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TITLE: Information Regarding FHA Loans CONTENT: Everything You Need to Know About FHA Loans\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nIn the wake of the housing bubble's collapse in 2008, FHA loans have taken on a renewed importance for today's mortgage borrowers. An FHA loan is a mortgage insured by the Federal Housing Administration, a government agency within the U.S. Department of Housing and Urban Development. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.\nBecause of that insurance, lenders can offer FHA loans at attractive interest rates and with less stringent and more flexible qualification requirements.\nSeven Facts About FHA Loans\n---------------------------\n**1\\. Less Than Perfect Credit is OK** - A borrower needed a credit score of 580 or better to qualify for a loan.\n**2\\. Minimum Down Payment is 3.5 Percent** - This is a fraction of what a typical loan would require. Borrowers can use their own savings or a gift from a family member.\n**3\\. Closing Costs May Be Covered** - FHA allows home sellers, builders and lenders to pay some of the borrower's closing costs.\n**4\\. Lender Must Be FHA Approved** - Because FHA is not a \"lender,\" but rather an insurance fund, borrowers need to get their loan through an FHA-approved lenders.\n**5\\. Borrower Must Carry Mortgage Insurance** - There are two mortgage insurance premiums required by FHA: 1) an upfront premium of 1.75 percent of the loan amount and 2) an annual premium based on the length of the loan.\n**6\\. Extra Cash Can Be Available For Repairs** - FHA has a special loan product for borrowers who need extra cash to make repairs on their home.\n**7\\. Relief Allowed for Financial Hardship** - If a borrower has suffered a serious financial hardship, an FHA-insured loan can offer some type of temporary relief to help the borrower make their payments.\nWho Can Benefit From an FHA Loan?\n---------------------------------\nBy serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, the FHA program allows individuals to qualify who may have been previously denied a home loan through conventional underwriting guidelines. FHA loans are designed for individuals who would like to purchase a home but may not have been able to save enough money for the purchase, such as recent college graduates, those still pursuing education, or a young couple starting out. It also allows individuals to qualify for a FHA loan whose credit has been marred by bankruptcy or foreclosure, as FICO (credit) scores can typically be lower than those for a conventional loan. At the current time, it is our understanding that the minimum FICO score for qualification for an FHA Loan is 580, but with extenuating circumstances variations to this limit may be possible — always discuss this with your mortgage professional.\nUnderwriting Guidelines for FHA Loans\n-------------------------------------\nCredit guidelines have been revamped for FHA loans as well as most other types of loans, and even the minimum FHA credit standards are harder to meet in the current market.\n1. A stable 2-year employment record is required.\n2. Monthly debt-to-income has to fall within certain parameters. Your monthly mortgage payment cannot be more than 29 percent of your gross monthly income.\n3. Money for the downpayment should be yours and in your account for at least 6 months, but gift money is allowable.\n4. FHA mortgage loan underwriting guidelines require property appraisal and it must appraise for at least the purchase price.\n5. If you've had a foreclosure, you need to have re-established credit and it must be over 3 years since the date of foreclosure.\n6. If you've had a bankruptcy, you need to wait 2 years and have clean credit.\n7. The applicant cannot have any outstanding civil judgements or delinquencies on federal debts such as taxes or student loans.\nDifferent Types of FHA Loans Available\n--------------------------------------\n* FHA fixed-rate mortgages, or Section 203(b) loans, are the most common and popular type of FHA mortgage. The interest rate does not change with a fixed-rate mortgage. A fixed-rate FHA mortgage insures the lender for the total amount of the mortgage in case the buyer defaults. Fixed-rate mortgages can be taken out for periods of 10, 15, 20, or 30 years.\n* The FHA Renovation Mortgage, or 203(k), allows homeowners to borrow money for the purpose of renovating their home. Up to 110 percent of the cost needed to repair and renovate a home can be financed under this program. There are, however, restrictions regarding the types of renovations that will be allowed, and the minimum amount of the 203(k) is $5000.\n* FHA adjustable-rate mortgages, or Section 215, have interest rates that vary contingent on the current federal index. An adjustable-rate mortgage, or ARM, may be attractive under certain economic conditions as the interest rates are initially lower than interest rates on a fixed-rate mortgage. Typically, an ARM will be most beneficial to homebuyers who don't intend to stay in the home for more than a few years, as interest rates tend to increase over time.\n* FHA Bridal Registry Program allows a married couple to \"register\" with a lender, much like the namesake department store bridal registry. Relatives or friends can make gift payments into an interest-bearing account in the couple's name, which can later be used as a down payment towards a FHA mortgage.\n* Officer and Teacher Next Door Program. Typically, the homes which qualify for this program are located in areas of revitalization, or in moderately low-income neighborhoods that may have many vacant houses that have been identified as good candidates for redevelopment efforts. Through HUD and FHA, qualified teachers and law enforcement officers are able to purchase houses at a 50 percent discount and are required to make only a $100 down payment if the house is financed with a FHA mortgage.\nFHA loans are available to anybody but are used most often by first-time home buyers and low- to moderate-income buyers. The decreased down payment and lack of set income limit qualifications makes this type of mortgage even more desirable for many people, particularly first-time homebuyers and those with blemished credit. For more information, visit the HUD website at . END

TITLE: Information Regarding FHA Loans CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Information Regarding FHA Loans CONTENT: | | | | \n: . END

TITLE: Costs and Fees Associated with Getting a Home Loan CONTENT: Detailed Descriptions of Mortgage Loan Fees and Costs\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nDuring the process of buying a house, becoming educated and aware of the fees and costs associated with a mortgage loan is good idea. According to an annual survey by Bankrate.com in 2016, the state of New York had the highest average closing costs of $2,648 and Pennsylvania was the lowest with $1,734. These number were based on a $200,000 mortgage with a 20 percent down payment. Some fees can be negotiated down during the buying process but first you need to understand what these costs are and why some of them are needed.\nTitle Costs\n-----------\nThird-party costs are expenses paid to others such as attorneys, title companies, escrow companies, inspectors or insurance firms.\n_**Recording Fees for Deed**_  - These are paid to the county clerk to record the deed and mortgage and change the property tax billing.\n**_State and Local Fees_** - These fees can include mortgage taxes levied by states as well as other local fees.\n**_Pro-Rated Taxes -_**  Taxes owed such as school taxes, municipal taxes may have to be split between you and the seller because they are due at different times of the year. For example, if taxes are due in October and you close in August, you would owe taxes for 2 months while the seller would owe taxes for the other 10 months. Prorated taxes usually are paid based on the number of days (not months) of ownership. Some lenders may require you to set up an escrow account to cover these bills. If your lender does not require an escrow account, you may want to set up a special account on your own to make sure you have money set aside for these important, and large, bills.\n**_Title Search Costs -_** Usually your attorney or title company will do or arrange for the title search to make sure there are no obstacles (liens, lawsuits) to your owning the home.\n**_Homeowner's Insurance -_** Most lenders require that you prepay the first year's premium for homeowner's insurance (sometimes called hazard insurance) and bring proof of payment to the closing. This insures that their investment will be secured, even if the house is destroyed.\n**_Owner's Title Insurance -_** You may want to purchase title insurance for yourself so that if problems arise, you are not left owing a mortgage on a property you no longer own. A thorough title search (going back to 1900 if necessary) is often assurance enough of a clear title.\n**_Land Survey -_** Most lenders will require that the property be surveyed to make sure that no one has encroached on it and to verify the buildings and improvements to the property.\nFinance and Lender Charges\n--------------------------\nMost people associate closing costs with the finance charges levied by mortgage lenders. The charges you pay will vary among lenders, so it pays to shop around for the best **combination** of mortgage terms **and** closing (or settlement) costs. You may have to pay the following charges:\n**_Origination or Application Fees -_** These are fees for processing the mortgage application and may be a flat fee or a percentage of the mortgage.\n**_Credit Report -_** If you are making a small down payment (usually less than 25 percent), most lenders will require a credit report on you and your spouse or equity partner. This fee often is a part of the origination fee.\n**_Points -_** A point is equal to 1 percent of the amount borrowed. Points can be payable when the loan is approved (before closing) or at closing. For FHA and VA mortgages the seller, not the buyer, must pay the points. Even if you are not using an FHA or VA mortgage, you may want to negotiate points in the purchase offer. Some lenders will let you finance points, adding this cost to the mortgage, which will increase your interest costs. If you pay the points up front, they are deductible in your income taxes in the year they are paid. Different deductibility rules apply to second homes.\n**_Lender's Attorney's Fees -_** Lenders may have their attorney draw up documents, check to see that the title is clear, and represent them at the closing.\n**_Document Preparation Fees -_** You will see an amazing array of papers, ranging from the application to the acceptance to the closing documents. Lenders may charge for these, or they may be included in the application and\/or attorney's fees.\n**_Preparation of Amortization Schedule -_** Some lenders will prepare a detailed amortization schedule for the full term of your mortgage. They are more likely to do this for fixed mortgages than for adjustable mortgages.\n**_Appraisal -_** Lenders want to be sure the property is worth at least as much as the mortgage. Professional property appraisers will compare the value of the house to that of similar properties in the neighborhood or community.\n**_Lender's Mortgage Insurance -_** If your down payment is less than 20 percent, many lenders will require that you purchase private mortgage insurance (PMI) for the amount of the loan. This way, if you default on the loan, the lender will recover his money. These insurance premiums will continue until your principal payments plus down payment equal 20 percent of the selling price, but they may continue for the life of the loan. The premiums usually are added to any amount you must escrow for taxes and homeowner's insurance.\n**_Lender's Title Insurance -_** Even though there is a title search for any obstacle (liens, lawsuits), many lenders require insurance so that should a problem arise, they can recover their mortgage investment. This is a one-time insurance premium, usually paid at closing; it is insurance for the lender only, not for you as a purchaser.\n**_Inspection Required by Lender -_** If you apply for an FHA or VA mortgage, the lender will require a termite inspection. In many rural areas, lenders will require a water test to make sure the well and water system will maintain an adequate supply of water to the house (this is usually a test for quantity, not a test for water quality).\n**_Prepaid Interest -_** Your first regular mortgage payment is usually due about 6 to 8 weeks after you close (for example, if you close in August, your first regular payment will be in October; the October payment covers the cost of borrowing money for the month of September). Interest costs, however, start as soon as you close. The lender will calculate how much interest you owe for the fraction of the month in which you close. For example, if you close on August 25, you would owe interest for 6 days. In some cases this is due at closing.\n**_Inspection Fee -_**  In addition to inspections required by the lender, you may make the purchase offer contingent on satisfactory completion of some other inspections. You and the seller will need to negotiate these fees.\n**_Appraisal Fee -_** You may want to hire your own appraiser, either before you sigh a purchase offer or after seeing the results of the lender's appraisal. END

TITLE: Find Out the Real Costs of a Home Loan CONTENT: Costs Associated with a Home Loan When Using a Mortgage Broker\n--------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nIn this article, we will show you how a mortgage broker makes his\/her money on a mortgage loan transaction. Pay close attention as and you will see there are many ways one can skim money off the top of a deal. The following are the real costs associated with _every_ loan has ones where the broker makes no money on.\n* Appraisal\n* Title fees — title insurance, recording fees, title paperwork preparation\n* Processing fee — cost of hiring employees to process the loan\n* Mortgage insurance — for loans over 80 percent of the property's worth\n* Pre-paid interest\n* Credit report fees\n* Inspection fees — generally termite inspection\n_(For a more detailed description of these costs, see our detailed cost section.)_\nThe rest of the fees are split by the mortgage broker and the loan officer. No, we didn't forget about the origination fee.\nMortgage brokers buy loans from a bank and sell them to customers. Every bank has a _par_ rate, that is, a mortgage rate at which the broker does not have to pay a fee in order to buy the loan. An interest rate lower than the _par_ rate would cost the broker money; an interest rate higher than the _par_rate would pay the broker a commission.\nFollowing so far? If a mortgage broker gave you a loan at the _par_ rate, and only charged you appraisal, processing fee, title and credit report fees, he or she wouldn't make a dime from the deal. Remember, a broker collects no interest from the loan, or the _servicing fees_. The broker only collects a commissions from the mortgage which actually lends the consumer the money.\nSome brokers have limitation on how much a loan officer can charge in fees — the loan application fee, the origination fee and the points. However, most brokers split the profit earned from every loan with the loan officer. Can you see how it is in the interest of a loan officer to charge you more points and fees? It's money in their pocket.\nOf course, the brokers should be paid something for their services. The normal fees in the industry are an origination fee (1 _point_) plus one additional _point_. What's a _point_? A _point_ is 1 percent of the total loan amount. For example, one point on a loan amount of $50,000 is $500 dollars.\nThe terms of a loan when dealing with a mortgage broker are very flexible. To illustrate this point: Don't want to\/can't pay a lot of loan fees? Will it keep you from getting your loan? As a solution, the broker can raise the interest rate on your loan. How does this help? If the loan officer sells you a loan above the _par interest rate_ (the interest rate at which a loan costs nothing and pays the broker no fees), he will receive a commission from the bank selling him the loan. He still gets his money and you pay no loan fees. You will, however be paying these points in the form of extra interest for the life of the loan, which is much more expensive than paying the points up front at closing.\nOkay. You can pay a higher interest rate in lieu of points on your mortgage if you can't afford the up-front costs at closing.\nIn the reverse situation, if you wanted a loan at an interest rate which was **lower** than the par rate, the bank selling the loan charges the broker extra money for it, a cost he\/she passes on to you in the form of _points_. You will pay higher costs up-front at closing and less over the life of the loan due to a lower interest rate.\nWhen a broker receives _points_ from the bank for charging a higher interest than the _par_ rate, this is called _getting points on the backside_.\nThe reverse situation is paying extra points for a lower interest rate. This is called _buying down the interest rate._\nWhat if you suspect that your loan officer jacked up your interest rate to get more commission (_he received points on the back_) and didn't tell you about it? It does happen.\nAsk him or her. If you're not satisfied with the answer you can always figure out how much extra money the broker received by looking at your closing statement from the title company. Your title officer will gladly point it out. However, at this stage of the game, you're usually signing loan documents and it's too late to do anything about it short of canceling the deal. If you notice your mortgage company is getting three points on the back — meaning the interest rate you're getting is much higher than the par rate — you can always walk out on the deal. Some loan officers count on the fact that the moving van containing all your worldly possessions is parked outside and you won't do that.\nFees to Watch Out For\n---------------------\n* **Points** — Keep in mind, some brokers won't let their loan officers charge less than one point origination plus one point (known in the industry as _one and one_). But some do. Shop around, especially if you have A credit. Some loan officers will charge you less if they know your loan will be a piece of cake to put through the system.\n* **Application fees** — Application fees are non-refundable and they are 100 percent pure profit for the mortgage broker. Walk out if they ask for an application fee up front. The only exception to this rule: if you have tough credit. In this case, the loan officer will have to do a lot of work before they can tell if your loan will go through. Time is money and they want to be paid for this effort. If your loan gets denied without an application fee up front, the loan officer put in a lot of hours for nothing. END

TITLE: What is a Balloon Loan and Is It Right For You? CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 10, 2017_\nA balloon loan is a mortgage loan that requires a larger than usual one-time payment at the end of the term. This means your payments are lower in the years before the balloon payment is due. The problem with a balloon loan is that at the end of the term, you may be required to pay tens of thousands of dollars to pay off the remaining balance in full. Keeping that in mind, you have to make sure you will be prepared to make this very large payment at the end of the term of the loan.\nHow Does a Ballon Loan Work?\n----------------------------\nInterest rates on balloon loans may be either fixed or adjustable. You can also have interest-only loans. Nonetheless, the interest rate is lower and therefore payments smaller, since the bank will not have to service the loan for the full 30 years and get its money back in say 7 to 10 years instead. Another reason the payments may be lower is that the principal is only partly paid monthly, since there will be a big balance due at the end of the term.\nTo illustrate, compare a 7-year balloon loan of $100,000 at 6 percent interest and a 30-year traditional home loan of the same amount at 7 percent interest. With the balloon loan, you could make a monthly payment of only $520 and at the end of seven years, there will be a balance of $46,000 remaining in the principal amount, which you must pay in full. In contrast, for the traditional home mortgage loan, the monthly amortization is $665 for the next thirty years after which, the loan balance will be zero.\nWhat if You Can't Pay the Balloon Payment?\n------------------------------------------\nThe majority of borrowers are not likely to meet the required balloon payment at maturity, so balloon loans usually carry the reset option where the borrower can seek refinancing for their home. The new loan can also be another balloon loan or a traditional home mortgage loan with a longer term.\nThe lender may recommend or the borrower may choose the type of loan to be availed of for the refinancing, depending on the borrower's ability to repay the loan and his overall financial situation by then. As can be expected, the borrower chooses the type that charges the cheapest interest with the least monthly payment over the shortest period of repayment.\nARMs vs. Balloon Loans\n----------------------\nDo not be confused with a balloon loan and an adjustable rate mortgage (ARM) loan. Ballon loans deal with the manner of repayment and that your final payment is for one big amount. The classification of an ARM loan is based on how the interest is charged. ARM loans are usually availed of under the more conventional home mortgage loans. With adjustable rate mortgage loans, your initial interest is typically low but the rate is adjusted each year or two depending on the terms of your loan. When the interest on your loan is adjusted, your monthly payments also change as a result of the adjustment.\nYou are at an advantage with an ARM loan when the interest rate goes down. We are in one of those rare times when the mortgage rate is going down, definitely not the normal case. On the other hand, the advantage with a balloon loan is the flexibility to shop for a better rate when the time comes the loan has to be refinanced. While you may not be able to control the fluctuations of interest rate under ARM loans, there is no need for refinancing. This convenience is what attracts many borrowers to the ARM loan product.\nBalloon loans grew in popularity during the last surge in the housing market around 2006. Many home buyers sought 15-year balloon loans secured by second mortgages to pay for the down payment of their homes. This helped them avoid having to buy mortgage insurance. If you are in the market for a new house or a new loan, you may want to learn more about balloon loans. It might just be the type of loan you need.\nIs a Balloon Loan Right for You?\n--------------------------------\nIf you are planning on moving within the next 5 to 7 years, a balloon mortgage might be right for you, since you will be selling the home and closing out the loan at this time. Studies show most 30 year loans never make it to maturity, but are refinanced or paid off. If you are not planning on moving before your loan matures, you may be caught in a situation where your loan matures, but interest rates are high at the time of refinance, you may find yourself in a mortgage with a crippling interest rate. END

TITLE: HIdden Costs That Increase Your Home Purchase or Refinance CONTENT: Beware of the Hidden Costs of Your Home Loan\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nIf you have gone through the home buying process, then you know there are lots of fees associated with a home loan. If you have not, this article will be an eye opener for you prior to jumping into a mortgage loan. The majority of the closing costs and fees are an integral part of every loan and can not be altered by the loan officer or mortgage company. But, there are fees and hidden costs that the loan officer is in complete control over. These fees are just gravy for the officer and mortgage company. Unfortunately, the typical consumer is unaware of these costs because they are hidden in the loan paperwork and closing documents.\nProfitable Fees For a Mortgage Company\n--------------------------------------\nThe following fees determine the profit on a loan and are in complete control of the loan officer or mortgage broker. There is no standard for these fees so the unscrupulous loan officer will try and make as much as possible from you with these fees.  Most loan officers are not paid a salary, they are paid through commissions from every loan they originate that closes. This puts the pressure on them to make as much money as possible, wherever possible. Loan officers typically split the profits (usually 50\/50) for each loan with the company for which they work. Therefore, every dollar they can squeeze out of you is 50 cents into their pocket. To originate a loan, the loan officer merely gets a client to fill out a loan application.\n* **Origination or Application Fees —** These are fees for processing the mortgage application and may be a flat fee or a percentage of the mortgage. They usually are equal to one point. In fact, they are just a point called by a fancy name so the loan officer can charge more for the loan.\n* **Points —** A point is equal to 1 percent of the amount borrowed. For example, one point on a loan amount of $50,000 is $500. Points can be payable when the loan is approved (before closing) or at closing. For FHA and VA mortgages, the seller-not the buyer-must pay the points. Even if you are not using an FHA or VA mortgage, you may want to negotiate points in the purchase offer. Some lenders will let you finance points, adding this cost to the mortgage, which will increase your interest costs. If you pay the points up front, they are deductible from your income taxes in the year they are paid. Different deductibility rules apply to second homes.\n* **Application Fees —** Application fees are non-refundable and 100 percent pure profit for the mortgage broker. Walk out if they ask for an application fee up front. The only exception to this rule is if you have tough credit. In this case, the loan officer will have to do a lot of work before he can tell if your loan will go through. Time is money and he will want to be paid for this effort. If your loan gets denied without an application fee up front, the loan officer has put in a lot of hours for nothing.\n* **Points On the Back End —** These are fees and commissions earned by the mortgage broker by selling you a loan whose interest rate is above the going rate. \nThe normal fees in the industry are an origination fee (1 point) plus one additional point. Some brokers have a limit on how much a loan officer can charge in fees-the loan application fee, the origination fee, and the points, but not all. However, there is no absolute hard and fast rules.\nGetting Points on the Back End\n------------------------------\nAlso known as _yield-spread fees_, these points on the back end are one of the ways a loan officer makes more funds available to the total loan \"kitty.\" It is essentially a kick-back from the mortgage bank the loan officer is buying the loan from, earned by selling a customer a loan at an interest rate that is above the going rate.\nEach day, loan officers receive rates from banks for all of their loan programs. Listed for each program is the par interest rate. The par interest rate is the interest rate at which the broker does not have to pay a fee to buy the loan and then sell it to you, nor does he receive a commission for selling you the loan at this rate. You might say that the par rate is loan equilibrium. The table below shows an example of the types of rates a bank might publish to their subscribing mortgage companies every day.\n**EXAMPLE RATE SHEET ON A 30-YEAR LOAN**\n**6.5**\n**6.75**\n**7.0**\n**7.25**\n**7.5**\n15-day lock\n.50\n.25\n0.00\n(.5)\n(1.5)\n30-day lock\n.75\n.50\n.25\n0.00\n(.25)\n45-day lock\n1.50\n.75\n.50\n.25\n0.00\n60-day lock\n2.50\n1.00\n.75\n.50\n.25\nIn the above example, the par value for a 15-day lock is 7.0 percent. The numbers in parentheses are the points returned to the loan proceeds as additional funds to offset the costs of the loan (or as a commission for loan officer). Why would anyone knowingly pay this higher rate? To get a no-cost loan, which we will go over later in this article.\nFor example, if you wanted a $150,000.00 loan, but didn't have enough to cover the loan costs, you could bump up your interest rate to 7.5 percent, giving you: $150,000.00 x 1.5%\/100 = $2,250.00.\nThis money will be credited to the loan proceeds at closing. What does this mean? It means that if your closing costs are $2,250.00, you won't have to lay out a dime to do the loan. Keep in mind, though, that if you are purchasing a home, you can't just up the interest rate to get your down payment. You must have enough money for the down payment.\nAnd if you didn't know that the rate you were getting was higher than the par rate (meaning you paid full loan costs)? The loan officer gets that $2,250.00. Do some loan officers conveniently forget to tell you about this little loan surplus? Unfortunately, yes; it is one of the most profitable methods used by loan officers.\nNo-Cost Loans\n-------------\nYou've heard of those no-cost refinance loans? Forget it. There is no such thing. A broker must make money on every loan. Many well-intentioned loan officers honestly believe they are giving you a loan for free, but this simply is not the case.\nIn the example above, we showed you how you could get a loan at an interest rate above the par rate and get points on the back. The points on the back translate to extra funds available to pay the cost of the loan plus pay the loan officer a commission. So what's wrong with this? Nothing, but you are financing the \"free cost\" of the loan over the term of the loan (usually 30 years), which can double or triple the closing costs (by way of additional interest) as compared to pay the closing costs in cash.\nHow Do You Know if the Loan Officer is Increasing the Interest Rate?\n--------------------------------------------------------------------\nIt bears repeating that it is the loan officer who picks the interest rate he is going to sell you and, consequently, the commissions he will earn on the loan. If he is competing with another loan company to get your loan, he may not be greedy and not jack up the rate. But if you don't shop around, don't trust him to be honest. Some loan officers are completely up-front with you, but some aren't. Always shop around, especially if you have \"A\" credit. Some loan officers will charge you less if they know your loan will be a piece of cake to put through the system.\nTake extra caution if you have less than stellar credit and must get a non-conforming loan, as these are typically the biggest target of shady loan officers. Desperate people have been known to have swallowed higher interest rates and 5 points in fees. This definitely is gouging. END

TITLE: HIdden Costs That Increase Your Home Purchase or Refinance CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Understanding What is in a Truth in Lending Statement CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nOne document that is very important when it comes to a mortgage loan, is a Truth in Lending statement.  A Truth in Lending disclosure statement is designed to help borrowers understand their borrowing costs in their entirety. Federal law requires that lenders provide a Truth in Lending (TIL) document to all loan applicants within three business days of receiving a loan application, disclosing all costs associated with making and closing the loan.\nThe Real Estate Settlement Procedures Act requires lenders to give you an information booklet, **Settlement Costs and You**, written by the U.S. Department of Housing and Urban Development, which discusses how to negotiate a sales contract, how to work with various professionals (attorneys, real estate agents, lenders), and your rights and responsibilities as a home buyer.\nWhat Information is Found in a Truth in Lending Statement?\n----------------------------------------------------------\nA truth in lending (TIL) statement contains information regarding the annual percentage rate, the finance charge, the amount financed, and the total payments required. Your lender is required to provide you with a \"good faith estimate of settlement costs,\" or TIL, within three days of the time you apply for the mortgage. This estimate should give you a good idea of how much cash you will need at closing to cover pro-rated taxes, first month's interest, and other settlement costs.\nThe TIL statement may also contain information on security interest, late charges, prepayment provisions, and whether the mortgage is assumable. If you have an adjustable rate loan, it may outline the limits on the adjustments (annual and lifetime caps) and give an example of what your next year's payment might be, depending on interest rates.\nWhat a TIL Statement is Not\n---------------------------\nYou should note a couple of things about this document. It is the most misunderstood of all the paperwork and generates the most panic calls to the loan officer.\n1. **The APR listed on the paperwork is not the rate you applied for.**  The APR calculates the interest rate in some complicated formula which takes into account your closing costs and fees, and is generally much higher than the agreed upon interest. Ignore this number. The actual loan interest rate should also be listed on the TIL, clearly marked. Most people don't get this far because the APR is the first number they see.\n2. **This TIL doesn't mean a thing.**   It is not an agreement between you and the broker. The bank can change the interest rate and terms at any time. The TIL just indicates the initial estimate by the loan officer. If you want to guarantee your interest rate, lock your loan.\nBuying a home is a huge decision. If you have any questions about your Truth in Lending disclosure statement, be sure to ask your lender for clarification on any items you do not understand. END

TITLE: Understanding What is in a Truth in Lending Statement CONTENT: | | | | \n: . END

TITLE: Private Mortgage Insurance and Points Increase Home Price CONTENT: The Additional Cost of PMI and Mortgage Points to Home Buying\n-------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nAccording to a recent study, buying a home is the number one most stressful experience in life. Can you believe buying a house beats out divorce, getting fired, or filing for bankruptcy? The U.S. Census calculated that the average person in the United States can expect to move 11.7 times in their lifetime. You would think with all of that moving we would get used to it — guess not.\nProbably the most stressful part about buying a house is the lack of understanding when it comes to all the costs that add up in the mortgage loan — over and above the actual cost of the home. After you finally come to an agreement on the price with the seller, you think that is it but guess again, there are all kinds of different expenses that will come into play. The more you know about these fees, the less stress you will feel during this whole transaction. So, let's go over some of these costs and give you the much needed information regarding PMI and mortgage points. \nWhat is Private Mortgage Insurance or PMI?\n------------------------------------------\nPrivate mortgage insurance, PMI, is designed to protect the mortgage company should you default on your loan. When you apply for a mortgage, the lender wants to make sure your home will have enough equity to pay off the loan balance should you default and go into foreclosure. Private mortgage insurance is an actual insurance policy issued by an insurance company that benefits the lender. If a home goes into foreclosure and the lender is not able to recoup the outstanding balance by selling the home, the insurance company that issued the PMI will pay the lender the difference.\nPMI is called \"private\" because it is only offered to private companies and not government agencies such as FHA or VA mortgage programs. Government backed loans have their own version of PMI.\nTo determine whether or not you will be required to have PMI when you buy a new home, the lender looks at the amount of your down payment compared to the sales price to determine your loan to value (LTV) ratio. So if you purchase a home for $200,000 and put $20,000 down, your loan to value ratio is 90 percent. Typically, if your loan to value ratio is more than 80 percent, you will be required to pay PMI. You may also be required to carry PMI if you have poor credit, even if your LTV is 70, 60 or 50 percent.\nNow, once you have reached a loan balance of 80 percent, don't think the PMI is going to magically disappear. You have to actually request a cancellation in writing and you have to be in good standing with your payment history. In addition, you may also have to pay for an appraisal to substantiate the current value of the home and submit proof you do not have any liens on the house.\nThe good news is if you have reached 78 percent LTV and your payments are up to date, your lender must automatically cancel the PMI.\nMortgage Points — Buying Down a Lower Interest Rate\n---------------------------------------------------\nHere is another monkey wrench that gets thrown into the entire home buying process - mortgage points. You will hear real estate agents and loan officers toss around terms like \"discount points\" and \"origination points\" as a matter of fact when you have no idea what in the world they are talking about. Before you venture down the road of home ownership, make sure you have a clear understanding what these words mean and what they will mean to you financially. Discount points and origination points are both equal in value - one point equates to one percent of the loan amount.\n### Discount Points\nDiscount points are a way of prepaying the interest on your loan. As the borrower, you have the option of paying these additional points to lower your monthly payment. If you plan to stay in this house for a number of years, buying these points is a great way to lower your monthly payment. Word to the wise, it is important to calculate when you will break even and begin to recoup the cost of this upfront cost. You might also want to consider if maybe the money would be better used as a larger down payment to possibly eliminate PMI payments.\n### Origination Points\nOrigination points might also be known as origination fees and are used to pay the administrative costs for acquiring a loan. The number of points assessed depends on your credit score and they usually are around one point or one percent, depending on the lender. Discount points are tax-deductible because they cover the interest on the loan. Origination points are only tax-deductible if they are used to obtain the mortgage and not to cover other closing costs.\nThe bottom line is that there is more to consider when getting a mortgage than just the down payment. The first hurdle to clear is getting a loan with a great interest rate but once you get over that, there are still plenty of other mortgage costs to consider. It is imperative you understand all the possible costs that could be thrown at you during the closing process of a loan. And, you need to make sure you have funds available to cover any of these unexpected costs. Make sure you are talking to your loan officer and getting as much information as you can before you sign on the line. This little bit of extra work on your part will pay off in the long run by saving you money in interest and fees when you buy a house. END

TITLE: How to Apply For a Mortgage Loan with Bad Credit CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 10, 2017_\nOne of the top reasons people turn to this website is to find credit repair information. The number one reason people want to fix their credit is to buy a home. But how \"fixed\" or \"repaired\" must one's credit be to apply for a mortgage?  In a competitive housing marketing, waiting until your credit is squeaky clean could mean losing the house of your dreams. You can apply for a loan cost even if you pay more for a loan due to bad credit.\nThe logic behind encouraging people with bad credit to hold off from applying for a mortgage is that a person with bad credit could find it more difficult to get an application approved due to having a low credit score. Subprime customers may also find they're charged a higher rate of interest, which can make repayments higher and therefore less affordable.\nWhile these seem like logical arguments on the surface, there is a deeper reasoning beneath that could indicate several good reasons why people with bad credit should consider applying for a mortgage sooner rather than later.\nApply for a Home Loan\n---------------------\n**You Don't Know Until You Apply** \nIt's human nature to fear the unknown. Many people think their credit is way worse than it actually is. Why not apply for a loan in advance so you know how you rate?\n**Don't get Stuck on the Interest Rate** \nDo the actual numbers, rather than reject a potentially high sounding interest rate. Can you afford the payment? Have you found a home you like that fits the loan amount you qualify for at that payment? Then don't worry about the interest rate presented. You can continue to work on your credit and refinance at a later date.\n**Buy at a Low Price and Build Equity** \nRight now, the real estate market is low. While all real estate markets go through down times, they also have periods of growth too. These cycles have been happening for decades. While I wouldn't begin to be crazy enough to guarantee you that real estate prices will be going up, historically, real estate prices have steadily increased through the entire history of the US. Like the stock market, you just have to buy and sell at the right time.\nBuying a home sooner and applying for your mortgage even with bad credit could potentially save you tens of thousands of dollars as the real estate market begins to recover and homes become more expensive.\n**It's a Lifestyle Choice** \nOwning a home isn't always the best financial choice. The average American homeowner never actually pays off their home, but either refinances or buys a new one numerous times over the years. If you were renting during the last crisis, your investments could have been somewhat insulated from the crash.\nHowever, if you're tired of noisy neighbors in an apartment complex and love doing home improvements, owning a home can be the way to go. While renting a house is just fine, sometimes it just doesn't feel like home unless it's yours.\nRebuild Your Credit\n-------------------\nOnce you have been approved for your bad credit mortgage, you have several opportunities to work on increasing your credit score. Every repayment you make on time is reported as responsible financial behavior, so this action alone can help to improve your score.\nMortgages are a type of an installment loan, meaning it is loan with fixed repayment time period. An other example of an installment loan would be an auto loan. A \"Paid as Agreed\" mortgage loan is given the most weight by Fair Isaac in calculating your FICO score.\nRe-Negotiate Your Loan\n----------------------\nOnce you've managed to improve your credit score a little with your regular mortgage repayments, you should find that your bank will suddenly be more willing to negotiate with you for a reduction in your interest charges.\nAs your credit steadily improves, you'll be able to negotiate for even further rate reductions, which should in turn reduce your repayment amounts and make your budget even easier to manage.\nBuild Equity\n------------\nOnce you're in your own home, you have the opportunity to begin building equity. Your equity is the amount between the value of your home and the balance outstanding on your mortgage. There are two primary ways to build equity; increase the value of your home or decrease the balance of your loan.\n**Paying Extra Principal** \nNo matter what your minimum repayment is, try to find even a couple of dollars each month to round your payment up to the nearest $10. For example, if your minimum repayment is $813 per month, round this figure up to $820 and make sure to pay this little bit extra whenever you can. If you do pay extra over the set mortgage payment, make sure your bank knows the extra amount goes towards principal, not interest.\n**Refinance at a Later Date** \nAs your level of equity increases, you might find your bank is willing to help you consolidate some of your other outstanding debts into your mortgage. This can help you to pay off any personal loans, student loans, store cards or credit cards that you have, which can also have a follow-on effect of helping to improve your credit score even further. END

