It has been quite sometime since we've done a post here at Financial Elite. Not because we gave up on our finances or failed on our journey to payoff over $200,000 in debt, which does not include our homes, but we've been busy with life in general.
We are now 3 and a half years into paying off our massive debt that mainly consisted of credit cards.
Showing posts with label finances. Show all posts
Showing posts with label finances. Show all posts
Tuesday, June 25, 2013
Monday, February 7, 2011
How 20 Questions Could Change Your Life and Maybe Your Finances
I was reading Oprah's O Magazine the other day (yes, I do read Oprah's magazine) and came across an article called "20 questions that could change your life" and found it to be thought provoking. Although, I do think the article was female driven and didn't see why these questions couldn't be applied to males as well, and perhaps question you could ask yourself when it comes to your finances. Here are the 20 questions and how I answered them:
- What questions should I be asking myself? This is a question that should be asked frequently. It should be the top of your list because it it creates an alert, thoughtful mind state. If you are working to get out of debt, create your emergency fund, or start investing for retirement this should be the first question you ask.
- Is this what I want to be doing? Are you doing exactly what you dream about doing? For me, I have so many interests and I try to touch each one of them. I love writing for Financial Elite and wish I could contribute more articles on a daily basis. I am also a comic book and memorabilia collector, which I write about as well and between the too it can be hard to balance. I love our family business just as much as writing and collecting. So, yes, I do like what I am doing, I just need to learn how to balance each of them. Sometimes I feel like you can only be master of one and you have to pick which one you want to be the master of.
- Why worry? Things we worry about are only hypothetical events. So, why worry about them? I freaking out right now because I think we are going to owe a lot money on our taxes, but we have a great accountant and I know she will help us every way possible. Why should I worry until the taxes are actually complete? It's just taking away from the other joys in my life.
- Why do I like {cupcakes} more than I like {people}? The likes and dislikes in the brackets can be changed to fit your circumstances. Why do I like being debt free more than like being in debt? Why? Because debt sucks. Debt leads to worry, but that leads me back to questions # 3. Maybe the questions need to be, Why do I like prosperity more than I like being debt free?
- How do I want the world to be different because I lived in it? When answering this question you should be living by design, not by accident. I want to make people aware of the importance of financial knowledge. Hence, why I write this blog. In the end I would like to have been a financial authority like Suze Orman or Dave Ramsey.
- How do I want to be different because I lived in this world? For this question make a list, make a vision board, make a promise. I would like to travel more and see how different cultures live and feel about life.
- Are {Vegans} better people? The answer to this question should always be no. For instance, Are people who are debt free better than people who have debt?
- What is my body telling me? Your body never lies. If it doesn't feel good, it probably isn't. Do what makes you feel happy. If you are not feeling well, try eating better and exercise maybe. I was having a lot of foot pain related to weight gain. I lost 13 pounds so far this year and the foot pain has gone away.
- How much junk could a chic chick chuck if a chic chick could chuck junk? We all could do without certain relationships, many of our possessions, and most of our thoughts. I begun some Spring cleaning and have sold stuff at a yard sale. Get rid of your clutter and make some money while you are at it.
- What's so funny? My 1 year old daughter cracks up at almost everything and she gets me laughing right along with her. Find things and situations to laugh at. Toddlers tend to laugh on average of 400 times a day. While adults tend to laugh life an average of 15. Sounds like we all need to be Toy R Us kids and never grow up. Laugh damn it!
- Where am I wrong? Ask where you are wrong rather than insist you are right. Everyone should learn about finance? Let me know if I am wrong.
- What potential memories am I bartering, and is the profit worth the price? Don't choose social acceptance over your heart's desires, or financial gains over ethics, or your comfort zone over the adventure you were born to experience. I had a comic book themed costume party for my fortieth birthday that some felt was childish, but I didn't care. It was what I wanted to do and I did it. Don't give in to what people think a second thought. Do what makes you happy.
- Am I the only one struggling not to {fart} during {yoga}? Are you ashamed that you are in debt or your house is being foreclosed on. Don't be. You are not the only one struggling in this economy right now, but there are things you can to do to help your situation. Start by getting educated on finance.
- What do I love to practice? Some believe that none of us are born with any talents, but we gain skills through practice. Lots of people become authorities at what they do, but in order to do that, you must love, not like, what you do. I'd love to be an authority like Suze Orman or Dave Ramsey. Am I there yet? Probably not, but if I keep working on it, I may just be one day.
- Where could I work less and achieve more? You need to get creative with this one and find available resources to find more time in your life and life in your time. This is a big one for me and since I have so many interest, it's definitely one I need to master.
- How can I keep myself absolutely safe? Doing what you long to do, despite fear, will help you accomplish this. You may notice this is a common theme among these questions. Think about what you long to do and like Nike says, "Just Do It!"
