Friday, May 31, 2013
Personal Finance News Friday 5/31
5 Ways to Reduce Your Credit Card Debt Starting Now
By David Bakke | U.S.News & World Report LP
The average American has around $7,000 in credit card debt, according to an estimate by NerdWallet.com released this month. Some people give a long list of excuses for why they've landed in such financial trouble, but paying your way out of credit card debt isn't as hard as it sounds. It's worth a few hours of your time to save hundreds or even thousands of dollars by following these steps:
1. Create a budget. The first step to solving your debt problem is to establish a budget. Use an online service like Mint.com or list your monthly income and expenses on a spreadsheet or a piece of paper. Next, establish whether you're spending more than you make. If so, the situation is dire. If you don't scale back your spending, you'll dig yourself into a deeper hole. Review your expenses to find areas where you can cut costs.
2. Reduce your monthly bills. Some of your regular monthly expenses aren't set in stone. Can you get by with a cheaper data plan for your smartphone? Do you really need all those TV channels plus paid movie services? Can you reduce home energy expenses? Review your statements and subscriptions, as there are a number of money-saving opportunities for regular monthly services.
3. Cut down on unnecessary purchases. Track your expenditures for a week to see how much you spend on minor, everyday purchases. Cutting back or eliminating discretionary expenses such as fast food and Starbucks coffee can make a big difference to your bottom line.
To read the entire article from David Bakke | U.S.News & World Report LP:
http://news.yahoo.com/5-ways-reduce-credit-card-145946026.html
Thursday, May 30, 2013
Personal Finance News Thursday 5/30
Phil's Personal Finance Tip of the Day:
Why Twitter users won’t ‘follow’ new security rule
By Quentin Fottrell/MarketWatch
Following several recent high-profile Twitter account hacks, including of the Associated Press, Financial Times and satirical site The Onion, Twitter last week rolled out an optional two-factor login to give its users added security. But some experts say most social networkers are unlikely to bother using it.
Last month, hackers posted a tweet from the AP’s account — “Breaking: Two Explosions in the White House and Barack Obama is injured” — sending the Dow plunging 145 points. “Twitter was designed as a consumer toy to tell friends what you had for lunch,” says Johannes B. Ullrich, chief research officer for the Sans Institute, a nonprofit security research group, “not to spread news that affects stock markets.” (Twitter did not respond to requests for comment.)
The new verification system puts the security of Twitter accounts more in line with the power a tweet can wield. By registering a mobile phone number, account holders can receive a six-digit code via text message every time they log into their account. “We occasionally hear from people whose accounts have been compromised by email phishing schemes or a breach of password data elsewhere on the web,” Jim O’Leary, one of the site’s security team, wrote in a blog post. Twitter’s new system would help prevent that from happening, O’Leary wrote.
Trouble is, many consumers consider it too much of a hassle to wait for a text message to log in to their Twitter, Facebook or Google account, experts say. (Facebook and Google already have the mobile-phone log-in option and evidence suggests that few use it. If social networks made it mandatory for consumers to hand over mobile phone numbers for extra authentication, “consumers would rebel and drop them like a hot potato,” says Adrien de Beaupre, a senior information security consultant with Intru-Shun.ca, an independent IT security consulting firm in Canada. “They tend to dislike or even circumvent features intended to protect them.” To be fair, this doesn’t only apply to social networks: Only eight out of the country’s 25 largest financial institutions require a separate authentication log-in by mobile phone, according to a recent survey by Javelin Strategy & Research, a consultant for the financial services industry.
To read the entire article from Quentin Fottrell/ MarketWatch:
http://www.marketwatch.com/story/why-twitter-users-wont-follow-new-security-rule-2013-05-29
Why Twitter users won’t ‘follow’ new security rule
By Quentin Fottrell/MarketWatch
Following several recent high-profile Twitter account hacks, including of the Associated Press, Financial Times and satirical site The Onion, Twitter last week rolled out an optional two-factor login to give its users added security. But some experts say most social networkers are unlikely to bother using it.
Last month, hackers posted a tweet from the AP’s account — “Breaking: Two Explosions in the White House and Barack Obama is injured” — sending the Dow plunging 145 points. “Twitter was designed as a consumer toy to tell friends what you had for lunch,” says Johannes B. Ullrich, chief research officer for the Sans Institute, a nonprofit security research group, “not to spread news that affects stock markets.” (Twitter did not respond to requests for comment.)
The new verification system puts the security of Twitter accounts more in line with the power a tweet can wield. By registering a mobile phone number, account holders can receive a six-digit code via text message every time they log into their account. “We occasionally hear from people whose accounts have been compromised by email phishing schemes or a breach of password data elsewhere on the web,” Jim O’Leary, one of the site’s security team, wrote in a blog post. Twitter’s new system would help prevent that from happening, O’Leary wrote.
Trouble is, many consumers consider it too much of a hassle to wait for a text message to log in to their Twitter, Facebook or Google account, experts say. (Facebook and Google already have the mobile-phone log-in option and evidence suggests that few use it. If social networks made it mandatory for consumers to hand over mobile phone numbers for extra authentication, “consumers would rebel and drop them like a hot potato,” says Adrien de Beaupre, a senior information security consultant with Intru-Shun.ca, an independent IT security consulting firm in Canada. “They tend to dislike or even circumvent features intended to protect them.” To be fair, this doesn’t only apply to social networks: Only eight out of the country’s 25 largest financial institutions require a separate authentication log-in by mobile phone, according to a recent survey by Javelin Strategy & Research, a consultant for the financial services industry.
