If you feel as though you keep making the same mistakes when it comes to money, there's good news.
By making a few small, practical changes in your behavior, you can often correct financial mistakes and make some positive changes that are likely to last. Here are four examples.
• Eliminate emotional spending: Before you head off to the mall, take a minute to note what you are feeling. In a recent study by moneycentral.msn.com, people who had just watched a sad movie clip were willing to spend more than those who had just watched other types of movies.
Remember, if you are feeling sad or frustrated, there are ways other than shopping to make yourself feel better.
• Pay off credit card debt as soon as possible: Take a long look at how much you are paying to borrow money from your creditors. Think about consolidating debt with a single loan that has a lower interest rate that's fixed.
• Start planning for retirement now: If you are not saving money for retirement, you should be. A recent study in USA Today showed that currently, 53 percent of people in the workforce have no pension and 32 percent have nothing set aside for retirement. If you're planning on relying just on Social Security, you probably should think again. The current average payout is just $955, or $11,460 annually-and could be even less, depending on your work history. You should consider working with a financial professional and completing a personalized financial profile. This can help determine how much you need to start saving in order to reach your financial goals, such as retirement, education savings for your children and other goals.
• Prepare for the unexpected: Don't use the "it could never happen to me" excuse when dealing with something as critical as your family's financial future. Sudden accidents or unexpected critical health problems happen every day to those who least expect it. If you are the breadwinner of a young family, according to the experts at Kiplinger's, life insurance protection of eight to 12 times your annual income is recommended. Most experts agree that the most affordable form of insurance is term insurance. According to Kiplinger's, "Dollar for dollar, term life insurance gives you the most protection for your money. Period."
Sunday, August 30, 2009
Thursday, August 20, 2009
Good Investment Advice: Only For The Rich?
If you think good investment advice is only for the rich, you're not alone. Nearly two-thirds (65 percent) of investing Americans believe that those with more money are able to get better financial advice than those with less money. Further, more than a quarter (26 percent) state that it takes at least $100,000 to get top-quality financial advice.
This is according to a new survey by the Retirement Corporation of America, which also finds that more than half (56 percent) of investors believe that financial advisors lose credibility when they accept fees or commissions.
Given the above perceptions, it is not surprising that 53 percent rely on themselves or turn to family and friends when it is time to make investment decisions rather than seek professional advice. However, changing investment funds is easier said than done for investors. The survey finds that nearly a third (31 percent) are willing to wait from one to five years before they move their money from a poorly performing option to a better one. The factor that makes it most difficult for investors when contemplating change is the scarcity of time to conduct adequate research, as cited by a third of respondents. This is followed by 20 percent who state that they are confused by all the available options and 16 percent who are afraid of making the wrong decisions.
The Retirement Corporation of America conducted this survey to better understand why consumers stay invested in poor-performing mutual funds. Their newly launched investment opportunity-Money Masters Investment Portfolio-is the first to offer unbiased advice and access to top-performing investment funds for every American.
Taking The Guesswork Out
The good news for confused American investors is the new registered investment advisory account (the "R" Account), offered through the Retirement Corporation of America, with no minimum account balance, commissions, transaction fees or exit penalties. It allows investors to access a fully managed Money Masters Investment Portfolio containing 15 of the world's top-performing mutual fund managers-the "Money Masters." The Money Masters are the top 10 stock fund and top five bond fund managers chosen from more than 8,000 fund managers who meet very strict selection criteria.
How It Works
When an investor opens an "R" Account, Retirement Corporation of America advisors determine the individual's objectives and risk tolerance. Based on that profile, a Money Masters Investment Portfolio is created to best suit the individual investor's needs.
This is according to a new survey by the Retirement Corporation of America, which also finds that more than half (56 percent) of investors believe that financial advisors lose credibility when they accept fees or commissions.
Given the above perceptions, it is not surprising that 53 percent rely on themselves or turn to family and friends when it is time to make investment decisions rather than seek professional advice. However, changing investment funds is easier said than done for investors. The survey finds that nearly a third (31 percent) are willing to wait from one to five years before they move their money from a poorly performing option to a better one. The factor that makes it most difficult for investors when contemplating change is the scarcity of time to conduct adequate research, as cited by a third of respondents. This is followed by 20 percent who state that they are confused by all the available options and 16 percent who are afraid of making the wrong decisions.
