Credit Cards

Category: Finance, Financial Planning.

Banking/ Credit. You can save more than$ 100 a year in fees by selecting a checking account with a low( or no) minimum balance requirement that you can, meet, and do.

Checking. Request a list of these and other fees( including ATM and debit card fees) that are charged on these accounts. Direct deposit offers the additional advantages of convenience, and immediate access, security to your money. Banking institutions often will drop or lower checking fees if paychecks are directly deposited by your employer. Savings and Investment Products. An increasing number of products offered by these institutions, including mutual stock funds and annuities, are not insured.

Before opening a savings or investment account with a bank or other financial institution, find out whether the account is insured by the federal government( FDIC or NCUA) . To earn the highest return on savings( annual percentage yield) with little or no risk, consider certificates of deposit( CDs) or U. Savings Bonds( Series I or EE) . Once you select a type of savings or investment product, compare rates and fees offered by different institutions. Credit Cards. These rates can vary a lot and, can significantly affect, over time interest earnings. You can save as much as a thousand dollars or more each year in lower credit card interest charges by paying off your entire bill each month or by using a check, cash or debit card for purchases.

You can reduce credit card fees, which may add up to well over$ 100 a year, by getting rid of all but one or two cards, and by avoiding annual, and over, late payment- the- credit limit fees. If you are unable to pay off a large balance, pay as much as you can and switch to a credit card with a low annual percentage rate( APR) . Auto Loans. This could save you as much as several thousand dollars in finance charges. If you have significant savings earning a low interest rate, consider making a large down payment or even paying for the car in cash. You can save as much as hundreds of dollars in finance charges by shopping for the cheapest loan. Contact several banks, and the auto, your credit union manufacturer s own finance company.

For We Must Always Remember That Finance Is Only The Handmaid Of Industry

Category: Finance, Financial Planning.

Capital, is wealth invested, then in industry, finance is the machinery by which this process of investment is carried out, and international finance is the machinery by which the wealth of one country is invested in another.

So here we have this quiet country doctor spreading all over the world the money that he gets for dosing and poulticing and dieting his patients, stimulating industry in many climates and bringing some part of its proceeds to be added to his store. Let us consider the case of a doctor in a provincial town who is making an annual income of about L800 a year, living on L600 of it and saving L20Instead of spending this quarter of his income on immediate enjoyments, such as wine and cigars, and journeys to London, he invests it in different parts of the world through the mechanism of international finance, because he has been attracted by the advantages of a system of investment which was fashionable some years ago, which worked by what was called Geographical Distribution. [2] This meant to say that the investors who practised it put their money into as many different countries as possible, so that the risk of loss owing to climatic or other disturbances might be spread as widely as possible. Let us see how the process works. As long as his money is in the bank, the bank has the use of it, and not much of it is likely to go abroad. First of all he has a bank, into which he pays day by day the fees that he receives in coin or notes and the cheques that he gets, from those of, each half year his patients who have an account with him. For the banks use most of the funds entrusted to them in investments in home securities, or in loans and advances to home customers. A bill of exchange is an order to pay.

Part of them they use in buying bills of exchange drawn on London houses by merchants and financiers all over the world, so that even when he pays money into his bank it is possible that our doctor is already forming part of the machinery of international finance and involving us in the need for an explanation of one of its mysteries. When a merchant in Argentina sells wheat to an English buyer, he draws a bill on the buyer( or some bank or firm in England whom the buyer instructs him to draw on) , saying, "Pay to me" (or anybody else whom he may name) "the sum of so many pounds. " This bill, if it is drawn on a firm or company of well known standing, the seller of the wheat can immediately dispose of, and so has got payment for his goods. These bills of exchange, are promises to, when thus accepted pay entered into by firms of first- rate standing, and are held as investments by English banks. Usually the bill is made payable two or three, or sometimes six months after sight, that is after it has been received by the firm on which it is drawn, and" accepted" by it, that is signed across the front to show that the firm drawn on will pay the bill when it falls due. Bills of exchange are also drawn on English houses to finance trade transactions between foreign countries, and also as a means of borrowing money from England. When they are drawn on behalf of foreign countries, trading with other foreigners, or using the credit to lend to other foreigners, the connection with international finance is obvious. When they are drawn on behalf of English customers, the credit given is given at home, but as it is( almost always) given in connection with international trade, the transaction may be considered as part of international finance.

