DrBoyceFamilyFinance

Richer Households

2009-12-11T20:54:00.001-08:00

Posted by Kenny Hernandez

NEW YORK (CNNMoney.com) -- Household net worth in the United States rose for the second quarter in a row, growing 5% to an estimated $53.4 trillion in the third quarter, the Federal Reserve said Thursday.

The $2.7 trillion rebound in net worth, which is the difference between a household's assets and liabilities, comes as stock prices have rallied this year, boosting the value of Americans' investment portfolios.

Stock holdings rose by nearly 17% to $7.4 trillion, according to the central bank's quarterly flow of funds report.

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Bonus Tax?

2009-12-11T20:36:00.000-08:00

Posted by Kenny Hernandez

NEW YORK (Fortune) -- The odds aren't on its side, but a bonus tax could happen in the United States too.

The United Kingdom this week slapped a 50% tax on bankers' bonuses above about $40,000. The one-time tax will be paid by all banks with employees in the country. France pledged it would adopt the same policy, while Germany's chancellor called the idea "charming."

Still, the bonus tax seems like a long shot on this side of the Atlantic, where bankers wield immense power. But when Wall Street starts handing out giant year-end paychecks at a time of 10% unemployment, all the campaign donations in the world may not keep legislators facing tough re-election fights from turning on their banker chums.

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Divorce may hurt Tiger's finances even more

2009-12-11T20:22:00.001-08:00

By Jameel Murray

Tiger Woods is in a soup bowl of controversy. The world’s greatest golfer’s scandal has affected his image as well as his finances. Recently, Gilette and Gatorade have considered dropping Tiger Woods from upcoming endorsement projects. It is reported that Woods’s deal with Gillette is worth around $20 million while a deal with Gatorade is valued at $100 million. Although it is extremely rare to see Tiger end up in a situation where he is considered “broke,” a divorce can further impact Tiger’s finances.
Last week Woods’s wife Elin Nordegren decided to purchase a $2million house in Sweden, possibly indicating the couple’s divorce. Reports have also stated that Nordegren has considered bolstering her prenuptial agreement. Financial advisers have stated that the couple should educate themselves on the household’s finances before filing for a divorce. According to Greg Merlino, an Ameriway Financial Service adviser, if there is dishonestly in a marriage, there is usually dishonesty in the financial situation of the household. Advisers also state that spouses should have an idea of the finances readily available prior to divorce. Whether or not Tiger and his wife decides to file for divorce, Tiger’s financial position would take a significant hit.

Sources: http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20091210/FREE/912109980

http://247wallst.com/2009/12/11/from-scandal-to-finance-tiger-woods-top-financial-pieces/

http://www.abcnews.go.com/Business/tiger-woods-sponsorships-risk/story?id=9302257&page=2

Wedding Woes

2009-12-11T15:14:00.001-08:00

By: Kelsey Hoffman

It’s that big day and all you want to think about is how important this day is to the rest of your life. You want it to be special, spending the rest of your life with the person you love. Your friends and family are around to watch the beautiful ceremony with the extravagant reception to follow. It’s all well and good until you realize how much money really went into this one day.

Many couples go into the wedding planning procedure with a set plan and budget. Couples can spend any amount of money they desire on their wedding, extravagant ones costing more than $100,000. With the recession now though, more couples are taking into account their budgets and opting for smaller and less luxurious ceremonies. Some places are offering “elopement” packages that cost anywhere between $1,000-$2,000 for a couple to get married with 20 of their closest friends and family. These packages provide a way for people to still celebrate but in a more budget sensitive way.

Other ways of saving money on your wedding include of course cutting down on the amount of people you invite, wearing a dress maybe your mother passed down to you, making the food yourself, and making it a cash bar event.

Sources:
http://www.associatedcontent.com/article/2466082/four_winter_wedding_favors_for_100.html?cat=
http://www.baltimoresun.com/features/bal-md.pa.weddings30nov30,0,3763295.story
http://www.associatedcontent.com/article/2461724/budgetfriendly_wedding_ideas_inexpensive.html?cat=23

Phones are getting out of Hand

2009-12-11T14:08:00.000-08:00

By: Kelsey Hoffman

With the increase in the use of cell phones, home landlines are being used much less frequently. Everyone can be contacted at the click of a button now, and it will go straight to that person’s personal cell phone. No need to ask “Is Sally there please?” anymore. Landline costs have decreased dramatically all over the world with the increased use of cell lines. Phone companies are trying to cut their costs in order to stay competitive. KT, Korea’s largest telephone company just pulled the plug on their business model claiming that with all the new technology and new phone uses that their structure and way of doing business was no longer useful. “The company will replace all of its landline office phones with mobile and voice over Internet protocol (VoIP) devices when it opens its new southern Seoul office in February.”

Kids are also getting access to cell phones at a very young age now. Parents are worried their kids won’t be able to function without one, even at the age of 8. You can go into any elementary school now and I bet you kids have cell phones. Cell phone companies are even manufacturing smaller and simpler phones now for kids, ones that have four buttons including one with a house on it for their home number, and one with a picture of a cross on it for emergencies. These may be helpful, but kids are being exposed to these technologies too early.

Sources:
http://www.homephonechoices.co.uk/home-phone-bills-are-down-by-46-a-year-101220092.html
http://www.koreatimes.co.kr/www/news/biz/2009/12/123_56555.html
http://www.homephonechoices.co.uk/kids-are-racking-up-colossal-phone-bills-10122009.html

5 Steps to simplify the Financials in Divorce

2009-12-11T12:49:00.000-08:00

By Shawn Chandok

They say you should always think carefully and evaluate every minor detail about who you marry. They also say that over 50% of all marriages end in a divorce. It comes to no surprise to hear that a large percentage of divorce cases are due to financial problems. Here are 5 simple steps to help make the financial breakup easier:
1. Get your credit report: Make sure you retrieve your credit report from all 3 companies (Experian, TransUnion and Equifax) prior to the trial so it defines your current loan balances.
2. Open an individual bank account prior to the trial because it is easier to get credit while you are still legally own joint assets.
3. Claim your personal assets: Make sure you walk out of the divorce with your personal assets that you came in with
4. Check your retirement: Make sure your future is safe. Contact social security and if possible opt in for COBRA temporarily.
5. Start Living Again: Assuming you survived the divorce with clothes on your back, start living life but learn from your mistakes. Don’t have a midlife crisis now that you’re single again and waste money on exuberant splurges, instead try to be sensible while enjoying simultaneously. Consider hiring a financial planner at least 3 months after the divorce in order to clean up any mess no your credit report.

Source#1
Source#2
Source#3

The Cost of Owning a Dog

2009-12-10T23:18:00.001-08:00

Posted by Chris O'Sullivan

When buying a dog, most people do not think about the annual cost this purchase will generate. Fido may be cute, but in many cases he is also more expensive than the price tag may indicate. The reality is that most people grossly underestimate the cost of owning a dog. This can turn out to be a dangerous for both the animal's health and your wallet.

One key mistake people make is foregoing the cost of pure breed dog for a cheap mutt. While you may save up front, the costs you will incur over the lifetime of the dog will most likely exceed this difference. A poorly bred dog can have many health problems including arthritis, poor eye sight, and allergies. Vet bills can cost you thousands of dollars over the lifetime of a dog, and many people simply cannot afford it, leaving their dogs in a state of suffering.

Thousands of dogs are put to sleep every year because there owners can no longer take care of them. This is an extremely sad situation. The average cost of owning a dog exceeds $10,000 over the lifetime of the animal. If you are not ready to make this commitment, do not buy a dog.

Sources:
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Recession putting Strains on Marriage

2009-12-10T19:42:00.000-08:00

Posted by Chris O'Sullivan

The economy may be putting a strain on more than just family finances. Marriages are also being tested in what has become one of the worst economic recessions in history. Tensions are sure to rise during these times as spouses struggle to pay bills, adjust to job loss, or maybe even forced to leave their homes. 75% of those who have lost their jobs are men, which translate to a lot of distressed wives.

According to one study, couples who report disagreeing about money matters once a week are about twice as likely to divorce compared with couples who disagree about money less than once a month. This is not a surprising statistic.

The irony of this situation is that the divorce rate is actually falling. It declined to 16.9 divorces per 1,000 married women in 2008 from 17.5 divorces in 2007 (a 3% drop), after rising from 16.4 divorces per 1,000 married women in 2005 (a 7% increase). The major reason for this is that couples who have fallen on financial hardship simply cannot afford to pay for a costly divorce. Divorces involve many expenses including lawyer fees which can often exceed to implied cost of sticking it out.

Sources:
1
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3

High Cost of Children

2009-12-08T18:59:00.000-08:00

By: Nicole Nelson

It’s known to most people that having a child bears a big financial responsibility. But exactly how big is this financial responsibility? The United States Department of Agriculture projects that the range of raising a child to age eighteen is from $55,000 to $365,000. These figures depend on location and income with the highest costs coming from families in the northeastern part of the United States. A two-parent, middle-income family has an average cost of raising a child to 18 years old in 2008 of $221,190. Some things that these figures do not include are college education, the money lost by staying at home instead of working and the cost of childbirth. Parents do get a cost savings when having more than one child. That means parents that only have one child spend 25% more than families with two children. With three children, parents are spending 22% less on each child. Also, although food and clothing are cheaper now housing and health care cost more than it used to. Although children, from these statistics seem to be racking up the bill, they do have some personal positive effects (besides the fact that they are your children). When helping your children with their homework, you can brush up on your lost skills. By throwing around a baseball you can work on your own arm. So although the cost of raising a child has increased, families around the world still add to their families’ every day.

source one

source two

source three

A unique debt plan for parents in the UK

2009-12-08T17:39:00.000-08:00

Posted by Ahmed Al-Salem

A new survey has revealed that mothers, rather than fathers, are more stressed about the arrival of a new baby. The expense of expanding a family means that parents turn to unsecured debt and constantly rely on credit cards and personal loans. This will not help a family’s future financial security.

A unique debt plan that targets parents who are in trouble is an IVA. An IVA or Individual Voluntary Arrangement, is a fixed term repayment plan, designed to allow someone with serious debt problems the opportunity to repay their creditors whilst avoiding bankruptcy.

A new poll from Aviva shows that a fifth of first-time dads are sorting out family finances during their partner’s pregnancy, while over a quarter are worried about the dent in their household coffers in the first six months of their child’s life.

Louise Colley, head of protection for Aviva, says: "As a parent myself, I found that some basic financial behaviours can help you to feel much more in control and prepared for supporting a baby."

An IVA is a formal agreement, which first came into force on 29th December 1986 as part of the Insolvency Act 1986, bringing with it major changes to personal insolvency in the UK.

IVAs are available to all people who live in England, Wales or Northern Ireland. People in Scotland have their own version of the IVA, which is known as a Scottish Protected Trust Deed.

Source 1
Source 2
Source 3

Raising Children in Today's Economy

2009-12-08T13:58:00.000-08:00

By Eric Gursky
Having and affording children in this economy can be very tough on some families. With inflationary costs increasing the prices of almost all daily commodities and college becoming very expensive, budgeting is more relevant now that ever. Start saving early! If there is one thing I have learned in this course it's that the opportunity cost lost by not saving at least 10% of your money early in life can set you back later. It will help you plan out a budget to pay for all the incurred expenses children bring upon.
Probably the biggest expense you'll incur once the baby is born (excluding a college education) is for child care, which is especially expensive for infants. Even when your child is old enough to go to school, you'll have after-school care, summer camps, and other related expenses.
Any parent facing the prospect of keeping their kids clothed, healthy, well-educated, and maybe just a little bit spoiled is looking at some scary costs. That's even before we start talking about college, where tuition today tops out above $20,000 a year at many private schools - and who knows what it will be when your little Einstein is 18.
These are just some of the main costs associated with kids, spending money and unexpected injuries and costs will occur and you will need to plan for them to have enough money to support yourself as well.

Source 1
Source 2
Source 3

Survey: 40% of Americans Curtailing Holiday Spending Due to Health Care Costs

2009-12-08T10:38:00.000-08:00

Posted by Jorden Meltz

It’s not just the Senate that is debating health care. An opinion survey out this week finds that two out of five Americans plan to spend less this holiday season because of rising health care costs, and three out of ten say health care costs have led to arguments and tension within the family.

The survey, by Misericordia University in Dallas, PA and Braun Research, was undertaken, says the school, to determine how health care issues impact individual budgets and relationships. The researchers contacted more than more than 1,000 Americans by telephone between Nov. 6 and Nov. 16.

Meanwhile, a new Thompson Reuters survey found that 60% of the public supports a publicly financed health insurer (i.e., the “public option”), and 35% strongly believe the quality of health care in the U.S. 12 months from now will be worse than it is today. Only 11.9% strongly believe it will be better.

The Misericordia survey found that, in addition to decreased holiday spending and increased tensions, Americans report that their top concerns with health care reform include the cost to future generations and impact on the federal deficit, the cost of out-of-pocket expenses and the accessibility of insurance coverage. Parents and those who classify themselves as “conservative” are more likely to be sensitive to the possible negative impacts of health care reform while parents in general remain more concerned than others with quality and access to care.

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Isaac Asks: Should He Have Delayed College?

2009-12-08T09:42:00.000-08:00

ISAAC: The first snow has fallen on my college campus, and the sky has become a consistent gray. As the end of my first semester nears, essays are piling up and final exams loom in the near future. The novelty of college has worn off.

As I sit in the library, I look over an email that one of my best friends from high school sent me a couple of weeks ago. Instead of college, he has been helping out in an elementary school in Ecuador. He tells me he's having the time of his life exploring the beaches, mountains and jungle of the country by bus.

Posted by Nicholas Vanikiotis

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Cut Your Grocery Bill: Ten Money Saving Grocery Shopping Tips

2009-12-08T05:58:00.000-08:00

Posted by Leah Gorham

By Donna L Montaldo

By following the 10 tips below, alert shoppers can save up to $300 a month off their grocery bills. Are you ready to start trimming the fat off your food bills?
A Little Homework
Planning before you head off to the supermarket will help you shop more economically. Take the time to do a quick inventory of your kitchen to determine the food that you need. Prepare your shopping list and make notations of applicable coupons that you may want to use. Read the newspapers and circulars to find the best deals.

