DrBoycePersonalFinance

Is overseas the better option for ball players?

2009-12-11T20:16:00.000-08:00

By Jameel Murray

Recently there has been a sudden influx of professional basketball players opting to take their game to many leagues overseas. The dream of playing in the NBA and basking million dollar contracts are becoming a bit watered down. Some current players in the NBA are making less than $800,000 annually, well below the $4.9 million dollar average. Although there are talented players that enter the league every year, the NBA dream is somewhat short-lived with an average career span of 5years. During that 5-years span, players make an adequate amount of money but also have to pay off multiple expenses such as personal training, taxes, high auto insurance rates, and other significant expenses such as food and housing. After analyzing this data, one has to question whether the NBA offers the world’s best talent the dream and fortunes of a lifetime. There are thousands of talented players who may never experience the NBA dream but may be provided with a potentially better option; overseas basketball.
Although making the transition from the United States to a country thousands of miles across the globe may be quite extreme to pursue a career, the opportunity to build wealth is extremely blatant. One of the main differences between NBA basketball and overseas basketball lies in the fame that each league creates for its players. The NBA has many of the word’s most well known players while overseas basketball may be occupied with unknown talent. However, many international teams provide players with a car, a house, a chef, and substantial contracts that are paid in Euros without a salary cap. These international contracts offer players an array of wealth while cutting back on some of the expenses that an NBA player has to come to terms with. If a player can earn an annual contract worth 800,000 Euros, then that player would be making more than $ 1 million in the United States. Many notable NBA players such as Josh Childress and Linas Klieza have made the jump to international careers.

http://www.basketball-overseas.com/for_players/best_overseas_basketball_countries.htm

http://hoopshype.com/salaries.htm

http://sports.espn.go.com/nba/news/story?id=4389053

Lessons from recession

2009-12-11T19:03:00.001-08:00

By Alma Zhumagulova

This recession has taught American people to manage their finances better, to spend less, save more and to be financially responsible for them. However, now that the economy is recovering many people might go back to their old habits of impulsive purchases, not keeping track of spending, not saving etc. This is called the “wealth effect” and is commonly observed after the times financial distress.
However, people should not forget the lessons they learned from this recession. So even though it might seem that you don’t need to worry anymore about your finances, you should still set aside some portion of your income – at least 10%. Restrain yourself from unnecessary purchases; think where else you could have used that money. However, avoid being too frugal; have a small portion of income set aside for impulsive purchases and NEVER go beyond that number.
Another advice is to treat your money well: pay attention to how you treat it, keep them “neatly sorted in your wallet”, and not stuffed in random places, balance your checkbook regularly, and pay your bills on time.
In order to be on the same page with your partner, have the “money talk” and make sure you both have the same financial goals and objectives and follow the “rules and regulations” on how, where and when to spend your money. Your financial future depends on the decisions made by both of you, so ensure that you are both on the right track.
Sources:
http://money.cnn.com/2009/12/07/pf/financial_habits.moneymag/index.htm
http://www.walletpop.com/blog/2009/12/04/debt-diet-part-4-respect-your-money/
http://www.walletpop.com/blog/2009/12/10/debt-diet-part-5-making-men-women-and-money-get-along-at-the-h/

Tiger Woods and the financial reality

2009-12-11T19:03:00.000-08:00

By Jonathan Tse

Recent news relating to Tiger Woods' has shocked everyone with his reputation shattered after numerous news stories reveal scandal after scandal. Tiger Woods is arguably the best golf player in the world and also a great marketing icon to companies like Gatorade and Nike. These companies have invested heavily on him and if he leaves the golf world, much revenue will be lost from these companies who draw on his reputation for high sales. Once news of these scandals came out, companies began to reduce their Tiger Woods-related ads in an effort to reduce the effect that he would have on their reputation and sales. Also, the golf world will suffer from this as well, since many golf fans are interested in golf because of Woods. Without Woods, the golf world will still survive and move on, but it definitely will not be as popular as it used to. In the financial perspective of Woods himself, this would severely hurt his reputation and his wealth. Most of his earnings come from corporate sponsorships, so without them his earnings will be severely cut. The most effective thing that he can do to preserve his reputation and his salary is to apologize to the public and admit his wrongdoings. Sadly, he has waited much too long and his reputation is now tarnished by the media. This has ultimately forced him to declare in his website on Friday that he has decided to an “indefinite break from golf.” Now all fears have become a reality. Things will go on, but the future of the golf world and everyone linked to it will be greatly impacted by this decision.

http://www.nytimes.com/2009/12/12/sports/golf/12woods.html?hp http://www.dailyfinance.com/2009/12/09/what-tiger-inc-needs-to-do-to-save-a-100-million-a-year-empire/?icid=sphere_blogsmith_inpage_dailyfinance http://www.bvonmoney.com/2009/12/11/tiger-woods-quitting-golf/

Best Degrees to Graduate With

2009-12-11T18:51:00.000-08:00

By: Nicole Nelson

These days, with rising costs of secondary education, it is important to make sure that the degree you are paying for is worth what you are actually paying for. CNN money has made a list of the fifteen top earning degrees. Not so surprisingly, different types of engineering degrees take twelve of these fifteen spots with Petroleum, Chemical and Mining Engineering topping the list. The other three include computer science, actuarial science and construction management. These top fifteen’s average starting offers range from $54,200-$83,121. One thing that all of these degrees have in common though are the fact that they are based primarily on math skills. A director of research at NACE said “Math is at the crux of who gets paid, if you have those skills, you are an extremely valuable asset.” The reason some of these top the list is because their industries resources are becoming more and more scarce. Although engineering takes most of this list, it isn’t to say recent graduates haven’t felt the pinch of fewer job offers. But, since there are fewer and fewer people graduating with math-based majors compared to those graduating with liberal-arts majors, the math majors are being paid at such large premiums. So, if you are somewhat good at math and are looking to declare a major, engineering may be the way to go.

http://money.cnn.com/2009/07/24/news/economy/highest_starting_salaries/index.htm
http://20smoney.com/2009/10/09/best-college-degrees-for-getting-a-job/
http://moneywatch.bnet.com/saving-money/blog/college-solution/the-best-and-worst-college-degrees-by-salary/577/

Best Jobs

2009-12-11T18:26:00.000-08:00

BY: Nicole Nelson

Money/PayScale.com has come out with the best jobs in America for 2009. The top fifty take into account great pay and growth prospect. Systems Engineer, Physician Assistant, College Professor, Nurse Practitioner, and Information Technology Project Manager top this list. When just looking at the highest pay, Anesthesiologist, Physician/Ob-Gyn, Psychiatrist, Nurse Anesthetist and Sales Director have the highest median salaries. The median salary for Anesthesiologist was $292,000 and this job was ranked eleventh on the full list. When looking strictly at job growth, Telecommunications Network Engineer tops this list with 21,000 total jobs and a 53% 10-year growth. This job ranks 30th on the full list. Following this on the best jobs based on Job Growth is Systems Engineer, Personal Financial Advisor, Veterinarian and Senior Financial Analyst. When just considering the job with the least stress, an Education/Training Consultant tops the list with 60% of people who have this job saying it is low stress. This is followed by a Physical Therapist with 59.5% of workers saying their job is low stress. Security wise, Emergency Room Physician and General Surgeon top the list of Job Security with 100% of workers saying their job is secure. If you are looking for a job with flexibility, 40-43% of Sales Directors, Software Product Managers and Software Development Directors say their jobs are flexible. If you would like to work in a position with future growth, 87-93% of Product Management Directors, Intelligence Analysts and Psychiatrists believe their jobs will grow in the future. Finally, on the basis of satisfaction, Nurse Anesthetists, Anesthesiologists and Training and Development Managers seem to be the most satisfied.

http://money.cnn.com/magazines/moneymag/bestjobs/2009/snapshots/1.html
http://www.todayshottrends.net/business/10-best-jobs-in-america-2009.html
http://jobs.aol.com/articles/photos/best-jobs-in-america-2009/

Tips for Estate Planning

2009-12-11T18:23:00.000-08:00

By Jonathan Tse

It is very important to make an estate plan in the event that you die and leave behind loved ones who depend on you greatly. Many people lack a comprehensive and adequate estate plan that outlines how all wealth is allocated. In the case that this happens, everything goes into the hands of the government who will take on the task of dividing up wealth that is left behind, or even worse, will take possession of the wealth.
The estate plan should not only consist of a will but also a durable power of attorney and also a health proxy. For some people, it would also be beneficial to have a trust as well if one’s estate is more complex and could be liable for more taxes. One important tip is to take an inventory of all the assets in possession so that it would be easier to allocate them to your heirs. A big problem with estate planning is that there may often be things that are left out and are not allocated. Also, in order to simplify one’s will, one can try to get rid of assets before death through joint tenancies or transferring ownership to trusts. In order to avoid confusion and conflicts about who gets what after your death, it may be good to speak to your heirs to clearly outline who will receive what. If you do not want to allocate wealth to a certain child of yours, you must clearly state that in your will.
One last tip relates to tax laws. Since all income is taxable, for properties with lots of taxable profit, it will be beneficial to keep the property until death so that the taxable income will disappear and your heirs will gain the property with the basis at fair market value. For property with a deductible loss, it is important to sell the property before death to take advantage of the deduction otherwise it will be lost after death.

http://articles.moneycentral.msn.com/RetirementandWills/PlanYourEstate/12easyStepsToPreparingYourEstatePlan.aspx
http://money.cnn.com/magazines/moneymag/money101/lesson21/
http://articles.moneycentral.msn.com/RetirementandWills/PlanYourEstate/Your5MinuteGuideToEstatePlanning.aspx

Holiday Credit Card Tips

2009-12-11T18:17:00.000-08:00

BY: Nicole Nelson

Many stores offer discounts or special deals if you sign up for their credit card. This practice is even more prevalent around the holidays since they realize many people are buying now more than ever, they are putting it on credits and most likely not paying it off for a couple of months or longer. But, although it may seem good to save money by opening up a card, you may actually save money by using the card you already have. Most store cards carry very high interest rates and low credit limits. When purchasing, it is also smart to check out which of the cards you already have has the lowest interest rates. This includes checking the fine print to make sure this rate won’t all of a sudden rise drastically. It is also important to keep track of your credit card limits. Your credit score depends on the amount of your credit that you are actually using. Also, some people do not realize or take advantage of return policies. Major credit cards offer “return protection”. This means the issuer will take back items that the store will no longer take, up until 90 days after the purchase. The last tip seems like a simple one but is most of the time forgotten. This is taking note of how much you are charging. This will save you time and money after the holidays have ended.

http://money.cnn.com/2009/11/18/pf/holiday_credit_card_tips/index.htm
http://www.smartmoney.com/personal-finance/debt/the-best-holiday-credit-card-strategies/
http://www.timesonline.co.uk/tol/travel/news/article3458381.ece

Best Stocks for 2010

2009-12-11T18:14:00.001-08:00

By: Nicole Nelson

Although the financial crisis has caused some people to be weary of investing their money, business magazines have posted their opinions on stocks that will do well in 2010. They believe that these stocks will prosper even if the market does not do so. Topping the list is MasterCard. MasterCard had surprisingly good results in 2009 considering it is a consumer-dependent company. They believe if more people use cards and total dollar volume increased (like most analysts believe it will), MasterCard will earn more. In second is Amedisys. Amedisys is a health care company that has suffered greatly in the past year. But, with our population aging, our country is in more need for health services. Analysts believe this company will thrive and recover in the upcoming year. Qualcomm comes in third for best stocks for 2010. This company’s chips are in one third of the world’s cell phones today. Although the past year hasn’t been the greatest for mobile phones, it is expected that people will start buying again once the world economy stabilizes and more companies adapt 3g networks. Other stocks rounding out the top 10 include less known businesses such as Vorndao, American Tower, Salesforce.com, Baxter Industries and Petrowhawk Energy. So although the market has obviously had its ups and down the stocks discussed are believed to thrive in the next year.

http://money.cnn.com/galleries/2009/pf/0912/gallery.best_stocks_2010.fortune/index.html
http://www.nytimes.com/2000/02/20/business/business-10-stocks-for-2010-buy-and-hold-picks-from-top-investors.html
http://online.wsj.com/article/BT-CO-20091211-709940.html?mod=rss_Hot_Stocks

The Simple, But Rarely followed tips

2009-12-11T15:04:00.001-08:00

By Shawn Chandok

The following list is a list of tips that we as humans take for granted. Some of them can be induced as basic knowledge; however you will be surprised to see how many people don’t follow them.
1. Pay Yourself First: What this means is before you deduct any expenses from your income, the first thing you should do is take a percentage (usually 10-20%) out for your savings account.
2. Spend Less than you earn: Although this may seem less, Americans are notorious for doing just the opposite. Do not fall for luring advertisements on credit cards, and try to use them as little as possible (only for emergencies in my opinion).
3. Pay Bills on time: This is one of the biggest mistakes you can make during your college life if not followed because it can ruin your credit history for your upcoming future, which means it will be very hard to get a loan for a house, car, etc.
4. Plan a budget: Always record your daily expenses in either a small book or computer program and constantly analyzer where you can reduce expenses.
5. Set Goals: Although last on the list, this is probably one of the most important things to consider because setting goals allows you to achieve more exhilaration in life and not live check by check.