They are readily taken all over the world, because all over the world there are people who have payments to make to England owing to the wide distribution of our trade, and it has long been England s boast that bills of exchange drawn on London firms are the currency of international commerce and finance. Certainly this danger is a real one, but it does not follow that we shall not be able to meet it and defeat it. Some people tell us that this commanding position of the English bill in the world s markets is in danger of being lost owing to the present war: in the first place because America is gaining wealth rapidly, while we are shooting away our savings, and also because the Germans will make every endeavour to free themselves from dependence on English credit for the conduct of their trade. If the war teaches us to work hard and consume little, so that when peace comes we shall have a great volume of goods to export, there is no reason why the bill on London should not retain much if not all of its old prestige and supremacy in the marts of the world. She is often a pert handmaid who steals her mistress s clothes and tries to flaunt before the world as the mistress, and so she sometimes imposes on many people who ought to know better, who think that finance is an all- powerful influence. For we must always remember that finance is only the handmaid of industry. Finance is a mighty influence, but it is a mere piece of machinery which assists, and lives on, quickens production.

The men who make and grow things, and carry them from the place where they are made and grown to the place where they are wanted, these are the men who furnish the raw material of finance, without which it would have to shut up its shop.

Read more...

What Is A 457 Plan - Finance and Financial Planning Articles:

What is a 457 plan? Contributions made to the plan with pre- tax money, and contributions are, earnings tax deferred while under the plan, and contributions are generally made by the employee, although some plans do have contributions by employees as well.

If You See Something You Think You Really Need, Give Yourself Two Weeks To Decide If It Is Really Something You Need Or Something You Can Easily Do Without - Ingrid Grimley's Finance and Financial Planning blog:

This is just a small example of impulse spending. Answer these questions truthfully: ) Does your spouse or partner complain that you spend too much money? ) Are you surprised each month when your credit card bill arrives at how much more you charged than you thought you had? ) Do you have more shoes and clothes in your closet than you could ever possibly wear? ) Do you own every new gadget before it has time to collect dust on a retailer s shelf? ) Do you buy things you didn t know you wanted until you saw them on display in a store?

Over The Last 10 Years The Western World Has Enjoyed The Biggest Property Boom In Its History

Category: Finance, Financial Planning.

Chances are that everyone has thought about their retirement plans at one point or another. Property, particularly in the form of a holiday home has become one of the biggest ways for people to save for their retirement with around seven million homeowners using the sale of their homes to help themselves.

Whether you are panicking about how you will support yourself or counting down the days, it s highly likely you have thought about where your funds are going to come from. Over the last 10 years the Western world has enjoyed the biggest property boom in its history. This has resulted in thousands of investors buying a holiday home so that they can make a tidy profit when it comes to selling on. Over the last decade house prices have boomed in almost every developed market with the exception of Germany and Japan. A great place to make this investment is in Menorca. Menorca villas normally have plenty to offer in the form of entertainment. There are many reasons for this but the main one is probably the fact that there is so much to do their which means that there is something to suit everyone.

For example, there is usually a swimming pool, tennis courts, gym, cafes and much more. British residents buying property abroad is not unusual and the value of property in developed economies has increased by$ 30 trillion over the last five years. This means that you don t even have to leave the complex if you don t want to or if you just fancy a quiet day. This trend started about 20 years ago and those who now want to sell up in time for their retirement are starting to reap the benefits. This means that you don t have to settle for something that you are not happy with because you are bound to find somewhere that you really like. As Menorca villas have become so popular over recent years, there are now plenty available to choose from. There are villas near the beaches, in busy resorts, in towns, in quiet resorts and in tourist areas so there is something to suit everyone s tastes.

It is very rare that house prices go down and if anything they are more likely to increase. Although prices have gone up, investing in Menorca villas is still likely to be a successful way of investing in your future. This means that there is a strong possibility that by the time you retire prices will have gone up enough to help fund your retirement. Bearing this in mind it is hardly surprising that many people are buying Menorca villas instead of a second property in the UK.

Read more...

These Will Only Give Back A Small Amount Of Interest - Finance and Financial Planning Articles:

Few families pass on actual knowledge about wealth building to their children.

The Path To Financial Doesn T Have To Be As Complicated As We Tend To Make It - Roseann Bisson about Finance and Financial Planning:

There will be many terms you will come across during your research that will be somewhat confusing until you get the terminology down. I would like to take this opportunity to encourage you to seek the guidance and advice of a professional financial planner.