Choosing the Right Store
For basic grocery needs many grocery stores now offer excellent product and price selection, frequent shoppers programs and double coupon days. However, when buying in bulk you may want to tackle the warehouse clubs or superstores. Non-perishable items are often at unbeatable prices at such stores. For the best prices on health and beauty products check the national drugstore chains and superstores.

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Meet the Newlyweds

2009-12-06T14:24:00.000-08:00

By Laura Reginelli

Generally people associate the term newlyweds with weddings, bliss, love and just an overall happy time in life. On the surface things may seem like smooth sailing and perfect; however, without the proper planning for joining finances, your marriage may be doomed to hit one or two financial speed bumps ahead. There are quite a few common mistakes the newlyweds make when it comes to their finances but there are ways to avoid them if you stay conscious.

Stop thinking about your money in a selfish manner. You are now married to another individual and your money should be thought of in the terms of “ours.” Hence your purchases should also be thought of in these terms. Make sure to consult with your spouse before making a large purchase. Discuss what you deem as luxury and necessity items in order to eliminate some future conflicts.

Although this can be somewhat frightening, talk about your financial histories, where you made mistakes, how your making improvements and where your weaknesses lie. It is important to be understanding in all aspects of a relationship, including when it comes to finances as well.

Like all other financial decisions in your life it is extremely important to set goals as well as a budget. These will act as benchmarks to determine how well you are doing financially as a couple. The couple that saves together, stays together.

Sources: http://www.debtguru.com/finances/newlywed-finances

http://www.vcu.com/content/20090511/newlywed-finances-things-consider

http://www.fool.com/personal-finance/general/2007/06/29/newlywed-financial-boot-camp.aspx

Being Financially Prepared for a Family

2009-12-06T11:56:00.000-08:00

By Laura Reginelli

In many people’s lives the family represents their core, their strength, their everything. Having a family is a joyous thing but that still doesn’t mean that families lack financial problems. With the economic troubles of today it is important that families remain smart about their finances and make well-informed decisions. There are several hints that can help families stay out of the red and get by without major financial worries.

The first and most important step to planning your family finances is to set a budget. By having a budget you will be able to see where your money should be spent and then be more inclined to stick to it and save money. Also when budgeting your money you should allot for some to be saved and set some aside for emergencies that may require more many than you thought.

When making everyday common purchases, it is imperative that you make wise decisions that reflect your budget. Many experts using a conscious spending tactic to help stick to that budget. According to iVillage, “Conscious Spending works by minimizing the money you spend on the things you enjoy less, in order to free up money for the things you enjoy more… The essence of Conscious Spending is ensuring that your money is spent in a way that supports you. What counts is congruency: whether your spending fits your wants and your values.”

Sources: http://parenting.ivillage.com/mom/finances/0,,8z30,00.html

http://www.ehow.com/how_2120099_manage-familys-finances.html?ref=fuel&utm_source=yahoo&utm_medium=ssp&utm_campaign=yssp_art

http://www.ehow.com/topic_1106_family-finances.html

The Unforeseen Costs of Raising a Child

2009-12-05T14:17:00.000-08:00

Posted by: Janielle Viggiano

Raising a child is more expensive than most could imagine. The older your child gets the more5 expensive they are. Housing is the biggest single expense of raising children, while food accounts for 158%-20% of the overall expense. Transportation accounts for 13%-14% of the total, clothing is about 6%, healthcare is only 5%-7%, childcare/education accounts for about 7%-11% not including college costs, and lastly miscellaneous takes in 10%-12% of the total cost.

According to CBN News, “A new government study reveals middle-income families with a child born last year will spend about $221,000 raising the child through age 17. Adjust for inflation and that number climbs to nearly $300,000. That's $13,000 each year and that doesn't include the cost of college (2009).”

A new study shows that more American young adults are becoming “boomerang kids”- that is moving back in with your parents to save on expenses. According to Boston.com, “Luckily, if you have more than one child, you get a bit of a bulk discount: People with two children spend about 25 percent less on the second child, and those with three or more spend 22 percent less one each one, a Time Magazine article points out. That’s because some of the biggest expenses- housing, healthcare, and transportation—don’t have to be re-purchased when another child joins the family (2009).”

Sources: http://moneycentral.msn.com/content/CollegeandFamily/Raisekids/P116306.asp

http://www.cbn.com/cbnnews/finance/2009/August/How-Much-Money-Does-it-Cost-to-Raise-a-Child/

http://www.boston.com/community/moms/blogs/child_caring/2009/11/how_much_does_it_cost_to_raise_a_child_1_million.html

Financial Planning for Babies

2009-12-05T12:58:00.000-08:00

By Laura Reginelli

Having a child is a big step in life. There are many things that need to be considered when making this decision. Not only do you need to be mentally and physically prepared to have a child but you also must be financially ready as well. Having a child is one of the most expensive things that one could do in their lifetime. The costs are seemingly neverending. So how does one prepare to take on the financial responsibility that having a child carries? Well keep reading to find out.

1. Know what your money is going every month, what can be cut down on and where savings can be made. It is important to have a budget and stick as closely as possible to it.

2. Don’t buy the whole store. Remember that you will receive plenty during the baby shower so there is no need to overspend.

3. Determine how you will make up for the loss of one income when you or your spouse goes on maternity leave. How much will you need to make up for? Where can you get this money from? Does your employer pay for maternity leave?

4. Try to pay off any debt that you may have before having the child. Babies are expensive and you want to eliminate any source of debt beforehand.

5. Find a proper method to save for your child’s future.

Before having a baby it is important for you to know where you stand financially and if you can handle the financial affects of having a child.

Sources: http://www.ehow.com/how_4847090_prepare-financially-baby.html?ref=fuel&utm_source=yahoo&utm_medium=ssp&utm_campaign=yssp_art

http://financialplan.about.com/cs/familyfinances/a/CanYouAffordKid.htm

http://www.bankrate.com/brm/news/special/20030815a1.asp

How Cheating Affected Tiger's Finances

2009-12-05T12:18:00.000-08:00

Posted by: Laura Reginelli

In a lakeside Florida mansion, marriage counsellors, lawyers and public relations advisers are engaged in a bizarre and expensive round of shuttle diplomacy between the world's richest athlete and his furious wife.

For Tiger Woods, a control freak accustomed to calling the shots both on the fairway and in his private life, the unravelling of an image as carefully manicured as a country club green is both agonising and self-inflicted.

The scandal of his philandering is so damaging to his "Mr Clean" brand that the publicity-averse superstar is even considering an invitation to appear on the sofa of talk show queen Oprah Winfrey, The Sunday Telegraph has learnt.

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Holiday Budgeting

2009-12-05T11:43:00.001-08:00

By Leah Gorham

In the midst of a recession it is especially important to budget for holiday spending. In order to ensure that finally finances aren't derailed as a result of overspending on gifts and other holiday festivities, a budget is a useful tool. First, determine what you can afford to spend and set this figure as your overall holiday spending limit. Moreover, set a limit for each area of holiday spending, such as food, gifts, and decorations. Write these figures down and track your spending throughout the season. Don't panic if you overspend in one of the categories; just scale your spending back in another category to make up for it.

There are several things holiday you can do to get the most for their money this season and not blow your holiday budget. First, do not save all your holiday shopping and don't be afraid to ask a retailer to match a competitor's advertised price. Second, make a list, and stick to it. Do not be lured by discounts on big ticket items, such as electronics, into buying more than you need. Lastly, plan on shopping around more- tighter inventories this year may mean that you have to check several stores before you find what you want.

Other tips for sticking to your holiday budget include making homemade holiday gifts. Homemade gifts can be thoughtful and unique. You can also get creative- instead of giving gifts to all of your family members, throw a party and invite everyone to bring a home-made dish. Then at the end, provide everyone with the recipes from the party. Sometimes being creative and thinking outside the box can creative lasting holiday memories and help you stick to your budget at the same time.

Source 1, Source 2, Source 3

Financial Effects of Divorce

2009-12-04T17:15:00.000-08:00

Posted by: Pete Hill

Now days, divorce is much more popular than it used to be. Approximately half of every marriage will end in a divorce. As a result, there are preventative tips to follow prior to marriage, during divorce, and after divorce.

The risk that any marriage will end in divorce is about 45 percent, according to David Popenoe, a professor of sociology emeritus at Rutgers University. The chances fall to about 40 percent for first marriages and decline further for college-educated couples, people from intact families and couples who share the same religion.

Most couples don’t realize that divorce can also be among the most ruinous financial moves anyone can make. Four talks to have prior to marriage are ancestors spending behavior, credit scores, control of payments, and affluence.
During the divorce, experts who went through divorce have come up with a list of tips to consider. These tips are: picking fights, keeping records, hitting the details, living nearby (with children), and limit overspending.

After divorce you get swept up in the rage, the disappointment and the worries, money will intrude. After a divorce, important aspects to consider are health insurance, mental health, credit, tax, hired help, keeping house, future legal costs, teenagers, and spousal education.

Sources:
http://www.nytimes.com/2009/10/24/your-money/24money.html?em
http://www.nytimes.com/2009/11/14/your-money/14money.html?em
http://www.nytimes.com/2009/11/21/your-money/21money.html?pagewanted=2&em

Beware When Loaning Money to Relatives

2009-12-04T12:42:00.000-08:00

Posted by: Janielle Viggiano

When it comes to lending money to family members, most experts will tell you don’t do it! Financial planners will warn you that interfamily loans can lead to trouble with the IRS, financial problems, and disastrous relationships with relatives. According to Bissonnette, “You're mixing business with relationships -- which is rarely good -- and, according to a Money magazine poll, "43% of readers who lent to family or friends weren't paid back in full; 27% hadn't received a dime (2009).”

If for some reason you really want to give a relative money, draw up a contract. Make sure to include everything you want out of the family member you are lending the money to and whether or not you are going to charge them interest on the loan. Be very specific and make sure your relative knows exactly what they are getting themselves into. If there was ever a problem, you could bring them to court and would have written proof that they agreed to uphold their end of the bargain.

Here are some tips for lending to family and friends:

. Don’t co-sign for a loan
If you don’t have money to lose, then don’t loan them money!
Think about giving them a small financial gift
Consider giving something other than money to help
Offer to help them with budgeting

Sources: http://articles.moneycentral.msn.com/CollegeAndFamily/RaiseKids/TheRightWayToLoanMoneyToFamilyMembers.aspx

http://www.fivecentnickel.com/2009/03/25/lending-money-to-family-and-friends-gpt/

http://www.walletpop.com/blog/2009/09/12/the-smart-way-to-lend-money-to-family-and-friends-dont-do-it/

Preparing your finances before having a baby

2009-12-04T11:06:00.000-08:00

Posted by: Christina Dove

Having a baby can be a very exciting time for a family. However it can also be a time to accumulate many expenses that you did not anticipate. The transition of having a baby can be much easier if you are able to "baby-proof" your finances. Since it will be very important to have a steady income to support the new children, families have to reduce the risk in their investing portfolio. That means dialing down risk in their company-stock-laden portfolio and in general "balancing our investments to meet short- and long-term goals," says Stephanie. The couple also need a savings plan. This is one of the most crucial steps in planning for having a baby.

Another crucial step in preparing to have a baby is to make sure that you have a cash emergency fund that will be available for use if the expenses become more than expected for a short time period. Having some extra cash set aside will reduce the stress when your finances get tight and you aren't sure how you are going to support your current lifestyle, especially with a young child. Most importantly it is best to start a family once both parent's jobs are stable and there is a stable substantial income for the family to live off of. If a family decides to have a baby too soon it can hinder their financial goals for the future and they are always going to feel like they are strapped for cash.

Sources:

http://money.cnn.com/2009/09/18/pf/family_finances.moneymag/

http://www.filife.com/guides/guide-to-having-a-baby

http://www.gracenglamour.com/work-up-your-finances-before-you-go-in-for-a-baby/

How will Tiger Wood's Family Life be Impacted?

2009-12-04T10:14:00.000-08:00

Posted by: Christina Dove

Many people have heard about Tiger Wood's alleged affair with a few other women. Although this news is devastating for his reputation, it will be interesting to see his wife Elin's reaction. Tiger Woods is arguably the best golfer to ever live and had more money than many people could dream of making in a lifetime. If Tiger Wood's wife decides to divorce him, she could make a lot more money than Tiger Woods would be willing to dish out. According to one source, she is reportedly negotiating an immediate $5 million payout from Woods, while also revising their prenuptial agreement. At the time of their 2004 wedding, that prenup was believed to be worth $20 million. Now, she's allegedly seeking up to $55 million if she stays married to Woods for at least two more years.

In addition to messing up his entire family life - especially with two young kids, Tiger Wood's suspicious actions could also have a devastating impact on his sponsorhips, which he makes a majority of his money from. Many of his sponsors have come out and made remarks of intending to stand by Tiger as he copes with his family issues. One sponsor was quoted saying, "Nike supports Tiger and his family," the company said in a statement. "Our relationship remains unchanged." It is still too early to tell how substantial these affairs and the accident in his front yard will be and how they will affect his image, family life and ability to make money in the future.

Sources:

http://money.cnn.com/2009/12/02/news/companies/tiger_woods_sponsorships/index.htm

http://www.americansuperstarmag.com/news/will-tiger-woods-and-elin-nordegren-divorce

http://wcbstv.com/sports/tiger.woods.affair.2.1346199.html

Credit Cards for the Holidays

2009-12-03T11:44:00.000-08:00

Fewer Shoppers Using Credit Cards for Gifts

Climbing interest rates, lower spending limits and canceled accounts are prompting more holiday shoppers to leave their credit cards at home this year.

"There is definitely an overall shift from credit to debit," says Curtis Arnold of CardRatings.com. "This holiday season, it has been accentuated by the credit crunch and the economy."

An estimated 28.3% of people will be using credit to pay for gifts this year.