Source#1
Source#2
Source#3

The Cost of Dining Out

2009-12-11T14:20:00.000-08:00

By Shawn Chandok

As college students, we love to make excuses. One mantra for life is “I was too busy and didn’t have time.” However, there is 1 big cost associated with this problem, and that is dining out. We all complain how much we hate the dining hall food; however that doesn’t make any change. Using that as another excuse, we love to splurge our money and eat out. It is averaged that each dining out meal costs an average of $26, however since we are in Syracuse and close to a university this number is most likely around $20. Ask yourself how many times you eat out a week? 2? 3? 4? Not taking into consideration anything else, that is almost $60/week of simply food that you could be saving by cooking yourself. Not only that, but by staying home and cooking you are also learning to cook and are at a lower risk of eating unhealthy foods. Furthermore, when you waste such money on eating out you may feel satisfied the moment after you ate, however you always feel stupid for wasting money. In conclusion, it is always more healthy and cheaper to eat in and not splurge unnecessary money on outside meals. This is a very important consideration to take into account during finals week when everyone is in the library till 4 am and have food cravings.

Source#1
Source#2
Source#3

Financial Advice for Mrs. Tiger Woods

2009-12-11T14:16:00.000-08:00

Posted by Ahmed Al-Salem

Everyone has their own opinion on the Tiger Woods scandal. There are so many differing reports and theories about the incident and one can get lost in all the details. All we know for sure is that Tiger did something bad and his wife is upset. What should she do? Below is advice from two experts on money and divorce.

• Don't give in to anger or rush your decision: "My first recommendation would be: Take your time, go slow, don't do anything precipitously," says A.J. Barranco (a partner at Barranco & Kircher in Miami, is an experienced Florida matrimonial lawyer and represented Hulk Hogan's wife in their recent divorce) "Try to save your marriage if you can, and if you can't, explore your options." Mark Hill agrees. "Don't listen to your girlfriends and go out and get the most aggressive lawyer in your jurisdiction," he says. He's seen it too many times. Most people are hurt, angry or scared, he says. "They hire an aggressive attorney because they feel that will protect their rights more. But that tends to push their spouse to hire an even more aggressive attorney."

• Get this out of the public eye as fast as you can, and keep it there: "You want to prevent this from becoming any more public than it's become already," says Mr. Barranco. This is turning into a public-relations fiasco, and that's bad news for everyone involved. And by damaging Tiger Woods's reputation, it may be damaging all of their financial interests. Your willingness to take this private and play ball is probably your strongest financial card—and can give you a lot of leverage. Tiger Woods does not want to suffer any more damage in public.

• Even if you do decide to divorce your husband, "choose how you are going to divorce first," says Mark Hill (Certified Financial Divorce Analysts with more than 20 years' experience advising high-net-worth individuals). "Realize that you have that decision to make first." That means looking at nonconfrontational options, such as mediation, before you even think about going to war. One nonconfrontational option: so-called "collaborative divorce," in which the two parties hire lawyers, personal counselors and a neutral financial expert such as a CPA to help them sort through all the issues—but sign an agreement at the outset not to go to court. It's not cheap, says Mr. Hill, but most times it's cheaper than a messy legal fight.

Source 1
Source 2
Source 3

Stock Options as Part of Compensation

2009-12-11T12:32:00.001-08:00

By: Kelsey Hoffman

When taking a job, it is very important to look at the compensation package that you will be receiving. There are tangible and intangible benefits with each offer including your starting salary, commission, bonuses, paid sick or vacation days, and very often stock options. Many companies give stock options as part of their compensation plan in order to make employees more part of the company. These stock options usually have restrictions on them though and can only be exercised after the employee has worked for the company for a certain amount of time.

There are some issues though with stock options and discrepencies as to whether or not they are good motivation for employees as compensation. What if an executive had these stock options and decided to exercise and sell them immediately? Doesn’t he want a part of the company? Doesn’t he think these stocks are worth money? With these questions it makes shareholders weary of whether or not this company is a good investment. For this reason, Goldman Sachs decided that top executives would only receive stock options as a part of their bonuses as it made them more exclusive compensation. Financially this is a very smart idea because if the company goes under then the shares can be repossessed.

Sources:
http://www.signonsandiego.com/news/2009/dec/10/workers-can-exchange-worthless-stock/
http://www.benzinga.com/pressreleases/m59333/ecometals-amends-stock-option-plan
http://www.businessweek.com/bwdaily/dnflash/content/dec2009/db20091210_243210.htm

Year End Tax Tips

2009-12-10T22:54:00.000-08:00

Posted by Chris O'Sullivan

Time to Review Your Taxes — Before It's Too Late

Year-end tax planning always makes sense, but this year it's especially vital.

Convulsions in the markets and the economy have shifted the ground beneath many taxpayers, and next year may bring major tax changes as lawmakers confront the record deficit.

Bottom line: review your taxes before it's too late. "Too often, I can't do anything for people who come to me in February," says Douglas Stives, an accountant with Curchin Group in Red Bank, N.J.

Here are areas especially relevant now. (For more details, go to www.irs.gov.)

First-Time Home-Buyer Tax Credit

Congress has just extended and altered this benefit, making it more generous for many. The new rules took effect on Nov. 6. The provision is a true dollar-for-dollar tax credit of up to $8,000 for 10% of the cost of a home. The credit is also refundable, meaning that even if a buyer doesn't owe $8,000 of tax, she can claim the full benefit and receive a refund check.

The new law has more generous phase-outs. The credit now begins to disappear for single taxpayers with modified adjusted gross incomes of $125,000 and married couples with incomes of $225,000. It is available for purchases through July 1, 2010 if the buyer has a contract in place before May 1, 2010. Unlike the prior law, however, this credit is capped: those buying homes for more than $800,000 get no credit at all, as of Nov. 6.

Click here to read more....

Is Wall St Ready to Start Hiring?

2009-12-10T13:48:00.000-08:00

Article by Matthew Maillet

Unemployment indicators tell us that company layoffs bottomed out in early 2009, which may give promise to the idea of finding a job in the business service sector. The Johnson Assosciate, a compensating consulting firm, announced that investment banks alone are expected to increase their workforce by 40% from its 2008 levels.

Companies responded to the economic downturn by cutting down on their workforce in specific company sectors that they deemed unprofitable, however, one can expect an increase in other business areas that they see as a source of company value. For example, Citigroup responded to their financial struggles by cutting down significantly on their total workforce; however, certain sectors such as capital markets and mortgage modification will soon be bulking up in new hires. Citigroup spokesman Alex Samuelson reported that they are still actively seeking to “hire the best financial advisors for our private wealth management.” This trend is expected to be industry-wide. This trend gives promise to entry level applicants fresh out of college. Focus on certain sectors that companies wish to expand. Even more promising, the Johnson Associates firm predicts substantial increases in bonuses for investment bank employees—they predict an average of 40% from 2008 levels.

Source 1
Source 2
Source 3

Why You Don't Always Need A College Degree

2009-12-08T08:21:00.000-08:00

Posted by Lindsey Connell

For years, I told friends and family that I wouldn’t go to college if it wasn’t required in order to practice law. When I decided that law wasn’t for me, I seriously considered giving up on college altogether.

My reasoning was fairly simple, though the reaction I get from most people is something along the lines of: “What? You can’t be serious! A college education is the only way to make money! People without degrees fail!” Heeding this fear-mongering myth, many students my age are spending $50,000+ each on their degrees; some will spend more with graduate and post-graduate studies. But is it worth it?

College has become a kind of a rat-race; the value of a degree is often based on social perception rather than concrete education. The nicer the college one is accepted to, the better one looks, the more likely one is to get a job — at least, thus goes the general belief. This is actually not entirely true, as we’ll be discussing in a bit.

Click here to read more

How To Plan Financially for a Baby

2009-12-08T08:16:00.000-08:00

Posted by Lindsey Connell

There are many things that you can financially plan for in the future, and planning for a baby is no exception. The first thing to consider is that while you may be making good money now, when you are pregnant or having the baby, you will be working far less hours. Some companies offer short term disability insurance which covers a portion of the pregnancy for six weeks following the birth of the baby. You also could be granted Family Medical Leave Act but it only guarantees that your position will not be filled while you are on leave and does not grant you any money. One of the biggest expenses is child care and is very high when the child is an infant. It is imperative that once you decide to have a baby that you put aside money in a separate savings account because the expenses of having a baby are almost always underestimated. Besides the obvious expenses such as food, diapers, and clothes as the baby constantly grows there are smaller expenses such that add up quickly such as toys and additional clothes and shoes. Although the baby may look adorable in these accessories, it is important to budget for not only the necessary expenses but also for minor ones.

http://financialplan.about.com/cs/familyfinances/a/CanYouAffordKid.htm

http://articles.directorym.com/Financially_Planning_for_a_Baby-a1147904.html

http://www.childbirthconnection.org/article.asp?ck=10304

Money Monday: The Best Personal Finance Stories from the Weekend

2009-12-07T22:22:00.000-08:00

Posted by Ka Lee Angel Lee

Some of the best personal finance stories you might have missed this weekend:

In Forbes, we identified eight last-minute ways to cut your 2009 taxes, how self-employed workers can boost their retirement savings if they act before December 31st, and how to be a tax-smart charitable giver.

The Seattle Times wrote about a single mom with two children who was audited because the IRS didn’t think she could live on $10 an hour in Seattle, an expensive city that's home to corporations like Amazon, Starbucks and Nordstrom.

The New York Times, meanwhile, puzzled over why those who make financial resolutions have such a hard time following through with them, noticed that companies with high-quality balance sheets like Wal-Mart and Apple have not risen as much in the stock rally as those laden with debt, and showed that buying a foreclosed home can help you find a bargain but can come with risks. For more on buying your first home, check out this package from Forbes.

click here to read more

Cash is KING!

2009-12-06T13:35:00.000-08:00

Post by David Held

I walk into a McDonald’s and a lady swipes her American Express for a $2.68 meal, I look to my friend and say, “Isn’t it easier to pay in cash, than worrying about paying a three dollar credit bill?” I then proceed to get my meal and pay in cash. I wonder, does anyone carry cash on them anymore? Every day I see more credit cards being used and less cash being used. The truth of the matter is when people use credit cards they feel as if they are not giving anything up in exchange for what they purchase. Even when paying the statement, the cash is never seen, it is just deducted from your bank account.

When paying in cash people tend to be more conservative with what they buy. Cash feels more value than a piece of plastic. The problem with credit cards is that they can get you into a lot of trouble, especially when you are spending money that you do not have! Paying for everything in cash will not allow you to overspend, because once you run out, you cannot buy anymore.

Having a credit card means you will spend more. “The average family today carries $8,000 in credit card debt according to the American Bankers' Association.” If you are going to buy, start spending cash, it could ultimately help your financial future!

Sources #1, #2, #3

American’s Are Still in a Charitable Mood: Other Way to Give

2009-12-06T13:33:00.000-08:00

By: Sara Sindelar

The Holidays are a time for giving to the less fortunate. Though, this year there may be many more who are in need, only 20% of Americans say they are reducing what they will be giving to charity this year. People feel that due to the economy it is more important to give to those in need more than ever, states the American Red Cross poll.

With giving comes tax deductions which help both those receiving the gift and those giving. Those giving to individuals receive an annual gift tax exclusion which allows one to give up to $13,000.

Though many people may be able to keep up with their charitable contributions many are becoming their own charity. With the economic hard times people are struggling to donate the way that they always have to charities and individuals. Though, money is not the only way to give back to your community and foundations. Places are looking for volunteers and any other way you can give time or help to their organization. Here are some suggestions on how to get involved passed money with your favorite organization.

First, Take your professional skills and use them to help out. Second, Clean our your own attic or garage and donate things you never use or sell them and give the money to the foundation. You can see if your credit card gives points to donate to your charity or partner with your company for matching-gift programs. Ask your family to donate to your charity of choice instead of getting you a gift. You can also organize your own fundraiser like a walk a thon or bake sale. There are still many other ways to give in a hard economic time during this holiday season.

http://money.cnn.com/2009/11/30/pf/charitable_giving.moneymag/index.htm
http://www.thespectrum.com/article/20091206/BUSINESS/912060316/Holiday+Giving+Offers+Tax+Benefits
http://www.reuters.com/article/idUSTRE5AT50F20091130

Debit or Credit: What to Choose?

2009-12-06T13:02:00.000-08:00

By: Laura Reginelli

Debit versus credit. Sometimes it can be difficult deciphering between the two and knowing which one fits your lifestyle better. Both are relatively new to the financial world; however, debit cards have been available for a shorter amount of time. Either way, both options allow you the freedom of not carrying cash and still being able to make purchases. When deciding between the two there are a few things that you should acknowledge and take into consideration.

Credit: Credit cards appeared first in comparison to debit cards. Essentially when using a credit card you are using someone else’s money to make a purchase and then promising to pay the bill later. Most credit cards generally have very high interest rates, which can be a major drawback if you have trouble paying your bills.

Debit: Debit cards carry the same convenience that credit cards do but you are not borrowing the money. Instead the money from a debit card is coming directly from your bank account. This eliminates the hassle of paying the credit card bill or having high interest rates accumulate debt. When using a debit card you generally have a choice of how you want the payment to go through, either debit or credit. With debit you have to enter a PIN number and the money is taken directly from your account.

When choosing between debit and credit take a look at your spending habits and determine what is most important to you.