To read the entire article from Quentin Fottrell/ MarketWatch:
http://www.marketwatch.com/story/why-twitter-users-wont-follow-new-security-rule-2013-05-29
Wednesday, May 29, 2013
Personal Finance News Wednesday 5/29
Phil's Personal Finance Tip of the Day:
Don't Let Your Vacation Wreck Your Credit
By Jeanne Kelly | Credit.com
Summer vacations are supposed to be care-free and enjoyable. The most perplexing challenge we want to be faced with is: “Should I wear my sandals or my flip-flops today?”
That might be the perfect summer vacation but unfortunately, some summer vacations can have long-term consequences. A little proactive planning will go a long way, and I don’t just mean that you should buy SPF 50 sunscreen instead of SPF35. I’m talking about your credit.
While on vacation, we don’t want to think about our credit. But if we ignore our credit completely, we could end up paying for it for months or even years. Here are five credit tips that you probably haven’t been thinking about as you’ve been planning your summer vacation:
1. Set a budget. Summer vacations should be fun, and it’s even OK if they’re a little extravagant. But don’t go overboard. Set a budget before you go on vacation, make sure you give yourself a little cushion just in case you find the perfect souvenir, but diligently stick to your budget.
That might seem like you’re trying to suck all the fun out of your vacation, but what you’re really doing is making sure that the happiness of your vacation doesn’t turn to months or years of regret as you pay off those bills.
2. Plan for contingencies. What would a vacation be without a mishap? Make sure that you are prepared for some of the most common contingencies you might face while traveling. If you’re renting a car, make sure you have car rental insurance . If you’re going to be somewhere for any length of time, make sure that you have some kind of health or hospitalization coverage while you’re there. These are indeed credit tips because every contingency that you prepare for helps to protect your credit from unexpected, unpayable bills.
To read the entire article from Jeanne Kelly | Credit.com:
http://finance.yahoo.com/news/dont-let-vacation-wreck-credit-120021010.html
Decide that you want it more than you are afraid of it. -Bill Cosby
Don't Let Your Vacation Wreck Your Credit
By Jeanne Kelly | Credit.com
Summer vacations are supposed to be care-free and enjoyable. The most perplexing challenge we want to be faced with is: “Should I wear my sandals or my flip-flops today?”
That might be the perfect summer vacation but unfortunately, some summer vacations can have long-term consequences. A little proactive planning will go a long way, and I don’t just mean that you should buy SPF 50 sunscreen instead of SPF35. I’m talking about your credit.
While on vacation, we don’t want to think about our credit. But if we ignore our credit completely, we could end up paying for it for months or even years. Here are five credit tips that you probably haven’t been thinking about as you’ve been planning your summer vacation:
1. Set a budget. Summer vacations should be fun, and it’s even OK if they’re a little extravagant. But don’t go overboard. Set a budget before you go on vacation, make sure you give yourself a little cushion just in case you find the perfect souvenir, but diligently stick to your budget.
That might seem like you’re trying to suck all the fun out of your vacation, but what you’re really doing is making sure that the happiness of your vacation doesn’t turn to months or years of regret as you pay off those bills.
2. Plan for contingencies. What would a vacation be without a mishap? Make sure that you are prepared for some of the most common contingencies you might face while traveling. If you’re renting a car, make sure you have car rental insurance . If you’re going to be somewhere for any length of time, make sure that you have some kind of health or hospitalization coverage while you’re there. These are indeed credit tips because every contingency that you prepare for helps to protect your credit from unexpected, unpayable bills.
To read the entire article from Jeanne Kelly | Credit.com:
http://finance.yahoo.com/news/dont-let-vacation-wreck-credit-120021010.html
Decide that you want it more than you are afraid of it. -Bill Cosby
Tuesday, May 28, 2013
Personal Finance News Tuesday 5/28
Phil's Personal Finance Tip of the Day:
6 Money-Saving Strategies That May Cost You in the Long Run
By Geoff Williams | U.S.News & World Report LP
Not everything we do to save money really saves us money. For instance, as all savvy shoppers know, if you clip coupons when grocery shopping, sometimes you're still better off buying a cheaper brand elsewhere on the shelf. If you buy something cheap that breaks soon after, and you have to replace it with something more expensive, you clearly haven't saved any money. You could also spend the rest of your days debating with friends about whether $50 memberships to discount bulk stores are really saving you any money in the long run.
Of course, sometimes things work out fine. You buy something cheap, and you still have it 20 years later. You not only have one of those memberships but the receipts to prove your savings. Still, if you're about to attempt something you think will save money, especially if we're talking big money, it's always a good idea to consider whether your strategy truly makes sense. Otherwise, you may wind up spending far more. Here are a few examples of what we mean.
1. Skipping annual physicals and not going to a doctor when you're sick.
How it can cost you: This one is a classic money (and health) mistake. You may have an easily treatable problem that goes undiagnosed and eventually becomes not so treatable. And it isn't just appointments with your general practitioner. Regular eye exams and dental checkups also exist for a reason.
[Read: When Frugality Goes Too Far.]
"Over the past few years, we've seen an increase of 16 percent in the number of [emergency room] visits nationwide due to dental problems," says Mitch Rothschild, CEO of Vitals, a website that helps consumers find doctors, review them and make appointments.
Skipping the dentist, adds Rothschild, "leads to a tenfold increase in costs for the consumer." Numbers -- granted, from the year 2000 -- bear him out. According to a Pediatrics Dentistry report from that year, the cost for ER treatment for dental visits averaged $6,498 per person. Meanwhile, the average cost of preventative treatment was $660 per person.
