The best cheap wheels

- By Kevin Yu

However, because of the recession you want to keep the final price tag low. To help out, here are some recommendations from among the cars that I have tested in the last year. I hope that this story will aid in your search. The cars are in no particular order.

1. Honda Fit
Even with the recent redesign has not lost its sporty feel even though it will not be the most powerful car you have ever driven. New models even offer a navigation system to keep you from becoming economically lost. It is my top pick among small economy cars.

2. VW Jetta TDI
In this case, TDI means the Jetta in question comes with a very refined diesel engine that will net you excellent miles per gallon and still be fun to drive. Interior fit and finish are first class and, according to the diesel fans I have heard from, there is the promise of long life.

3. Nissan Versa (base)
Nissan recently announced a much-stripped-down version of the Versa that starts at under $10,000. It is roomy, actually fun to drive and got excellent gas mileage. You don't get a radio, there are roll up windows and manual door locks, but it is still a neat car. (Watch for an upcoming full road test.)

4. Scion xD
It is based on the Toyota Yaris and is a hoot to run errands in due to its small size. What we have in the xD is a very well made, inexpensive gas sipper with the expectation of long life and economical operation.

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Students, policy makers want financial education

- By Kevin Yu

While many high school students are already burdened by a growing number of graduation requirements, maintaining grades and test scores and applying to colleges, a surprising number are asking for just one more class.

Knowing they will be faced with unprecedented economic challenges in the near future - be it applying for student loans or managing credit card debt - young adults are asking for some help from their teachers.

According to recent research from student loan provider Sallie Mae, students in college are making increasingly poor credit decisions. About 60 percent of students polled by the organization were surprised at the size of their credit card balance and another 40 percent knowingly charged items they did not have the funds to pay for.

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Six reasons to tap retirement funds now to buy rental property

- By Kevin Yu

It is shown that purchasing a steeply discounted property that can produce annual income of 10% and more is a low-risk strategy for uncertain times -- especially for retirees whose fixed-income investments are paying paltry yields right now.

Here are six reasons why buying real estate with an IRA is a potentially lucrative and wise move today:

1. A solid alternative to stocks

2. An investment well-suited for long-term investors

3. Purchasing a significantly undervalued asset

4. A steady income generator

5. A safer means to play the stock market

6. The ability to flip real estate with no tax bite

Sources:

1. http://www.marketwatch.com/News/Story/six-reasons-buy-real-estate/story.aspx?guid=%7BD93040B6%2D317B%2D4103%2D9E84%2D2D90CAC3B8A4%7D

2. http://online.barrons.com/article/SB123973309748117751.html?mod=googlenews_barrons

3. http://www.cnbc.com/id/30227043

Personal Finance: It pays to look on the positive side

- By Kevin Yu

Optimism. For months, it's been in rather short supply.

Like a lingering cold you can't shake off, the economy's blues just hang on. It's not just our bottom line that's been battered, but our psyches, too. And even if you haven't lost your job or aren't facing foreclosure, it's often hard to feel good.

So today on Easter, when thoughts turn to hope and new beginnings (if not marshmallow bunnies and chocolate eggs), it seems a good time to pause, take a collective deep breath and think some positive thoughts.

Because truthfully, in a personal-finance sense, we can't change the market's ricocheting ride nor can we instantly Botox our bank accounts.

But we can change how we take it all in. Here's how:

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Personal lessons from the financial crisis and Bernie Madoff

- By Kevin Yu

A few weeks ago, I watched a special feature of CNBC titled House of Cards. The feature explained how the current financial crisis came to fruition. To put it briefly, it all started after 9/11, when the Federal Reserve chief in the US decreased the interest rates to try to cushion the economic impact of 9/11.

The lower interest rates encouraged people to borrow money. Many people started buying houses and, therefore, house prices started rising. To get more money to lend, financial institutions in Wall Street devised a way to package the loans and sell them to third parties. The increased money encouraged further lending, so the economy flourished and the cycle continued. However, many of the loans were given to people who actually could not afford them, hence the term subprime. Naturally, the people who couldn’t afford the loans started defaulting on their payment, which eventually led to the downfall of the financial giants, in turn affecting the global economy.