An estimated 28.3% of people will be using credit to pay for gifts this year, according to a recent survey of 8,692 consumers conducted by the National Retail Federation and BIGresearch. That's down from the 31.5% of shoppers who paid with credit cards during the 2008 holidays, according to the survey.

Mike Cleary's family has ditched credit cards this holiday season. He and his wife had three credit cards with a total balance of about $6,200, but paid those off because of high interest rates. "We were going to get rid of those, bite the bullet and use cash from that point," says Mr. Cleary, a 53-year-old from Duluth, Ga.

Instead of the usual $3,000 to $4,000 he typically spent for the holidays, Mr. Cleary says he will be spending below $1,000 on his family this year. "We just told them, 'Hey, it's going to be a light Christmas.' "

Savings

2009-12-03T11:22:00.000-08:00

For families there are many ways that you can save money. There are also many reasons to save. These range from daily life, retirement, college, etc.
Here are the 7 Reasons to save money:

Emergency Fund
Retirement
Home Down Payment
Vacations
Car
Education
Improvements (home, life)

There are many ways to save money. The best way is to plan. Plan what you want to accomplish, what you need and want. The best way to save is to cut spending and credit card use.
You also must think of where to put savings. There are many options available from banks, stocks, funds, the mattress. A good plan is to make sure that part of your paycheck goes directly for savings and is not spent.

Posted by chris keeler

http://moneyfor20s.about.com/od/reasonsandwaystosave/tp/Top-7-Reasons-to-Save-Money.htm

http://moneycentral.msn.com/content/Savinganddebt/Savemoney/P36019.asp

http://financialplan.about.com/od/savingmoney/tp/savingintro.htm

Your Credit Score

2009-12-03T11:14:00.001-08:00

posted by chris keeler

2009-12-03T11:14:00.000-08:00

Reports state that Tiger Woods offered Rachel Uchitel hush money: press conference cancelled

2009-12-03T11:07:00.000-08:00

Posted by Leah Gorham

By Charisse Van Horn

The press conference never began and reports from Radar Online state they know why: $1,000,000 in hush money. Radar exclusively reports their sources as stating that at the last minute Tiger Woods reps bombarded reps for Rachel, offering the money to not go public with the story. Radar reports that they asked Gloria Allred about the payoff and she replied, “No Comment.”

It would seem to be detrimental to Rachel Uchitel to go public with her story now. She has adamantly denied having an affair with Tiger Woods, agreed to undergo a polygraph, and gave a lengthy tell-all interview to the New York Post stating that Ashley Samson, the National Enquirer source, that gave the juicy details to the National Enquirer was nothing more than a drug addicted hooker looking to score some big bucks: $25,000. To go public with the admission that she has been lying all along might prove more damaging to her reputation and career than she intended.

To read more click here.

The Real Cost of Raising a Baby

2009-12-03T10:41:00.001-08:00

Posted by Nick Porcell

You'll spend almost $10,000 on your baby's first year, according to the thousands of moms who took BabyCenter's exclusive survey.

No wonder 70 percent of new mothers told us they're more anxious about money since having a child. "The financial stress is the hardest thing in my life," says mom Sarah Carley, who has three young children. "You don't realize how much you need for your child — and how tempting it is to buy things."

Click Here to Read More

Insurance Costs for Families

2009-12-03T09:45:00.000-08:00

By Jorden Meltz

During a time of economic uncertainty for many, something that has been a constant for many families is figuring out how to budget for insurance costs. This can be seen in the state of Maine, where it has become common for insurance premiums to be greater than a family's mortgage payment. In addition, the FHA in reaction to the real estate market has decided to try and raise down payments for perspective homeowners looking to take advantage of government-mortgage guarantee programs. Figuring out to balance homeowner and insurance costs is something that families deal with on a monthly basis and most likely the emphasis on these expenses has increased over the past year. There is a light at the end of the tunnel for some though, as a study on the current health care legislation predicts premiums for employer-sponsored insurance programs will not change and may potentially decrease. For many this news will be welcoming, as lower premiums will allow a family to focus their budget in other areas that may be of concern.
Source 1
Source 2
Source 3

Paying for Hospital Bills Are a Growing Challenge

2009-12-02T14:26:00.000-08:00

By: Sara Sindelar

With the health care reform making ways paying the health care bills are getting tougher. There is great confusion on insurance and what is covered by policy owner’s plans. The layer of confusion gets greater when unheard of fees are billed.

There are many additional fees that people are unaware of. Fees like a facility fee for seeing a doctor due to the use of a facility. These fees are for the patient who is a member of the clinics that are affiliated with hospital systems. This fee is on top of the labor of the doctor. A lot of these fees are not covered in insurance and therefore become out of pocket expense.

There is great confusion on payment of different types of care. Urgent care facilities are not the same thing as Emergency rooms and therefore the billing is different. The system causes great perplexity among patients and can lead to people not getting the care they need if they feel they can no pay for it. Patients feel they are being duped with later bills coming from senders they did not know were involved in the payment. Patients want and need a clearer picture of what the payment is when they go to receive care.

http://online.wsj.com/article/SB10001424052748703819904574555723216593610.html

http://www.fox21online.com/news/wisconsin-lawmakers-look-health-care-facility-charges

http://www.kaiserhealthnews.org/Daily-Reports/2009/November/25/Hospital-Fees-Medical-bankruptcy.aspx

Tax Payers Getting Paid Too Much

2009-12-01T11:48:00.001-08:00

By: Sara Sindelar

Reports recently came out stating that tax payers have been receiving too much of the Making Work Pay credit. There are two solutions on the table; one is to give back a smaller refund or two is to get money back today. There are an estimated 15 million tax payers that fall under this overpaid credit category. The IRS states that they believe that this number will come down once the research has been made into the individuals. As well as the number affected going down the IRS feels that the problem will be fixed through cutting the taxpayers refund.

This credit was placed back in February as part of the stimulus package. It is for those making less than $75,000 with a credit of 6.2% or up to $400 earnings. Many people received more than $400 in credit and will be having the extra amount cut out of their tax refund. Solutions are being acted upon to take care of this tax credit glitch. There are many moving pieces to filing taxes and with the added on credits from the stimulus it allows for more mistakes on both ends. It is important to really pay close attention to your tax filings.

http://money.cnn.com/2009/11/17/pf/taxes/making_work_pay/index.htm
http://www.baltimoresun.com/business/bal-bz.digest171nov17,0,1253242.story
http://www.todaysthv.com/news/local/story.aspx?storyid=95084&catid=2

Toyota Recalls 4 Million Cars

2009-12-01T11:46:00.001-08:00

By: Sara Sindelar

Recently Toyota has put a recall on their cars, totaling 4 million, due to a malfunction with their gas pedal. Toyota states that there is an issue with the floor mat in relation to the accelerator. They announced this past week that they will be fixing the cars in 2010. They are planning on fixing the size and shape of the pedal as well as the floor mat for a perfect fit. To fix any mechanical issues they are going to install a brake override system if there are complications with the accelerator. This issue of sudden acceleration has been proven to have led to almost 10 deaths and many more accidents.

Toyota is known for a company of auto safety and this will strongly ruin their reputation. With the auto industry struggling during the economic crisis Toyota now has another battle to fit to stay strong in this economy. With this news coming out right before the holidays sales may be low and may continue to be low for months. Toyota states they do not know how much this will cost. One can only imagine the economic damages that something like this can do to a large company.

http://money.cnn.com/2009/11/24/autos/toyota_recall/index.htm
http://www.bloomberg.com/apps/news?pid=20601101&sid=asaPimCFcocg
http://www.youtube.com/watch?v=JjVWFCCRsdc&feature=player_embedded

Airing out Your Wallet: Financial Spring Cleaning

2009-12-01T09:15:00.000-08:00

Posted By Nicholas Vanikiotis

Spring cleaning is an American tradition. There is something about the warmer weather that makes us want to fling open the windows, air out the closets, beat the rugs and polish the silver. But what about our finances? Wouldn't spring be a good time to organize and sort them out, too (especially after all that holiday spending)?

Tina Florance, director of business advisory services for Hall & Company, certified public accountants, in Irvine, Calif., thinks spring is the perfect time to get your finances in order. "Spring cleaning your finances will help you save time and reduce stress," Florance says. "Getting your financial affairs in order will give you peace of mind knowing exactly where you stand financially, so you can make good decisions about managing your money. The results will simplify your life, save on expenses and create a plan to invest in your family's future."

Family health insurance to rise sharply without COBRA subsidy

2009-12-01T08:58:00.000-08:00

Posted by Jorden Meltz

A new study estimates that the end of a hefty government subsidy could force millions of laid-off workers to pay more than 80 percent of their monthly unemployment checks to keep their job-based family health insurance coverage intact.

An estimated 7 million jobless workers and their dependents are thought to have received the temporary subsidy, which pays 65 percent of their health insurance premiums under a law known as COBRA, the Consolidated Omnibus Budget Reconciliation Act.

However, the nine-month subsidy expired Monday for those who first began receiving it in March through the American Recovery and Reinvestment Act.

Estimates vary, but COBRA subsidies pay an average of $722 per month toward the average national cost of family coverage, which runs about $1,111 per month, according to Families USA, a liberal consumer health advocacy group.

Without the subsidy, however, COBRA family coverage would eat up a whopping 83.4 percent of the $1,333 average monthly national unemployment insurance benefit, according to a Families USA report issued Tuesday.

Click here to read more.

Financial Planning Tips for Married Couples

2009-11-30T18:22:00.000-08:00

Posted by: Jessie Bruyn

The Six Financial Mistakes Couples Make

2009-11-30T18:19:00.000-08:00

Posted by: Jessie Bruyn

IF YOU AND YOUR partner are like most couples, chances are, you fight about money. Numerous studies have shown that money is the No. 1 reason why couples argue — and many of the recently divorced say those battles were the main reason why they untied the knot.

While anyone will tell you that talking about money is the first step in resolving problems, talk alone won't do the trick.

In fact, a 2004 study commissioned by SmartMoney magazine and Redbook, another Hearst publication (SmartMoney magazine and SmartMoney.com are jointly published by Dow Jones and Hearst), found that more than 70% of couples talk about money on a weekly basis. So what's the problem? "Most of us don't know how to talk about money," says Mary Claire Allvine, a certified financial planner (CFP) and co-author of "The Family CFO: The Couple's Business Plan for Love and Money."

Click Here to read more

Saving for Your Children's Future

2009-11-29T13:58:00.000-08:00

By: Laura Reginelli

Besides retirement, saving for your children’s college expenses and tuitions tend to drain out bank accounts in most families. With the increasingly higher tuition costs which are rising at a rate faster than inflation, it is becoming more difficult for families to save for college costs. Many of you may be wondering what is the best way to go about paying for college. The truth is, like everything else in life, it pays to start planning early.

· FASFA: As your child goes through and applies to colleges, make sure to fill out the Free Application for Federal Student Aid or FASFA form. Based on this form the government will be able to determine your financial need for that specific child. Filling out a FASFA requires the use of your W-2 forms, bank statements and mortgage and insurance forms. Also, if your FASFA estimate for need isn’t has high as you expected, don’t be afraid to appeal it.

· Loans: Although many feel that taking out loans is risky in terms of finding ways to pay them back, they also serve as a way to make paying for college feasible. Look into both Stafford and PLUS loans to determine the best way to make up the difference when it comes to paying for your children.

· Scholarships: Make sure that your kids are doing their part too! Private scholarships serve as a great way to pool in extra money for college needs. Even the smallest bit counts!

· Section 529 Plans: Look into your states Section 529 plans for an easy and relatively cheap way to save for college. The plans usually provide you with tax benefits while you have a guaranteed way for saving for tuition. And the money does not necessarily have to be used at an in-state college!

There’s no time like now to start saving for your children’s education. The earlier you start, the easier paying for college will be!

Sources: http://money.cnn.com/2005/03/29/pf/saving/willis_tips/index.htm http://www.kiplinger.com/magazine/archives/2009/04/desperately-seeking-tuition.html?kipad_id=90

https://uii.nysaves.s.upromise.com/content/faqs.html

Finding A Balance Between Family and the Holidays

2009-11-29T13:47:00.000-08:00

Posted By: Laura Reginelli

The holidays can be a budget-buster when it comes to getting the family's finances in line.So how can you be a great gift provider, while keeping your family on the right financial path?

One key is making a holiday list for all your gifts -- and don't be afraid to stick with low-cost, but creative gifts.When making purchases, shoppers carrying a credit card balance might consider paying by cash or check. Just keep track of your balance.

Click here to read full article!

Kids Learning to Manage Money by Playing Games

2009-11-22T11:58:00.000-08:00

Posted by: Janielle Viggiano

One of the most popular games at the fair was the award winning "Green" jigsaw puzzles which allow players to grow wildflowers.

Sandra Bergeson, one of the two inventors of the green games, told Xinhua that the games were popular with many families, as they were fun and could also teach children to be "green."

Debt-free Tree Games were also popular with the children. Kids can play it with their family, making virtual earnings from part-time work and managing the money.

Dale Balder, creator of the toy, initially invented this game just for his 7-year-old granddaughter whose parents were not good at managing their money.

"Now she has learned to manage her money and started saving for her college education already," he said.

"This game helps children learn how to manage money for their future," he said. "It helps children and family members learn how to lead a debt-free life while enjoying quality time together."

Mary Couzin, executive director of Chicago Toy and Game Group, said: "Playing can have a big effect on a child's future."

"Research shows that play can increase one's IQ (intelligence quotient) and improve math and reading scores. Play improves our ability to reason and to understand the world," he added.

Click here to read more

Teaching Your Children the Value of Money

2009-11-22T11:56:00.000-08:00

Posted by: Janielle Viggiano

When it comes to teaching children about money, the earlier the better. It’s not an easy task but if you start early enough there are short and long-term benefits. In the short term, they will develop strong savings habits and learn how to make smart purchasing decisions. In the long-term it will help them to avoid accumulating debt and plan for financial security. It’s also a good idea to teach your children where the money is coming from because most children only see it as coming out of mom and dads pockets. Start by explaining to your children that money is earned by working.

