Personal Finance News Saturday 9/29

Phil's Personal Finance Tip of the Day:

What Would You Give Up to Buy Your Dream Home?
By Marilen Cawad | TheStreet.com – Fri, Sep 28, 2012 12:52 PM EDT

NEW YORK (TheStreet) -- With interest rates at record lows, it's hard to ignore the constant "buy now" real estate pitches. If you're renting and thinking now is a good opportunity to see what house you can afford, you are probably also thinking about what you may have to give up to buy that house. In a survey released by Century 21 Real Estate, renters said they are willing to contribute less to their 401(k) to buy their dream home. Not a good idea, says Eve Kaplan, a financial adviser with Kaplan Financial Advisors in Berkeley Heights, N.J. "The problem we often face as planners is convincing folks to postpone the 'here and now,' including enjoyable things, and focusing more on the future," Kaplan says. "It is really difficult to live on Social Security, which never was designed to be the sole source of retirement savings." Americans are just not saving enough for retirement.

According to a recent BlackRock survey, 58% of all 401(k) plan participants were not saving the maximum with their plans. The survey also found that eight in 10 retirees regret they did not save more for retirement through their 401(k) plans.  "Contributing less to one's 401(k) could often mean sidestepping a valuable company match," Kaplan says. "It's OK to sacrifice for a home, but a better sacrifice would be to forgo the dream home -- gourmet kitchen, media room, etc. -- and retain 401(k) deferrals."

 

Instead of reducing or stopping your 401(k) contributions, Ron Howard, managing principal at Siena Wealth Management in San Jose, Calif., recommends reducing or eliminating some other expenses.

To read the entire article from Marilen Cawad | TheStreet.com:
http://finance.yahoo.com/news/buy-dream-home-163800979.html

Inspirational Quotes@Inspire_Us from Twitter:
Courage is knowing what not to fear. -Plato

Personal Finance News Friday 9/28

Phil's Personal Finance Tip of the Day:

How to get the best mortgage interest rate

Want to qualify for the best mortgage interest rates? You'll want to know these five things that impress lenders.

By Terence Loose | Yahoo! Homes – Thu, Sep 13, 2012 6:27 PM EDT

Have you been thinking of buying a home or refinancing your mortgage, but wonder what it will take to qualify for those great mortgage interest rates you've heard touted in the press?

Well, the quick answer is that it will take a pretty impressive financial history, says Chris Boulter, president of Val-Chris Investments, Inc., a California company specializing in residential and commercial loans.

"You're going to have to have very good credit and a stable work history," he says. That could start you toward getting a mortgage interest rate on a 30-year fixed rate loan that, as of September 6th, 2012, was a low 3.65 percent, according to Mortgage News Daily, an organization that provides housing news and analysis.

Boulter adds that if you don't qualify for the lowest rates, you could still qualify for rates that are typically a percentage point higher, which is still very good, historically speaking.
[Want to see today's rates? Click to compare rates for multiple lenders now.]

So don't give up just because your credit isn't perfect. Instead, read on for details on how to qualify for the best mortgage interest rates and what to do if you don't qualify.

Requirement #1 - Great Credit

Do you pride yourself on paying your bills on time? Good news. Mortgage lenders like to reward responsible bill paying with their best interest rates, says Boulter. In fact, he says credit score is the most important piece of information for the lender.

"Your credit score is the first thing a bank is going to look at," says Boulter. "They need to see a credit score in the very good to excellent category in order to qualify you for the most favorable rates."

And if you're wondering what very good to excellent is, Boulter says a score of 720 or above hits the mark, according to the Fair Isaac (FICO) scale, which most banks use. That scale, by the way, runs from a low of 300 to a high of 850, according to the Fair Isaac Corporation.

Want to find out what your credit score is? Good news: you are entitled to one free copy of your credit score every year. You can order it at securemycreditreport.org.

And if you don't like the results, there are some ways to improve your score. According to the FICO website, some tips include:

• Set up payment reminders so you always pay your bills on time. Paying bills on time is one of the biggest factors in your credit score.
• Reduce the amount you owe. Yes, this is tougher to do than say, but this is another biggie. Start by using your credit cards less.

To read the entire article from Yahoo Homes:
http://homes.yahoo.com/news/tips-for-best-mortgage-rates.html

Scripture of the Day from Dave Ramsey.com:
Romans 5:4–5 — Not only that, but we rejoice in our sufferings, knowing that suffering produces endurance, and endurance produces character, and character produces hope, and hope does not put us to shame...

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Thursday 9/27

Phil's Personal Finance Tip of the Day:

The Key to Retirement Success is Simple

by Chris Kissell

Published September 26, 2012

Bankrate.com

As the clock ticks and retirement looms, millions of Americans are worried. Thanks to a combination of overspending, undersaving and damage caused by the recent financial crisis, too few have saved too little for their golden years. The crisis has also caused retirement planning to be less of a priority for most citizens who are trying to make ends meet.

Alfonso Canella says the resulting retirement crisis should be obvious to everyone. The senior lecturer at the Brandeis International Business School in Waltham, Mass., says most workers will build their retirement on the principal of their savings, not on investment returns. Retirement planning should not be pushed to the bottom of your to-do list. His message is that people must start saving immediately and must squirrel away more than they think they will need.

As he says, "It's that simple."

