Personal Finance News Wednesday 5/8

Phil's Personal Finance Tip of the Day:

10 Investment Ideas That Yield 10%+

Prepare to embrace the exotic (and plenty of risk) when you chase yield this far.

By Nellie S. Huang and Kathy Kristof, From Kiplinger's Personal Finance, June 2013

To get double-digit yields today, you’ll have to invest in the kinds of publicly traded stocks that rarely come up in cocktail-party conversation: mortgage REITs and business development companies. Both borrow at low short-term interest rates and lend at higher long-term rates, so their success depends on the Federal Reserve keeping short-term rates low. If short-term rates start to climb, shares of both mortgage REITs and BDCs are likely to tumble.

See Also: 45 Ideas for Getting More Yield

Analyst Merrill Ross, of Wunderlich Securities, in Memphis, Tenn., recommends Invesco Mortgage Capital (IVR, $22, 12.0%). Run by an affiliate of the Invesco mutual fund group, the REIT owns residential and commercial mortgages. About 70% of its investments are “agency” loans, those backed by the likes of the Government National Mortgage Association. A relatively high 17% of the portfolio is in higher-yielding but riskier non-agency loans, though rising property values mitigate some of the danger.

Read more at http://www.kiplinger.com/article/investing/T052-C000-S002-investment-ideas-that-yield-10-percent-and-more.html#QygMRi57r3625Jbu.99


Inspirational Quotes@Inspire_Us from Twitter:
Do what you can, with what you have, where you are. -Theodore Roosevelt

Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com.

Personal Finance News Tuesday 5/7

Phil's Personal Finance Tip of the Day:

Refinance now for big savings

Take advantage of historically low interest rates and save big money by refinancing now.

By Jennifer Berry | Yahoo! Homes – Fri, May 3, 2013

 

 

When did you buy your house? Chances are, if it was more than a few years ago and you haven't refinanced, current interest rates are lower than what you got when you initially took out your loan.

And lower interest rates mean less money spent on your mortgage.

Wondering how to take advantage of these low rates? Read on to learn about three strategies for refinancing - and how they could help you pay less on your mortgage.

Strategy #1 - Lower Your Interest Rate by at Least .5 to 1 Percent

If you want to cut down your monthly payments, refinancing your mortgage to the same terms as you have now - but at a lower interest rate - is one solution.

According to a "December 2012 U.S. Economic & Housing Market Outlook" published by Freddie Mac, "mortgage rates fell to 65-year lows after the Federal Reserve began its third round of quantitative easing in September [of 2012]." This basically refers to the U.S. buying mortgage-backed securities in an effort to artificially stimulate the economy. And Freddie Mac expects rates to remain near record lows for the first half of 2013, though they might start going up at the end of this year.

"[Refinancing to a lower rate] can save someone a lot of money," Manke says. "Though it depends on the amount of reduction in the interest rate you'd need to make it ideal. One percent or [higher] is great, but sometimes it can even make sense to refinance for as little as half a percent reduction - as long as the costs of the loan are minimal and you're going to stay in the house for long enough to recoup the costs of the loan."

The Numbers: Let's say you've got a 30-year fixed $200K mortgage with a 4.5 percent interest rate. How would your situation change if you could refinance to a new loan at 3.5 percent? Let's plug in the numbers.


To read the entire article from Jennifer Berry | Yahoo! Homes:
http://homes.yahoo.com/news/refinance-now-to-save-big-011748759.html


Inspirational Quotes@Inspire_Us from Twitter:
Sooner or later, those who win are those who think they can. -Richard Bach


Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com. 

Personal Finance News Monday 5/6

Phil's Personal Finance Tip of the Day:

Middle class struggles to get good financial advice

Christine Dugas, USA TODAY


For about 20 years, Sue and Steve Manseau kept searching for a financial planner. Like most middle-class Americans, the couple found that the advisers they met didn't want their business.

Until recently, financial advisers have managed investment portfolios for affluent clients and charged more than the Manseaus could afford. Fortunately, a growing number of financial planners and online websites are serving middle-class families.

The advice that middle-class families need is much different than that of the affluent. "The recession mainly hit the middle class," says Stephen Brobeck, executive director of Consumer Federation of America. The middle class has been hit hard by job losses and increasingly costly benefits. The housing bubble also caused many home values to plummet. And because few of them have a pension plan, middle-income workers have to figure out how to save for retirement. Smart investing is only a small part of their needs.