There are different feelings about whether or not an allowance is a helpful way to teach children the importance of money. According to the University of Arkansas, “Children need to have money of their own to learn how to manage it. An allowance is a better teaching method than simply giving children money upon their request, says the Cooperative Extension Service, University of Arkansas. An allowance for children should be a set amount, should be paid regularly, and not tied to regular tasks required of the child. When deciding on the amount of an allowance, discuss what items will be covered. The amount should be enough that the child has money to manage with no strings attached (2006).” More examples of lessons to teach your children about money include: make saving interesting, banking and investing, and compounding.

Sources: http://www.arfamilies.org/money/children&money/

http://money.cnn.com/magazines/moneymag/money101/lesson12/index.htm

http://finance.yahoo.com/how-to-guide/family-home/12820

Black Friday Saves Families Big Dollars

2009-11-21T09:33:00.000-08:00

By: Laura Reginelli

When Thanksgiving rolls around, many people tend to think about the day after, Black Friday. In this economically troubled time, families are looking for ways to cut costs and in some cases make ends meet. Black Friday allows shoppers to buy for the holiday season and receive great deals while doing it, inevitably saving them money.

Black Friday can be a competitive, mad-dash for shoppers, sometimes proving to be too much for people. When it comes to this day of shopping, make sure to plan ahead by packing snacks and wearing comfortable clothing. Also shopping may be a little easier if you go with a list of what you need and where the deals are.

Some stores are even joining in on the family planning process. This year Kohl’s is allowing their customers to use their Web site to create a shopping list that they can print and take with them. From there, the customers are off to the stores. Kohl’s will open at 4 a.m. on Black Friday this year, allowing for the madness to start even earlier.

Black Friday shoppers are often a breed of their own and some of the most determined individuals. Although many of us may not see the real importance of going out into this “mob scene,” others swear by the savings.

One Black Friday shopper confesses “I've been venturing out early on Black Friday for eight years now, and every year, I've saved at least $200 — usually much more.”

So if you are looking to save a few extra dollars in the holiday season, make a plan and venture out instead of sleeping in the day after Thanksgiving! It may just save you.

Sources: http://blogs.sun-sentinel.com/consumerblog/2009/11/skip-black-friday-sales-you-may-as-well-set-your-wallet-on-fire.html

http://www.cnbc.com/id/33862032

http://www.bloomberg.com/apps/news?pid=20601103&sid=aEfbyXYEsM1I

Family Credit Issues

2009-11-20T08:43:00.000-08:00

Posted by: Laura Reginelli

Might your family be shunning a federal tax credit of up to $8,000 to buy a home because of a prior bankruptcy or foreclosure?

It's true that a bankruptcy may remain on your credit report for up to 10 years, in many cases. But a lender will give you a mortgage four years after the date of filing of Chapter 7, 11 or 12 bankruptcy, reports Dale Robyn Siegel in her book, "The New Rules for Mortgages." In some cases, with extenuating circumstances, you may even qualify after two years.

Click here to read more!

10 Secrets to Raising More Than $15,000 for College

2009-11-19T09:06:00.000-08:00

Posted by Jorden Meltz

Grandparents are pitching in. Students are working more, and eating less. Parents are taking out more and bigger federal loans.

As the economy has declined and college costs have risen, families have buckled down and become more resourceful to pay for college.

They have been so successful at funding tuition that college enrollment is up dramatically. A record 40 percent (or 11.5 million) of 18- to 24-year-olds are taking at least one college course this year. Add in all the adults returning to school because of the lousy job market, and the total number of college students is likely to exceed 19 million this year.

How are more students affording tuition even though many colleges' prices are at record highs and many scholarship programs, private lenders, and family savings accounts have been wiped out?

1. Relatives: College officials around the country say they are noticing more checks coming in from grandparents, uncles, and other relatives to cover student bills.

Click here to read more

Mistakes Couples Make When Mixing Love and Money Together

2009-11-18T11:41:00.000-08:00

As I prepare for an appearance on ABC News to talk about money and relationships, I thought I would share the answers to some of my questions that were asked of me by the producers. Perhaps this can be valuable information that can be used to help others. There is more in my book, Financial Lovemaking, which goes deeply into the struggles that couples have when negotiating the challenging task of merging love and money together.Love Money have in common?

People think it's taboo to mix love and money in a conversation, but it's not. It's actually essential that you do so. Loving together means living together. In most relationships, you spend more time talking about functional aspects of life, such as paying the bills and purchasing decisions than you spend on "lovey-dovey" stuff. Also, like making love, merging your assets involves sharing something of value with another person. Similar to the act of sharing your body, merging your assets with someone else can either be a fulfilling experience or a devastating one, depending on who you choose as your partner.

Budgeting

2009-11-18T09:54:00.002-08:00

Budgeting involves understanding how much money you earn and spend over a period of time. When you create a budget, you are creating a plan for spending and saving money.

Use these printable budget worksheets and budgeting lessons to teach real life basic personal finance concepts and important fundamental money skills.

Lesson plans and worksheets may be used for a curriculum teaching budgets, household budgeting, and consumer math skills.

Follow the link for a sample budget that you can use...

posted by chris keeler

College Costs

2009-11-18T09:54:00.001-08:00

posted by Chris Keeler

The Six Financial Mistakes Couples Make

2009-11-17T07:36:00.001-08:00

By: Jessie Bruyn

While anyone will tell you that talking about money is the first step in resolving problems, talk alone won't do the trick.

"People tend to be emotional and reactive about money, not strategic," she says.

When emotions run high, people tend to make fiscal mistakes. Allvine's solution: Approach family finances as if you were running a business. "If you put a business metaphor into the picture, you'd be surprised how much more methodical people are."

And so, to help make your next state-of-the-financial-union meeting run smoothly, we've assembled a collection of the six most common mistakes couples make when handling money issues, along with some advice on how to correct them. Do yourself a favor: Make sure all board members review this before you talk.

Click Here to read more

Social Security and Divorce

2009-11-17T07:31:00.000-08:00

Posted by: Jessie Bruyn

Is it true that as a 64-year-old divorcee, who was married for 13 years and hasn't remarried, I would be eligible to collect half of my ex-husband's Social Security benefit? My ex-husband is 67 and has been collecting full Social Security for more than a year. I have been waiting to collect my full retirement benefit from Social Security until age 66, rather than taking reduced benefits early.

If I could collect half of his benefit now, could I switch to my own full benefit at 66? Then, could I switch again, to collect my ex-husband's full benefit, if he dies before I do? Also, could I collect his benefits retroactively?

S.A. Reagan
Houston

You don't have a choice between collecting your own benefit or your ex-spouse's until you reach your full retirement age.

If you are between age 62, which is the youngest age at which you can collect reduced retirement benefits through Social Security, and your full retirement age, which varies based on the year you were born, your application for benefits generally will be based on your earnings record, says Dorothy Clark, a spokeswoman for the Social Security Administration in Baltimore. If the portion of your ex-spouse's benefit to which you are entitled at the age you apply is greater than your own, you could receive a benefit equal to that amount.

Click Here to read more

Buy A Home, Get A Tax Credit

2009-11-16T12:10:00.000-08:00

Posted by Mary Clare McGraw

Congress has extended the popular tax credit for first-time homebuyers and created a new tax break for homeowners looking to trade up.

Under the new law anyone who hasn’t owned a home in the past three years can claim a credit worth 10% of a home’s purchase price, up to $8,000. The new act also includes a tax credit of up to $6,500 for individuals and families who have lived in their homes for at least five years and want to move.

The deadlines are the same as for the first-time buyers’ tax credit — contract by April 30, closing by July 1.

Both credits require the home to be a principal residence and to cost no more than $800,000. These tax breaks are particularly valuable because they’re credits, not deductions.

To read more click here

Money Management for Couples

2009-11-15T11:04:00.000-08:00

By: Laura Reginelli

Marriage is one of the oldest sanctions and traditions known to mankind. And even though it is about love and the joining of two individuals, other areas of life must be taken into consideration as well when entering into marriage. Just like any other personal preferences, people have their own spending habits and ways of managing money.

When it comes to marriage, you have to think of the entity rather than yourself. It’s no longer just about you. Instead you really have another half to think about. So with that being said, money should not be considered yours, it should be thought of it terms of “ours.”

Like any other monetary situation in your life, you should use a budgetary system. Determine how much money you will have and where exactly it should be allocated. This means you will need to discuss spending on luxury items.

Plan ahead. I know it’s early. But it pays to start early when it comes to saving for both your retirement and your children’s education. These are not minor expenses and even saving a little from the start will be of extreme benefit to you in the future.

Communication is necessary in any marriage in order to succeed. When it comes to yours and your spouses’ finances, it is imperative that you keep open communication and discuss purchases and budgeting skills.

Sources:

http://ezinearticles.com/?Family-and-Marriage-Finances-101---The-14-Essentials-Everyone-Must-Know&id=2979359

http://www.ehow.com/how_4680135_keep-finances-ruining-marriage.html?ref=fuel&utm_source=yahoo&utm_medium=ssp&utm_campaign=yssp_art

http://www.nytimes.com/2009/11/07/your-money/household-budgeting/07money.html

When Finances Challenge Your Marriage

2009-11-15T10:10:00.000-08:00

Posted by: Laura Reginelli

When a couple first gets together, they may not have the same approach to managing money. But it’s often easy enough to get past any differences when so much of the future is theoretical anyway.

Then reality sets in. It may take years, even decades, but the gloss wears off. Children arrive, layoffs occur or housing prices collapse just as adult children run out of money.

In my last column, I highlighted a number of topics that the newly engaged should discuss to keep disagreements about money from later threatening the union. This week, I had intended to move on in my series about the financial impact of divorce and write about what happens after the split.

Click here to read more!

The Right Way to Loan Money to Family Members

2009-11-13T10:56:00.000-08:00

Posted by: Janielle Viggiano

With three words, you can sum up the most common advice about lending money to your relatives: "Don't do it."

Financial planners warn that intrafamily loans can lead to trashed relationships, shattered finances and even trouble with the IRS. People who've lent money to family members often complain about ingratitude, missed payments and strained holiday dinners. Even the borrowers grumble, especially when their benefactors start quizzing them about their spending.

"Suddenly, (the lender) is looking at the vacation they took and saying, 'They owe us money, how can they go on vacation?'" said financial planner Karen Ramsey, author of "Everything You Know About Money is Wrong." "The borrowers pick up on that judgment, and they get resentful."

Click here to read more!

Money & Marriage

2009-11-13T10:48:00.000-08:00

Posted by: Janielle Viggiano

Marriage is a partnership and separating the money and splitting the bills is a bad idea. Men and women are very different when it comes to money. According to Dave Ramsey, “When it comes to money, men tend to take more risks and don't save for emergencies. Men use money as a scorecard and can struggle with self-esteem when there are financial problems. Women tend to see money more as a security issue, so they will gravitate toward the rainy-day fund. Because of their need for security, ladies can have a level of fear (2009).” One of the leading reasons for divorce is money issues. According to the New York Times, there are at least four issues you should address with your spouse before getting married.

Ancestry- looking at your personal past and how your family dealt with money
Credit- A credit report will tell your spouse about past mistakes and overall habits.
Control- who will do what in the relationship when it comes to paying bills
Affluence- how much money do you and/or your spouse want to have someday and how will you be able to accomplish your goal

Next are five financial issues that will likely cause a strife between you and your spouse:

Reduced circumstances
Your mistakes
Your parents
Your uncertainty
Your children

Sources: http://www.daveramsey.com/article/the-truth-about-money-and-relationships/

http://www.nytimes.com/2009/10/24/your-money/24money.html?_r=1

http://www.nytimes.com/2009/11/07/your-money/household-budgeting/07money.html

Front-End Loaded Mortgages hurt Family Finances

2009-11-12T10:10:00.000-08:00

Posted by Chris O'Sullivan

Interest on home mortgages is commonly "front-end" loaded, meaning lenders are making what some may consider unfair amounts of cash on your interest payments. Often times it may take 20 years to pay off only half of the principal on a 30 year mortgage. Front-end loads are structured in a way that requires the mortgage holder to pay off the interest first before chipping away at the principle.

If large interest payments in the early years really do generate excess profits for lenders, you would think that they would prefer 30-year to 15-year mortgages, because interest payments on the 15 decline much more rapidly. You would also suspect they should charge higher rates on 15s. However, they actually charge lower rates on 15s.

The way that lenders price loans is just the opposite of what we would expect if interest was front-end loaded. Lenders actually prefer shorter-term mortgages because their money turns over faster, which reduces their exposure to rising interest rates, and the more rapid pay-down of the balance reduces the risk of loss from default. This show why it is important to know the fine print in any contract that you sign.

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Effects of the Recession Linger...

2009-11-12T09:42:00.000-08:00

By: Robert Katz

While all experts seem to be saying that the recession is over, it is the after shock of this massive economic collapse that is definitely still effecting the American population. The worst part of all is that the real problems the recession created weren't even financial.
In today's American capitalist society, life seems to revolve around money and finances. Due to such high increases in unemployment and job opportunities families' financial situations have become the least of their worries. The plummet of the economy left most Americans unprepared for the years to come. Families have a lot to worry about with providing for kids, paying a morgage, car payments, insurance, saving for retirement, kids college, etc. The abortion rate in the US during this recession has increased substantially showing that families have had to alter their mind sets when thinking about starting a family. Yet, those already with a family that depend on a single income have been the ones that are really effected the most.
Inability to pay bills or even afford some of the luxuries we have come to take for granted in every day life have become out of their price range. This creates frustration and tension in families and more specifically problems in marriages. Marriage counseling has also had a surprising increase during a recession. This just shows the importance of saving and not being frivolous with your money. While always been worried that worst is coming isn't good either, it just never hurts to just be prepared and budget money wisely.