The recent financial crisis has had a major impact on all aspects of the retirement system -- defined contribution plans, such as 401(k) plans, as well as defined benefit plans, or pensions.

What is most problematic from your point of view?

The largest problem is the woeful undersaving in the private and public sectors. If you have a defined contribution plan, or DC, which is the plan where you put away pretax dollars into, say, a 401(k) plan. These plans, which are most prevalent in the private sector, allow a worker to contribute up to $22,500 per year pretax. (Editor's note: The limits are $17,000 for workers up to age 50 and $22,500 for workers 50 and older.)

Read more: http://www.foxbusiness.com/personal-finance/2012/09/26/key-to-retirement-success-is-simple/#ixzz27hF3zfWP

Scripture of the Day from Dave Ramsey.com:
Mark 9:23 — Everything is possible for one who believes.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Wednesday 9/26

Phil's Personal Finance Tip of the Day:

'Free' Checking Costs More-Banks Boost Minimum-Balance Rules, Fees as New Regulations Squeeze Revenue

By Robin Sidel | The Wall Street Journal – Mon, Sep 24, 2012 11:37 AM EDT

 

So-called free checking accounts are more expensive than ever, as the lumbering economy and new regulations squeeze bank revenues.

 

To avoid a monthly fee, bank customers in the U.S. must keep an average minimum balance of $723 in checking accounts that pay no interest—up 23% over last year, according to a new survey from data provider Bankrate Inc., which analyzed 477 checking accounts at 247 banks and thrifts. The average monthly fee on noninterest checking accounts rose 25% to $5.48, also a record.

Banks have raised fees on automatic teller machines, overdrafts and checking accounts for customers who don't meet new standards tied to account balances or regular deposits.

A public outcry last year over the prospect of new monthly fees for using bank debit cards forced big banks to retreat from the idea. But a soft economy, low interest rates and new government rules that followed the financial crisis are prompting banks to flex their muscles on existing fees.

Martha Vockley, of Reston, Va., would like to put some excess cash into a high-yielding online bank account. Instead, she stashes the extra money in her interest-bearing checking account at SunTrust Banks Inc. (STI) to meet a minimum-balance requirement and avoid a $17 monthly fee.

"They have a lot of my money. It seems like this is overkill," said Ms. Vockley, 53 years old. Switching banks, she said, would be too time-consuming.

To read the entire article from The Wall Street Journal/Yahoo Finance:

http://finance.yahoo.com/news/-free--checking-costs-more.html

 

Scripture of the Day from Dave Ramsey.com:

Proverbs 10:4 — Lazy hands make for poverty, but diligent hands bring wealth.

 

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Tuesday 9/25

Phil's Personal Finance Tip of the Day:
Should You Wait on IRA Donations?
By ANNE TERGESEN/The Wall Street Journal

Many experts are betting that Congress will revive a popular tax provision that allows those ages 70½ or older to save on taxes while donating assets in their individual retirement accounts to charity.

But if you intend to give money to charity this year, don't wait for Congress to act.

The charitable IRA rollover provision, which expired at the end of last year, allowed IRA owners ages 70½ or older to donate up to $100,000 of their IRA assets to a charity. The donor didn't receive a tax deduction for the contribution. But he or she didn't have to report the IRA withdrawal as taxable income, either. And the contribution could count toward the annual required minimum distribution, or RMD, that people 70½ or older must take from a traditional IRA.

For many taxpayers, this "leads to a better outcome" than taking a tax deduction for a charitable contribution, says Ed Slott, an IRA expert in Rockville Centre, N.Y.

Why? By reducing your adjusted gross income, the tax provision may help you keep it below the thresholds at which you could lose some of your deductions and other tax benefits, or become subject to higher Medicare premiums and taxes on your Social Security benefits.

To read the entire article from The Wall Street Journal:
http://online.wsj.com/article/SB10000872396390444450004578002112287693002.html?mod=WSJ_PersonalFinance_PF14


Scripture of the Day from Dave Ramsey.com:
Philippians 4:13 — I can do all things through Christ who strengthens me.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Monday 9/24

Phil's Personal Finance Tip of the Day:

Four common refinancing mistakes to avoid

Learn more about four common mistakes homeowners make when refinancing - and how to avoid them.

By Terence Loose | Yahoo! Homes – Thu, Sep 13, 2012 6:18 PM EDT

 

Are you thinking of refinancing your home mortgage but afraid you'll screw it up? While there are a number of common mistakes people make, take solace in the fact that these slip-ups can be avoided.

First things first, you want to make sure that refinancing is right for you, says Fred Arnold, a loan professional and treasurer of the National Association of Mortgage Brokers (NAMB).

"It has to make financial sense. It has to save you money and work for your future financial goals," says Arnold. For example, you want to ensure that with the new loan's terms, you'll save money. Another thing to consider is how long you plan to stay in your home. According to Arnold, to cover the cost of refinancing, it'll need to be about two years or more.

[Click to compare mortgage rates from multiple lenders on Yahoo! Homes now.]

So if refinancing sounds like a good option for you, read on for four common mistakes and advice for avoiding them.

Mistake #1: Failing to Shop Lenders

America is the land of freedom. And freedom usually means choice.

So when it comes to a decision as big as refinancing your home mortgage, the last thing you want to do is give up that choice by going with the first loan you're offered. After all, you could be talking about hundreds of thousands of dollars.

