined and take steps in the right direction to avoid /credit card debt.
Increase your credit card payments
Prepare a budget for your monthly income and expenses to find out what is the maximum payment you can make on your credit card, and use your card accordingly. Cut down on unnecessary expenditure and try to increase your credit card payments. [Read more…]
Advantages and Disadvantages of Using Prepaid Credit Cards
Prepaid cards are a great alternative to make cash purchases easier to manage and track. These cards have become very popular, as people prefer to carry a compact piece of plastic instead of lots of cash, especially while traveling. But unlike credit cards, with a prepaid card you get the advantage of ensuring your expenditure stays within your budget. [Read more…]
Why ETFs are Better Investments Over Mutual Funds for the Novice Investor
ETFs are a good option for investors who want to diversify their portfolio but don’t really know how and what to invest in. Although mutual funds are a good diversification choice, ETFs bring some unique advantages to the table, which make them doubly attractive. [Read more…]
Educating Your Kids About the Basics of Money Management
Money management is not just for adults – kids who are taught the value of dollars early on grow up to become good money managers and usually don’t have debt issues.
As a responsible adult, you must sit with your kids and teach them the rights and wrongs as far as money is concerned. For this, you have to be a financially responsible adult yourself and try to set an example for your kids. Children are highly impressionable and you should use the opportunity to introduce the concept of cash generation and spending so that they go on to make good financial decisions when they become adults. [Read more…]
Average American Credit Card Debt Is it Really that Bad?
The recent economic crisis has hit the country hard. People have lost their jobs and homes, stocks and real estate values have fallen. Reports also suggest that credit card debts are sky high, with the average American owing about $9,000 on his/her credit card, which is a really scary number. Are Americans really that neck-deep in credit card debt? Or is the situation being blown way out of proportion? [Read more…]
How to Manage Inheritance Money Effectively for Longevity
It is estimated that the baby boomers will be inheriting over $10 trillion in the coming years. If you are one of the fortunate ones and have received a substantial inheritance, then you should not spend it all at once, but use it smartly depending on your current financial position so that you get long-term financial benefits.
Three important strategies should be used when using your inheritance money – setting up an emergency fund, paying off debts and making profitable investments.
Setting up an emergency fund
Set aside a portion of your inheritance funds towards an emergency fund which covers at least 6 months of your living expenditure. This fund would not only help you in case the economy goes through a bad phase again and you lose your job, it will also be useful for urgent medical expenses. You can also direct some of the inheritance money towards your retirement fund.
Pay off your debts
After the emergency fund is in place, utilize a portion of the fund to pay off your high interest debts, like credit card debts or personal loans. After that, if you are still left with money, try to clear as much of your mortgage as possible. Paying off some part of your mortgage will lower your monthly payments, and you’ll get much more freedom in choosing how to use your income. Another important benefit of paying off the mortgage is that it gives you greater equity in your house, which you can convert to cash anytime the need arises.
Make profitable investments
Direct the rest of the money towards high return yielding investments. If you want to invest in stocks, make sure you diversify your portfolio and hire a broker with a good track record. You can also hire a financial expert who will help you manage your investments and take care of any tax issues related to the inheritance.
The process of dealing with the estates that you got as part of the inheritance could be lengthy and complicated, so you should always seek professional help from an attorney who can take care of the legal aspects. It may take a couple of weeks to even years before the transfer of assets is completed, depending on the complexity of the case.
An inheritance has an emotional value attached to it, and it is your responsibility to make judicious use of the money and not take any hasty decisions.
How Much Money to Keep Aside from Your Monthly Income for Future Planning
It is imperative to plan for emergencies, little luxuries here and there, and irregular expense such as vacations, holidays, buying a car, renovating your home etc. Planned and regular savings will help you lead a more financially secure life. [Read more…]
How to Save Money and Make Money with Credit Cards
Credit cards are usually seen in a negative light as people often end up acquiring a huge debt through them. But if you fully understand how credit card companies work and use a little ingenuity, you can actually earn money using your card. [Read more…]
New Trend With Retirement Plans for 65 and Over
Changing attitudes towards retirement, with senior citizens working even beyond sixty five with as much enthusiasm and energy as they had in their thirties, is an emerging trend across the country.