2. Leasing a car.
How it can cost you: Nothing at all wrong with leasing, but David Kiley, editor-in-chief of AOL Autos and auto industry editor for The Huffington Post, warns that lease payments that are really low often have low mileage limits of 10,000 or 12,000. "That may suit some," he says, "but not if your life or job changes in the three years you are making lease payments. Then you're looking at 10 cents or more per mile over your limit, and you feel like you are driving a taxi on the meter."
To read the entire article from Geoff Williams | U.S.News & World Report LP :http://finance.yahoo.com/news/6-money-saving-strategies-may-205104370.html
6 Money-Saving Strategies That May Cost You in the Long Run
By Geoff Williams | U.S.News & World Report LP
Not everything we do to save money really saves us money. For instance, as all savvy shoppers know, if you clip coupons when grocery shopping, sometimes you're still better off buying a cheaper brand elsewhere on the shelf. If you buy something cheap that breaks soon after, and you have to replace it with something more expensive, you clearly haven't saved any money. You could also spend the rest of your days debating with friends about whether $50 memberships to discount bulk stores are really saving you any money in the long run.
Of course, sometimes things work out fine. You buy something cheap, and you still have it 20 years later. You not only have one of those memberships but the receipts to prove your savings. Still, if you're about to attempt something you think will save money, especially if we're talking big money, it's always a good idea to consider whether your strategy truly makes sense. Otherwise, you may wind up spending far more. Here are a few examples of what we mean.
1. Skipping annual physicals and not going to a doctor when you're sick.
How it can cost you: This one is a classic money (and health) mistake. You may have an easily treatable problem that goes undiagnosed and eventually becomes not so treatable. And it isn't just appointments with your general practitioner. Regular eye exams and dental checkups also exist for a reason.
[Read: When Frugality Goes Too Far.]
"Over the past few years, we've seen an increase of 16 percent in the number of [emergency room] visits nationwide due to dental problems," says Mitch Rothschild, CEO of Vitals, a website that helps consumers find doctors, review them and make appointments.
Skipping the dentist, adds Rothschild, "leads to a tenfold increase in costs for the consumer." Numbers -- granted, from the year 2000 -- bear him out. According to a Pediatrics Dentistry report from that year, the cost for ER treatment for dental visits averaged $6,498 per person. Meanwhile, the average cost of preventative treatment was $660 per person.
2. Leasing a car.
How it can cost you: Nothing at all wrong with leasing, but David Kiley, editor-in-chief of AOL Autos and auto industry editor for The Huffington Post, warns that lease payments that are really low often have low mileage limits of 10,000 or 12,000. "That may suit some," he says, "but not if your life or job changes in the three years you are making lease payments. Then you're looking at 10 cents or more per mile over your limit, and you feel like you are driving a taxi on the meter."
To read the entire article from Geoff Williams | U.S.News & World Report LP :http://finance.yahoo.com/news/6-money-saving-strategies-may-205104370.html
Monday, May 27, 2013
Personal Finance News Monday 5/27
A break from Financial news today as we all should honor our fallen troops who have made possible our freedom through them paying the ultimate sacrifice.
This article says it all from The Wall Street Journal Friday May 25th, 2012.
Tom Manion: Why They Serve—'If Not Me, Then Who?'
After more than a decade of war, remarkable men and women are still stepping forward.
I served in the military for 30 years. But it was impossible to fully understand the sacrifices of our troops and their families until April 29, 2007, the day my son, First Lt. Travis Manion, was killed in Iraq.
Travis was just 26 years old when an enemy sniper's bullet pierced his heart after he had just helped save two wounded comrades. Even though our family knew the risks of Travis fighting on the violent streets of Fallujah, being notified of his death on a warm Sunday afternoon in Doylestown, Pa., was the worst moment of our lives.
While my son's life was relatively short, I spend every day marveling at his courage and wisdom. Before his second and final combat deployment, Travis said he wanted to go back to Iraq in order to spare a less-experienced Marine from going in his place. His words—"If not me, then who . . . "—continue to inspire me.
My son is one of thousands to die in combat since the terrorist attacks of September 11, 2001. Because of their sacrifices, as well as the heroism of previous generations, Memorial Day 2012 should have tremendous importance to our entire nation, with an impact stretching far beyond one day on the calendar.
To read the entire article from the Wall Street Journal by Tom Manion:
http://online.wsj.com/article/SB10001424052702303610504577419973285034422.html?mod=wsj_share_tweet
This article says it all from The Wall Street Journal Friday May 25th, 2012.
Tom Manion: Why They Serve—'If Not Me, Then Who?'
After more than a decade of war, remarkable men and women are still stepping forward.
I served in the military for 30 years. But it was impossible to fully understand the sacrifices of our troops and their families until April 29, 2007, the day my son, First Lt. Travis Manion, was killed in Iraq.
Travis was just 26 years old when an enemy sniper's bullet pierced his heart after he had just helped save two wounded comrades. Even though our family knew the risks of Travis fighting on the violent streets of Fallujah, being notified of his death on a warm Sunday afternoon in Doylestown, Pa., was the worst moment of our lives.
While my son's life was relatively short, I spend every day marveling at his courage and wisdom. Before his second and final combat deployment, Travis said he wanted to go back to Iraq in order to spare a less-experienced Marine from going in his place. His words—"If not me, then who . . . "—continue to inspire me.