That said, don't expect a huge amount of options when it comes to comparing interest rates.
"Rates right now are phenomenally low," says NAMB President Don Frommeyer. "But there's not a lot of difference between lenders. Maybe an eighth of a point. "But that eighth of a point (or .15 percent) could add up over time.

Below is one instance that shows why it's still important to shop. Our example, which we plugged into mortgagecalculator.com, assumes a person is borrowing $300,000.

To read the entire article from Terence Loose / Yahoo Homes:
http://homes.yahoo.com/news/four-refinancing-mistakes-to-avoid.html


Inspirational Quotes@Inspire_Us from Twitter:
There is a difference between knowing the path & walking the path. -Morpheus

 

Personal Finance News Saturday 9/22

Phil's Personal Finance Tip of the Day:

Believing in yourself is more than half the battle

September 13, 2012 By Harvey Mackay

 

When I am interviewing potential employees, one of the traits that I look for is confidence. I’m not referring to hubris or arrogance, but someone who understands his or her ability and is not afraid to use it.

With the college football season just starting, it reminds me of a revealing story my good friend Lou Holtz told me when I helped bring him in to coach the Gophers football team back in 1984.

“I was at a convention just after taking the job at North Carolina State,” Lou said, “and I was talking to Wayne Hardin, who was coach at Temple.”

Hardin asked, “Lou, do you think you’re the best coach in the country?”

Lou answered, “No way. I’m not even in the top 10.”

“Well,” Hardin said, “North Carolina State hired you because they think you are. If you don’t act like you are, you shouldn’t even be coaching.”

According to First Draft, a newsletter by Ragan Communications: “Confidence doesn’t come naturally to most people. Even the most successful people have struggled with it in their careers.

The good news is that you can develop it, just like any muscle or character trait, if you’re willing to work hard at it. The better news: These tips can help you strengthen your confidence.

Here’s what to try:
• “Don’t compare yourself to others. Focus on your own achievements and ambitions, not anyone else’s. Other people will always be more successful than you at different stages of your life and career, and obsessing about them will only send your confidence plunging. Concentrate on identifying and improving your own unique strengths and skills.
• “Track your success. Keep a log of your accomplishments, large and small. Recording victories on a daily basis will make you feel more successful, and looking over your progress will boost your self-esteem. In addition, reviewing your achievements should give you some good ideas for what to work on next.
• “Practice being assertive. Take an active role in pursuing success, no matter how anxious you feel.

Start by visualizing situations where you feel nervous, and picture yourself being assertive. Make these scenarios as vivid as you can so you’ll be ready for them in real life.

Check your body language in a mirror, and practice good posture and a self-assured expression. Then go out and take a few chances, starting with low-risk situations. Once you’ve survived those, you can move on to bigger personal challenges. You may be surprised by how well practice makes perfect.”

A few more tips I’d like to add:
• Accept that failure is not the end of the world. Learn from your mistakes. Understand that the pursuit of perfection often limits your accomplishments. Many great achievements have been far from perfect, but were more than good enough to be proud of.
• Step out of your comfort zone. Push yourself beyond your known limits, and see how successful you can be. When you realize what you can accomplish, your confidence soars. Your potential is unlimited. You are the only one who can limit it.
• Set goals. Decide what you want to accomplish, both in your career and personal life. Reaching goals is a tremendous confidence builder. It also spurs you to set higher goals.
• Prepare to succeed. Keep improving your skills and you will build confidence. Knowing that you are capable is central to a positive self-image. Take care of both your body and your mind.

To read other excellent columns from Harvey Mackay.com:
http://www.harveymackay.com/columns/

Mackay’s Moral: Your mind is your most powerful ally in developing confidence.

Personal Finance News Friday 9/21

Phil's Personal Finance Tip of the Day:

Cracking Your PIN Code: Easy as 1-2-3-4

By Lisa Scherzer | The Exchange – 2 hours 55 minutes ago

 

If you lost your ATM card on the street, how easy would it be for someone to correctly guess your PIN and proceed to clean out your savings account? Not long, according to data scientist, Nick Berry, founder of Data Genetics, a Seattle technology consultancy.

 

Berry analyzed passwords previously from released and exposed password tables and security breaches and filtered the results to just those that were exactly four digits long [0-9]. There are 10,000 possible combinations that the digits 0-9 can be arranged to form a four-digit code. Berry analyzed those to find which are the least and most predictable. He speculates that if users select a four-digit password for an online account or other web site, it's not a stretch to use the same number for their four-digit bank PIN codes.

 

What he found, he says, was a "staggering lack of imagination" when it comes to selecting passwords. Nearly 11% of the 3.4 million four-digit passwords he analyzed are 1234. The second most popular PIN in is 1111 (6% of passwords), followed by 0000 (2%). (Last year SplashData compiled a list of the most common numerical and word-based passwords and found that the "password" and "123456" topped the list.)

 

Berry says that a whopping 26.83% of all passwords could be guessed by attempting just 20 combinations of four-digit numbers (see first table). "It's amazing how predictable people are," he says.

 

We don't like hard-to-remember numbers and "no one thinks their wallet will get stolen," Berry says.