Sources: http://www.ehow.com/about_4762135_credit-vs-debit.html?ref=fuel&utm_source=yahoo&utm_medium=ssp&utm_campaign=yssp_art

http://banking.about.com/od/checkingaccounts/a/debitvscredit.htm

http://www.creditcards.com/credit-card-news/debit-or-credit-differences-1271.php?a_aid=1017&a_cid=1204

How to Lower Credit Card Rates

2009-12-02T19:30:00.000-08:00

Posted by Lindsey Connell

If you are unhappy with your credit card rate and wish for it to be lowered, the solution may be just as simple as you asking the company. In a survey conducted, half of credit card users lowered their credit rates simply by asking for it. If you think about it, credit card companies want to make money so they will not lower rates unless they know that they may lose you as a customer if they don’t. If a credit card company denies this lowering, maybe you can make a deal so that it is temporarily reduced and that is better than nothing. A major reason as to why credit card companies may cut you a deal is because there is so much competition among them and other credit card companies. If their rates are too high than they will lose customers so once complaints begin flowing in about how their rates are too high, they may drop them lower for all their customers in fear that they will lose them. Also, if you are denied this low interest rate, the company is legally obligated to explain why to you so you can take that feedback, improve or change what you did before and reapply.

http://www.bankrate.com/finance/credit-cards/want-a-lower-credit-card-rate-just-ask.aspxv

http://www.ehow.com/how_2404_lower-interest-rate.html

http://www.tracer2.com/admin/uploadedpublications/256_tlmrexpert0303.pdf

Debit Cards: A safe way to pay

2009-12-02T13:57:00.000-08:00

Posted by Lindsey Connell

We seem to see this controversy all the time: Debit cards vs. Credit cards. The truth is that they can’t really be compared too closely because they are used very differently and while some people may be responsible with one of the cards, they may be unable to keep themselves out of debt with the other one. We will take a close look today at debit cards, because while they have their negative side, they are also a very beneficial and convenient thing to have. One major benefit to having a debit card is that you are spending the money you have at the moment. By only spending money that you have in your possession, you don’t have to worry about making payments to the credit card company or deal with the stress of debt. These cards are also similar to credit cards in the fact that they provide security and rewards. Certain banks match a percentage of the money you spend with a debit card and deposit it directly into your bank account. Another benefit is that if you spend more money than you have in your bank account, you simply have to pay a fee but are not considered in debt.

http://www.gatherlittlebylittle.com/2007/08/why-debit-cards-are-better-than-credit-cards/

http://www.credit.com/slp/chapter5/Debit-Cards.jsp

http://www.militarymoney.com/credit/1093531365

Personal Finance: To buy or not to buy an extended warranty?

2009-12-01T16:51:00.000-08:00

Posted By: Scott Graulich

It's a classic shopper's dilemma. No, we're not talking paper vs. plastic. How about: Do I buy the extended warranty or not?

With Black Friday behind us and Cyber Monday ahead, the holiday season is in full cash-register mode. And even in a recession-addled year, personal electronics – laptops, Blu-ray players, iPhones and Xboxes – still top many gift lists. And that's where extended warranties come into play.

Click here to read more

Set aside time for financial housekeeping

2009-12-01T16:50:00.000-08:00

Posted By: Scott Graulich

When times are tough or life is busy, it's easy to lose track of time and the commitment to all the necessities in life that need to be accomplished. But like a datebook or online calendar that you fill up daily, adding tasks important to your personal finances are one way of making sure they get done.

Your calendar for living has 168 hours a week. Take away 56 of those for 8 hours of sleep each night; take 40 of those if you work full time; and you have 72 waking hours to get stuff done. Your sleep and work hours may be different so adjust accordingly.

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Personal finance books for everyone

2009-12-01T10:55:00.000-08:00

Posted by Ka Lee Angel Lee

The Associated Press

Posted: 11/30/2009 08:41:53 PM PSTc

The approach of a new decade means a chance for a fresh start with your financial habits. Maybe your loved ones could use a nudge in that direction, too.

Either way, it's time to cast out any idea that books about money have to be boring. There's an abundance of well-written, even entertaining books on the market that could make savvy holiday gifts for either the personal finance nerd in your life or that special someone who could benefit from good information.

What follows is a sampler of books for all ages to whet your per-fi appetite.

click here to read more

$123.5 million in tax refunds unclaimed

2009-12-01T07:54:00.000-08:00

By Bankrate.com
Posted by: Lily Mei

What could you do with $1,148?

Find missing money
That's the average amount of the tax refund checks that were returned in 2009 to the Internal Revenue Service because they were undeliverable.

Whether your unclaimed refund is less or more, any amount would be nice with the holidays just around the corner.

In all, the IRS has 107,831 refund checks totaling $123.5 million in missing money.

The main reason the checks were returned is simple: The taxpayers moved after filing their 2008 tax returns and forgot to give the IRS their new addresses.

In some cases, the addresses on people's tax forms were illegible, causing the checks to be issued to wrong addresses.

Let the IRS know where you live
Whatever the reason, the IRS has money that could be yours. All you have to do is let the agency know where to send it.

The simplest method is to provide your address electronically, via the agency's refund-tracking Web page.

Taxpayers can also call 1-800-829-1954 to check on a refund and receive instructions on how to update an address.

And the IRS still accepts a mailed Form 8822 (.pdf download) for address changes, but this method will take longer.

More from MSN Money and Bankrate.com
10 ways to lower your 2009 taxes now
Uncle Sam wants a slice of prize winnings
How to find lost life insurance policies
Legal tax havens? Thank heaven!
2010: The best year to die?
The best way to invest a windfall
.Tracking down your refund
When using either the Web or phone option, have your 2008 return handy. You'll need to provide your Social Security number, your filing status and the amount of the refund shown on your tax return.

If the money went back to the IRS, you will be prompted to enter your correct mailing information during the tracking process.

However, if you moved and simply want to use the online or phone option to let the IRS know about your new address, you're out of luck. You'll have to use Form 8822 to ensure future refunds make it to your new home.

Click here to read more

Credit Cards: how the disadvantages may outweigh the benefits for some

2009-11-30T20:15:00.000-08:00

Posted by Lindsey Connell

Credit card companies try to get you to spend as much as possible because the more you spend, the more they benefit. Credit card companies receive a percentage of each transaction a credit card holder has and these companies bank on the fact that the more a holder spends, the better chance that they will borrow more money with the company’s high interest rates. If the holder then exceeds their credit limit, the companies charge additional fees, which can be expensive. By relying on a credit card for most purchases, it makes budgeting and saving money more difficult and can often times lead to debt. Although carrying a credit card seems more convenient than money, the disadvantages of it seem to weigh heavily over the advantages. Hidden fees and penalties associated with credit cards often surprise many card holders because making purchases with a piece of plastic doesn’t always feel like spending money. Although credit cards seem dangerous, they are also useful for people who are responsible and stay on top of their payments. For those who have a secured amount of money coming into their possession soon but not at the moment, they can purchase something on credit now and pay for it when they get the sum of money. This is a major advantage that credit cards have over cash.

http://financialplan.about.com/od/savingmoney/qt/Overspending.htm

http://www.pcbs.org/credit-cards-can-encourage-overspending/

http://seekingalpha.com/article/20333-guide-to-credit-cards-how-credit-cards-encourage-you-to-overspend

2009 Christmas Spending Plans Slightly Below 2008 Levels

2009-11-30T19:45:00.000-08:00

Posted by Lindsey Connell

Shoppers around the country say they are planning to spend an average of $417 for gifts this holiday season, down from $431 last year and $859 in 2007 according to the twenty-fourth annual survey on holiday spending from the American Research Group, Inc. The overall average planned spending is down a little over 3% from 2008 and it is the lowest level of planned spending recorded by the American Research Group since 1990 when planned spending was $399 (planned spending was $419 in 1991).

Results from the 2009 survey show that:
Those planning to shop on the Internet (42%) have surpassed those planning to shop from catalogs (36%) for the first time in the history of the survey.
Planned spending among those shopping on the Internet ($641) exceeds planned spending among those saying they will shop from catalogs ($450) for the first time.
Shoppers saying they will wait for sales say they will spend more ($439) than those saying they will pay full price for gifts ($402) for the first time.

Shoppers saying they will use the Internet to purchase gifts will spend on average $641, compared to $536 in 2008, an increase of nearly 20%.
Shoppers saying they will wait for sales will spend on average $439, compared to $382 in 2008, an increase of nearly 15%.
In telephone interviews with a random sample

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Personal Finance: Manage Your Money Better Online

2009-11-24T10:07:00.000-08:00

Posted by Ka Lee Angel Lee

By Bill Snyder

Mon, November 23, 2009 — CIO — Let's be honest. Most of us could do a better job handling our money. When times are good, we probably spend too much. When times are bad, too many of us stick our heads in the sand. Both, of course, are bad ideas. The Web has a wealth, indeed a surfeit, of tools and information to help you manage your personal finances.

To get an idea of just how much, simply take a look at Google's personal finance directory. It's overwhelming. So I've culled the list to find Web sites and tools that you'll find helpful and I find trustworthy. This is by no means "a best of the Web" list. It's too difficult to make that call, and I've avoided sites that have no free information.

click here to read more

Personal finance: Keep holiday spending under control this season

2009-11-17T09:43:00.000-08:00

Posted by: Andrew Pia

Written by: Kathy DiCenso

As the year comes to a close, spending in most households heads up -- on holiday gifts, entertainment and, depending on where you live, on already high energy costs.

It's easy to lose control. So make a plan now to minimize debt while putting money where it absolutely needs to go.

Put your current finances under a microscope

Call it a gift from you to you. If you're trying to get your finances in order, plan a visit now with a financial adviser, such as a certified financial planner professional. This meeting should extend beyond your holiday spending to setting goals for saving, investing and extinguishing debt and setting financial goals for the future. You also can examine your spending patterns and the emotional drivers behind many of our financial decisions.

Create a holiday budget

If you have credit card debt now, you don't want to elevate those numbers. Set a spending number you will not exceed and start setting aside cash in an account to cover it. When should you make the budget? As early in the year as possible, but if you haven't started shopping yet, figure out how much money you can realistically set aside and stay as close to that number as you can.

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Money Monday: The Best Personal Finance Stories from the Weekend

2009-11-16T19:11:00.000-08:00

Posted by Ka Lee Angel Lee

Here is a run down of the personal finance stories you might have missed this weekend:

In Forbes, we wrote about why long-term investors might want to think twice before investing in gold (whether the metal itself or stocks from gold mining companies), how to push for a better retirement plan at work and how to avoid costly mistakes in your Individual Retirement Account.

The New York Times, meanwhile, discussed how investors are in better shape with the Dow at 10,000 now than they were with the Dow was at 10,000 in 1999.

Los Angeles Times columnist Kathy M. Kristof (a sometimes Forbes contributor) listed steps to take before the end of the year to lower your tax bill.

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Choosing the right card

2009-11-16T00:25:00.000-08:00

By Alma Zhumagulova

There are many payment options available nowadays: cash, checks, credit and debit cards and other types of cards. Soon after their invention, credit cards became widely popular in American society – one of the top payment methods. However, after the financial crises hit the wallets of consumers, the statistics have shown that now credit cards are out and debit cards are in.
While it might seem that debit cards are very safe and convenient, there are several cons to this payment option too. On the plus side, debit cards are very easy to obtain and are equivalents of cash, i.e. they let you pay for your purchases with your own money while not having to carry vast amounts of cash. However, if your debit card information is stolen, then you have much more responsibility for unauthorized payments than with the credit card. So paying with a debit card for online transactions is not the best idea. Another drawback is that debit cards don’t help you improve your credit score while they might “help” you worsen it: overdraft and other debit card fees are reported to credit bureaus and you cannot dispute them once they are incurred. Before choosing one or another method of payment you should consider all the pros and cons of each and also the purposes that you use them for as well as your long term goals.

Sources:
http://money.cnn.com/2009/11/02/pf/debit_card_pitfalls/index.htm
http://www.mortgageloan.com/credit-versus-debit-cards-know-the-differences-2845
http://www.sayeducate.com/2009/05/13/debit-card-usage-increases-credit-card-usage-decreases/

Parking Payout

2009-11-15T19:57:00.000-08:00

Posted by Shawn Gao

When I came back from NYC, I drove with two parking violation tickets in car, which is 100 dollar each. Without knowing any parking policy, I was fined in front of parking signs, which said “No Parking Without Commercial Vehicle”, but before I parked in that place with asking one police in that area. I cannot see why the parking violation fee in NYC is so expensive by comparing with violation fee in Syracuse, which is 35 dollar each.
People in cities also claim what they happened when they got the violation tickets. For example, Mr. Robert who did not find out a violation ticket which was find 5 years ago, and received a letter from city collection agent for his added- up penalty $1,012. Only choice that he had is either write a check to payout or hire a lawyer. As that second option would have cost at least twice as much, he really had no choice at all.
What can people do? City councilman Bernard argue if collection agent could limit fines to no more than five times the original penalty. However, other officials are considering whether limiting fines would decrease the parking revenue or not.
I would hope the city will still choose to do the right thing.
1. http://www.baltimoresun.com/news/opinion/editorial/bal-ed.parking15nov15,0,1543290.story
2.http://weblogs.baltimoresun.com/news/opinion/2009/11/upcoming_editorial_baltimores.html
3.http://greatergreaterwashington.org/post.cgi?id=4065

Tips for making college more affordable

2009-11-15T18:24:00.000-08:00

Posted by Lindsey Connell

(CBS) For many parents, saving for college is a daunting task. Stephanie AuWerter, Editor of SmartMoney.com, has some tips for making college more affordable.

Between inflation, student competitiveness and school selectivity, college costs are rising - fast. Your best bet is to start saving now so that you have some money put away for your children when they're ready to start college. "In 18 years, these numbers could be $175,000 for a public school and $375,000 for a private school [for four years]," says AuWerter.