My son is one of thousands to die in combat since the terrorist attacks of September 11, 2001. Because of their sacrifices, as well as the heroism of previous generations, Memorial Day 2012 should have tremendous importance to our entire nation, with an impact stretching far beyond one day on the calendar.
To read the entire article from the Wall Street Journal by Tom Manion:
http://online.wsj.com/article/SB10001424052702303610504577419973285034422.html?mod=wsj_share_tweet
Saturday, May 25, 2013
Personal Finance News Saturday 5/25
Phil's Personal Finance Tip of the Day:
AT&T sneaks a new fee onto its wireless bills
The telecom giant has stealthily added a 61-cent 'administrative' charge that will add up to millions in revenue.
By Aimee Picchi /MSN Money
What might be nickels and dimes for you will end up as hundreds of millions for a corporate giant. Just ask AT&T (T -0.05%), which has put into play a sneaky new fee.
The telecom giant this month is adding a 61-cent "below-the-line" charge to the bills of its wireless contract customers in a move that could bring in more than $500 million of new annual revenue, The Wall Street Journal reports.
Such fees earn their names for their placement at the bottom of a phone bill, where companies hope customers will overlook them. After all, what's profitable for wireless carriers isn't necessarily well liked by either consumer groups or the companies' subscribers.
To read the entire article from Aimee Picchi /MSN Money:
http://money.msn.com/now/post.aspx?post=48ea4fae-f5d7-4c2d-bde3-c15473a375b6
A person often meets his destiny on the road he took to avoid it. - Jean de La Fontaine
The telecom giant this month is adding a 61-cent "below-the-line" charge to the bills of its wireless contract customers in a move that could bring in more than $500 million of new annual revenue, The Wall Street Journal reports.
Such fees earn their names for their placement at the bottom of a phone bill, where companies hope customers will overlook them. After all, what's profitable for wireless carriers isn't necessarily well liked by either consumer groups or the companies' subscribers.
To read the entire article from Aimee Picchi /MSN Money:
http://money.msn.com/now/post.aspx?post=48ea4fae-f5d7-4c2d-bde3-c15473a375b6
A person often meets his destiny on the road he took to avoid it. - Jean de La Fontaine
Friday, May 24, 2013
Personal Finance News Friday 5/24
7 Gas-Saving Secrets
Fill Tires to Recommended Pressure
Your tires can also impact mileage and the quickest and easiest way to increase fuel efficiency is to inflate them to the recommended pressure.
Also See: 5 Signs You May Be Broke in 10 Years
“We did a test here at Edmunds a couple years ago with our own employees and found that we were probably losing about $112 a year in fuel economy because of driving on under inflated tires,” says Carroll Lachnit, features editor at Edmunds.com.
To read the entire article from Farnoosh Torabi | Yahoo! Finance:
http://finance.yahoo.com/news/7-gas-saving-secrets-131654760.html
Thursday, May 23, 2013
Personal Finance News Thursday 5/23
Phil's Personal Finance Tip of the Day:
7 mistakes to avoid in retirement planning
7 mistakes to avoid in retirement planning
Wednesday, May 22, 2013
Personal Finance News Wednesday 5/22
Phil's Personal Finance Tip of the Day:
Tips on Avoiding Phishing Frauds
By ANN CARRNS | New York Times
I consider myself fairly cautious about Internet security, but I was still nearly caught off guard by a phishing effort aimed at me a couple of years ago.
I had gone online, as I routinely do, to check my bank account balance, and make sure nothing looked amiss. I logged out and returned to my work. A few minutes later, I received an e-mail — apparently, from my bank.
The message had my bank’s logo, and said the bank was following up on a possible problem with a transaction. Could I please reply, it asked, with some additional information?
Normally, I would immediately delete such an e-mail — but I had been online with my bank just minutes before. Could it be a coincidence? I hesitated, and decided to contact my bank directly to check. It turned out that the e-mail wasn’t from my bank, but most likely from some sort of fraudulent outfit trying to get information to obtain access to my account.
Such ploys are known as “phishing,” in which fraud artists pose as legitimate companies to try to get you to reveal important personal information, like account numbers, passwords or even your Social Security number. Such information can be used to get into your accounts, or create fake identities to apply for credit in your name.
To read the entire article from ANN CARRNS | New York Times:
http://finance.yahoo.com/news/tips-avoiding-phishing-frauds-203757567.html
Simplicity is not a simple thing. - Charles Chaplin
Tips on Avoiding Phishing Frauds
By ANN CARRNS | New York Times
I consider myself fairly cautious about Internet security, but I was still nearly caught off guard by a phishing effort aimed at me a couple of years ago.
I had gone online, as I routinely do, to check my bank account balance, and make sure nothing looked amiss. I logged out and returned to my work. A few minutes later, I received an e-mail — apparently, from my bank.
The message had my bank’s logo, and said the bank was following up on a possible problem with a transaction. Could I please reply, it asked, with some additional information?
Normally, I would immediately delete such an e-mail — but I had been online with my bank just minutes before. Could it be a coincidence? I hesitated, and decided to contact my bank directly to check. It turned out that the e-mail wasn’t from my bank, but most likely from some sort of fraudulent outfit trying to get information to obtain access to my account.
Such ploys are known as “phishing,” in which fraud artists pose as legitimate companies to try to get you to reveal important personal information, like account numbers, passwords or even your Social Security number. Such information can be used to get into your accounts, or create fake identities to apply for credit in your name.