TITLE: Reason Why Banks Sell Mortgage Loans CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nA notice arrives from your mortgage company advising you they are selling your loan to another company. Why did this happen?\nTypes of Lenders\n----------------\nFirst we need to distinguish between the two types of lenders: Mortgage Banks and Depository Institutions.\n* **Mortgage banks** are state-chartered temporary lenders who must sell the loans they originate because they do not have the long-term funding needed to hold them permanently. While mortgage banks always sell the mortgages they originate, they may retain the servicing under contract with the buyer.\n* **Depository institutions** are commercial banks, savings and loan associations and credit unions. They are chartered by both the Federal and State governments. They have the capacity to hold mortgages permanently in their portfolios.\nSelling Mortgages - Why Does This Happen?\n-----------------------------------------\nSo, why are you getting this notice that your loan has been sold to another institution?\n1. They need to keep a large enough pool of money on hand to make loans to other people. For example: If they lent out 50 million dollars over a period of 10 years they would need to have started out with a half a million dollars of cash. How will they keep on lending? Most mortgages are for 30 years, effectively tying up that money for this amount of time.\n2. They make more money this way. Mortgage bankers make a commission when they sell your loan to another company. If a banker makes a point on a package of loans worth a million dollars, he makes $10,000 dollars (1 percent of $1,000,000) in immediate profit by selling them. The banker then has freed up one million dollars which he can re-loan to other customers. If he writes $1,000,000 in new loans this month, he (or she) can make another $10,000 dollars in points by selling those next month.\nSo, if $1,000,000 worth of loans are sold each month, the banker would net $120,000 for the year on those points alone. Compare this to holding onto the loans. If he keeps that same $1,000,000 in loans and earned interest at say 8 percent, he would earn $80,000 in a year on that same million. It becomes clear that selling loans is more profitable.\n**Selling off the loans every month: 12 x ($1,000,000 x .01) = $120,000**\n**Keeping the loans and collecting the interest paid: $1,000,000 x .08 = $80,000**\nWho is Buying and Selling These Mortgages?\n------------------------------------------\nThese mortgage loans are sold on the secondary market, which mainly consists of two organizations, Fannie Mae and Freddie Mac. The secondary market is the place where mortgages are bought and sold by various investors. Secondary market investors include Fannie Mae, Freddie, various pension funds, insurance companies, securities dealers, and other financial institutions. All of the loans sold to Fannie Mae and Freddie Mac must meet certain guidelines for credit worthiness and repayment likelihoods.\nThe secondary mortgage market exists as a source of money for banks to lend out to home buyers in every state. This is done in two ways:\n* Pay cash for mortgages that purchased from lenders and hold those mortgages in Fannie Mae's investment portfolio. The lenders, in turn can use that money to make more mortgages for more home buyers.\n* Second the secondary market issues what are known as Mortgage-Backed Securities (MBS) in exchange for pools of mortgages from lenders. These MBS provide the lenders with a more liquid asset to hold or sell. MBS are highly liquid investments and are traded on Wall Street through securities dealers. END

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TITLE: Understanding a Uniform Settlement Statement CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nA uniform settlement statement, or HUD-1 form, unlike the truth in lending statement, is the document to which you want to pay close attention. This document is intended to accurately reflect your true interest rate and costs and is the final mortgage settlement statement. If a loan officer neglects to tell you a few things (like the fact that you are not getting a par interest rate), it will show up in this statement.\nWhat is a HUD-1 Form?\n---------------------\nThe HUD-1 settlement statement is a standard government real estate form used to itemize all charges imposed upon a borrower and seller for a real estate transaction. \nWhen is a HUD-1 Form Required?\n------------------------------\nHUD stands for the Department of Housing and Urban Development. Then Congress enacted the Real Estate Settlement Procedures Act (RESPA), it authorized HUD to prepare and implement a uniform settlement statement. Recently, this form was updated with the intent of assisting potential homebuyers in fully understanding their costs. The HUD-1 must be used in any transaction where a federally regulated mortgage is involved.\nIf you applied for a mortgage on or before October 3, 2015, you should have received a HUD-1 statement. After October 2015, borrowers began receiving a form called the Closing Disclosure instead of a HUD-1 for most kinds of mortgage loans as a response to TILA RESPA Integrated Disclosures or simply TRID, which overhauled the way mortgages are now processed and closed.\nWhere Are HUD-1 Used Today?\n---------------------------\nThe HUD-1 settlement statement is still used today but only for reverse mortgages.\nWhen is a HUD-1 Provided to the Borrower?\n-----------------------------------------\nPrior to October 2015, RESPA stated that a borrower should be given a copy of the HUD-1 at least one day prior to closing. In actuality, changes to the HUD-1 could be done just hours before closing. Most buyers review this document with their real estate agent to make sure there are not any errors. When it comes to both the HUD-1 and the Closing Disclosure, don't assume the figures are correct. Mistakes happen and errors can be found at the last minute. Make sure all information and figures are accurate prior to signing the closing documents. END

TITLE: Find Out if You Have Tier One Credit CONTENT: What is Tier One Credit?\n------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 10, 2017_\nIf you are in the process of buying a house, you may be hearing about Tier one credit or \"A\" type credit. This is one of the highest rankings issued by the nation's credit rating services. In general, it is applied to a consumer with a FICO score of 700 to 740 and above. A score of 660 to 699 would be considered average, or Tier 2 credit.\nAn excellent credit score can open doors for a consumer as well as save them money on interest and fees. When a consumer has a  Tier 1 rating, lenders can offer them low-interest loans with favorable terms. Ever see those car commercials that speak about \"well-qualified buyers?\" Chances are they are speaking about a Tier one scorer. Credit tiers are commonly used when negotiating car lease or loan terms. Excellent credit is seen as a positive indicator of the ability to pay obligations on time and live within one's means.\nCriteria For a Tier One Credit Rating\n-------------------------------------\nTier one credit has different meanings across various credit rating services. Fair Isaac considers its highest tier a credit score of 700 or above. Mortgage lender Freddie Mac rates 760 or above an A+. SmartMoney.com and PBS's \"Frontline\" show reports 760 or above as excellent.  The bottom of Tier one seems to change with the times so check the most recent minimum scores with your lending institution.\nBenefits to Tier One Credit\n---------------------------\nHaving high credit brings many benefits, not the least of which are discounts and savings on loans. Tier one credit holders have almost limitless access to credit, so there's little that they can't obtain. However, with increased credit comes increased risk. Excellent credit holders know that a key to keeping a good credit score is on-time payment of debts and a good debt-to-income ratio. As long as financial commitments are met, there are many opportunities to use the increased mobility to grow personal fortunes and invest for the future.\nWhat Goes Into Your Credit Rating\n---------------------------------\nThere are four types of credit items on your report: Mortgage loan, auto loans, credit card and other non-secured loans, and collections\/judgments. Here is an explanation of each.\n1. Mortgage Loan.  A mortgage loan is considered secured loan, that is, the loan is secured through an asset (in this case, a piece of real estate). When you are applying for a mortgage, the lender needs to be sure that paying your mortgage payment is important to you. You should not have any late payments in the last two years.\n2. Auto Loans.  An auto loan is another type of secured loan. Lenders consider your payment history on auto loans almost as important as mortgages. You should not have any late payments in the last two years.\n3. Credit Cards or Unsecured Debt.  When it comes to these loans, lenders are much more forgiving. If you were late on making one of these payments, more than 30 days late but less than 60 days late, you should still be fine in the eyes of a lender. If you have a lot of credit lines showing up on your credit report, and you have two 30-day late payments, you should still be all right.\n4. Judgments and Collections.  Judgments are usually an automatic loan turn down unless you have a really good explanation and proof to back it up. Collections are generally regarded the same way, unless it is a medical collection. Mortgage companies are extremely sympathetic about medical collections. They know that the medical profession often turns over unpaid accounts to a collection agency immediately, and often without notifying you.\nIf you have a bankruptcy. You may be considered to have \"A\" credit, even with a bankruptcy if:\n* You have a good explanation for why you filed bankruptcy.\n* You have re-established at least three new lines of credit since the dismissal of bankruptcy.\n* Your bankruptcy was at least three and preferably four years ago.\n* You have perfect credit since the discharge of bankruptcy. END

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TITLE: Differences Between a Mortgage Broker and a Bank CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 10, 2017_\nThere was a time when most homebuyers obtained their mortgage loans through their local bank or their credit union. Today, there are a number of home-financing options available which make it hard for a first-time buyer to know which route to take. Knowing which lender is the right fit for you and your financial situation is imperative to be approved and getting a home loan. Which is right for you? Let's take a look at the difference between using a mortgage broker or using a bank (also called a direct lender) to secure your mortgage loan.\nWhat is a Mortgage Broker?\n--------------------------\nA mortgage broker is a type of middleman who represents many lenders and all of their loan products. The broker's goal is to match the loan product that best meets your needs at the best possible price. Once your loan is approved, you will usually deal directly with the loan originator or their mortgage service provider.\nWhat is a Bank or Direct Lender?\n--------------------------------\nBanks, mortgage banks, and credit unions are all considered direct lenders. That means, employees of that institution review your application and make the decision on whether or not they are going to lend you the money to buy a house. Typically, the bank will eventually sell your loan on the secondary market after a few month of closing.\nBenefits of Using a Bank or Direct Lender\n-----------------------------------------\nNo matter what people will tell you, your best deals usually found using a direct lender. This is because there aren't a lot of add-on fees and middlemen who touch your loan and get paid for it. Plus, these guys do a volume business and therefore can cut corners on costs. The employees generally don't get a commission, just an hourly rate, so they aren't looking for ways to charge you extra. They also may lend out their own money, making money through the servicing of a loan, not in charging origination fees.\nOne of the reasons that a bank is cheaper: Banks don't give out loans to anyone without 'A' credit, job stability, long-time residence and good income. If you fit their criteria, giving you a loan is practically automatic and follows the same procedure every single time, without extra work or effort on the part of the bank.\nAs we stated, the banks make money by processing a cookie cutter type of loan. If you don't fit the 'A' profile in job, credit, and income, forget it: why should the loan officer do any extra work if and not be paid for it? Your loan gets pitched in the reject pile automatically. It's not that you're not a good loan risk, but look at it from the loan officer's point of view.\nBenefits of Using a Mortgage Broker\n-----------------------------------\nIn the mortgage broker world, you usually pay higher fees\/interest rate for getting your loan through. The sharp loan officer can take a look at your application and know in advance how much effort it will be to get your loan through the system. Not every broker handles difficult loans, most prefer handling 'A' clients. Again, it's easier, like the guys working in the banks: they'd rather make a lower commission for less hassle and go for volume.\nSo why would an 'A' client go to a broker? The reasons are numerous: clients may not have tried the bank, the broker actually has a better deal, either in interest or fees, or their realtor recommends them. Usually the broker, if they're good and have been in the business a while, has a regular clientele consisting of real estate agents or referrals by past satisfied customers. Buying a house is very stressful; a competent, hand-holding professional may be a service worth paying for. Keep this is mind, it's one of the things you should consider for when shopping for a loan.\nRisks of Using a Direct Lender\n------------------------------\nThe only risk that comes to mind when dealing with a direct lender is the limited choice of products. Direct lenders only offer their own programs so if you don't fit into their criteria, you won't get a loan from them.\nRisks of Using a Mortgage Broker\n--------------------------------\nSome mortgage brokers attempt to increase their profits by writing in hidden costs into your loan. The best tip we can give you to avoid getting taken to the cleaners on closing costs is to know the loan process and ask a lot of questions about the fees and charges.\nWhich Lender is Right For You?\n------------------------------\nHere is a simple breakdown into what kind of borrower are you and what will be the best fit for your lending needs.\n* Excellent credit, access to financial documents, long employment history - Bank or Mortgage Broker\n* Self-employed, don't want to share data about income or assets - Mortgage Broker\n* ARM shopper, relationship customer with many accounts at 1 institution - Bank\nTips for Working with Lenders\n-----------------------------\nIf you are still trying to figure out which lender fits your needs, here are some tips for finding and working with a lender.\n1. Get recommendations by asking friends and neighbors for suggestion, especially if they've recently obtained a loan.\n2. Check credentials of the mortgage bankers. These are regulated by either your state's department of banking or division of real estate. Check with the agency to see if a lender is in good professional standing.\n3. Do your homework on the mortgage loan processes and learn about typical mortgages and ask questions when something does not look right. END

TITLE: Yes You Can Buy a Home with Bad Credit CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nFor millions of families, the American dream of owning a home has been hijacked by the American nightmare — bad credit. What’s worse is that many people in this situation see only see two options — 1) accept their fate and give up on the dream completely, or 2) use their subprime credit score, _as is_, to take out a high-interest mortgage that ends up costing more than they can practically afford.\nFortunately, there is a third option for homebuyers with bad credit — a combination of initiative and patience to improve your credit _before_ buying a home.\nFind Out Your Credit Score\n--------------------------\nYou may already have some idea of where your credit score stands, but keep in mind that it fluctuates constantly. As you may already know, there are a number of different credit scores out there, from the official FICO score to the Vantage scores used by the three major credit bureaus.\nIt’s a good idea to track each of these.\nYou’ll have to pay for your FICO score at MyFICO.com. But the process of cleaning up your credit could be a lengthy one and you don’t want to have to pay to see your FICO score every time you want to check in on your progress. For that, you can rely on your Vantage scores, all of which can be accessed for free.\n* Experian VantageScore through Credit.com and CreditSesame.com\n* Equifax VantageScore through Quizzle.com\n* TransUnion VantageScore through CreditKarma.com\nWhile your Vantage scores will not be the same as your FICO score, they should at least reflect improvements, giving you some indication that your efforts are paying off.\nIn other words, your Vantage scores are ones you can easily track for free on a monthly basis, while you may just want to check your FICO score every 3 to 6 months.\nObtain All Three Credit Reports\n-------------------------------\nAgain, you may have some idea of what’s on your credit reports, but it’s time to go through them with a fine-tooth comb.\nIf it’s been more than a year since you’ve seen them, you are entitled to a free copy from each of the major credit bureaus — Experian, Equifax, and TransUnion. And yes, you need all three, as there could be things on one credit report that aren’t on another.\nSpend Six Months Working to Improve Your Credit Score\n-----------------------------------------------------\nOnce you have your credit reports, mark erroneous or negative items. Then dispute these listings with the appropriate credit bureau.\nThis can be an especially effective tactic for old credit card debt.\nThe older it is, the more times your old credit card debt has probably been sold to a new debt collector. But when the debt changes hands, documentation supporting your responsibility for the debt often doesn’t get included in the transfer.\nThis means that, through the debt validation process, collectors may not be able to prove you owe the debt, in which case it must be removed from your credit reports.\nBeyond cleaning up negative listings already on your credit reports, be sure to:\n* Pay all your bills on time, _every_ time.\n* Rework your budget to pay down any existing debt.\n* Only charge as much to your credit cards as you can afford to pay off within 30 days.\n* Avoid using more than 30 percent of your available credit.\n* Avoid applying for additional lines of credit.\nOf course, if you don’t already have active credit cards, it may be in your best interest to apply for a _secured_ credit card. Just be sure of two things:\n1. It is one that reports to the credit bureaus, and\n2. You only charge as much to the card as you can pay off by the end of every month.\nMeet With Lenders and Shop Around for the Best Loan\n---------------------------------------------------\nWhile you may need up to a year to see a significant improvement in your credit score, meeting with lenders after 6 months of credit repair will inform your efforts going forward.\nYou’ll not only find out what kind of loan you qualify for, but lenders should be able to advise on the most effective means of improving your credit score faster.\nJust how good does your credit score need to be? At the very least, work to get your score above 660, though 700 and above would be more ideal.\nThough this process may seem a lengthy, it’s nothing compared to the life of a home loan. Taking the time and making the effort to do it right is something you’ll thank yourself for every time you make a mortgage payment you can afford. END

TITLE: Foreclosure Alternatives and How to Avoid Foreclosure CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nA press release issued by RealtyTrac in January of 2017 stated there were 933,045 properties with foreclosure filings in 2016, which was down 14 percent from 2015 to a new 10-year low. Since its peak of 2.9 million properties with foreclosure filings in 2010, it seems there has been a slow downward trend. Counter to the national trend, 12 states posted an increase to overall foreclosure activity in 2016 compared to 2015, including Deleware (up 45 percent); Rhode Island (up 29 percent); Massachusetts (up 21 percent); Connecticut (up 21 percent); and Hawaii (up 20 percent). Foreclosure is financially and psychologically devastating to families and affects the stability of their lives but there are ways you can avoid going through a foreclosure.\nPossible Reasons for Foreclosure\n--------------------------------\nMany homeowners who cannot afford their house payments simply walk away because they don't realize that banks and mortgage companies may be willing to work with them in an effort to avoid foreclosure. Foreclosures are costly and time-consuming for financial institutions, and depending on the state in which you live, the process can take months. Besides valuable time, foreclosure costs a considerable amount of money, and lenders would much rather keep the lines of communication open and work with those who can't pay their house payments to find a mutually beneficial solution. They may not be aware of the alternatives, but there are some alternatives available for those who qualify.\nAlternatives to Foreclosure\n---------------------------\n**FORBEARANCE PLAN:**  Forbearance means you are allowed to delay or reduce mortgage payments on a temporary basis with the agreement that another option will be used at the end of that time to bring your account to current status. Most lenders have a forbearance program available, but you need to be diligent and immediately contact the lender to report a temporary loss, hardship and\/or reduction in income and to request a forbearance agreement. Your lender, if in agreement, will then temporarily cease legal actions, or not proceed initially, whichever the case may be.\nLenders may agree to combine your forbearance with a reinstatement or a repayment plan if you can provide adequate assurance that you can raise the needed funds to bring your account current by a specified date. Be sure you are provided this agreement in writing. Forbearance programs are best for people who have experienced sudden unexpected income loss or debt, and simply need some extra time to readjust their spending and recover financially.\n**SHORT SALE:**  Those who can't afford to pay their house payments and know they can't afford to keep their home can request a short sale. A short sale is when a lender accepts a discount or shortage on a mortgage balance to avoid a possible foreclosure auction or bankruptcy. Depending on your particular situation, this could be one of the best alternatives to foreclosure. Mortgage companies and banks that offer a short sale as a option are sometimes willing to take less than the amount owed on the home.\nDepending on circumstances, lenders are often willing to completely forgive the homeowner of the debt. In many cases, the homeowner and lender have certain provisions that must be adhered to when transacting a short sale. For instance, many lenders require the home to be on the market for a minimum of 90 days, have established maximum commission levels for any real estate agents involved, and may require the broker be a member of the Multiple Listing Service (MLS). A hardship letter explaining the reasons for financial problems as well as a list of debts and income are required, as well as any other bank-specific paperwork and forms. If you can't pay your house payments and can prove financial hardship, a short sale could be one of the most viable alternatives to your financial problems.\n**DEED IN LIEU OF FORECLOSURE:**  As a last resort, you may be able to voluntarily \"give back\" your property to the lender. This won't save your house, but may increase your chances of qualifying for a mortgage loan in the future. A deed in lieu of foreclosure may be a viable option for individuals who can verify they are incapable of paying their mortgage payments due to financial hardship. This option may save lenders the time and expense caused by homeowners who abandon their homes, and it can be one of the best long-term solutions for all concerned.\nBefore most lenders will offer a deed in lieu of foreclosure, a typical requirement is that the house must be listed for sale at fair market value. The homeowner needs to demonstrate that they are trying to find a solution, therefore lending credibility to the homeowner through the action of actively trying to sell the home. If the market is stagnant and the home doesn't sell, and you qualify for a deed in lieu of foreclosure, the lender may allow you to sign off on the house and walk away without owing on the mortgage.\nThe deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principle advantage to the borrower is that it immediately releases him\/her from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms that he or she would in a formal foreclosure.\nThe alternatives above are the three most common situations utilized to avoid foreclosure. Contingent on the type of mortgage loan you have, there may be others. Specifically: if you have a Federal Housing Insured (FHA) loan, you will want to contact HUD\/FHA for guidance. The Department of Housing and Urban Development (HUD) has been instrumental in establishing guidelines to assist homeowners experiencing financial hardships. The goal is to offer financial alternatives to foreclosure, while allowing lenders to make determinations based on certain risk criteria.\nAdditionally, here is a link to a website which provides guidance applicable to homeowners with FHA Insured loans.\nHow Will These Alternatives Affect My Credit?\n---------------------------------------------\nWe went right to the myfico.com \"Credit Education Center\" to ask that question. Here is the answer verbatim:\n_\"The common alternatives to foreclosure, such as short sales, and deeds-in-lieu of foreclosure are all \"not paid as agreed\" accounts, and considered the same by your FICO score. This is not to say that these may not be better options for you from a financial perspective, just that they will be considered no better or worse for your FICO score.\"_\nIf you are considering bankruptcy as an alternative to foreclosure, that may have a greater impact to your FICO score. While a foreclosure is a single account that you default on, declaring bankruptcy has the opportunity to affect multiple accounts and therefore has potential to have a greater negative impact on your FICO score. END

TITLE: Foreclosure Alternatives and How to Avoid Foreclosure CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Taxes on a Mortgage Settlement Payment CONTENT: Will You Owe Income Tax on a Mortgage Settlement Payment?\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nIf you are one of the millions of borrowers affected by illegal mortgage loan servicing from January 1, 2009 to December 31, 2010, you deserve compensation for your loss and suffering. To that end, eligible borrowers will receive a cash settlement. Unfortunately, the size of the payments pale in comparison to the scope of the inflicted damage. And it doesn't help matters that _**these payments are considered income for which borrowers are, indeed, expected to pay income tax**_.\nWhat is the Independent Foreclosure Review (IFR) Settlement?\n------------------------------------------------------------\nThe IFR settlement ceases the review process of individual mortgage loan files that was instigated upon discovery of deficient practices in mortgage loan servicing and foreclosure processing. Settling and ceasing the review process is intended as a means of providing financial compensation more quickly to eligible borrowers.\nWho is Eligible For An IFR Settlement Payment?\n----------------------------------------------\nThose eligible for an IFR settlement payment include 4.2 million borrowers whose primary residences were in foreclosure between January 1, 2009, and December 31, 2010.\nWhat Size Payment Can You Expect to Receive in An IFR Settlement?\n-----------------------------------------------------------------\nThe amount of each eligible borrower's settlement payment will vary, but may be as high as $2,000, the size of which cannot be subject to borrower dispute.\nWill You Be Notified If There Are Taxes Owed on an IFR Settlement?\n------------------------------------------------------------------\nIf you receive a settlement payment of $600 or more, your loan servicer is required to file a form with the IRS, a copy of which you should receive in the first quarter of 2014. Though loan servicers are not required to file any such form for payments of less than $600, you are still required to pay taxes on the payment.\nWhich Loan Companies Are Participating in the IFR Payment Agreement?\n--------------------------------------------------------------------\nAccording to the Office of the Comptroller of the Currency, loan servicers participating in the IFR payment agreement include:\n* America's Servicing Company\n* Aurora Loan Services\n* BAC Home Loans Servicing\n* Bank of America\n* Beneficial\n* Chase\n* Citibank\n* CitiFinancial\n* CitiMortgage\n* Countrywide\n* GMAC Mortgage\n* HFC\n* HSBC\n* MetLife Bank\n* National City Mortgage\n* PNC Mortgage\n* Saxon Mortgage\n* Sovereign Bank\n* U.S. Bank\n* Wachovia Mortgage\n* Washington Mutual (WaMu)\n* Wells Fargo Bank, N.A.\n* Wilshire Credit Corporation\nIf You Receive an IFR Settlement Payment, Will Your Mortgage Loan File Still Receive a Third-Party Review?\n----------------------------------------------------------------------------------------------------------\nNo. The IFR settlement stops the review process for participating servicers. Therefore, there will be no determination of wrongdoing on individual loans.\nDoes That Mean You Cannot Take Any Other Legal Action Against Your Loan Company?\n--------------------------------------------------------------------------------\nNo. The IFR settlement in no way prevents you from taking other legal action against your loan servicer.\nWill The Foreclosure Process Cease?\n-----------------------------------\nNo. However, you may continue to pursue foreclosure alternatives with your servicer. If you are already pursuing other options, such as a loan modification, receiving IFR settlement money will in no way affect that process. In fact, in addition to the IFR settlement cash payments, participating loan servicers are required to provide $5.7 billion in foreclosure prevention, which may include loan modifications, short sale and forgiveness of the remaining balance of the loan after the short sale or foreclosure is completed. That said, there is no guarantee your loan will be one that qualifies for relief.\nWill Your Credit Improve If You Receive an IFR Settlement Payment?\n------------------------------------------------------------------\nNo. However, you can and should dispute any and all negative listings on your credit report. END

TITLE: Alternative to Foreclosure May Be a Short Sale CONTENT: ###### Written by: Kristy Welsh\n**Ingredients Needed**\n1. Homeowner with a mortgage balance that's higher than the current value of their home (a.k.a. \"underwater\")\n2. Case of financial hardship (loss of income, loss of renter, balloon payment looming, medical emergency, etc, etc)\n3. A sprinkling of sage advice (from a lawyer or tax professional)\n4. Large dollops of persistence and perseverance (from you and your realtor)\n5. Generous pinches of patience (from you, your realtor, and your potential buyer)\nClearly I've been watching too much TV this winter, because I'm tempted to mix the Food Channel with HGTV, and toss in Lost, to suggest a new reality show called Short Sale Stories.\nPicture it. Nice people. Faceless villains (the banks). Home threatened. Future uncertain. Hopefulness alternates with despair, week after week, until the final episode when the bank approves the short sale. Or, the bank forecloses.\nWhat is a Short Sale?\n---------------------\nA short sale is a viable option for homeowners who find themselves owing more on their mortgage than their house is now worth. The process is slow and aggravating and paperwork intensive, and the outcome is never certain until the deal closes, but the banks seem to be getting better at it. They have to. Many owners who bought at the height of the market are upside-down on their mortgages in today's economy. If they need to sell now, chances are it will be a short sale.\nA short sale is generally less hurtful to your credit than a foreclosure would be. Though the credit scoring model is a black box and no one can accurately predict the effect of any one item, according to the National Association of Realtors, a foreclosure can lower your credit score by 200 points or more, and remains public record (and on your credit history) for 7 years. A short sale, on the other hand, could lower your credit score by as little as 50 points if you are current with other payments. Your lender can report the short sale as Paid in full - Paid as Agreed, or Paid - Settled in Full for Amount Less than Owed, or Paid - Unrated. True, this less than perfect mark will also remain on your credit report for 7 years as well, but it's better than a foreclosure.\nHow to Pursue a Short Sale\n--------------------------\n* First talk to your lawyer or tax advisor so you understand what a short sale will mean to your financial future.\n* There are other choices on the menu you might consider:\n * Handing your house keys back to the bank (deed-in-lieu); or,\n * foreclosure which can offer anti-deficiency protection in some states such as Arizona.\n* If a short sale is the best answer in your particular situation, then talk to your bank and explain your hardship. They should send you paperwork to get things started.\n* Finally, find a good realtor to list your home for sale and to help you find a buyer who is patient enough to stick with you through the bank negotiations. It can take several months.\nFind a Knowledgable Realtor\n---------------------------\nYour realtor will be the point of contact between you, the bank, and potential buyers. You will want one who is patient, persistent, and knowledgeable about short sales. Choose wisely for the most palatable result.\nYou can read our article about the other side of the fence — **buying** a short sale property. END

TITLE: Alternative to Foreclosure May Be a Short Sale CONTENT: | | | | \n: . END

TITLE: Subprime Mortgage Crisis and HOPE Now Inititative CONTENT: Find Help Through the \"Hope Now\" Initiative\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nYou found the home of your dreams, perhaps a few years back, when the housing market was sizzling red-hot. Your realtor and mortgage broker or banker were eager to help and getting a loan was a snap. At that time, there were so many lenders willing to hand out money to home buyers — no need to verify their income in many cases — what a trusting bunch we were. How short sighted \"we\" were, those people who signed on for loans that they knew they could not afford over the long term. The dream home has since transformed into a nightmare, with unaffordable payments due to the adjustable rates \"we\" didn't really pay attention to or just ignored while signing on the dotted line. You can't sell it, because everyone else is trying to unload their nightmares as well, and you either need a miracle or will facing a short sale, foreclosure, and possible bankruptcy if you don't do something quick. What to do?\nHistory on the Housing Market Crash\n-----------------------------------\nThe crisis began in the United States with the bursting of the housing bubble and high default rates on \"subprime\" and other adjustable rate mortgages (ARMs). Subprime lending is a generally defined as the practice of making loans to borrowers who may not qualify for \"A-grade\" market interest rates because of problems with their credit history or the inability to prove that they have enough income to support the monthly payment on the loan for which they are applying. A long-term trend of rising housing prices and misleading loan incentives encouraged investors and homebuyers to take on new or additional mortgages, with many believing they would be able to sell quickly at a profit or refinance at more favorable terms later. However, once housing prices started to slide downward starting around 2006 in many parts of the country, refinancing became more difficult. Defaults and foreclosure activity increased dramatically as ARM interest rates reset higher. During 2007, nearly 1.3 million U.S. housing properties were subject to foreclosure activity according to a realtytrak.com report, up 79 percent versus 2006. \nHelp for Troubled Borrowers\n---------------------------\nWith so many people in our country who faced unmanageable mortgage payments due to their subprime mortgages resetting to higher rates, on December 6, 2007 President George W. Bush announced the \"Hope Now Alliance. This was a cooperative effort between the United States government, counselors, investors, and lenders to help homeowners who could not pay their mortgage due to escalating interest rates or other reasons. The most significant aspect of the initiative was an interest rate freeze that gave some borrowers the ability to cope financially with adjusting interest rates and the timee needed to work out a solution.\nThe most important thing you need to do if you are facing similart issues, is to acknowledge the problem as quickly as possible and start the process of seeking a solution immediately, before it is too late. The following steps and recommendations provides some useful guidance for troubled borrowers who may be able to take advantage of the \"Hope Now\" initiative and gain the necessary assistance to prevent foreclosure or bankruptcy.\n* Call the National Hotline established by the Hope Now Initiative immediately at 1-888-995-HOPE! The hotline is staffed 24\/7 with HUD-approved counselors affiliated with the non-profit Homeownership Preservation Foundation.\n* The counselor will gather information regarding the callers specific financial situation, in order to determine their eligibility to participate in the Hope Now initiative. (more on eligibility below). Be prepared to provide income verification and monthly expense information or you may have to make multiple calls.\n* Based on the information provided, the counselor will explain what options are available and make a recommended course of action for the individual seeking assistance. Typically, this involves having the borrower call their mortgage servicer to initiate a workout plan.\n* In some cases, the counselor may refer the individual to another counselor local to the borrower for in-person assistance. In other cases, the counselor will actually contact your mortgage servicer directly for you, providing you agree and provide written authorization for the counselor to act on your behalf.\n* The loan servicer\/lenders are more likely to negotiate and be flexible with market conditions as they are; the last thing they want is your property back. \n* Servicers then determine the borrowers eligibility for refinancing based on credit history, FICO score, current loan amount and loan-to-value ratio. Although the initiative does not preclude it, servicers try to help borrowers avoid prepayment penalties in a refinancing.\n* Some borrowers with ARM's who are current on their mortgage, but don't have the financial ability to stay current once their interest rate resets (and can't qualify for refinancing using traditional methods) may be eligible for an interest-rate freeze. This freeze does not necessarily apply to those who are having difficulty meeting their mortgage commitments due to job loss or medical reasons; however, loan servicers may still be willing to consider a workout plan for these circumstances, it is just not covered under the \"Hope Now\" initiative.\n* The initiative also has provisions to assist homeowners unable to meet payments regardless of interest rate reset issues. In these cases, counselors look to find the least painful loss mitigation strategy, such as a short sale (selling at a deficiency) or deed in lieu of foreclosure (giving the property back to the bank, essentially).\nEligibility\n-----------\nThe initiative applies ONLY to homeowners with purchase-money mortgages; NOT home equity loans. In other words, if you refinanced since your original home purchase, you are out of luck. Additionally, borrowers must have secured their financing during the \"height\" of the housing boom, defined by the initiative as between January 1, 2005, and July 31, 2007. Home owners are eligible for the initiative if they are current and expect to stay current after the rate resets, but are looking for a more appropriate loan; if they are current but face possible default due to the rate reset; or, if they are in default prior to the rate reset.\nIn Summary\n----------\nThe Hope Now initiative was not designed to simply bail out those who irresponsibly took out a mortgage they could not afford. According to President Bush, \"There are some responsible home owners who can avoid foreclosure with some assistance\". While clearly many of these problems may have been \"self-inflicted\" by people who were looking to make a fast dollar or given misleading information, the effect of the entire subprime fiasco on our economy is a problem that affects us all. Understanding what you can do to minimize the fallout while learning from your (or others) mistakes is certainly valuable information. If you feel you are in jeopardy of being able to meet your mortgage payment commitments, the most important thing is to be proactive, and start the process of seeking a solution as soon as possible; there is help out there!\nFor more information, visit www.hopenow.com END