The Retirement Corporation of America conducted this survey to better understand why consumers stay invested in poor-performing mutual funds. Their newly launched investment opportunity-Money Masters Investment Portfolio-is the first to offer unbiased advice and access to top-performing investment funds for every American.
Taking The Guesswork Out
The good news for confused American investors is the new registered investment advisory account (the "R" Account), offered through the Retirement Corporation of America, with no minimum account balance, commissions, transaction fees or exit penalties. It allows investors to access a fully managed Money Masters Investment Portfolio containing 15 of the world's top-performing mutual fund managers-the "Money Masters." The Money Masters are the top 10 stock fund and top five bond fund managers chosen from more than 8,000 fund managers who meet very strict selection criteria.
How It Works
When an investor opens an "R" Account, Retirement Corporation of America advisors determine the individual's objectives and risk tolerance. Based on that profile, a Money Masters Investment Portfolio is created to best suit the individual investor's needs.
Monday, August 10, 2009
Balancing A Budget And Saving Money
Your finances are your business. But unfortunately it seems like you need an accountant to help you understand and decode the mysteries of balancing a budget or saving money. At some point you might need to get a loan. When that day comes, this article can help you understand which is the right one to get.
An unsecured loan is simply a loan you get based on your good name and your credit rating. Often the interest rates are higher on an unsecured loan than on a secured loan because the risk is higher to the lending institution. If, for some reason, you are unable to pay back the loan and the lending institution does not get any money back. However, your good name and your credit rating are potentially ruined.
On the other hand, a secured load is a low you get when you put up some assets. The advantage of a secured loan is that you often get more money at a lower interest rate for longer repayment period that you would with an unsecured loan. This is because you have some assets to backup your loan. The lending institution prefers this kind of loan because if you find yourself unable to make payments, they can see your assets as an alternative form of payment. Because the risk to them is diminished they are able to provide you with more attractive loans at a better rate.
You might think of a mortgage as a secured loan. The bank lends you money to buy a home and they use the home as a way to back up the loan. If you do not make your mortgage payments, the bank can seize your house.
Or you can think of a secured loan as a pawn shop that lends you the money you want but lets you still use the goods you pawned!
So which one is the right one for you? It’s a tough decision to make. In most cases, a secured loan will get you a better rate, so you just might prefer that.
However, perhaps you don’t have any assets available, or you don’t want to risk the seizure of certain assets if you are unable to make payments. In this case, you just might not mind paying a little more for the benefit of having an unsecured loan.
Both unsecured and secured loans are good options to have when you are doing your financial planning. You can use them to consolidate your outstanding bills, leverage your home investments, or get the things you need and want. And, with the choices between unsecured and secured loans, you have the benefit of being in total control of your financial destiny!
An unsecured loan is simply a loan you get based on your good name and your credit rating. Often the interest rates are higher on an unsecured loan than on a secured loan because the risk is higher to the lending institution. If, for some reason, you are unable to pay back the loan and the lending institution does not get any money back. However, your good name and your credit rating are potentially ruined.
On the other hand, a secured load is a low you get when you put up some assets. The advantage of a secured loan is that you often get more money at a lower interest rate for longer repayment period that you would with an unsecured loan. This is because you have some assets to backup your loan. The lending institution prefers this kind of loan because if you find yourself unable to make payments, they can see your assets as an alternative form of payment. Because the risk to them is diminished they are able to provide you with more attractive loans at a better rate.
You might think of a mortgage as a secured loan. The bank lends you money to buy a home and they use the home as a way to back up the loan. If you do not make your mortgage payments, the bank can seize your house.
Or you can think of a secured loan as a pawn shop that lends you the money you want but lets you still use the goods you pawned!
So which one is the right one for you? It’s a tough decision to make. In most cases, a secured loan will get you a better rate, so you just might prefer that.
However, perhaps you don’t have any assets available, or you don’t want to risk the seizure of certain assets if you are unable to make payments. In this case, you just might not mind paying a little more for the benefit of having an unsecured loan.