To read the entire article from ANN CARRNS | New York Times:
http://finance.yahoo.com/news/tips-avoiding-phishing-frauds-203757567.html
Simplicity is not a simple thing. - Charles Chaplin
Tuesday, May 21, 2013
Personal Finance News Tuesday 5/21
Our prayers go out to the people in Moore,Oklahoma. If you would like to donate to help them, please read this first so the money you give will go to the people who needs it and not in the hands of scammers.
Phil's Personal Finance Tip of the Day:
Clark's charity donation guide
Maximize the impact of your generosity
By Clark Howard
Before donating to any charity, you want to be sure that the lion's share of the money will go where it's needed. Every charity has different overhead costs. You can research you favorite charities -- learning how much of your donation will go to the intended purpose (vs. how much will go to overhead) at Give.org, CharityWatch.org and CharityNavigator.org. Here are some more important tips:
- Don't give cash. Legitimate charities will take a check
- Don't give credit card, bank account or personal information to telemarketers. If you want to donate, initiate the call yourself.
To read the entire article from Clark Howard.com:
http://www.clarkhoward.com/news/clark-howard/family-lifestyle/clarks-charity-giving-guide/nFZZ/
Monday, May 20, 2013
Personal Finance News Monday 5/20
Phil's Personal Finance Tip of the Day:
How to Retire With $1 Million
By Emily Brandon | U.S.News & World Report LP
[Read: 7 Obstacles to Saving for Retirement.]
Start young. The easiest way to save $1 million is to begin saving at your first job. If you start saving at age 25, you could save just $4,682 per year and reach $1 million by age 65, assuming 7 percent annual returns, according to calculations by David Fernandez, a certified financial planner for Wealth Engineering in Scottsdale, Ariz. "You could do that by maxing out a Roth IRA or saving in a 401(k)," Fernandez says. "If you wait until 35, the amount you need to save more than doubles." Beginning at age 35, you will need to save $9,894 each year to accumulate $1 million at age 65. If you further delay saving, you'll need to tuck away $22,798 annually beginning at 45 or $67,643 at 55 if you hope to be a millionaire upon retirement at 65.
Set intermediate goals. While saving $1 million might be your ultimate retirement goal, it helps if you set some intermediate goals along the way. "If you've gotten to save $50,000 or $100,000, then you can do something significant that is important to you to celebrate," says Mary Brooks, a certified financial planner for Brooks Financial Planning in Colorado Springs, Colo. "Your enthusiasm is renewed because you really feel like you have gotten someplace."
Keep expenses low. Pay attention to the expense ratio of each investment you choose, and try to select those with low fees and expenses. "Always go for low-cost investments. The only thing you can control is what you pay for stuff," says Walter Romatowski, a certified financial planner for Castellan Financial Advisors in Palo Alto, Calif. "For most people, it probably makes sense to invest in index funds because they typically have lower expenses as compared to actively managed funds. You can pay 0.1 percent or 1 percent, and that makes a huge difference over your lifetime."
To read the entire article by Emily Brandon | U.S.News & World Report LP:
http://news.yahoo.com/retire-1-million-131007033.html
Ingenuity plus courage plus work equals miracles. -Bob Richards
How to Retire With $1 Million
By Emily Brandon | U.S.News & World Report LP
Saving $1 million for retirement is a realistic goal for most workers, but it will take a considerable amount of effort to get there. And there are plenty of fees, taxes and penalties that could make it even more difficult to hit this worthy savings target. These strategies will help you to save $1 million over the course of your career:
Set intermediate goals. While saving $1 million might be your ultimate retirement goal, it helps if you set some intermediate goals along the way. "If you've gotten to save $50,000 or $100,000, then you can do something significant that is important to you to celebrate," says Mary Brooks, a certified financial planner for Brooks Financial Planning in Colorado Springs, Colo. "Your enthusiasm is renewed because you really feel like you have gotten someplace."
To read the entire article by Emily Brandon | U.S.News & World Report LP:
http://news.yahoo.com/retire-1-million-131007033.html
Ingenuity plus courage plus work equals miracles. -Bob Richards
Saturday, May 18, 2013
Personal Finance News Saturday 5/18
Phil's Personal Finance Tip of the Day:
Eugene Orowitz was a skinny, awkward kid from New Jersey. Painfully shy, very self-conscious, and lacking self-confidence, when a high school coach half-jokingly asked him to try out for the track team, Eugene took him up on it, according to author Glenn Van Ekeren.
“Ugy,” as his friends affectionately called him, discovered a talent for javelin throwing and committed himself to being the best that he could possibly be. What Ugy lacked in self-confidence, he made up for in commitment.
By graduation, Eugene had achieved a national high school record for throwing the javelin over 193 feet. His commitment also resulted in a college track scholarship at the University of Southern California.
A torn shoulder muscle ended his javelin-throwing career and any hope of making the Olympic team. However, while watching a play, Eugene became intrigued with acting. Again, he committed himself to being the best. He was determined to make it as an actor, so he enrolled in acting class. And he changed his name.
You know Eugene Orowitz as Michael Landon, who went on to star in three of the most popular shows in television history: “Bonanza,” “Little House on the Prairie” and “Highway to Heaven.”
Eugene/Michael demonstrated the difference between interest and commitment. When you’re interested in doing something, you do it when circumstances permit. When you’re committed to something, you accept no excuses, only results.
Comedian Bill Cosby dropped out of Temple University as a junior and became a starving comedian. But he was committed to becoming successful, staying up all hours of the night to talk to seasoned comics,research material and work on new routines. I had a chance to play tennis with Bill many years ago and he told me: “Anyone can dabble, but once you’ve made the commitment, then your blood has that particular thing in it and it’s very hard for people to stop you.”