TITLE: Subprime Mortgage Crisis and HOPE Now Inititative CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Signs You Could be a Victim of a Mortgage Relief Scam CONTENT: Don't Become a Victim of a Mortgage Relief Scam\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nThere are few things more stressful than the threat of losing your home. So it's no wonder so many people fall victim to mortgage relief scams. While the claims may sound too good to be true, those facing the alternative (monthly payments they cannot afford or, worst case, foreclosure) suspend disbelief.\nFederal and State officials filed lawsuits accusing dozens of companies of ripping off struggling homeowners by falsely promising help in avoiding foreclosures or lowering mortgage payments while collecting millions of dollars in illegal upfront fees. Don't fall victim to one of these companies!\nTips to Avoid Mortgage Relief Companies\n---------------------------------------\n* **Make guarantees.** Only your lender can offer a guarantee of any kind regarding your loan, be it a loan modification or stopping the process of foreclosure. Even a money-back guarantee should be avoided at all cost. You'll never see that money again.\n* **Ask for an upfront fee.** The Mortgage Assistance Relief Services (MARS) Rule makes it illegal for any mortgage relief company from asking you for money to be paid prior to services provided. In fact, they may only collect fees from you in the event that a mortgage relief offer is made from your lender, and only after agree to accept it.\n* **Require that you make payments via wire transfer, cash, or cashier's checks.** You can be sure they're up to no good.\n* **Claim to have a special relationship or affiliation with the lender or the government.**  Mortgage relief companies do not have special relationships with your lender, period.\n* **Claim to be lawyers or to have some affiliation with a law firm.**  While lawyers may offer mortgage relief services, verify that they are, indeed, members of the bar association via the National Organization of Bar Counsel.\n* **Make fantastic claims of success rates among clients.**  Common are success rate claims of 90 to 99 percent.\n* **Ask you to make your monthly mortgage payments directly to them.**  The only place to send your monthly mortgage payments is directly to your lender. No reputable company would ask to serve as a third-party collector of this money. It's safe to say your mortgage lender will never see any of those payments.\n* **Say they want to do a _forensic audit_.**  A forensic audit is a process of reviewing your mortgage papers to be sure your lender made no violations of the law. However, forensic audits almost never turn up such information and, in which case it in no way affects a lenders modification of your loan or foreclosure actions.\n* **Ask you to surrender the title of your home to them so they can rent to you.**  They may offer for you to buy back the home, but it's usually too expensive for you to do so. Or, they may raise the rent on you over time until it is too much for you to afford.\n* **Ask you to sign over the deed to your home so they can find a buyer for you.**  In this scenario, they rent out the home until the lender finally forecloses on the property.\n* **Ask you to sign papers so as to make your mortgage current.**  Buried in this paperwork is likely verbiage surrendering the title of your home.\nTalking to your lender is always a better alternative to a mortgage relief company. Your lender doesn't want you foreclosing either, so you may be surprised at what they may be able to work out. You may also find help through the Homeownership Preservation Foundation, a nonprofit that offers assistance with the loan modification and foreclosure prevention process.\nIf you feel you may have fallen victim to one of the above scams, call your local State Attorney General office immediately. They will assist you in any legal action you may have to take against this company. END

TITLE: Signs You Could be a Victim of a Mortgage Relief Scam CONTENT: | | | | \n: . END

TITLE: Locking the Interest Rate on a Mortgage Loan CONTENT: When is the Best Time to Lock a Mortgage Loan Interest Rate?\n------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nYou have been house hunting for months and you finally found the perfect house. Now comes the mortgage loan application and finding a good lending institution. But all the while, you have been watching the mortgage interest rates fluctuate up and down and you are wondering what will the rate be when your loan closes? What if it goes up a percent? That could cost you thousands of dollars in interest! What can you do?\nLoan Lock and Locking Your Interest Rate\n----------------------------------------\nA loan lock is securing a specified interest rate on a mortgage loan that is in the process of being approved. A loan lock establishes the interest rate that a borrower will pay as long as the loan closes before the end of the lock period. Lock periods typically last from 30 to 60 days, though in markets where the loan approval process is slow, the lock period can last as long as 90 days.\nThings to Look for When Locking Your Interest Rate\n--------------------------------------------------\nWhen deciding to lock a loan, there are 3 things to consider:\n1. Interest rate\n2. Points\n3. Length of the lock period\nSome borrowers can pay extra for an extended loan lock. The interest rate will be a bit higher or the points will reflect the loan lock fee. That's because the lender is taking on the risk that rates could go up while the transaction is processed, so the lender could end up losing money if the loan is funded at a lower-than-market interest rate. But locking the loan gives the borrower peace of mind and real estate experts recommend that borrowers lock their loans.\nAre You Committed to the Loan Once You Lock It?\n-----------------------------------------------\nLocking your interest rate down does not mean the borrower is married to that lender. If the rates do go down, the borrower is free to go elsewhere prior to the loan closing — but they won't tell you that up front! Chances are, if the borrower did try to pull out on the loan, the lender would more than likely meet the demanded interest rate. Think about it, why would they want to lose the business?\nAre There Any Disadvantages to a Loan Lock?\n-------------------------------------------\nThere is rarely a reason you would NOT want to lock in your loan. The main reason to lock your loan is to protect yourself against the volatility of the marketplace, and, it's a good idea to lock your rate once you are satisfied with the rate so there are no surprises in the end.\nHow Are Loan Lock Rates Calculated?\n-----------------------------------\nIt all depends on the lending institution. Let's say for example, one lender may have a 30-day rate lock which might cost the borrower one-half of a point; and a 60-day rate lock might cost one full point. These fees are not paid up front but are paid at closing. So, if the loan never closes because the borrower has changed their mind or gone elsewhere, the fees are never paid. If a borrower doesn't want to pay for the loan lock through points, the fee can be computed into the interest rate. END

TITLE: Underwriting Guidelines for Mortgage Loans CONTENT: Underwriting Guidelines for the Average Mortgage Loan\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nUnderstanding mortgage underwriting guidelines will help you understand your loan options when purchasing or refinancing a home. Now that you have found your dream house, you are going to need to apply for a mortgage loan. Your realtor will either recommend a banking institution or you may already have one in mind. You will be dealing with a loan officer who will be compiling all the data on you to see if you qualify for a loan to pay for this house. All lending institutions have different Underwriting Guidelines set in place when reviewing a borrower's financial history to determine the likelihood of receiving on-time payments. The primary items reviewed are listed below.\nType of Income\n--------------\nIncome is one of the most important variables a lender will examine because it is used to repay the loan. Income is reviewed for the type of work, length of employment, educational training required, and opportunity for advancement. An underwriter will look at the source of income and the likelihood of its continuance to arrive at a gross monthly figure.\n**Salary and Hourly Wages —** Calculated on a gross monthly basis, prior to income tax deductions.\n**Part-time and Second Job Income —** Not usually considered unless it is in place for 12 to 24 straight months. Lenders view part-time income as a strong compensating factor.\n**Commission, Bonus and Overtime Income —** Can only be used if received for two previous years. Further, an employer must verify that it is likely to continue. A 24-month average figure is used.\n**Retirement and Social Security Income —** Must continue for at least three years into the future to be considered. If it is tax free, it can be grossed up to an equivalent gross monthly figure. Multiply the net amount by 1.20 percent.\n**Alimony and Child Support Income —** Must be received for the 12 previous months and continue for the next 36 months. Lenders will require a divorce decree and a court printout to verify on-time payments.\n**Notes Receivable, Interest, Dividend and Trust Income —** Proof of receiving funds for 12 previous months is required. Documentation showing income due for 3 more years is also necessary.\n**Rental Income** — _Cannot_ come from a primary residence roommate. The only acceptable source is from an investment property. A lender will use **75 percent of the monthly rent** and subtract ownership expenses. The Schedule E of a tax return is used to verify the figures. If a home rented recently, a copy of a current month-to-month lease is acceptable.\n**Automobile Allowance and Expense Account Reimbursements** — Verified with 2 years tax returns and reduced by actual expenses listed on the income tax return Schedule C.\n**Education Expense Reimbursements —** This type of reimbursement is not considered income. Only viewed as slight compensating factor.\n**Self Employment Income —** Lenders are very careful in reviewing self-employed borrowers. Two years minimum ownership is necessary because two years is considered a representative sample. Lenders use a 2-year average monthly income figure from the **Adjusted Gross Income** on the tax returns. A lender may also add back additional income for depreciation and one-time capital expenses. Self-employed borrowers often have difficulty qualifying for a mortgage due to large expense write offs. A good solution to this challenge used to be the **_No Income Verification Loan_**, but there are very few of these available any more given the tightened lending standards in the current economy. NIV loan programs can be studied in the Mortgage Program section of the library.\nDebt and Liabilities\n--------------------\nAn applicant's liabilities are reviewed for cash flow. Lenders need to make sure there is enough income for the proposed mortgage payment, after other revolving and installment debts are paid.\n* All **loans, leases, and credit cards** are factored into the debt calculation. Utilities, insurance, food, clothing, schooling, etc. are not.\n* If a loan has **less than 10 months remaining**, a lender will usually disregard it.\n* The minimum monthly payment listed on a credit card bill is the figure used, not the payment made.\n* An applicant who co-borrowed for a friend or relative is accountable for the payment. If the applicant can show 12 months of on-time cancelled checks from the co-borrower, the debt will not count.\n* Loans can be paid off to qualify for a mortgage, but credit cards sometimes cannot (varies by lender). The reasoning is that if the credit card is paid off, the credit line still exists and the borrower can run up debt after the loan is closed.\n* A borrower with fewer liabilities is thought to demonstrate superior cash management skills.\nCredit History\n--------------\nMost lenders require a residential merged credit report (RMCR) from the 3 main credit bureaus: **Trans Union**, **Equifax**, and **Experian**. They will order one report which is a blending of all three credit bureaus and is easier to read than the individual reports. This \"blended\" credit report also searches public records for liens, judgments, bankruptcies and foreclosures. See our credit report index.\nCredit report in hand, an underwriter studies the applicant's credit to determine the likelihood of receiving an on-time mortgage payment. Many studies have shown that past performance is a reflection of future expectations. Hence, most lenders now use a national credit scoring system, typically the FICO score, to evaluate credit risk. If you're worried about credit scoring see our articles on it.\nThe mortgage lending process, once very forgiving, has tightened lending standards considerably. A person with excellent credit, good stability, and sufficient documentable income to make the payments comfortably will usually qualify for an \"A\" paper loan. \"A Paper\", or prime loans, make up the majority of loans in the U.S. and are loans that must conform to the guidelines set by Fannie Mae or Freddie Mac in order to be sold by the lender. Such loans must meet established and strict requirements regarding maximum loan amount, downpayment amount, borrower income and credit requirements and suitable properties. Loans that do not meet the credit and\/or income requirements of conforming \"A-paper\" loans are known as non-conforming loans and are often referred to as \"B\", \"C\" and \"D\" paper loans depending on the borrower's credit history and financial capacity.\nHere are some rules of thumb most lenders follow:\n* 12 plus months of positive credit will usually get you into an \"A paper\" loan program, depending on the overall credit. FHA loans usually follow this guideline more often than conventional loans.\n* Unpaid collections, judgments and charge offs must be paid prior to closing an A paper loan. The only exception is if the debt was due to the death of a primary wage earner, or the bill was a medical expense.\n* If a borrower has negotiated an acceptable payment plan, and has made on time payments for 6 to 12 months, a lender may not require a debt to be paid off prior to closing.\n* Credit items usually are reported for **7 years**. Bankruptcies expire after 10 years.\n* Foreclosure — 5 years from the completion date. From the fifth to seventh year following the foreclosure completion date, the purchase of a principal residence is permitted with a minimum 10 percent down and 680 FICO score. The purchase of a second or investment property is not permitted for 7 years. Limited cash out refinances are permitted for all occupancy types.\n* Short Sale — 2 years from the completion date and there are no exceptions or extenuating circumstances.\n* Deed-in-Lieu of Foreclosure — 4 year period from the date the deed-in-lieu is executed. From the fifth to the seventh year following the execution date the borrower may purchase a property secured by a principal residence, second home or investment property with the greater of 10 percent minimum down payment or the minimum down payment required for the transaction. Limited cash out and cash out refinance transactions secured by a principal residence, second home or investment property are permitted pursuant to the eligibility requirements in effect at that time.\n* Chapter 7 Bankruptcy — A borrower is eligible for an A paper loan program 4 years after discharge or dismissal, provided they have reestablished credit and have maintained perfect credit after the bankruptcy.\n* Chapter 13 Bankruptcy — 2 years from the discharge date or 4 years from the dismissal date.\n* Multiple Bankruptcies — 5 years from the most recent dismissal or discharge date for borrowers with more than one filing in the past 7 years.\n* The good credit of a **co-borrower** does not offset the bad credit of a borrower.\n* Credit scores usually range from 400 to 800. Changes to lending standards are occurring on a daily basis as a result of tightening lending standards, and can vary from lender-to-lender, so this information should be considered simply a guideline. For conforming loans, most lenders will lend down to a **FICO of 620**, with additional rate hits for the lower-end credit scores and loan-to-values. When you are borrowing more than 80 percent, they typically will not lend if you have a **FICO below 680**. The FHA\/VA program just changed their minimum required FICO to 620, unless you are qualifying a borrower with non-traditional credit. The few non-conforming loan programs that are still available typically require 30 percent down payment with a minimum FICO of 700 for self-employed and 650 for W-2 employees, and the loan-to-value will change with the loan amount.\n* A credit score below 600 may require an Alternative Credit mortgage program.\nSavings and Checking Accounts\n-----------------------------\nLenders evaluate checking and savings accounts for three reasons.\n1. The more money a borrower has after closing, the greater the probability of on-time payments.\n2. Most loan programs require a minimum borrower contribution.\n3. Lenders want to know that people have invested their own into the house, making it less likely that they will walk away from their life's savings. They analyze savings documents to insure the applicant did not borrow the funds or receive a gift.\nLenders look at the following types of accounts and assets for down payment funds:\n**Checking and Savings** — 60 days seasoning in a bank account is required for these funds.\n**Gifts and Grants** — After a borrower's minimum contribution, a gifts or grant is permitted.\n**Sale of Assets** — Personal property can be sold for the required contribution. The property should be appraised and a bill of sale is required. Also, a copy of the received check and a deposit slip are needed.\n**Secured Loans** — A loan secured by property is also an acceptable source of closing funds.\n**IRA, 401K, Keogh & SEP** — Any amount that can be accessed is an acceptable source of funds.\n**Sweat Equity and Cash On Hand** — Generally not acceptable. FHA programs allow it in special circumstances.\n**Sale Of Previous Home** — Must close prior to new home for the funds to be used. A lender will ask for a listing contract, sales contract, or HUD 1 closing statement.\nDebt vs Income Ratio\n--------------------\nThe percentage of one's debt to income is one of the most important factors when underwriting a loan. Lenders have determined that a house payment should not exceed approximately 30 percent of Gross Monthly Income. Gross Monthly Income is income _before_ taxes are taken out. Furthermore, a house payment plus minimum monthly revolving and installment debt should be less than 40 percent of Gross Monthly Income.\n**Example**\nAn applicant has $4,500 gross monthly income. The maximum mortgage payment is:\n$4,500 X .30 = $1,350\nTheir total debts come to:\n$500 Car \n$20 Visa \n$30 Sears \n$75 MasterCard \n\\---------------- \n$625 per month\nRemember, their total debts (mortgage plus other debts) must be less than or equal to 40 percent of their gross monthly income.\n$4,500 X .40 = $1,800\n$1,800 is the maximum debt the borrower can have, debts and mortgage payments combined. Can the borrower keep all their debts and have the maximum mortgage payment allowed? **NO!**\nIn this case, the borrower, since they have high debts, must adjust the maximum mortgage payment downward, because:\n$625 debts \n$1350 mortgage \n\\-------------- \n$1,975 - which is more than the $1,800 (40 percent of gross income) we calculated above.\nThe maximum mortgage payment is therefore:\n$1,800 - $625 (monthly debt) = $1,175\nSee our calculators to avoid doing these calculations by hand. END

TITLE: Underwriting Guidelines for Mortgage Loans CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: How to Pay Off Your Mortgage Early CONTENT: Pay Off Mortgage Loan and Save Thousands\n----------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nHave you ever thought how nice it would be to not have a mortgage payment every month? Second only to the dream of buying a home is actually paying it off. It takes most of us 30 years, during which time we end up paying more in interest than we pay on the home's actual purchase price. So the sooner you can pay off your mortgage, the more money you'll save — thousands, if not tens-of-thousands, of dollars over the lifetime of your loan.\nWeigh All Your Mortgage Options Before Buying a Home\n----------------------------------------------------\nYour ability to pay off your mortgage starts well before your first payment is due; before you sign on the dotted line; even before you find the house you want to buy. If you're in the market for a home, the time is now to start thinking about paying off your mortgage:\n* **Live Within Your Means.** If the purchase price on your home is so high relative to your income that it hampers your monthly cash flow, you won't have any money left over to make extra payments toward the principle on your home. Look for a lower priced home that will free up your money, not only for making extra payments on your home, but also so you have funds available to set aside for emergency living expenses.\n* **Adjustable vs Fixed-Rate Mortgage.** The reason buyers choose adjustable rate mortgages is because interest rates start out low. Buyers often talk themselves into believing that by the time their interest rate goes up, they'll be making more money to help cover the difference. That is rarely the case. Homeowners with adjustable interest rates all too often find themselves in over their heads. In fact, paying off their mortgage becomes the least of their worries, instead struggling to make their mortgage payments at all. With fixed rate mortgages, there are no surprises. You know your payments will always stay the same. And if rates do fall, you can always refinance to take advantage of the savings.\n* **No Penalty For Prepayment.** Under the terms of many mortgages, homeowners are penalized for making payments early, which is imperative to paying off your mortgage. So be sure to choose a mortgage that does not assign penalties for early payments. Also check to see how many extra payments are allowed per year, as this too may be limited.\nMake Extra Payments\n-------------------\nIt sounds simple enough because it is — the way to pay off your mortgage is make more payments toward the principle balance. Not only does this reduce the length of the terms of your loan but, as the principle shrinks, so does the interest. The complication, of course, is figuring out how to make extra payments works for you:\n* **The Dollar-a-Month Plan.** Let's say you have a $150,000 fixed-rate mortgage at 6 percent. By adding an extra dollar to your $900 payment each month - one dollar the first month, two dollars the next month, three dollars the next month, and so on, you will pay your mortgage off quicker and save a lot of money in interest.\n* **Make Bi-Weekly Payments.** Instead of making one monthly mortgage payment, say $900, break that amount into into bi-weekly payments of $450 each which will be 26 payments per year. So by the end of the year, you've made one full extra payment toward your mortgage. Add this up over a 30 year period and you will have paid off your mortgage quicker and saved money in interest.\n* **The 15-year Switch.** Since interest rates on 15-year fixed-rate mortgages are generally lower than on 30-year loans, you might want to consider refinancing to pay off your loan faster. Keep in mind your monthly payment will go up so make sure this is affordable for you.\n**Extra Payment Plan**\n**Mortgage & Interest Rate**\n**Total Interest Saved**\n**Reduced Payments**\nThe Dollar-a-Month Plan\n$150K at 6% Fixed\n$52,000\nPaid Off in 22 years\nBi-Weekly Payments\n$150K at 6% Fixed\n$37,000\nPaid Off in 24 years\n15-Year Switch\n$150K at 5.5% Fixed\n$103,000\nPaid Off in 15 years\n* **Send in Lump Sums.** We all want to do something special with that bonus from work, that tax refund, that family inheritance. Well, what could be more special than putting it toward ownership of a home?\n* **Prioritize Making Extra Payments at the Beginning of Your Mortgage.** You'll be charged the most interest the first few years of your loan, as that is when your principle is its highest. So make it a priority to, one way or another, make extra payments toward the principle the first 5 to 7 years of your loan — a period of time in which you may otherwise pay in thousands, but only see a reduction of hundreds.\nMake Sure Your Extra Payments are Going Toward the Principle\n------------------------------------------------------------\nWhen you send in more money than is due for your regular monthly mortgage payment, lenders may not know what to do with it. Instead of putting it toward the principle, they may simply apply it to next month's mortgage payment. It's your job to specify, in the memo line of your check for example, that you want the extra money to go toward the principle of your loan. Then, equally important, is follow-up, making sure your extra payments are being applied accordingly.\nDetermine Whether You Need to Refinance\n---------------------------------------\nThe terms of your mortgage could make paying it off difficult. Consider refinancing if:\n* **Yours is an Adjustable Rate Mortgage.** Refinance for a fixed rate so you're guaranteed the same payment throughout the length of your loan. As with any other expense, knowing what to expect helps you budget better, including extra payments.\n* **You'd Like to Switch From a Long-Term Loan to a Short-Term Loan.** Over the course of a 30-year mortgage, homeowners typically pay more for the interest than the actual price of the home. If you can swing higher payments each month, you could refinance to a 15-year mortgage that would cut your overall interest paid in half. Of course, with this option you have no choice but to pay more toward your loan each month. Whereas if you opt to simply send in extra payments on an existing 30-year mortgage, there's room for adjustments depending on the dynamics of your financial situation.\nWhether you're already years into a mortgage, or in the market for your first home, the time is now to take control. With a little resourcefulness and discipline, you can pay off your mortgage sooner than later - saving money and buying peace of mind. END

TITLE: How to Pay Off Your Mortgage Early CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: How to Pay Off Your Mortgage Early CONTENT: | | | | \n: . END

TITLE: Real Estate Information on Buying or Selling Your House CONTENT: Articles About Real Estate and Real Estate Agents\n-------------------------------------------------\n###### Written by: Kristy Welsh\nAt some point in your life, you are going to either buy or sell a house, condo, townhouse, or plot of land, and knowing how to go about this is not a small feat. There are lots of laws governing a real estate transaction and these laws vary state to state and country to country. Along with knowing all the legal ramifications of selling or buying real estate, you also have to be astute in the art of negotiating and closing a deal.\nWe have put together some articles designed to help you get your house ready to sell and find funding to pay for a new one. And with real estate getting harder and harder for the average person to afford, we also have an article addressing renting. Hopefully, this information will help you during your next real estate transaction.\nHow to Sell Your Home in a Slow Market — This article offers some great tips on how to sell your home quickly. From setting the right price to staging your house, all of this goes into selling your house fast.\nRelocation Tips — If you are moving to a new city or state, here are some helpful relocation tips to get you through this stressful time.\nHousing Recovery Act\nInformation on Buying Real Estate\n---------------------------------\nTips for Buying a Home \"As-Is\" — If you are thinking about buying a property that went into foreclosure, follow our tips to get the most out of an \"as-is\" property.\nIs Buying a Home Cheaper Than Renting? — You have to look at the current housing market and what that is doing to rental prices. The pendulum is swinging again, so read our article to see which way it has swung.\nUsing a Lease Purchase or Rent-to-Own Agreement to Buy a Home — As lenders make it harder and harder to get a loan, home sellers need to find creative ways to sell their house. A lease purchase agreement may be just the ticket.\nUsing Self-Directed IRAs to Purchase Real Estate — If you are thinking of buying an investment property, and want to use your IRA to pay for it, read this article to understand all the ins and outs of the IRA laws.\nUsing a Real Estate Agent or Internet to Buy or Sell Your House\n---------------------------------------------------------------\nHow to Find a Good Real Estate Agent — Buying or selling a house is stressful enough and finding a good realtor to get you through it is priceless. Here are some tips on finding a good real estate agent.\nUsing the Internet to Buy or Sell a Home — More and more people are browsing the Internet for their new home. See how to buy or sell a home on the Internet and get the most bang for your buck.\nGlossary of Real Estate and Home Buying Terms — Sometimes all that legal jargon can be a bit overwhelming to the average person. We have made a list of the most commonly used real estate terms and broke them down into easy to understand definitions. END

TITLE: Manage Your Personal Finances and Save Money CONTENT: Manage Your Personal Finances — Save Money and Get out of Debt\n--------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nIf your money could talk, what would it be saying to you? If your money is saying \"bye-bye\" to you as it disappears casually out of your bank account, it might be time for you to manage your personal finances. In this article you'll find some great tips on whipping your money into shape and making it work for you, not the other way around. You will learn how to start saving money and using this money to get you out of debt. Managing your personal finances is the start to financial freedom.\nWhat is Personal Finance?\n-------------------------\nTo understand personal finance, take a step back and look at the big picture. Businesses have strict guidelines for managing their money and we expect them to do a proper job. We need to see ourselves as treasurers of our own little empire — and hold ourselves accountable for keeping our empire in the black. If that sounds daunting, don't worry, it's not that hard. You don't need an accounting degree to manage your personal finances. All you need is a bit of time to sit down and work out where your money is going. Read on to see how to do this.\n### #1: Keep Track of Your Money\nMoney is a bit like time — if you don't keep track of it, it seems to just disappear.\n**_\"Americans have an average cash spend of $233 per week, but can't account for at least 9 percent ($21) of that cash. That's more than $1,000 per year.\"_**\nAs you can see, it is all too easy to lose track of what you are spending. A coffee here, a magazine there, it all adds up. So if you're serious about managing your money, one of the best ways to start is to _**write down every single expense for a week**_. That includes coffees, lunches, shopping trips, groceries — everything. Each night when you get home, write down that day's expenses. Or better still, carry a notebook around with you and write down each spend as it happens (you could also use your mobile phone's note feature). That way you're less likely to forget something. This is a really empowering tip because you start to feel the beginnings of control over your money.\n### #2: Budget Your Money\nOnce you've got your weekly cash spending written down, it's time to whip your money into shape by using the dreaded \"B\" word — budget. The nice people over at mint.com have developed a free online budget planner. All you do is enter in your income and your expenses — including things like insurance, rent, car payments, and the cash expenses that you added up during the week. Most of these cash expenses will come under the heading of \"Entertainment\/Eating Out.\" The program will calculate your total income and total expenses and give you a final amount. If this is a negative amount, it means you are spending more than you are earning — ouch!\nIf you find you are in the red, you're going to need to do some work with your money to get it into shape. But before you launch into a full-on assault of your spending habits, try the following ideas to ease yourself into your new disciplined money regime.\n### #3: Change Your Spending Habits\nDon't rush in and make big changes all at once or you'll soon give up and go back to your overspending ways. Personal finance writer, Charles A. Jaffe, has been quoted as saying, \"It's not your salary that makes you rich, it's your spending habits.\" The first place to make changes is those daily cash spends that you wrote down in the first week. When you do the budget, you enter in the weekly amounts and it calculates the annual amount for each expense. You'll see that if you spend $4 a day on coffee, that equates to $1,040 per year. A $7 daily lunch purchase costs you $1,820 a year. Its incredible how these little amounts add up over time.\nIf all you do is reduce your coffee and lunch purchases to only every other day, you'll have $1,430 extra at the end of the year to spend on a holiday or pay off your credit card. And that's just the tip of the iceberg. You'll be sure to find other little expenses that you can cut back on.\n### #4: Manage Your Credit Cards\nCredit cards are like alcohol — used responsibly they are great — but it doesn't take much to lose control. If you carry a large credit card balance, you should find a credit card that offers zero percent interest on both balance transfers and purchases for a certain period of time. And never use your credit card for cash advances, because as soon as you withdraw the money you are charged huge interest rates (up to 25 percent, in some cases).\nIf you are really having problems managing your money, once you have transferred your balance to a zero percent APR card, try not to use the credit card at all until you have paid off the amount owing. Yes, you will miss out on frequent flyer points and other rewards, but the benefits of these programs are far outweighed by the satisfaction you'll feel when you start to get your money under control. Many banks offer prepaid or debit MasterCard and Visa cards, which allow you to use your own funds from your savings account for online purchases which require a credit card. They are a great idea. If you can only spend what you have in your bank account you'll be much less likely to splurge on something that you can't afford.\n### #5: Secret to Successful Saving\nOnce you've cut back on your spending and used those savings to pay off your credit cards, you can start thinking about saving and investing. Many financial planners and wealthy people will tell you the secret of successful saving is to _pay yourself first_. This concept was first introduced back in the 1920's by George Classon in his book, _\"The Richest Man In Babylon.\"_  Paying yourself first means setting aside 10 percent of your take-home pay in a separate savings account. The theory is that if you don't put aside this amount first, then it will be gobbled up by the daily expenses of living. Once your credit cards are under control, factor this amount into your budget and you'll soon see a very tidy nest egg developing. Whether you want to save for your first home, pay off your mortgage sooner or invest in shares and property, paying yourself first is a guaranteed way to achieve your financial dreams.\n### #6: Traps to Avoid\nOne of the biggest traps to avoid in personal finance are the \"No Interest, No Payments for 24 Months\" type of offers touted by the furniture and big box stores. These offers sound great at first, but there are often hidden monthly administration costs. Plus, if you don't repay the full amount within the time limit you will start to pay exorbitant interest rates on the remaining balance. If you do decide to take up one of these offers, don't just pay the minimum amount suggested on the monthly balance report you will receive. Take out your calculator and divide the total amount owing by the number of interest free months and pay that amount each month to ensure you have a zero balance at the end of the agreement.\nAnother trap to avoid is using your mortgage's redraw account for non-essential items. You should never use the extra money you've paid off your mortgage for things such as holidays or Christmas presents. Start a separate account for these types of things and keep your redraw amounts in place to help pay off your mortgage sooner, or use it for things that will add value and equity to your home — such as renovations.\n### #7: Plan for Future Life Events\nOnce you have your budget in place, you'll need to make adjustments as your life situation changes. Getting married or setting up house with your partner will require you to work on a combined budget, and if you are thinking of starting a family you will need to work out how much extra you'll need to raise a child. You'll find a handy calculator at babycenter.com\/baby-cost-calculator to help you with this.\nAn important element of any personal financial plan is life and income protection insurance, particularly if you have a family. If for some reason you are unable to work, income protection insurance will pay you a certain percentage of your income (up to 75 percent) for up to 3 years. There are also various other types of life insurance such as accident and serious illness cover which provide lump sum amounts. An insurance broker will help you to work out the best cover for your needs.\nSo there you have it. Money management tips that will help you turn your personal finance into a lean, mean money machine. END

TITLE: Change Your Money Mindset and Think Differently About Money CONTENT: Money Mindset 101 — Change the Way You Think About Money\n--------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nIf managing money is a mystery to you, clue yourself in to this: Change your money mindset and you’ll likely be surprised at how money starts working for you.\nGive your negative beliefs attention \n-------------------------------------\nThe more you try ignoring a thought, the more persistent it becomes. It’s there for a reason — to get your attention. So give it what it wants and move on.\nThink you don’t have negative beliefs about money? See if any of these ring a bell:\n* There’s never enough money.\n* I don’t make enough money.\n* I’m bad with money.\n* If only I had more money, then...\n* I can’t afford...\nIf any or all of the thoughts on this list ring true for you, write them down. Add to the list any others that come to mind. If you’re still having trouble coming up with anything, try remembering any negative beliefs your parents had about money, as communicated to you via their words or actions growing up. What you may discover is that your parents passed their negative beliefs about money on to you.\nCounter your negative beliefs with positive affirmations \n---------------------------------------------------------\nOnce you’ve made your list of negative beliefs about money, it’s time to counter them with positive ones. Granted, they’ll be just thoughts to start, but think them long enough and they’ll eventually grow into beliefs.\nTake another look at the list above of examples of negative beliefs about money.\nThen take a look at the list below, countering each negative belief with the opposite (i.e., positive) thought:\n* There’s always an abundance of money.\n* I make more than enough money.\n* I’m good with money.\n* I have all the money I need.\n* I can afford everything I want.\nFinally, for every negative belief you wrote down on your own list, write beside it your counter response. Yes, it might feel like a lie. That’s perfectly normal considering you’ve spent a lifetime believing the opposite is true. Just keep in mind it takes time for the mind to adopt something new.\nExercise your new money mindset \n--------------------------------\nYou’ve done the digging (for negative beliefs) and you’ve planted new seeds (positive affirmations). Now it’s time to nurture the new money mindset that cannot grow on its own.\nEvery 30 days:\n* Choose one of your positive affirmations to work with.\n* Write it down and post it somewhere you’ll see it every day, multiple times a day.\n* Every time you find yourself having a negative thought about money, think or say aloud your positive affirmation instead.\n* Every time you engage in a financial transaction, from buying gas to taking money out of the ATM, think or say your positive affirmation aloud.\nOnce you’ve cycled through all of the positive affirmations on your list (spending an entire month with each one as you go), start over again from the beginning.\nYou can also strengthen your money mindset via:\n* **Journaling.**  Every time you have a negative thought about money, write it down. Then ask yourself the following series of questions. What if it’s true? What’s more likely true? How can this truth inform change?\n* **Vision boards.**  The more clearly you can see your financial goals, the more within reach they will feel. So make your goals as crystal clear as possible via vision boards. On a bulletin board or poster board, collage together whatever images and words support one or more of your financial goals.\nFor more in-depth ideas on changing your money mindset through journaling and vision boards (as well as positive affirmations), see 3 Creative Ways to Mind Your Money. END

TITLE: Change Your Money Mindset and Think Differently About Money CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Change Your Money Mindset and Think Differently About Money CONTENT: | | | | \n: . END

TITLE: How to Recognize the Signs of Too Much Debt CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nYou know things have been tight financially in your household, but just how bad are things really? Most of us want to believe the lack of cash and the ever increasing mound of debt will only stay with us momentarily — that we will be able to dig ourselves out of this hole. But, if you can agree with most of the following statements, it is time to make some major changes along with a few minor ones in your spending habits.\nSigns You May Be Carrying Too Much Debt\n---------------------------------------\n1. You have been late paying your bills more than once.\n2. You never pay the full amount billed to your credit card accounts.\n3. You are starting to take out cash advances to cover basic living expenses are these loans are becoming more frequent.\n4. Late fees are beginning to appear on such a regular basis that you are surprised when they aren't listed.\n5. Bank charges for insufficient funds have begun to eat into your disposable income.\n6. Making the payments on your installment loans, including your car payment, is becoming difficult.\n7. Each new expense including appliance repairs, home repairs, dental bills, prescriptions, unexpected doctor visits, or car repairs is a major expense that you cannot afford.\n8. You've gone through all of your emergency cash reserves, or worse yet, your retirement funds.\n9. Your spending habits seem compulsive.\nIf you don't have any cash reserves to cover unexpected costs, no matter how minor, weathering a recession or even a simple slowing down of the economy is going to take its toll on your financial situation. It is time to attempt a personal debt reduction by developing a personal debt reduction strategy that includes an increase in savings, a decrease in spending, and a reduction in debt.\nHow to Stop Accumulating More Debt\n----------------------------------\nHopefully you have honestly looked at your financial situation and realized you are drowning in debt. Don't feel bad — you are not alone! Now that you know the problem, time to fix it. Here's some articles that will help you stop the bleeding:\n* Reduce Your Expenses — Yes, no matter how tight things are, you can do this.\n* Eliminate Your Debt — This article offers step-by-step ideas to eliminate your debts.\n* Manage Student Loan Debt — Learn how to manage the seemingly un-manageable student loan debt.\nIt it never too late to begin the process of trying to stop accumulating more debt. It may take a bit of will power, but once you start seeing the rewards of spending less and saving more, you will wonder why you did not start down this road to recovery much sooner. END

