Finance Corner

 So you need some money for unexpected expenses. The roof took on a leak, the deck rotted through and a new family addition tightened living space. You bought too much Christmas on credit now the bills are overwhelming. Junior got accepted to that Ivy League school. Tapping into your home equity can help ease your financial burden. Before deciding on borrowing ask yourself a few questions first. 1. Do I need a home equity loan or a home equity line of credit? If interest rates are low, a loan is a smarter choice. You can borrow the full amount at once ant get a fixed rate on the entire amount.  The advantage allows you to know how much to budget for monthly payments. On the other hand, a line of credit will let you borrow from a revolving line of credit with variable interest rates. You access the money just like a checking account by writing a check for the purchase. Then the amount used is paid back. If the rates fluctuate, your payments will also. 2. Are there restrictions ...

1. Interest Backdating Most card issuers charge interest from the day a charge is posted to your account if you donπt pay in full monthly. But, some charge interest from the date of purchase, days before they have even paid the store on your behalf! REMEDY: Find another card issuer, or always pay your bill in full by the due date. 2. Two-Cycle Billing Issuers which use this method of calculating interest, charge two months worth of interest for the first month you failed to pay off your total balance in full. This issue arises only when you switch from paying in full to carrying a balance from month to month. REMEDY : Switch issuers or always pay your balance in full. 3. The Right To Setoff If you have money on deposit at a bank, and also have your credit card there, you may have signed an agreement when you opened the deposit account which permits the bank to take those funds if you become delinquent on your credit card. REMEDY : Bank at separate institutions, or ...

 With gasoline prices steadily on the rise, many commuters are finding it more and more difficult to justify spending their hard earned money on the high cost of fuel rather than other necessities, including food and electricity.  With that in mind, there are five simple steps that you can take to help stretch your dollar a little bit farther when it comes to your car’s fuel consumption. Carpool.  If you have children who are in school, consider sharing the driving responsibility with other mothers that live nearby.  This is especially helpful if you can alternate days.  Perhaps you would drive the children on Monday and Wednesday, while the other women fill in on the rest of the weekdays.  This will save you money on gasoline and will also make the children’s ride to school a lot of fun because they will be riding with friends.  The same is true of commuters on their way to work, who can share in the responsibility and costs of driving amongst one ano...

 There are many great reasons to refinance. With lower cost, adjustable rate, and 0-down options, traditional loan programs like 30-year or 15-year fixed rate mortgages don't always allow us to meet our financial goals. Today, even reducing your mortgage interest rate a little can save you big over the life of your home loan. Take a look below at 5 great reasons to refinance. 1. Lower Your Monthly Payment If you plan to live in your home for a few years, it may make sense to pay a point or two to decrease your interest rate and overall payment. Over the long run, you will have paid for the cost of the mortgage refinance with the monthly savings. On the other hand, if you plan on moving in the near future, you may not be in your home long enough to recover the refinancing costs. Calculating the break-even point before you decide to refinance can help determine whether it makes sense. 2. Switch From an Adjustable Rate to a Fixed Rate Mortgage Adjustable rate mortgages (ARMs) can prov...

 Bankruptcy often is the last ultimate solution for many debtors who have unbearable debts. With filing a bankruptcy, you will get rid of your debts instantly and relief you from the harassing call of your creditors.  Although bankruptcy has many undesirable consequences such as your bad credit record will remain on your credit report for 7-10 years, but with a little work, you can improve your credit even before these negative records expire. Here are five easy steps you can take to rebuild your credit.  Step 1: Get to know your current credit status The first step to rebuilding your credit is to look at exactly where you stand. Order all your three credit reports from those three national credit bureaus: TransUnion, Equifax, and Experian. You can order these reports online, it easy and secure.  Print each report and review it closely. Try to understand the information listed in your credit reports and highlight any negative records or inaccuracies that are damaging...

 Both short term and long term trading can be effective trading strategies, however, long term trading has several significant advantages. These include the effect of compounding, the opportunity to earn from dividends, reduction of the impact of price fluctuations, the ability to make corrections in a more timely manner, less time spent monitoring stocks. 1. Compounding Time can be investor’s best friend because it gives compounding time to work its magic. Compounding is the mathematical process where interest on your money in turn earns interest and is added to your principal. 2. Dividends Holding a stock to take advantage of payouts from dividends is another way to increase the value of an investment. Some companies offer the ability to reinvest dividends with additional share purchases thereby increasing the overall value of your investment. Additionally, dividends are more a reflection of a company’s overall business strategy and success than volatile price fluctuations based ...