 

To read the entire article from The Exhange/Yahoo Finance:

http://finance.yahoo.com/blogs/the-exchange/cracking-pin-code-easy-1-2-3-4-130143629.html

 

Inspirational Quotes@Inspire_Us from Twitter:
The superior man is modest in his speech, but exceeds in his actions. - Confucius

 

Personal Finance News Thursday 9/20

Phil's Personal Finance Tip of the Day:

Get a business loan without bank hassle

Crowdfunding offers new twist on traditional P2P lending

By Clark Howard

 

If you have a business idea and you can't seem to get any funds from a bank, there are more and more alternatives to try. I used to recommend that people check out traditional peer-to-peer (P2P) lending sites, but now some sites are morphing into something new called "crowdfunding."

P2P lending basics

Let's start with the basics, though. P2P lending is a way to cut the banks out of the equation. It lets people go online to borrow and lend money directly to each other. Prosper.com is the granddaddy in the field, and LendingClub.com has been growing nicely in recent times too.

Here's how P2P lending works for a potential borrower: You agree to a credit check and to disclose your debt-to-income ratio. Based on that information, you're assigned what amounts to a credit risk score. Taking that score into account, you're assigned a letter grade (from AA to E) and an APR befitting the credit risk you pose to potential lenders.

Lenders protect their interests in P2P lending by buying little tiny slices and dices of multiple loans, instead of pouring all their dough into one big loan. That way if any given borrower defaults, a lender only loses a fraction of his or her money, not the whole amount.

In the early days of P2P lending, companies like Prosper and LendingClub didn't set high enough standards about who could borrow and they didn't adequately communicate to investors (lenders) about the level of risk involved. So the business model kind of blew up in everybody's face. Now the standards have gotten more refined and more sophisticated with time.

It's gotten to the point where Prosper claims the average return earned by lenders is, after expenses, right at 10%.

 

To read the entire article from Clark Howard.com:

http://www.clarkhoward.com/news/clark-howard/personal-finance-credit/crowdfunding-offers-new-twist-p2p-lending/nCtcp/

Please listen to the Clark Howard show 1-3 EST

http://www.clarkhoward.com/

 

Inspirational Quotes@Inspire_Us from Twitter:
A life is not important except in the impact it has on other lives. -Jackie Robinson

Personal Finance News Wednesday 9/19

Phil's Personal Finance Tip of the Day:

How to Be Prepared for a Life Crisis

by Dave Ramsey

Dave Says

Published September 18, 2012

FOXBusiness

 

Dear Dave,

One of my relatives just discovered she has cancer. She’s a single mom with two young kids, and I’m not sure if she’s prepared to face something like this. What are the best steps she can take financially at this point?
Shannon

Dear Shannon,

I’m really sorry to hear about this. I know cancer is a scary thing to hear, but please remember to pray and be there for her all you can. God willing, things can still turn out okay.

When people ask if a person has their affairs in order, they’re usually asking a couple of different questions. Are you right with God? Do you have life insurance and a will? Another important thing is to have all the paperwork of your life organized and in a safe place, so someone you trust can handle the details if things don’t turn out well.

Everyone should have a good term life insurance policy in place. My advice is to have a policy worth 10 times your annual income. When it comes to a will, make sure it’s state specific. Probate and estate regulations are not federal laws, they’re state laws. So any will should be drawn up according to guidelines for the state in which you live.

Make sure, too, that she has made arrangements for any minor children. It might be a good idea to sit down and talk with two or three trusted family members or close friends and decide who will take them if the worst should happen. Whoever this is should be incredibly responsible and caring, and willing to love and raise these kids as if they were their very own.

Good luck, Shannon. And God bless you and your family.
-Dave

Read more: http://www.foxbusiness.com/personal-finance/2012/09/18/how-to-be-prepared-for-life-crisis/?link=mktw#ixzz26w0OuXuG

 

 

Scripture of the Day from Dave Ramsey.com:

Ecclesiastes 2:10 — My heart took delight in all my labor.

 

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

 

 

 

 

Personal Finance News Tuesday 9/18

Phil's Personal Finance Tip of the Day:

Five tips to help lower your Internet bill
Check out these five tips that could help you save on your home Internet costs.

By Andrea Duchon | Yahoo! Homes – Fri, Sep 7, 2012 3:53 PM EDT

Between checking work and personal email, posting on social media sites, and researching local restaurants, having access to the Internet is a very real modern-day necessity.

But that doesn't mean you have to pay an arm and a leg for it.

According to Michael Matthews, founder of The Mobile Culture, a tech and mobile consulting firm based in New York City, "there are many options for reducing your monthly Internet costs. It just depends on what you use it for, how often you need access, and what companies are available in your area."

Intrigued? Read on to learn about five tips for lowering your Internet costs.

Tip #1 - Shop Around

Because there's often a rush to get Internet installed, it's common for people to sign up with the largest provider instead of shopping around for the best deal, says Matthews.

But when you take time to research other providers and compare prices, you could potentially uncover some savings.

For starters, ask your friends and neighbors about their experience and satisfaction with their current Internet providers. After you have the name of a few different companies, research their rates and contact them to see if they have any new customer discounts.

[Looking to change Internet providers? Shop around for quotes now.]

Even if you don't end up switching, you can become a more informed customer by learning more out about Internet service options, adds Matthews.

Tip #2 - Bundle Up

Got a landline and cable? Consider bundling these services with your Internet for potential savings.

Many providers offer discounts to customers that are willing to bundle Internet, cable, and phone services together all on one bill.

[Interested in bundling your Internet, cable, and phone services? Click to compare rates now.]