TITLE: How to Recognize the Signs of Too Much Debt CONTENT: | | | | \n: . END

TITLE: Disposable Income - Set Up an Automatic Savings or 401K Account CONTENT: How Disposable is Your Income?\n------------------------------\n###### Written by: Kristy Welsh\nwritten by Bonnie Conrad\nI don't know about you but I have never cared much for the term \"disposal income.\" That term seems to imply that there is all this extra money just floating around out there waiting to be put to use. While I'm sure there are some people out there who are awash in cash they have no way to spend, that is certainly not the case for most of us. From my perspective it seems that more and more workers are having to work harder and harder just to stay even. Getting ahead often seems like a distant dream, and it can be difficult just to make ends meet. The idea of disposable income can seem quite remote to most of us.\nEven though the term may be misleading, however, there are some important lessons to be learned from the concept. Even if it seems that every penny is needed and there is simply nothing left to save, in many cases it is possible to eke out some savings from even the most modest income. There are some tried and true techniques that workers can use to maximize their income and their savings. While these techniques may not create mountains of so-called disposable income, they can at least help you find some money to put away for the future.\nWhat to do With Your Tax Refund\n-------------------------------\nMany workers are thrilled at the dawn of every year when they do their taxes and find that they are due a big refund. While the idea of getting a big check from the government is understandably attractive, a big refund simply means that you have been loaning money to the government, interest free, for the past 12 months. While this is certainly a good deal for the U.S. Treasury, it is not such a good deal for you. Even in a low interest rate environment like the one we find ourselves in now it would have been possible to earn some interest on those extra funds.\nOne of the best things workers can do to boost their savings is to adjust their withholding to even things out. This change in withholding will typically result in more take home pay — and a smaller refund the following year. This strategy works best if the \"found money\" in the paycheck is directed to a high yield savings account. If you follow this strategy for the entire year the balance of that account should be larger than any anticipated refund. You will have stopped lending interest free money to the government and started to pay yourself instead.\nMake Your Savings Automatic\n---------------------------\nThe above strategy works so well because it is automatic — the \"extra\" funds recovered through the change in withholding is automatically directed to a savings account. It never reaches your hands, and therefore the temptation to spend it all is reduced. This automatic savings program can be used to direct other funds to savings and investments as well, and many workers have used this technique as the basis of their retirement plan.\nWith more and more employers abandoning the traditional defined benefit pension plan in favor of 401(k) programs, this automatic savings has become easier than ever before. Most workers in large companies already have access to a 401(k) program, and many smaller employers are following suit with programs of their own. A 401(k) program allows those workers to direct a percentage of their income to fund their future retirement, and this has a number of important benefits.\nOne of the most significant benefits is that the money placed in a 401(k) program is not subject to current taxes. This allows the worker to keep more of his or her money by reducing his or her tax liability. Participating in a 401(k) program also helps to make retirement savings automatic. The money is invested week after week, year after year, with no further action required on the part of the employee. As the savings grow over time, workers can see the benefits of compound interest and investment returns.\nAutomatic savings plans like 401(k) programs can also give workers the fiscal discipline they will need to grow their savings over time. Many people find it difficult to get started on a savings program, especially since that so-called \"disposable income\" can be so hard to find. The beauty of a forced savings program is that the money is removed from the worker's paycheck just like taxes and other deductions. This can allow the individual consumer to learn to live on less than they make — a key foundation for financial success. END

TITLE: Stop Living Paycheck to Paycheck CONTENT: Stop Living Paycheck to Paycheck in Ten Steps\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nMany of us live paycheck to paycheck without saving any money in between pay periods. It turns into such a common experience that living paycheck to paycheck feels like the norm. If you're sick and tired of the struggle — week after week, month after month, year after year — it's time to find a new normal. Here are ten steps to help you save money, budget your money, and change the way you think about money so you can stop the cycle of living paycheck to paycheck and start saving money.\n### 1\\. Change your mindset\nWhen you're living paycheck to paycheck, it doesn't feel like you have much choice. And while that may be true today, if you change the way you think about your money, it doesn't have to stay that way.\nYou are in charge of the money you make and how you choose to spend it. The longer you've been struggling to make ends meet, the more difficult it will be to accept this truth. But like it or not, there is no way around it. The only way to stop living paycheck to paycheck is to believe you have the power to change it.\n### 2\\. Get others on board\nAll too often, living beyond your means is perpetuated by relationships. You may be ready tighten your belt, but it's tough to say no to family and friends who don't know just how important it is for you to change the way you manage your money. Call a family meeting and have the agenda be all about financial goals and how to get there.\nAs for friends, be upfront and tell them you need to spend less and save more. What you'll likely find is that they would love to do the same, and together you can plan more affordable fun accordingly.\n### 3\\. Visualize your financial goals\nYou probably have a pretty good idea of what you'd like to accomplish with your money, but a concrete visual will get you there faster. Start with a list then, if you're so inspired, turn it into a vision board which is a fun, creative exercise for the whole family.\nThere's no one right way to make a vision board, but you can start with a stack of magazines relative to your financial goals from real estate, to travel, to investing. Clip pictures, words, and phrases, then collage them onto a piece of poster board. Feel free to incorporate drawings, paint, and odds and ends that help flesh out your goals. \n### 4\\. Track your spending for 30 days\nWe all think we know where our money goes. Then we track it, and we see our money going places we never would have imagined.\nDesignate a small notebook to record every penny you spend. Keep it in your purse or pocket so you can write down every transaction as it happens so that you don't forget. Of course, you will forget now and then, so save every receipt too.\nAt the end of the 30-days, check your receipts against your spending log to be sure they match up. Also, take the time to check your log against your debit and credit card accounts. In this manner, not much is going to slip through the cracks.\n### 5\\. Create or modify your budget\nSubtract what you're spending from your income, then cut where you can.\nEntertainment is an easy place to start. For instance, it's a pretty safe bet that we can all stand to sacrifice cable television and Netflix. Your local library likely has an impressive collection of DVDs you can rent for free instead.\nWhere you can really make a dent, though, is in a couple of places you will resist at nearly all cost — housing and transportation. Look at moving to a smaller place or getting yourself into a cheaper car.\nOf course, look at other areas as well; just be practical. The food budget may be ripe for cutting if you eat out a lot, but it could be tougher if you already make all your meals at home.\nWhatever you do, do not skip this step. It's the only to way to ensure success of the rest.\n### 6\\. Start saving money\nBe sure to include in your budget money to go toward savings. If it seems ludicrous to think you could set aside anything when you're living paycheck to paycheck, you can always set aside something. As little as $5 to $25 a month will add up, and is a great way to get you into the savings habit.\n### 7\\. Stop making late payments\nIf you pay your rent, utilities, car and other bills past the due date, you're just throwing money away on late fees. Of course, it's tough when you're living paycheck to paycheck. But once you cut your expenses, you should have less trouble paying your bills on time, if not early.\n### 8\\. Pay down your credit cards\nWhen you're living paycheck to paycheck, credit cards can feel like your best friend. This is a fallacy, and a dangerous one. Unless it is an absolute necessity, like keeping the electricity on, do not charge another thing to your credit cards.\nIf you're already carrying a balance on one or more cards, and only making the minimum payment, you're wasting money on interest fees every month. Start sending in more than the minimum, even if it's just an extra $5 to start.\n### 9\\. Increase your income\nThis one comes late in the list only to avoid scaring you off from this process. While there is nothing scary about earning more money, advice like \"increase your income\" can sound a little ridiculous because it never seems that easy. Only...it is. There is always a way for you to make more money than you do.\nMaybe it's time to ask for that raise you know you deserve. Or to get another job working nights or weekends. Or to start doing odd jobs when and where you can find them — TaskRabbit is a great place to start.\n### 10\\. Keep yourself inspired\nSteps one through nine won't be easy, and they won't be quick. You'll feel discouraged and you'll want to quit. So it is imperative you do all you can to stay inspired.\nLook at your vision board and read your list of goals every single day. Call monthly family meetings to track your progress. Confide in friends for support. Read inspiring books and blogs. Post inspiring quotes on the bathroom mirror, the refrigerator, and your desk. More than anything, be grateful for what you already have. END

TITLE: Sales Tactics and Sneaky Tricks Used by Retailers CONTENT: Sneaky Sales Tactics Used by Retailers to Spend Your Money\n----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nIn our budgeting section of articles, you will find information on retirement, managing your personal finances, how to save money, and where to put your saved money. But when you think of budgeting, you probably think about spreadsheets where you have to keep track of all your spending only to find out you are spending your money in the wrong places. No one likes to be on a budget, and no one likes to have to curtail their spending habits. But one major way to keep your budget in line is to watch your spending, which can be hard with all the land mines laid before you as soon as you walk into a store. Every time you walk into the mall, grocery store, or big-box retailer, remember it's you against them — them being the marketers, CEOs, and sales professionals who are bound and determined to help you spend your money. We have uncovered some sneaky tricks they may use on you as soon as you step into their stores.\nFree Shipping Offers\n--------------------\nShopping online is booming and who doesn't love shopping from their home computer while wearing p.j.'s and drinking coffee? Online shopping is so convenient, but paying for shipping can be expensive and a real downer. Web retailers know many of us have an aversion to paying shipping costs, so they often offer free-shipping deals. But these may come with a catch — spend so much or buy so many items in order to get free shipping.\nBefore you fall into the free shipping trap, think about how much you are going to pay for that item (the one you really don't need) so you can meet the requirement. When in actuality, you could have just paid the $5 for shipping instead of the $35 for that useless item. \nMultiple Item Discounts\n-----------------------\nThis sales tactic is rampant in grocery stores. How often have you gone into your local grocery store to see all kinds of signs offering \"10 for $10\" or mix-and-match 10 items for a set price? Who doesn't need 10 bottles of ketchup — really? We are not saying all of these multiple discount offers are bad, it is just why spend $10 on 10 items (when you really only needed one) and you could be saving yourself money. Unless you really need multiples of something, it is best just to buy the number you really need and save the money for something else in the store.\nBOGO Deals\n----------\nNo, we are not talking about a dice game (that's Bunko). We are talking about the Buy-One-Get-One free sales. BOGOs work similarly to multiple purchase pricing because retailers are trying to get you to buy more than you normally would. Now, if you are already planning to make a purchase and a second one is free, then score for you. But, if you find yourself justifying the purchase of un-needed new shoes because of a BOGO ad, then score one for the retailer. Before you make that BOGO purchase, think long and hard if you really need to make the purchase in the first place. Don't just emotionally buy something because you are getting something for free.\nCoupon Savings\n--------------\nWe love using coupons and we devoted an entire article about how to use coupons to save money. That said, coupons have a sneaky way of making you buy items you would never purchase at full prices, or even sale price. Word of warning; coupons make it feel like you are getting a deal even if you aren't. Double check and make sure the after coupon price is in fact a bargain.\nRewards Programs and Loyalty Cards\n----------------------------------\nOpen your wallet and we bet you have at least two reward or loyalty cards in there. Many grocery stores offer loyalty cards which afford you money off gas for your car — or you have a card to Sam's Club or CostCo — or maybe you have a rewards card from Sears or Kohl's. All of these are how a retailer gets you to keep coming back to their store when you have other options. Having these cards makes you stop \"comparison shopping\" and just head off to the store where you have the loyalty card from. Word to the wise — make sure you are getting the best deals at your \"loyalty\" store and make sure it is worth your while to continue to shop there. If not, find a different store where you could be saving money instead of just racking up loyalty points.\nPsychological Pricing\n---------------------\nYou would think by now we would be savvy enough not to be tricked by seeing the number 9 at the end of a price. And yet, we continue to think that something priced $19.99 is a better deal than an item prices at $20. Who knew we could be so manipulated by a price tag? Known as \"charm pricing,\" ending sales tags with a \"9\" is one way businesses use psychological pricing to their advantage. They may also trick you into spending more by dropping the dollar sign, using small font, bundling items together, or reducing the left digit by one (1.99 instead of 2.00). Not surprisingly, if you Google this topic, there are countless articles on the psychology of pricing and the many ways to price items to affect a customer's buying urge. Our advice is to try to not let your emotions get in the way of a purchase because an emotional purchase equates to spending more money.\nPoint-of-Sale Add-Ons \n----------------------\nGrocery and big box stores are great at this sneaky tactic, just take notice of all the display items on either side of you as you are checking out at the sales register. Gum, candy, batteries, little flash lights, are all things we really did not go into the store to buy, but man they look pretty good as you are standing in line waiting to check out. Who hasn't snuck in that snickers candy bar or pack of gum into your grocery cart as you wait to unload all of your groceries on to the conveyor belt.\nBesides the stores who shamelessly put all of these goodies right in your face, what about the sales clerk who promotes the monthly deal just before she hits the \"total\" button on her register. One store\/restaurant that is so good at this is Cracker Barrel. You are paying for your meal when the cashier hits you with all kinds of \"specials\" they are having on candy, jams or jellies.  Don't be tempted to make this type of emotional purchase. Do you really need 10 candy bars or a jar of homemade jelly?\nIf you noticed a common thread here, it is to not make purchases based on emotion. Marketers are betting they can trick you into making an emotional purchase luring you into buying too much or buying something you really don't need. All of these tactics mean one thing for you — you will spend too much money. Budgeting means cutting back spending and not spending money on items and things you don't really need. If you have to stop and think about whether or not to buy something, chances are you should not buy it. Keeping your emotions in check while shopping will save you a lot of money in the end. END

TITLE: Sales Tactics and Sneaky Tricks Used by Retailers CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Sharing Economy - Collaborative Consumption CONTENT: Sharing Economy 101 — The Basics on Sharing\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nHave you ever bought or sold something on Craigslist? Booked a place to stay through Airbnb? Donated to a Kickstarter campaign? Then you are part of the _sharing economy_, a cultural phenomenon that is changing the way we go about our daily lives, both personally and professionally.\nThe sharing economy, also known as _collaborative consumption_, is a socio-economic system in which people make money, save money, and promote sustainability by doing business with their peers.\n**Reasons the Sharing Economy is Becoming Popular**\n---------------------------------------------------\nThe concept of sharing with our peers is not a new one. But in recent years a trio of factors have converged to create the perfect climate for a sharing economy explosion:\n1. _**The Internet** —_ We can connect with anyone, anywhere, so we are no longer challenged to find other people who have what we want (or vice versa), and no longer limited to sharing with those in our local communities.\n2. _**The Recession** —_ The sharing economy has proven a lifesaver for those struggling to make ends meet post-recession, as the job market has been slow to recover.\n3. _**Anti-Consumerism** —_ As we grow more sensitive to the wastefulness of our consumer economy, sharing with one another what already exists is increasingly attractive.\n**What is \"Shared\" in the Sharing Economy?**\n--------------------------------------------\nThe sky is the limit when it comes to what can be bought, sold, rented, borrowed, traded, or otherwise acquired in the sharing economy:\n1. Goods, both new and used, through sites like:\n* eBaby\n* Craigslist\n* Etsy\n* Yerdle\n* Quirky\n* Threadflip\n* Poshmark\n* Rent the Runway\n* CarDaddy\n3. Services, both personal and professional, through sites like:\n* TaskRabbit\n* Fiverr\n* Elance\n* Freelancer.com\n5. Space, for lodging, business, and storage, through sites like:\n* Airbnb\n* Couchsurfing\n* Peerspace\n* ShareDesk\n* Cubbyhole\n7. Transportation, both local and long-distance, through sites like:\n* Uber\n* Lyft\n* Sherpashare\n* Getaround\n* Scoot\n9. Food, through sites like:\n* KitchenSurfing\n* Shareyourmeal\n* LeftoverSwap\n* EatWith\n* Feastly\n11. Money, both loaned and fundraised, through sites like:\n* Kickstarter\n* Indiegogo\n* Kiva\n* Lending Club\n* Prosper\nAnd that’s just a sampling. There are thousands of sharing economy websites that help match people who want something with those who have it to offer.\n**Can You Make a Living Off the Sharing Economy?**\n--------------------------------------------------\nThat depends on what kind of living you need to make relative to your quality of life.\nWhile the money-making opportunities in the sharing economy are pretty much infinite, your resources are not. The more specialized your skill or valuable your product, the more money you can expect to earn in less time. But unless you work every waking hour, you could be hard-pressed living off earnings from TaskRabbit jobs, for example, or Craigslist sales.\nThat’s not to say it cannot be done, but it’s probably wise to treat sharing economy opportunities as _supplemental_ income, at least in the beginning.\n**Where to Start Sharing**\n--------------------------\nVisit any one of the reputable sharing economy websites listed in this article or browse the directories at CollaborativeConsumption.com and CompareandShare.com. END

TITLE: Sharing Economy - Collaborative Consumption CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Sharing Economy - Collaborative Consumption CONTENT: | | | | \n: . END

TITLE: Financial Awareness Year Long Campaign CONTENT: Financial Awareness Calendar: 12 Campaigns for Families and Educators\n---------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nIt’s not easy keeping ourselves or our kids motivated to get smarter about money. Financial awareness campaigns are a great way to learn, and stay inspired, all year long. Mark your calendar for these important dates when thousands of organizations rally to raise awareness, share resources, and host activities and events nationwide.\n**January**\n-----------\n### **EITC Awareness Day — January 26, 2018**\nSo many Americans miss out on the Earned Income Tax Credit (EITC) that the IRS has a day dedicated to raising awareness. If you made $53,267 or less last year, _you_ might qualify. Use the EITC Assistant interactive tool to find out.\n**February**\n------------\n### **America Saves Week — February 26 - March 3, 2018**\nSixty-two percent of Americans have less than $1,000 in savings. Needless to say, we need at _least_ a week devoted to raising awareness about this shortcoming. Since 2007, America Saves Week has been doing just that — a campaign involving more than 1,000 non-profit, government, and corporate organizations encouraging consumers to save up! Learn more at AmericaSavesWeek.org.\n**March**\n---------\n### **National Consumer Protection Week — During the first full week of March 2018**\nDo you know how to protect yourself from identity thieves? Do you know what to do if you suspect you have been a victim of fraud? Do you know what debt collectors can and can’t do when trying to collect a debt from you? Do you know how to dispute errors on your credit reports?\nEveryone needs these consumer rights basics under their belts, thus the organization of National Consumer Protection Week. Thousands of organizations participate, including AARP, BBB, FTC, the Consumer Financial Protection Bureau, and the National Cyber Security Alliance. Learn more at NCPW.gov.\n### **World Consumer Rights Day — March 15 Every Year**\nOn March 15, 1962, John F. Kennedy outlined his vision of consumer rights in an address to Congress:\n“Consumers by definition, include us all. They are the largest economic group, affecting and affected by almost every public and private economic decision. Yet they are the only important group…whose views are often not heard.”\nSince 1983, consumer organizations worldwide have observed March 15 as World Consumer Rights Day, working to further the development of eight basic consumer rights that grew from President Kennedy’s vision - 1) the right to satisfaction of basic needs, 2) the right to safety, 3) the right to be informed, 4) the right to choose, 5) the right to be heard, 6) the right to redress, 7) the right to consumer education, and 8) the right to a healthy environment. Learn more at ConsumersInternational.org.\n### **Global Money Week — March 12-18, 2018**\nAccording to an OECD proficiency test of 15-year-olds in 18 countries, U.S. students rank 9th in financial literacy. Global Money Week presents U.S. educators and parents with an opportunity to join the international community in the financial education of our kids.\n**April**\n---------\n### **Financial Literacy Month**\nDo you have a budget that works? Do you know how to improve your credit score? Do you know how much you need to save for retirement? Do you know the smartest investments to get you there? Wherever there’s a hole in your financial education, April is the time to fill it -- Financial Literacy Month, designated as such by the Senate Resolution 316 in 2004. Learn more at FinancialLiteracyMonth.com.\n### **Money Smart Week — April 21-28, 2018**\nIn 2002, the Federal Reserve Bank of Chicago created Money Smart Week — a campaign aimed at helping consumers learn how to better manage their finances. You’ll find all sorts of great resources at MoneySmartWeek.org, including an interactive map that lets you check for events by state.\n### **Teach Children to Save Day — April 20, 2018**\nIf we want our kids to be better savers than us, we need to start teaching them early. You don’t save what’s left over. You save first, then spend the rest. Teach Children to Save Day — sponsored by the American Bankers Association (ABA) — is aimed at spreading messages like these to our kids. Try one or more of these four fun saving ideas.\n**May**\n-------\n### **National 529 College Savings Day — May 29 Every Year**\nStudent loans should be a last resort, not a given. And one of the best ways of staving them off is through a 529 college savings plan, thus the day dedicated to its benefits. For instance, while you do have to pay income tax on contributions, all earnings are tax-free. Learn more about 529 college savings plans.\n**October**\n-----------\n### **Get Smart About Credit Day — October 19, 2017 & October 18, 2018**\nLearning about credit shouldn’t start when we get our first credit cards. That’s a sure way to mismanage them. Unfortunately, we tend to underestimate our kids and how soon the concept of credit can and should be understood. On Get Smart About Credit Day — sponsored by the American Bankers Association — volunteer bankers visit local classrooms to help get them credit-educated early.\n### **National Save for Retirement Week — 3rd Week of October Every Year**\nOne in four workers don’t make the most of their 401(k) match. It’s oversights like this that inspire National Save for Retirement Week, established in 2006 to encourage Americans to participate as fully as possible in their employer-sponsored retirement plans. Are you making the most of _your_ 401k?\n**November**\n------------\n### **National Scholarship Month**\nMany students and their families wait too long to start looking for scholarship money. Or they don’t look in the right places. Or, worse, they don’t look at all because they assume you need straight A’s to qualify. National Scholarship Month is aimed at getting the facts straight. END

TITLE: Learn How to Discuss Money with your Romantic Partner CONTENT: Romantic Ways to Talk About Money with Your Partner\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\n_Romantic: \"Conducive to or characterized by the expression of love.\"_\nIf there is any conversation with your partner that could benefit from a greater expression of love, it’s the money talk.  No matter how close you are with your partner, talking about money doesn’t come easy to most of us. The good news is, it’s not the money talk that is to blame. It’s the approach.\nFear fuels anger. Anger fuels blame. Blame fuels defensiveness. The key? Instead of starting from fear, try starting from love.\n### **1\\. Talk to your partner about the money talk.**\nThe time to talk about money is not when a concern or problem comes up. That’s not to say you should ignore concerns or problems, only that (unless they’re urgent) they are best left discussed at a scheduled time and place when you are both prepared for the conversation, mentally and emotionally.\n### **2\\. Share with your partner how you believe talking about money can improve your relationship.**\nWhen you talk about money with your partner on a regular basis, you will:\n* Grow closer\n* Reduce conflict\n* Achieve financial goals faster\nAny others you’d add to the list?\n### **3\\. Suggest that the money talk be ongoing.**\nAs with every other aspect of your relationship, your financial intimacy needs nurturing too. Checking in with one another on a regular basis will not only help you stay on track with financial goals, but also adjust them in light of new information, challenges, or feelings. \n### **4\\. Schedule regular times to talk.**\nHow often you talk is up to you, just keep it consistent and easy to remember:\n* Every Saturday morning?\n* Every other Sunday?\n* The first of every month?\nAs for time of day, choose carefully. Early is best unless it’s a day when neither of you have a lot going on and an evening money conversation, for example, won’t be colored by a long, stressful workday.\nFinally, be sure and set a length of time to talk. You can adjust this going forward depending on what feels right to you, but try starting with a 2-hour time block.\n### **5\\. Talk in a positive, comfortable environment.**\nWhere do you and your partner seem to have the best conversations at home? The kitchen table? The patio? The living room floor? Wherever it is, that’s where you should have your money talk. Set out some of your favorite refreshments, and you’re good to go.\n### **6\\. Make separate lists of what you want to discuss.**\nThis means taking some time beforehand, _individually_, to get clear on what issues matter to you most. This should probably include:\n* Financial goals, both short- and long-term.\n* Coming clean about your own money mistakes.\n* Concerns about your partner’s money behavior.\n### **7\\. Bring relevant numbers and documents.**\nThe more you can bring the better, especially if it’s information you’ve never shared with your partner before, like:\n* Account balances\n* Credit reports\n* Credit scores\n### **8\\. Take turns talking.**\nGo back-and-forth, each of you talking about one item on your list at a time. Note, it is probably best to lead with items relative to your own money mistakes before addressing any concerns you may have with theirs.\n### **9\\. Practice reflective, non-judgmental listening.**\nAfter listening to your partner share an item on their list, reflect back to them what you heard, as in “What I’m hearing you say is….” It’s then your partner’s turn to clarify things as they deem necessary.\n### **10\\. Recap what (if anything) each of you plans to do before the _next_ talk.**\nDid you agree to spend less on food this week? Pay off a credit card bill this month? Cancel cable? Open a savings account? Send a dispute letter to a credit bureau?\nWhatever the tasks you’ve agreed to, recap them all, sure to state who’s doing what, and when.\n### **11\\. Do something romantic afterward.**\nIn keeping with the theme, make it something frugal. Take a walk. Go to lunch. Catch a matinee.\n### **12\\. For your next talk, keep a running list of ideas, observations, concerns, and tasks completed.**\nWhether it’s on your computer, smartphone, or good-old-fashioned notebook paper, keep a record of what you’re thinking and feeling, money-wise, going forward. While you may not share all of this with your partner, it can prove an invaluable resource for getting to the heart of what you really need to be talking about. END

TITLE: Tips on When to Start Talking to a Financial Advisor CONTENT: Times When You Need to Talk to a Financial Advisor\n--------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nHere is an article on how to find a good financial planner, which is all well and good, but when should you start talking with a financial advisor? That is the million dollar question — quite literally. Of course, the first step is to find a reputable financial consultant and once you do, it is time to start talking to them about saving and investing your money. This article addresses the times when you need to talk to a financial advisor. While you don't always need to work with a financial planner on an ongoing basis, there are times when it makes sense to pop in for a consultation and\/or a financial check-up.\nWhen You Get Your First Job\n---------------------------\nAfter you get your first job is a good time to make your first visit to a financial advisor. It doesn't matter if you are making $20,000 or $200,000 a year, this is a point in your life when you need to start saving for retirement. Retirement you say? Yes, retirement! Wouldn't you like to be able to retire early and not have to worry about money when you do retire. Then, the only way to accomplish this goal is to start saving for it right from the beginning. Now, you might not agree with this initial advise and you can always change your goals years down the road to meet your changing needs.\nWhen You Get Married\n--------------------\nThis seems like a natural progression in life — you get a job then you get married. Let's say you saw a financial advisor when you got your job but now you need to see him or her again and this time, you will need to bring along your new spouse. If your spouse has never been to a financial planner, it is great time to get them on the bandwagon with you. If they have been to a financial planner prior to getting married, then this is a perfect time to bring both of your \"plans\" together. Your advisor will be able to make sure you both are on the right path and they can help combine your assets, if needed. With the two of you now planning ahead for retirement, and possibly children, your planner can make sure you are putting aside enough income and in the right places to maximize your returns.\nWhen You Receive a Large Sum of Money\n-------------------------------------\nReceiving a large amount of money, such as an inheritance, lottery winning, lawsuit award, bonus, buyout or a big raise, can create a surge in your financial health. Unfortunately, most people tend to squander this new found wealth instead of putting it to good use. A recent study showed that most people only save **half** of an inheritance they receive and one-third of those interviewed saw their **overall wealth remain the same or decline**! Now that is some poor financial decision making. Furthermore, the majority of people polled thought they needed at least $1 million in order to work with a financial advisor — which could not be further from the truth. No matter how much money you receive, you should always talk to a financial expert before you blow it all on bad investments or frivolous purchases.\nWhen You are Preparing to Pass on Your Wealth\n---------------------------------------------\nWe all can't live forever and at some point you are going to have to part with your money. If you have been vigilant at saving and investing, chances are you have socked away a nice nest egg and a pretty large portfolio of wealth. When you die, you do not want all of this going to the state via probate court. This is when you need to start thinking about estate planning and talking to a professional about how to set up your beneficiaries and your living will. Hiring a professional to set up your estate will help navigate through complex laws and investments strategies that apply to high income people. Once you have over $500,000 in assets (which isn't really that hard to do if you own a home and a couple cars), you need to make sure your wealth is protected and set up so your children and\/or grandchildren can enjoy what you worked so hard building up.\nAs we mentioned before, the first step to investing in your future is to find a reputable and competent financial planner. The next steps, as listed above, need to be followed so your money can work for you and increase as you get older. Start planning now for college educations, retirement, and passing your wealth to your family once you are gone. END

TITLE: Tips on When to Start Talking to a Financial Advisor CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

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TITLE: Using a Financial Planner to Invest Your Money Wisely CONTENT: Hire a Competent Financial Planner to Help Invest Your Money\n------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nFinancial planners are practicing professionals who help people deal with personal financial issues through proper planning and management of cash flow, saving for higher education, investing money, tax planning, estate planning, and business planning. Now that you've started to save money, you will need a professional to help you make the most of this money.\nWe all know how important it is to save for our financial futures, staying out of debt and credit history, but few of us have the time, knowledge, and resources it takes to invest our money wisely. Since we already hire professionals to do our gardening, shopping and other chores, it only seems natural to turn to a professional for financial planning advice. While hiring a financial advisor can certainly make sense, it is important to understand what a financial advisor is, and more importantly, how he or she is compensated. After all, you worked hard to get your savings plan going, you want to make every penny count!\nWhen looking for a financial planner, you want to make sure this person is a certified financial planner which means this person has taken high-level training programs to stay current in the marketplace. There are three basic types of financial planners in the marketplace — commission based, fee based, and fee only. The differences between the three flavors of financial planners are vast, and it is vital for any would be investor to understand how the choice they make can impact their financial future and that of their families.\nCommission Based Financial Planners\n-----------------------------------\nA commission based financial planner is compensated based on the investments he or she sells, typically earning a commission on each product he or she sells. This is similar to a mortgage broker. While it is certainly possible for a commission based financial planner to be knowledgeable and honest, it is important for clients to understand the potential conflicts of interest that can arise.\nClients of commission based financial planners must make doubly sure that each recommended investment truly meets their own needs. It is important to consider factors such as age, financial experience and years before retirement when making an investment choice, and it is vital that any commission based financial planner respect these needs and cater to them.\nFee Based Financial Planners\n----------------------------\nA fee based financial planner is basically a combination of a traditional commission based financial planner and a fee only financial advisor. Even though these financial planners may charge an hourly or set fee for their services, they are also compensated through commissions on the investments they sell. It is important for every investor to understand the difference between a fee based advisor and a fee only advisor and act accordingly.\nAs with a commission based financial advisor, it is important for clients of fee based financial advisors to be sure that the advice given is sound and directed toward their own needs. Those who are in search of truly independent and impartial advice may want to consider a fee only financial advisor instead.\nFee Only Financial Planners\n---------------------------\nThe third type of financial advisor is known as the fee only advisor, and the compensation structure of these advisors is designed to ensure impartiality, honesty and independence. Unlike fee based and commission based financial advisors, a fee only advisor is compensated only through the fees he or she charges clients.\nClients pay for the services of a fee based financial advisor in a number of ways, including hourly fees, yearly charges and fees for money management. Fee only advisors derive none of their income from commissions on the products chosen by their customers, eliminating the conflicts of interest that can arise with the other two types of financial professionals.\nHow to Find a Financial Planner\n-------------------------------\nThe Financial Planning Association website is a good place to start. This website lets you search for planners by location or specialty. Seek out financial planners who have a CFP (Certified Financial Planner) credential from the Certified Financial Planner Board of Standards.\n**Word of Caution.** The Financial Planning Association does not verify credentials; it just lists planners. You'll next have to verify a planner's CFP status and background with the CFP Board of Standards.\nYou can also find a good financial planner by looking for a good certified accountant. CPAs are licensed, and should know the ins and outs of tax savings, a crucial part of your financial planning strategy. In addition, some CPAs have earned Personal Financial Specialist certification from the American Institute of CPAs.\nCheck out registries with professional associations like the National Association of Personal Financial Advisors or Garrett Planning Network to locate advisers in your area that have gotten training and agreed to the organizations' ethical standards. END

TITLE: Generation Y Kids Need Good Financial Advice CONTENT: Gen-Y Guide to Finding Financial Advice You Can Trust\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nAccording to a Fidelity Investments survey, nearly a quarter of Millennials trust no one for financial advice. As though that’s not disheartening enough, 39 percent of them worry at least once a week about their financial future. And with good reason. The average age of Generation Y is 30 years old, a pivotal time for setting in motion a financial plan for the future.\nUnfortunately, without anyone to rely on for advice, many Millennials are uncertain about how best to budget, save, and invest toward their financial goals. If you have yet to find financial advice you can trust, try this.\n**Ask Your Parents For Financial Advice**\n-----------------------------------------\nOne-third of Millennials say they trust their parents more than anyone else for financial advice. It’s not so much their expertise that Gen Y counts on (though that may certainly be the case), but their parents’ agenda: looking out for the best interests of their children.\nMillennials tend to turn to their parents on the subject of finances because they know they have their best interests at heart. This combined with a lifetime of trial-and-error makes Gen Y parents a great go-to for advice on basic financial decisions, from managing credit cards to buying a home.\n**Read Books on Financial Advice**\n----------------------------------\nYou don’t need an expensive or lengthy financial education to learn all you need to know about managing your money. The world’s foremost experts turned authors have got you covered. Once you start reading, you’ll find your own unique path to learning, but this list is a good place to start:\n_Rich Dad, Poor Dad_ by Robert Kiyosaki\n_The Wall Street Journal Guide to Starting Your Financial Life_ by Karen Blumenthal\n_Get a Financial Life: Personal Finance in Your Twenties and Thirties_ by Beth Kobliner\n_The Money Book for the Young, Fabulous & Broke_ by Suze Orman\n_The Only Investment Guide You’ll Ever Need_ by Andrew Tobias\n_Your Money or Your Life_ by Vicki Robin\n_The Millionaire Next Door_ by Thomas Stanley and William Danko\n_A Random Walk Down Wall Street_ by Burton Malkiel\n_Buffett: The Making of an American Capitalist_ by Roger Lowenstein\n_The Essays of Warren Buffet_ by Warren Buffet\n_The Four Pillars of Investing_ by Dr. William Bernstein\n_The Bogleheads’ Guide to Investing_ by Larimore, Lindauer, & LeBoeuf\n_The Richest Man in Babylon_ by George Clason\n**Consult With a Financial Planner**\n------------------------------------\nIf and when you want to take things to the next level, you may consider consulting with a financial planner. Should you do so, be sure to do your homework first.\nWhen choosing a financial planner, be mindful of the following:\n* What is their background, education, and employment history?\n* Are they certified (as you only want to do business with a Certified Financial Planner)?\n* Do they take the classes necessary to fulfill the continuing education requirement?\n* Do they charge a flat rate (preferable to a commission-based fee)?\n* Do they have impressive referrals?\n**Trust Yourself**\n------------------\nNo matter what anyone else advises, only you know what is right for your financial future.\nYes, you need to find people you can trust, be it your parents, expert authors, or a financial planner. But after gathering all the information you can on the subject, defer to yourself first and foremost when it comes time to make any financial decision. END