This Is How You Can Find The Best Estate- Planning Attorney For Your Family - Tara Mayne about Finance and Financial Planning:

Finding a good estate- planning attorney is vital for the success of your estate plan.

Tied Advisors: These Advisors Can Only Sell And Advise On Products From One Bank Insurer S Own Range

Category: Finance, Financial Planning.

Wealth strategies that address this altering future are also changing every day, bringing a greater level of complexity to the decision making process.

Financial advisors must have increasingly sophisticated methods for synthesizing the information into high- quality advice. With the advent of at- your- fingertips technologies, we live in a global society rich in information and knowledge. Before web- based information, most individuals had a" Do it for me" approach. Recent studies show that today, the emerging model is more of a" Do it together" approach. During the 1990 s, there was a dramatic shift with more people wanting to" Do it myself, " approach that worked for some and was fatal to many. What it means is that people want an advisor with financial prowess who understands them individually.

However, with the interactions of various complex financial products, professional help is very useful and it s worth paying an advisor to ensure you get it right, especially on the following: annuities, financial and tax, endowments planning, mortgages, investments, protection products and pensions. They also want one who realizes that the decision- making process includes an ongoing dialogue with their advisor so they understand the decisions they are making. Advisers are legally divided into one of three types. Tied Advisors: these advisors can only sell and advise on products from one bank insurer s own range. Independent Financial Advisors: these people can advise and sell products from any provider right across the market and are obliged to give the best advice. Their job s to try to sign you up to one of their companies products.

While this is better than tied advisers, it s still not your best choice because of the strict rules they must follow. Multi- tied Advisors: these advisors are allowed to sell and advise on products from a limited panel of firms. If you are going to get professional advice, always check to make sure you obtain an Independent Financial Advisor. Also, tax accountants are often crucial and unavoidable if you re self- employed or have complicated tax affairs. These advisors are able to look at products from the entire market, unlike tied or multi- tied advisors who can only sell from a limited range. Mortgage brokers will look at all of the mortgage lenders to pick the best price for you and evaluate your personal situation.

They have proven to be uncompetitive, limited in range and often try to persuade you to purchase products totally unnecessary. And last, it is advised not to use a bank manager for money advice.

Read more...

There Are Many Benefits To Having Your Money Problems Under Control - Finance and Financial Planning Articles:

I could only guess what a great feeling it would be to be totally out of debt. Although most people will have a hard time getting a handle on the money that goes through their hands if you plan everything right you most certainly can take control of your money.

Have You Considered Real Estate Mutual Funds - Finance and Financial Planning Articles:

Income is hard to come by these days. The bond market is in disarray, credit spreads are widening( meaning the price of existing bonds is declining) and there are serious liquidity issues( which also impact value) .

The Policy Has A Large Loan - Finance and Financial Planning Articles:

Most people do not know they can sell an insurance policy. Even term insurance, which has no cash value, is a candidate for purchase.

But Maybe Living With Aunt Gertrude For The Rest Of Your Life Is Not Your Ideal Retirement Scenario

Category: Finance, Financial Planning.

The beginning of a new year is the traditional time to gaze into that proverbial crystal ball and make your New Years resolutions.

No question about that. And hey, this time you are really going to keep them, right? And in 2008, you really will stop your ten- year spending spree. If the US economy collapses as a result, there s always Aunt Gertrude in Germany who will take you in. Good for you! But maybe living with Aunt Gertrude for the rest of your life is not your ideal retirement scenario.

These will allow you to retire sooner than you ever thorugh possible. If you, like so many others, have been putting off thinking seriously( rather than just dreaming) about your retirement, maybe its time to add a few very specific resolutions to your New Years list. Below are five you might consider. Take the retirement readiness quiz( see below) to get a baseline evaluation of your situation. First, begin by doing, however a quick self- evaluation. This free quiz measures your readiness from various different perspectives, only some of which are financial. I Will Set A Date: I will determine the specific date I will retire, and I will write it down right here, right now!

Then, depending on what you learn, you can modify the following list to suit your needs: So here are your five retirement resolutions. Month/ Day/ Year: Wow. So, through my carefully- honed mathematical skills of subtraction, the time I have left before that date is( ) years and( )months. I did it! Oh my God! That s not much time! Really?