For starters, try a 529 college savings plan. "The account grows tax deferred and withdrawals taken for college costs are tax free," says AuWerter. Picking the right plan, however, can be a little tricky. AuWerter suggests looking at your home state's plan first, but if the investments aren't great or the fees are too high, look elsewhere. For a breakdown, click here to visit SmartMoney.com's article on the best and worst 529 plans.

Click here to read more

What to do to save for college

2009-11-15T18:20:00.000-08:00

Posted by Lindsey Connell

It is important to know both how to save and when to start saving for college. The first important thing to know is that the sooner you begin saving, the better. Parents should begin putting money aside for their child’s college fund the moment they are born. Also, once the child begins working, they should immediately begin putting aside a percentage of their income for college. Another helpful tip is to invest in stocks because stocks are best for your college saving portfolio. Besides this, most people saving for college think they have to have the entire amount saved, but loans and grants can bridge the gap between what you have saved and what the school costs. Even with this in mind, it is important to save as much money as possible because with the economy down and more people requesting scholarships and loans, the chance of getting one is slightly more challenging. Another tip is to consider 529 college plans but it is important to know that they can be extremely expensive. With this plan, the account grows tax deferred and withdrawals taken for college costs are tax free.

http://money.cnn.com/magazines/moneymag/money101/lesson11/

http://money.cnn.com/2005/08/10/pf/saving/willis_tips/index.htm

http://www.cbsnews.com/stories/2008/04/20/uttm/main4029687.shtml

Do not let money ruin your honey

2009-11-13T13:38:00.000-08:00

By Jameel Murray

Money issues are often cited as one of the top reasons for divorce in the United States. Recently, Shaquille O’neal and his long time wife Shaunie O’neal filed for divorce. Shaunie O’neal claimed that her former husband hid and kept money away from her while the Cleveland Cavaliers star claimed his wife mismanaged funds which included her buying a house for their personal trainer. The couple did not sign a prenuptial agreement, which would give Shaunie O’neal half of the couple’s assets. This story is yet another example of how important financial responsibility is to keeping a healthy relationship.
Managing finances as a couple is extremely important. Whether a couple both are financially well off or not, differences in the money management of a couple would cause major difficulties in a relationship. Money is one of the most sensitive subjects of any relationship. Studies have shown that the spouse that makes the more money tends to control all the financial decisions in a relationship. Many financial advisers suggest that couples have two separate checking accounts. This would allow both couples to individually manage their funds.

sources: http://www.nydailynews.com/gossip/2009/11/10/2009-11-10_shaqs_wife_shaunie_0neal_files_for_separation.html

http://www.fool.com/personal-finance/saving/how-to-guide-manage-money-with-your-mate.aspx

http://www.msnbc.msn.com/id/20108870/ns/today_technology_and_money-money_matters/

Asian Real Estate Investment Market Buoyed in 3Q

2009-11-13T06:08:00.000-08:00

Posted By Shawn Gao

The Asian real estate investment market continued to gain momentum in the 3Q of 2009 as capital values generally stabilised, sentiment improved and the bid-ask spread narrowed, particularly for quality yield-accretive assets in prime locations.

Direct real estate investment in Asia jumped 25 percent quarter-on-quarter to an estimated US$9.1bn. Hong Kong accounted for 36 percent of the total volume followed by China, Korea and Taiwan. However, overall transaction volume remained low in the first nine months of 2009, falling by 49 percent year-on-year according to CB Richard Ellis’ 3Q 2009 Asia Investment MarketView report.

The office sector attracted US$4.7bn of investment during the quarter, or 52 percent of the total flow of capital. Residential properties accounted for 16 percent, with the retail sector comprising 13 percent of the total volume. Despite the relatively low transaction volume in the hospitality sector, a total of six hotel transactions worth a combined total of US$300m were concluded during the quarter, surpassing within three months the five transactions recorded in the first six months of 2009. Transactions involving industrial properties also showed signs of improvement with a total of 24 deals concluded between July to September, a similar figure to the total number of deals completed in the first six months of the year.
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There is hope

2009-11-12T19:38:00.000-08:00

By Jonathan Tse

On the week of November 7th, there was an all time low of 502,000 first-time claims for unemployment insurance since the week of January 3rd. Some believe that this could be a sign that the problem of joblessness is beginning to be solved and that unemployment rates may begin to decline. This number of first-time job claims was much lower than expected since the estimate for this week was 510,000. It is believed that this is a sign that companies are cutting jobs at a slower pace than at the beginning of the year, but economists say that joblessness rates are expected to rise until they peak during mid-2010. The reason for this is that analysts say that claims must fall to approximately 450,000 or below to indicate that the economy is adding jobs. The concern that there will be a jobless recovery still worries many, but the government is working to improve the situation. President Obama announced that he plans to hold a new jobs forum and economic growth in December. Also, last week President Obama signed a bill that would provide 20 more weeks of jobless benefits to the unemployed. This plan will be funded by extending the long-standing unemployment tax on employers to 2011.

http://money.cnn.com/2009/11/12/news/economy/initial_claims/index.htm
http://www.reuters.com/article/ousivMolt/idUSN0243717320091112
http://www.nytimes.com/2009/11/13/business/economy/13econ.html?_r=1&ref=business

How to Budget Money During College

2009-11-12T11:50:00.000-08:00

Posted By,
Meredith Anderson

College tuition is expensive enough these days. When we budget our money we might not realize how much er spend on our daily expenses. Rent, eating out, books, clothes, alcohol, and daily coffee runs, are expenses that we might not always budget for but in reality probably spend the most on.

There are a couple things that will help reduce our expenses by a lot. Reducing your meal plan to only purchasing a realistic amount is a good start. Most of us have double the meals we actually use a week. Right there is hundreds of dollars a month we can save. Buying used books is not as fancy as brand new ones, however each semester you can save a couple hundred on books that are already highlighted, and you probably won't look at ever again! Of course then there are the simple things that can save us over time. Making our own snacks, coffee, and evening reusing notebooks will add up after four years.

Its important to stay informed about your finances. Try to use cash as much as possible and make simple lists and spread sheets to keep track of your expenses. It is true that not everything we learn in college will matter after graduation, however the way you manage your money will be a life time lesson to remember.

Sources:
http://collegelife.about.com/od/moneyfinances/qt/savingmoney5.htm
http://www.msnbc.msn.com/id/14448831/
http://www.bankrate.com/brm/news/sav/20000814b.asp

Personal Finance: Time to get serious about Roth IRAs

2009-11-12T11:19:00.000-08:00

For so many years, people have planned for retirement thinking that they would pay lower taxes than they paid while working. However, it’s no longer a sure thing.

Many people have saved money toward their retirement by putting it into tax deferred accounts. They will have to pay taxes on that money as they take withdrawals. Approximately 85 percent of Social Security benefits will be taxed for many of these tax deferred savers.

In 2001, the federal deficit was out of control and tax cuts were set by President Bush that are set to expire in 2010. This creates a chance that tax rates will be much higher than they were over the last decade.

Roth IRAs were created in 1997 tax legislation. Roth IRAs allow workers to put away money that could build tax-free for retirement. Contributions to Roth IRAs do not qualify for tax deductions, but the money that is withdrawn years later, in retirement, is not taxed. That is especially beneficial to younger savers whose accounts have many years to earn interest, dividends and gains that can compound over time. The law that created Roth IRAs also included provisions for allowing taxpayers to convert their existing tax-deferred IRAs into Roths.

But Roth IRAs have had their limits, too. Only taxpayers who earn less than $105,000 ($166,000 for joint filers) in 2009 can contribute the maximum amount ($5,000 per person, with a $1,000 additional catch up contribution for folks 50 or older) to a Roth IRA. And only people earning less than $100,000, single or married filing jointly, can convert their traditional IRAs to Roths.

In 2010, some of those rules will change. That $100,000 limit disappears, so folks with higher incomes can convert traditional IRAs to Roth IRAs. Deciding whether to do that, and how to go about it, is going to be difficult and complex. Here are some considerations.

Source 1

Source 2

Source 3

Posted By: Amy Nightingale

Celebrities are in Debt Too

2009-11-12T08:50:00.000-08:00

In our current economy, we all seem to focus on the common persons’ financial issues. Yet we should keep in mind that celebrities get hit just as hard, maybe even harder, than us. They are human too and have the same financial issues as others whether they are bogged down from the stock market decline or are obsessed with purchasing items that they know they can’t afford. Anyone can get wrapped up in a specific lifestyle and lose track of their budgets and overall financing. For example, Mike Tyson was commonly known to make outrageous purchases which put him into some major debt over the years. His most news worthy purchase was a set of tigers! Apparently he was paying about $500,000 per month to keep up his lavish lifestyle, even though he couldn’t afford it. He was a person who spent money on whatever he wanted. Another celebrity who was financially hurting a few years ago is Donald Trump. Even though this man owned multiple hotels, plazas and casinos his own personal liabilities came to $900 million alone. About a decade ago, Trump’s three casinos and Plaza Hotel were pushed into bankruptcy. He also lost his yacht and Trump shuttle, and lost his mansion and $14 million in his divorce. It goes to show that the common person is not the only one with financial issues.

References:
http://moneycentral.msn.com/content/SavingandDebt/P75072.asp
http://www.gotdebt.net/85-even-celebrities-sink-deep-in-debt.html
http://www.nationalpayday.com/education/news/19-celeb-loan.asp

By: Kelsey Hoffman

Investing by burgers and beer

2009-11-11T23:46:00.000-08:00

By Beth Kowitt, reporter
November 3, 2009
Posted by Alma Zhumgulova

NEW YORK (Fortune) -- You decide you're going to have some friends over to watch a little NASCAR. You hit the supermarket and buy some burgers, hot dogs and a 12-pack. You get home, fire up the grill, turn on the tube and let your dog out.

What does all this have to do with investing?

Steaks, beer, cable, car racing, pets -- those are all businesses that Intrepid Capital (ICMBX) fund manager Mark Travis owns stock in. They don't exactly fit the traditional definition of consumer staples, but even in an economic downturn, he says they're not going away.

Click here to read more

How to invest $10,000 right now

2009-11-11T10:35:00.000-08:00

By Harry Domash

Posted by Lily Mei

You're not rich. You own a few mutual funds in a 401k or an individual retirement account. And you're ready to take the next step: to buy a few stocks with $10,000 or so sitting in certificates of deposit or languishing in a bank account.

But how do you get started?

Let's begin by admitting this much: All of us, no matter how good we are at stock picking, are going to pick an occasional loser. That's why diversification is important. How many stocks must you own? Opinions vary, but dividing your $10,000 into 10 chunks of $1,000 each is probably sufficient. With many discount brokers charging less than $10 a trade, the commissions won't be significant.

However, different folks have different investment needs. I'll describe three strategies, including links to screens to see today's picks. Feel free to mix and match the stocks turned up by the screens or stick with the strategy that best suits your needs.

I used free online tools to build these three screens. The first two use StockScreen123, arguably the most capable free screening tool available on the Web. The third uses the Finviz.com screener, which I find easier to use but not as capable.

As tools, screens work best if rebalanced every six months. Rebalancing means that after six months, you'd rerun the screen and update the portfolio based on the new screen results.

Click here to read more

Increase in Roth IRA Conversions

2009-11-10T18:03:00.000-08:00

Posted By, Meredith Anderson

In retirement, your paycheck might go away, but taxes won't.
Still your tax bill can be hard to predict. To have some control over how much you pay the government each year, you should have both taxable and non-taxable accounts from which to draw your retirement income.
Imagine it this way. Perhaps early in retirement you choose to continue to work part time and supplement your income from retirement savings accounts. The combined income may put you into a higher tax bracket. However, if you take some money from a Roth IRA that year, because withdrawals are nontaxable, it could help keep you in the lower bracket.
In later years if you're not working and hitting the next highest tax bracket isn't an issue, you can pull more money from a traditional IRA or 401(k) account.
This type of tax diversification is one of the primary reasons people choose to put some of their money in a Roth IRA, or convert to such an account.

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GETTING PERSONAL: Wealth Transfers for Family Businesses

2009-11-10T15:55:00.000-08:00

NEW YORK (Dow Jones)--The same weak economy that has stymied some family businesses' plans to sell their operations makes conditions ideal for transferring ownership within the clan.

"With business valuations depressed and interest rates near historic lows, owners can use wealth-planning strategies, such as trusts and other techniques, to pass bigger slices of their businesses to their heirs more cost-efficiently," says Joseph Fahey, the national director of business planning services for Wells Fargo & Co.'s Private Bank.

This can be achieved through a combination of tax-free gifting and sale techniques that freeze the value of a business at today's trough in the business cycle, advisers say.

Cornelia Spring, Northeast Head of Wealth Advisory for J.P. Morgan's Private Wealth Management, says she advises business owners on setting up short-term grantor retained annuity trusts, or GRATs, which are used to pass assets to heirs free of gift and estate tax. If shares held in the trust appreciate at a faster rate than a special Internal Revenue Service rate--which is 3.2% in November--then the upside value goes to the heirs at the trust's maturity.

"It's a way to transfer ownership to the next generation. There is no limit on how much or how often you do this, so it can be a powerful tool if repeated multiple times," she says.

Click here to read more.

Posted by Kelsey Hoffman

Why Most Twentysomethings Don't Understand Personal Finance

2009-11-10T11:23:00.000-08:00

By: MIA SAINI (OC), HARBUS Board of Directors & Section Representative

Posted: 11/9/09

Planning a wedding? Worried about how to pay off your student loans? Debating if you want to buy or rent an apartment next year after graduation? These are all decisions that can be made if one has a command of his or her personal finances and financial goals, both in the short-term and long-term.