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Personal Finance: Time to get serious about Roth IRAs

2009-11-12T07:44:00.000-08:00

By Zach Lungo

Article By Linda Stern

For decades, people planned for retirement anticipating that they would face lower taxes than they paid while working -- but that's no longer a sure thing.
Many people have their retirement savings tucked away in tax-deferred accounts and will have to pay taxes on that money as they take withdrawals. Up to 85 percent of Social Security benefits will be taxed for many of these tax-deferred savers.
And with the federal deficit out of control and the tax cuts enacted in 2001 by President George W. Bush set to expire next year, there's the very real prospect that tax rates going forward will be higher than they were over the last decade.
Enter the Roth Individual Retirement Account.
Created in 1997 tax legislation, Roth IRAs allow workers to put away money that could build tax-free for retirement. Contributions to Roth IRAs do not qualify for tax deductions, but the money that is withdrawn years later, in retirement, is not taxed. That is especially beneficial to younger savers whose accounts have many years to earn interest, dividends and gains that can compound over time. The law that created Roth IRAs also included provisions for allowing taxpayers to convert their existing tax-deferred IRAs into Roths.
But Roth IRAs have had their limits, too. Only taxpayers who earn less than $105,000 ($166,000 for joint filers) in 2009 can contribute the maximum amount ($5,000 per person, with a $1,000 additional catch up contribution for folks 50 or older) to a Roth IRA. And only people earning less than $100,000, single or married filing jointly, can convert their traditional IRAs to Roths.
In 2010, some of those rules will change. That $100,000 limit disappears, so folks with higher incomes can convert traditional IRAs to Roth IRAs. Deciding whether to do that, and how to go about it, is going to be difficult and complex. Here are some considerations.
You will have to pay taxes. When you convert a traditional tax-deferred IRA to a Roth IRA, you will pay taxes on all of the tax-deferred money being moved over. If you have been contributing to an account that was fed with nondeductible contributions, it may be hard to figure out how much of what you move will actually be taxable. You can use IRS Form 8606, available on the IRS website (www.irs.gov/pub/irs-pdf/f8606.pdf), to calculate.
For the conversion to make any sense, you need to have enough extra cash available to pay those taxes without having to reduce the size of the IRA to do it.
-- The key to deciding whether to convert comes down to whether you think your taxes on that money will ultimately be higher or lower when it comes time for withdrawal. There are several calculators online that can help you decide if it is a good option. Find one here, and another at Fidelity Investments www.fidelity.com/rothevaluator.
But even after using the calculators, you will have to make your own decision about whether to take the tax-poison now or later. The younger you are, the more likely you are to find that conversion makes sense.
-- A partial decision might be the best one. You can convert a portion of your existing IRA to a Roth IRA, and experts at Fidelity believe this might be the best option for many people. That way you can convert just enough to keep your tax bill low.
-- You can spread out the taxes, too. Just for 2010, if you convert an existing IRA to a Roth IRA, there is the option of paying the resulting tax bill as part of your 2010 income taxes or spreading it over 2011 and 2012. Usually, tax professionals advise people to defer taxes whenever possible. But with the prospects of rates going up in 2011, it might make more sense to be done with the taxes in 2010.
You can also wait and see what happens to your income and tax rates in 2010 and 2011, and then file amended tax returns for those years, switching the IRA taxes from one year to another.
-- You may want to stash more now. You still have 2009 to add to your traditional deductible (or nondeductible) IRA, so that you are in position to convert more funds to a Roth IRA in 2010.

Gift Cards this Holiday Season

2009-11-12T05:31:00.000-08:00

Posted by Matt Maillet
Article by Gail Buckner

Sales of these credit card-sized “gifts” are expected to decline again this year, mainly due to current economic conditions. Still, they’re predicted to top $20 billion. But whether you’re the giver or the recipient, it’s critical to understand that all gift cards are not alike. The biggest differences are between those issued by stores and those issued by banks. The latter typically come with a “VISA,” MasterCard,” or “American Express” logo.

The National Retail Federation [NRF] points out that gift cards from “most national retailers do not have fees or expiration dates associated with them.” The downside, of course, is that the value of the card can only be spent at that particular store.

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Kids and Recession: Sometimes, You Just Have to Laugh

2009-11-11T13:10:00.000-08:00

Posted by Andrew Lipsitz

As dispiriting, prolonged and unprecedented as this recession has been, adults at least have the gift of perspective -- a "this too shall pass" belief that things will get better. They always have.
For children, there is no perspective. This is all new. And a recent major survey says they're scared.
For the first time, the American Psychological Association (APA) included young people ages eight to 17 in its recently-released annual Stress in America survey. The survey, conducted by Harris Interactive, found that worries about family finances ranked second to doing well in school on the stress meter, well ahead of over-scheduling and relationships with parents.
For parents who want to ease the strain, one of the most effective ways to deal with recession-induced anxiety in children is also, unfortunately, one of the qualities most vulnerable to downturns in the economy.
Fear and disappointment can suffocate the silly playfulness that defines some of the strongest and most resilient families. The inside jokes, movie lines and other reference points that can run through the narrative of family life can be pushed aside. Burping the alphabet loses its glorious silliness when the credit card company is on the phone.
The current American humorlessness is understandable. Recessions aren't funny. This one is taking a particular toll on adults. A recent Gallup-Heathways poll has taken the most comprehensive look ever at the tie between the economy and emotion.

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Family Finances

2009-11-10T10:54:00.000-08:00

How Much Should Your Kids Know?

By Robert Katz

Rising utility and automobile gasoline prices, college tuitions and emergency trips to the veterinarian are just a sampling of issues that put a strain on a family's budget. These expenses and more are causing many families to find themselves needing to periodically revise their budgets.

Our children overhear financial discussions and casual statements spoken about saving for the holidays or a vacation. They see prices on nearly every item in stores and malls and are aware that their parents work. Despite being aware that money is a part of life, many parents question how much financial information they should share with their children.

Whether your family is pinching pennies or fiscally sound, do you know if your child understands the concepts of saving and spending money? How much does your child know – or want to know – about your family's financial footing? Knowing when, where and how to approach financial topics with your children will alleviate your child's confusion, prevent misconceptions and ensure your family is all on the same financial page.

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Median home prices fell nationwide in 3Q

2009-11-10T09:56:00.000-08:00

Posted by Chris O'Sullivan

Article by J.W. Elphinstone (Yahoo Finance)

A real estate group says home prices fell in eight out of every 10 U.S. cities in the third quarter of this year as heavily discounted distressed sales made up 30 percent of all deals.

But home sales continued their climb, with quarterly sales outpacing the second quarter and the previous year's figures, the National Association of Realtors said Tuesday.

The median sales prices of existing homes declined in 123 out of 153 metropolitan areas compared with the same period a year ago. Prices rose in the other 30 cities.

The national median price clocked in at $177,900, or 11 percent below the third quarter last year.

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No Truth behind a 'Jobless Recovery'

2009-11-09T03:26:00.000-08:00

Article by Matthew Maillet

In recent months, many economists have declared the recession is coming to an end while ignoring one of the strongest indicators of a country’s economic strength—employment rates. A “jobless recovery” is not very likely, yet economists have been ignoring these high unemployment rates while focusing on other economic indicators.

Even though the U.S. economy grew in the third quarter for the first time in over a year, we are still facing increased job loss for the 22^nd consecutive month. Even though it appears that companies may be reducing the threat of bankruptcy, everyday Americans have been faced with the increasing threat of job loss and financial insecurity. There has been a trend in recent months that demonstrate a shorter work week. This is a bad indicator for two reasons—one, workers will be receiving less monthly income than a full 40 hour work week; second, companies are not considering hiring new employees at this time.

There has been an overall drop in private sector employment since 2000. This is disturbing due to the fact that population grew by 11% in the same period. John Harrington of Harrington investments weighed in on the matter: “To have a real recovery you need to put people to work. Right now we are not doing that.” It is ignorant for one to disregard the massive unemployment issues that this country is currently facing. To truly repair the economy from the ground up we must first get Americans back to work. While indicators such as the growing economy as well as the impressive rebound on Wall Street are positive signs for the future, make sure to take a look at unemployment statistics before buying into a “jobless recovery” theory.

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Thinking about Grad School?

2009-11-09T02:32:00.000-08:00

Posted by Matthew Maillet
Article by Emma Johnson

More than 70% of those who pursue a graduate degree find themselves saddled with debt that they may not be able to afford, according to the U.S. Department of Education's 2004 National Postsecondary Student Aid Study. On average, a person with a master's degree graduates with a combined undergrad and graduate debt of $32,858. For an MBA that figure is $41,687; for a Ph.D., plan on $53,405; and for a law degree, expect to be paying off $80,754.

The good news is that, on average, people with graduate degrees make more money than those without. According to the most recent U.S. Census figures, a person with a professional degree (law, medicine, business) will make, on average, $4.4 million over their lifetime, in today's dollars. That's more than twice the $2.1 million a person with a bachelor's can expect to earn. Even a master's degree will bring, on average, $2.5 million over your working life; a Ph.D. will pull in $3.4 million over the average career span of 40 years.

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The Economical Path for a Graduating High Schooler

2009-11-05T15:05:00.000-08:00

By Andrew Lipsitz

Senior year of high school is a nice balance of partying like no tomorrow and the stress of college applications. However, other strains have recently been plaguing many senior classes and their parents whom fund many of their graduates. A recent report from the College Board showed that the costs associated with a college education are rising significantly faster than many parents’ salaries. While more students are applying to college more than ever now, costs for parents have risen, as many face unemployment, credit card debt and many other financial issues.

With this being said, many people forget about the other, more economical, paths that their future college graduates can take. Pre college breaks, started at community college and finishing at instate schools are just a couple of routes that many successful graduates today have taken and it has definitely cut down on their student loan costs.

Aside from parent or student loans, another extremely important way to cut down on student costs, which is increasing in popularity, is applying for financial aid. Two types of financial aid include merit-based scholarships and need-based scholarships. Merit-based scholarships include both scholarships awarded by the individual college or university and those awarded by outside organizations. Merit-based scholarships are typically awarded for outstanding academic achievements and minimum SAT or ACT scores, although some merit scholarships can be awarded for special talents, leadership potential and other personal characteristics. Need-based finacial aid is awarded, as the title hints, on the basis of financial need of a student. The Free Application for Federal Student Aid, or FAFSA, is generally used for determining federal, state, and institutional need-based aid eligibility. At private institutions, a supplemental application may be necessary for institutional need-based aid.

In determining the amount of aid your student will receive, the federal government will calculated the expected family contribution amount and compare it to costs to determine any shortfalls in your financial plan. The bottom line is, if your future college student expects to go to any college they get into, there are always different ways to accomplish these goals, but also some tradeoffs.

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Unemployment Benefits Extended

2009-11-05T10:16:00.000-08:00

Posted by Chris O'Sullivan

The Senate voted unanimously on Wednesday to extend unemployment benefits by up to 20 weeks in all 50 US states. All unemployed individuals are entitled to an additional 14 weeks on benefits, while those living in states with unemployment rates of 8.5% and higher are eligible for an additional 6 weeks (20 weeks total). This proposal will be funded primarily through an extension of the federal unemployment act. It will still have to pass through the House and eventually be approved by the signature of President Obama.

Unemployment rates continue to be an issue in the United States, with 15 million unemployed vying for only 3 million available jobs. The unemployment rate hit a 26 year high of 9.8% in September and is expected to rise once again when October figures are released in the upcoming days. 1 in 3 unemployed Americans has been out of work for at least 6 months. According to government sources, this will be the last extension on unemployment benefits.

This new legislation also extends the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30. This is meant to energize the real estate business and put home builders back to work. This extension will cost $10.8 billion over 10 years. 1.8 million homebuyers are expected to exercise the credit by November.

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Deal of the Week: Commission-free sharebuying

2009-11-03T10:32:00.000-08:00

Posted By: Zach Lungo

Article By: Steve Lodge

What’s the deal?

Interactive Investor (II), the online stockbroker, is offering commission-free share purchases through its Portfolio Builder regular investment service until June 30 2010. Investors can buy any UK share, including Aim companies and exchange traded funds (ETFs), for no dealing fee. Users select one of four dates in a month for their purchase, and can invest as little as £20, with no maximum. There is no requirement to invest every month, and scheduled purchases can be cancelled up until the day before. The offer is available within II’s individual savings accounts (Isas) and self-invested personal pensions (Sipps) as well as for standard dealing accounts.

Is this good?

The commission waiver is a rare opportunity to buy shares without paying a dealing charge. The Portfolio Builder service normally charges a flat £1.50 per trade, while II’s standard commission is £10. Investors buying ETFs also pay no stamp duty. The offer is attractive for investing smaller sums, where commissions could otherwise make purchases uneconomic.

Building up a shareholding with regular purchases offsets the risk of bad market timing, while the ability to stop and restart the plan at any point provides flexibility, for example to cancel a purchase when prices are high. Some lump sum investors might also want to use the service to make a single share purchase at no charge.

What’s the catch?

Investors are dealing blind – they do not know the actual price they are buying at, which, in volatile markets, could be disadvantageous. Also, while purchases are free, sales are at the broker’s usual £10 rate.

What’s the alternative?

Other brokers, including TD Waterhouse, Selftrade and Halifax Share Dealing (which provides Interactive Investors’ service), have similar regular investment plans charging £1.50 per purchase. Many investment trusts also offer low-cost monthly purchase deals.

Click here to read more: http://www.ft.com/cms/s/2/8a3e1fdc-af7e-11de-ba1c-00144feabdc0.html

Harvard Business School's New Curriculum: Everyday Finance

2009-11-03T10:27:00.000-08:00

Posted by Andrew Lipsitz

Harvard Business School is the place where the chief executive officers, hedge fund stars and Goldman Sachs ( GS - news - people ) partners of tomorrow learn their craft. Now, in a break from tradition, a new course is focusing on the troubles of everyday consumers.

Consumer Finance, as it is known, will look at topics ranging from the best ways to boost the savings rate to how banks can deliver better products for low-income customers. Instead of proceeding along the conventional HBS path and delving into corporate case studies, students will focus on the financial lives of real middle-class families. In one exercise, they create a budget for a Boston family of average means, figuring in costs for such everyday staples as food, transportation and insurance.

"By the time our MBAs graduate, they will have looked at financial statements for hundreds of companies," said Peter Tufano, the professor who teaches the course along with Howell E. Jackson, a faculty member at Harvard Law. "Other than in our course, they would have never looked at the financial statements of a single household."