According to "The Benefits of Bundling and Bargaining" - an article from Consumer Reports, a nonprofit consumer-awareness organization - one in three surveyed Consumer Reports readers chose to bundle their TV, Internet, and home phone services.

Besides saving money by bundling their digital services, surveyors liked the convenience of having only one bill from one provider.

To read the entire article from Andrea Duchon | Yahoo! Homes:
http://homes.yahoo.com/news/tips-to-save-on-internet.html

Scripture of the Day from Dave Ramsey.com:
Matthew 6:34 — Therefore do not worry about tomorrow, for tomorrow will worry about itself, Each day has enough trouble of its own.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.


 

Personal Finance News Monday 9/17

Phil's Personal Finance Tip of the Day:
The ins and outs of homeowner's insurance
By Leonard Baron | Zillow – Fri, Sep 14, 2012 5:22 PM EDT

One of the things people rarely pay much attention to when they buy a property is whether they have adequate dwelling hazard and liability insurance, otherwise known as homeowner's insurance.

Getting a policy is easy and almost always obtained when someone closes escrow on their home or rental property. But is it the right type and amount of insurance? Most people reading this article probably would admit that they have no idea about their homeowner's coverage, but they should know, considering it protects their largest asset.

Let's run through a few basics so that you can help yourself understand your policy and ensure you have the proper coverage in place for your needs. Go head and pull out your insurance policy binder, it's about 40 pages thick, then flip to the third or fourth page that contains line items like: Building/Dwelling, Separate Structures, Personal Property, Loss of Use, Medical, and Extended Replacement. This section also includes corresponding amounts of maximum coverage, which tells you how much coverage you have in case of a loss. You need to look at each line item of coverage and discuss with your agent if you believe that amount is sufficient.

To read the entire article from Leonard Baron, MBA, CPA, who is a San Diego State University Lecturer, a Zillow Blogger, the author of several books including "Real Estate Ownership, Investment and Due Diligence 101 – A Smarter Way to Buy Real Estate", and loves kicking the tires of a good piece of dirt! See more at Professor Baron.com:

http://homes.yahoo.com/news/the-ins-and-outs-of-homeowner-insurance.html

Scripture of the Day from Dave Ramsey.com:
1 Corinthians 13:11 — When I was a child I talked like a child, I thought like a child, I reasoned like a child. When I became a man, I put the ways of childhood behind me.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Saturday 9/15

Phil's Personal Finance Tip of the Day:

The Riskiest Places to Use Your Credit Card
By Constance Parten | CNBC – Fri, Sep 14, 2012 2:14 PM EDT

Even if you use the utmost caution, you can still be a victim of credit card fraud. Credit card companies and banks are more and more often putting the onus of catching phony or incorrect credit card charges on the consumer.

The most important thing is to check your billing statment, of course. And there are organizations like Creditcards.com that offer tips on how to keep your cards safe as well. Here, we take a look at 10 of the riskiest places you might use your card, according to Creditcards.com , and what you can do to avoid the dangers.

Non-bank-owned ATMs
Encryption at these ATMs is often not as good as at bank ATMs, meaning some locations are just not as safe. These ATMs also are more likely to be hacked. And in some cases, people have put up devices that look like ATMs but don't give out cash. Instead, they are just card-skimming devices aimed at stealing your credit card or debit card information.


To read the entire article from Constance Parten | CNBC
http://finance.yahoo.com/news/the-riskiest-places-to-use-your-credit-card.html


Inspirational Quotes@Inspire_Us from Twitter:
Behind me is infinite power, before me is endless possibility, around me is boundless opportunity. - Author Unknown

Personal Finance News Friday 9/14

Phil's Personal Finance Tip of the Day:

10 Least Tax-Friendly States for Retirees
By The Kiplinger Washington Editors | Kiplinger

Some states offer attractive tax benefits to woo retirees.

Then there are these ten states that are stingy with tax breaks for retirees. Some don't offer any breaks on Social Security benefits -- a significant source of most retirees' income. Many of these states also have no special tax treatment for other types of retirement income. Others impose higher-than-average taxes across the board. And many have either an estate tax or inheritance tax.

[More from Kiplinger: How to Retire Rich Starting at Any Age]

Property taxes were also a factor. High property taxes are the single biggest reason retirees living on a fixed income decide to move elsewhere, says Tom Wetzel, president of RetirementLiving.com. John Brady, editor of TopRetirements.com, agrees: "The most significant tax threat to most retirees is the property tax because it is based on the value of your home and bears no direct relation to your income."

To read the entire article from Kiplinger's:
http://finance.yahoo.com/news/10-least-tax-friendly-states-for-retirees.html


Scripture of the Day from Dave Ramsey.com:
Titus 2:6 — Similarly, encourage the young men to be self-controlled
 
Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Thursday 9/13

Phil's Personal Finance Tip of the Day:
What accounts are insured in case of bank failure?
By CNBC

Walk into your bank's neighborhood branch or visit their website and you're offered a choice of the usual checking and savings accounts. Options also include slightly more sophisticated products - mutual funds, annuities, insurance policies and brokerage accounts.

Banks used to be far more limited in their offerings. But with the Financial Services Modernization Act of 1999, longstanding barriers that had prevented banks from affiliating with securities and insurance firms were removed. The change allowed banks to operate as holding companies that could engage in other financial activities through non-banking subsidiaries.