As a personal finance junkie, I am often asked how I developed my knowledge on personal finance when I never had formal training during all my years of being schooled or even while I was working at Goldman Sachs. My knowledge of personal finance was built by various encounters with really smart financial experts I met after I graduated from college and was about to enter the "real world." Because there were very few fun resources out there to teach me this stuff, I found learning the information to be very boring but nevertheless extremely useful to how I planned to live my one wild and precious life.

When I found out one of our classmates, Alexa von Tobel, decided to take a leave of absence from HBS to pursue her dream of launching a website to make personal finance fun and exciting, I was thrilled for future generations of smart twentysomethings to have the ability to finally develop a mastery over their finances.

Right before Alexa graduated from Harvard College in 2006, she was sitting around a table with a group of friends, discussing how ridiculous it was she had never had a single class on personal finance. Ironically, Alexa was going to work as a trader at a hedge fund and had just deferred Harvard Business School for two years. Similar to me, Alexa realized the dearth of her personal finance knowledge was extremely apparent. After scouring various resources, she kept finding herself dissatisfied with what was readily available. She found that most personal finance education tools rarely began with the basics and that none spoke directly to her.

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Posted By: Amy Nightingale

Debt Management

2009-11-10T10:56:00.000-08:00

By Quang Nguyen

Many people say that the average Americans are loaded with the credit card debts. According to CardWeb.com, each American household has at least $10,700 credit card debt on average. However, having debts on your balance sheet not specifically a bad thing.

If you borrow for a home or college tuition, it usually makes good sense. But before you borrow money, just make sure that you can afford to pay back and try to find the best rates. Besides this, in common sense, most of the debts are bad. So always rely on the credit card to pay for things you don’t really need is not the right thing to do. So how to make your debts under control?

First of all, you can get a handle on your spending, which means make sure you think carefully before any purchase --- Do you really need the product or service? Can you afford it?

Secondly, always pay off your highest interest rate debts first. The key to get out of debt in an efficient way is to pay off the debts which charge the most interest. Once the highest debt is paid down, move to the second highest debt, and so on. In addition to this, watch where you borrow is also an important factor to make your debt under control.

Finally, there is one more thing to keep in mind --- get help as soon as you need it. If you think you are not capable to pay off your debt on time. You should start to seek for help immediately before it turns to be a financial disaster. There are many reputable debts counseling agencies may assist you with mange your debts and improve your financial situation. So don't feel hesitate to get advices from these professional agencies.

References:
http://www.mint.com/blog/train-wreck/debt-management-the-bike-that-crashed-me-financially/
http://www.cgmahq.org/Assistance/Programs/Deb.htm
http://cardweb.com

Make money in 2010: The economy

2009-11-10T10:53:00.001-08:00

Posted by Quang Nguyen

You may not feel as if we're out of the woods yet. But the consensus among the 50 leading economists regularly surveyed by the Blue Chip Economic Indicators is that the recession is indeed over, and from a technical standpoint at least, probably ended in the summer.

You're right, though, to feel less than sanguine about this pronouncement. The majority of those economists put growth at just 2.5% next year, and several believed 1.7% was closer to the mark -- well below the U.S. long-term average of 3%.

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Making College Affordable

2009-11-10T05:53:00.000-08:00

By Linda Stern

WASHINGTON (Reuters) - The college application process that dominates senior year for many high school students is always stressful, but this year it's even worse.

A report from the College Board shows that college costs continue to rise far faster than parents' salaries: In-state public schools are pushing $20,000 a year and it costs double that to attend the average private college.

At the same time, college savings account balances have fallen, other costs have risen as many parents face unemployment, debt problems and other financial challenges. And more students than ever are applying for college, providing increased competition for the most coveted seats and scholarship programs.

Feel discouraged yet? Don't be. Instead, remember that there are many, many paths to happiness and success that don't run through Harvard yard or Yale's central campus or even straight through any four-year program.

Go out and talk to folks in their mid 20s, and you'll discover many, many people in great jobs and happy relationships who transferred into (and out of) those top name brand schools, took pre-college breaks, started at community colleges, finished at their state schools or took myriad other routes to their current situations.

So avoid worrying and avoid the stress-spewing mother (you know who she is) who waits for you in the parking lot at all of the soccer games wanting to know how your kid is doing on his apps.

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Could the Supreme Court Boost Mutual Fund Fees?

2009-11-09T23:26:00.000-08:00

Posted by Jonathan Tse

By David Bogoslaw

Investors in mutual funds may need to brace themselves for higher fees in the future if a case under review by the U.S. Supreme Court results in a substantially different legal standard for judging whether or not fund advisory fees are excessive. On Nov. 2, the Supreme Court heard oral arguments in Jones v. Harris Associates LP, in which the plaintiffs—individual shareholders in the Oakmark Funds—claim the mutual fund adviser, Harris Associates, violated its fiduciary duty by charging them fees that were double those the adviser charged institutional investors.

What complicates the case is the fact that Chief Judge Frank Easterbrook of the Seventh Circuit Court of Appeals, in ruling for the defendants, rejected Gartenberg v. Merrill Lynch Asset Management, a decision by the Second Circuit Court of Appeals in New York in 1982 that has served as the legal standard by which all excessive-fees cases have been evaluated for nearly 30 years.

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Strategy on Buying Health Insurance

2009-11-06T21:47:00.000-08:00

By Quang Nguyen

Insurance is what most people planning to get when living in the United States. Since the medical cost is too high, it is important to get the right insurance. Especially with the current economy, with the increasing amount in medical cost, Americans should look for plans best fit for themselves and prevent from looking for ones with lowest premiums. Choose the plan that’s most important to you.

You can begin with the group plans from your employers. Group plans are usually a lot cheaper than individual plans. I suggest you should get insurance and health benefits from your employer even if they might pay you less than someone else that do not offer benefits.

There are 3 main types of insurance plans you can select. The first one is health maintenance organization (HMO). The second one is preferred provider organization (PPO). The last option is high deductible health plan. Fee-for-service still exists, but the use of it has been decreasing.

Choices are limited if you choose HMO, because you can go to doctors that are associated with HMO’s network. The advantages are that you don’t have to pay deductible and co-payment, and it is a low-cost option.
For PPO you can go to the doctors without its network and only pay a small portion of co-payments. High deducible health plan allows deductible to be higher. The plan is connected with a health savings account. You can save pretax amount in the savings account and withdraw it when you need to pay for deductibles.

In conclusion, it is important to find the insurance plan that fits you. Different people have different needs. A single mom might have a different insurance plan than a senior citizen. You should talk to your doctors before purchasing an insurance plan in order to make sure it covers your needs.

References:
Source 1
Source 2
Source 3

Be a smarter charitable giver

2009-11-06T21:43:00.000-08:00

Posted by Quang Nguyen

When it comes to charitable giving, some well-intentioned moves can backfire.

Here's how to make sure your donations have the biggest possible impact, whether you're giving on a large scale or a small one.

Don't be swayed by a pretty face. You like to think you give money based on the worthiness of a cause, but less elevated emotions are often involved. According to a 2005 study led by economist John List at the University of Chicago, people are far more likely to give when a fundraiser is an attractive woman rather than a plain Jane.

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Where is the economy going?

2009-11-06T20:31:00.001-08:00

By Jonathan Tse

We are now in the worst recession since the Great Depression. Although the economy seems to be recovering, increasing at a 3.5% rate in the past July-September quarter, the unemployment rate continues to rise. For the first time since 1983, the unemployment rate has hit double digits. In October, the unemployment rate was 10.2, representing almost 16 million jobless Americans. October was the 22nd consecutive month of rising unemployment, which is the longest record of growing joblessness in the past 70 years. The unemployment rate is expected increase beyond 10.5 percent because employers are still reluctant to hire. Demand for oil and other commodities have also been on a decrease as consumers are still not confident in the market and are not willing to spend. Oil prices have dropped 2.8% in October during the same time payrolls for workers dropped $190,000. President Obama signed a new unemployment insurance bill last Friday that not only aids homeowners and the jobless, but also aids businesses. This bill allows businesses to recognize their losses from 2008-2009 and to apply them to any of the past 5 years, before 2008, so they are able to get tax refunds on the taxes they paid in those five years. The only catches are that companies who have accepted TARP money are not eligible and tax refunds for the fifth year are reduced by 50%. This will benefit companies who have suffered the most during the recession.

http://www.google.com/hostednews/ap/article/ALeqM5gNiyJ905Ho0Ur96V2TQhsBX19lGwD9BQ6PG00
http://www.bloomberg.com/apps/news?pid=20601087&sid=a_GNhLXtDs0M&pos=2
http://money.cnn.com/2009/11/05/news/economy/tax_breaks_for_business/index.htm?postversion=2009110611

Daycare is A Major Cost for Working Parents

2009-11-06T11:26:00.001-08:00

By: Sara Sindelar

When people start up a job they don’t always factor in the cost of childcare for the future. When you have both parents working and their children are under school age, daycare is a must. If it is a nanny, which can get very expensive, a public or private day care or a family member who will help out you need an option. Daycare is a must for working parents to keep their jobs. With rising fees like licensing and inspections that are being proposed are causing fear among parents. The issue of daycare varies across the nation. Some states are fighting for the best option for the residents while others are raising fees and getting strict on laws.

Daycare today is growing in cost averaging from $250 to $1250 per month. Some companies offer daycare but costs are still high. When looking for a job daycre may be something you think about in your compensation package. Another way to discount your daycare costs is to see if your employer offers a tax-free spending account for childcare like most offer a health care tax free spending account. Though this is not something recent graduates may be looking into in a job it is something to think about for the near future.

http://www.washingtoncitypaper.com/blogs/citydesk/2009/11/05/daycare-fight-continues-union-files-new-lawsuit/

http://www.kgun9.com/Global/story.asp?S=11404009

http://www.babycenter.com/0_daycare-centers-how-much-do-they-cost_6056.bc

The downside of debit cards

2009-11-06T10:54:00.000-08:00

Posted By: Sara Sindelar

Rising rates and soaring credit-card fees mean many are switching to debit cards. But there are risks to using debit cards as well.

By Gerri Willis, CNN personal finance editor

November 2, 2009: 3:40 AM ET

NEW YORK (CNN) -- Out: credit cards. In: debit cards. As more and more Americans shun traditional credit cards, they're turning to debit cards. But you should know there are downsides to debit cards too.

1. Security

This can be a big issue -- You know that if your credit card is stolen, you're not responsible for unauthorized charges over $50. But if your debit-card number is stolen, you have fewer protections. First off, you have to report any misuse within two days to get the same $50 limited liability. If you miss that deadline but you report the loss or misuse within two months, you could be on the hook for up to $500. After 60 days, your liability is unlimited. Card issuers do have different policies though-so make sure you go through the fine print says Curtis Arnold of cardratings.com.

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How to Save on Health Insurance

2009-11-05T11:20:00.000-08:00

By: Nicole Nelson

With open enrollment for many plans starting soon, it is important to know how to chose and maximize your health insurance plan. This may mean changing such things as deductibles, co-pays or co-insurance. It could also mean that you should start buying your own insurance, or switch to your spouse’s plan. In determining whether you should sign up for a high or low deductible plan, you should consider how many times you use your coverage during the year. Usually higher deductibles have lower co-pays and lower deductibles have higher co-pays. Therefore, if you are financially stable and a relatively healthy person that doesn’t visit the doctors that often, a lower deductible plan may be a better idea. Also, flexible spending accounts have become easier to obtain and more beneficial. Some employers may also let you have until March of the following year to use these funds. Flexible spending accounts are a good idea because these funds are taken from your pay pre-tax, saving you tax dollars. Also, in determining health care one should look into an HSA (health savings account). These are usually only offered if you have a high-deductible plan. Not all high deductible plans offer an HSA though. There are many options in choosing a health insurance plan. Therefore, all options should be considered in finding the best option for you.

source one

source two

source three

The Cost of Ending A Marriage

2009-11-05T11:03:00.000-08:00

By, Meredith Anderson

Many wouldn't usually think about divorce as a business, however the shocking truth is that divorce is $28 million dollar a year-industry in the United States. The average divorce is about $20,000. When we think of divorce we think of how sad and emotional it is for everyone involved. We tend not to think about the finical price tag on happiness.

When a relationship is bad and you want to get out of it to be happy, its unfortunate that money can be a reason that keeps you in it. Its ironic how much money can break up the marriage in the first place but keep people in the marriage because the cost of divorce is more then they can afford.

So how does it get so expensive? In most divorce cases lawyers and other legal expenses are required. Lawyers are extremely expensive and many times two are needed. We tend to forget that with divorce comes separate living situations, so many times a new home must be obtained. Finally one of the hardest and most expensive parts of divorce is when children are involved. Child support, alimony, and other expenses will add up for years to come. You can leave your spouse but you have legal responsibilities to your children.

Sources:

http://money.cnn.com/2009/10/30/pf/marrying_finances.moneymag/?postversion=2009103004

http://www.bankrate.com/brm/news/advice/19990903a.asp

http://www.nytimes.com/2009/10/24/your-money/24money.html?em

Mo' Money Mo' Problems for Antoine

2009-11-05T10:22:00.000-08:00

By Jameel Murray

Besides reading of Nicholas Cage squandering his money, there have been numerous reports of celebrities going broke. One recent report has been the unfortunate story of former NBA star Antoine Walker. According to the Boston Globe, Antoine Walker owes over $4million dollars to his creditors. Walker faces up to four years in prison if he is convicted on several felony charges for writing bad checks. Over Walker’s career in the NBA, he earned over $110 million dollars including several endorsement deals. Walker is yet another example of a celebrity who did not manage his money correctly.