 Each year when our renewal notices come through the post for our home contents insurance and/or home buildings insurance, most of us automatically sign the form and send it back to the insurance company – after all, we already know how much the premiums are going to be.  Big financial mistake, and here are 4 reasons why: Did You Buy Anything New In The Last Year? If you bought anything new in the last year, say a new television or video recorder, then the value of this new purchase will not be included in the renewal notice you just sent off to the insurance company.  Likewise, if you sold anything of value over the last year, and have not informed the insurance company, then you are paying home contents insurance for something you no longer own.  Either way, your not paying the right amount of insurance premiums. Did The Costs Stay Static? If you have home contents insurance then you are insuring your personal property for the replacement cost of buying the same th...

 Both short term trading and long term trading can be effective trading strategies, however, long term trading has several significant advantages. These include the effect of compounding, the opportunity to earn from dividends, reduction of the impact of price fluctuations, the ability to make corrections in a more timely manner, less time spent monitoring stocks. 1. Compounding Time can be investor’s best friend because it gives compounding time to work its magic. Compounding is the mathematical process where interest on your money in turn earns interest and is added to your principal.  2. Dividends Holding a stock to take advantage of payouts from dividends is another way to increase the value of an investment. Some companies offer the ability to reinvest dividends with additional share purchases thereby increasing the overall value of your investment. Additionally, dividends are more a reflection of a company's overall business strategy and success than volatile price fluct...

 401k retirement plans are special types of accounts, financed through pre-tax payroll deductions. The funds in your account are invested in various ways. Your funds can be invested through any number of stocks, mutual funds, and other ways, and it is not taxed on any capital gains or interest until the money is pulled out or withdrawn. Congress approved this retirement savings plan in 1981, and its name was rooted from the section of the Internal Revenue Code that contains it, which is obviously, section 401k. One great advantage of this retirement plan is that the tax treatment is complimentary. Moreover, capital gains, interest and dividends are not levied until they are pulled out or withdrawn.  In terms of its investment customization and flexibility, 401k retirement plans offer employees and workers an extensive array of options and preferences as to how their property and assets are invested through time. Moreover, many businesses and companies permit employees to obtai...

A 401(k) plan is an employer sponsored plan. The employer makes direct contributions to the account that are deducted from the employee's paycheck. Most companies will match the paycheck contribution up to a certain percentage. In general, the contributions are before tax dollars and grow tax deferred until they are withdrawn. After-tax contributions are also allowed. You should contribute as much as you can to your 401(k). Don't overextend yourself, but you don't want to waste the opportunity to deposit tax free, tax deferred money and have it matched. The amount the company matches you for is free money. Don't let it go. In 2005, the maximum before tax annual contribution that an employee can make is $14,000. If the employee is over 50 years of age, he or she can contribute $16,000. The limit is set to increase by $1,000 in 2006. Your 401(k) is simply an account; you chose the investments within the account. There is usually an array of mutual funds presented to you, ...

The most important part of how to make money using the no stop, hedged, Forex trading strategy will now be covered. In the preceding articles in this series we reviewed trading without stops, not being concerned about which way the price moves and places to cash in on profitable transactions. We are now going to show how you would make money buying and selling simultaneously using the grid strategy. The no stop, hedged currency trading grid system uses the rule that one should be able to close a transaction at a gain no matter which way the market moves. The only way this is logically possible is that one would have a buy and a sell transaction active simultaneously. Most traders will say that doing this is not recommended but let’s look at this in more detail.  Assuming a grid with grid gaps of 100 pips. We are going to use the simplest formation to show the principles involved. This formation is the 100% retractment formation where the price goes up to a grid level and then retur...

  Yes, you can now get your credit report without paying a dime. And unlike before, now it is truly free. No longer do you have to sign up for a "free" credit report by signing up for "credit monitoring protection service" for a low annual fee of $79 a year! The days of dodging the annoying charges and service fees for a free credit report are over. Under the 2003 Fair and Accurate Credit Transactions Act, you have the right to a free copy of your credit report within a 12 month period from the big three credit report bureaus (Experian, Equifax and TransUnion). The goal of this new government act is to ensure that Americans have the right to stay informed about what these three credit reporting bureaus say about you without having to pay for it. Since identity theft, fraud and errors are quite common today, why should you have to pay for a copy of a report to fight back against these problems? Here are the 3 ways to get your free annual credit report: The three c...

