Personal Finance News Saturday 5/11

Phil's Personal Finance Tip of the Day:

How to “Act” Confident

Do cocktail parties and company mixers make you feel like a shy teenager all over again? Learn how to make a good impression and keep the attention of your conversation partner by following these tips from acting coach Ron Burrus of the legendary Stella Adler Studio of Acting, in New York City and Los Angeles.

By Ron Burrus/Real Simple.com

Walk with purpose. A shuffling stride and droopy shoulders scream, “I’m terrified,” from 100 yards away.

Shake hands properly. Nothing says “wimp” like limp fingers. Bonus points for good eye contact.

To read the entire article from Ron Burrus/Real Simple.com:
http://www.realsimple.com/work-life/life-strategies/how-act-confident-00000000013654/index.html


Inspirational Quotes@Inspire_Us from Twitter:
Nothing great in the world has ever been accomplished without passion. - Georg Wilhelm Friedrich Hegel


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 5/10

Phil's Personal Finance Tip of the Day:

5 Habits You Didn’t Know Were Costing You

By Lisa Scherzer | The Exchange

 

Everyone has bad habits. Maybe you obsessively check Facebook while at dinner with friends, arrive late to meetings or interrupt people when they’re talking. Chances are you’re at least sometimes aware of these bad acts. But you might not realize how other habits are costing you actual money.

 

And we’re not talking about a daily Starbucks fix. If you get pleasure out of those lattes, by all means enjoy them.

But some other under-the-radar tendencies can end up sabotaging your financial health, and you may not even realize it.

1. You shop with friends

Shopaholics are typically portrayed by women in popular culture. But at least in one respect, men can out-shop women. A 2011 study, “The Influence of Friends on Consumer Spending,” found that men spend more when they’re accompanied by a friend than when they’re alone, and the effect wasn’t the same for women.

The results of four experiments showed that men shopping with a buddy spent 54% more than men shopping solo, while women spent about the same whether they shopped by themselves or not. The authors posit that the reason for the discrepancy comes from a key difference between men and women – albeit a gender stereotype. Men focus on status and “engage in self-promotion through increased spending while shopping with friends” – in other words, they tend to show off – whereas women are “communion-oriented,” meaning they aim for cooperation and harmony, "leading them to keep their spending under control in the presence of a friend."

 

2. You fall for complicated cellphone contracts

You buy a new smartphone; it comes with a monthly usage fee based on data consumed, an early termination fee and a complicated two-year contract. The problem: Many people underestimate how much data they’ll use and end up exceeding their plan limit, while others overestimate their future usage and pay for minutes they never use. Oren Bar-Gill, a professor at New York University’s School of Law, studied pricing misperception in the cellphone market, and found that many consumers choose the wrong plan for their needs.

In a 2009 study, Bar-Gill, author of “Seduction by Contract: Law, Economics, and Psychology in Consumer Markets,” analyzed data on the plan choice of more than 3,500 cellphone users and their usage patterns (how many minutes they talked each month for 20 months). He calculated the total amount each paid for service given their chosen plan, as well as the amount they would’ve paid given their actual usage. Bar-Gill found that more than 65% of users signed up for plans that didn’t fit their specific usage patterns, and based on that data, estimated that consumers lose a total of $13.3 billion annually.

To read the entire article from Lisa Scherzer | The Exchange:
http://finance.yahoo.com/blogs/the-exchange/5-habits-didn-t-know-were-costing-143008913.html



Inspirational Quotes@Inspire_Us from Twitter:
Educating the mind without educating the heart is no education at all. - Aristotle

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 5/9

Phil's Personal Finance Tip of the Day:

Fund a Roth IRA and Fill it With These Stocks

By Robert Ciura - May 9, 2013

Robert is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

Investors are constantly under a deluge of financial advice. With so many options and different types of investment vehicles and strategies, it’s no wonder most individuals feel overwhelmed by the prospect of retirement saving. However, planning for one’s financial future is a pivotal task, the importance of which cannot be understated.

One option nearly all investors would be wise to take advantage of is the Roth Individual Retirement Account (IRA), which allows a person to contribute money each year, albeit not deductible from one’s taxes, that will grow tax-free until retirement.

In that vein, since all capital gains and dividends are tax-free within a Roth, it’s generally advisable to keep high dividend stocks in a Roth. With that in mind, here are some great candidates for a Roth IRA.

Enjoy years of tax-free dividends

Some of the market’s best blue-chip stocks pay dividend yields nearing 5%. While interest rates are at historic lows and the markets keep surging to new highs, it’s still possible to capture high dividend yields without resorting to speculative companies you’ve never heard of.

Several well-known and well-managed businesses, including Altria (NYSE: MO) and Lockheed Martin (NYSE: LMT) pay dividend yields very close to 5% annualized.

To read the entire article from Robert Ciura/Motley Fool:
http://beta.fool.com/rciura/2013/05/09/fund-a-roth-ira-and-fill-it-with-these-stocks/33873/?source=eogyholnk0000001


Inspirational Quotes@Inspire_Us from Twitter:
Age is no guarantee of maturity. -Lawana Blackwell


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 5/8

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.