According to several sources, Walker was a big spender. He purchased a suit for each game, gambled hundreds of thousands of dollars, and supported 70 friends and relatives. Some also say that Walker’s driveway reflected an auto showroom, filled with Bentleys and other luxurious cars. Walker also picked up the tab on several team dinners, increasing the former All Star’s debt by hundreds of thousands of dollars. The reason for Walker’s situation basically is a consequence of Walker not investing his money wisely. Had Walker taken a course or two on financial planning, he may have been able to live the rest of his life out of debt. Because he is extremely out of shape, he may never get a chance to play on an NBA team to pay off some of his debt. Walker’s only other option is to take his game overseas.

Sources: http://www.sportingnews.com/blog/the_sporting_blog/entry/view/40285/antoine_walker_picked_the_wrong_place_to_do_too_much_the_real_world

http://www.suntimes.com/sports/basketball/1851241,antoine-walker-nba-broke-28.article

http://dealbreaker.com/2009/10/aw.php

Poor Nicholas Cage. Literally.

2009-11-04T16:36:00.000-08:00

It turns out that Celebrities are just like the rest of us- they hate paying taxes just like all the rest of us do. The latest celeb to fall victim to a public personal-finance debacle is Nicholas Cage. According to sources, Cage owes about $6million in unpaid taxes from 2007 to the IRS. He owes more than $350,000 for back taxes from 2002-2004.

Cage's financial troubles are due to speculative real estate investments and accounting techniques. He is now involved in a $20 million dollar lawsuit. He is being forced to sell major assets and investments at a signicantly lower price which he will take as a loss. Cage is faced with huge tax liabilities because of one of his accountant's incomeptence, misrepresentations, and recklessness. His biggest mistake was a failing to file his client's income taxes.

In order to rake up some cash to pay all of his taxes, Cage is being forced to put the following properties up for sale:

His Bel Air mansion for about $10 million.

His Las Vegas digs, also for roughly $10 million.

A $3.55 million mansion in New Orleans' Garden District. Described as "haunted."

A 24,000-square-foot $12 million mansion in Rhode Island.

Source One

Source Two

Source Three

Posted By: Amy Nightingale

Marrying finances - for the second time

2009-11-03T10:33:00.000-08:00

Posted by: Nicole Nelson

Written by: Karen Cheney

When Kimerby and Tony Simmons were married last month at a vineyard in the foothills outside Atlanta, they participated in the African-American tradition of jumping over a broom - an act symbolizing their entrance into a new phase of life together.

For Tony, 41, this was the second time making such a leap, his previous marriage having ended in divorce. That breakup "put a big dent in my finances," says the software sales executive. "I thought there was no way I was getting into another relationship."

But then, on a flight from Chicago to Atlanta, he met Kimberly. And, soon, he fell in love. "It was the flight that changed our lives," says Kimberly, 39, for whom this is a first marriage.

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The downside of debit cards

2009-11-03T08:45:00.000-08:00

By Gerri Willis
Posted by Jameel Murray

NEW YORK (CNN) -- Out: credit cards. In: debit cards. As more and more Americans shun traditional credit cards, they're turning to debit cards. But you should know there are downsides to debit cards too.

1. Security

This can be a big issue -- You know that if your credit card is stolen, you're not responsible for unauthorized charges over $50. But if your debit-card number is stolen, you have fewer protections. First off, you have to report any misuse within two days to get the same $50 limited liability. If you miss that deadline but you report the loss or misuse within two months, you could be on the hook for up to $500. After 60 days, your liability is unlimited. Card issuers do have different policies though-so make sure you go through the fine print says Curtis Arnold of cardratings.com.

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Senior's Benefits of 're-tiring'

2009-11-03T08:00:00.000-08:00

Posted By, Meredith Anderson

People who began collecting Social Security at age 62 and restart their retirement benefits at 70 would get about 76% more a month. The catch is that they must repay what they had already received.

By Kathy M. Kristof Personal Finance
November 1, 2009

The Social Security Administration recently announced that retirees would get no cost-of-living adjustments this year -- and maybe not even next year -- because the inflation measure it uses to determine them has declined for the first time in more than three decades.

Congress and the administration are working on legislation to provide seniors a $250 consolation prize, a one-time check that would amount to about 2% of the average senior's benefits. But retirees may be able to do far better than that by taking advantage of a loophole in the Social Security law. Using this loophole, which allows you to "restart" your retirement benefits years after you've retired, can be risky. But if you're healthy, have some savings and are under age 70, it may well pay off in spades.

Someone who originally retired at age 62 and "re-retires" at 70, for example, would boost monthly benefit payments by 76%, said Brett Horowitz, a certified financial planner with Evensky & Katz in Coral Gables, Fla.

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How to survive this holiday season

2009-11-02T18:49:00.000-08:00

By Alma Zhumagulova

Results of numerous surveys conducted on this year’s holiday spending plans show that this year many of the respondents intend to spend less than last year. Everyone is looking for large sales discounts and coupons (at least 20%), free deliveries and competitive pricing. In response to that many retailers are already having sales and discounts, for example, Wal-Mart and Target are decreasing their prices on toys and other gifts.
The top gifts of this holiday season are clothes and small but smart electronics such as notebooks, MP3 players, e-Books etc. Gift cards are promising to be one of the most popular gifts of this season averaging at $35 per card as found by Deloitte’s 24th Annual Holiday Survey. The top store destinations of this season are department stores, grocery stores, internet electronics stores, and candy and sweets stores.
During these difficult times many of us are struggling to make presents to all the loved ones while not overspending when the money is already tight. The right decision is to develop and stick to a certain holiday budget and a gift list. To avoid excessiveness one should set aside some amount of cash for holiday gifts so that one would always remember that the budget is restricted when shopping for gifts. Starting the holiday shopping early on is another good tactic; it gives more time to comparison shop and helps avoid last minute rushes. Now is a good time to get more creative with gifts: make them yourself, arrange fun gift exchanges with family members and friends, organize parties-as-gifts, and make group gifts to a family. Lastly, if you are out of options, give gift certificates for smaller amounts that although being small give the recipients a choice to get what they want.

Sources:
http://www.nacsonline.com/NACS/News/Daily/Pages/ND1102094.aspx
http://abcnews.go.com/Entertainment/WireStory?id=8948891&page=2
http://www.minyanville.com/articles/shopping-retail-consumer-walmart-sales-target-hasbro-mattel-limited-clothing-toys-holiday-cadbury-books-clothes-amazon-apple-electronics/index/a/25242
http://www.alvaradopost.com/articles/2009/10/29/community/doc4ae9f02f096bb757915954.txt

10 Tips to Save on Holiday Gifts

2009-11-02T16:40:00.000-08:00

Given the shaky job market, holiday budgets are tighter this year. According to a survey by PriceGrabber.com, 53 percent of consumers are planning to spend less on gifts. Retailers are anticipating greater demands during the holiday season because of higher-than-expected Halloween purchases this year, says Ken Burke, the founder of MarketLive, which does E-commerce research. Already 30 percent of those surveyed have begun their holiday shopping, with 22 percent having started in October. So to avoid the winding lines and sold-out merchandise, here are 10 tips to save you time and money as you kick off your holiday shopping:

1. Comparison-shop online
Left with excess inventory last year, retailers are going to sell fewer items in stores this holiday season. As a result, more people are going to go online for research, price comparison, and convenient shopping, says Burke. In PriceGrabber.com's survey, 70 percent of consumers said they're planning to research and comparison-shop online for the holidays. One way to do that is through sites like ComparisonShopping.com, which aggregates product search results from the 10 leading websites for price-comparison shopping, including BizRate, PriceGrabber.com, NexTag, and Shopzilla. These sites have vendor prices, reviews of vendors and items, and product descriptions. Also, visit FreeShipping.org, which provides free shipping coupon codes for more than 1,710 stores. Other websites have threshold free shipping, where shipping doesn't cost anything after a minimum purchase; Amazon.com, for example, provides free shipping for members whose purchases are over $25.

Click here to read more.

Posted by Kelsey Hoffman

Personal Finance: Investing by gender

2009-11-02T16:29:00.000-08:00

Men are from risk; women are from caution

SOUTH BURLINGTON — Women and men have different investment habits: Women tend to be more conservative while men are more willing to risk their savings with an aggressive portfolio, a longtime financial adviser said.

“Women, as a whole, are conditioned to seek safety and avoid risks,” said Heidi Clute, owner of Clute Wealth Management in South Burlington. “It’s part of our upbringing.”

“Most women tend to be a lot more conservative in asset allocation strategies,” said Clute, who has been advising clients on financial matters for 29 years. “Women tend to be more defensive in where they invest their money. And men tend to be more aggressive.”

Women on average live longer than men — meaning savings must be stretched for additional years. Women typically earn less than their male counterparts, prompting them to invest more conservatively, Clute said.

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Posted by: Amy Nightingale

Pay less to stay warm this winter

2009-11-02T11:34:00.000-08:00

Posted by Jonathan Tse

Money Magazine) -- This year you can score a rare recession-induced break on your energy bill: The combination of a weak economy and a production boom has dropped the cost of heating with natural gas to a six-year low and is keeping a lid on other heat sources as well. But you can still save more. These questions will help you figure out the most cost-effective ways to keep out the cold.

How much will I pay for heat this winter?

If you use natural gas, you'll spend $434 to $1,044 to keep your home toasty, according to the Energy Information Administration. That is 3% to 22% less than last year. You'll also catch a break if you use propane, which is a byproduct of natural gas, since propane prices are forecast to fall 12%. If you heat with oil, you won't be so lucky: Depending on where you live, you'll spend $912 to $1,722, or 0.3% to 18% more. Electric heat costs will range from $792 in the West to $1,526 in the Northeast.

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How to Avoid Dumb Investing Mistakes

2009-11-02T10:36:00.000-08:00

By: Lily Mei

Due to recent economic downturn, it has affect many investors decision to moved their money into cash or bonds this time around. To avoid any as I call it “dumb” investing mistakes, the best remedy as Christopher Long, a certified financial planner recommends is to set up a “play” account where you can trade the market to your heart’s content without harming your long-term investments.

He also states to transfer at least 5% of your total assets to an Independent Retirement Account. The reason behind transferring to an IRA account is that with this account any gains you incur buying and selling securities will be shielded from taxes until you withdraw the proceeds, hopefully after you have already retired.

Long also mentions that the only downside with this account is that in the case where you do incur losses, you won’t be able to use them to offset gains in other accounts, as you would be able to do so if you held securities in a taxable account.

Setting up the “play” IRA accounts seems to work particularly well for couples. Long often says that he “encounter husbands who are new and market junkies and incorrigible traders, but whose wives are anxious to take a much more hands-off approach to investing.” With this play account, it gives the husband the freedom to trade and their wife the comfort that in the worst-case scenario, the damage will be limited.

Sources
http://www.moneymorning.com/2009/10/09/stock-pickers-market/
http://portfolio-management.suite101.com/article.cfm/common_investment_mistakes_to_avoid
http://seekingalpha.com/article/54628-10-investment-mistakes-to-avoid

Personal Finance: Credit card companies pump up rates, fees

2009-11-02T00:01:00.000-08:00

By Claudia Buck
Posted by Alma Zhumagulova

If you've got a credit card, you've likely been zinged already.

Higher interest rate? Yep. Lower credit limit? That, too. New fees for late payments? Absolutely.

In the months since Congress clamped down on what it deemed as "unfair and deceptive" credit card practices, dozens of credit card companies have been busily hiking fees, rates and penalties in anticipation of stricter rules.

In the last few weeks alone, Bank of America tacked annual fees of $29 to $99 onto some cards and Citibank jumped some annual interest rates to nearly 30 percent.

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Barter for the Services You Need

2009-11-01T20:03:00.001-08:00

By: Jessie Bruyn

Camille Tominaro's vacation home near Hunter Mountain in New York could use some new floors and a good paint job, but she doesn't have the money to hire a professional to do the work.

So, to get the job done, she is using another form of currency: her house. In exchange for getting the home improvements done, Ms. Tominaro is offering painters and carpenters a free stay in the vacation home.

Cash-strapped consumers are increasingly bartering to get needed products and services. If you're considering bartering, here are a few things you should know:

Web sites that allow people to post ads for barters, such as Craigslist.org and U-Exchange.com, can help you track down someone who provides a service or product that you want and needs what you have. You can place an ad detailing what you're looking for and what you have to offer in return. You also can respond to an ad you think would be a good fit.

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Donate Your Stuffs

2009-11-01T19:09:00.000-08:00

posted by Shawn Gao
When we entered supermarkets, like Wegmans and Price Chopper, in the account desk, there were sign that show we donate money for every time we shop there. These signs are trying to let us know that many hungers need our help. And there maybe something we can do for them. For example, we can donate something for them, In Syracuse, there are many places accept people’s donations. At the end of every term, students can donate their needless books and clothes in the students’ centers. Also, there is a donation center in Erie Blvd where may accept a variety of things that people don't want to have. During economy recession, many people are hungry to death. For people who don't desire money and food so much can do something to help out the poor. After the Halloween, people may have a great amount of candy left. For these candies, people can donate these candies in the original wrapper to those donation centers. Before donations, remember to call the centers to make sure whether they accept those candies or not. People can do something good for the poor with some institutions. Ronald MacDonald House Charities, which includes a program that provides housing for parents of children staying in nearby hospitals. Some people may need help from others. Let us donate something.
1.http://online.wsj.com/article/SB125702566786620951.html
2.http://online.wsj.com/article/SB125694047773419513.html
3.http://online.wsj.com/article/SB125702415622320915.html

Can You Save $500 In Time For The Holidays?