The arguments for working in full-time or part-time capacity include greater appreciation of disposable income, shielding yourself and your family from risks in an unpredictable economy, or quite simple keeping yourself mentally and physically active. [Read more…]
Discuss Your Debt Situation with Your Partner to Avoid Marital Disaster
The basis of any marriage is the trust that both partners place in each other. A breach of this trust, when one partner has failed to disclose his or her debts, will at best cause marital discord and at worst end in an ugly divorce. To ensure that your poor financial management skills or faulty judgment do not cost you your marriage, complete honesty with your spouse is critical. [Read more…]
Federal Reserve Expected to Keep Interest Rates Low Despite Signs of Recovery
The economy may be taking baby steps towards recovery, but it looks like the Federal Reserve will most likely keep interest rates at their existing low levels. The committee concluded this in a meeting, and is expected to make an announcement sometime soon. Analysts say that the Federal Reserve is proceeding cautiously and do not want to increase the rates in the short term. [Read more…]
Time Tested Risk Management with Diversification
Diversification is a time-tested strategy to spread your risk and optimize your returns. It is a sound principle to follow whether you are investing for your retirement, your children’s education, or are just seeking some quick short-term gains. [Read more…]
Why You Need Travel Insurance
The ash cloud spreading across European skies after the eruption of Icelandic volcano Eyjafjallajokull left the aviation industry in agony and thousands of travelers stranded at airports, with no clue about when they will reach their destinations.
If you had planned a trip to Europe and had to cancel it, you probably lost a lot of money unless you had bought travel insurance. If you bought it before April 13th, then any non-refundable costs for a period of 5 days would have been reimbursed to you by the insurer. [Read more…]
Unemployment Benefits Extend Beyond 99 Weeks
Congress has passed a legislation that extends unemployment benefits by 99 weeks to give unemployed people some respite from stagnant hiring in most industries. However, some advocacy groups claim that even such a long period of extended benefits may not be enough time for half the number of unemployed to get jobs. They are pushing policy makers for an extension of unemployment benefits by several more months. [Read more…]
How to Lower Your Dental Bills, Save Money & Still Have White Teeth
Scary instruments are not the only reason of avoiding dentist visits. The huge dental bills are another reason why people want to stay away from a dentist. Here is some advice on reducing your dentist bills so that you can get your dental treatment or check-up done without seriously hurting your budget. [Read more…]
Goldman Sachs Defiant Despite History of Serious Allegations
The SEC lawsuit against Goldman Sachs alleging that it designed a financial product rigged to fail is one among the many that the company has had to face of late.
Back in 2008, Goldman Sachs paid up $60 million to terminate an investigation by the Massachusetts attorney general’s office amidst allegations of irresponsible behavior by co-operating with blacklisted subprime lenders Fremont and New Century. The company claimed that it had done nothing wrong and maintained its innocence. [Read more…]
Economy Looking Up Employment Scenario to Improve & Inflation to Fall
There is reason to cheer -reports indicate that many large companies are planning to hire, an indicator that recession is firmly behind us and the economy continues to move in a positive direction. [Read more…]
Debate on Financial Reform Blocked by Senate Republicans
After the financial meltdown was blamed for a major part on unregulated derivatives and credit default swaps (CDS), the Democrats are pushing to pass the financial reform bill that will bring in more regulation of the financial industry. But this has become a case of easier said than done as the Republicans are firmly opposed to the bill and have blocked it from being brought on the Senate floor for debate. Senate Republicans want to add significant changes to the bill and question Democrats’ tough regulations for financial institutions. [Read more…]
Do Not Forget to Include Medical Costs in Your Financial Planning
Most of us conveniently ignore to include the health insurance cost in our financial plans for future. Though you may be hale and hearty now or your company may be taking care of your health insurance, it is for a fact that you will need more and more medical assistance as you grow in age. It’s best to plan for these costs when you are no longer going to be covered by your company. [Read more…]