Both unsecured and secured loans are good options to have when you are doing your financial planning. You can use them to consolidate your outstanding bills, leverage your home investments, or get the things you need and want. And, with the choices between unsecured and secured loans, you have the benefit of being in total control of your financial destiny!
Monday, July 27, 2009
About Dormant Bank Accounts
Banking experts estimate that up to ฃ5bn may be sitting unclaimed in UK bank accounts that have gone 'dormant'. What does this mean, and could you be entitled to a share in this huge amount of idle money?
A bank account goes dormant when, in the words of the British Bankers' Association, a bank and a customer 'lose touch with each other'. What this usually means in practice is that a customer has either passed away or moved house, and the bank haven't been told and are unable to locate the account holder some time later.
If there are no transactions on an account over a period of around 12 months, the bank will write to the account holder at the last known address to ask them if they wish to keep the account open. If no reply is received, then the bank will change the status of the account to 'dormant'. This means that from now on, no statements, chequebooks or other correspondance will be sent out to the customer.
The money in the account will still earn interest at whatever the normal rate of that account is, and the bank will still keep track of the account balance and keep a record of the last known address of the holder.
There are two main reasons for an account being made dormant. The first and most obvious one is to save the banks the administration costs of sending out statements and the like when there is no activity on the account from month to month (other than that initiated by the bank itself, such as interest payments).
The more important reason however is to guard against identity fraud. If a bank continues to send statements to an address when the account holder is no longer there to receive them, it is all too easy for these documents to end up in the hands of fraudsters, who could use the sensitive information they contain to begin a campaign of ID theft.
Most dormant accounts will have very small balances, but some will inevitably contain a substantial sum, often those belonging to someone who has passed away. If you think you may be entitled to money held in a dormant account, you can make a claim by filling in a form available from the bank in question.
You will need to give your reasons for making a claim, such as that the account belonged to a close relative whose estate was passed to you. You will also need to prove your own identity, and your connection to the original account holder if applicable.
If the bank don't agree that you're entitled to take over the account, you have the right to pursue an appeal, where your claim is re-examined. If the appeal fails, you can take your claim to the Financial Ombudsman Service, whose decision is final and binding.
A bank account goes dormant when, in the words of the British Bankers' Association, a bank and a customer 'lose touch with each other'. What this usually means in practice is that a customer has either passed away or moved house, and the bank haven't been told and are unable to locate the account holder some time later.
If there are no transactions on an account over a period of around 12 months, the bank will write to the account holder at the last known address to ask them if they wish to keep the account open. If no reply is received, then the bank will change the status of the account to 'dormant'. This means that from now on, no statements, chequebooks or other correspondance will be sent out to the customer.
The money in the account will still earn interest at whatever the normal rate of that account is, and the bank will still keep track of the account balance and keep a record of the last known address of the holder.
There are two main reasons for an account being made dormant. The first and most obvious one is to save the banks the administration costs of sending out statements and the like when there is no activity on the account from month to month (other than that initiated by the bank itself, such as interest payments).
The more important reason however is to guard against identity fraud. If a bank continues to send statements to an address when the account holder is no longer there to receive them, it is all too easy for these documents to end up in the hands of fraudsters, who could use the sensitive information they contain to begin a campaign of ID theft.
Most dormant accounts will have very small balances, but some will inevitably contain a substantial sum, often those belonging to someone who has passed away. If you think you may be entitled to money held in a dormant account, you can make a claim by filling in a form available from the bank in question.
You will need to give your reasons for making a claim, such as that the account belonged to a close relative whose estate was passed to you. You will also need to prove your own identity, and your connection to the original account holder if applicable.
If the bank don't agree that you're entitled to take over the account, you have the right to pursue an appeal, where your claim is re-examined. If the appeal fails, you can take your claim to the Financial Ombudsman Service, whose decision is final and binding.
Tuesday, June 30, 2009
Cash Advance Loans Online - The Plus Side
Cash advance loans online can be a huge lifesaver when you find yourself in a bit of a pinch in between your paydays. So just what is a cash advance loan and how will it be helpful to you?