2009-11-01T18:42:00.000-08:00

Posted by: Jessie Bruyn

You've seen the green-and-red peeking out between the Halloween decorations and you're already starting to fret. There's a little over seven weeks before the December holidays, and you haven't saved a penny for gifts or entertaining.

If racking up more debt with your credit cards doesn't sound like much of a way to celebrate, the solution may be an austerity plan. For instance, if you slash $65 a week from your regular spending, you could have $500 to spend on the holidays.

Sound like a possibility?

Money management experts say such drastic measures are not the best way to plan for the holidays. "Do you want to go through the process of self-deprivation in order to make this work?" asked Bruce McClary, a financial educator and spokesman for Clearpoint Credit Counseling Solutions. It would be far easier to cut back the guest list for the holiday bash or find ways to give gifts that don't come from a store, he said.

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Credit Card Fraud

2009-11-01T18:41:00.000-08:00

Posted by: Jessie Bruyn

Credit Card Companies Are Still Looking For Ways to Make Profits

2009-10-31T18:14:00.001-07:00

By: Sara Sindelar

Credit Card companies have always been tricky in getting as much money as they possibly can out of a cardholder. There are 5 ways that card companies really get you. First is rate hikes where they automatically increase your borrowing rate without telling you. Second is adding on new fees to your card. These can include inactivity fees, annual fees, monthly fees, overcharging fees, these can be endless. Third is making a higher monthly minimal payment jumping from 2% to 5% without any advance notice till you receive your bill asking for more money. Fourth is decreasing the amount of rewards you get for swiping your card. Lastly is decreasing your credit limit. A lot of consumers have complained about purchasing something and getting their card denied. The card companies will also cancel your card if it is inactive as a safety precaution but not good when you go to use it and it is denied. These added fees and increases in payments are really hurting cardholders especially those who are living pay check to paycheck and rely on credit cards to make it through.

Congress is working on a reform bill that came out in May for credit card companies to stop all of their pricey tricks. The first part, which will start in February, will put limits on when issuers can raise rates on existing balances and new cards. Congress is hoping that this bill will help credit card holders but there is a great fear that the companies will keep finding ways around it to make a profit.

http://www.thedenverdailynews.com/article.php?aID=6195

http://www.fortmorgantimes.com/ci_13674428

http://money.cnn.com/galleries/2009/news/0910/gallery.credit_card_evil_things/index.html

Remodeling? It's a waste of money

2009-10-31T15:56:00.000-07:00

Posted by: Lily Mei

By Liz Pulliam Weston
MSN Money

There could be one upside to the real-estate implosion. Plunging prices finally could shatter our national delusion that home improvements are somehow an "investment" in our homes.

Think about it:

* With a real investment, you commit your money and hope to make some kind of profit.
* With remodeling, you're all but guaranteed a loss.

Even at the real-estate market's peak, most remodeling projects didn't pay for themselves.

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Investment Options

2009-10-30T20:34:00.000-07:00

By Jonathan Tse

Although stocks have been seen to be steadily rising these past few weeks, it seems that stocks prices have recently stopped rising and are beginning to fall again. Sadly, hopes that the economy may have finally been coming out of the recession have been wrong. It is thought that there will still be some time before true recovery of the economy arrives. A reason for this is the low consumer confidence rating, as consumers are still not very confident to invest as much as they would have before the recession. It is said that the current economic situation parallels the recession of 1973-74 in which the market fell more than 45% and then rebounded 60-70%.
A strategy to make profit during this time of economic hard times is to build a portfolio that is split into five parts: US stocks with constant dividends, mature foreign stocks and bonds, stocks and bonds from emerging markets, oil and commodity stocks and bonds, and bonds that return based on inflation. This type of portfolio diversification will allow investors to make decent profits even while still investing in cheap investments that other investors are afraid to take part in. Exchange traded funds (ETF) are also another option to invest in while the economy is not doing too well. There are five recently launched ETFs that appear to be profitable and will help to diversify one’s portfolio. Some rising countries have new ETFs which investors should look into. The top five include: Vietnam, Indonesia, Peru, Colombia, and Nordic region. International investments are some things to look into to invest in while the economy is in recession.

http://www.businessweek.com/blogs/personal_finance/archives/2009/09/new_normal.html
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20091028/FREE/910289998
http://www.straightstocks.com/indonesia/five-hot-new-international-etfs-to-consider/

Getting Paid to Take Care of Mom or Dad

2009-10-30T16:08:00.000-07:00

Posted By: Sara Sindelar

Edited by NIKKI WALLER

A huge swath of Americans -- nearly a quarter of the adult population -- provide long hours of voluntary care for older or sick family members and friends. These numbers are likely to grow as the population ages and more people live longer.

A small but growing number of families are taking an unusual step to acknowledge family caregivers. Rather than leave uneven bequests for their heirs, they are entering into formal "caregiver contracts," in which adult children or other relatives are hired, for modest salaries, to take care of elderly or disabled family members.

These arrangements, also called personal-service or personal-care agreements, help reward family members for the significant amounts of time, effort and money they often spend taking care of an elderly relative. They also can help reduce the size of a person's estate and may prevent battles between siblings and other family members.

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Getting a Mortgage In This Day and Age

2009-10-30T11:46:00.000-07:00

By Jameel Murray

Getting a mortgage can be extremely difficult these days. Mortgage lenders are paying an increased amount of attention to several factors. One of these factors includes a borrower’s credit score. Lenders are requiring that a borrower have a credit score no lower than a 660. This can be one of the determining factors in one’s mortgage payment. In the past, borrowers with a high debt-to-income ratio such as 55 percent were able to receive a considerable amount of loans. After the housing crisis, the maximum percentage of debt ratio is around 40 percent. Another determinant of the amount of loans a borrower may actually receive is the borrower’s actual income. In the past, borrowers were known to exaggerate their earnings but now lenders are requiring borrowers to provide verification of income through a series of paper work. A borrower’s liquidity also determines the amount of loan coverage one may actually receive. Banks are requiring borrowers to have an adequate amount of money available to cover payments.
Even though these requirements may scare some borrowers away from buying a home, there are several options borrowers are presented with. One option may include the idea that borrowers may need to put down a more sizeable down payment on a home. This ensures a lender’s trust in your request for a loan. Borrowers also need to have their finances set before going in for a loan. If finances were erratic, lenders would be discouraged to lend off money. One last option a borrower may have is to purchase a house where the value is going to increase. Banks may deny borrowers loans based on the speculation that a home’s value may decrease.

Sources: http://www.nytimes.com/2008/06/01/realestate/01cov.html?pagewanted=2

http://www.bankrate.com/brm/mstep.asp

http://www.bestsyndication.com/?q=20091025_finding_the_best_home_mortgage_rate.htm

Fun ways to learn Personal Finance

2009-10-29T19:09:00.000-07:00

By Alma Zhumagulova

In the face of the economic crisis there have been many articles, news and TV shows on how to avoid financial problems. People became aware of the many mistakes they made in managing their finances. Everyone knows that it is always better to prevent the problems than to try to correct mistakes when they happen, and it is always better to start as early as possible. Recently, the media has been bombarded with suggestions on how to do that. To recover the economy it is necessary to teach the young generation how to avoid the mistakes of the past generations.
PBS runs a show that teaches young adults some basic financial knowledge such as choosing the appropriate credit cards, avoiding and getting out of debt, insurance and retirement planning, budgeting and saving for long-term financial goals.
Universities and colleges are adding personal finance classes to their class offering. George Washington School of Business has added Personal Finance class to its curriculum that is available to juniors and seniors of all majors. Even some high schools are starting to do that, for example, the Medway High School in Massachusetts. The semester long class covers such topics as credit, stock market, debt, income, spending and saving.
However, children and young adults might think that they don’t need to be concerned about these issues at this stage of their life, it might seem too boring and difficult. To increase their interest and teach finance in an easy and fun way there are financial computer games such as Celebrity Calamity in which the player acts as a financial manager of a celebrity, The Great Piggy Bank Adventure – a game for children of age 8 to 14, Stagecoach Island and Moneytopia. The players of these games can make mistakes and learn by them which would be very costly in the real world.
Even though these means of introducing children and young adults to finance do not guarantee that children and teens will learn and remember all the lessons taught, these means will at least help to increase awareness among this age group about the many financial issues they will face in just a few years.

References:
1. http://media.www.gwhatchet.com/media/storage/paper332/news/2009/10/29/News/School.Of.Business.Adds.Personal.Finance.Course-3817252.shtml
2. http://www.chicagotribune.com/business/yourmoney/chi-tc-biz-ym-fun-1025oct25,0,2823992.story
3. http://video.pbs.org/video/1245775469/
4. http://www.boston.com/news/education/k_12/articles/2009/08/20/schools_in_west_suburbs_push_new_personal_finance_curriculum/

Loans Inrease

2009-10-29T11:03:00.000-07:00

By, Meredith Anderson

With the economy where it is now people are taking more and more loans. It seems scary to be borrowing money but it’s one of the greatest ways that is keeping the economy stimulated. If people don’t have the money to buy anything business will go out of business. As risky as it sounds people that are taking loans and paying at least some of them are actually helping the economy grow ever so slightly. Business and banks are offering even lower loan rates to attract more people. Auto companies are offering cheaper prices on cars as well as offering lower loan interest rates. Home prices have become more affordable do to the decrease in real estate action. Student loans have increased over the past couple years as well, however, not because of the idea that “this is the time to buy,” but because of the increase in college tuition and the decrease in many families incomes.
All these three types of loans are stimulating our economy now but how will they affect us later? If the economy doesn’t bounce back to where we predict than many people will become even more in debt. The problem with loans is that they seem great and are easy to obtain. Because it is so easy to obtain these loans people are buying homes, cars, and other items that they couldn’t usually afford and will have a lot of trouble paying back even if the economy does turn around.

Sources:

http://www.ed.gov/news/pressreleases/2009/09/09142009.html

http://www3.myautoloan.com/articles/myAutoloan-com-Experiences-Dramatic-Increase-in.htm

http://www.allbusiness.com/business-finance/business-loans/938679-1.html

Strategy on Buying Car

2009-10-29T10:38:00.000-07:00

By Quang Nguyen

Most people look forward to buy their first car and their first house. When buying car, people do not think carefully about the process. Here lies the issue, buying a car can be a difficult task and much of the simple steps are commonly overlooked.

First of all, you need to evaluate your current financial situation to find out how much you can afford in terms of whether you are going to finance the car or buy it outright. If you are buying a relatively new car, chances are you will have to finance the car and pay monthly payments.

New vs used is a common question people ask themselves when buying a car. You may be able to afford more car by going used but you know what to expect from the car when buying new. If you take the used route you are going to want to learn about the cars history. Carfax.com is a great site that provides the “medical history” of the car. It will let you know what the cars history has been like in terms of it being in the shop. You will need to know the title of the car. Usually, it is not a good idea to buy salvage title car even though it is very cheap.

In conclusion, you will need to budget yourself properly to ensure that you can afford the monthly payments if you chose to finance the car. You must also take into consideration the cost of insurance as well as put money aside for unexpected costs the car may incur. Maintaining your car can be as much as several thousands dollar each time. Gas can also costs as much as several hundreds dollar a month.

References:
http://auto.howstuffworks.com/buying-selling/car-buying.htm
http://www.carbuyingtips.com/carintro.html
http://www.boingboing.net/2008/08/13/how-to-buy-a-new-car.html

Benefits of a 401(k)

2009-10-29T10:09:00.000-07:00

By: Nicole Nelson

A 401k is an employer-sponsored retirement plan. The term 401k comes from the fact that the origination of these types of plans comes from section 401k of the Internal Revenue Code. A 401k plan is a defined contribution plan that lets an employee make pre tax contributions to their plan. 401k plans take money out of employee’s paychecks before they are taxed, reducing taxable income. These funds are then invested into various funds in the 401k plan, decided on by the employee.

401k plans can be very beneficial in retirement planning because of their benefits. One benefit is that the employee is reducing their taxable income, which can be beneficial when paying taxes as opposed to taking money and investing/saving it after being paid. Also, growth in 401k accounts over the year is taxed deferred, again saving money in taxes. Also, many employers give employees the chance to get “free money” from their participation in 401k plans. Employers match contributions (up to a certain percentage depending on the plan) if employees are contributing enough of their own money. Also, it is known that the sooner you start saving, the larger your funds will become in the future. Therefore by putting money into a 401k can easily grow over the years. Another benefit about 401k’s is that you can borrow against your own funds. 401k loans are common and you are technically borrowing your own money. The downside about this is that you loose the chance of earning money on the investments that you will be missing out on because of the loan.

Source One

Source Two

Source Three

Unemployed tap their 401(k)s

2009-10-29T09:57:00.000-07:00

Posted by: Nicole Nelson

By: Ben Rooney

NEW YORK (CNNMoney.com) -- Nearly half of U.S. workers who left their job last year cashed out their 401(k) accounts, according to a study released Wednesday, despite ongoing efforts to dissuade Americans from doing so.

Hewitt Associates, a global human resources consulting firm, said 46% of employees who left their job last year took a cash distribution from their 401(k) plan.