"It broke down the walls that existed between those institutions," says Gerri Walsh, vice president for investor education at the Financial Industry Regulatory Authority, the largest independent regulator of securities firms. Many institutions now offer federally insured savings accounts and certificates of deposit under the same roof as uninsured products such as mutual funds.

So how do you sort out which of your accounts are insured in case of bank failure?

To read the entire article from Yahoo Finance/CNBC:
http://finance.yahoo.com/news/bank-accounts-really-insured-175456188.html

Inspirational Quotes@Inspire_Us from Twitter:
When you believe in a thing, believe in it all the way, implicitly & unquestionably. -Walt Disney

Personal Finance News Wednesday 9/12

Phil's Personal Finance Tip of the Day:

Colleges that Lead to the Most and Least Debt
Students graduated from these universities owing between $5,000 and $47,000 in 2011

By Katy Hopkins | U.S.News & World Report LP

The U.S. News Short List, separate from our overall rankings, is a regular series that magnifies individual data points in hopes of providing students and parents a way to find which undergraduate or graduate programs excel or have room to grow in specific areas. Be sure to explore The Short List: College and The Short List: Grad School to find data that matters to you in your college or grad school search.

Students at Princeton University not only attend one of the best National Universities in the country, they also are likely leaving school with less debt than most of their peers.

Members of Princeton’s class of 2011 who borrowed for school graduated with an average of $5,000 in debt, the school reported to U.S. News. That’s the lowest class average of any National University, and well below the national average of $24,445.

Of the 270 ranked colleges in the U.S. News 2013 Best National Universities, 229 reported indebtedness data. Other highly ranked schools are comparatively good deals, too: Class of 2011 borrowers left Harvard University owing $11,780, and Yale University grads shouldered $8,940.

[Explore the U.S. News 2013 Best Colleges rankings.]

It’s not just the top schools that were the most likely to graduate students with low debt in 2011, however. San Diego State University, ranked 165 among National Universities, sent its student borrowers off with an average of $16,400 in debt, and at Old Dominion University in Virginia, students left owing an average of $16,500. In the U.S. News rankings, Old Dominion received a “Rank Not Published” (RNP) designation, signifying a school that falls in the bottom quarter of the rankings. U.S. News does not publish the numerical rankings of RNP schools.

Several RNP schools also sent their students off with the highest levels of debt in 2011. Clark Atlanta University, which received a RNP designation, graduated the most-indebted class of borrowers in 2011. Of the 2011 class, 94 percent of students borrowed for school and graduated owing an average of $47,066.

To read the entire article from US News & World Report:
http://finance.yahoo.com/news/colleges-that-lead-to-the-most-and-least-debt.html


Inspirational Quotes@Inspire_Us from Twitter:
Good instincts tell you what to do long before your head has figured it out. - Michael Burke

Personal Finance News Tuesday 9/11

GOD BLESS ALL OF THOSE LOST ON 9/11 AND ALL OF OUR TROOPS LOST IN FIGHTING THE WAR ON TERRORISM IN THE YEARS AFTERWARD. 

Phil's Personal Finance Tip of the Day:

Shop for these items now to net big savings
By Jeanette Pavini | MarketWatch – Mon, Sep 10, 2012 1:32 PM EDT

Award-winning broadcast journalist and author Jeanette Pavini writes the Buyer Beware column for MarketWatch and wants to hear your stories, questions, problems and complaints. Write to her at BuyerBewareMKTW@gmail.com.

September isn’t just the month for heading back to school and work at the end of summer vacation, it’s the best month of the year to save a bundle on five popular items. Here’s what to buy, how to save the most and even how to keep saving after you’ve made your purchase.

Luggage
September is an in-between time for travelers. Summer vacation is over and holiday travel is still a distant thought, so luggage tends to go on sale.

When it comes to luggage, do your research and invest in a quality bag, rather than just looking for the lowest price tag. Quality bags are usually made from durable nylon or leather, with flexible framing, sturdy zippers, and fully rotating, or spinning, wheels. If you are purchasing luggage online, check for coupon codes. At the very least, you can find free shipping.

Lightweight luggage should be a top priority for consumers to help avoid increasing airline fees. In 2011, airline revenue for baggage fees reached just over $3.36 billion, a significant increase from the $464 million just four year prior in 2007.

Wine
It’s harvest season for most North American and European wineries, which means it’s time to move inventory. Winemakers and distributors don’t want to have too much surplus on hand, so now you will find some of the best prices. If you enjoy wines from Australia, South America and other spots below the equator, you have about six months to go until harvest season.

Some grocery or drugstores offer discounts when you buy a case, typically an additional 10%. You may also find better value when you buy wines from lesser-known regions or less popular varieties. Chardonnay is the most popular table wine, followed by Cabernet Sauvignon, according to The Wine Institute.

Grills
As we wrap-up the final days of summer, stores are saying goodbye to grilling season, and sending barbecues to the sale section. While consumers welcome the low prices, they aren’t necessarily saying goodbye to their own grills. Some 62% of consumers say they grill year-round, according to a survey by the Hearth, Patio and Barbecue Association.

Top priorities for people looking for a grill? An easy ignition system and large grilling surface. These days more households own a gas grill than a charcoal grill. Gas grills fire up more quickly and eliminate charcoal costs, but some foodies feel you sacrifice flavor. There are grills that run on charcoal, but have a built in propane system to get things started, giving you the best of both worlds: speed and flavor. Plus, you don’t have to use lighter fluid, which can affect flavor and emits fumes.