1. Don’t be greedy.

2. Have a financial education.

3. Don’t spend money that you don’t have, and don’t equate money, things or status with being best.

4. Save.

5. Diversify your portfolio.

Sources:

1. http://www.nytimes.com/2003/07/06/business/l-personal-finance-in-the-classroom-399710.html?scp=4&sq=personal%20finance&st=cse

2. http://www.marketwatch.com/news/story/weeks-10-best-personal-finance/story.aspx?guid=%7B99A1C5AF-80CE-418A-9B99-93C5FEBBE280%7D&dist=msr_1

3. http://businessmirror.com.ph/home/opinion/8368-personal-lessons-from-the-financial-crisis-and-bernie-madoff.html

How To Check Out Your Financial Advisor

- By Kevin Yu

In the wake of the Bernard L. Madoff scandal, it's a question on everyone's mind, especially older folks with the most to lose: How can one check out the people helping to manage one's life savings?

A lot of smart money with access to expensive private investigators got taken in by the confessed, now-imprisoned Madoff. But he was the rare case of an out-and-out fraudster with no previous adverse public regulatory baggage. As it turns out, there are cheap and easy ways to vet financial professionals and the outfits they work for, for a history of blunders--or worse.

The absolute easiest way: Google (GOOG - news - people) the name of your broker and then the firm. Also check some of the specialized Google services, such as Google News and Google Blog Search, which can pick up more recent events.

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How to save money when money is tight

- By Kevin Yu

Here are five suggestions on where to start:

1. Prioritize
Take control of your household budget by logging every dollar you spend in a 30-day period. Once you face a month's worth necessities then you can begin to prioritize expenses and find ways to save.

2. Build an emergency fund
Put savings into a special account to be tapped only in a crisis, such as losing a job. Six months of living expenses is a rule of thumb -- longer if you're self-employed or the family's sole breadwinner

3. Be creative
The Internet is a great resource. Take advantage of online retailers' discounts posted on shopping. You can also save and give at the same time.

4. Pay yourself first
You can't spend what you don't see. Send automatic deductions from your paycheck directly to a savings account.

5. Walk the talk
Live by example. Recession sales are everywhere, but you don't have to buy. Communication is the key, especially in these trying, tense times. Talk with your spouse and family about money values and short-term and long-term savings goals, and then decide how to fulfill them.

Sources:

1. http://www.nytimes.com/2003/07/06/business/l-personal-finance-in-the-classroom-399710.html?scp=5&sq=personal%20finance&st=cse

2. http://finance.yahoo.com/personal-finance

3. http://www.marketwatch.com/news/story/how-you-can-save-more/story.aspx?guid=%7B06ECC51F%2D1664%2D462E%2D9545%2D7F3046D4B44C%7D

Merging Portfolios After Marriage

- By Kevin Yu

Like most investors, Wendy and Doug Kirk were worried about how the stock market was doing last fall. But it was hardly at the forefront of their thoughts: After knowing each other for more than 25 years - they both grew up in Ocean Township, N.J. - and dating for more than three, the couple tied the knot in September.

Now, with the wedding behind them, the pair, who live in Oakland, Calif., have begun to look at their collective finances. And they're starting to wonder whether they were investing properly to begin with.

Wendy, for instance, says some of her mutual funds fell more than 50% in 2008. "I never thought I was that aggressive," she says. Having lost more than $60,000 in the bear market around the time they hoped to start saving for a home, Wendy, 38, and Doug, 41, want a fresh start.

As they combine their portfolios, they want to make sure that they are properly diversified. They also want to know whether they're still on track to buy their dream home. Says Wendy: "Now that we've joined our finances, we want to make sure we're on the right path."