I better get going! I Will Remember The Happy Times: No, not just the great vacations! OK, here goes! Others who have thought of retirement as a perpetual vacation have mostly wound up disappointed and depressed. I Will Make a Life Plan: Based on this information, I will make a specific retirement life plan including( a) where I will be living, (b) what I will be doing in the first two years, (c) who I will be doing it with, and( d) what I want to accomplish. I know I will need to" get a( new) life. " In order to figure out what will make me feel happy and fulfilled in my new life, I will think about what I was doing when I was happiest and most satisfied in the past, and then plan to recreate those situations in my retirement life.

I Will Share My Plan and Get Buy- In: I will share this information with those closest to me to make sure they are bought in and supportive. I Will Create a Financial Plan: I will estimate how much this is all likely to cost on an annual basis, and then I will meet with my financial advisor to review both my life plan and my finances and develop a realistic financial plan which will ensure that my resources will be sufficient to support me for the rest of my life. I will make adjustments based on their feedback. Based on what I learn, I will make the necessary adjustments to bring my life plan in line with my resources. Whew! Then, I will begin immediately to make the maximum possible contributions to my retirement accounts every year before I retire. That was hard work!

And that will be easy, because in the past I have always kept all my New Years resolutions! Now all I have to do is make sure to keep all of these resolutions in 2008 and beyond. Right.

Read more...

A Budget Is Basically A List Of Expenses And Income - Finance and Financial Planning Blog:

It is fairly common knowledge that money matters can be simplified and controlled with a budget. It is not a really hard task, but one that many people avoid.

Not Having Savings Often Leads To Debt Spending - Finance and Financial Planning Blog:

Saving Money is the key to financial freedom. Inside many people simply feel that life is for living now, not for sometime never in the future and anyway they already contribute to a 401k.

The First Is A Medical Power Of Attorney - Ingrid Grimley's Finance and Financial Planning blog:

Few topics confuse investors more than figuring out what estate- related documents they need.

This Serves As A Guideline For Making Winning Grant Proposals.

Category: Finance, Financial Planning.

We all know how important grant writing is in getting considered for this kind of financial aid.

Their impression will be sullied right then and there, because the grant providers will feel that an applicant who makes a poor proposal will not have much talent to carry on the business either. There are several government and private organizations that are willing to provide grants to people and companies, but they will not consider those applicants whose proposals are shoddy or written in an inexperienced manner. And, the first impression, as they say is the last impression. This was a problem until a few years ago, when many well- meaning businesses did not manage to get the US government grants they hoped for because their proposals were not considered good enough. That is why grant applicants need to make their proposals very strong. However, today there are a lot of resources available that can teach you how to write for grants in a professional manner. This is what resources like the software available at unclesamsmoney software have to offer for prospective US government grants applicants: ?

Many people are using such resources nowadays to draft their grant proposals, seriously speaking, and, it is these proposals that are winning the much sought after United States government grants. There are several important strategies that grant applicants must know. US government grants software always has a help section to help people know about the right way of completing a grant application proposal. ? Some of these are like providing a proper goal about what their business is set out to do, the means they will employ and the procedures they will adopt to achieve these goals, making an estimate about the kind of money the project will require, etc. ? The tools will also provide prospective applicants with good examples on some proposals that have managed to really get US government grants. Nothing works better than a professionally worded proposal.

This serves as a guideline for making winning grant proposals. ? Among other things, it creates the impression that the applicant has actually taken the time and effort to apprise themselves of the grant related language. However, it is not easy to lay hands on such grant related terminology. ? That reflects excellently on the diligence of the applicant. They also provide you with several grant resources and important contacts that will help you see the actual grant money coming into your account at the end. They also have some training activities to help you understand the whole procedure better.

Read more...

- Articles:

Let S Look At The Retirement Plan First

Category: Finance, Financial Planning.

In the 6th century BC, Aesop gave us a timeless moral in The Ant and The Grasshopper: "It is thrifty to prepare today for the wants of tomorrow. " In the early twentieth century, Italian writer Luigi Pirandello gave us more food for thought for our preparations: "Whatever is a reality today, whatever you touch and believe in and that seems real for you today, is going to be- like the reality of yesterday- an illusion tomorrow. " What do these wise words have to do with financial planning? While it can be useful to look at the past at what your parents did to be successful, it may not lead to the best results.