Commitment is a prerequisite to success. Commitment is the state of being bound – emotionally, intellectually, or both – to a course of action. Commitment starts with a choice and is sustained by dedication and perseverance. Actions speak louder than words.
To read the entire article from Harvey Mackay:
http://harveymackay.com/column/commit-yourself-to-success/
Go after your dream, no matter how unattainable others think it is. -Linda Mastandrea
Commit yourself to success
May 16, 2013 By
Eugene Orowitz was a skinny, awkward kid from New Jersey. Painfully shy, very self-conscious, and lacking self-confidence, when a high school coach half-jokingly asked him to try out for the track team, Eugene took him up on it, according to author Glenn Van Ekeren.
“Ugy,” as his friends affectionately called him, discovered a talent for javelin throwing and committed himself to being the best that he could possibly be. What Ugy lacked in self-confidence, he made up for in commitment.
By graduation, Eugene had achieved a national high school record for throwing the javelin over 193 feet. His commitment also resulted in a college track scholarship at the University of Southern California.
A torn shoulder muscle ended his javelin-throwing career and any hope of making the Olympic team. However, while watching a play, Eugene became intrigued with acting. Again, he committed himself to being the best. He was determined to make it as an actor, so he enrolled in acting class. And he changed his name.
You know Eugene Orowitz as Michael Landon, who went on to star in three of the most popular shows in television history: “Bonanza,” “Little House on the Prairie” and “Highway to Heaven.”
Eugene/Michael demonstrated the difference between interest and commitment. When you’re interested in doing something, you do it when circumstances permit. When you’re committed to something, you accept no excuses, only results.
Comedian Bill Cosby dropped out of Temple University as a junior and became a starving comedian. But he was committed to becoming successful, staying up all hours of the night to talk to seasoned comics,research material and work on new routines. I had a chance to play tennis with Bill many years ago and he told me: “Anyone can dabble, but once you’ve made the commitment, then your blood has that particular thing in it and it’s very hard for people to stop you.”
Commitment is a prerequisite to success. Commitment is the state of being bound – emotionally, intellectually, or both – to a course of action. Commitment starts with a choice and is sustained by dedication and perseverance. Actions speak louder than words.
To read the entire article from Harvey Mackay:
http://harveymackay.com/column/commit-yourself-to-success/
Go after your dream, no matter how unattainable others think it is. -Linda Mastandrea
Friday, May 17, 2013
Personal Finance News Friday 5/17
How to get your financial house in order by age 30
To read the entire article from
Thursday, May 16, 2013
Personal Finance News Thursday 5/16
Phil's Personal Finance Tip of the Day:
5 Better Investments Than the Lottery
By Cameron Huddleston | Kiplinger
Bought your Powerball ticket yet? There was no winner for the $350 million Powerball jackpot on May 15, so the prize has climbed to a whopping $550 million for the May 18 lottery drawing.
I've never bought a lottery ticket, but my husband spends $5 each month on Mega Millions, a multi-state lottery similar to Powerball. Unfortunately, he's never won. But -- fortunately -- he's not counting on the lottery to cover his retirement. Buying a lottery ticket isn't an investment, he says, it's buying a dream. And who doesn't dream of winning big some day?
[More from Kiplinger: 10 Best Ways to Earn More Interest on Your Savings]
I don't worry about the fact that my husband spends $5 a month on lottery tickets. It's a nominal amount, and I know he's actively saving for retirement. However, if he were shelling out, say, $20 a week on lottery tickets, I would suggest better uses for the $1,040 it would amount to in a year. In fact, here are five ways to spend $1,040 with much better odds of getting a return than the 1 in 175,223,510 odds of winning the Powerball jackpot.
Pay down credit-card debt. Paying off a balance with an 13% interest rate (the average on fixed-rate cards now) is like earning 13% on your investments -- an incredibly valuable use of the money. And once you pay off your credit-card debt, you can start using that money to build your retirement savings.
[More from Kiplinger: 12 Stocks That Deliver Dividends Every Month]
Boost your 401(k) contributions. If you have an extra $1,040 to spare, then put that money to work for you in your retirement account. You'll really benefit if your employer matches your contributions. Investing an extra $86.67 a month (which is what $1,040 breaks down to over 12 months) in a 401(k) over 20 years costs you $20,801, but after two decades the account balance will be $49,632, assuming an 8% annual return and a 25% tax bracket. And that's with no company match. After factoring in the 25% tax savings, since the investment was with pretax dollars, the real cost to you is just $15,601. So you effectively triple your money in 20 years. Use our Power of Boosting 401(k) Contributions calculator to see how additional contributions to your account can add up over time.
To read the entire article from Cameron Huddleston | Kiplinger :
http://finance.yahoo.com/news/5-better-investments-than-the-lottery-182440502.html
If you're bored with life, if you don't get up every morning with a burning desire to do things - you don't have enough goals. -Lou Holtz
5 Better Investments Than the Lottery
By Cameron Huddleston | Kiplinger
Bought your Powerball ticket yet? There was no winner for the $350 million Powerball jackpot on May 15, so the prize has climbed to a whopping $550 million for the May 18 lottery drawing.
I've never bought a lottery ticket, but my husband spends $5 each month on Mega Millions, a multi-state lottery similar to Powerball. Unfortunately, he's never won. But -- fortunately -- he's not counting on the lottery to cover his retirement. Buying a lottery ticket isn't an investment, he says, it's buying a dream. And who doesn't dream of winning big some day?