YOUR MONEY: 401(k) fees make or break returns

"The financial planning decisions of middle-income families are more critical than that of wealthier people because they can't afford to make any mistakes," says Sheryl Garrett, the founder and CEO of the Garrett Planning Network, a nationwide network of fee-only financial advisers who specialize in serving the middle class.

The Manseaus, who live in Santa Barbara, Calif., are in their early 60s. Sue is a nurse and Steve is a salesman. Now that their two daughters are grown, their biggest concern is retirement, especially because of some bad investment decisions, the stock market crash and costly mortgages. "I have been afraid that we could not retire and that we are going to be the greeters at Walmart," Sue says.

To read the entire article from Christine Dugas, USA TODAY:
http://www.usatoday.com/story/money/personalfinance/2013/05/05/middle-class-financial-advice/2090441/

Inspirational Quotes@Inspire_Us from Twitter:
Life is change. Growth is optional. Choose wisely. -Unknown


Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com. 

Personal Finance News Saturday 5/4

Phil's Personal Finance Tip of the Day:

Strengthen your memory
May 2, 2013 By Harvey Mackay

“Do you know what today is?” a wife asked her husband as he left for work.

“Of course I know what today is,” grumped the husband.  “I can’t believe you would think I would forget such an important day.”  And with that the husband rushed to his car to conceal his panic and embarrassment.  Had he forgotten their wedding anniversary again?

That evening the husband returned home bearing a dozen roses and a beautiful dress from his wife’s favorite boutique.  “This should win me some points,” he thought to himself.

His wife could barely contain her excitement.  “My goodness!” she exclaimed.  “A dress AND flowers.  What a wonderful surprise.  But tell the truth, do you know what day this is?”

“Of course,” said the husband confidently.

His wife said, “Today is Arbor Day!”

Will he forget Arbor Day ever again?  Probably not.  But he will have a tough act to top his anniversary!

Most people who claim they have a poor memory actually have an untrained memory.  Twenty percent remember by hearing, so say things out loud.  Forty percent remember by seeing, and the other forty percent by doing, so write things down to prove to yourself that you know it.

But this isn’t anything new.  Confucius said 2,500 years ago:  “What I hear, I forget.  What I see, I remember.  What I do, I understand.”

You have heard me say many times – Pale ink is better than the most retentive memory.  In other words, write it down.  Brain clutter and interruptions can detour the best intentions to remember.

Ever had a great idea that you forgot almost right away?  Most of us have, and it can happen more frequently as we grow older.  It’s often said you can’t teach an old dog new tricks, but just about any healthy person can improve his or her memory. 


To read the entire article from Harvey Mackay:
http://harveymackay.com/column/strengthen-your-memory/


Inspirational Quotes@Inspire_Us from Twitter:
I can't go back to yesterday - because I was a different person then. - Lewis Carroll


Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com. 

Personal Finance News Friday 5/3

Phil's Personal Finance Tip of the Day:

The Best Places to Fly This Summer
Airfares to Many U.S. Destinations Have Fallen as More Head Overseas; Deals to Denver

By Scott McCartney | The Wall Street Journal 


If you haven't booked your summer plans yet, brace yourself: There's actually good news this year, for a change. Airfares to many popular U.S. destinations have dropped.

Airline ticket prices for summer travel to Tampa, Fla., New York, Denver and Washington, D.C., have fallen, after steep increases for several consecutive years, according to Orbitz.com. The average ticket already purchased for summertime flights to Chicago is down more than 18% from the same period last year. Tickets bought for Honolulu are 10% cheaper than those bought during the same stretch of 2012. Lots of domestic destinations have seen soft demand and the biggest price drops have been in cities with more discount-carrier service than years before.

[More from WSJ.com: The Derby: It's About Where You Sit]

"A lot of big destinations are seeing double-digit price drops," said Jeanenne Tornatore, a travel analyst at Orbitz, the online ticket seller.

This good news comes as a surprise after several years of dramatic airline price increases, especially for holiday and vacation travel periods. High fuel prices have forced airlines to raise fares and fees, and consolidation and flight-schedule reductions have given them pricing power they didn't have before. In the second quarter last year, the average domestic airfare was up 28% from the April-to-June period in 2009.