  When it comes to consolidating debt, the internet offers three very good options. When you want to choose between a consolidation loan, debt management, or debt settlement, it is important to have an understanding of each one so you can choose the option that is best for your needs. Many people confuse these three services, but each one brings unique aspects to the job of helping consumers pay off their debts. Debt Consolidation Loan A consolidation loan takes all of your high interest credit card debts and turns them into one low interest loan. Often you have to be a home owner to qualify for this type of loan. The idea behind a consolidation loan is that with a lower interest rate, you will actually be able to afford to pay on the principle and that will help you to eventually get yourself out of debt. Debt Management Debt management companies work with consumers to help them learn to get control of their finances. The companies teach individuals how to make a budget and sti...

  If you're ready to buy a new house, you're going to need a Home Purchase lender. And finding one online is convenient and simple! However, there are a few things you should look out for to ensure that your lender has your interests--and not his--as his top priority. Make sure your lender offers options There are a lot of options other than the traditional 30-year fixed rate mortgage. Depending on your needs and personal situation, an Adjustable Rate Mortgage (ARM) or Interest-Only mortgage might be a better fit for you. Or, possibly, you may prefer a loan with a longer or shorter term. A good lender should be able to offer you a variety of options so you can find the one that best suits your needs. Be wary of any lender that tries to push one particular type of loan. Get your "pre-approval" in writing Some Home Purchase lenders will "pre-qualify" you--but that doesn't mean you're guaranteed to get the loan! In fact, in most cases, "pre-qual...

  Did you know that within the United States alone, there are 10,000,000 victims of identity theft every year. That is a stunning 27,400 cases every day or 1,140 victims every hour. What is even more disturbing is that by all indications, this problem will get worse before it starts to get better. Identity theft happens when your personal information is stolen and used to commit fraud. This is a very serious offence that can ruin your good name and credit, and cost you lots of time and money. Have you put anything in place to protect yourself from this problem? Identity thieves can only take advantage of you if they get valuable information from you such as your social security number. Here are some pointers on how to protect yourself from this crime, detect it, and report it. One of the first things you can do to protect yourself from this menace is not to keep your social security card or any form of identification that has your SSN on it, on your person. Memorize your SSN an...

Financial institutions have a distinct genius for marketing. They are able to get millions of Americans to hand over their money with very little thought taken, very little knowledge of the so-called investments offered, and even less control of their investments. When the evidence is plainly presented, it becomes overwhelmingly clear that putting money into 401(k)s and similar qualified plans is not investing at all--it is one of the riskiest gambles for most individuals. Read the following reasons why I say this, and ask yourself if it's time to reconsider your 401(k). 1. Limited Opportunity For Cash Flow Qualified retirement plans, such as 401(k)s and IRAs, do not provide immediate cash flow, which means that you cannot benefit from them through velocity and utilization. The theory is that letting the money sit allows it to compound, but for most people this really means that it stagnates. Most people will not choose to utilize these funds even when a particularly compelling o...

Reports of people making huge gains in stock markets have been carried in newspapers around the world. This has attracted many first time investors to the stock market. Day trading is one of the systems gaining in popularity with investors. But day trading is fraught with risks. Though you can make huge gains in day trading, you are also likely to lose huge money. However, if you want to do day trading here are some tips to succeed: Who is day trader? A person who actively participates in stock market and buys and sells many times a day to make quick profits is called a day trader. What are the tips to succeed in day trading? 1. Study the basics of the system like the working of the market, which way the stocks will move, the long and short calls, and the time to buy and sell. You should also learn to take care of the profits while reducing the losses. 2. Since mastering day trading is a time consuming process, use the trading platform available on the trading websites before you actua...

You’ve analyzed your past expenses, put them into spreadsheets, loaded Quicken with all of your data and come up with a budget. Now what? The tough part! You actually have to stick to your budget and put your plans into action. This is easier said than done. In many cases you will have forgotten about your budget and your financial goals 6 months or a year down the road. How do you keep this from happening to you? Here’s how. Make sure you follow some of these tips below so this doesn’t happen to you. 1. Create a budget with realistic targets – Let’s say one of your budget goals is to not eat out for lunch or dinner on a regular basis. If you are honest with yourself you may find this to be an unrealistic goal. Sometimes it’s a nice break to eat out and have a relaxing rewarding evening. In other words, don’t set the bar too high. Drastic and unrealistic goals are one of the surefire ways your budget will not succeed. 2. Budget for expenses that don’t occur on a routine basis – Make...