Traditionally, business schools have shied away from teaching consumer finance, despite the fact that households represent $61 trillion in assets. As business schools grew in the 19th century, they traditionally taught men how to run corporations, while the study of household finances became the focus of programs tailored to women.

"We now know that consumer financial decisions are not only huge activities but have the potential to make or break entire economies," Tufano said.

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Homebuyer's Tax Credit Applies to Higher Income

2009-11-03T09:35:00.000-08:00

Posted by Chris O'Sullivan

Article by Palmeri (Businessweek)

The Senate is expected this week to pass an extension of the credit that was originally going to expire Nov. 30. Buyers who sign a purchase agreement by April can now claim the credit.

The extension will apply to higher income buyers. Previously the credit was available to individual filers making $75,000 a year or less. For couples the limit was $150,000. The new income limit will be $125,000 for individuals and $225,000 for couples.

There’s also something in for move-up buyers. Previously you couldn’t claim the credit if you owned a home in the past three years. Now, if your last home was your primary residence for at lease five years, you can claim $6,500 in credit if you buy a new home. The new house can’t cost more than $800,000 though.

Just in time to kick Washington into action, the National Association of Realtors reported that pending home sales jumped 6% today. That’s the eighth month in a row of sales increases and the longest rising streak since 2001. “What we’re witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month,” said the association’s chief economist Lawrence Yun.

I’ve a written before about the role psychology has in home purchases. No where is that topic more relevant than in what we’re seeing with the tax credit. I participated in an Internet interview last week on the housing market on the Financial Fitness Show . Jim McQuaig, a mortgage broker in Reston, Virginia, said he recently completed financing for a woman buying a $430,000 home who said the $8,000 tax credit was the incentive.

Imagine that, one of the largest purchases of your life and you’re moved to do it by a tax credit worth less than 2% for the purchase price!

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Achieving Financial Security

2009-11-03T05:18:00.000-08:00

Posted by Matthew Maillet

Achieving financial security is something that involves smart decision-making. Regardless of your age, you are never too young to begin striving for long-term financial security. There are several decisions you make along the way that help (or hurt) your ability to protect your financial stability.

First, it is important to take a good look at the way you handle risk. This can be examined by looking at all aspects of your life. “Would you rather work for a rock-solid company with strong benefits” or a “smaller startup with a great stock options?” If you chose the latter, you clearly demonstrate a strong appetite for risk and uncertainty. Luckily for most college students, it is never too late to dust yourself off and start a new approach to your decision making.

Second, how do you manage your debt? If you find yourself with multiple credit cards spending money that is not yours, you may be starting bad habits for the future. Money owed to a creditor should be a top priority. Years down the road, putting off paying a credit card will only come back to haunt you. Unpaid credit card balances puts the credit issuer in control of your finances. This can be a recipe for disaster.

Third, it is vitally important that you protect your assets. While auto and home insurance policies may seem like an inconvenient expense today, poorly protecting your assets can seriously jeopardize your financial stability in the event of a disaster. This is also relevant if you chose to start a company: choosing a limited liability company makes it much more challenging for others to attack your personal assets.

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91 Ways to Save on Almost Anything

2009-11-03T04:51:00.001-08:00

Posted by Matthew Maillet
Article by Kiplinger's Personal Finance Magazine

Want to save a buck? How about a few hundred or a couple thousand?

We took a look at eight spending categories in your budget and identified dozens of ways you can keep more money. Whether you need to plug leaks in your spending, learn where to find the best deals or even trick yourself into shaving expenses, we've got something for everyone.

And here's a bonus tip: Before you even start looking elsewhere in your budget to cut costs, start at the source with your paycheck. If you get a tax refund, that means you're overpaying Uncle Sam from the beginning. Boost your take-home pay today by adjusting your tax withholding with your employer.

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As Health-Care Costs Rise, Paying More To Insure the Family

2009-11-03T03:29:00.000-08:00

By Anna Wilde Mathews

It’s open-enrollment time for workplace health benefits, and the big trend is no surprise, as I write in today’s Healthy Consumer column. We will all be spending more on our coverage. Workers’ costs are expected to rise about 10%, to a total of $4023 in premiums and out-of-pocket costs in 2010, according to benefits consulting firm Hewitt Associates.

But people who have family members on their employer health plans may find themselves digging even deeper into their pockets. Benefitfocus Inc., which provides benefits software to more than 300,000 employers, says around a third of them are trying to trim spending on dependents. The tactics include audits to root out dependents who don’t qualify for the plan – not a new strategy, but becoming far more common. Spousal surcharges, in which a worker pays more to cover a spouse who has another potential source of health insurance, are also being used by a share of employers. And some are cutting back how much they contribute to family coverage.

Company officials told me they had a lot of good reasons for their focus on family plan expenses. Mark Wilson, the chief executive of Kimley-Horn and Associates Inc., said the engineering and planning firm’s rich benefits were luring family members who had other options, adding to Kimley-Horn’s costs. He felt he was “subsidizing…other companies.” An official at another company told me it was “making a concerted effort to widen that gap and make family coverage more expensive than individual coverage…we have our first allegiance to employees, but not as much to their dependents, so if you are going to put dependents on, you are going to bear more of the costs.”

At the extreme, some employers don’t spend any money on covering workers’ dependents. They give the same amount of money to each employee, whether the person has children and a spouse to insure or not. The employee can pay to add others. One teacher I interviewed found it cheaper to buy individual coverage for her son, since she would have had to pay his full premium on her workplace plan.

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Underemployment: Fading Trend or Sustaining Sector?

2009-11-01T18:23:00.000-08:00

Article By: Zach Lungo

Rich Grogan of Murrells Inlet in South Carolina is becoming part of a trend nationwide who are underemplolyed. Grogan works as a sales associate at Sears for about 22-24 hours a week on 100% commission to provide for his wife and 2-year-old son. He holds an MBA and an undergraduate degree in finance and has worked for years in management. Now, Grogan is making about one-third of the income he brought in before, but is happy tot have a job. Nationwide, about 6% of the working population is underemployed which is defined as an employee who is either working part time when he or she previously worked full-time, or those who are working full-time but are using fewer or none of the skills one previously used in another career. In Horry County, where Grogan lives, at a 10.9% unemployment rate, anywhere between 1 in 6 to 1 in 4 people could either be underemployeed or unemployed.

With full-time jobs not available, alot of overqualified pople are taking up whatever they can find, part time, any hours available, and temporary. Crystal Johnson of Conway South Carolina has found similair hardship. She was a booking and payroll specialist in Washington, D.C, moved to Myrtle Beach last year and stuggled to find new employment. She went from making $21 dollars an hour to making $7.50 an hour.

Overall, some workers who are experiencing this trend in employment have said underemployment has helped them realize that building on skills that are not only fufilling financially, must also have a sense of satisfaction and desirablility.

Please click here for more: http://www.thesunnews.com/business/story/1142311.html

Family Finances: Solving financial woes through education

2009-11-01T18:17:00.000-08:00

Posted By: Zach Lungo

Article By: Gail Liberman & Alan Lavine

One often-overlooked reason for our current financial mess is a lack of education about money and business.
Bankers made mortgages to people who could not afford them. And those who were unable to afford their homes and other desires bought them anyway -- unfortunately, on credit.
So far, 21 states now require at least some type of instruction on personal finance, according to Jump Start Coalition for Personal Financial Literacy based in Washington, D.C.
Plus, you can find a lot of free information at a U.S. government Web site available to all families: http://www.mymoney.gov/. Or, you can get information by phone at 1-888-MYMONEY. The Web site and phone line are manned by the Financial Literacy and Education Commission, made up of 20 federal agencies.
Help for teachers and parents also is available from the nonprofit Alliance for Investor Education, based in Washington, D.C. Among the alliance's 21 members are state securities regulators, the Security and Exchange Commission and Financial Industry Regulatory Authority. The Alliance provides free information at http://www.investoreducation.org/.
Newly available to consumers: An interactive game-based financial literacy course, MoneyU, which already is used in public schools and colleges. Available at http://www.moneyu.com/, the program, designed for young adults between the ages of 17 and 24, teaches skills such as how to compare credit cards and auto loans. It also teaches how to research starting salaries in a chosen field, manage debt, save and file income taxes. The aim of the interactive game is to use smart financial strategies to become a virtual millionaire.
The creator, Griffin Enterprises of Rockville, Md., is offering the game to students for $14.95 through June 1, 2010.
Expect financial literacy to become an even bigger issue in the near future.
The Financial Literacy for Students Act of 2009, introduced by Sen. Kay Hagan, D-N.C., provides grants to states that add banking, credit and taxes into school curriculums for grades six through 12. Tahira Hira, personal finance professor at Iowa State University, Ames, Iowa, is particularly interested in seeing fewer college students experience financial distress.

Please click here read more: http://www.post-gazette.com/pg/09296/1007674-68.stm#ixzz0VfH8RNUG

Personal and Family Finance: The Bluring Line

2009-10-29T08:46:00.000-07:00

By Robert Katz

In today's world of finance there is so much emphasis on budgeting for the future and for your family that it makes you ask; is there really a difference between personal and family finance. Right when you get out of college you're told to start saving for old age, start a wedding fund, save for when you have kids, save for your kids college funds, and make sure you have money to take care of your parents and yourself once your old. Now, while some of these may seem like they fall under personal or family finance the two terms are beginning to blur together more and more.

People now and days are much more worried about saving money and budgeting than ever. All these online sites and blogs providing services, software, and articles to help you save more money and budget wisely. Yet, most of these tricks they talk about are good strategies for someone to use for themselves or for a whole family. Different retirement accounts that provide higher tax deductions can help people living alone or with a family. Clipping coupons, using super saver cards, and waiting for sales aren't only strategies families can use to save money but ways for everyone too. All these blog websites are allowing everyone to bring their own unique situation together with others and see where each other are going wrong. This is creating a new trend of not personal or family finance, but country finance. Where people you don't even know and have never seen before from across the country give you tips on how to budget wisely and how it worked for them. In today's economy it is good to see people so concerned with saving their money and that they care that everyone else is saving their money as well. The key to economic prosperity and growth in the US or anywhere is in a large and growing middle class and because of these new trends hopefully we should be heading in that direction.

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Solving Financial Woes through Education

2009-10-28T18:40:00.000-07:00

Posted by Andrew Lipsitz

One often-overlooked reason for our current financial mess is a lack of education about money and business.

Bankers made mortgages to people who could not afford them. And those who were unable to afford their homes and other desires bought them anyway -- unfortunately, on credit. So far, 21 states now require at least some type of instruction on personal finance, according to Jump Start Coalition for Personal Financial Literacy based in Washington, D.C.

Plus, you can find a lot of free information at a U.S. government Web site available to all families: http://www.mymoney.gov/. Or, you can get information by phone at 1-888-MYMONEY. The Web site and phone line are manned by the Financial Literacy and Education Commission, made up of 20 federal agencies.

Help for teachers and parents also is available from the nonprofit Alliance for Investor Education, based in Washington, D.C. Among the alliance's 21 members are state securities regulators, the Security and Exchange Commission and Financial Industry Regulatory Authority. The Alliance provides free information at http://www.investoreducation.org/.
Newly available to consumers: An interactive game-based financial literacy course, MoneyU, which already is used in public schools and colleges. Available at http://www.moneyu.com/, the program, designed for young adults between the ages of 17 and 24, teaches skills such as how to compare credit cards and auto loans. It also teaches how to research starting salaries in a chosen field, manage debt, save and file income taxes. The aim of the interactive game is to use smart financial strategies to become a virtual millionaire.

The creator, Griffin Enterprises of Rockville, Md., is offering the game to students for $14.95 through June 1, 2010.
Expect financial literacy to become an even bigger issue in the near future.
The Financial Literacy for Students Act of 2009, introduced by Sen. Kay Hagan, D-N.C., provides grants to states that add banking, credit and taxes into school curriculums for grades six through 12.

Tahira Hira, personal finance professor at Iowa State University, Ames, Iowa, is particularly interested in seeing fewer college students experience financial distress.
"People need to learn the basic principles so they can make the right purchasing and financial decisions," she said.

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US home prices rise in most major cities in Aug.

2009-10-27T09:23:00.000-07:00

Posted by Chris O'Sullivan

Articel by J.W. Elphinstone

NEW YORK (AP) -- Home prices rose for the third straight month in August, data Tuesday showed, a key ingredient for a broad and sustained housing recovery.

The Standard & Poor's/Case-Shiller home price index of 20 major cities climbed 1 percent from July to a seasonally adjusted reading of 144.5. While prices are down 11.4 percent from August a year ago, the annual declines have slowed since February.

The index showed a widespread turnaround with prices rising month-over-month in 15 metro areas since June. San Francisco, Minneapolis and San Diego led the way.

Prices are at levels not seen since August 2003 and have fallen almost 30 percent from the peak in May 2006.

Low prices and mortgage rates combined with a temporary tax credit for first-time buyers have spurred sales. Home resales climbed more than 9 percent in September, the largest amount in more than 26 years, the National Association of Realtors said last week. Sales figures for newly built homes are due out Wednesday

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Learning How to Save Money on Almost Everything

2009-10-27T08:55:00.000-07:00

By: Amy Wingfield

Posted by: Robert Katz

Using Coupons and Networking to Get the Most out of a Dollar

In these tough financial times, families struggle to put food on the table. Many are facing this crisis together by sharing with others what they learn along the way. This has created a phenomenon of coupon blogs and internet sites all devoted to teaching others how to save money.

Major Coupon Networks and Companies

Most people are familiar with the coupon inserts found in the Sunday newspaper. The three main companies that provide these coupons are Smart Source, Red Plum and Proctor & Gamble. All three companies also provide coupons online. Providing printable coupons on the internet makes collecting and sharing coupons with others very simple.

Six years ago, two women, Julie Parrish and Heidi Kennedy, met on an internet chat group that discussed ways to save money on groceries. When that site closed, they joined another group and became group moderators. That site eventually sold. Julie and Heidi were ready create a coupon website of their own. These two women have never met in person. They communicate by means of the telephone and the internet.