Simply stated, it means that being prepared for tomorrow requires you to look forward to what tomorrow will be like. You therefore need to ask what your world will look like when you get to retirement. What will your tax burden be? More specifically: What can you expect from your investments? Will you retire into the same set of circumstances that your parents or grandparents did? Due to the aging of Baby Boomers and longer life expectancy, the number of people over age 65 will reach almost 20% of the population by 2030, up from 14% today. One thing we know for sure is that the coming two decades will see the largest group of retirees in our history, with over 82 million Americans in or entering retirement.

What does this mean for your nest egg? To prepare for these eventualities, you will need to put your current and future resources and assets to their best and highest uses. For starters, since we re likely to see higher taxes in the years ahead along with lower social security benefits, you will need more of your own resources for retirement. For most people, this means their homes and retirement plans( IRAs and 401ks) . We have been taught for as long as we can remember to maximize our pretax and deferred taxation plans to prepare for retirement. Let s look at the retirement plan first.

Notwithstanding this advice, most people still haven t saved enough to create a comfortable retirement. S. households is$ 49, 94If you ve done better than this, be thankful. According to the Bureau of Labor Statistics, the average amount saved by U. But what will happen to your nest egg if the two scenarios outlined above( higher taxes and longer life) come to pass? Regardless of whether you re in a higher tax bracket or not, you can expect to pay as much as ten times more in taxes over your lifetime than you saved by deferring them. What nobody told you when you started putting all of that money away in tax- deferred accounts, was that when you start taking it out you will( a) probably be in a higher tax bracket, and( b) will need to pull more money out to keep the lifestyle you are used to. It may therefore be smarter to stop putting so much money away in these plans, or to pay your taxes early in retirement and put these dollars in accounts that can generate future tax- free income.

For those in the 50- plus age bracket, you can create a tax- free retirement plan by putting up to$ 15, 000 per year into these plans using after- tax dollars. If you are still working, ask your employer if they will offer the new Roth 401k plan. If you are currently maximizing your 401k contributions, you may want to lower the amount to what your company will match, and put the rest into a private retirement plan or a Roth 401k. Here, traditional wisdom teaches you to pay your home off in order to be debt free. The second area to examine is your home equity. In the process, you tie up hundreds of thousands of dollars that are not growing, and in fact are at grave risk should your home lose value due to market conditions or natural disasters.

We think there is a better way to manage this very important asset. Senator Trent Lott, lost over, for example$ 400, 000 in equity when his house was destroyed by Hurricane Katrina, even though he had flood insurance. If you could invest these equity dollars and earn a safe, liquid return on them, you could create additional retirement funds that, could generate tax, if invested properly- free income. Andrew. This concept is best explained in the book" Missed Fortune 101" by Douglas R. Doug has worked with these concepts for over 25 years, and has helped many hundreds of families create more income with less risk and greater choice and control.

I would recommend you find one in your area. There are also many professionals trained by Doug to deliver this information in public seminars throughout the country. Ultimately, creating and preserving wealth requires knowledge and discipline. It would be best to start both today. Knowledge can be learned or purchased, but the discipline must come from you.

Read more...

Educator Expenses - Finance and Financial Planning:

How many times have you done your taxes, and a week or a month later realized you forgot a deduction? In my experience, these are the top 5 missed deductions.

Why Seniors Don T Buy Long Term Care - Dale Simms's Finance and Financial Planning blog:

In the next few minutes you will learn about a new insurance industry product that provides long term care insurance coverage if you ever need it, but requires no policy, premiums or health qualifications. In my experience, over half the people who shun long term care insurance do so because they feel they will never need it.

Also, Your Joint Tenancy With Another Person May Prevent Your Children From Inheriting Such Joint Assets - Casey Colston about Finance and Financial Planning:

If you are a woman, and have assets, are financially secure that you expect to pass on to people you love and care for, you must make a suitable estate plan.

This Is Because A Prenuptial Agreement Is Not Foolproof

Category: Finance, Financial Planning.

A prenuptial agreement is a legal document that financially protects both people who are about to get married.

Unfortunately, many people develop what they think is a foolproof prenuptial agreement, only to have the document thrown out by the courts during divorce proceedings. With a prenuptial agreement, a couple can protect a family inheritance, or ensure that, a successful business children from a previous marriage are cared for financially in the event of a divorce. This is because a prenuptial agreement is not foolproof. Without following these guidelines, a person entering into marriage risks losing everything he has in the event of a divorce. Therefore, many guidelines must be followed when developing a prenuptial agreement in order to ensure that assets are properly protected. Make a full written disclosure of all assets and liabilities of both parties. Obviously, the courts will be far less forgiving of the person who failed to disclose information.