Many of the brightest and hardest-working marketing and advertising people in the country are obsessed with getting you to spend money and, if necessary, to go into debt to do so. Absolutely all the media that reach you every day are designed to get you to spend money. In order to save money in this environment, you will need determination to withstand the constant pressures to spend now. What is it that separates those who are successful from those who are not? Successful individuals have a strong personal vision of what they want and why they want it. That vision gives them the strength to stick to their strategies even when doing so is uncomfortable. It gives them the determination to persist when they are discouraged. This is the same characteristic of women entrepreneurs and is the reason their new, small businesses are successful. The 401k Plan Today, the 401(k) plan has become the main investment vehicle for working women to save for retirement. But many don’t take full advantag...

1) Attitude-- One very important factor in running a business is your attitude towards it. You should treat your business like a business. This is very important whether you work your business full-time, or part-time. A very close friend of mine, who is also a colleague, is a mother of 4 who works her home business around her family. In this case, she has put her family first, and at the same time, still been able to develop her business.She works part-time, but she has a full-time attitude. To put it another way, if you have a lacking attitude, you'll have a lacking income. However, if you have a business attitude, you'll have a business income. Keeping your attitude in mind while running your business is one of the first steps to ensuring your success. Being successful working part-time on your business, or working full-time, is more than achievable. However in saying that, it is highly unlikely that working in your "spare time" will achieve you success. 2) The...

Whether you are a new entrepreneur or a more experienced business owner, taking control of your finances can feel like a part-time job.  Some simple tips can help you streamline your time, organize your finances and reduce the stress of business money matters. 1.  Keep Your Bills in One Place  When the mail comes, make sure it goes in one place.  Misplaced bills can be the cause of unwanted late fees and can damage your credit rating.  Whether it's a drawer, a box, or a file, be consistent.  Size is also important.  If you get a lot of mail, use an area that won't get filled up too quickly. 2.  Pay Your Bills on Schedule  Bill paying can be simplified if it's done at scheduled times during the month.  Depending on how many bills you receive, you can establish set times each month when none of your bills will be late.  If you're paying bills as you receive them, chances are you're spending too much time in front of the checkbook....

With energy costs higher than they have ever been in recent history, it pays to find ways to reduce your home heating costs. I put together some tips that are easy, cost effective and will all add up to reduce your home heating bills by a significant amount! You don’t need to be Bob Villa either. Some take just a minute or two. Even small changes will add up to big savings over the course of this cold winter! Here are the 10 tips that I have personally used to save on my home heating costs:  1. Head down to the basement and reduce the setting on your hot water thermostat by about 10 degrees. I wouldn’t go below 120-115 degrees. The adjustment dial is typically a red knob towards the bottom of the water tank. 2. While you are downstairs, make sure you have clean filters for your central air-heating unit. A dirty and clogged filter will force your unit to work much harder and stay on longer as it struggles to fresh air through the clogged filter to heat the rest of your house. 3. Che...

Previously available only to a private trading group, this EA is now publicly  available only from myfxtools.com. This EA has been compared to other EA's in  the market and outperformed every one of them. The key to success of this  system is that it is flexible to changing market conditions. Some of Point Break features: Small trades are continuously added above and below the opening position. The system will pyramiding, hedging or closing some positions depends which way the market moves. All trades are closed only when a net profit is reached and added to your account balance. Built in money management will automatically calculate the  correct position size for your risk level, and it can be used as a full automatic trading system or use it to create your own trading system. The main goal of multiple trading strategies is to make the drawdown become  smoother when there is choppy market. Since Point Break version 4, we invented multiple close strategies. Besi...

After years of conducting tens of thousands of successful 1031 exchanges, we found that there are a number of frequently asked questions related to this type of transaction… Equity and Gain Is my tax based on my equAfter years of conducting tens of thousands of successful 1031 exchanges, we found that there are a number of frequently asked questions related to this type of transaction… Equity and Gain Is my tax based on my equity or my taxable gain? Tax is calculated upon the taxable gain. Gain and equity are two separate and distinct items. To determine your gain, identify your original purchase price, deduct any depreciation which has been previously reported, then add the value of any improvements which have been made to the property. The resulting figure will reflect your cost or tax basis. Your gain is then calculated by subtracting the cost basis from the net sales price. Deferring All Gain Is there a simple rule for structuring an exchange where all the taxable gain will ...