To read the entire article from Jeanette Pavini | MarketWatch:
http://finance.yahoo.com/news/shop-items-now-net-big-040145910.html

Scripture of the Day from Dave Ramsey.com:
Proverbs 11:17 — A kind man benefits himself.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com. 

Personal Finance News Monday 9/10

Phil's Personal Finance Tip of the Day:

10 Things You Should Know About Your Financial Adviser
By CNBC

Choosing an adviser could be the most important financial decision you make in your lifetime. The adviser you choose may mean the difference between financial freedom or paying wasted fees and, in some cases, becoming a victim of fraud.

With so many candidates from which to choose, you need to learn some of the industry jargon, understand the options and define your needs - much like you would with any other professional service.

Here are 10 things the Securities and Exchange Commission, as well as many financial planners, say you should know.

See this slideshow: 8 Ways to Avoid Financial Abuse

1. They're not all pros.

Anyone can call themselves a financial planner, but that doesn't mean they're an expert investment adviser. So look for experience and credentials.

Check out the person's background and designations at the SEC and FINRA websites. You probably want a certified financial planner, CFP, at the very least, someone who has passed rigorous standardized exams about managing personal finances.
[ More From CNBC: Teens - Mom and Dad Will Leave Me Enough to Retire ]

2. An investment adviser may not be a financial planner.
Most financial planners are also investment advisers, but not all of them. They may be able to recommend some or all of the range of products out there: stocks, bonds, mutual funds, exchange traded funds. They may not, however, be able to assist you in other aspects of financial planning: insurance, taxes, retirement and estate planning.

Either is fine, depending upon your needs. Find out the professional's limitations, if any. If you're just starting out or are not a "do-it-yourselfer," a financial adviser who can offer you all types of services and products, as well as a comprehensive financial plan, may be the way to go.

To read the entire article from CNBC:
http://finance.yahoo.com/news/10-things-know-financial-adviser-175750420.html

Scripture of the Day from Dave Ramsey.com:
Ephesians 4:16 — From him the whole body, joined and held together by every supporting ligament, grows and builds itself up in love as each part does its work.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Saturday 9/8

Phil's Personal Finance Tip of the Day:

8 Opportunities in Your Paycheck You May Be Missing

By Erik Carter | Forbes – Thu, Sep 6, 2012 6:17 PM EDT

 

When it comes to our paycheck, we tend to focus on the bottom line and think about how we’ll spend or save that money. But some of the most important decisions for our financial future are among the myriad of deductions above that line. Unfortunately, they’re often hastily determined in a flurry of paperwork when we first start a new job and are never revisited.

With summer coming to an end and open enrollment coming up for many employers, this is as good a time as any to take a closer look at your paycheck. In fact, the American Payroll Association decided to designate this week as National Payroll Week, which is a campaign to help American employees better understand their paychecks and their payroll-driven benefits. Let’s take a look at some of those deductions and how they can affect your financial well-being:

Tax Withholding

Estimated Payments: Having tax withheld from your paycheck allows you avoid penalties on not paying enough taxes throughout the year.

Pitfalls to Avoid: Having too much tax withheld means providing a no-interest loan to Uncle Sam. You can use the IRS’s withholding calculator, which will be available starting in mid-September, to estimate how many allowances to declare.

[More On Forbes: 10 Common Money Management Mistakes That You’re Probably Making]

Retirement Plans

Employer Match: If you’re fortunate enough to have an employer that matches part of your contributions, you’ll want to try to contribute at least enough to max the match. Otherwise you’re leaving free money on the table.

Tax Deferral: Pre-tax contributions allow you to defer the taxes until you withdraw the money from your plan. This has a couple of advantages. First of all, lowering your taxable income could make you eligible for additional credits and deductions. Second, you might be in a lower tax bracket in retirement if you’ll need less income than you make now. But even if you’re in the same tax bracket, you could still end up paying an overall lower rate in retirement since some of your income will be taxed at lower brackets. Finally, even if you pay the same tax rate, you’ll have the additional earnings on the money that would have gone to taxes each year.

Tax Free Growth: Some plans also allow Roth contributions, which can grow tax-free after 5 years and age 59 1/2. These can be particularly beneficial if you max out your contributions or expect to be paying a higher tax rate in retirement.

To read the entire article from Erik Carter | Forbes:

http://finance.yahoo.com/news/8-opportunities-in-your-paycheck-you-may-be-missing.html?page=1

Inspirational Quotes@Inspire_Us from Twitter:
Remember happiness doesn't depend upon who you are or what you have; it depends solely on what you think. -Dale Carnegie

 

Personal Finance News Friday 9/7

Phil's Personal Finance Tip of the Day:

14 Terrible LinkedIn Mistakes You're Making
By Alyson Shontell | Business Insider – Thu, Sep 6, 2012 11:33 AM EDT

There are some things you just shouldn't do on LinkedIn.

Kim Brown is an assistant director for Syracuse University's Career Services department. She spends a good portion of her day looking over LinkedIn profiles for job seekers and students. She makes sure candidates are putting their best feet forward on LinkedIn.

Here are the most common mistakes Brown sees job seekers make on LinkedIn.

1. Your profile is full of typos
Brown says she's seen people spell a lot of things wrong on LinkedIn. She's seen typos in company names, job titles, and even in the user's name.