TITLE: Valentines Day on a Budget CONTENT: Making Valentines Day Affordable - How to Say I Love You on a Budget\n--------------------------------------------------------------------\n###### Written by: Kristy Welsh\nCelebrate Valentine's Day On a Budget\n-------------------------------------\n_Last Updated: April 18, 2016_\nAccording to a recent survey, Valentine's Day is the second most expensive holiday of the year — Christmas being number one. It is the holiday where you are suppose to say \"I Love You\" to your significant other, which to some means spending a lot of money on a gift. This does not have to be the case for the cash strapped individual trying to get out of debt. Don't let Valentine's Day be another expense that keeps you from getting ahead in your personal finances.\nWhen is comes to Valentine's Day spending, Americans spent over $18 billion in 2017 on candy, flowers, jewelry, cards, and dining out. The average person spent $136.57, which was down 96 cents from 2016. The biggest expense was candy, 49.7 percent, followed by greeting cards at 46.9 percent.\nTips for Valentines Gifts on a Budget\n-------------------------------------\nIf you are on a tight budget, looking to get out of debt, or just plain fed up with the commercialization involved with Valentine's Day, here are a few gift ideas that say \"I Love You\" without putting you further in debt. They may even improve your love life!\n1. Write a poem or intimate message to your sweetheart and include it in the card you give him or her. You would be amazed at the reaction you get when the words you present are your own. Of course this will require you to sit down for a while, dedicate some time, any really put you thoughts to paper.\n2. Put together a box of personal favorites, such as a favorite candy bar, magazine, or some other little item that will show them you are attuned to their smallest desires.\n3. Give them a back rub. This intimate gift will do wonders for your relationship!\n4. How about writing and including a song with your greeting? Again, because the words and the sentiment are your won, they are guaranteed to get a positive response.\n5. Cook them their favorite meal at home. This is more intimate and far less expensive than going to a crowded, overpriced restaurant.\nIf you really feel the need to spend money and buy something, here are a few ideas for inexpensive alternatives to the normal Valentine's Day gift giving:\n1. Give your significant other a plant instead of a dozen roses that will die in a couple of weeks. Plants can be purchased inexpensively and dressed up real nice with ribbons, bows, and balloons. A simple or homemade card with your personal feelings can top the whole thing off.\n2. How about giving a small teddy bear with some candy attached? This is sentimental gift that is sure to please.\n3. A cake from the local bakery is a great idea, very inexpensive, and a great gift if your sweetheart has a sweet tooth.\n4. How about giving a break from cooking? Bring home dinner home instead of having to cook, and don't forget the inexpensive wine; many wines now rate highly at a lower price.\nValentine's Day does not have to cost a fortune. It actually has more meaning when gifts are from the heart. These inexpensive and free gifts are especially great if both you and your sweetheart are on the same page financially.\nSo take a step to turn around what would otherwise be another expensive holiday, and you just might find an emotional boost that strengthens your relationship! END

TITLE: Valentines Day on a Budget CONTENT: | | | | \n: . END

TITLE: Information on Target Date Retirement Funds CONTENT: Target Date Retirement Funds: Pros and Cons\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nThe target date mutual fund is a new investment tool that has emerged within the last decade, designed to help investors make sense of the jumble of funds offered by their retirement plans. These new choices are known as target date funds (TDF), and chances are your 401(k) or 403(b) plan contains at least one of these unique investment vehicles. Target date funds are typically named for the year you plan to retire, i.e., Target Date 2020, Target Date 2030 and so on.\nSet It and Forget It\n--------------------\nThe idea is that these funds will change their mix of stocks and bonds as time goes on, helping younger investors capture more of the stock market's historically high returns while shielding older workers from a potentially catastrophic bear market. The actual track record of these funds has been somewhat of a hit or miss affair, so it is important for workers to research the funds they are offered thoroughly before investing.\nGood Choice for Hands Off Investors\n-----------------------------------\nSome workers love nothing more than tracking their investments on a daily basis, while others would rather have a root canal than read the financial section of the newspaper. If you fall into the latter category, it may make sense to invest at least some of your retirement money in a target date fund. The managers of these funds make all the investment decisions for you, from the proper mix of stocks and bonds for your age to which stocks and bonds to buy.\nProblems with the One-Size Fits All Approach\n--------------------------------------------\nOne of the potential downsides of these target date retirement funds is that they by necessity take a one-size fits all approach to investing. In order to do their job the fund managers who oversee these mutual funds need to assume that every 40 year old has the same needs, and that every 60 year old pre-retiree will need the same type of portfolio. The problem is that the reality is rarely that simple - every investor will have different needs and a different tolerance for risk. Investors who dislike the cookie cutter approach to planning for retirement may be more comfortable investing on their own.\nIn addition, some target date retirement funds charge fees that are higher than the industry average, so it is important for workers to read the fund prospectus carefully before making a commitment. High fees can easily eat into investment returns, especially over the 20 or 30 years that these funds may be invested. Target date retirement funds can be a good choice for some investors, but it is still important for every investor to due plenty of homework.\nYour 401(k) May Already Include These Funds\n-------------------------------------------\nAssets held in target-date funds, also called life-cycle or age-based funds, crossed the $500 billion threshold in 2013, according to fund tracker Morningstar. Demand for such products, especially among 401(k) plan participants, shows no signs of slowing, according to financial experts.\nWhich Funds Should I Choose?\n----------------------------\nFor more information, you can talk to your investment plan advisor to see what programs your investment plan offers and see if these funds are a good option for you. END

TITLE: Using Self-Directed IRAs for Retirement Investing CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nRecently, there has been skyrocketing growth in the number of self-directed retirement accounts opened by individuals. Although statistics are not formally tracked, the Securities and Exchange Commission estimated that about 2 percent of all IRAs are self-directed, which works out to be more than $100 billion. Firms such as Millennium Trust and Pensco Trust have seen come crazy growth in self-directed IRAs since 2005. But is this a good thing or is this type of IRA too risky for the average person to control.\nWhat is a Self-Directed IRA?\n----------------------------\nA Self-Directed Individual Retirement Account (SDIRA) is an IRA that requires the account owner to make investment decisions and investments on behalf of the retirement plan. IRS regulations require that either a qualified trustee, or custodian hold the IRA assets on behalf of the IRA owner. Generally the trustee\/custodian will maintain the assets and all transaction and other records pertaining to them, file required IRS reports, issue client statements, assist in helping clients understand the rules and regulations pertaining to certain prohibited transactions, and perform other administrative duties on behalf of the self-directed IRA owner for the life of the IRA account.\nSelf-directed IRA accounts are typically not limited to a select group of asset types (e.g., stocks, bonds, and mutual funds), and most truly self-directed IRA custodians will permit their clients to engage in most investments, if not all, of the IRS permitted investment types (an almost unlimited array of possibilities including foreign real estate). Some of the additional investment options permitted under the regulations include, but are not limited to, real estate, stocks, mortgages, franchises, partnerships, private equity and tax liens.\nWhat Types of Transactions Are Prohibited?\n------------------------------------------\nYou cannot invest in collectibles, S-Corporations or life insurance contracts. There are also certain transactions in which you cannot participate when using IRA funds, designated as \"prohibited transactions.\" Prohibited transactions are defined in IRC § 4975(c)(1) and IRS Publication 590. These transactions were established to maintain that everything the IRA engages in is for the exclusive benefit of the retirement plan. Sometimes professionals refer to these as \"self-dealing\" transactions. Self-dealing occurs when an IRA owner uses their individual retirement funds for their personal benefit instead of benefiting the IRA. If you violate these rules, your entire IRA could loose its tax-deferred or tax-free status. There is more detail on prohibited transactions at the end of this article.\nSelecting and Setting Up a Self-Directed IRA\n--------------------------------------------\nCreating a self-directed IRA is easy. In order to own these special assets in a retirement account, you'll have to find a firm that offers a self-directed IRA. You can't buy real estate or other special assets with a basic IRA, so the first step will be to open a self-directed IRA. A number of financial institutions such as banks, insurance companies and brokerages can assist you in opening a self-directed IRA, but most likely your investment options will be limited to the products they sell and service. To buy these special assets with your IRA you will most likely have to find an independent administrator to serve as a trustee or custodian, and you must do your homework in this selection as well. Here is an explanation of the different types of administrators that you may encounter:\n* **Fee-Based Administrators.**  A set fee is charged for each transaction you request the administrator to perform.\n* **Asset-Based Administrators.**  A set percentage of your total asset value is charged annually regardless of the tasks performed. The percentage will typically be 1.5 percent or lower, contingent on total asset value, the commission percentage decreasing as asset value increases.\n* **Hybrid-Based Administrator.**  This type of management involves a combination of asset and fee, and seems to be the most predominant method used currently according to our research.\nSome examples of well-known established companies that handle this sort of IRA include; Entrust, Equity Trust, Guidant Financial or Pensco Trust. When selecting a company to administer the IRA, consider that experience is key. You'll want to ensure you fully understand the fees involved, but ask hard questions to ensure they are well-versed in the requirements involving the type of investment you plan to utilize. Many companies\/administrators do not even take on real estate contracts, as the complexities are numerous.\nDecide on the Type and Funding of the Account\n---------------------------------------------\nYou can either setup a new account and deposit the IRA contribution limit or you can rollover an existing IRA, 401(k) or other qualified retirement plan. You do not have to rollover all of your existing IRA or retirement account. For example, you may want to experiment with this method by moving a portion of your retirement into a self-directed plan. Decide on the type of account that will work best for your needs. An example would be a Roth IRA, traditional IRA, solo 401(k) or others. Your administrator should be able to assist you in choosing the appropriate type of account.\nContribution Limits and Types of Self-Directed IRAs\n---------------------------------------------------\n* Contribution limits for 2017 are $5,500 if you're under 50 and $6,500 for those age 50 and older.\n* A traditional IRA comes in two flavors: deductible and nondeductible.\n* To qualify for a deductible IRA, which lets you deduct all or part of your contributions from your taxable income, use the following guidelines:\n * If you have no retirement plan at work and you're under 70-1\/2, you can invest in a deductible IRA and deduct the entire amount from your taxes.\n * If you have a 401(k) or other retirement plan at work, you may fully or partially deduct your contribution only if your adjusted gross income (AGI) qualifies. For 2017, your AGI cannot exceed $72,000 if you're single or head of household, or $119,000 if you're married and filing jointly.\n * If you're not covered by a retirement plan, but your spouse is, you may qualify for a full or partial deduction if you file jointly and your AGI is below $194,000. (The same rule applies if you're a non-working spouse of someone covered by a retirement plan at work.)\n* If you're not eligible to contribute to a deductible IRA, you may be eligible to contribute to a Roth IRA. If your AGI is below $133,000 (single individuals) or $196,000 (married, filing jointly).\n* The above contribution limits can be found in Publication 590 at www.irs.gov.\nI've Set Up My Self-Directed IRA — What's Next?\n-----------------------------------------------\nYou've selected an administrator to act as the trustee of your account and facilitate investments on your behalf. They keep the books, disburse money, and collect profits for the IRA, but they may not give investment advice. So now comes the real work: you must go out and find the asset to invest in. You are completely responsible for the due diligence involved; once you've selected the property, business or asset, your administrator can assist you in the transaction. The key is, all income or proceeds from the investment are returned to the IRA. Transactions that can be interpreted as providing immediate financial gain to self-directed account or other disqualified persons holders are not allowed.\nA disqualified person in accordance with (IRC 4975(e)(2)) is defined as:\n* The IRA owner.\n* The spouse of the IRA owner.\n* Lineal descendants (such as daughters, sons, grandchildren) of the IRA owner.\n* Spouses of lineal descendants (such as a son or daughter-in-law) of the IRA owner.\n* Lineal ancestors (Mother, Father, Grandparents) of the IRA owner.\n* Fiduciaries (those providing services to the plan) to the IRA owner.\n* Investment advisors.\n* Any business entity in which any of the disqualified persons as defined above has a 50 percent or greater interest.\n**Prohibited Transactions:** Defined in IRC 4975(c)(1) and IRS Publication 590, these rules were established to maintain that everything the IRA engages in is for the \"exclusive benefit of the retirement plan.\" Often referred to as self-dealing transactions, this section of the code identifies prohibited transactions to include the following (either direct or indirect):\n* Lending money or other extension of credit between a plan and a disqualified person. For example, you cannot personally guarantee a loan for a real estate purchase by your IRA.\n* Selling, exchanging, or leasing, any property between a plan and a disqualified person. For example, your IRA cannot buy property you currently own from you.\n* Dealing with income or assets of a plan by a disqualified person who is a fiduciary acting in his own interest or for his own account. For example, you should not loan money to your Financial Advisor.\n* Furnishing goods, services, or facilities between a plan and a disqualified person. For example, you cannot use furniture from your primary residence to furnish your IRAs rental property.\n* Transferring or using by or for the benefit of, a disqualified person the income or assets of a plan. For example, your IRA cannot buy a timeshare condo you or your family intends to use.\n* Receiving any consideration for his or her personal account by a disqualified person who is a fiduciary from any party dealing with the plan in connection with a transaction involving the income or assets of the plan. For example, you cannot pay yourself income from profits generated from your IRAs rental property.\nIn summary, the use of a self-directed IRA is an excellent method to diversify your retirement accounts, if you do your due diligence effectively as well as utilize informed, effective advisors. Real estate and other special investments have a potential higher rate of return through the combination of cash flow and appreciation, potentially accelerating the value of the IRA quicker than some traditional methods. Due to the complexities of the IRS rules and regulations regarding this type of investment vehicle, it is also a necessity to be diligent and informed. Following this advice, the self-directed IRA as an investment can be a very good choice. END

TITLE: Using Self-Directed IRAs for Retirement Investing CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Don't Waste Money - Learn to Spend Your Money Wisely CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nThe dollar does not go as far as it once did when it comes to paying for goods and services. According to a recent study by the Census Bureau, the typical American family's income, after adjusting for inflation, is roughly back where it was in 1996. That is a staggering statistic but one that may not be too surprising to most of us. A lot of Americans lost their high paying jobs and need to think about adjusting their spending habits accordingly. Learn how to stop wasting your hard earned money and start spending your money more wisely.\nStop Paying ATM and Overdraft Fees\n----------------------------------\nIt is not bad enough that when we use a bank that is not ours, we get charged an ATM fee, but then our own bank turns around and charges us a fee. These little fees every month add up to hundreds of dollars in a year, which is a lot of wasted money. To avoid these fees, become more ATM savvy and use only ATM's that are in your network. And, talk to your banking professional about ways to eliminate fees by maybe opening a different account or keeping a balance in an account. Just a little more attention to your banking habits can mean a big savings in ATM fees.\nThe same holds true for overdraft fees. This is a fee which can be completely avoided by keeping a \"cushion\" in a savings account, having your employer use direct deposit for your payroll, and taking advantage of internet access to your accounts so you can monitor them better. You might also want to consider signing up for some type of overdraft protection program with your bank.\nWhy Buy New When Used Will Do\n-----------------------------\nFrom cars to clothes there is nothing you can't buy used. There are numerous websites, such as EBay and Craigslist, just to name a few, who specialize in selling used stuff. You can even barter for things. In this economy, there are a lot of people trying to get rid of their \"stuff\" either because they need the money or they are losing their home to a foreclosure. Look for local garage sales in the weekend newspaper and visit local thrift stores like GoodWill. You can get gently used furniture, clothes, toys, or appliances for a fraction of the cost of buying new.\nNegotiate a Better Deal and Save Money\n--------------------------------------\nOne of the easiest ways to save money is to simply ask for a better deal. You are not going to go into a car dealer and pay sticker price, right? So why not apply your negotiation skills to other vendors, such as, doctors, lawyers, that lady selling purses on the street corner, or the person in charge of the garage sale. All they can do is say \"No\" and if they do, you can always take your business elsewhere. There are a lot of companies and people out there who need the revenue and will be willing to make a deal with you.\nBuy Generic Brands\n------------------\nWhy pay for name brands when generics will do? Have you ever noticed all the store brands when you are walking down the grocery store aisle — they look just the same as the name brand items but at a fraction of the cost. Does it really matter if you use Heinz ketchup? Why not use the store brand and save a buck or two.\nThe same can be said for prescriptions. Most medications come in a generic brand and are far less expensive than the name brand. Just make sure to check with your doctor first before you use the generic brand just to make sure there are no side effects.\nBuy a Smaller House\n-------------------\nRight now, the average American house is twice the size it was 50 years ago. It seems as family size got smaller, the houses got bigger. Now that makes sense! Not! Anyway, a bigger house means more furniture, higher utilities, more upkeep, and more \"stuff\" to buy to put in it. Ever notice the more room you have the more you buy — whether you need it or not. Three car garage, why not fill the one space with more junk you don't need. You will be a garage sale waiting to happen.\nDon't Pay Interest on Credit Cards — Pay With Cash\n--------------------------------------------------\nUsing someone else's money, like a bank or credit union, costs you more money in the long run in interest payments. Learn to pay with cash when you can and pay off the balances on those charge cards if you do happen to use them. If you have to make a large purchase, such as an appliance or car, make sure to get the lowest interest rate you can. This comes back negotiating a better interest rate or tell them you will take you business elsewhere. You will be surprised how accommodating a vendor can be!\nUsing some of these helpful tips will make your hard earned money stretch a little further. You are already working too hard to make money, so don't blow it on frivolous purchases when there are cheaper alternatives available. END

TITLE: Save Money Through Automatic Savings Accounts CONTENT: Best Way to Save Money — Automate Your Savings\n----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nLike all things that are good for us, we know how important it is to save and invest for the future, but most Americans are not saving enough. Despite the importance of saving for a rainy day, the devil is in the details, and finding the money to start a savings plan can be difficult, especially in the current era of high unemployment, rising gas prices and increased costs of living. Studies show that once we do set money aside, we are likely to leave it there. But how to get started? Automate!\nWays to Automate Your Savings\n-----------------------------\nWhen it comes to saving money, it may be helpful to take a hint from Uncle Sam. Most workers in this country have their taxes automatically withdrawn from their paychecks, and as a result many of us never realize exactly how much we are paying into the federal kitty. The money is gone before it ever reaches our hands or our bank accounts, and over time we have simply learned to make do with what's left.\nSavers can use this same principle to put aside money for emergencies, large purchases and even retirement. By dedicating a portion of each and every paycheck to savings and investments, workers can learn to live on the remaining funds while building up a significant nest egg.\n### Direct Deposit\nOne of the simplest ways to get started is through direct deposit. Ask your employer to have your paycheck deposited directly into your bank account, thus avoiding the hassles of long lines at the bank and the risk of lost or misdirected checks. Many employers will allow workers to split their direct deposits between two or more financial institutions, making it easy for workers to dedicate a portion of their paychecks to a savings account or money market fund. Even in today's low interest rate environment it is possible to find some accounts with attractive rates, and dedicating a portion of each check to savings that can help that emergency fund get off to a good start.\n### Keep the Change\nAnother easy method to start putting money into a savings account is to sign up for a \"keep the change\" type of service at your bank. Many banks offer a service that will round up purchases and put the extra change into a savings account. You never know you are missing the money and one day you look at your savings account and there is lots of money in there! What a nice surprise.\n### Set Up a Dedicated Savings Account\nThose same workers can help fund their emergency accounts even faster by dedicating any \"extra\" money they receive to their favorite savings account. From cash birthday and holiday presents to bonuses and incentive payments, workers can build up their rainy day funds without impacting their lifestyle or that of their family.\nThe same is true with annual raises, and many workers will want to dedicate a portion of their annual raise to the savings portion of their direct deposit arrangement. Ramping up the percentage devoted to savings is a great way to grow a significant nest egg with a minimum of hassle and hardship.\nLearning to live on less than we make is definitely a learned behavior, but it is one of the most important lessons we will ever learn. No matter what your current salary, chances are you can set aside at least a few dollars from each paycheck. While that may not seem significant, those dollars can add up quickly, and a well funded emergency fund is a great way to cushion the blow of an unexpected financial setback. END

TITLE: Information on Rolling Over a 401K Account CONTENT: How and Why to Roll Over a 401(k)\n---------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nWhen you leave an employer, it is advisable that you take your 401(k) funds with you. This gives you a clean break from your former employer, not to mention lower fees and more control over your investment options if you choose to roll over to an Individual Retirement Account (IRA).\n**Why should I roll over my 401(k) to an IRA?**\n-----------------------------------------------\nWhile you certainly can roll over your current employer-sponsored 401(k) to that of your new employer’s, it is probably in your best interest to open an IRA instead.\nIRA’s have fewer fees than 401(k) accounts, as well as more opportunities for you to pick and choose your investments (e.g., via stocks, bonds, mutual funds).\nThis is not to say you should avoid setting up a 401(k) account with your new employer, as you do not want to miss out on the employer match. You’ll simply have two retirement accounts working for you – the IRA you rolled over from your former employer’s 401(k), as well as your new employer’s 401(k) account.\n**Should I close out my current 401(k) before opening a new one?**\n------------------------------------------------------------------\nNo. The last thing you want to do is have your 401(k) funds turned over directly to you.\nEven if you immediately use the funds to open your new retirement account, the fact that you touched the money means the IRS will require the withholding of 20 percent of the funds. In order to get those funds back, you must file accordingly at tax time and wait for the funds with your return. You then have 60 days to return he funds to your new account, otherwise you will be taxed on it.\nYou’ll also be charged a 10 percent penalty fee for early distribution of the funds (unless you are at least 59 1\/2 years old).\n**What steps should I take to roll over my 401(k)?**\n----------------------------------------------------\nBefore initiating changes to your 401(k) account:\n* Make sure you know the details of your current 401(k), including how much is in the account, how much you have contributed, how much your employer has contributed, how much the fund has grown, and fees associated with the account.\n* Decide which type of retirement account you want to roll over to. Again, you may roll over to your new employer’s 401(K), but an IRA is likely your best bet. Then it’s a matter of deciding between a traditional or Roth IRA.\n* If you decide to go with an IRA, shop around for the best fees and investment options.\n* Before closing out your old account, set up the new one first. Plan on scheduling a phone call with the custodian of your new account so they can walk you through the set-up process and smooth transfer of the funds.\nLearn more about IRA’s. END

TITLE: Information on Rolling Over a 401K Account CONTENT: | | | | \n: . END

TITLE: How to Save 500 Dollars In Time For Christmas CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nWould you like to build up your holiday gift budget in just a few short months? Would an extra $500 or more in your pocket in December make a big difference to your Christmas shopping? By making a few adjustments to your budget now, you could save enough money to be able to buy the things you want for your family and friends.\nThe following tips are easy ways to save money, and cut expenditure from your daily budget. Start off by opening a separate savings account and deposit $50 into it right away. This account will only be used for your Christmas fund. Then, by following these tips, you will quickly be able to save at least $500 before Christmas.\nEliminate One Meal Out Each Week\n--------------------------------\nMany people purchase their lunch every day at work. This cost ranges from $5 to $6 per day, or between $25 and $30 per week. Cutting back to just **one** restaurant lunch per week can save you up to $260 in a year.\nReduce Your TV Service for Two Months\n-------------------------------------\nIf you reduce your cable package by $25 a month or cut out a premium channel or two, that might save another $25 to $50 a month. You could save even more if you get rid of cable all together! What's so wrong with watching just the local channels.\n### Coffee\nThe daily coffee can be quite an expense, especially if you have two or three cups a day from the local Starbucks. Try limiting yourself to one cup a day as a treat, or even not buying a coffee every single day. If you can save just $2.50 per day on coffee, you will save $10 a week. If this is a sacrifice you could commit to for a short time, it could make a real difference to your Christmas this year.\n### Groceries\nWhen budgeting for groceries, you can work out how much you are generally spending per meal by dividing the total cost of your normal weekly grocery shop by the number of meals for your family in the week. If you currently spend $10 per meal on average, try reducing this to $8 per meal.\nYou may try a cheaper cut of meat, or limit the amount of extras you purchase at the grocery store. Try not to shop when you are hungry because you tend to put more in your shopping cart at those times. If you can just save $2 per main meal, you could save about $14 a week.\n### Entertainment at Home Instead of Going Out\nInstead of eating out or going out to the movies, try to find cheaper entertainment options for the next couple of months. There are usually free activities in every council area every month. Find out what they are and have fun free.\nGoing to a museum can be a cheap day out for the whole family, rather than paying for movie tickets. If you do go to the movies, try to go on the cheaper day or use a movie deal voucher. Avoid the expensive food in the movie snack bar and bring in your own snacks from home.\nIf you would normally spend $100 on entertainment in a month, reduce it to $75 or $50. The more you save, the better your December will be!\n### Savings Add Up\nBy making some simple changes to your budget NOW, you can plan to have a terrific Christmas. There are plenty of other ways to save money. Just look at what you are currently spending on any one item and try to reduce it by a few dollars each week. Those dollars add up quickly.\nUsing the examples above, a family could save $25 a week on work lunches (and $50 if both parents work) by cutting $5 a day from their lunch budget. This will put between $250 and $500 into your Christmas account, if you can make the savings for 10 weeks in a row.\nSaving $10 a week on coffee is another $100, and cutting the grocery bill by $14 per week is another $140. Families can save $100 on fuel between now and Christmas and could save another $100 or so on entertainment. Adding these savings together, an average family could save about $690 between now and Christmas. This will make your Christmas a very merry one indeed. END

TITLE: Limits for Retirement Savings Plans CONTENT: Retirement Savings Plan Limits: Using 401(k) and IRA Savings Plans\n------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nLooking into retirement savings plans can leave your head swimming in numbers. Don’t let that distract from the all-important task at hand — determining your investment eligibility and contribution limits. Here’s to breaking it down.\n**401(k) — Employer Sponsored Retirement Account**\n--------------------------------------------------\n### **How Much Can I Contribute to My 401(k)?**\nYou can contribute up to $18,000 per year to your 401(k). Unless you are at least 50 years old, in which case you can contribute an additional $6,000 “catch up” amount, for a total up to $24,000 per year.\n**IRA — Individual Retirement Account**\n---------------------------------------\n### **How Much Can I Contribute to an IRA?**\nYou can contribute up to $5,500 annually to your traditional IRA. Unless you are at least 50 years old, in which case you can contribute an additional $1,000 per year, for a total up to $6,500 per year.\n### **How Many Times Per Year Can I Roll Over my IRA?**\nYou can roll over your IRA every 12 months. An additional roll over before a year has passed could result in income tax due on the rolled over amount, as well as an early withdrawal penalty and an excess contributions tax.\n### **Under What Circumstances am I Eligible for the Saver’s Credit?**\nThe AGI (adjusted gross income) maximum to qualify for the Saver’s Credit in 2016:\n* $30,750 for singles and married individuals filing separately\n* $46,120 for heads of household\n* $61,500 for married couples\n**ROTH IRA**\n------------\n### **What Are the Contribution Limits for a Roth IRA?**\nIf you file as an individual (single or head of household), you can contribute:\n* The maximum allowable amount ($5,500; $6,500 if you are at least 50 years old) if your adjusted gross income is less than $116,000 per year.\n* A reduced amount if your adjusted gross income is $116,000 to $131,000 per year.\n* Nothing if your adjusted gross income is more than $131,000 per year.\nIf you file as a married couple, you can contribute:\n* The maximum amount if your combined adjusted gross income is less than $183,000 per year.\n* A reduced amount if your combined adjusted gross income is $183,000 to $193,000 per year.\n* Nothing if your combined adjusted gross income is more than $193,000 per year.\nWhat is the difference between a traditional and Roth IRA?\n**MyRA**\n--------\n### **Under What Circumstances am I Eligible for a MyRA Account?**\nIf you file as an individual (single or head of household), you may contribute to a MyRA account if you have an adjusted gross income of less than $129,000 per year.\nIf you file as a married couple, you may contribute to a MyRA account if you have a combined adjusted gross income of less than $191,000 per year.\n### **How Much do I Need to Open a MyRA Account?**\nYou can start a myRA account with an initial deposit of as little as $25.\n### **What is the Minimum I Must Contribute to a MyRA Account on a Regular Basis?**\nYou may contribute as little as $5 per payroll deduction.\n### **How Long Can I Contribute to a MyRA Account?**\nYou may contribute up to 30 years or $15,000, whichever comes first.\nWhat is MyRA, and is it right for me? END

TITLE: 401(k) Investing For a New Employee CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nCongratulations on landing that new job. Before you begin celebrating, you still have some work to do before your first official day on the job. It is important to review your employer's benefits package so you can decide on the health insurance plan that's right for you among other things like: Should you add life insurance? What is a flexible spending account and should you elect to have it? And, finally, the scariest part, creating your 401(k) account.\nHow Do You Put Together a 401(k) Account?\n-----------------------------------------\nWhen you are considering how to go about putting your 401(k) account together, all of the investment data can be mind boggling when trying to figure out where to put your money. In the old days, employees were left to do their own research before investing, which sometimes discouraged people from starting up their retirement accounts. Lucky for you, most companies are adopting all sorts of options aimed at simplifying your experience.\nMost folks entering the work force for the first time are in their twenties and the thought of saving for retirement is about as exciting as watching paint dry, but it is something that should be taken seriously. It doesn't really matter how old you are, once you start saving, you've started on the right track towards a better retirement. Even if you're in your forties and have never had a savings or retirement account, you can still do this. It's never too late to begin saving.\nSome people believe they'll have to work the rest of their lives so what's the point in saving? The truth is you never know what life will throw your way. It's fun to say you like to live life on the edge but in reality, do you? Taking the time to get your future financial house in order will be well worth it. Heck, even if you do work your entire life, wouldn't it be great to receive a \"bonus\" check every month from your 401(k) account while you are in your golden years?\nWhy Should You Save Money in a 401(k) Account?\n----------------------------------------------\nIf you need some more convincing as to why you should start a 401(k) account, hopefully the following facts will entice you a bit. Contributing to your 401(k) lessens the taxes you pay annually. Let's do the math.\nLet's say you live in Wisconsin, are single and earn $26,000 per year with bi-weekly paychecks. The taxes taken out of your paycheck are set at: Federal (15%), state (% varies by state), FICA (4.2%), and Medicare (1.45%). Broken down, you earn $1,000 per paycheck minus taxes: Federal = $150, state (6.5%) = $65, FICA = $42 and Medicare = $14.50 for a total of $271.50.\nWhen you contribute 3 percent to your 401(k) (which equates to $30\/paycheck), your Federal tax is reduced to $144.50, state to $58.20, FICA to $41.74 and Medicare to $14.06 for a total of $258.50 in taxes. **You've saved $16.50.** Over a year's time, you would save $429 in taxes because you invested in your retirement. Your retirement account would have $360 in it not counting change in value or interest and dividends you've earned.\nAlso, by electing to participate in your company's Before-Tax Employee Insurance Benefits and Health Care or Dependent Day Care Reimbursement deductions, you save even more in taxes every year.\nThere is also the matter of compounding your earnings. If you were to continue contributing 3 percent over the lifetime of your career, your nest egg is on the fast track for growth with little effort on your part. If you always contributed 3 percent and your employer matches 100 percent of your contributions, you get decent annual increases, say 4 percent, and your annual rate of return averages 5 percent, after 30 years, you would have contributed $43,000 to your account, but your account would be worth $180,000.\nHow to Set Up a 401(k) Account\n------------------------------\nWhen you're ready to dive in and get your account set up, we've listed a few options below that could make your experience relatively quick and easy. Like most people, you may not like the thought of tracking and\/or managing your 401(k) account. Fortunately, there are options to take care of all this, too! Below are three options that can help make your experience a good one.\n1. **Automatic Enrollment —** Some companies automatically enroll new employees in their 401(k) plans. Typically, they elect to defer 1 or 2 percent of your salary into your 401(k). Your contributions are \"pre-tax\" and are invested into a default fund. The default fund is normally low-risk, like a money market fund. The investment return on money market funds is pretty low, but it's a pretty safe bet and is going towards your retirement. If the company offers a match to your contribution, you'll also get a free chunk of cash contributed to your account by your employer without having to lift a finger. You can always change your deferral percentage or redirect your contributions to other funds at any time if you wish.\n2. **Automated 401(k) Investment Management —** Some companies offer the opportunity to turn control of your 401(k) investing over to an automated management system. This takes a little bit of effort up front as you will need to fill out a (sometimes lengthy) questionnaire to identify the sort of investor you are. Based on the information you provide, the system will understand how to invest your money.\n How does the system figure out what's right for you? Well, it first determines if you are an aggressive, moderate or conservative investor. From there it determines how to diversify your investments. The multitude of investment options (funds) available to you are grouped by asset class. Asset classes are a way to categorize funds. Some of these are: large-, mid- and small-cap funds, guaranteed, balanced and bond funds among others. The system selects the appropriate funds within some or all of these classes and distributes your 401(k) contributions between them.\n On a periodic basis (usually quarterly), your fund performance is evaluated and your account may be rebalanced to keep you on track with your investment goals. This means that on your behalf, the system may redistribute your money between various funds, in your best interest, of course. This management service comes with a price. Typically the fee is based on your account balance. Be sure you weigh in the cost when making your decision whether to opt for the service.\n3. **Target Date Funds —** If you really have no idea what to do with the flood of investment information that's available and just want to invest your money somewhere decent and forget about it, you're in luck! You may want to consider target date funds.\n Target date funds are the 'set it and forget it' funds that investors can choose based on their retirement year. For example, the target date investment options for investors in their twenties tend to be more aggressive. As these individuals move closer to retirement, the investment options adjust within the fund, becoming more conservative as they approach retirement.\n It's easy to choose which target date fund is right for you as the retirement year is included in the name of the fund. Someone in their thirties would probably select a fund that contains 2030 or 2035 in the name. If you are in your forties, choose funds containing 2020 or 2025 in the name. You can actually pick any target date fund, meaning you're not restricted to picking a fund associated with your retirement year. If you're a typical investor however, you'll want to stick with the funds geared towards your age group.\nHowever you choose to get your retirement account going, the most important thing is to get it going. Good luck and happy investing. END