A cash advance loan (or payday loan) is a very short-term loan that carries extremely high interest rates. Generally, these types of loans last from a period of one to four weeks and you either write a check out that the company will cash when the loan is due or you would have to authorize the company to be able to make withdrawals out of your savings or checking account.
If you are in a bad credit situation when it comes to obtaining a loan, getting a cash advance loan may just be the answer you are seeking. Most all payday loan companies only require that you have either an active savings or checking account and have held your current job between 3-6 months and be able to prove how much you make in a month.
You can obtain your money very quickly when you decide to into applying for cash advance loans online. After you have provided the loan company with all of the information that they require and you are approved you are likely ti have your cash within 24 hours sometimes instantly depending on the company you are getting your loan through.
Getting a cash advance loan can assist you in making your credit score better. Just make sure that when you are getting an advance you make sure that the loan company reports to one of the three major credit agencies.
Now the next time that you are in a bind and need some cash quickly, if you are you sure you can meet the terms, applying for cash advance loans online would be a smart move.
A cash advance loan (or payday loan) is a very short-term loan that carries extremely high interest rates. Generally, these types of loans last from a period of one to four weeks and you either write a check out that the company will cash when the loan is due or you would have to authorize the company to be able to make withdrawals out of your savings or checking account.
If you are in a bad credit situation when it comes to obtaining a loan, getting a cash advance loan may just be the answer you are seeking. Most all payday loan companies only require that you have either an active savings or checking account and have held your current job between 3-6 months and be able to prove how much you make in a month.
You can obtain your money very quickly when you decide to into applying for cash advance loans online. After you have provided the loan company with all of the information that they require and you are approved you are likely ti have your cash within 24 hours sometimes instantly depending on the company you are getting your loan through.
Getting a cash advance loan can assist you in making your credit score better. Just make sure that when you are getting an advance you make sure that the loan company reports to one of the three major credit agencies.
Now the next time that you are in a bind and need some cash quickly, if you are you sure you can meet the terms, applying for cash advance loans online would be a smart move.
Saturday, June 20, 2009
Steps To Get Your Financial House In Order
Managing your finances may be easier than you think. That's because online banking offers the same services found at bricks-and-mortar institutions-plus many others.
For example, through online banking, customers can check their account balances, transfer funds, pay bills and more. And because of the convenience, online banking can make it easier to get your finances in order. Here's how:
• Eliminate clutter and help save the environment-Pay (and receive) your bills online and you can get rid of unnecessary paper, envelopes and stamps. You can also view images of your paid checks and account statements online.
• Simplify your Web life- Instead of bouncing from site to site to view and pay your bills, you can do it all through your bank's Web site-and save yourself the trouble of multiple log-ins and passwords while you're at it.
• Easily monitor your accounts-You can choose to receive e-mail alerts when checks are paid, deposits clear, bills are due, your account reaches a certain limit and more. Alerts also help you stay on top of recent account activity so you can detect and prevent fraud.
• Reduce your chances of fraud-A study released in January 2006 by Javelin Strategy & Research shows that Internet-related fraud incidences are less severe, less costly, and less prevalent than theft detected offline due to online account monitoring.
• Manage your investments-Invest and build your portfolio using helpful tools and resources online. You can also watch your retirement savings grow and decide how to invest your money.
Some banking sites take customer service even further-even if you're not a customer. That's because these sites serve as valuable "at your fingertips" resources for everything from current interest rates to protecting your accounts to retirement tips.
One Web site, wellsfargo.com, offers an added benefit for its customers called My Spending Report. This expense management tool gives customers a "big picture" view of their spending, combining payments and purchases from credit cards, check cards, checking accounts and online bill payments in one convenient place. My Spending Report automatically organizes these expenses into 19 categories, including gas, groceries, health care and entertainment.
For example, through online banking, customers can check their account balances, transfer funds, pay bills and more. And because of the convenience, online banking can make it easier to get your finances in order. Here's how:
• Eliminate clutter and help save the environment-Pay (and receive) your bills online and you can get rid of unnecessary paper, envelopes and stamps. You can also view images of your paid checks and account statements online.
• Simplify your Web life- Instead of bouncing from site to site to view and pay your bills, you can do it all through your bank's Web site-and save yourself the trouble of multiple log-ins and passwords while you're at it.