To read the entire article from Scott McCartney | The Wall Street Journal :
http://finance.yahoo.com/news/the-best-places-to-fly-this-summer-160019002.html


Inspirational Quotes@Inspire_Us from Twitter:
Life is a great big canvas, and you should throw all the paint on it you can. -Danny Kaye
 
Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com. 

Personal Finance News Thursday 5/2

Phil's Personal Finance Tip of the Day:

How to Save One Million Dollars

By Jocelyn Black Hodes | DailyWorth 

The elusive million dollar milestone...is it reachable? Well, in short, yes. But not without some careful planning and discipline. Time is a key factor, of course. It all depends on your age, when you plan to retire, what kinds of accounts you use, your investment costs, and your risk tolerance. The more you are able to save on a regular basis, the less risk you need to take and the less time it should take to hit that first million.

Start Saving Now

If you are 35 and starting from scratch, for example, you need to save around $735 per month to have $1 million by age 65, assuming an 8% average annual return. If you are 40, you need to save around $1,135 per month. If you were willing to take on more risk with your investments and managed to average a 10% annual return, you would only have to save around $506 per month from age 35, or around $850 each month from age 40. If you were more conservative, you would need to save more. You get the idea. (You can use the SEC's calculator to plug in your age and determine monthly contributions.)

Keep in mind that these numbers do not take potential investment costs into account like management fees and fund expense ratios, which could decrease your annual returns by more than 2%. This means that you will likely need to contribute more and/or take on more risk to meet your goal. They also don't take into account inflation and taxes (we'll get to that in a minute).

To read the entire article from Jocelyn Black Hodes | DailyWorth:
http://finance.yahoo.com/news/save-1-million-dollars-000000825.html;_ylt=Ahcdxo7VbfT__kSTmOhE.HqiuYdG;_ylu=X3oDMTQ0dXRraDBvBG1pdANGUCBQZXJzb25hbCBGaW5hbmNlBHBrZwNmNzE1ODhmOC0xOTQyLTM3Y2QtYmFiOC03MzkxYmY1OWYwYmMEcG9zAzEEc2VjA01lZGlhU2VjdGlvbkxpc3QEdmVyAzMyNmM3NGExLWIyYTYtMTFlMi1iZTZjLTRlOWJhYzUzNjg0Zg--;_ylg=X3oDMTFkcW51ZGliBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3BtaA--;_ylv=3


Inspirational Quotes@Inspire_Us from Twitter:
If we did all the things we are capable of, we would literally astound ourselves. -Thomas Edison

Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com.

Personal Finance News Wednesday 5/1

Phil's Personal Finance Tip of the Day:

4 Online Tools to Fix Your Finances

Go online to budget, learn the basics, save money and ditch the paper.

By Lisa Gerstner, February 2012/Kiplinger
Follow @LGers

 

The Internet has changed the way we shop, get news and keep in touch. But it can also help organize your finances -- sometimes in ways you wouldn't expect. Here are four tools to get your budgets and bills in order.

SEE ALSO: Which Budgeting Site Is Best For You?

1. Budget and track. Link your financial accounts to Mint.com. The site downloads and categorizes income and expenditures from your accounts automatically, and offers snapshots of your cash flow with pie charts and graphs. A "Ways to Save" tool homes in on the most suitable banking and investment accounts and insurance policies based on your spending patterns or the information you enter. The "Goals" feature calculates how much cash you'll need to, say, build an emergency fund or buy a car. Check your budget as you shop with Mint's smart-phone application (for Android phones, iPhones and iPads).

2. Save for your goals. Take goal-setting up a notch by contributing to a savings account at SmartyPig.com. It's insured by the Federal Deposit Insurance Corp. and pays 0.7% interest on balances of $50,000 or less -- fatter than what you'll find at many banks. First open an account with a specific goal, such as funding a vacation. Then have automatic deposits transferred from your regular checking or savings account. You can also solicit donations from family and friends by sharing a link on Facebook and Twitter. When you reach your goal, you have a few options for redeeming the cash: Return the money to the funding account, load it onto a debit card, get gift cards from major retailers (for which you'll get cash-back incentives), or select some combination of the three.

Read more at http://www.kiplinger.com/article/spending/T057-C000-S002-4-online-tools-to-fix-your-finances.html#bLx6ObSJTEDkxulB.99


Inspirational Quotes@Inspire_Us from Twitter:
The harder I work, the luckier I get. -Samuel Goldwyn


Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com.