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Retirement For Small Business Owners

Posted By: Ken Smith

Written By: ALEXANDRA LOPEZ-PACHECO

Personal financial planning for small business owners is far more complex than for employees because the business and the personal are usually closely intertwined in just about every aspect, from the financial to the emotional. It can be a big headache, but this isn't the time for small business owners to put their personal financial planning and retirement savings on the back burner.

A few years ago, the Canadian Federation of Independent Business reported about 70% of small business owners were planning to retire within 10 years. Given the current economic climate, those who still have that goal will need to be proactive and have a solid strategy in place.

"A business owner has to look at it holistically," says certified financial planner Malcolm Ross, founder and president of Vancouver-based Investaflex Financial Group, which specializes in wealth and business management advice for family businesses.

"Often corporate financial planning is done by an accountant, the personal financial planning is done by a financial advisor, and the guy that provides the insurance and group benefits isn't necessarily working with the accountant or other advisors, so you get fragmented advice."

In a holistic plan, a business owner should first ensure personal assets are protected. "We look at the nature of how they're conducting their business and how that impacts them from a personal risk perspective," Mr. Ross says. Incorporation reduces the risk to the owner's personal assets.

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Investing for Dummies

By: Dan Hughes

Dealing With Being Laid Off

Written By: Claudia Buck 

Posted By Ken Smith

It's the dreaded tap on the shoulder. The proverbial pink slip.

Amid record unemployment, millions across the country are getting the bad news: Your services at work are no longer needed.

Without question, getting laid off is an emotional and financial shock. For advice on how to cope, we talked with three Sacramento financial advisers. Here are their tips:

Absorbing the shock

"Don't get demoralized. It takes resiliency to take that (layoff) blow and not let it disable you," said Peter Cole, a chartered financial consultant and a clinical psychiatry professor at the UC Davis School of Medicine.

It's normal to feel a layoff is a personal failure, he noted. Take stock of anything that made you vulnerable, but recognize that in this financially stressed economy most layoffs are beyond your control.

Don't let it drain your emotional reserves. Talk it out with friends, family, a counselor or religious adviser, he said. "Then get your butt in gear."

Setting Financial Goals

By Dan Hughes

Putting Together a Personal Financial Budget

By Dan Hughes

Personal Finance: 20 Dos & Don'ts for 2009

Post by Mei Ling Lin

During the worst economic crisis in a lifetime, the right financial decisions are crucial.
BusinessWeek asked financial planners for some advice on what to do—or not to do—with your money in the New Year. As we bid farewell to a dreadful 2008, these "resolutions" may help keep your finances on the right track in 2009:

1. Don't try to predict the future.
"We are currently in the midst of unprecedented and complex challenges," says Femi Shote of Asset Harvest Group in McLean, Va. Anyone who thinks he or she can predict what's going to happen is "delusional," Shote says.
Financial advisers often hear from clients who would like to sell stocks now and then buy again when the market hits bottom. "My response is, 'How do you know when that will be?'" says Trent Porter of Priority Financial Planning in Fort Collins, Colo.

2. Do keep enough cash available.
Even if you're not worried about losing your job, a rainy-day fund can provide peace of mind.
There are different guidelines for how much cash to keep on hand. Some say $12,000 or more per adult; others say it should be six to nine months of living expenses. With extra cash available, you can avoid selling investments to pay for expenses in an emergency.

3. Do invest internationally.
Though the financial crisis started in the U.S., the past year has been worse for investments in the rest of the world. The MSCI EAFE, an index of international stocks, is down 43% this year, and stocks in emerging economies fared far worse. American investors who diversified abroad have also been pummeled by the rise in the U.S. dollar.
Even after a year like that, advisers say it's not wise to abandon international investments entirely. For one thing, though some key overseas economies, like China's, have been hit hard lately, their long-term economic fundamentals look better than those of the U.S.

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What is a Personal Finance Budget?

What Is a Personal Finance Budget? -- powered by eHow.com

Posted By: Ken Smith