House Considers Antifraud Measures for Home-Buying Credit

2009-10-22T12:45:00.000-07:00

Posted by: Zach Lungo

Article by: Martin Vaughn

First-time home buyers seeking to claim an $8,000 tax credit may face steeper documentation requirements if Congress decides to provide more time to claim the expiring credit.
Linda Stiff, Deputy Commissioner of the Internal Revenue Service, told a House panel Thursday that the IRS supports requiring those trying to claim the credit to submit a settlement statement from the U.S. Department of Housing and Urban Development, the so-called HUD-1 form, together with their tax return.
Top congressional Democrats support a temporary extension of the credit -- which expires Nov. 30 -- and are now wrestling with how long to extend it and with what safeguards against fraud should be included.
Realtors, mortgage brokers and home builders are lobbying for the credit to be extended, arguing that the real estate sector hasn't yet recovered.
Oversight Subcommittee Chairman John Lewis (D., Ga.) introduced legislation Thursday aimed at blocking would-be fraudsters seeking to cash in on the first-time home-buyer credit.
Independent auditors testifying before the House Ways and Means Oversight Subcommittee Thursday said IRS may have paid tens of thousands of fraudulent and erroneous claims since the start of this year.
For instance, more than 19,000 tax returns were filed claiming the credit for homes that hadn't yet been purchased. The claims, which should have been ineligible but were paid because IRS didn't have proper controls in place, totaled about $139 million, said J. Russell George, the Treasury Inspector General for Tax Administration.
IRS has since fixed the problem for tax future returns.
In addition, 582 taxpayers under the age of 18 claimed almost $4 million in first-time home-buyer credits, Mr. George said.
Mr. George said that while there are some instances where a minor might legitimately purchase a home, most of the cases identified by audit appeared to be claims by parents who had purchased a home but were ineligible for the credit because their incomes were too high.
The Lewis bill adds a minimum age of 18 to claim the credit, requires inclusion of the HUD-1 form, and gives IRS authority to look at prior-year returns to determine whether a taxpayer is eligible for the credit.
The credit is available only to first-time home buyers who purchased a primary residence between April 9, 2008, and Nov. 30, 2009, whose income is less than $95,000 for single taxpayers or $170,000 for married couples.
More than 1.4 million households claimed nearly $10 billion in refunds through returns filed in 2009. Hundreds of thousands more are expected to claim the credit when they file returns in 2010.
The IRS has opened criminal investigations in 115 cases of possible fraudulent schemes, involving 8,000 returns, said the IRS's Ms. Stiff. It has selected a total of 106,000 returns for audit based on questions regarding first-time home-buyer tax-credit claims.
"We cannot let fraudulent activity undermine a program that has benefited so many," said Ms. Stiff.
House Democrats would like to have Republican support for an extension of the home-buyer credit. But Rep. Charles Boustany (R., La.) said during Thursday's hearing that GOP support will be conditioned on the extension not adding to the deficit. He said unspent stimulus funds could be redirected to pay for the cost of an extension.

For More Information:
http://online.wsj.com/article/SB125622884824101553.html?mod=WSJ_hpp_MIDDLTopStories

Surprise 401(k) Performance

2009-10-22T10:08:00.000-07:00

Posted by Chris O'Sullivan

During these harsh economic times many investors have experienced some sort of decline in their retirement (401k) accounts. However, recent news out of Vanguard shows that many people may be doing much better than expected. On September 30, 2009, the median account held at Vanguard was up 7% from where it was two years earlier when the markets where at their peak.

The stock market is down around 30% from 2007, but the Dow Jones did recently climb back over 10,000. The key to surviving this downturn was proper diversification of your portfolio. Accounts invested heavily in stocks are more likely to be experiencing greater loses than accounts with a mix of less volatile securities like bonds.

Statistics show that account holders 45 years and older are recognizing greater loses in their retirement accounts. Younger people have fared better thanks to continued contributions. Three-quarters of accounts held by people aged 35 of younger are either even or up from September 2007. Part of this can also be explained by the fact that younger people tend to have less money invested in their accounts.

The key to surviving the economic downturn is making continued contributions to your retirement account. Diversifying your portfolio using stocks from emerging sectors of the market is also important. A diverse mix coupled with continued contributions will allow investors to realize bigger gains when the markets finally do recover.

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Protecting the Family Nest Egg

2009-10-22T10:02:00.000-07:00

By Andrew Lipsitz

One of the most important aspects of a sound financial plan for a family is making sure that the family income is well protected in case of an injury, sickness or death. The purchasing of insurance has a few major benefits. When the primary provider for the family gets sick or injured it is extremely important for them to be covered. While income decreases for a family in this situation, a common misconception is that family expenses stay at the same rate. The truth is, family expenses increase as a result due to medical bills and other costs that go along with a sickness or injury. So while income decreases, expenses rise, create a distressed situation for the entire family. Life insurance can be thought of as protection against leaving your family and loved ones with bills to pay off. A claim from a life insurance policy, depending on its size, can cover up to years of income, creating a pillow for the family’s financial situation.

In finding an insurance company, the most important aspects to look for are the company’s financial situation and a company’s claim-paying ability. While the two usually go hand in hand, financial strength does not necessarily mean that their claim-paying ability is on point. In such cases you would usually want to look at the company’s claim-paying history. Another way to determine which company is right for your family is by researching the major rating companies such as Moody’s and Standard and Poor’s ratings.

How much insurance should a family buy to keep them protected? Well, this question remains different for everyone, obviously. The point of insurance is to keep the family living the same lifestyle should the breadwinner become ill or pass away. So, the first step is calculating your spouse’s and your children’s annual expenses, as well as funeral costs, and decide how long of a period you can afford to cover them , since premiums are not cheap. As a rule of thumb, you should posses more insurance earlier in your marriage to cover expenses down the road. Later in life, around retirement, the need for insurance is minimal since you and your spouse have already accumulated a life savings and you are usually no longer paying for children’s expenses.

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Family Squabbles in Hyatt IPO

2009-10-20T15:40:00.000-07:00

Posted by Andrew Lipsitz

The Pritzker family, which controls Hyatt Hotels Corp., has been feuding on and off for a decade. So it follows that the dynastic squabbling continues as they plan for a Hyatt stock offering that should help reduce the family tensions.

The family in-fighting is a big enough issue that recent revisions to the prospectus for the Hyatt initial public offering include a specific warning about it. The company's initial filing with the Securities and Exchange Commission didn't mention the past family battles.

The amendments, filed as recently as last Thursday, warn that new family disagreements "may arise or continue in the future" and could "disrupt our business." In connection with the Hyatt stock offering, a dispute arose over restrictions on what family members could do with their shares, according to the amendments. As a result, some of the restrictions were loosened. For instance, family members will be able to sell up to 25% of their Hyatt holdings each 12 months, instead of the 20% originally contemplated.

The most recent prospectus amendment says that allowing the Pritzkers to sell their shares more quickly could have a negative affect on Hyatt's stock price. Another apparent bone of contention involves the role of Penny Pritzker as one of Hyatt's "independent" directors. The 50-year-old Ms. Pritzker has been heavily involved in running other family companies, some of which do business with Hyatt. She is also a first cousin of Hyatt's executive chairman, Thomas J. Pritzker, who is one of three trustees of family trusts. Mr. Pritzker, 59, is the only other family member on the board.

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Personal Bank Loans for Bad Credit – Credit Union Offers

2009-10-20T12:12:00.000-07:00

Posted By: Zach Lungo

Article By: Mike Garner

Getting a personal bank loan for bad credit is something that many Americans are doing to get money to make ends meet. With many Americans using credit unions the question is often asked if a credit union will offer a bad credit personal loan. Each situation is a little bit different but if you currently use a credit union and you are seeking a personal loan the best option is to check their website or call them personally to see what they offer.
Most credit unions offer personal loans but if you have extremely bad credit you might be denied this opportunity. Once again, there is no definite answer until you actually contact your credit union and talk to someone in the know. If you cannot get an answer then by doing a few quick Google searches for credit union personal loans will send you in the right direction.
If you currently use a credit union you know there are a few benefits over a national or regional bank. You will also want these benefits during the loan process. If your personal credit union does not offer bad credit personal loans but others in your area do you might want to contact them. Banks and financial institutions are willing to take the extra step to get a new customer so take advantage of this.
Please be aware that getting a bad credit personal loan may lead to a very high interest rate. If your credit score has dropped over the last few years and your income has not increased some loan companies are going to consider you a great risk as you could default on your loan. With this in mind, expect an interest rate on the high side possibly even in the 20% range if you are a bad credit borrower.
There are many banks and credit unions out there that are more than willing to help you get a personal loan for bad credit. It should not be very difficult to find these businesses as many of them are advertising very hard on the Internet and the television. After a few searches you are likely to find that most of the companies that offer these services will be right at your fingertips.

For more information:

http://www.subprimeblogger.com/2009/10/11/personal-bank-loans-for-bad-credit-credit-union-offers/

Average Family Owes $9,200 in Credit Card Debt

2009-10-20T12:06:00.000-07:00

Posted by Chris O'Sullivan

Article by Dave Burge

El Paso Times

Some simple, common-sense steps can go a long way toward helping you get out of credit-card debt, experts say.

First, make a vow to get out of debt and stop using your credit cards.

That may sound easy, but it's often the hardest step, experts say.

"You can't fill up a hole while you're still digging," said Mike Sullivan, director of education for Take Charge America, a national nonprofit credit-counseling and debt-management organization based in Phoenix.

Next, make a strategic plan to tackle the debt you already have.

You should also build up some savings so you don't have to rely on your credit cards in the future when you're hit with unexpected expenses or financial emergencies, experts say.

"Across the United States, (credit-card debt) really is a problem," said Maureen Hankins, director of the El Paso YWCA's Consumer Credit Counseling Service. "Instead of saving money, they're spending their money paying off debt."

The average U.S. family has about $9,200 in credit-card debt, Sullivan said.

According to the Federal Reserve, U.S. revolving debt exceeded $880 billion as of March.

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College Costs at all Time High

2009-10-20T10:08:00.000-07:00

Posted by Chris O'Sullivan

Article from CNN Money (Hibah Yousuf):

College costs are higher than ever, according to a new report, putting a degree even further out of reach for many Americans.

Tuition and fees at private 4-year schools rose 4.4% in the current school year to $26,273, according to a survey released by the College Board Tuesday.

Charges at public 4-year universities spiked over 6% for both in-state and out-of state students, to $7,020 and $18,548, respectively.

"We're in a very strong sellers market for higher education," said Pat Callan, president of the National Center for Public Policy and Higher Education, who noted that the high school graduating class of 2009 was the largest in history.

"Colleges and universities are capitalizing on that more than any other institution in the economy. If you walk around a shopping mall, nobody else is raising prices at the same rate."

Tuition prices are going up at private schools at least in part because those schools have seen their endowments dwindle. Public schools are suffering from a dip in state funding, which declined 5.7% per student this year. (College Cost Finder: Get the latest tuition.)

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Financial Habits that Can Sink a Marriage

2009-10-20T07:08:00.000-07:00

By Laura Rowley

Money conflicts can sink a relationship, even in households that aren't struggling financially. A study published in the Journal of Socio-Economics, for example, found that women argue with their significant others about money more than any other topic, including love, children, in-laws, leisure, drinking, chores, other women, and religion.

The first step to avoiding money-fueled strife in your relationship is to recognize your money styles. Psychologist and author Brad Klontz, a therapist specializing in financial issues, says everyone develops unconscious beliefs about money through childhood experience.

"Money scripts," as he calls them, are "only partially true but contextually accurate -- that is, they make total sense in the context from which they arose, but may be inaccurate in other contexts." For example, a woman he knows has been hoarding money for years without her husband's knowledge. She fears being left alone and penniless -- which happened to her in a previous relationship.

"She brought her unresolved hurt from that relationship and the resulting belief that 'you can't trust others around money' into her current relationship where she lives in dishonesty, fearing getting caught," Klontz says. "With therapy, she could have been open about taking care of herself financially in her relationship while being trustworthy herself."

There's Ready and There's Financially Ready...When Having a Baby?

2009-10-20T06:33:00.000-07:00

By: Robert Katz

While most people have an age in their head for when they think they want to have a baby, most of them never really considered whether or not they would actually be financially ready when that time comes. Love and wanting to start a family are beautiful things, but you can really ruin them both if you don't think about the costs involved before hand.
According to thousands of moms who took the Baby Centers Exclusive Survey, you'll spend approximately $10,000 in the first year your baby is born. Ten Thousand Dollars!! I read that number and I almost went and got a vasectomy. Yet, the truth is while this may seem like a lot that is the least of your worries. You have to start thinking about life insurance, disability insurance, a will, your tax status, health insurance needs, loss of income from maturnity or paternity leave, the costs of childcare, etc. the list goes on and on. Even worse, on top of all that the expenses just keep growing the older your child gets. Okay, now that I have completely scared the crap out of you, you can calm down now. The real truth is all of this is managable as long as you are prepared with a plan.
I know what your thinking, my parents had me and I turned out fine I don't really need to plan this out that much, they never really did. Well, the problem with that assumption is that, "A 2007 analysis from The Pew Charitable Trusts in Washington, D.C., found that American men have 12 percent less income than their fathers' generation did at the same age...Meanwhile, the cost of housing for families with children shot up 78 percent between 1984 and 2001, says Amelia Warren Tyagi, co-author of The Two-Income Trap and All Your Worth: The Ultimate Lifetime Money Plan." So, you see that now and days it is even more imperative for the livelyhood of your family that you understand all the expenses involved in having a baby and formulate a well thought out plan. Becoming a parent will be scary enough on its own with out burdening yourself financially in the process.

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Designing Your First Budget

2009-10-20T02:08:00.000-07:00

Posted by Matthew Maillet

Article by Liz Weston

Angelica Trummell, like millions of other college graduates, is trying to figure out how to make ends meet now that Mom and Dad won't be sending checks every month. It's not that her parents paid for everything. The art-history major worked for the campus bookstore at the University of California, Riverside, and took out $10,000 in student loans to help pay the bills. She also racked up $2,000 in credit card debt. But facing life now that she has to foot the entire bill for rent, food, utilities, insurance and debt payments is more than a little daunting.