TITLE: 401(k) Investing For a New Employee CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Estimate Your Fuel Costs and Save Money CONTENT: Trade a Gas-Guzzler for One With Better Fuel Economy — Will You Save Money?\n---------------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated:  July 13, 2010_\nIt's the million dollar question many of us are facing with gas costs prices hovering around $3 to $4 a gallon — will trading in my gas guzzler save me money in the long run?\nTake me for example - I drive a 3\/4 ton Chevy Silverado with a towing package and it is my only vehicle and did I mention it gets 12 mpg.  Ouch.  And, given my lifestyle includes a wide array of outdoor activities requiring a truck, it is not an option for me to not own some type of pick up truck. Does it make sense for me to buy a fuel efficient car and sell my truck, simply park my 10 year old truck aside for monthly camping or hauling trips and invest in a second fuel-efficient car, or does it make more economic sense to continue as a \"one truck\" family?\nFor many of our readers, their situation is fairly similar. I paid cash for my truck initially, so I do not have to account for depreciation or money owed on it, so some of you may have a slightly different scenario. If you've purchased your SUV or truck in the past several years and have a outstanding loan balance, it is likely you owe more than the vehicle is worth, considering the high depreciation that comes with the first few years of ownership, combined with the fact that these gas guzzling vehicles are just not in demand right now. In fact, according to a recent article in the Wall Street Journal, a 3 year old large SUV today is worth about $2,000 to $3,000 less at trade-in than a three-year-old large SUV would have been, before gas prices began to soar. A three-year old Chevy Tahoe that might have fetched $19,700, may only be worth $16,400 at trade-in. This equates to an additional loss of approximately 16 percent, on top of \"typical\" depreciation.\n### Where Do You Start This Analysis?\nAfter reading a lot of articles on the internet, I think the most helpful and easiest strategy to understand is to use a concept called \"True Cost to Own,\" or TCO. This is all of the ownership and operation costs for a given vehicle for five years, including depreciation, financing, insurance, taxes and fees, fuel, maintenance and repairs. We found several automobile websites that used this or similar analysis tools to help consumers compare these costs for different vehicles, circumstances, etc. These sites include Kelley Blue Book, Consumer Reports, and Edmunds. You can define your situation and needs and using these or other online tools, and make some useful comparisons.\nFirst, let's define each of the variables that need to be considered in calculating the cost of ownership of any given vehicle:\n* **Depreciation -** Depreciation is the decline in a car's value over the course of its useful life. The standard rule of thumb for used cars is that they lose approximately 15 percent to 20 percent of their value each year. This is the largest ownership cost and according to Consumer Reports, a typical new vehicle depreciates about 65 percent over five years.\n* **Fuel Costs -** No need to stress the fact that these have become extremely significant; and are probably the second largest cost for an average driver. Calculations will vary based on the annual mileage traveled, typical assumptions are 12 to 15 thousand miles per year.\n* **Interest -** Interest accounts for about 12 percent of five-year ownership costs. It is typically calculated based on a five-year loan, with a 15 percent down payment, because that is how many people buy cars.\n* **Insurance:**Insurance costs vary depending on many factors, including your age, location, and driving record. And they can dramatically boost the ownership costs of models that otherwise would seem affordable.\n* **Maintenance -** Maintenance and repair costs make up 4 percent of ownership costs over (the first) five years on average, according to data from Consumer Reports.\n* **Sales Tax and other fees -** Sales tax costs owners an average of 4.83 percent.\n### What is Next?\nIf you want to compare the cost to own of any vehicle,  the website tools we listed above are easy to use and you just have to input your specific information such as the zip code you drive\/live in, and the statistics about your existing (or desired) vehicle. You will be provided a \"TCO\" figure, an estimate of all of the ownership and operation costs for five years. Additionally, a \"cost to own\" detail giving a breakdown of how the car's expenses change over the five-year period. With these tools, you can compare similar vehicles or a new versus used vehicle. Surprisingly, you may find that the purchase cost of a particular car appears to be a bargain, while the ensuing costs make it prohibitive for your budget.\nEdmunds also gives a nice comparison statistic in it's \"cost per mile\" to drive value. For example, it may be common knowledge that a Honda Civic is a good value for the money. With TCO, you can confirm this: The cost per mile is about 28 cents (I presume this is for a newer model), one of the lowest of any vehicle.\nWell, I'm still trying to decide whether it's beneficial to replace my old truck. There is not a \"canned\" program out there that is going to clarify this for me easily. Seems maybe I'll just have to do old fashioned math with my own assumptions to figure this out. I think I'll use the Honda Civic as my proposed replacement\/second car.\nSo for a used Honda Civic in my zip code (I chose a used 2003, did not specify a model) the TCO was 38 cents a mile and $28,182 for the next 5 years. If I don't finance, or my mileage is different than the 15,000 a year they estimate, I can modify the numbers accordingly (manually, just remove financing costs completely and increase or decrease gas costs accordingly). Also, if you don't buy from a dealer, you can reduce your sales tax as well.\nSo, the TCO for continuing to use my 1999 Chevy Silverado the next 5 years that has $140,000 miles on it is as follows. I'm going to have to use actual figures or manually calculate as the sites I've found don't look back that far:\n* **Depreciation:**  Not sure it's worth much of anything now, but according to KBB used car tool it's value is approximately $6500. So, 10 percent a year for the next 5 years averages out to about $600\/year.\n* **Fuel Costs:** 15,000 miles per year at 12 mpg and gas I'm going to use $4\/gallon (I'm not sure the websites have factored in recent jumps into their algorithms yet) thus $5000\/year for fuel.\n* **Interest:**  Zero, the car is paid off.\n* **Insurance:**  Pretty low, older vehicle, good driving record, I'll estimate an average of $600 a year based on what I now pay.\n* **Maintenance:**  This is probably not going to be good. I could not find anyone giving estimates on a vehicle this old, so I'll use my records from the last several years on this and say $1500\/year.\n* **Taxes and other fees:**  Vehicle license tax and emissions fees are approximately $75\/year average for my older vehicle.\n### Conclusion\nHow did I come out? Estimated TCO for my paid off gas guzzler is **$38,875 or 52 cents a mile.**  At the end of the 5 years, I don't think there is any value left on the vehicle, either. Yikes, the Honda Civic estimate gave me **38 cents a mile and $28,182, a difference of close to 30 percent**, not to mention it is still estimated to be worth about $5,000 after driving it 5 more years.\nNow my analysis is unique, remember, I used a highly rated economy car to compare, and my truck gets the worst mileage possible I think. If you have an earlier model SUV particularly if you are in the first several years of the depreciation curve, the figures may look completely different. The purpose of the article is simply to point out the variables that you need to consider when evaluating your own specific situation, and to share links to sites that can provide easy calculating tools and information to help you. Good luck!\nSo what to do? I've some ideas. RENT a truck when you need it. Hey, how about a joint venture with multiple families where you cost-share in a truck? Maybe find a boyfriend\/girlfriend who owns a truck? Might be tricky, but just some thoughts... Clearly, there needs to be some answers especially with single and 1-car families that must make a choice between economy and need.\nFor information from the FTC regarding Facts for consumers when buying and researching a used car, click here. END

TITLE: Estimate Your Fuel Costs and Save Money CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: What to Do if Your Pension Plan is Terminated CONTENT: What Happens When Your Pension Plan Terminates?\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 14, 2015_\nPension plans are set up to provide people with income when they are no longer earning a regular income from employment. There are three main types of pensions plans; Employment-Based Pensions (Retirement Plans), Social and State Pensions, and Disability Pensions. In the normal course of events, most pension plans meet their objectives and pay out benefits as envisaged. However there are some situations when pension plans are terminated by either the employer or the Pension Benefits Guarantee Corporation (PBGC).\nContributions made by an employee to a pension plan are automatically vested. In contrast, employer contributions are usually subject to a period of partial or full vesting. When a pension plan terminates, all participants are automatically considered fully vested irrespective of what their vesting status was prior to termination.\nIn the majority of cases, the rules of an individual pension plan determine how employees receive benefits. Refer to the Summary Plan Description provided during enrollment for details. Federal laws relating to employee benefits also affect such distributions. The PBGC normally insures defined benefit contribution plans. Termination benefits also depend on whether the pension plan is fully funded or under funded.\nTermination of a Funded Pension Plan\n------------------------------------\nIn a **standard termination**, an employer decides to terminate a plan that is fully funded. If the plan is a defined benefits plan, the employer provides proof to the PBGC that there are sufficient assets to provide the benefits promised. The plan administrator purchases an annuity from an insurance company or provides a lump sum payment, if allowed, to provide the agreed benefits. Any guaranty provided to the plan by the PBGC ends at this stage.\nIn a standard termination, the plan administrator is required to send a _Notice of Termination_ to each participant at least 60 days before the termination. This is followed up with a _Notice of Plan Benefits_ no later than 6 months after the proposed date of termination providing pay out details.\nIf the pension plan is a defined contribution plan, the plan fiduciaries and trustee are responsible for the distribution of assets. The PBGC does not guarantee benefits for defined contribution plans.\nTermination of an Under Funded Pension Plan\n-------------------------------------------\nA defined benefits plan can also be terminated due to employer distress such as bankruptcy. In a **distress termination**, the employer has to satisfy either a bankruptcy court or the PBGC that it cannot continue in business unless the plan is ended. The PBGC may also decide to terminate a defined benefit plan to protect employees and to safeguard its guarantees due to under funding.\nIn both the above situations, the PBGC takes over as the trustee of the plan. It informs the plan administrator and also publishes a notice in the newspapers to this effect. The participants thereafter receive a general letter from PBGC detailing insurance program and guarantees. A more specific notice is issued once PBGC completes its review of plan assets and funding requirements.\nThe benefits due to each employee are based on plan assets and funds guaranteed by the PBGC for this purpose. The PBGC guarantees benefits to participants at normal as well as most early retirement stages. Plan survivors continue to receive annuity benefits. Participants who claimed disability benefits before the plan terminated are also honored.\nThe PBGC does not guarantee a monthly pension that is greater than what a participant was originally promised. The Employee Retirement Income Security Act sets limits on the maximum benefits that the PBGC can guarantee for each year based on a participant's and beneficiary's age on the plan termination date. If not currently receiving benefits, the relevant date will be when a participant is eligible to claim benefits.\nThere have been situations when employers abandon individual account plans such as 401(k) plans without appointing a fiduciary to manage them. To ease employee uncertainty and worry in such cases, the Department of Labor has issued rules to create a voluntary process of plan termination. The plan custodian then handles the distribution of assets and winding up of the plan.\n### Mergers\nPension plans can also terminate when the employer is subject to a merger or acquisition or if a division of a company closes down. The plan may merge with another or continue to operate under the former employer. When a pension plan is merged with another, the accrued benefits for participants in a defined benefit plan cannot be reduced. They are entitled to the benefits accrued in the earlier plan. For defined contribution plans, the value of benefits may be more or less depending on the performance of merged assets.\n### Participant Responsibilities and Compliance\nIrrespective of the situation under which a plan terminates, it is in the interest of the participant to comply with all requests for information by the plan administrator or the PBGC.\n* Maintain a file with all relevant plan information.\n* Inform the benefits administrator of any address or beneficiary changes.\n* If the former employer is still responsible for plan administration following a merger, stay tuned to what other changes are contemplated.\nContact the plan administrator or the Department of Labor at 1.866.444.3272 for questions relating to your pension plan. To read more about the Pension Benefits Guarantee Corporation, visit their website: PBGC.gov. END

TITLE: Facts on a 60 Day IRA Rollover Loan CONTENT: 5 Things You Need to Know About 60-Day IRA Rollover Loans\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: May 24, 2018_\n_Written by: Rick Pendykoski_\nIf you’ve been saving retirement money in an IRA, you really shouldn’t be looking at this account as a source of emergency funds. Between the tax bill and penalties for early withdrawal, it’s best to just leave your IRA savings alone until retirement.\nIn times of dire need, you can use the 60-day rollover option to borrow against your IRA. Before you jump in, however, it’s important to carefully understand the IRA rollover rules and have a repayment plan in place. If you fail to follow the correct steps, you might end up losing a significant amount of money!\n**How Does a 60-Day IRA Rollover Work?**\n----------------------------------------\nA 60-day rollover allows you to make IRA withdrawals without penalty, and use the funds as a loan for 59 days. You will not be charged taxes or penalties as long as you repay the funds within 60 days, into the same account from which you made the withdrawal or another IRA.\nA certain amount may be withheld as income tax, which will be refunded after you file your returns. However, you will need to pay this amount out of your own pocket when you repay the loan, otherwise it will be treated as taxable income.\nLet's take for example — If you make a withdrawal of $50,000 and are charged $10,000 as income tax, the amount you receive will be $40,000. The $10,000 will be refunded at tax time, but you need to repay the full amount of $50,000 within 60 days. If you don’t, the IRS will treat the withheld amount as an early distribution and levy penalties and taxes on it.\nWhat Are the 5 IRA Rollover Rules to Remember?\n----------------------------------------------\nHere are 5 things you need to keep in mind before borrowing from IRA savings:\n**1\\. Reporting Rollovers while Filing Taxes** — Despite being tax-free, a 60-day IRA rollover needs to be reported as a nontaxable IRA distribution using a Form 1040 or Form 1040A. Fill in ‘0’ as the taxable amount if you repaid the entire withdrawal within 60 days, and write ‘rollover’ next to it.\n**2\\. Rollovers Aren’t Revolving Loans** — After a rollover, you cannot take another tax-free withdrawal through the account from which you took the 60-day loan or any other IRA, for a period of 12 months. The only exception is when you convert a traditional IRA to a Roth IRA.\n**3\\. You CANNOT Go Over 60 Days** — There are no extensions given for a 60-day IRA loan for any reason at all, even if the last day falls on a weekend or national holiday. To avoid taxes and penalties, make sure you don’t lose track of time and make the repayment as early as possible.\n**4\\. Watch Your Annual Contributions** — Along with keeping track of repayment deadlines, you also need to check your IRA contributions before performing a rollover. If your 60-day rollover causes you to exceed the annual IRA contribution limits, you will pay a penalty for excess contributions.\n**5\\. Rollover Errors Will Cost You** — Be very careful with a 60-day IRA rollover to avoid being hit with extra taxes and penalties. Mistakes such as accidentally requesting a second rollover within 12 months of the first or rolling over more than the annual contribution limit, cannot be corrected or reversed.\nProceed with caution when you’re considering a 60-day loan from your IRA, and arm yourself with knowledge about the rules and restrictions involved. To keep your withdrawal from being treated as a taxable distribution, make sure you can repay it within 60 days before applying for a rollover!\n* * *\n**Author Bio:**\nRick Pendykoski is the owner of Self Directed Retirement Plans LLC, a retirement planning firm based in Goodyear, AZ. He has over three decades of experience working with investments and retirement planning, and over the last 10 years has turned his focus to self-directed accounts and alternative investments. Rick regularly posts helpful tips and articles on his blog at SD Retirement as well as Business.com, SAP, MoneyForLunch, Biggerpocket, SocialMediaToday and NuWireInvestor. If you need help and guidance with traditional or alternative investments, email rick(at)sdretirementplans.com. END

TITLE: Teach Money Value to Your Children CONTENT: Teaching Your Kids How to Save and Spend Money Wisely\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nIt is never too early to teach your kids about money. Instilling good habits regarding spending and saving should start as early as possible. An online study conducted by mint.com, showed that over half the respondents claimed they earned money while in or before elementary school. And, most of the respondents claimed they did not feel prepared to manage their money after high school and one in three ran into early credit card problems.\nBy the time your kids are teenagers, they will most likely have a rather large list of perceived needs ranging from iPhones to the latest fashion. Particularly if you as parents indulge yourselves regularly in the latest of electronic gadgets and luxury items, your teen is witness to your spending habits and will likely assume that these things are essential as well. Observation and repetition are two important ways children learn: if they see that you stick to a budget and spend money wisely, they are much more likely to adapt the same skills and attitude. To help give your children a responsible start in the financial arena, here are some tips for instilling saving-savvy life skills in your child:\n1. **As soon as children can count, introduce them to money.**  Share with them regularly what the cost of items are: at the grocery store, happy meals at McDonalds, etc. Make comparisons such as \"if we wash our own car today instead of paying the carwash, we save $10; we can buy three happy meals with that!\" They will be able to relate to the savings and how this choice benefits them.\n2. **When giving children an allowance, give them the money in denominations that encourage saving.** For instance, give them five $1 bills instead of a $5 bill, and suggest that at least one dollar be set aside in savings.\n3. **Give them the tools to save.**  Initially, a simple piggy bank will do the trick. When they are old enough, open an account for them at your local bank; many banks offer incentives for kids to save, such as free monthly stickers, toys and treasures, etc.\n4. **Help children learn the differences between needs, wants, and wishes.**  Use examples they can relate to; look around the house and discuss your family's choices and the things that you could live without. This will assist them in making wiser spending decisions in the future.\n5. **Combine the value of instilling good work habits with financial ones.**  Give them extra money for specific household or work-related chores. These should be separate from the items that they are required to do as contributors for the household or their individual chores.\n6. **Help your children set saving goals.**  Write them down; people rarely reach goals they haven't set in writing. Start with toys when they are young and create a plan on how to finance the purchase. Such goal-setting helps children learn to become responsible for themselves.\n7. **Take the opportunity to teach children about how credit cards work.**  Explain to your child how to verify the charges, how to calculate a fair tip, and how to guard against credit card fraud.\n8. **Encourage saving for college.**  If your teenager is already earning money from summer jobs or part-time work, you can have them save a portion of their paycheck for their college tuition. Having contributed something towards their college education will give them a sense of pride.\n9. **Allow young people to make spending decisions.**  Test the adage of \"live and learn\" at an age when the learning is perhaps less expensive when their spending choices are less than desirable. Contingent on their choices, initiate discussion of spending pros and cons prior to the next spending spree. Show them through example the benefits of doing research before making major purchases, waiting for the right time to buy (during sales) and the use of coupons.\n10. **Warn children about product marketing and advertising tricks.**  We are deluged with commercial messages about cool toys and fad products; will a product really perform and do what the commercials say? Is this really a good deal or is it too good to be true? Share the value of your vast experience with them.\n11. **Teach them to share with others.**  An important part of teaching kids to be financially and socially responsible includes showing awareness they have a responsibility to other less fortunate people outside themselves and their family. Show them this through example by giving and volunteering to charity as a family.\nThese practices, when started while the kids are young, will help them grow into teens and young adults who know the value of hard-earned money. Remember that a solid education in money matters taught through example is one of the best tools you can give your kids, as it will aid them the rest of their lives. END

TITLE: Teach Money Value to Your Children CONTENT: | | | | \n: . END

TITLE: What to Know About Investing In Stocks CONTENT: How to Invest in Stocks — The Basics\n------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nFortunes can be made or lost investing in the stock market. Investing in stocks in one of the best ways to create financial security and generate wealth. Whether you are beginning to save or already have a nest egg for retirement, your money should be working for you. Buying and selling stocks is one way to increase your wealth, but you need a solid understanding of how the stock market works and how to invest wisely. This article covers only the tip of the iceberg, but it should give you a general idea of using stocks as an investment tool.\nTo put it simply, a stock is a share in the ownership of a public company. Stocks represent a claim on a company's assets and earnings. When you buy a stock, you are in essence buying ownership in a company and these stocks are called \"equities.\"\nWhy Would a Company Issue Stock or Shares of their Company?\n-----------------------------------------------------------\nStocks are sold by the original owners of a company to acquire additional funds to help the company grow. This is called the Initial Public Offering (IPO) and the owners are basically selling control of their company to the stockholders. After the IPO, the shares are then resold on the stock market.\nWhat Determines the Price or Cost of a Certain Stock?\n-----------------------------------------------------\nStock prices are driven by the expectations of a corporations earnings, or profits. If traders think a company has high earnings or maybe their earnings will increase in the future, they bid up the price of the stock. So, if you buy a stock at $2 and say this company has a record year in earnings and now their stock is selling for $10, you can sell you stock and make a nice profit. But beware, the opposite can happen, too, and you will lose money.\nHow Do Stockholders Make or Lose Money?\n---------------------------------------\nA stockholder will make money on a stock as indicated above, buy the share at a low price and sell it later at a higher price. Another way stockholders can make money on a stock is through dividends. A dividend is a quarterly payment distributed to the stockholders based on the profits made by the company. The company's board of directors pays dividends out of earnings as a way to reward the stockholders for their investment.\nOn the flip side, a stockholder can lose money if they bought a stock at certain price and now that stock is selling for a price lower and they sell the stock at this lower price. A stock price will go down if a company is not doing well financially or maybe the products\/services offered by this company are no longer needed and this company has fallen out of \"favor\" by the public.\nTypes of Stocks\n---------------\nThere are two types of stocks; common stocks and preferred stocks. The stocks you see tracked by the Dow Jones or S&P 500 are common stocks. The value of these stocks depend on how they are traded at any given time.\nPreferred stocks can be issued by a corporation and these have the properties of both common stocks and bonds. Their values rise and fall along with the company's common stock prices, but they are like bonds in that they always make a fixed payment. It is for this reason most preferred stockholders do not sell their shares.\nWhat Kind of Investor Will Use Stocks in Their Portfolio?\n---------------------------------------------------------\nIn a recent article published by Forbes, 43 percent of Millenials identify themselves as conservative investors, whereas 27 percent of Gen-Xers and 31 percent of Boomers do. Also, 43 percent of Millenials said they would never be comfortable investing in the stock market. It seems that Millenials are more likely than any other generation to be \"risk-adverse\" and keep 52 percent of their savings in cash. So, the older the investor, the more likely that person is to invest in stocks.\nTerms to Be Familiar With Before You Start Investing in Stocks\n--------------------------------------------------------------\nBefore you jump into the world of stock buying and selling, you need to become familiar with some commonly used terminology.\nNYSE, SEC, NASDAQ — These are stock exchanges and act as a clearinghouse of sorts for buying and selling stocks. Each exchange buys and sells certain stocks and each one plays a major role in our global economy.\nStockbroker — A stockbroker is a regulated professional who is usually associated with a brokerage firm, who buys and sells stocks for clients. In return for his\/her services, a stockbroker is paid a fee or commission. In the U.S., a stockbroker must pass both a Series 7 and either a Series 63 or 66 exams in order to be properly licensed.\nCommissions — Before you open up an investment account, you need to consider the costs you will incur from buying and selling stocks. There are a lot of investment companies out there so do your homework and find out all their costs associated with trading stock. You will be paying a commission to the firm or stockbroker when you buy and sell stocks.\nDiversify — Diversification means investing in a wide range of assets so you reduce the risk of losing all of your money based on one company's performance. To coin an old adage; \"Don't put all of your eggs in one basket.\" Buy stock in different companies that offer totally different products. For example, maybe buy stock in Apple and then buy stock in a Utility company. Completely different products with completely different markets.  \nAre Stocks a Good Thing to Have in Your Investment Portfolio?\n-------------------------------------------------------------\nAs we stated before, diversity is a good thing when it comes to investing and having different types of investment tools in your portfolio. The best advice we can give it to talk to a financial professional before you risk a lot of money in any one investment. And, always do your homework and be an educated and informed investor — don't leave it all up to others since it is YOUR money they are dealing with. END

TITLE: Using Certificates of Deposit as an Investment Option CONTENT: 17 Things to Know About Certificates of Deposit (CD's)\n------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 19, 2017_\nThough certificates of deposit are among the most basic of investment options, that’s not to say they should be entered into blindly. As with any place you plan to put your hard-earned money, the more you know about CDs, the better. Here’s a good place to start.\n**1)**  **What is a certificate of deposit (CD)?**\n--------------------------------------------------\nA CD is a certificate you receive from a bank or credit union in exchange for an interest-earning deposit you’ve made with them – and agreed to keep there – for a specified period of time.\n**2)**  **What are CD terms?**\n------------------------------\nA CD term is the amount of time you agree to keep your deposit account open. These terms vary, from as little as 1 month up to 20 years. The availability of terms depends on the institution from which you choose to open your CD account. The most common terms are 6 months to 5 years.\n**3)**  **Which is the best CD term to choose?**\n------------------------------------------------\nIt varies according to circumstance.\nFor instance, you typically see higher interest rates on longer term CDs. However, you’re probably better served choosing a shorter term (i.e., one with lower interest rates) if you know you may need to access the cash sooner than later.\nThat said, even if you know you won’t need the money for years to come, signing on to a shorter term CD may be more lucrative in the long run.\nFor instance, interest rates may rise while your money is tied up in a fixed-rate CD. The shorter the term, the sooner you can cash out that CD and open a new one at the higher interest rate.\n**4)**  **Are there different types of CD options?**\n----------------------------------------------------\nYes. There are several types of CD options to choose from, like:\n* Traditional, fixed-rate CDs\n* Variable-rate CDs\n* CDs with low or no penalty for early withdrawal (but at lower interest rate)\n* Callable CDs, the terms of which the bank can change at any time (but at higher interest rate)\n* Bump-up CDs allowing you to “bump up” to a higher rate once per term (but at lower initial interest rate)\n* Indexed or structured CDs, which are linked to other types of investments\n**5)**  **Can I take my money out of a CD before the term ends?**\n-----------------------------------------------------------------\nYes, you can, but for a price. You’ll pay a penalty for early withdrawal and, in some cases, you may even lose part of your initial deposit.\n**6)**  **Are CDs federally insured?**\n--------------------------------------\nYes. CDs issued by a bank are FDIC-insured; CDs issued by a credit union are NCUA-insured.\n**7)**  **Why would I choose a CD over other types of investments?**\n--------------------------------------------------------------------\nCDs are low-risk investments that allow you to earn more than you normally would through a regular savings account.\n**8)**  **Why should I think twice about putting my money into CDs?**\n---------------------------------------------------------------------\nCDs are low-_return_ investments that may barely earn enough to keep up with inflation.\n**9)**  **What is a CD ladder?**\n--------------------------------\nBuilding a CD ladder means investing in a number of CDs with varied term lengths, ranging from 1 to 5 years, for example. This way you can take advantage of higher interest on a 5-year-term CD while spreading the rest of your investment over shorter terms. In this way, you always have money coming available to you, either for cashing out or reinvesting into a longer-term CD.\n**10)**  **How do I open a CD account?**\n----------------------------------------\nYou may go through your current bank or credit union, but it’s a good idea to shop around, compare rates, and read the fine print. Be sure to include local banks and online banks in the mix. You may also go through a “deposit broker,” but they will still be opening the CD account with a financial institution.\n**11)**  **Is it a good idea to open a CD account through a deposit broker?**\n-----------------------------------------------------------------------------\nDeposit brokers are brokerage firms or independent salespeople who open CD accounts on your behalf. You may find that these options offer higher interest CDs, but it may also be more costly, for example, to close your CD account early, as you may lose part of your principal.\nBefore going with a deposit broker, ask for and read carefully the terms of the agreement and, most importantly, compare it to others offered directly through a bank or credit union.\n**12)**  **Where can I go to compare CD interest rates?**\n---------------------------------------------------------\nThere are a number of online websites where you can compare the best CD interest rates on any given day, like Bankrate and NerdWallet.\n**13)**  **What do I need to be looking at when shopping around for a CD?**\n---------------------------------------------------------------------------\nBefore you sign on the dotted line, do your homework. That means comparing CD options across multiple banks and\/or credit unions. Be sure to look at:\n* Disclosure statements\n* Interest rates\n* Term lengths (make sure you see the maturity date in writing)\n* Early withdrawal penalties\n* How you’re paid interest\n* How _often_ you’re paid interest\n**14)  Should I always choose the highest interest CD option?**\n---------------------------------------------------------------\nNot necessarily. The CDs with the highest yields are typically those with the longest terms. Unless you are certain you will not need access to that cash until the CD has reached maturity (i.e., the length of the term), go with a lower-interest, shorter term option.\n**15)**  **Why do CDs pay higher interest rates than regular savings accounts?**\n--------------------------------------------------------------------------------\nBanks and credit unions pay higher returns on CDs because you are guaranteeing them use of your money for a guaranteed period of time. Savings accounts offer these institutions no such guarantee.\n**16)**  **How often is a CD’s interest compounded?**\n-----------------------------------------------------\nInterest on your CD may be compounded daily, monthly, quarterly, or yearly depending on the bank or credit union.\n**17)**  **What happens to my CD once it reaches maturity?**\n------------------------------------------------------------\nYou may have the CD renewed for the same term length, open a new CD under new terms, or cash it out. Just be sure to make your decision before the renewal date. Otherwise, the CD may be automatically renewed for you. END

TITLE: Save for Retirement or Pay Off Loans CONTENT: Save For Retirement or Pay Off Loans — Which is Better for You?\n---------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nOf all money matters, the question of saving for retirement or paying off debt is a common one, primarily because it's such a tough question to answer. In fact, it seems there is no right or wrong answer in general, only what seems like a right or wrong answer for _you_.\nReasons to Pay Off Your Loans First\n-----------------------------------\n1. Your loans have you paying a higher percentage in interest rates than you can earn through investments. As you know, the longer you keep yourself in debt, the more you pay for it. So if the interest you can earn on investments is less than what you could save by paying off debt, it's a no-brainer. Focus on your highest-interest debt first. If much of your debt is in credit cards, you may try transferring your balance to a lower-interest credit card instead. Here at CreditInfoCenter.com, we have a number of tips on debt settlement, debt negotiation and debt consolidation.\n2. Your employer doesn't match your 401(k). Stock options don't count. If you're not getting matched with cold-hard-cash, put the money you would otherwise invest into the 401(k) into your debt pay-off plan.\n3. Once paid off, all of the money that previously went toward your loans can go into your retirement savings. Of course, this requires that you stick to your guns, creating and following a plan-of-action in terms of paying down your debt in a timely manner. The faster you're able to do it, the sooner you'll stop paying interest and earning it instead.\nReasons to Save for Retirement First\n------------------------------------\n1. The sooner you start setting aside money for your retirement, the less stress you'll feel later when you realize the big day is just around the corner but you're a long way from what you need to make it happen. No matter how aggressive our saving habits, most of us underestimate how much we need to retire. What's equally disturbing, though, is that even if we do accurately predict how much we need, most of us don't have enough extra income to save that much anyway. In other words, the sooner you can start saving something, the longer it will accumulate interest, increasing exponentially over the years.\n2. Saving for retirement affords you tax breaks that add up to a significant amount over several years time. If you wait to save for retirement, or take a break from it to focus on paying down debt, you could miss out on cumulative tax breaks too lucrative to miss.\n3. Your employer provides a 50 percent or more match for your 401(k). If you are in the fortunate position of having an employer that contributes significantly to your 401(k), by all means, take advantage of it!\nReasons to do Both at the Same Time\n-----------------------------------\n1. You're trying to pay off your debt first, but not aggressively enough to pay it off any time soon. The longer it takes you to pay down your debt, the more you're ultimately paying in interest. So if you're only paying a little above your minimum payments due, it's worth setting some aside for retirement too.\n2. You're saving for retirement first, but accumulating debt for regular and\/or unforeseen living expenses. What's the point of putting money away in savings if you're only losing money on interest charged for debt needed to cover living expenses? Yes, it feels good having a chunk of change earmarked for retirement savings, but it feels even better to take part of that money and setting it aside for your regular living and\/or emergency fund.\n3. The interest you're earning in savings is greater than the interest you're accumulating on your debt. Yes, you could take advantage of this by putting all your extra money into savings, but consider setting some aside for paying down debt at the same time, even if it's just a little more than your minimum monthly payments.\nStill not sure? Go with your gut. Which feels better — getting debt-free faster, aggressively building your nest egg, or doing a little bit of both, though more slowly, at the same time? Only you can be the judge. END

TITLE: Save for Retirement or Pay Off Loans CONTENT: | | | | \n: . END

TITLE: How to Set Up Your Saving Goals for Retirement CONTENT: Can You Say \"Yes\" to These Retirement Questions?\n------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nWhether you're already saving for retirement or you haven't a clue where to begin, ask yourself these six essential questions about your retirement savings goals. In some cases it may surprise you, but every one of these questions needs a \"yes\" from you.\n### 1\\. Do you expect your annual living expenses to stay about the same?\nMost people assume their living expenses will fall in retirement. After all, when you're retired, you're no longer saving for retirement. Plus, you've likely paid off the mortgage and college for the kids. However, other expenses inevitably creep in to take their place.\n**Healthcare.** The older you get, the more health issues you are going to face. This means increased premiums, deductibles, co-pays, and prescription drug costs.\nAlso, consider that Medicare does not cover long-term care (e.g., assisted living, nursing home care), dental care, eye care related to prescription glasses, dentures, hearing aids and exams to fit them, or routine foot exams.\nPlus, there is always the possibility you could have a costly medical expense before you qualify for Medicare (at age 65), which could take a big chunk out of your retirement savings for costs not covered by health insurance. This could also mean more serious, costly complications down the road.\n**Travel.** When you think about your retirement goals, travel likely ranks close to the top of the list, if not number one. The last thing you want to do is forego trips you've waited your whole life to take, but making them happen won't come cheap.\n### 2\\. Are you planning to live to 100 years old?\nAccording to the Social Security Administration, a man who turns 65 today can expect to live, on average, until 84. A woman who turns 65 today can expect to live, on average, until 86. However, life expectancy is only going to increase going forward. So the younger you are today, the more years you should expect to add to your lifetime and, in turn, your retirement funding needs. Many experts advise projecting your life expectancy to age 100, just to be safe.\nIn the simplest of terms, let's say, when you retire, you're living on $50,000 a year. Presume you'll need the same every year you are in retirement. If you retire at 65, and live another 20 years, that means you need $1 million in retirement savings (or income). However, if you retire at 65 and live another 35 years, that means you need $1.75 million in retirement savings (or income).\n### 3\\. Are you saving 15 to 40 percent of your income?\nThe older you are when you start saving for retirement, the larger the percentage of your income you need set aside each year.\nGenerally, if you start saving in your:\n* 20s, save 15 to 20 percent of your income\n* 30's, save 25 to 30 percent of your income\n* 40's, save 35 to 40 percent of your income\n* 50's, save 45 to 50 percent of your income\nDo the math and find the percentage that works for you. Just remember to subtract from your savings goal anything you already have coming to you in social security benefits and pension.\n### 4\\. Are you investing your retirement savings?\nSocking away retirement savings into a regular savings account or money market funds won't cut it if you want to reach your retirement goals. You simply must take advantage of investment opportunities that stand to give you a decent rate of return, including:\n* 401(k) contributions\n* Individual Retirement Accounts (IRA's)\n* Annuities\n* Stocks and bonds\nYour annual rate of return will depend on a variety of factors, but provided you're exhausting all of your investment options, you should safely be able to expect 5 to 6 percent.\n### 5\\. Have you considered retiring in a place with lower living expenses?\nWhile this may not be a desirable choice for everyone, it's certainly worth considering. The higher the cost of living where you are now, the more you stand to save by retiring in a city where housing, food, and other expenses cost less. See our list of the top 20 Most Affordable Places to Retire.\n### 6\\. Are you planning to work past your retirement years?\nWhile the prospect of never having to work another day in your life may sound like a dream come true, consider the benefits of the alternative. The longer you can generate income — be it through a part-time job or your own business — the longer you can preserve your retirement savings. You just may find yourself embarking on a second (or third) career that not only supports your retirement years, but enhances your overall quality of life. END