If it is shown that one or both parties failed to disclose assets or liabilities, the prenuptial agreement can be deemed invalid by the courts. Therefore, an important part of protecting assets is to come clean about them in the first place. The courts have the right to invalidate an entire prenuptial agreement, or portions of it, if it is considered unreasonable or unfair. Make sure the terms of the prenuptial agreement are reasonable and fair. In particular, a judge might throw out child support or custody agreements as outlined in a prenuptial agreement if these agreements are not in the best interest of the child. These will be looked down upon by the court and can result in the entire prenup being thrown out.

Also, a prenuptial agreement should not include frivolous demands, such as who will take care of which chores. Make sure both parties are represented by separate legal council. After doing this, two different lawyers should be contacted to finalize the prenup. Before seeing a lawyer to draw up a prenuptial agreement, the engaged couple should sit down together and discuss what they each believe should be included in the agreement, such as individual assets, and other marital, children issues. If only one person has legal representation, or if the same lawyer represents both parties, when developing a prenup, the entire agreement can be invalidated. When separate lawyers are hired, the lawyers work together to write the agreement, with each representing the best interest of their own client.

This is because one person can claim to have been unable to completely understand the prenuptial agreement before signing it. Both parties having separate legal representation ensures that they each had the opportunity to have the prenuptial agreement completely explained prior to agreeing to it and signing it. Laws about prenuptial agreements are not consistent from state to state. Be sure to check into laws specific to the state the marriage will take place. For example, some states require that a prenuptial agreement be notarized or witnessed, while others do not. Make sure both parties have time to look over the agreement.

Therefore, it is important to consult a lawyer who is familiar with the laws specific to the state in which the engaged couple will reside after marriage. A court is less likely to uphold a prenuptial agreement that was completed and signed shortly before the wedding date. If the court has any reason to believe one of the parties felt forced to sign the agreement, it becomes invalidated. In the eyes of the court, a prenuptial agreement that was signed shortly before the wedding date shows signs of coercion. Therefore, a prenuptial agreement should be signed at least one month before the wedding date. A prenuptial agreement is an important document that must be taken seriously.

This also gives both parties time to think it over and to back out of the agreement before it is finalized by a wedding. The future of both parties may depend upon it.

Read more...

Should You Trust Or Not Trust - Finance and Financial Planning Articles:

Living Trusts have become very popular and are being heavily promoted to seniors. That is the question.

Communicate The Fund Raising Idea - Finance and Financial Planning:

In the next few minutes, you are going to learn the steps to implement a fund raising idea that can raise significant cash within a very short time frame.

You May Still Be Subject To State Gift Taxes - Finance and Financial Planning:

Doris from Minnesota is considering transferring her assets to her son so they won t be lost to Medicaid should she need assisted- living or nursing home care. One of the greatest financial risks seniors face is the rising cost of healthcare, including the cost of custodial care in an assisted- living facility or nursing home.

If You Are Covered By FERS, Or CRS Offset, CSRS, You Are Eligible For A TSP Plan

Category: Finance, Financial Planning.

What is a thrift savings plan? The TSP falls under the category of what is known more broadly as a type of defined contribution plan, and is administrated and regulated by the Federal Thrift Investment Board.

A thrift savings plan or TSP is a retirement plan for civilians who are employed by the United States government and are members of the Uniformed Services of the United States. TSP plans are similar to 401k plans, since the retirement funds in the account depends on how much has been contributed both by the employee and their employer during their working years, as well as the earnings of these contributions. If you are covered by FERS, or CRS offset, CSRS, you are eligible for a TSP plan. Which employees are eligible? All participants are eligible to receive tax deferral on contributions, in service withdrawals for financial hardship beginning on or after age 59, a choice of five investment funds, the ability to transfer monies from other eligible retirement savings account plans into a TSP account, a loan program and a choice of post separation withdrawal options. Employees who are under the CSRS or civil service retirement system are eligible for a TSP plan, but are not eligible for matching contributions. For certain FERS civilian employees, with a TSP plan, the government also makes automatic matching contributions.