[More from Kiplinger: 10 Best Ways to Earn More Interest on Your Savings]
I don't worry about the fact that my husband spends $5 a month on lottery tickets. It's a nominal amount, and I know he's actively saving for retirement. However, if he were shelling out, say, $20 a week on lottery tickets, I would suggest better uses for the $1,040 it would amount to in a year. In fact, here are five ways to spend $1,040 with much better odds of getting a return than the 1 in 175,223,510 odds of winning the Powerball jackpot.
Pay down credit-card debt. Paying off a balance with an 13% interest rate (the average on fixed-rate cards now) is like earning 13% on your investments -- an incredibly valuable use of the money. And once you pay off your credit-card debt, you can start using that money to build your retirement savings.
[More from Kiplinger: 12 Stocks That Deliver Dividends Every Month]
Boost your 401(k) contributions. If you have an extra $1,040 to spare, then put that money to work for you in your retirement account. You'll really benefit if your employer matches your contributions. Investing an extra $86.67 a month (which is what $1,040 breaks down to over 12 months) in a 401(k) over 20 years costs you $20,801, but after two decades the account balance will be $49,632, assuming an 8% annual return and a 25% tax bracket. And that's with no company match. After factoring in the 25% tax savings, since the investment was with pretax dollars, the real cost to you is just $15,601. So you effectively triple your money in 20 years. Use our Power of Boosting 401(k) Contributions calculator to see how additional contributions to your account can add up over time.
To read the entire article from Cameron Huddleston | Kiplinger :
http://finance.yahoo.com/news/5-better-investments-than-the-lottery-182440502.html
If you're bored with life, if you don't get up every morning with a burning desire to do things - you don't have enough goals. -Lou Holtz
Wednesday, May 15, 2013
Personal Finance News Wednesday 5/15
Phil's Personal Finance Tip of the Day:
Personal Finance: How Long Does It Take to Repair Credit?
By Alanna Ritchie/Debt.org
Adopting responsible credit habits is the only way to improve your credit score
and deciding when to start implementing changes is up to you.
You can begin addressing the problem of a low score by
understanding how your credit score is determined, what kind of activity
results in long-term credit blemishes and where you can make immediate
improvements.
Repairing credit is a process that takes time, and the exact
amount of time differs for everyone, depending on where your credit is now,
what type of activity damaged your history and what steps you are taking to
increase your score.
Immediate Changes
One way to quickly boost your credit score is to make any
corrections that have been overlooked in the past. You can obtain your credit report for free,
once a year, from each of the credit reporting agencies. If you inform them of errors, they should
respond to you within 30 days.
By taking the time to note any discrepancies, you will keep
yourself from losing points for mistakes you did not make or accounts that were
closed years ago.
How You Repair Credit
Part of expediting the credit repair process includes
understanding what factors contribute to low credit scores. The criteria to
measure your credit are based on these five main categories:
·
Payment history for credit lines
·
Amount owed on credit lines
·
Length of credit history
·
New credit lines
·
Types of credit lines
Making improvements in any of these areas can begin to raise
your credit score, even if it takes a substantial amount of time to notice the
difference.
Where to Start
The two categories that carry the most weight are payment
history and amounts owed. Actions that will impact this category are making
payments on time, carrying a lower month-to-month balance and utilizing a low
percentage of available credit.
You can increase your score by intentionally seeking to make
improvements in these categories. Make sure your phone receives alerts when
payments are due. Pay higher than the minimum amount owed. Sell personal items
to pay off debt and then stop
using credit cards to keep your balance lower than the maximum allowed on
each credit line. Each step makes a difference.
The Waiting Period
Many lenders look at the most recent information on your
report. So a record of a few years of on-time payments will make you look
favorable, even if there were late payments from five years ago. Because of
this, your credit record will reflect that your habits as a potential borrower
have improved, even if your score is not significantly improved yet.
To have a realistic understanding of the long-term
repercussions of certain credit choices, here are the lengths of time serious
actions will remain on your credit report; for accounts not paid, 7 years from
the date account first became past due; for late payments, 7 years; and for
bankruptcy, 7 to 10 years, depending on which type of bankruptcy is filed.
Taking on the task of repairing credit can be long and
difficult, but the sooner you take control of your debt the sooner your report
will reflect positive activity and your score eventually change.
Alanna Ritchie is a
content writer for Debt.org, where she writes about personal finance and little
smart ways to spend (and save) money. Alanna has an English degree from Rollins
College.
For more Personal Finance information please visit: http://www.debt.org/
Tuesday, May 14, 2013
Personal Finance News Tuesday 5/14
Phil's Personal Finance Tip of the Day:
5 Ways Buying a Home Can Hurt Your Credit
By Jeanne Kelly | Credit.com
I remember when I bought my first house. It was a great feeling of pride to be standing in a place that
I owned, that I could call my home. Aside from being a place to rejuvenate from your busy day while you spend time with your family, a home is also a key step toward building a financial nest egg that you will rely on for years to come.
But did you know that buying a home can also hurt your credit? If you’re not careful, it can go from a positive experience to a negative experience — almost in the blink of an eye. Here’s how buying a home can hurt your credit if you’re not careful:
1. Taking too long to shop for a mortgage. Mortgages can be tens of thousands or even hundreds of thousands of dollars, so it makes sense to shop around for the best rate you can find. Your credit score (the measure of credit health that many mortgage lenders rely on) gives you a 14- to 45-day window (depending on the scoring model) to shop around for rates. Any mortgage inquiry you make within that 14- to 45-day window will only count as one inquiry (whether you make one credit inquiry or 10). Any inquiry outside of that window of time could count as an additional inquiry. So when you decide to start shopping for rates, try to make sure that you keep it all within two weeks to a month and a half.