• Easily monitor your accounts-You can choose to receive e-mail alerts when checks are paid, deposits clear, bills are due, your account reaches a certain limit and more. Alerts also help you stay on top of recent account activity so you can detect and prevent fraud.
• Reduce your chances of fraud-A study released in January 2006 by Javelin Strategy & Research shows that Internet-related fraud incidences are less severe, less costly, and less prevalent than theft detected offline due to online account monitoring.
• Manage your investments-Invest and build your portfolio using helpful tools and resources online. You can also watch your retirement savings grow and decide how to invest your money.
Some banking sites take customer service even further-even if you're not a customer. That's because these sites serve as valuable "at your fingertips" resources for everything from current interest rates to protecting your accounts to retirement tips.
One Web site, wellsfargo.com, offers an added benefit for its customers called My Spending Report. This expense management tool gives customers a "big picture" view of their spending, combining payments and purchases from credit cards, check cards, checking accounts and online bill payments in one convenient place. My Spending Report automatically organizes these expenses into 19 categories, including gas, groceries, health care and entertainment.
Wednesday, June 10, 2009
The Fight Against Fraud Knows No Border
Canada and the United States share similar cultures, enthusiasm for sports and a common border.
Unfortunately, the border is proving to be no barrier to fraud schemes that target victims in both countries. Armed with the Internet and cell phones, con artists target victims-many of them older Americans-in these cross-border schemes. Using false names and electronic tricks, they hide who and where they really are.
The good news is that the U.S. Postal Inspection Service is working with Canadian law enforcement to stop these crimes. Prevention, however, is still the best medicine. Chief Postal Inspector L.R. Heath encourages consumers to protect themselves by following these tips:
• Be wary of anything that promises large sums of money, such as sweepstakes or lottery winnings, in exchange for your advance payment, donation or investment.
• Don't be pressured into making a decision about an offer. Check it out first.
• Be cautious about businesses that try to conceal their mailing addresses and phone numbers, and evade questions about their operations.
• Be aware that if you respond to even one of these "offers," your name will be added to a "mooch" list by these criminals. These are contact lists, similar to those used by legitimate businesses, that track people who have fallen for scams in the past. They are bought and sold by these criminal enterprises and you can count on being targeted again.
The Postal Service's Consumer Advocate Delores J. Killette said, "Older Americans need to be educated to avoid becoming victims of consumer fraud and convinced that it's okay to say 'no' to solicitations. But their children, many of whom are baby boomers, also need to play a role. They need to keep an eye on elderly parents and grandparents to protect them from scammers. Fighting fraud truly is a family matter." Educated families are the best defense against these fraudsters-if they recognize the warning signs.
Unfortunately, the border is proving to be no barrier to fraud schemes that target victims in both countries. Armed with the Internet and cell phones, con artists target victims-many of them older Americans-in these cross-border schemes. Using false names and electronic tricks, they hide who and where they really are.
The good news is that the U.S. Postal Inspection Service is working with Canadian law enforcement to stop these crimes. Prevention, however, is still the best medicine. Chief Postal Inspector L.R. Heath encourages consumers to protect themselves by following these tips:
• Be wary of anything that promises large sums of money, such as sweepstakes or lottery winnings, in exchange for your advance payment, donation or investment.
• Don't be pressured into making a decision about an offer. Check it out first.
• Be cautious about businesses that try to conceal their mailing addresses and phone numbers, and evade questions about their operations.
• Be aware that if you respond to even one of these "offers," your name will be added to a "mooch" list by these criminals. These are contact lists, similar to those used by legitimate businesses, that track people who have fallen for scams in the past. They are bought and sold by these criminal enterprises and you can count on being targeted again.
The Postal Service's Consumer Advocate Delores J. Killette said, "Older Americans need to be educated to avoid becoming victims of consumer fraud and convinced that it's okay to say 'no' to solicitations. But their children, many of whom are baby boomers, also need to play a role. They need to keep an eye on elderly parents and grandparents to protect them from scammers. Fighting fraud truly is a family matter." Educated families are the best defense against these fraudsters-if they recognize the warning signs.
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