Typically, the matching contributions, in this case are one percent independent of employee contributions, and then. 05 percent for each one percent contributed by an employee thereafter. In the case of FERS employees, the TSP is one of three parts of total retirement coverage, and FERS employees have the option of receiving two different types of agency contributions to their TSP accounts, can equal as, which together much as fiver percent of basic pay. Military members and those serving in the armed forces, are not eligible, generally for these matching contributions. These are known as agency automatic and agency matching contributions respectfully. With an agency matching contribution, once an employee becomes eligble, the agency will match the first three percent of basic pay, with the next subsequent two percent of basic pay matched fifty cents on the dollar. With an agency automatic contribution, once an employee is eligible, their agency automatically makes deposits into their TSP account, regardless of employee contribution amount, up to one, as stated above percent of basic pay, up to the IRS allowed annual limit.

Be Careful With Your Money

Category: Finance, Financial Planning.

Ten dollars is ten dollars. Not really.

Right? I' ve been exploring making money on the internet and recently checked my google adsense account. I was really pleased. I have just crossed the ten- dollar mark. This is the first money I have made entirely on my own, without depending on an employer to pay me, or needing a base capital with which to start investing. On a per hourly rate, it would have made me slightly under one cent an hour. I worked really hard for it.

Pathetic. Last week, I was also given ten dollars from the supermarket I regularly shop at. But I will treasure this money. It came in the form of a voucher as I had accumulated enough points. Afterall, it was free extra money. I spent it immediately. I was told of a study that was done.

If you had bought a cinema ticket for ten dollars, and on the way to the show, dropped the ticket. People were given a scenario. Would you buy another ticket? Then the scenario was changed. About fifty percent said yes, and fifty percent said no. This time, you are on the way to see a show, and you drop ten dollars.

This time, ninety percent said they would! Would you still buy a ticket when you reach the cinema? The point of the study was to prove that we all think about money differently, even though the value is still the same. The hours you put in, the time you sacrificed from your family and friends for the company. Think about your salary. That money was hard- earned. Now think about your bonus.

You would be very careful with how you use it. Say the company did extra well this year, and gave out a much larger than expected bonus. They rush out and treat themselves to a new toy/ dress/ handbag/ sofa, put down a downpayment for a new TV, or go on a well- deserved holiday. What do most people do? At best, the bonus is spent. The same happens when people get a raise.

In some cases, they are in more debt than before. They rush out and put a downpayment on a bigger property, or a new car, putting themselves in greater debt than before. One often hears how people with money problems keep hoping to win the lottery, thinking that all their money problems will be solved. What about those who are lucky enough to win the lottery? But ask them what they will do with the money if they got it and the answer generally involves spending it. It has been described as people taking a financial laxative.

Before long, it is all gone too. As soon as money comes in, out it goes again. It is not how much money you make, but how much you keep. We need to learn how to manage our money. Too many people are ignorant about how to handle money. For those who learn to manage their money, it just keeps increasing.

As a result, money keeps flowing away from them. The poor only have expenses. The middle- class buy liabilities they think are assets. Any money that comes in is used up immediately for daily needs. They buy a bigger house, a car and, a vacation home list all these down as assets. The rich buy assets. But these all cost them money to maintain.

These put money into their pocket. They can be houses which generate rental income, stocks with dividends or businesses which generate free cash flow. Assets come in many different forms. The more assets the rich buy, the richer they become. They are entirely dependent on their jobs. Some people who appear rich are really poor by this definition. We have to learn to see money for what it is.

If we treat all kinds of money with the respect it deserves, it can help us towards our goal to be financially free. It is the same numerical value, whether it was hard- earned, or" free" . I just got an email recently informing me I would get my bonus this year. Instead, I should be putting some time and effort to find out what I can do with this money so that it will grow and work for me, generating more money. It came with a little joke at the end saying" you can still go for the sales! " Once spent there, it would become worthless. I' m not sure how true the story is.

He stooped down and picked it up. I once heard a story that Warren Buffett was in a lift when he spotted a 1 cent coin. As he put it in his pocket, he grinned at the surprised looks of the others in the lift, and said" The beginning of my next billion! " The exact story may or may not be true, but the lesson behind it is true. Take time to learn about it. Be careful with your money. And it will help you to be financially free.

You Will Receive A Credit Card Plan That Has The Lowest Interest Rate They Offer

Category: Finance, Financial Planning.

As you probably know, credit cards are some of the most valuable tools in our modern world.