Unfortunately, LinkedIn doesn't have a built-in spell checker. But your Web browser might. Safari, Chrome, and Firefox underline misspellings in red. Bottom line, whatever you use: Be as careful on LinkedIn as you would be with a paper resume.

To read the entire article:
http://finance.yahoo.com/news/14-terrible-linkedin-mistakes-you-re-making.html?page=1

Scripture of the Day from Dave Ramsey.com:
Nehemiah 8:10 — The joy of the Lord is your strength.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Thursday 9/6

Phil's Personal Finance Tip of the Day:

True or False: Many Americans Don't Understand the Basics of Investing
By ANDREA COOMBES/The Wall Street Journal

It's the time of year when students nationwide head back to the classroom. Adults might want to hit the books, too.

When it comes to understanding basic concepts about investing, Americans come up woefully short.

Consider that while 67% of respondents to a 2009 survey rated their own overall financial knowledge as "high," only 53% answered this question correctly: "True or false: Buying a single company's stock usually provides a safer return than a stock mutual fund."

Only 6% got the answer wrong, choosing "True." But fully 40% said they didn't know the answer, and 1% declined to answer. The survey of about 28,000 U.S. respondents was by the Investor Education Foundation of the Financial Industry Regulatory Authority. Finra, as the authority is commonly referred to, is a private, industry-funded agency that regulates financial-services firms.

Another question on Finra's survey: "If interest rates rise, what will typically happen to bond prices?" The possible answers were: rise, fall, stay the same, or there is no relationship.

To read the entire article from The Wall Street Journal:
http://online.wsj.com/article/SB10000872396390444812704577605232303164416.html?mod=WSJ_PersonalFinance_PF14

Scripture of the Day from Dave Ramsey.com:
Matthew 16:26 — What good will it be for man to gain the whole world, yet forfeit their soul? Or what can anyone give in exchange for their soul?

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Wednesday 9/5

Phil's Personal Finance Tip of the Day:
What Is a 529 Expense? Take Our Test.
Not all college costs get the tax-free treatment. It pays to know the rules beforehand.

By ANNAMARIA ANDRIOTIS/The Wall Street Journal

Millions of parents invest in 529 plans to pay for their children's college educations. But when it comes time to pull the money out, be aware that not all the expenses Junior incurs on campus will qualify for the tax-free treatment that makes these state-sponsored college-savings plans so valuable.

Withdrawals from 529 plans are tax-free only if they are used to pay for so-called qualified higher-education expenses, as defined by the Internal Revenue Service. These include tuition and other fees required by the university, as well as room and board for students enrolled at least half time. Course requirements such as books, calculators and software are included, as are services for special-needs students.

If a parent takes out money for anything that doesn't meet the "qualified expense" criteria, the earnings portion of that distribution will be taxed as ordinary income and could incur a 10% federal penalty.

To read the entire article from The Wall Street Journal:
http://online.wsj.com/article/SB10000872396390444508504577593154186084524.html?mod=WSJ_PersonalFinance_PF14


Scripture of the Day from Dave Ramsey.com:
Job 8:7 — Your beginnings will seem humble, so prosperous will be your future.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Tuesday 9/4

Phil's Personal Finance Tip of the Day:

21 Ways Rich People Think Differently

By Mandi Woodruff | Business Insider – Tue, Sep 4, 2012 10:50 AM EDT

World's richest woman Gina Rinehart is enduring a media firestorm over an article in which she takes the "jealous" middle class to task for "drinking, or smoking and socializing" rather than working to earn their own fortune.

What if she has a point?

Steve Siebold, author of "How Rich People Think," spent nearly three decades interviewing millionaires around the world to find out what separates them from everyone else.

It had little to do with money itself, he told Business Insider. It was about their mentality.

"[The middle class] tells people to be happy with what they have," he said. "And on the whole, most people are steeped in fear when it comes to money."

To read the entire article from Mandi Woodruff | Business Insider:
http://finance.yahoo.com/news/21-ways-rich-people-think-differently.html


Scripture of the Day from Dave Ramsey.com:
Matthew 7:7 — Ask and it will be given to you; seek and you will find; knock and the door will be opened to you.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Monday 9/3

Phil's Personal Finance Tip of the Day:

From Two Incomes, to One: How to Make Ends Meet

by Andrea Murad

Published September 04, 2012

FOXBusiness

With unemployment sitting at 8.3%, former dual-income families are working to make ends meet with just one salary coming in a tough economic climate.

The shift to a smaller income stream tends to occur suddenly, and experts advise families adjust budgets and spending habits just as quickly to retain control of the financial household.

“As quickly as possible, really look at your budget and assess your new reality,” says Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial. “Sitting down, doing the math, and putting it to paper is very important.”

Websites like mint.com or www.merrilledge.com have tools to help you create a budget. For the pen and paper inclined, write your income in one column and expenses in the other. Compare the numbers and identify areas that can be cut out or reduced. Once you’ve identified your income and expenses, you’ll be better prepared for financial issues and can work to stay out of debt.

Read more: http://www.foxbusiness.com/personal-finance/2012/09/04/from-two-incomes-to-one-how-to-make-ends-meet/#ixzz25dHWUNN6

Inspirational Quotes@Inspire_Us from Twitter:
The world is but a canvas to the imagination. -Henry David Thoreau