2. Keeping up with your mortgage payments. One of the good credit habits that can have the biggest impact on your credit score is paying your debts on time and in full . Your mortgage payment is one of those bills and paying your monthly payment in full each time it is due (i.e. monthly or bi-monthly) can help you to build up the positive credit habits that contribute to higher credit scores. And as we’ve seen in recent years, struggling to keep up with mortgage payments can result in damaged credit and even foreclosure and bankruptcy. Before you buy your home, make sure you know exactly what your mortgage payments will be and make sure that you can afford them.
To read the entire article from Jeanne Kelly | Credit.com:
http://finance.yahoo.com/news/5-ways-buying-home-hurt-100010538.html
5 Ways Buying a Home Can Hurt Your Credit
By Jeanne Kelly | Credit.com
I remember when I bought my first house. It was a great feeling of pride to be standing in a place that
I owned, that I could call my home. Aside from being a place to rejuvenate from your busy day while you spend time with your family, a home is also a key step toward building a financial nest egg that you will rely on for years to come.
But did you know that buying a home can also hurt your credit? If you’re not careful, it can go from a positive experience to a negative experience — almost in the blink of an eye. Here’s how buying a home can hurt your credit if you’re not careful:
1. Taking too long to shop for a mortgage. Mortgages can be tens of thousands or even hundreds of thousands of dollars, so it makes sense to shop around for the best rate you can find. Your credit score (the measure of credit health that many mortgage lenders rely on) gives you a 14- to 45-day window (depending on the scoring model) to shop around for rates. Any mortgage inquiry you make within that 14- to 45-day window will only count as one inquiry (whether you make one credit inquiry or 10). Any inquiry outside of that window of time could count as an additional inquiry. So when you decide to start shopping for rates, try to make sure that you keep it all within two weeks to a month and a half.
2. Keeping up with your mortgage payments. One of the good credit habits that can have the biggest impact on your credit score is paying your debts on time and in full . Your mortgage payment is one of those bills and paying your monthly payment in full each time it is due (i.e. monthly or bi-monthly) can help you to build up the positive credit habits that contribute to higher credit scores. And as we’ve seen in recent years, struggling to keep up with mortgage payments can result in damaged credit and even foreclosure and bankruptcy. Before you buy your home, make sure you know exactly what your mortgage payments will be and make sure that you can afford them.
To read the entire article from Jeanne Kelly | Credit.com:
http://finance.yahoo.com/news/5-ways-buying-home-hurt-100010538.html
Monday, May 13, 2013
Personal Finance News Monday 5/13
Phil's Personal Finance Tip of the Day:
The Math Behind Why You Should Contribute to a Matched Retirement Plan
By Steven Orlowski | TheStreet.com
NEW YORK (MainStreet)—Don't Turn Your Back Free Money
Everybody likes to get free stuff, right? But who in their right mind would turn down money for nothing?
O.K., technically it's not for nothing (you need to be employed to get it), but for many U.S. workers "free money" is available through their employer sponsored retirement plans.
Unfortunately many employees, and frequently younger ones, do not take advantage of their retirement plans and therefore say no to what amounts to an increase in pay.
How to Master a 401(k) and Roth IRA at the Same Time
You see, younger workers sometimes think that retirement planning can wait until they are older. But it's a mathematical truism that the best time to start saving is when you're young...
...and the younger the better.
Now, if you're planning on being the next Mark Zuckerberg then maybe you don't need to read the rest of this article...but most of us will not be like Zuck.
However, you can get rich. And one way to make sure you do is to start saving early, save a lot and take advantage of your employer's retirement plan matching contributions.
Sign-up Yesterday
Most of us will not retire with an old-school defined benefit pension. You know the kind. You retire after working for the same company for 25 years and a deposit magically hits your checking account every week for as long as you live.
To read the entire article from Steven Orlowski | TheStreet.com:
http://finance.yahoo.com/news/math-behind-why-contribute-matched-120400763.html
The Math Behind Why You Should Contribute to a Matched Retirement Plan
By Steven Orlowski | TheStreet.com
NEW YORK (MainStreet)—Don't Turn Your Back Free Money
Everybody likes to get free stuff, right? But who in their right mind would turn down money for nothing?
O.K., technically it's not for nothing (you need to be employed to get it), but for many U.S. workers "free money" is available through their employer sponsored retirement plans.
Unfortunately many employees, and frequently younger ones, do not take advantage of their retirement plans and therefore say no to what amounts to an increase in pay.
How to Master a 401(k) and Roth IRA at the Same Time
You see, younger workers sometimes think that retirement planning can wait until they are older. But it's a mathematical truism that the best time to start saving is when you're young...
...and the younger the better.
Now, if you're planning on being the next Mark Zuckerberg then maybe you don't need to read the rest of this article...but most of us will not be like Zuck.
However, you can get rich. And one way to make sure you do is to start saving early, save a lot and take advantage of your employer's retirement plan matching contributions.
Sign-up Yesterday
Most of us will not retire with an old-school defined benefit pension. You know the kind. You retire after working for the same company for 25 years and a deposit magically hits your checking account every week for as long as you live.
To read the entire article from Steven Orlowski | TheStreet.com:
http://finance.yahoo.com/news/math-behind-why-contribute-matched-120400763.html
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