TITLE: Information on Investing in Money Market Accounts CONTENT: 14 Things to Know About Money Market Accounts\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nIf you want more than a typical savings account can offer, but don’t want to tie your money up in a CD, a money market account could be the answer. Just be sure to do your homework first, as all money market accounts are _not_ created equal, and certain terms and conditions do apply.\n1) What is a money market account?\n----------------------------------\nA money market account (MMA) — also known as a money market deposit account (MMDA) — is a type of savings account that typically offers higher interest rates than regular savings, but with special requirements and limitations.\n2) Is a money market account the same thing as a money market _fund_?\n---------------------------------------------------------------------\nNo. A money market _fund_ is a low-risk investment vehicle that is not federally insured. A money market _account_ is a risk-free savings option that _is_ federally insured.\n3) Why choose a money market account over a regular savings account?\n--------------------------------------------------------------------\nTypically, a money market account offers higher interest than a regular savings account. This is not always the case, however, so be sure to shop around for the best rate you can find.\n4) Why choose a money market account over a certificate of deposit (CD)?\n------------------------------------------------------------------------\nThough a certificate of deposit typically offers a higher interest rate than a money market account, the CD option has stricter terms. Even short-term CDs prevent you from accessing your money for months at a time (though you may do so with a penalty). Money market accounts, on the other hand, allow a certain number of withdrawals every month, penalty-free.\n5) Why should I put my money into a money market account?\n---------------------------------------------------------\nEven though a money market account typically offers higher interest than a regular savings account, the difference is not always that substantial. So if you’re looking to maximize your earning potential, and you can tolerate some risk, you may want to consider other investment options.\n6) How do I open a money market account?\n----------------------------------------\nYou can open a money market account through a bank or credit union.\n7) Are money market accounts federally insured?\n-----------------------------------------------\nYes. If you open your money market account with a bank, it is FDIC insured. If you open your money market account with a credit union, it is NCUA insured.\n8) Is there a minimum balance requirement for a money market account?\n---------------------------------------------------------------------\nOften there is a minimum balance requirement, but not always. You will likely find, though, that the higher the minimum balance required, the higher the interest rate.\n9) Can I take money out of my money market account?\n---------------------------------------------------\nThe number of withdrawals you are allowed on your money market account depends on the terms of the particular bank or credit union through which you opened your account.\n10) How much interest is earned on a money market account?\n----------------------------------------------------------\nIt varies. Interest earned is typically higher than that of a savings account, but not always.\n11) How often is interest compounded and paid on a money market account?\n------------------------------------------------------------------------\nInterest on a money market account is usually compounded daily.\n12) Can checks be written from a money market account?\n------------------------------------------------------\nIt depends on the terms. Some money market accounts allow check-writing (as well as debit card use), and some don’t.\n13) Where can I go to compare money market account options?\n-----------------------------------------------------------\nThere are a number of online websites where you can compare the best money market terms on any given day, like Bankrate and NerdWallet.\n14) What to look for when shopping for a money market account\n-------------------------------------------------------------\nIn your comparison of money market accounts, be sure to look at:\n* Interest rate\n* Monthly fee and how to avoid i.\n* Minimum balance required\n* Number of withdrawals you are allowed per month\n* Restrictions on the amount you can withdraw at any one time\n* Fee for excess withdrawals\n* Number of checks you are allowed to write per month\nLearn more about other investing options, including 17 things to know about CDs. END

TITLE: Find Unclaimed Money and Property State by State Listing CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nThere are many types of loss we experience in our lifetime. But a lost life insurance policy, forgotten bank account, safety deposit box, or land deed, are just a few of the losses one can not afford to lose. Did you know that one out of every 600 people are the beneficiaries of unclaimed life insurance policies, and they are due nearly $1 billion in unclaimed benefits? You could have money waiting for you to claim. There are a lot of websites out there claiming to be able to find this lost fortune for you — for a small fee. But, you don't need a professional service, you can do it yourself.\nTypes of Unclaimed Property and Money\n-------------------------------------\nThere are all types of ways you could be owed money that you forgot or don't know about:\n* Utility deposits, credit balances, store refunds\n* Un-cashed dividend, payroll or cashier's checks\n* Stock certificates, bonds, or mutual fund accounts\n* Life insurance policy\n* Undistributed wages\n* Checking and\/or savings accounts\n* Gift certificates\n* Traveler's checks\n* Safe deposit boxes\n* Royalty payments\n* Court payments\nWhy Does Property and Money Go Unclaimed?\n-----------------------------------------\nWhy do people actually not claim money or property owed to them? Here is a list of reasons:\n* They moved \n* They changed job status due to layoff, retirement or reassignment\n* Their bank account has been inactive for more than three years\n* They may have stopped making payments on an insurance policy\n* There are un-cashed checks older than three years\n* They regularly throw away mail without reading it \n* An estate was settled for a deceased relative \nState by State Directory — Where You Can Find Unclaimed Money and\/or Property\n-----------------------------------------------------------------------------\nA | B | C | D | E | F | G | H | I | J | K | L | M N | O | P | Q | R | S | T | U | V | W | X | Y | Z\n**A**\n**Alabama \n**Unclaimed Property Information and Search\n**Alaska \n**Unclaimed Property Information and Search\n**Arizona \n**Unclaimed Property Information and Search\n**Arkansas \n**Unclaimed Property Information and Search\n**C**\n**California \n**Unclaimed Property Information and Search\n**Colorado \n**Unclaimed Property Information and Search\n**Connecticut \n**Unclaimed Property Information and Search\n**D**\n**Delaware \n**Unclaimed Property Information and Search\n**F**\n**Florida \n**Unclaimed Property Information and Search\n**G**\n**Georgia \n**Unclaimed Property Information and Search\n**H**\n**Hawaii** \nUnclaimed Property Information and Search\n**I**\n**Illinois \n**Unclaimed Property Information and Search\n**Indiana \n**Unclaimed Property Information and Search\n**Iowa \n**Unclaimed Property Information and Search\n**K**\n**Kansas \n**Unclaimed Property Information and Search\n**Kentucky \n**Unclaimed Property Information and Search\n**L**\n**Louisiana \n**Unclaimed Property Information and Search\n**M**\n**Maine \n**Unclaimed Property Information and Search\n**Maryland \n**Unclaimed Property Information and Search\n**Massachusetts \n**Unclaimed Property Information and Search\n**Michigan \n**Unclaimed Property Information and Search\n**Minnesota \n**Unclaimed Property Information and Search\n**Mississippi \n**Information and Unclaimed Property Search\n**Missouri \n**Unclaimed Property Information and Search\n**Montana \n**Unclaimed Property Information and Search\n**N**\n**Nebraska \n**Unclaimed Property Information and Search\n**Nevada \n**Unclaimed Property Information and Search\n**New Hampshire** \nUnclaimed Property Information and Search\n**New Jersey \n**Unclaimed Property Information and Search\n**New Mexico \n**Unclaimed Property Information and Search\n**O**\n**Ohio \n**Unclaimed Property Information and Search\n**Oklahoma \n**Unclaimed Property Information and Search\n**Oregon \n**Unclaimed Property Information and Search\n**P**\n**Pennsylvania \n**Unclaimed Property Information and Search\n**R**\n**Rhode Island \n**Unclaimed Property Information and Search\n**S**\n**South Dakota** \nUnclaimed Property Information and Search\n**South Carolina** \nUnclaimed Property Information and Search\n**T**\n**Tennessee** \nUnclaimed Property Information and Search\n**Texas** \nUnclaimed Property Information and Search\n**U**\n**Utah \n**Unclaimed Property Information and Search\n**V**\n**Vermont \n**Unclaimed Property Information and Search\n**Virginia \n**Unclaimed Property Information and Search\n**W**\n**Washington State \n**Unclaimed Property Information and Search\n**West Virginia \n**Unclaimed Property Information and Search\n**Wisconsin \n**Unclaimed Property Information and Search\n**Wyoming \n**Unclaimed Property Information and Search END

TITLE: Plan Now For an Early Retirement and Retire Early CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nThe mere idea of an early retirement may be pure fantasy for many Americans. Recent surveys suggest a good many of us are convinced we will never be able to retire early — if at all. That is not a very reassuring thought if you are just starting your career, family, and adult life.\nIn the simplest of terms, you can retire as soon as you have enough money saved to live on for the rest of your life. Determine your life expectancy based on your family history and personal health. Then multiply the number of years you expect to live in retirement by the annual amount of money you are personally responsible for covering. Obviously, there is no way of knowing with certainty how many years you will live but, in this day-and-age, it is probably a safe bet to plan for 85 to 90 years, or more.\nHow is a Plan For Retiring Early Different From Retiring at 65?\n---------------------------------------------------------------\nThe only difference between retiring early and retiring at 65 is the amount of money you need to make it happen. Of course, this implies two key imperatives:\n1. You start saving sooner\n2. You start saving more\nHow Soon Should You Start Saving For Retirement?\n------------------------------------------------\nThose who retire early typically start saving at 25, as opposed to 30. That said, anything is possible. No matter when you start saving for retirement, you can retire early if you have the determination, discipline, and aggressive savings plan to back it up.\n### How Much Money Will You Need to Retire Early?\nAs is the case at any age, how much you need for retirement depends on how much your annual expenses are now, and how much you expect that to change by the time you reach your retirement years.\n### What Expenses May Drop Off During Retirement Years?\nThough the list varies for everyone, you may expect to lose expenses like mortgage payments, college tuition, student loans, and (dare I say it?) credit card debt.\n### What Expenses May Appear During Retirement Years?\nAgain, this list is dependent on individual choices and circumstances - from housing to travel - but you can be certain health care will play a prominent role.\n### How Often Should You Assess Your Retirement Investments?\nIt's a good rule of thumb to assess your retirement investments every 6 to 12 months to see where may want to pull back, and where it may be worth the risk to get more aggressive.\n### Is It Smarter to Pay More on My Mortgage or Put Some More Money Into a Retirement Savings?\nThough paying off your home is certainly something to aspire to, never do so at the expense of your retirement savings plan. In fact, in the long run, you'll come out one-to-eight percent ahead putting a hundred more dollars toward your retirement savings as opposed to your mortgage.\n### Do You Need to Have All of Your Retirement Money \"In-Hand\" on the Day of Retirement?\nTheoretically, you should have all of your retirement money saved by the big day. However, this does not apply to money you have in the stock market. In other words, don't panic and sell in a volatile market because you're afraid you're going to lose it all. As long as you don't need that money in the next 10 to 15 years, ride it out. Of course, this implies the necessity of having your the majority of your retirement funds in \"safe\" investments, like IRA's and annuities. END

TITLE: What to Know About Investing in Mutual Funds CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nThough they’re the most popular investment vehicle among small investors, mutual funds should not be entered into blindly or lightly. Get the basics down first.\n1) What are mutual funds?\n-------------------------\nMutual funds allow multiple small investors — or shareholders — to pool their money for investing in stocks, bonds, and other securities.\n2) Why choose a mutual fund over other investment options?\n----------------------------------------------------------\nYou don’t need a lot of money to invest in mutual funds. Minimum requirements vary, but typically range between a few hundred to a few thousand dollars. Mutual funds also offer a simple way to diversify your investment portfolio, and you can buy and sell your shares with relative ease.\n3) Why should I think about a mutual fund?\n------------------------------------------\nUnlike investments in individual securities, a mutual fund gives you no control over your portfolio. You also have to pay capital gains taxes on distributions, even if the fund’s share price has fallen. Plus, fund fees can eat away at returns.\n4) What do I need to consider when looking for a mutual fund?\n-------------------------------------------------------------\n**_Fund Category._**  Your choice will depend on your goals. Options are numerous, but some of the most common mutual fund options include:\n* Bond funds\n* General equity (stock) funds\n* Balanced funds (stocks and bonds)\n* Global\/international funds\n* Sector funds, representing investments in one sector of the economy\n* Index funds, replicating the components of a particular market index\n**_Risk._**  Is your tolerance high or do you need to be more conservative?\n**_Turnover._**  What percentage of the fund’s holding has changed over the past year. The lower the turnover, the better.\n**_Fees._**  You’ll have to pay standard fund management fees (be sure to look at the fund’s “expense ratio”), but “load fees” can be avoided.\n**_Taxes._**  Expect to pay them on capital gains distributions. One way to minimize them is to find out when distributions are made and time your investment after the fact so that you aren’t hit with tax bill right off the bat.\n**_Time Horizon._**  Are you in it for the long haul? If so, you may want to invest in a more volatile, and potentially more lucrative, long-term capital appreciation fund.\n**_Past Performance._**  Look at whether it has been consistent with market returns and whether there have been significant fluctuations in performance over the course of a year. Also, consider that you won’t get as comprehensive a picture of a newer fund as you will one that’s been around a while. And be sure to ask about any operational changes of late, such as a new fund manager or strategy.\n**_Prospectus and Shareholder Reports._**  Read them. Period.\n5) How is an index fund different from other mutual funds?\n----------------------------------------------------------\nIndex funds replicate the components of a particular market index, such as Standard and Poor’s 500 index. Other mutual funds are run by a fund manager whose job it is to implement the fund’s strategy and make trading decisions accordingly.\n6) What is a prospectus?\n------------------------\nA prospectus is a document that outlines the goals, strategies, past performance, managers, and other details of the fund. This is an essential tool for comparing the pros and cons of various mutual funds. Do not make a decision without it.\n7) Is there a minimum required investment in a mutual fund?\n-----------------------------------------------------------\nThe minimum required to invest varies, but typically ranges from $500 to $3,000.\n8) What are the fees for investing in a mutual fund?\n----------------------------------------------------\nMutual funds make money off of fees paid by investors. However, fee types and amounts vary across mutual funds, so choose wisely.\nSome mutual funds include load fees, or sale charges, tied to your purchase or selling off of your shares. These may be front-end load fees (paid at the time of your investment) or back-end load fees (paid when you sell your shares). While the law allows funds to charge load fees as high as 8.5 percent, most range from 3 to 6 percent.\nFortunately, not all mutual funds have load fees. Instead, they make money off of management, administration, and other types of fees.\nIdeally, you want to choose a mutual fund with no load fees.\n9) How do I find and invest in a mutual fund?\n---------------------------------------------\nYou can invest in mutual funds directly through fund companies, such as The Vanguard Group and Fidelity Investments. You may also go through a discount broker.\nLearn more about Money Market Accounts. END

TITLE: Is Investing in Gold a Good Idea? CONTENT: Is Investing in Gold Good for Your Portfolio?\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nNo investment has shined as brightly as gold over the last fifteen years. If you had invested $10,000 in gold bullion back in January of 2001, your 37 ounces would be worth almost $45,000, as of the day of this writing. But, when the economy is good, gold prices tend to drop, as evident during the economic boom of the 80's and 90's. But as soon as the world market began to take nose dive, gold prices started to soar and experts believe the price of gold will continue to climb in the coming years.\nUnlike other investments, you cannot expect gold to earn you monetary dividends. However, many think of buying gold as an insurance policy, of sorts, providing a safe place to store your wealth and hedge against inflation, as it is a commodity that is almost certain to continue to be in high demand in the future.\nWhat Determines the Value of Gold\n---------------------------------\nGold is a volatile commodity and its value tends to go through long stretches of highs and lows; years at a time, in fact. In addition to the impact of supply and demand, the value of gold is also impacted by the cost of production. And, in recent years, mining costs have been on the rise, thus raising the price of gold. Some of this evidently has to do with new environmental regulations requiring safer, and presumably more expensive, mining practices. \nBesides the obvious factors of supply and demand and mining costs, the economy also affects the price of gold. The value of gold tends to move in the opposite direction of stock prices. When the stock market was at its all time high in the 80's and 90's, gold was $300 to $500 an ounce. Now, an ounce of gold costs about $1,274 an ounce (as of the date of this writing).\nWill Your Money Will Be Safe if the Dollar Loses Value?\n-------------------------------------------------------\nOne of the greatest arguments for gold investments these days comes from the camp of people who believe it is the only way to protect your wealth if world currencies lose their value. What this implies is the assumption that the world would subsequently start trading in gold instead of currency. However, most governments with large supplies of gold don't necessarily have much power. On the flip side, the most powerful governments aren't necessarily gold-rich nations.\nWhat Percentage of an Investment Portfolio Should Be in Gold?\n-------------------------------------------------------------\nGold is a good portfolio diversifier because its price tends to move in the opposite direction of stock prices, and often against bond prices, too. Gold does not produce income and it really offers more of a psychological value to investors. Having gold in your portfolio gives one a downside protection if the stock market crashes.\nYou should limit investments in any one sector to 20 percent. If you are an aggressive investor, you may opt for the full 20 percent in gold. On the conservative side, though, shoot for no more than 5 to 10 percent.\nHow to Buy Gold\n---------------\nThe best choice to buy gold varies from person to person and depends on the amount of money you have to invest, your investment objectives, the amount of risk you can absorb, and the length of time you intend to hold on to your gold. Having said that, here are the four ways to invest in gold:\n1. **Buying Gold Bullion.** Though it can certainly be satisfying to be in possession of gold bars 7 inches long, weighing over 27 pounds a piece, storage can be an issue. For someone just getting into gold, buying gold coins or gold jewelry is a great way to start and it is much easier to store than a load of gold bars.\n2. **Buying Gold Futures.** Those willing to absorb a bit more risk may decide to invest with gold futures. However, it is important to note that it isn't so much \"investing\" and it is \"speculating.\" As explained by Bankrate.com, \"A futures contract is an agreement to buy or sell a set amount of a specific commodity at a stated price on a specified future date. Futures contracts can be bought and sold on exchanges.\"\n3. **Buying Gold Stocks.** Purchase your gold shares in a publicly traded company that is involved in gold mining and related enterprises. This appears to be the least attractive of your options, as the price of their stock is subject to fluctuations in that specific company's business practices and production costs. As explained by Canadian entrepreneur and author Kevin O'Leary, \"There is no reason to own the miners. If your cost to actually mine an actual ounce keeps going up, why would I ever buy the stock?\"\n4. **Buying Gold Exchange-Traded Funds (ETF's).** According to Bankrate.com, this is \"the easiest way to buy into gold fever.\" However, it is one to enter into with caution, \"as investors around the world use gold ETFs to hedge their investments or speculate on gold prices, and the ETFs themselves can be more volatile than might be expected.\"\nBottom line, gold is by no means a must-have, but its representation of 5 percent of your portfolio seems a safe bet (i.e., it can't hurt). END

TITLE: Is Investing in Gold a Good Idea? CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Retirement Savings Gap Between Women and Men CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nIt is hard enough to save for retirement in today's struggling economy but add to that the challenge of the sexes and now we have a full blown crisis. While both men and women face retirement savings challenges, the hurdle is even higher for women. Learn why there is a retirement savings gap between men and women and how to overcome these obstacles if you are a woman.\nSalary Gap\n----------\nAccording to a recent study, in 2015 women earned 83 percent of what men earned — based on median hourly earnings of both full- and part-time U.S. workers. But for adults ages 25 to 34, the 2015 wage gap is smaller. Women in this group earned 90 cents for every dollar a man in the same age group earned. So it is no wonder women have a harder time saving for retirement — they have less salary each month.\nWith the exception of social workers, the top 10 jobs with the smallest wage gaps had median weekly earnings below the overall median for both male and female workers — $791 per week. Male social workers had weekly earnings of $892, while the median weekly earnings for the profession as a whole were $844.\nWhile women complete college and graduate school at higher rates than men; they earned 47 percent of all law degrees in 2011 and 47 percent of all medical degrees in 2014, this has helped shrink the salary gap but it is not enough to close it. A recent survey on salaries showed a male surgeon earns 37.76 percent more per week than his female counterpart. In real terms, this means a female surgeon earns $756 less per week, which adds up to nearly $40,000 over a year.\nIn the area of lower paying jobs, women are 94.6 percent of all secretaries and administrative assistants. \nWoman Need More Retirement Savings\n----------------------------------\nHere are a few \"fun\" facts: 1) Out of the top 49 oldest people alive today, only 2 are men. 2) A woman born today can expect to live 79.8 years - five years longer than a man. On average, women live longer than men which means women will need their retirement money to last longer.\nTherefore, adding to the wide gap of salary differences, is the differences in life expectancy and health care costs for men and women in their retirement years. Financial Fitness, which provides financial education programs to more than 600 organizations, examined median income, retirement savings, life expectancy, 401(k) salary deferral rates, and projected health-care costs for a woman and a man, each 45 years old. They wanted to find out how much each person would need in order to retire at 65 and live on 70 percent of his or her pre-retirement income. What emerged was that a man would need to save an additional $277,000 and a woman would need $522,000. Why? Because women have lower social security benefits, longer life expectancy and lower retirement savings in general due to lower-paying jobs. \nWomen Need to Start Saving Early\n--------------------------------\nIf you are a woman reading this article, you now know you may outlive your husband and you are probably earning much less in the way of a salary than him. This means you are going to need more in the way of retirement savings to live out your golden years in comfort and you are going to have to work harder to get there.\nThere are many ways to combat the gender wage gap and a lot of companies are enacting policies that will help women balance work and family commitments - such as paid sick days, paid family leave, equal pay protections, and pay transparency practices. Women are also pursuing advanced degrees at the same or slightly higher levels than men.\nHaving said all of this, it is imperative women start saving for retirement early in their careers and concentrate on putting a bigger portion of their salary into a retirement savings account. Check to see if your employer offers a 401(k) match and if so, put in the maximum amount so you meet that 100 percent match. You can also start putting money in IRA's, gold, or the stock market. The sooner you start to utilize these savings options, the more money you can realize over the years. Don't sit back and rely on your spouse's retirement savings because if you live longer than him it may not last long enough for you. END

TITLE: Retiring Alone Means Different Savings Strategies CONTENT: Saving for Retirement If You Are Retiring Alone\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nHere is a staggering statistic we found in a 2014 Gallup Poll — 64 percent of 18 to 29-year-olds report being single and living alone. Gallup also found the percentage of young adults not in a committed relationship has jumped from 52 percent a decade earlier. In light of this growing trend, we found it odd that there is not a lot of information out there addressing the different retirement savings needs of a single person. Single, unmarried people planning for retirement face a lot of different challenges compared to a typical married couple. If you are single, and plan to stay that way, you need to read this article so you can plan for your retirement accordingly.\nLife Insurance and Long-Term Care Insurance\n-------------------------------------------\nThis is probably not in the fore front of your planning, but it is something that is going to be very important to you once you hit your golden years — life insurance and long-term care insurance. Living alone, with or without the support of extended family members, means you are completely independent of any help from a spouse or partner. If you get sick and can not work, there is no one in your household to pick up the slack so you need to make sure you have an outside source of supplemental income. Furthermore, if you become so ill that you can not live on your own, you need a way to pay for long-term care.\nThe biggest struggle for a single person is the cost of these types of insurance and trying to fit this expense into your budget. On the whole, a single person's income is very limited and it might be hard to find the extra money to pay for life and\/or long-term insurance. The upside of insurance is if you start it when you are young, the premiums are lower and usually you can lock yourself into this amount. You can also start off with a bare minimum policy and increase the coverage as you get older and are making more money. We suggest you find a good financial planner and schedule meetings with him or her every few years to re-evaluate your insurance coverages and needs.\nContribute to Tax-Deferred Accounts\n-----------------------------------\nTalk to any good financial planner, and he or she will tell you single people need to make sure they save a greater amount to their tax-deferred accounts and to start early. Reason being, they need to build a larger emergency savings account than that of a two-person income household. They do not have anyone to lean on should they lose their job. If you are single, and are lucky enough to work at a place that offers a 401(k) matching program, join it and contribute the maximum amount that will be matched. This is a great way to increase your savings and lower your taxable income. Make sure you can take this 401(k) with you if you ever have to leave this employer and make sure you can roll it into another account. \nIf we can offer one piece of advice, try not to dip into this account prior to your retirement. When you turn 65, you will be glad your account is still in tack and you will really be happy with the nice nest egg you have saved up.\nHousing and Cost of Living Expenses\n-----------------------------------\nThe biggest expense for most people is housing, and single people still have to pay rent and mortgage bills on a residence that could house two. Fact is, married people in their late 20's spend about $7,200 less per person. That means a single person has much less left over to put into their savings accounts. \nThe up side to living alone is the fact that a single person can save or spend their money on whatever they want and they don't have to ask for any input. The down side is, whether or not a single person is a spender or a saver, having a lack of \"dependents\" makes the over all savings plan very different from singles to married couples. Case in point is life insurance. Why have life insurance if there is no one to pass it on to? But, as for long-term care insurance, without a spouse to help out in the case of declining health, this is a very important option to have if you are single.\nAnother factor is Social Security. A married, divorced or widowed retiree can opt to get benefits based on a current or former partner's lifetime earning record, which may allow for a higher Social Security payment. Those who are not married can only receive benefits based on their income record. This means they will need more planning on when to retire and when to start taking Social Security benefits.\nSaving Plan Based on Self-Reliance\n----------------------------------\nResearch confirms that a single person tends to save less for retirement than a married couple. This makes perfect sense since a single person is already at a disadvantage with only one income. With only one income, all expenses and investments must be funded from that one source making it more difficult to compound and grow a retirement savings account.\nBut, it can be done if you start saving early and if you are willing to cut out some expenses to save more money each month. A single person has to really budget their money and stick to a budget so they have money to put aside into a savings\/retirement plan or pay for life and\/or long-term insurance. The more planning done when you are young, the better off you will be in your golden years. \nLiving as a single person does not have to be a bad thing, and many singles live a more happy fullfilling life. Just make sure to think far enough ahead and plan for the unexpected because being single means being self-reliant. And being self-reliant can be a powerful thing. END

TITLE: Can You Afford to Retire Abroad CONTENT: Retiring Abroad on the Cheap? Money Matters to Consider First\n-------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nIf you want to stretch your retirement dollars, there are plenty of places to retire abroad on the cheap. But before you have your heart set on it, do your homework first. One or more of the following factors could change your mind.\nExamine Your Current Cost of Living\n-----------------------------------\nWhen you start looking into affordable retirement destinations overseas, don’t bet the bank on cost of living estimations. Certainly, they’re a good way to narrow down your search, but _your_ cost of living could vary depending on your personal preferences and expectations.\nYour best bet? Before blindly deciding on a retirement spot, spend a good chunk of time there to get an idea of just how much _you_ will likely spend to maintain the lifestyle you want, in terms of housing, food, entertainment, and other cost of living expenses.\n**How Much Do You Have in Savings and\/or Retirement Income**\n------------------------------------------------------------\nIn order to acquire a retirement visa, most countries require proof of retirement savings and\/or retirement income. Look into the specific requirements of your destination country.\n### **Healthcare Needs**\nMedicare won’t cover healthcare abroad, which is not to say you shouldn’t keep it.\nWhile you will want to find an alternative for basic medical needs within your new home country, you can always return back to the U.S. and use your Medicare for major procedures.\nAs for basic medical coverage you can use in your destination country, look into the public healthcare system. Will they allow you to pay into the system for healthcare access? Or is healthcare so cheap there that you can afford to pay everything out of pocket?\n### **Taxes Required to Federal Agencies**\nNo matter where you retire, as long as you are a U.S. citizen, you’re required to file federal income taxes. This includes any income you earn from work in your retirement years, as well as income made off of investments.\n### **Travel to and From the U.S.**\nHow often will you want to visit family and friends back in the States?\nLook into the cost of round-trip flights and do the math on what it will cost you to travel back and forth. And remember to factor in hotel accommodations (if applicable), as well as the cost of food and entertainment while you’re here.\nLooking to retire on the cheap without leaving the States? Check out our top 20 list of the most affordable places to retire in the U.S. END

TITLE: College Grads Today Retiring Later in Life CONTENT: Today's College Grads May Not Be Able to Retire at 65\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nRemember when you were growing up, your grandparents or maybe even your parents retired at the age of 65 and they had a nice monthly retirement income to live off of during their golden years. Well, that stress free retirement living has pretty much come to an end as our country is seeing more and more pensions and retirement accounts depleted by bad investment choices and a poor economy. Add to that the overwhelming debt being accrued by the average person, and you have a recipe for pushing the retirement age well into the 70's. The college graduates of today will most likely not be able to retire until they are well over 70 years of age due to the fact they will not be able to afford to retire at 65. Let's explore why this is happening and what you can do about it now so you can retire at 65 and not 75.\nStudent Loan Debt\n-----------------\nA recent study by Student Loan Hero revealed a very dismal financial outlook for today's average college graduate. The class of 2016 graduated with $37,172 in student debt on average, which is not really ideal conditions for starting to sock away money into a retirement fund. It all translates to about $125,000 less in your retirement fund by the time they reach the typical retirement age of 65. But how does $37,000 of college debt turn into $125,000 later? In party due to interest on the loan and opportunity cost of future savings.\n\"\\[A\\]lthough the median college graduate leaves with a seemingly manageable $37,000 debt load, 7 percent of a student's earnings go toward yearly loan payments of $3,200 for the first ten years of his or her career,\" writes NerdWallet analyst Joseph Egoian. \"This prevents any meaningful contributions toward retirement.\"\nNow, if that $37,000 was put into a plain-vanilla retirement account averaging a 5 percent annual return for 30 years, it would become almost $160,000. But it won't, and as a result, the typical debt-laden graduate won't be well situated to retire until he or she is 75, 10 years later than the current average age of retirement.\nOut Living Your Money\n---------------------\nLater retirements seem somewhat inevitable as we are living longer, which means you need more money saved for retirement. In the 80's, a lot of companies moved from traditional pension plans to 401(k) savings plans. The thinking was these accounts would grow so big that making money to last well into retirement would be fairly simple. But, it did not work out that way. The economic crash of 2008 depleted most 401(k) accounts, which meant the money that would have been there to live on, was now gone. The guaranteed lifetime income, once a staple of old age for many American, has now become an elusive grail.\nOne way to combat the poor performance of 401(k)'s, is to convert your savings into a fixed annuity. While 84 percent of Americans say lifetime income is important, only 14 percent have bought an annuity. Annuities come in many varieties so make sure to check the fees before you buy into one.\nThe best thing for recent college grads to do is to not get too far into debt with college tuition. Try going to a cheaper community college first, then transfer to a 4-year school. Also, working while going to school can help lessen the need to borrow more and more money to get through school. With less debt after graduation, you can put money into a retirement account so you won't be working after your turn 65 years old. Doesn't that sound better than working well into your 70's? We think so! END

TITLE: College Grads Today Retiring Later in Life CONTENT: | | | | \n: . END

TITLE: Affordable Cities to Retire to 2013 CONTENT: Most Affordable Places to Retire — Best Retirement Cities\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nWhether you're at, near, or just thinking about retirement, take a moment to browse through the following list of cities found to be the best places to retire in 2017, as listed by Forbes Magazine. There are a number of factors to consider when it comes to retirement and housing and cost of living are top on the list. Each city listed below has that information along with pros and cons of retiring in this city. Everyone has different needs so there is more to choosing a retirement city than financial considerations.\n1\\. Bethleham, Pennsylvania\n* **Population:** 75,000\n* **Median House Price:** $152,000\n* **PROS:** Cost of living 6% below national average, highly walkable, and good air quality.\n* **CONS:** Cold winters\n* **Population:** 32,000\n* **Median House Price:**  $157,000\n* **PROS:** Good economy, cost of living 4% below national average. Good climate.\n* **CONS:** Not very walkable and lackluster air quality.\n* **Population:**  120,000\n* **Median House Price:**  $161,000\n* **PROS:** Good economy, cost of living 8% below national average, low serious crime. Good walkability and warm climate.\n* **CONS:** None\n* **Population:**  28,000\n* **Median House Price:**  $160,000\n* **PROS:** Cost of living 13% below national average, good economy, low crime, good air quality, warm climate.\n* **CONS:** Not very walkable.\n5\\. Harrisonburg, Virginia\n* **Population:**  53,000\n* **Median House Price:**  $162,000\n* **PROS:** Good air quality, low crime rate, cost of living 4% below national average.\n* **CONS:** So-so ecomony, brisk winters.\n6\\. Clemson, South Carolina\n* **Population:**  15,000\n* **Median House Price:**  $129,000\n* **PROS:** Good economy, good state tax, low crime, good air quality, warm weather, and very walkable.\n* **CONS:** Cost of living at national average.\n7\\. Brevard, North Carolina\n* **Population:**  8,000\n* **Median House Price:**  $198,000\n* **PROS:** Good economy, cost of living at national average, good climate, low crime, good air quality.\n* **CONS:** Not very walkable.\n* **Population:**  205,000\n* **Median House Price:**  $206,000\n* **PROS:** Strong economy, cost of living 3% below national average, low crime, good air quality, and good weather.\n* **CONS:** Not very walkable.\n* **Population:**  30,000\n* **Median House Price:**  $215,000\n* **PROS:** Good weather, low crime, good air quality.\n* **CONS:** Not very walkable and cost of living is 2% above national average.\n10\\. Colorado Springs, Colorado\n* **Population:**  455,000\n* **Median House Price:**  $242,000\n* **PROS:** Good economy, very bikeable, and good air quality.\n* **CONS:** Cost of living 5% above national average, not very walkable and weather is very cold in the winter.\n11\\. Jefferson City, Missouri\n* **Population:**  43,000\n* **Median House Price:**  $138,000\n* **PROS:** Strong economy, cost of living 10% below national average, and good biking. \n* **CONS:** Extreme weather and not very walkable.\n* **Population:**  75,000\n* **Median House Price:**  $183,000\n* **PROS:** Cost of living at national average, low crime, good air quality, and strong economy.\n* **CONS:** Cold winters.\n* **Population:**  120,000\n* **Median House Price:**  $192,000\n* **PROS:** Top-ranked economy, good air quality, somewhat walkable, and high ranking volunteering culture.\n* **CONS:** Cold winters, cost of living 2% above national average.\n* **Population:**  185,000\n* **Median House Price:**  $171,000\n* **PROS:** Booming economy, cost of living 3% below national average, good air quality, warm climate, and low serious crime. \n* **CONS:** Not very walkable.\n* **Population:**  94,000\n* **Median House Price:**  $172,000\n* **PROS:** Strong economy, cost of living 4% below national average, low crime, and good air quality.\n* **CONS:** Cold winters.\n* **Population:**  36,000\n* **Median House Price:**  $179,000\n* **PROS:** Cost of living 5% below national average, low crime, good air quality. \n* **CONS:** Cold winters, poor state tax.\n* **Population:**  277,000\n* **Median House Price:**  $156,000\n* **PROS:** Decent economy, cost of living 8% below average, low crime, great air quality.\n* **CONS:** Poor state tax climate for retirees and severe weather extremes.\n* **Population:**  12,000\n* **Median House Price:**  $215,000\n* **PROS: G**ood air quality, low crime, mild climate, very bikeable.\n* **CONS:** Cost of living 5% above national average.\n19\\. Ocean Pines, Maryland\n* **Population:**  10,000\n* **Median House Price:**  $126,000\n* **PROS:** Cost of living 8% below average, good weather and air quality, and very walkable.\n* **CONS:** So-so economy, average serious crime rate and fair state tax climate for retirees.\n* **Population:**  167,000\n* **Median House Price:**  $240,000\n* **PROS:** Low serious crime, good economy.\n* **CONS:** Cost of living 9% above national average, hot climate. END