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Madoff's Ponzi Scheme: Bringing the SEC under fire

2009-10-18T18:03:00.000-07:00

By: Zach Lungo

On Wednesday, two victims of ponzi schemer Bernard Madoff filed a lawsuit in the U.S District Court in New York claiming the SEC (Securities and Exchange Commission) failed to detect Madoff's long-running scam, which stole billions of dollars from thousands of investors. Phyllis Molchatsky and Steven Schneider released a statement through their lawyers office Herrick, Feinstein LLP. They claim, "Through its negligent actions and inactions...the SEC caused Madoff's scheme to continue, perpetuate and expand, eventually in billions in losses by investors, and directly caused (the two) plaintiffs to lose more that $2.4 million." The lawsuit goes on to claim that SEC regulators had "countless opportunities" to stop Madoff's scheme from becoming more volatile and damaging. They feel the SEC is held accountable in some respect for its negligence in not protecting investors. Furthermore, that from 1992 to 2008 the SEC received at least eight complaints or submissions indicating that Madoff was operating a ponzi scheme.
Could this scheme have been foiled in its infancy? Or was its investors blind trust and high yield returns ultimately where the responsibility lies? It is fair to note that as the market stabilized before the recession that these investors were still making double digit returns on investments when others were appreciating relatively average gains from investments. When asked about the suit, SEC spokesman John Heine said, "Based on our initial understanding of the matter, we believe there is no merit to the complaint."
The court filing, filed in the same court where Madoff plead guilty to 11 federal counts, including fraud, and was sentenced in July to 150 years in federal prison. The ponzi scheme he operated, portrayed his investment firm as legitimate when it was nothing more than a front where funds from new investors were used to payoff mature investors that were passed of as legitimate capital gains. Madoff claimed to have $65 billion, however it was later revealed that even this figure was fraudulent and the court appointed trustee, Irving Picard, is still tying to determine how much was actually stolen.
It is all too early to evaluate weather this lawsuit will hold up or if the SEC will be found accountable. Madoff has been forced to forfeit the fruits of his former lifestyle to comply with a $170 billion legal judgment. Many of Madoff's family and relatives including his wife have had separate lawsuits filed against them. It is evident that the Madoff schemers and proceedings are far from over, however pulling in government regulators and other agencies will be an interesting twist in this unfolding tale.

Click here for more Information:

http://money.cnn.com/2009/10/14/news/economy/madoff_sec_lawsuit/?postversion=2009101415

How To Handle Money in your 20's

2009-10-15T12:18:00.000-07:00

Posted by: Matthew Maillet

Article by: MSN Money Staff

Spend the money for a new suit, shoes and a haircut so you're ready for interviews. (See "A survival guide for college grads.")
•Don't spend money for a résumé kit; find a free tutorial online.
•Find out if your university has an alumni chapter nearby. Alumni are a wealth of information and are often eager to help new graduates.
•Be careful about accepting a job in an unrelated field simply because it pays more. This could delay your career progress or trap you in a field that may not make you happy.

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Identity Theft Prevention

2009-10-15T12:15:00.000-07:00

By Matthew Maillet

Identity theft is a serious matter that affected over 10 million Americans in 2008 alone (up 22% from the previous year.) Subsequently, the government has taken some positive steps in recent months to slow down this recent trend. For example, laws have been enacted in over 44 states that require companies to disclose details when identities “private data” has been compromised. Efforts like this have backed consumers in the fight against identity thieves.

One preventative approach that has been effective at limiting the monetary damages incurred from identity theft is by being proactive as a consumer. Realizing you have been the victim of identity theft and responding appropriately can limit your total losses. Consumers are more aware of the dangers and have effectively cut down the “average total loss” per theft to less than $500 (Javelin Strategy & Research.) One way to limit your loss is by reporting the crime as soon as possible.

This however has been a problem for many victims. "There are 18,000 or so police departments in the U.S., and some of them won't take police reports (about identity theft)," said identity theft expert Rick Kam, "which puts the victims in a Catch-22." Because of this problem, it is important for Congress to react accordingly. There needs to be a formal “identity theft reporting” measure put in place that provides consumers with protection.

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Swine Flu: Health Risk or Financial Killer?

2009-10-15T10:12:00.000-07:00

By Andrew Lipsitz

America’s most talked about epidemic, the H1N1 Virus, also known as the Swine Flu Virus, has affected over 33,000 Americans and has taken about 170 lives. While many American families have been concerning themselves with the health risk related to the virus, many overlook the financial and economic cost of dealing with the flu. Nobody likes to be “kicked while they’re already down,” but the H1N1 Virus does just that.

In one case, the Ramirez family was hit extremely hard by the costs associated with the virus. The father, Dr. Maurice Ramirez, was working with patients infected by the flu when he realized that he had caught it himself. As it turned out, once he got better after missing work for a week, his son caught the virus and his daughter, who was away at college, was sent home after being infected as well. While each of the family members had a quick recovery, by the end of the month, the loss of work hours, the prescription co-payments and the doctor visits had cost the Martinez family about $14,000. While the family was thrilled to have survived the troublesome month, they still had to bear the pain of watching their credit card bills inflate.

All we can do is hope to stay healthy by washing our hands and not sharing water bottles if we want this pandemic to pass. The economic effects worldwide could be disastrous if the virus continues to spread. “Reuters pointed out in 2008 that the IMF said a flu pandemic could cost $3 trillion and cause a 5% drop in global GDP. In other words, it would almost certainly turn the current deep recession into a worldwide depression.” Fortunately, the swine flu virus is only fatal to about .5% of all U.S. citizens who are affected. However, as we have seen, there are still serious financial consequences to only being infected for a week.

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Selling Your Life Insurance Policy for Cash

2009-10-13T11:35:00.001-07:00

Posted by Chris O'Sullivan

In these harsh financial times, people are looking for cash in unusual places. Some people are even looking to sell their life insurance policies in transactions known as life settlements. Firms such as Life Partners Holdings, Inc. are willing to liquidate your life insurance policy in exchange for the value of the policy upon your death. In essence, you are selling a future payout for a one time, immediate payment.

Firms will buy your policy on behalf of its investors. The firm then acts on behalf of the investors, who have now become the owners of the policy and will pay the premiums until the day you die. Firms collect the benefits upon death and pay a 9-12% return to its investors. Some firms may even buy and repackage the policies for sale to a third party.

A major downside to selling your policy is the high transactions costs. A recent study showed that seniors over the age of 65 who sold their policy received only 20% of the face value. Those looking to sell should be certain that they will not need another policy in the future. These transactions are also taxable, whereas the payouts to your beneficiaries would have been tax free. In conclusion, it is important to shop around just as you would have done when buying the policy in the first place.

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Are Free Credit Scores Actually Free?

2009-10-13T11:22:00.000-07:00

Posted by Chris O'Sullivan

Article by Jane Kim (WSJournal)

If you are curious about your credit scores, you may have tried one of the plethora of Web sites and services that offer some free credit information, then lure you into paying for your scores, usually as part of a credit-monitoring package.

Consumers are entitled by law to a free credit report—which is simply a record of your borrowing and repayment history—but the numerical scores derived from these reports will cost you, in part because credit-reporting agencies aren't required by law to provide them for free to consumers along with the reports.

Now, a handful of companies are launching services that give consumers at least a glimpse at their credit scores free of charge. The sites—Credit.com Inc., Credit Karma Inc.'s CreditKarma.com and Quizzle.com—also offer a window into the key factors that go into calculating your score, what you can do to improve them and how your credit stacks up against others. Last week, for example, Credit.com launched a free Credit Report Card that shows consumers how they're likely to rate across five credit-scoring models.

All three sites, which have ties to the credit industry, aim to make money through advertising or fees if users sign up for products their partners offer on the site, such as credit-monitoring services, credit cards or mortgages.

As banks clamp down on lending, it's become more critical than ever to know your credit score. Financial institutions use them to determine the granting and pricing of everything from credit and insurance, to cellphone usage and, in some cases, employment.

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The Inside Track on Student Loans

2009-10-13T05:08:00.000-07:00

Posted by Matthew Maillet

By Liz Pulliam Weston
MSN Money

Private student loans are harder to get. If you want to borrow more than the federal student loan limits (which range from $5,500 to $7,500 a year for college students, depending on their year and type of loan), you typically would turn to private student loans. These come with variable rates that currently average 11% to 12%. But lenders are demanding higher credit scores plus a co-signer these days. "You used to be able to get a (private student) loan with a 620 FICO score," Kantrowitz said. "These days you need at least a 650 or even a 700."

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Economy Continues to Strain Families, Affecting Both Children and Marriages

2009-10-12T18:23:00.000-07:00

Posted by Andrew Lipsitz

Seventy-eight percent of families report that they`ve been affected by theeconomic downturn according to a recent online survey from Disney Family.com. Aseconomic uncertainty continues parents remain cautious, with forty-eight percentreporting they are concerned about job security and the current job market, upfrom thirty-six percent in 2008. As a result, fifty-three percent of parentshave cut back on overall spending for their children.

Further survey findings include:* 72% of respondents reported reducing or eliminating eating out altogether * 78% of respondents report changing their grocery shopping habits by leveragingadvertised sales, clipping coupons, and buying generic brands * 74% of respondents said they are only purchasing essential items and will bemaking little to no impulse purchases this holiday season * 59% have eliminated or changed vacation plans for a cheaper alternative"A year into the recession, family finance remains a top concern among parentseverywhere. Parents continue to be focused on stretching every dollar," saidEmily Smith, Vice President of the Disney Online Mom and Family Portfolio.

"Weare pleased to offer a range of content on Disney Family.com that will helpparents keep their families on track for financial success." To aid parents with the financial concerns during the current economic crisis,Disney Family.com has added valuable information to the Finance resource(www.Family.com/Finance), which includes content such as tips to making amarriage last through money concerns and advice and tips from Laura Rowley,journalist, finance expert and author of the book "Money and Happiness."

"Financial uncertainty is introducing a lot of stress into the home as parentscontinue to stretch every dollar," said Emily Smith, Vice President of theDisney Online Mom and Family Portfolio. "We are pleased to offer a range ofpractical ideas on Disney Family.com that will help parents to keep their familyfinances on track."

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Elderly Funds: How to Financially Support Your Aging Parents or Grandparents

2009-10-12T02:06:00.000-07:00

By: Robert Katz

It is tough enough to start budgeting money for yourself, then when you get married and have kids, but most don't think about saving money or helping budget for your parents when they get old and can't do it anymore for themselves. Dementia, Alzheimer's, Old age can take it's toll on the memory and seriously effect your financial situation if not realized right away. Many elderly loose 10's to 100's of thousands of dollars in investments they didn't even realize they were making or still had. Legally, it is very hard to know if someone has dementia or is unsuitable to manage their finances and thus brokers liability when recommending risky investments is very low. Also, when is it time to move your parents out of their home and into one. Here are some tips on approaching the subject and how to go about finding the right place.

Financial Advisers have a legal obligation to put their clients financial interests above their own, while Brokers only have to supply evidence and support for their product recommendations outlining the risks, costs and benefits while keeping their customers finances in mind. Money managers are good to make sure bills and financial statements are in order. As you get older switching from a broker to a Financial Adviser and hiring a money manager might be two good ways of preventing forgetfulness, or something more serious, from costing you more than just your memory.

As far as the question on when and how to start thinking about an assisted living facility many people like to consult with a Geriatric Care Manager. They will help determine what is necessary medically for their own personal safety and some options to consider. Check insurance and for long term care policies to see how much cost they will cover and then assess how much care they can afford. An aid to come help out a couple times a week as opposed to moving to an assisted living facility can save money and serve as good preparation for the transition in the future. Being as caring, open, and honest is the best way to help your parents or grandparents with this hard realization that they do need some help.

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The Six Financial Mistakes Couples Make

2009-10-12T01:52:00.000-07:00

While anyone will tell you that talking about money is the first step in resolving problems, talk alone won't do the trick.

"People tend to be emotional and reactive about money, not strategic," she says.

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Cost of Keeping Your Family Healthy Soars

2009-10-08T10:18:00.000-07:00

Posted by Chris O'Sullivan

We all know rising health care costs are a serious issue in today's economy, but they are about to get worse. U.S. businesses that currently offer their employees health insurance will not be pleased to find out that the average cost of insuring an employee will rise 7% from last year (2009). Average spending per employee is expected to rise to over $10,000, the first time this figure has reached five digits.

Workers will bear the blunt of these price increases due to higher premiums and co-pays. After an 8% increase in cost to employees in 2009, a 10% increase is expected in 2010. Since the year 2000 health care costs have risen 149%, whereas real wages have only gone up 37% over that same time. If reform is not enacted, experts expect the cost of health care costs will rise to $29,000 per employee in the year 2020.

President Obama has recently introduced his plan to reform health care and make it more affordable both for those who are currently paying high premiums, and those who do not have any health insurance. According the Wall Street Journal, as many as 14,000 Americans are losing their health insurance as a result of job cuts. A bill is expected to be signed before the end of the year.

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Getting Married for Health Benefits?

2009-10-08T07:49:00.000-07:00

Posted by Chris O'Sullivan

Article by Kevin Sack (NY Times)

It was only last February that Brandy Brady met Ricky Huggins at a Mardi Gras ball here. By April, they had decided to marry.

Ms. Brady says she loves Mr. Huggins, but she worries they are moving too fast. She questions how well they really know each other, and wants to better understand his mood swings.

But Ms. Brady, 38, also finds much to admire in Mr. Huggins, who is three years older. He strikes her as trustworthy and caring. He has a stable job as a plumber and a two-bedroom house. And perhaps above all, said Ms. Brady, who received a kidney transplant last year, "He's got great insurance."

More than romance, the couple readily acknowledge, it is Mr. Huggins's Blue Cross/Blue Shield HMO policy that is driving their rush to the altar.

In a country where insurance is out of reach for many, it is not uncommon for couples to marry, or even to divorce, at least partly so one spouse can obtain or maintain health coverage.

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