The "alarmingly high" number, which was based on a study of 170,000 401(k) participants, has remained virtually unchanged since 2005, the group said.

Pamela Hess, Hewitt's director of retirement research, said employers and policymakers need to work together to change employee behaviors and reduce 401(k) cash-out rates.

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Personal Finance Website to Debut

2009-10-29T08:38:00.000-07:00

By William N. White
Posted by Jameel Murray

After the 2008 subprime mortgage meltdown revealed widespread unfamiliarity with the intricacies of personal finance, one former Harvard Business School student is on a mission to educate young people about managing their money.

On Nov. 15, Alexa L. M. von Tobel ’06 will launch LearnVest.com, an interactive financial information Web site geared toward women.

The start-up features personalized information on credit scores, mortgages, and retirement savings, among other fiscal topics. Von Tobel, who is taking a leave of absence from HBS to work on the project, calls it “the Cliff Notes for personal finance.”

“The bottom line is most people don’t know what the difference between a debit and a credit card is,” said von Tobel, adding that most students at Harvard will graduate without ever having taken a class in personal finance.

Von Tobel—who first envisioned the Web site during her senior year at Harvard—said that LearnVest aims to be more personalized than other financial Web sites. It walks users through financial milestones from getting a first job to paying off student loans, then offers gift cards and other rewards when they complete units on the site.

The Web site is designed for women under 30, though von Tobel emphasized that LearnVest is open to anyone.

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Barter for the Services You Need

2009-10-28T19:36:00.000-07:00

By: Jessie Bruyn

Camille Tominaro's vacation home near Hunter Mountain in New York could use some new floors and a good paint job, but she doesn't have the money to hire a professional to do the work.

Cash-strapped consumers are increasingly bartering to get needed products and services. If you're considering bartering, here are a few things you should know:

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3 Ways to Improve any Credit Score

2009-10-28T19:32:00.000-07:00

Posted by: Jessie Bruyn

How to Play It: The New Normal

2009-10-28T06:23:00.000-07:00

By Jonathan Tse

Every decade or so, investors are told to heed a new megatrend, whose chief appeal is, well, its newness. In the ’90s, investors were sold on the notion of a New Economy that wasn’t subject to the old laws of gravity and, among other things, could support higher stock valuations. And one of the best-selling investing books of the past decade was The New Investment Superstars, a tome that canonized a new breed of fund wizards, some of whom later proved to be mortal. Now comes the latest investment fad, the “new normal,” the idea championed by Pimco bond guru Bill Gross that the U.S. has entered a period of diminished expectations that requires investors to rethink their long love affair with stocks.

There’s a certain Biblical undertone to the new normal orthodoxy: After decades during which consumers lived beyond their means, the nation must now endure a long stretch of lean years during which consumers pay down debt. In the minds of Gross and Pimco colleague Mohamed El-Erian, the prospect of a period of no growth means investors should hold as little as 30% in stocks, vs. the 60% long deemed the proper mix. They also recommend holding more fixed-income assets like bonds and bank loans, as well as commodities.

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redit card borrowers will see minimum repayments double under new proposals

2009-10-27T18:09:00.000-07:00

posted by Shawn Gao
he move is part of a package of measures announced by the Government to tackle consumer debt amid the recession.
It said forcing credit card companies to raise the minimum monthly repayments would encourage people to focus on paying off their debt.
The minimum amount that the majority of companies currently require card holders to repay should be raised from just 2 per cent of the amount owed, to 5 per cent, it suggested.
The increase could cut the time a borrower takes to repay a £1,800 credit card debt to ten years – compared with 40 years at 2 per cent. It could also reduce the amount repaid by almost £4,000, according to the Department for Business, Innovation and Skills.
Read more

Chinese investment

2009-10-27T17:47:00.000-07:00

posted by Shawn Gao

People in China are willing to invest their money in stock market.
Today, many experts predict that China is the first country that gets out of the recession. As result, Chinese GDP for the first three quarters is above 7percent. Comparing with other developing countries, it GDP growth rate is dramatic higher. The consumer’s buying confidence has been built up this year. Chinese people are willing to invest their extra money in Chinese stock market. People opened their bank account in order to get quick money from the stock market. Chinese stock market has already reached the bottom line; now the index of the stock market is above 3000 points. (The beginning of this year is only 1800) Currently, people are spending their money as they did in 2007. The housing price has been gone up. Shanghai and Beijing, lead-housing price in China, have been reflecting Chinese economy is going well. On August, Chinese Government just started its Chinese NASDAQ. Many new IPO have been operated. And Chinese people now are going to allocate some of their extra money in the new stock market so as to build their wealth.
1.http://news.dichan.sina.com.cn/2009/10/27/78236.html
2.http://baike.baidu.com/view/6240.htm
3.http://stock.hexun.com/2009-09-24/121195063.html

Personal loans lose out on rate cuts

2009-10-27T17:44:00.000-07:00

posted by Shawn Gao
WHILE interest rates on home loans fell more than four percentage points between August last year and October this year, the rates for personal loans actually rose during that period.
According to figures from Infochoice, the average variable rate on a secured personal loan from a bank rose by 0.77 per cent to an average 11.43 per cent while that of an unsecured personal loan from a bank increased by 0.16 per cent to an average 13.89 per cent.
read more

2009-10-27T17:41:00.000-07:00

posted by Shawn Gao
There are some few things that one has to consider when he is seeking to obtain a new car loan even if he has a bad credit history.
There are some few things that one has to consider when he is seeking to obtain a new car loan (www.crestcarloan.com) even if he has a bad credit history. The first thing that you have to consider is whether your loan options are better on a new car even if you have a poor credit. Basically, the new automobiles haveixed value in the beginning and clear depreciation schedule which gives a lender room to make his or her decision without any doubt.
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Finding gold in little miners

2009-10-26T21:11:00.000-07:00

Posted by Quang Nguyen

Top-ranked metals fund manager Mark Johnson says small gold miners haven't recovered from last year's selloff. He shares his favorite picks.

NEW YORK (Fortune) -- A year ago investors fled small gold mining stocks as the desire for high-risk assets evaporated.

Now, even after investors have flooded back into the market, top-ranked gold fund manager Mark Johnson says the junior miners are undervalued, and he's betting on their recovery.

"The best value is at the smaller end of the scale," says Johnson, who is in his 16th year running USAA's Precious Metals and Minerals fund (USAGX).

Junior miners are those with less than 250,000 ounces of annual gold production, which equates to roughly $250 million in revenue at gold's current price.

Click here to read more

Credit Card Reform Bill Tries to Stop Evil Companies

2009-10-26T15:18:00.000-07:00

Posted, Meredith Anderson

5 evil things credit card companies can (still) do
The credit card reform bill tries to help cash-strapped customers, but companies are coming up with new ways to boost profits.

Credit card companies are socking it to consumers left and right.
They're hiking interest rates to as much as 36% and doubling minimum monthly payments, frustrating customers who are already cash-strapped and credit-crunched.
In an effort to curb these abusive practices, President Obama signed into law a credit card reform act in May that's rolling out in three parts over 12 months.
At the same time, credit card companies have been hard at work coming up with new ways to boost profits while sidestepping the reforms.

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Personal Finance: The price of putting off a pension

2009-10-26T13:25:00.000-07:00

Question: I have a pension that is available to me, and I wonder about beginning the pension now or waiting. If I take it now, I will get $1,183 a month. By waiting, it increases about 7.5 percent each year to a maximum of $2,071 a month at age 65. I am not in need of the pension at this time. - Gary, Baltimore
Answer: You are wise to be analyzing the possibilities rather than taking what's in front of you now and hoping it works out later.

Research shows that only about a third of people try to calculate what they will need in retirement before leaving a job or starting to take a pension. Years later, bad decisions can catch up with them: Once you take a pension, you cannot go back to your former employer and request a do-over when money is tight. And you might not be able to return to work to cover unanticipated living expenses.

The AARP surveyed retirees a few years ago and found that almost half worry about paying their utility bills. This could have been avoided.

Click here to read more.

Posted by Kelsey Hoffman

Underlining 'Free' in 'Free Credit Report'

2009-10-25T20:41:00.000-07:00

Posted by: Nicole Nelson

Written by:Michelle Singletary

I've been meaning to pull my credit reports for some time.

I, like so many others, am concerned about identity theft or uncorrected errors in my credit files that might ding my credit scores.

When I finally got around to it, I knew to go to AnnualCreditReport.com or call 877-322-8228. I haven't been fooled by those ubiquitous commercials for FreeCreditReport.com with the goofy guy playing a guitar and complaining about how his life is messed up because he didn't check his credit report.

But the Federal Trade Commission has received many complaints from consumers who were misdirected from the official centralized site. Every person is entitled to a free credit report every 12 months from each of the three nationwide consumer reporting agencies -- Equifax, Experian and TransUnion.

to read more click here

Financial games: It can pay to play

2009-10-25T20:38:00.000-07:00

Posted by: Nicole Nelson

Written by:Eileen Ambrose

One of the big hurdles to teaching personal finance to children and young adults is how to do so without boring or confusing them with talk of compound interest and annual percentage rates.

Now, there's a growing effort to reach kids on their own turf: online games.

More than 70 percent of people play some form of games, a percentage far higher among teens. Gaming experts see this as an opportunity to pack critical lessons into a fun activity.

click here to read more

Finding the Best Way to Save for College: 529 Plan

2009-10-25T18:50:00.000-07:00

By: Sara Sindelar

Paying for college is one of the biggest expenses for an individual and their parents. In order for people to be able to afford to send their child off to college they need to start putting money aside earlier and earlier so that it can grow to the cost of tuition when the time comes. A CNN survey states that people save about 3.6% of their annual income for college even though they really need to save 5.7%. The percentage increased from 31% to 44% of those who are confident they will not reach their college savings goal. Times are getting tough with the economy and savings is declining fast.

There are many different ways to save for college with all the investment option available. The most popular method is the 529 plan. A CNN survey states that 43% of people saving for college are using a 529 plan. These 529 plans are state-sponsored programs set up with an asset management company. The individual sets up their account with the company; the income is tax-deferred and the money needs to be spend on educational purposes.

There are a variety of 529s so you have to do some research before picking one out. The key traits to look for are low fees, flexible investment options and diversified portfolios, good performance by fund, and tax benefits. There are so many other options to 529s and you should take these key traits in consideration when picking the option that best suits you especially in the tough times right now.

http://www.chicagotribune.com/business/yourmoney/chi-tc-biz-ym-cruz-1025oct25,0,1624828.story

http://www.cbsnews.com/stories/2009/10/01/earlyshow/contributors/raymartin/main5356031.shtml

http://www.msnbc.msn.com/id/33070796/ns/business-motley_fool/

Financial games: It can pay to play

2009-10-25T18:19:00.000-07:00

Online sites provide opportunities to teach lessons to children in a fun way
By Eileen Ambrose Tribune Newspapers October 25, 2009
Posted by Alma Zhumagulova

One of the big hurdles to teaching personal finance to children and young adults is how to do so without boring or confusing them with talk of compound interest and annual percentage rates.

Now, there's a growing effort to reach kids on their own turf: online games.

More than 70 percent of people play some form of games, a percentage far higher among teens. Gaming experts see this as an opportunity to pack critical lessons into a fun activity.

"Think about what games can do that you really can't do otherwise," said Ethan Mollick, an assistant professor of management at the Wharton School of the University of Pennsylvania. "Even in a personal finance class you don't get the chance to experiment, to be in the shoes of someone trying to solve problems.

Click here to read more

Americans expect to focus on personal finance in short term

2009-10-25T18:05:00.000-07:00

Posted By: Sara Sindelar

A new survey finds that Americans plan on continuing to increase their savings and investments for the near future.

The survey from First Command found that Americans have less money in their savings accounts and are still paying down their debts at about the same rate as in previous months.

The average amount of money in a short term savings account was said to be $860 in September, down from $1,169 in July but up from $787 in August.

The financial institution noted that more consumers have been applying for debt consolidation loans recently, further adding to the widespread emphasis on personal finance.

In a potential warning sign to the retail industry, the survey also found that 57 percent of consumers plan to scale back their holiday shopping activities this year. This could tie in with a trend where the pace of the economic recovery is held back even as Americans continue to improve their overall personal finances.

By Bill Laforme

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2009-10-23T22:01:00.000-07:00

Trend towards health care stocks?

2009-10-23T21:55:00.000-07:00

By Jonathan Tse

Recently the stocks that have been performing well are the health care stocks. The reason behind this is the fact that many of the baby boomers are approaching the ages of 50-60 years old. This contributes to the expansion and growth of the health care industry as more elderly people need to purchase health care. It is estimated that in the next 18 years, 4 million baby boomers will reach age 60 and in 2030 the population would consist of 20% elderly people above the age 65. Many people are in conflict because they feel that there is a moral issue involved with purchasing health care stock. Once the economy recovers, some people feel that the health care industry will be one of the fastest growing sectors. Also, because the health care industry has been underperforming for so many years, the stock prices have become very cheap and are now starting to rise in price due to greater performance in recent years. Fears by people on the performance of other industries such as energy and housing have brought more investors to the health care industry, contributing to its current growth trend. Foreign companies have been participating in the recent trend of purchasing health care stock because they are looking for US stocks that are cheap and potentially profitable.

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http://www.forbes.com/2009/10/20/gentiva-amedisys-odyssey-personal-finance-investing-ideas-dress-barn.html
http://money.cnn.com/2009/10/19/pf/funds/forester_health_care.fortune/index.htm?postversion=2009101913