However, although bank card are a great asset to our society, they do carry a major problem with them- they have interest rates that are incredibly high, leading many people to fall into a debt trap from which they will never escape. They allow us to buy all sorts of goods and services that we otherwise could never hope to afford at one time. But, if you are a heavy credit card user and you want lower credit card interest rates, you may be amazed about how easily you can do so. The first involves dealing with the credit card companies directly while the second involves finding a separate loan with lower interest rates than you can get from a credit card. There are two distinct ways in which you can get lower credit card interest rates. If you want to actually get lower interest rates on your credit card from the credit card company itself, you will first have to make sure that you have a good credit rating. You will receive a credit card plan that has the lowest interest rate they offer.

Then contact the company that you want a credit card from and give them your information. Also, you can contact the credit company and have them lower your rate if you have paid all of your bills on time. For example, a home refinance loan can provide you with lower bank card interest rates so long as you use the money from your home equity loan to pay off any outstanding credit card bills that you may have. Alternatively, if you want another way of dealing with the high interest rate bank card, you can pay off your bills with a separate loan. The bottom line is that is you are serious about the task of obtaining a lower bank card interest rate, there are plenty of ways to accomplish this end. But by taking your time and investigating your options thoroughly, you will be able to uncover the best alternatives for your financial situation and ultimately come up with the solution that provides the perfect solution.

The process may require some patience on your part, as you may not be able to accomplish your goal over night. Why not begin your investigation today? The sooner you begin, the sooner you will enjoy that lower rate of interest.

A Health Care Power Of Attorney Is Activated By Your Incompetence

Category: Finance, Financial Planning.

Living wills have received a great deal of attention due to the recent Terry Schiavo situation. By having a proper Living Will, you can avoid such confusion.

Because her end- of- life wishes were in dispute, family members battled each other in the courts over her treatment and care. But a Living Will doesn' t ensure you have all your bases covered. A Living Will deals with end- of- life issues. There are other equally important documents you must have in place. But what if you' re incapacitated- -unable to make your own medical decisions- - for a short time? What if you' re widowed, divorced or unmarried and you don' t have a spouse who can legally make medical decisions when you can' t?

Who makes medical decisions for you then? A health care power of attorney allows you to state whom you choose to make medical decisions on your behalf should you not be able to make them yourself. A health care power of attorney is especially important for those who have lost a spouse and have several living children. You can also list alternates, should your first choice be unable or unwilling to serve. Often if Mom or Dad become seriously ill, it's the out- of- town child that pushes to do everything they can to extend their parent's life. Now that she's in a coma, they have trouble grasping the concept that Mom will never be the same again.

The last time they saw Mom, she was busy fixing Thanksgiving dinner. And if Mom doesn' t wish to be hooked up to machines for weeks on end, her out- of- town child might not understand. You can eliminate that situation by designating one child to be your attorney- in- fact. You can just imagine the kind of arguments that can arise when children don' t agree on the proper care of their parent. Clearly state in writing through your Living Will and your health care power of attorney, what your specific wishes are. Then if the time comes, you' ve greatly eliminated any possible confusion and ambiguity.

Communicate those to your children, especially your chosen representative. A health care power of attorney is activated by your incompetence. With the new HIPPA regulations, this can be a problem. Incompetence is often determined based on the opinion of two doctors. For instance, your doctors may not be willing to offer that opinion citing HIPPA restrictions( HIPPAA does not restrict release of information in those situations) . With all the focus on health care and medical issues, many people forget the practical financial issues that can arise when someone is incapacitated.

So make sure your health care power of attorney includes language authorizing the release of that information. I' ve seen first hand situations where one spouse develops dementia but still has assets in his or her name. In these cases, the courts have to determine guardianship, which is not only expensive, but emotionally draining for the family. The other spouse is helpless to manage those assets or use them to help cover their loved ones' care. All this can be avoided with a Durable Power of Attorney for assets. You determine when you would like their authority to begin. In this document, you choose a representative to make financial decisions on your behalf.

This makes it much easier to pay your bills, manage your retirement, file your taxes accounts, etc. If you have minor children, there's one more document you really must have. And again you can list alternates in case something keeps your first choice from serving. The Appointment of Guardian states your choice for who will raise your children in the event of your death. This document can help your kids avoid being caught in a legal tug- of- war. The court still has to make guardianship official, but this document will clearly express your wishes.

As the Terry Schiavo case shows us, these documents aren' t just for the elderly. Having them in place will not only make it easier on your loved ones should the unfortunate happen to you, but they will also help ensure that you are properly cared for according to your wishes.