TITLE: Affordable Cities to Retire to 2013 CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Get the Basics on Investing in Cryptocurrency CONTENT: Bitcoin and Beyond: The Basics of Cryptocurrency\n------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 7, 2017_\nIf you’re looking for investment ideas, cryptocurrency might be looking pretty good right now. On August 27, 2017, the total market capitalization of cryptocurrencies reached $158.5 billion, an increase of 795 percent for the year. What doesn’t look so good is jumping into an investment before you understand it. At least get the basics down first.\n**How cryptocurrency works**\n----------------------------\nCryptocurrency is a decentralized digital currency, with no single governing body issuing it or regulating the market. There are hundreds of cryptocurrencies in circulation, which can be acquired in a few different ways:\n* They can be bought through an exchange\n* They can be paid to you by an employer\n* They can be _mined_\nMining is done by participating in the processing of cryptocurrency transactions. A good explanation comes from The Economist in its description of mining Bitcoin:\n\"Every ten minutes or so mining computers collect a few hundred pending bitcoin transactions (a ‘block’) and turn them into a mathematical puzzle. The first miner to find the solution announces it to others on the network. The other miners then check whether the sender of the funds has the right to spend the money, and whether the solution to the puzzle is correct. If enough of them grant their approval, the block is cryptographically added to the ledger and the miners move on to the next set of transactions (hence the term ‘blockchain’).\"\nIt is this _mining_ activity that earns you cryptocurrency. (Though not all cryptocurrency can be mined.)\nOnce it is in your possession, you can hold on to your cryptocurrency in hopes of it rising in value. You can sell your cryptocurrency. Or you can spend it in places that accept cryptocurrency as payment.\n**How to trade cryptocurrency**\n-------------------------------\nYou buy and sell cryptocurrency through an exchange. To get started, you will need to sign up for an account, verify it, and add your preferred payment methods. One of the most popular exchanges is Coinbase. But there are many other trusted exchanges, Bitstamp, Gemini, and Kraken among them.\n**When to buy (and sell) cryptocurrency**\n-----------------------------------------\nThough cryptocurrency is not a stock, some conventional stock advice does apply — buy low, sell high. Also, consider the advice of Credit Info Center owner Jared Ericksen who trades on Coinbase:\n\"Buy and hold until you absolutely need to withdraw the money. I have played around with trying to guess the valleys and peaks. I have also just bought and held and the latter has performed much better.\"\nBut make no mistake about it — there is nothing safe or predictable about cryptocurrency. \"I would classify it as a risky investment for sure,\" says Ericksen. \"Only invest money that you can afford to lose.\"\n**Buy and sell limits**\n-----------------------\nThough cryptocurrency is not regulated by any single governing body, the exchanges do have their own internal rules, buy and sell limits among them. Take Coinbase, for example, the most popular cryptocurrency exchange.\nAs stated on the Coinbase website, \"Your account has a weekly limit for buying and selling as well as separate credit \/ debit card limits, applicable to certain payment methods.\"\nThese limits can increase relative to 1) how long you’ve had your Coinbase account, 2) your buying history and activity, and 3) account verification.\n**What cryptocurrency to invest in**\n------------------------------------\nThere are hundreds of cryptocurrencies out there, so deciding on one can feel a little overwhelming. On the other hand, your options may be very limited depending on which cryptocurrency exchange you use. For instance, Coinbase only trades in Bitcoin, Ethereum, and Litecoin.\n**Where to spend cryptocurrency**\n---------------------------------\nIf you want to spend your cryptocurrency on goods or services, you can use Bitcoin through a few name brand sources, including Overstock, Expedia, Shopify, DISH Network, Microsoft, Intuit, and Paypal.\n**How cryptocurrency is taxed**\n-------------------------------\nDespite its name, cryptocurrency is not considered _currency_ by the IRS. It is instead considered property, meaning cryptocurrency is subject to capital gains taxes. Federal income taxes may also apply. Specifically, the IRS website states that:\n* Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.\n* Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply. Normally, payers must issue Form 1099.\n* The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.\n* A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.\n**Who created cryptocurrency**\n------------------------------\nBitcoin was the first cryptocurrency, created in 2009 by an inventor who goes by the pseudonym, Satoshi Nakamoto. However, the system that cryptocurrency is based on was used during World War II, when _cryptography_ was used to encrypt communications.\n### **When to think twice**\nBefore jumping into the cryptocurrency market, ask yourself these questions first:\n1) Do you already have traditional investments for your retirement?\n2) Have you paid off all outstanding credit card debt?\n3) Have you saved the money you need for your financial goals? College, a car, a home?\n4) Is the money you would invest in cryptocurrency money you can afford to lose?\nIf you can answer yes to all of these questions, go for it. If not, think twice. Instead of making a risky investment, why not use the money to accomplish things you _know_ to be within your reach? END

TITLE: Manage Your Retirement Savings With 401(k), IRA and Roth IRA CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nWhether you've been saving for retirement for years, or you've yet to save a dime, it's a good idea to review the basics. This is a good place to start, providing a general overview of the smartest, safest ways to make the most of your retirement savings.\nHow Much Income Should be Set Aside Into a Retirement Savings?\n--------------------------------------------------------------\nDo the math. Determine your life expectancy based on your family history and personal health. Then multiply the number of years you expect to live in retirement by the annual amount of money you are personally responsible for covering. Obviously, there is no way of knowing with certainty how many years you will live but, in this day-and-age, it is probably a safe bet to plan for 85 to 90 years, or more.\nThough conventional wisdom holds you will need less to live on per year in retirement than you do now, the truth is most people underestimate how much they really need. (Yes, some expenses fall off, but others rear their ugly heads.) To be on the safe side, assume you will need as much income per year as you need now.\nSo, after deducting income you expect to receive via social security and, if you are so lucky, your pension, divide how much you personally need to contribute to your retirement by the number of years you have left to get there. This will tell you how much you need to save per year between now and then.\nWhere Should I Invest My Retirement Savings?\n--------------------------------------------\nThe wisest investments for your retirement savings include 401(k) plans and IRA's.\n### What is a 401(k) Savings Account?\nA 401(k) is a retirement savings plan offered by employers to their employees.\n### What is a Deferred 401(k)?\nA traditional deferred 401(k) allows you to deposit income into the savings plan without paying taxes on it. Instead, these taxes are deferred, meaning you pay them later, on the date of withdrawal.\n### What is a Roth 401(k)?\nA Roth 401(k) requires you to pay taxes on income when it is deposited into the account. Then no taxes are due at the time of withdrawal.\n### How Do I Choose Between a Traditional Deferred 401(k) and a Roth 401(k)?\nIf it's early in your career and you are making less than $40,000 a year, you may opt for the Roth 401(k). You are probably in a lower tax bracket now than you will be at retirement. So it will save you money in the long run to pay taxes upon deposit via a Roth 401(k). However, once you start making more than $40,000 a year, switch to a traditional deferred 401(k), as your tax bracket at retirement will probably be less than the height of your career.\n### When Should I Enroll in a 401(k) Plan?\nAs soon as possible, as the sooner you start saving, the bigger returns you'll see from interest earned, over the years, in the long run. Some employers automatically enroll their employees into the plan. If you're not sure, check with human resources and get it done!\n### How Often Should I Deposit Money Into My 401(k)?\nYou probably should set up an automatic withdrawal from every paycheck, if your employer has not done so already.\n### Do I Have to Deposit the Full Amount of My Employer's 401(k) Match?\nYou are by no means required to deposit as much of your income as your employer is willing to match, but it's certainly the smartest thing to do. For as long as your employer offers the match, do your best to deposit the full amount, as you re doubling your money.\nWhat is an IRA?\n---------------\nAn IRA is an Individual Retirement Account that may diversify your money into various investments, such as a mutual fund or retirement annuity. This is something you can, and probably should, have in addition to your work's 401(k).\n### What is a Deferred IRA?\nA deferred IRA allows you to deposit income into the savings plan without paying taxes on it. Instead, these taxes are deferred, meaning you pay them later, on the date of withdrawal.\n### What is a Roth IRA?\nA Roth IRA requires you to pay taxes on income when it is deposited into the account. Then no taxes are due at the time of withdrawal.\n### Is It Permissible to Make Withdraws Early From My 401(k) and\/or IRA?\nWhile you are legally entitled to be able to make withdrawals from your retirement savings, it is never advisable to do so, as you will pay in penalties. That is why it is imperative that your regular savings plan not only includes savings for retirement but also for an emergency fund, just in case. END

TITLE: What is my Social Security Account? CONTENT: my Social Security Account: What It Is and Why You Need It\n----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nAs you may or may not have noticed, the Social Security Administration doesn’t mail out yearly statements anymore. Instead, they mail out statements every 5 years — 3 months prior to workers turning 25, 30, 35, 40, 45, 50, 55, and 60. Still, that’s an improvement over the period between 2011 and 2014 when no statements went out at all, regardless of age, due to budgetary constraints. Fortunately, you need not wait 5-year intervals to see your estimated Social Security earnings.\nGet yourself a my Social Security account and you can check the status of your benefits online anytime. Just keep in mind that, once you sign up for a my Social Security account, you will no longer receive paper statements at all. The same is true once you start receiving Social Security benefits.\n**What You Can Do With a my Social Security Account**\n-----------------------------------------------------\n**1) View Your Estimated Benefits**\nDo you have any idea of how much Social Security you will receive when you retire? my Social Security breaks it down for you, including how much you can expect to receive per month if you retire at 62, 67, or 70.\nNote, this is based on your _current earnings rate_, meaning the estimate can change according to your income going forward. If you make less than your current income going forward, your estimate will be lower; if you make more than your current income going forward, your estimate will be higher.\nYou can also see the estimated benefits for disability and survivor benefits. These numbers are estimates for _now_ — how much you would receive if you became disabled today and how much your survivors would receive in the event to of your death today.\n**2) See Your Earnings Record**\nThis is a pretty impressive document, as you can see a breakdown of your earnings for every year you have worked over the course of your lifetime. Make sure it’s accurate, though, as your earnings and taxes you’ve paid on them is what determines your benefits. If you don’t have records that go back that far, verify what you can.\n**3) Get a Copy of Your Social Security Statement**\nWould you like your own copy for easy reference? You can get a copy of your full Social Security statement. This includes all of the same information you can view on the website but in a PDF format that you can save and print right from your own computer. Our suggestion is that you save these documents to an external hard drive or on to a flash drive so you do not lose them. Saving them on to an flash drive will ensure you have this information even if your computer crashes. And, it makes this information safe from hackers. \n**4) Download Your Statement Data as an XML File**\nAre you using a software program to help with your financial and retirement planning? The XML file format can be useful for quickly and easily importing your Social Security data into say, QuickBooks. Also, this format is helpful if you are sending this information to your accountant.\n**5) Request a Replacement Social Security Card**\nThis is a secure 3-step process: 1) background information, 2) identity verification, 3) confirmation.\n**6) Get Proof You Do Not Receive Social Security Benefits**\nWhen you select this option, you’ll be redirected to a page that displays this letter immediately, with an option for you to print or save it.\n**7) Use the Help Center For All Sorts of Related Issues, Such As:**\n* Changing or correcting the name on your Social Security card.\n* Getting Social Security cards for newborns and children.\n* Applying for retirement.\n* Applying for disability.\n* Applying for Supplemental Security Income.\n* Applying for Medicare.\n**Security of Your Account**\n----------------------------\nAre you concerned about hackers accessing your online account? So are they, thus Social Security’s integration of Equifax verification into its authentication system.\n**Make Sure You’re In the Right Place**\n---------------------------------------\nIf you’re ready to create a my Social Security account, make sure you’re on the right website. Here’s a direct link to my Social Security and here is the address: END

TITLE: Medical Savings Account - Saving Money for Medical Expenses CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nIf you're like most Americans, you're lacking in two key areas that a medical savings account (MSA) may help you with; saving money, and paying out-of-pocket medical expenses. MSA's can help with both, though only if you meet the qualifiers established when health savings accounts (HSA's) were signed into law. Think of HSA's as an expansion of the MSA program, clearing the way for even more people to take advantage of this tax deferment opportunity for qualifying medical expenses.\nWhat is a Medical Savings Account (MSA)?\n----------------------------------------\nA medical savings account, or MSA, is an opportunity to cover your medical expenses with tax-free income. An MSA may only be established for individuals covered by a high-deductible health plan (HDHP). Whatever amount you (or your employer) contribute to the MSA throughout the year is considered tax-free income. It remains tax-free if and when you withdraw said funds to pay for qualifying medical expenses. These withdrawals count toward the HDHP deductible. Once this deductible has been reached via qualifying MSA withdrawals, the HDHP covers any additional medical expenses incurred the remainder of the year.\nMSA's were signed into law in 1996 under the Kassebaum-Kennedy bill during President Bill Clinton's administration. They were made available only to self-employed individuals or businesses with 50 or fewer employees. Because of these limitations, HSA's (health savings plans) were signed into law in 2003 — the same concept as an MSA, but clearing the way for anyone to take advantage of this tax-deferment program.\nWhat is a High-Deductible Health Plan (HDHP)?\n---------------------------------------------\nAn HDHP is a health insurance plan that comes with a higher deductible than most insurance plans. However, because the deductible is so high, the premiums are relatively low. MSA's must be set up in conjunction with an HDHP.\nWhat Are the Pros and Cons of an MSA?\n-------------------------------------\n**PROS:** Any out-of-pocket medical expenses you incur with a high-deductible health plan are tax-free, meaning you will not be taxed on whatever contributions\/withdrawals you make with your MSA throughout the year. If you are a relatively healthy person with few medical expenses, MSA's are a great way of saving tax-free money that you can access without tax or penalty once you reach retirement age.\n**CONS:** If you incur medical expenses on a regular basis, MSA's can be costly, as you are required to carry the HDHP. Your premiums may be low on the HDHP, but the deductible is so high that, even with tax-deferred payments via the MSA, you will have a hefty out-of-pocket expense. In other words, if you do have serious medical issues, you may be better served by a regular insurance plan with a higher premium, but with a lower deductible.\n### How Can I Qualify for an MSA?\nTo qualify for an MSA you must have been an active participant in the program prior to January 1, 2008. You may qualify from that date forward if, and only if, you became a participant in a high-deductible savings plan through a participating employer. The new alternative for individuals is the HSA (health savings account).\n### What is an Archer MSA?\nAn Archer MSA is simply a reference to the sponsor of the bill that established MSA's in 1996 — Congressman Bill Archer of Texas.\n### Who Makes Payments Into My MSA?\nIf your participation in an MSA is through your job, your employer makes contributions to the account. If your employer does not make such contributions, or you are self-employed, you make the contributions. However, at no time in a given year may and your employer both make contributions to your MSA.\n### Is There a Maximum Amount That May be Contributed to an MSA in a Given Year?\nYes, contributions to your MSA cannot exceed 75 percent of your HDHP's annual deductible. Contributions also cannot exceed the total income you received from the employer through whom you have your HDHP.\n### What if I Contribute More Than the Allowable Amount into my MSA?\nYou will be taxed for the excess contributions.\n### Under What Circumstances May I Withdraw Tax-Free Funds From my MSA?\nMost medical expenses qualify under the MSA guidelines, including basic medical care, dental care, vision care and long-term care needs. This excludes over-the-counter drugs not prescribed by a physician.\n### Must I Itemize my Deductions on my Tax Return in order to Receive Deductions for MSA Contributions?\nNo, you need not itemize your deductions in order to claim tax-deferred contributions to an MSA. However, you must report your contributions on Form 8853.\n### If I Change Employers, Do I Lose the Contributions I Have Made to my MSA?\nYour MSA is mobile so you will not lose the funds you have contributed with an employer, whether you change employers or simply leave the work force. That said, you cannot make further contributions to the MSA unless you go to work for an employer that has a qualifying MSA program.\n### What Happens to my Contributions if I do not Withdraw the Funds for Use by the End of the Year?\nUnused MSA contributions roll over to the next year.\n### Can I Withdraw MSA Contributions from the Account for Non-Medical Expenses?\nYes, you may withdraw MSA funds at any time. However, you will be taxed and penalized if the funds are used for non-qualifying medical purposes.\n### What Happens to my Contributions Once I Reach Retirement Age?\nOnce you reach age 65, any funds you have in your MSA may be withdrawn, tax-free. Any non-qualifying withdrawals made before that time (for non-medical expenses) result in taxes and penalties.\n### What Happens to the Funds in my MSA in the Event of my Death?\nYour MSA is automatically transferred to your named beneficiary. If it is your spouse, it becomes his or her MSA. If it is not your spouse, the MSA is dissolved and the funds are made available to the beneficiary, but as taxable income.\n### What is a Medicare Advantage MSA?\nA Medicare Advantage MSA is simply an MSA plan available to Medicare participants. Medicare makes the contributions to this type of MSA account. END

TITLE: Health Savings Account - Tax-Advantaged Medical Savings Account CONTENT: Health Savings Account (HSA) — Tax-Free Account for Medical Expenses\n--------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nIf you are a relatively healthy person looking for a way to help you save money for retirement, a health savings account (HSA) may be for you. It's not only a great way to claim tax-free income, but also to set aside a nice chunk of change for coverage of unforeseen medical expenses, as well as a safety net of support for your retirement years.\nWhat is a Health Savings Account (HSA)?\n---------------------------------------\nA health savings account, or HSA, is an opportunity to cover your medical expenses with tax-free income. An HSA may only be established for individuals covered by a high-deductible health plan (HDHP). Whatever amount you (or your employer) contribute to the HSA throughout the year is considered tax-free income. It remains tax-free if and when you withdraw said funds to pay for qualifying medical expenses. These withdrawals count toward the HDHP deductible. Once this deductible has been reached via qualifying HSA withdrawals, the HDHP covers any additional medical expenses incurred the remainder of the year.\nHSA's were signed into law in 2003 under the Medicare Prescription Drug Improvement and Modernization Act under President George Bush. They were created to expand upon medical savings accounts (MSA's).\nWhat is a Medical Savings Account (MSA)?\n----------------------------------------\nMSA's were signed into law in 1996 under the Kassebaum-Kennedy bill during President Bill Clinton's administration. They were made available only to self-employed individuals or businesses with 50 or fewer employees. Because of these limitations, HSA's (health savings plans) were signed into law in 2003 — the same concept as an MSA, but clearing the way for anyone to take advantage of this tax-deferment program.\nWhat is a High-Deductible Health Plan (HDHP)?\n---------------------------------------------\nAn HDHP is a health insurance plan that comes with a higher deductible than most insurance plans. However, because the deductible is so high, the premiums are relatively low. HSA's must be set up in conjunction with an HDHP.\nWhat Are the Pros and Cons of an HSA?\n-------------------------------------\n**PROS:** Any out-of-pocket medical expenses you incur with a high-deductible health plan are tax-free, meaning you will not be taxed on whatever contributions\/withdrawals you make with your HSA throughout the year. If you are a relatively healthy person with few medical expenses, HSA's are a great way of saving tax-free money that you can access without tax or penalty once you reach retirement age.\n**CONS:** If you incur medical expenses on a regular basis, HSA's can be costly, as you are required to carry the HDHP. Your premiums may be low on the HDHP, but the deductible is so high that, even with tax-deferred payments via the HSA, you will have a hefty out-of-pocket expense. In other words, if you do have serious medical issues, you may be better served by a regular insurance plan with a higher premium, but with a lower deductible.\n### How Can I Qualify for an HSA?\nYou qualify for an HSA if you are covered under a high-deductible health plan (HDHP), either by your employer or through a plan you pay into yourself.\n### Who Makes Payments Into My HSA?\nIf your participation in an HSA is through your job, your employer makes contributions to the account. If your employer does not make such contributions, or you are self-employed, you make the contributions. Unlike an MSA, an HSA allows both you and your employer both to make contributions to your HSA in the same calendar year.\n### Is There a Maximum Amount That May be Contributed to an HSA in a Given Year?\nYes. The IRS recently announced the new 2018 Health Savings Account index figures. Maximum contribution levels to your HSA are:\n* $3,450 for a single person\n* $6,900 for a family\n* $1,000 for 55+ (HSA catch-up contributions)\n### What if I Contribute More Than the Allowable Amount into my HSA?\nYou will be charged income tax for the excess contributions.\n### Under What Circumstances May I Withdraw Tax-Free Funds From my HSA?\nMost medical expenses qualify under the HSA guidelines, including basic medical care, dental care, vision care and long-term care needs. This excludes over-the-counter drugs not prescribed by a physician.\n### Must I Itemize my Deductions on my Tax Return in order to Receive Deductions for HSA Contributions?\nNo, you need not itemize your deductions in order to claim tax-deferred contributions to an HSA. However, you must report your contributions on Form 8853.\n### If I Change Employers, Do I Lose the Contributions I Have Made to my HSA?\nNo, your HSA is mobile, meaning you do not lose the funds you have contributed with an employer, whether you change employers or simply leave the work force. That said, you cannot make further contributions to the HSA unless you go to work for an employer that has a qualifying HSA program.\n### What Happens to my Contributions if I do not Withdraw the Funds for Use by the End of the Year?\nUnused HSA contributions roll over to the next year.\n### How do I Make Withdrawals From my HSA?\nWithdrawal methods vary depending on your HSA, from debit cards, to checks, to a reimbursement process. And there is no approval system for withdrawals. You simply take out what you need when you need it. However, for the funds to be considered tax-free, the withdrawals must be for qualifying medical expenses, for which you must retain and provide verifying documentation.\n### Can I Withdraw HSA Contributions from the Account for Non-Medical Expenses?\nYes, you may withdraw HSA funds at any time. However, you will be taxed on the income and charged a 20 percent penalty if the funds are used for non-qualifying medical purposes.\n### What Happens to my Contributions Once I Reach Retirement Age?\nOnce you reach age 65, any funds you have in your HSA may be withdrawn, tax-free. Any non-qualifying withdrawals made before that time (for non-medical expenses) result in taxes and penalties.\n### What Happens to the Funds in my HSA in the Event of my Death?\nYour HSA is automatically transferred to your named beneficiary.\n### How are HSA's Similar to MSA's?\nHSA's are very similar to MSA's in that both enable you to contribute tax-free funds to a savings account - funds that may be deposited and withdrawn tax-free if spent on qualifying medical expenses OR may be withdrawn tax-free at retirement age. Both also allow you to roll over unused funds from year-to-year.\n### How are HSA's Different from MSA's?\nWhile an MSA was only made available to small businesses of 50 or fewer employees, or the self-employed, HSA's are available to anyone who also carries a high-deductible health plan (HDHP). Also, unlike MSA's, HSA's allow for both you and your employer to make contributions to the account within the same calendar year. The contribution limits for HSA's are also higher than that of MSA's.\n### Can I Switch From an MSA to an HSA?\nYes, you may roll over the funds in an MSA into an HSA.\n### Can I Roll Over the Funds in my HSA to a Different HSA Account?\nYes you can.\n### Can I Roll Over my HSA Funds into an IRA?\nThe Tax Relief and Health Care Act of 2006 does allow for a one-time rollover of your HSA funds to an IRA, allowing you to fund up to one entire year's worth of your maximum allowable HSA contribution. END

TITLE: Why Parents Can Not Save For College Education CONTENT: Why Parents are Not Able to Save for College and Ways to Help\n-------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nLack of disposable income is the main reason given for why parents are saving less for their child's college education. According to a recent study by Sallie Mae, parents who are saving money for college are saving less than ever before. The average amount of money being socked away fell to $10,040 in 2015 from $13,408 in 2014 and of these parents who are able to save some money, 61 percent of them blame the low amount of savings on lack of money.\nDecreasing salaries, increasing cost of utilities, gas, and food are all contributing to the lower disposable income for mom and dad and the reason why they are putting less into a saving account for college. We will discuss some strategies you can use to help jump start a savings plan for your child's college education.\nReasons for Decline in College Savings\n--------------------------------------\nSaving for college is a simple matter of dollars and cents and very often it is one of the hardest things to get started. Often times parents get overwhelmed with having to pay for day to day expenses and when it comes time to think about putting away 10 percent of their income into a saving account, it just doesn't get done. If that sounds like you, then change your goals to be more reasonable and attainable based on your current circumstances. If you can only save 2 percent of your income a month, then start with that amount and you can always adjust it later. Lowering your expectations a bit can lessen the stress you may be putting on yourself to save as much money as possible.\nSetting unreasonable goals is the first reason for the decline in college savings, the other is finding the money to put into the account in the first place. If you have worked up a budget so you know where all of your money is going each month, look for some places where you can cut back to make a little extra money available. For instance, do you really need to spend $200 on cable TV each month, $80 a month for a pool maintenance person, or $100 month on Starbucks coffee? Making some little adjustments to your spending habits can put a little extra money into a college savings account. You will be surprised at places you can cut back and you will not even miss these things once they are gone.\nWhere to Put Your Money \n------------------------\nNow that you have a reasonable goal for your monthly contribution, you now need to put the money into a place where it will grow the fastest. Recent statistics show about half of American families that are saving for college use a general savings account. Just 27 percent utilize a tax-advantaged account, like a 529 college savings plan. Let's go over some options you have when it comes to saving money for college tuition.\n### 529 Plans\nThe 529 plans are a great way to save for college for the same reason your 401(k) plan is a great way to save for retirement. Namely, income tax savings. Like a qualified retirement plan, earnings in these plans grow tax-free. Every state offers some type of 529 plan, either a college savings plan, prepaid tuition plan, or both.\nUnlike your 401(k) at work, there’s no federal tax deduction for 529 contributions. But two-thirds of states offer a state tax deduction for residents and these six states, Arizona, Kansas, Maine, Missouri, Montana and Pennsylvania, offer a tax break for any state’s plan.\n### College Savings Plans\nThese plans are very similar to tax-advantaged retirement plans, such as 401(k)s. You put in as much as you’re allowed, choose an investment option, then hope your contributions earn enough to meet your needs when college rolls around. Earnings are tax-free if used for any qualified college expense, including tuition, fees, and room and board. If one kid ends up skipping college, you can substitute a sibling, or even use the money for yourself if you go back to college.\n**Drawbacks**: If you end up not using the money you put away in a 529 plan, you won’t lose it. But you will pay a 10 percent penalty and income taxes on the earnings (not the principal) for any non-education withdrawal. So you want to be fairly sure someone in the family will ultimately go to college.\nAnother drawback is that these plans also not very flexible. Investment options are limited and can typically only be changed or transferred to another plan once a year.\n**Tips**: If you live in a state with income taxes, you’ll obviously want to use your state’s plan if it offers a state tax deduction. If you’re able to shop around among various states, however, look for plans with low expenses. As with your 401(k), low expenses mean higher earnings.\n### Prepaid Tuition Plans\nA college savings account is simply a tax-advantaged place to accumulate money for a specific purpose. Also like retirement plans, there’s no guarantee that when the date arrives to use those savings, they’ll be enough. But, a prepaid tuition program eliminates that doubt by guaranteeing that if you deposit today’s tuition, it will pay the future tuition, no matter what happens.\nThere are two types of prepaid tuition plans: those offered by states, designed to pay the tuition of in-state public universities, and those offered by private colleges.\n* State plans are designed to pay the tuition for public schools within a specific state.\n* Prepaid tuition plans sponsored by specific private universities, you can check them out at here.\n### Roth IRA\nWhat does a Roth IRA have to do with funding an education? Another provision of these accounts is that you can withdraw your original investment before retirement age without incurring a penalty. Roth rules allow you to withdraw your original investment to pay for your child's education without penalty.\nOne potential drawback: For tax year 2017, you can only contribute the maximum to a Roth if your modified adjusted gross income is less than $118,000 for singles and $186,000 for joint filers.\n### Summary\nWhen it comes to which of these savings options is best, each one has advantages and drawbacks. They all depend on factors such as where you live, your income and your ability to save. No matter what you decide, the most important thing you can do is start early and make your contributions automatic. That’s the way to both increase your odds of saving enough and getting there as painlessly as possible. END

TITLE: Individuals Who Are Unbanked and Underbanked CONTENT: No Checking or Savings Account? How to Survive Without Using a Bank\n-------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nIn a press release issued by the FDIC (Federal Deposit Insurance Corporation) in October 2016, the number of U.S. households without a bank account fell significantly in 2015 to seven percent — the lowest in the survey's history. Even with this good news, not all demographic groups saw a decrease. Unbanked rates for Asian households increased from 2.2 percent in 2013 to 4 percent in 2015. Why are there still so many people without bank accounts? Because too many people still do not have a credit score and access to financial services necessary to buy a home, build a business, or send children to college. Many studies have given credence to the theory that checking and savings accounts are not right for everyone. At the end of this article, we will give you some tips on how to find the best services for operating without a bank account.\nUnbanked and Underbanked Consumers\n----------------------------------\nWhat do the terms **_Unbanked_** and **_Underbanked_** mean? An **unbanked** person is someone with no bank account of any kind: no checking, savings or credit card. **Underbanked** means a person who has some sort of bank account but still uses services like check cashing, money orders and payday loans.\nThese unbanked and underbanked consumers represent a considerable market opportunity for financial services companies. The unbanked and underbanked bought upwards of $3 trillion of goods and services with cash and money orders. Too often, these consumers pay a premium to get access to their funds at fringe financial outlets.\nWho is Likely to be Unbanked or Underbanked?\n--------------------------------------------\nGenerally low income people do not have checking accounts, while low to middle income people are more likely to fall into the underbanked segment.  Job loss, income decrease or loss, lower education, and younger Americans seem to be the demographic composition of those who fall into the unbanked or underbanked categories.\nWalmart has been adding financial services designed to cinch its relationship with the unbanked by recently offering a new prepaid debit card for its \"credit-challenged\" customers. Walmart is providing a one percent cash back bonus for consumers who use its prepaid Visa to buy gasoline, another step in its long, concerted effort to build loyalty among lower income consumers.\nReasons Why People are Underbanked or Unbanked in the U.S.\n----------------------------------------------------------\n* Distrust of the banking system.\n* Cannot maintain sufficient balances to avoid high monthly fees.\n* Write too few checks to need a checking account.\n* Have too little income to justify a savings account.\n* The decline of bank branches in many lower-income and inner-city neighborhoods has made a banking relationship inconvenient for many consumers.\n* Have no Social Security Number. Believe it or not there are 20 million adults in this country who do not have a Social Security Number.\nTips for Using Un-banking Services\n----------------------------------\nIf you are one of the millions of Americans not tied into the banking system, you can do business using other methods. Just be careful as there are a lot of businesses willing to prey on you and others so keep these helpful tips in mind:\n1. **Need a Loan** — You can use Peer-to-Peer lending sites, which require no credit. Some of the big ones: Prosper.com and VirginMoney. There's also GreenNote, which provides alternative student-loan funding sources such as friends, family and alumni.\n2. **Check Cashing** — Walmart offers check cashing for a $3 per check flat fee. If you compare this with checking account fees of $10 per month and you are paid twice a month, check cashing may be a cheaper alternative to banking. There are many check cashing stores around that will charge mush higher fees. Make sure to know the fees up front before you cash your checks.\n3. **Alternatives to Credit Cards** — A great alternative to a credit card is a prepaid card. Shop around online to find a card with the lowest setup fee (yes, there is a setup fee involved.) You can get one online and reload it, or buy one from a store. This way, you can use plastic instead of cash.\n4. **Debit Cards** — There are debit cards tied to non-banking financial institutions, such as PayPal. This may be a good option for those who buy and sell online.\n5. **Secured Cards** — Secured credit cards are available from various banks. Your credit limit depends on your deposit (any bank will give you a savings account as long as you have 2 IDs — it's a checking account which is difficult to get).\n6. **Checking Accounts** — You can find a list of non-ChexSystems banks listed on the internet. This just means these banks will not pull a ChexSystems report on you before giving you a checking account. That may be a good thing if you have had a rough time with another bank.\nBanks and credit unions are rapidly addressing the problem of unbanked and underbanked households in the U.S. by developing checking and savings accounts targeted towards low-income households. These new products will hopefully help these consumers and save them money in the long run by offering financial services with lower fees. END

TITLE: Individuals Who Are Unbanked and Underbanked CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END