- Where should I break the rules? You don't have to confirm to all of societies restraints. Live a little.
- So say I lived in that fabulous house in Tuscany, with untold wealth, a gorgeous, adoring mate, and a full staff of servants...then what? Money isn't everything. Find what you love to do and follow your passions and your desires for riches will diminish. "A man who loves his job will never work a day in his life."
- Are my thought hurting or healing? Your thoughts will endanger your happiness. Studies show that being grateful increases happiness. Be grateful for things you do have. For me, a loving wife, a healthy child, a roof over our head, food on the table are things that I am grateful for on a daily basis. If you have love and eat everyday, you are off to a good start.
- Really truly: Is this what I want to be doing? We asked this one already. So, ask it again. Follow your heart and your life and finances will change.
Sunday, January 30, 2011
Can Being a Horder or a Pack Rat Effect Your Finances?
Shows like Hoarders have raised public awareness about compulsive hoarding syndrome. Shows like this typically reveal homes filled to the brim with clutter, useless items, trash and even worse. But what abut less extreme examples.
"There is a difference between a 'collector' and a true 'hoarder.' With the hoarder, the person simply cannot discard items, " says Stephanie Glover, a director at Behavioral Healthcare Options. "They cannot throw things away because they feel better and safer when surrounded by the things they've collected."
Hoarding typically runs in families and usually starts in early adolescence.
One theory is that hoarding is linked to emotional deprivation, especially a lack of family warmth. Collecting starts as a way to cope because being surrounded by things makes the person feel better.
Perfectionism also plays a role. "Hoarders often worry about making the right decision," Glover said. "Should they keep something or throw it away? Sometimes they get so distressed thinking about it, they end up keeping everything."
Medication and psychotherapy can help. But if you are worried about someone, Glover advises speaking with a mental health professional before trying to intervene.
Warning Signs:
"There is a difference between a 'collector' and a true 'hoarder.' With the hoarder, the person simply cannot discard items, " says Stephanie Glover, a director at Behavioral Healthcare Options. "They cannot throw things away because they feel better and safer when surrounded by the things they've collected."
Hoarding typically runs in families and usually starts in early adolescence.
One theory is that hoarding is linked to emotional deprivation, especially a lack of family warmth. Collecting starts as a way to cope because being surrounded by things makes the person feel better.
Perfectionism also plays a role. "Hoarders often worry about making the right decision," Glover said. "Should they keep something or throw it away? Sometimes they get so distressed thinking about it, they end up keeping everything."
Medication and psychotherapy can help. But if you are worried about someone, Glover advises speaking with a mental health professional before trying to intervene.
Warning Signs:
- Saving items that are seen by most as unnecessary, even worthless, such as newspapers, magazines, and old trash and mail.
- Compulsively buying or saving excessive quantities of any kind of item.
- Treating all saved items with equal value, whether it is an expensive necklace or an old shopping list.
- Experiencing intense anxiety or distress when attempting to discard, or even thinking of discarding, something that everyone else considers worthless.
- Saving things as a way to combat anxiety provoking thoughts.
- Having furniture, kitchen equipment or rooms that cannot be used for the intended purpose.
Saturday, October 9, 2010
3 Down and 1 to Go: End of the Year Organizing
Day 282 of my Financial Freedom Countdown
Can you believe three quarters of 2010 has flown by already? The end of 2010 is upon us and I really want to end it with a "clean" slate. We won't be debt free this year, but we can end the year with a bang by keeping our finances tidy.
My wife hates clutter and she has no problem throwing absolutely everything away. I on the other hand like to keep everything. I am far from being a hoarder, but sometimes I feel like Monica from the TV series "Friends." Monica was known as a clean freak, but come to find out in one episode Monica used to hide tons of stuff in the hall closet. That's how I am. On the surface everything looks spotless, but if you look in our spare office or in the garage, you'll see a different picture.
I do on the other hand believe that orderliness begets wealth. If you have a pile of bills and statements, whether they are paid or not, it could be that you are clueless about what's coming in and going out. I do however, to my wife's amazement, know exactly where to find everything. For most however, unless you consciously open, read, and file away your bills and statements, you won't be connecting with your money and taking control of your financial life.
I am taking a week off to spend time with my daughter and work on my business rather than work in my business and part of this includes eliminating much of the clutter that drags me down.
I am going to start with loose statements and bills. If you would like to join me in this process I want you to grab the following:
I am going to use a combination of file folders in my file cabinet to store the majority of the statements in and I also have a water tight case to keep the forever documents in.
So how long should you keep all these items you just organized? Here's breakdown of the bills and statements you should keep.
Monthly Bills
There are items that you should never throw away. Such as: birth certificates, marriage license, divorce decree, will, trust, estate planning documents, and death certificates.
Keep copies of all loans that have been paid off (mortgage, car, student, etc.). You never know what could resurface on your credit report.
I have my work cut out for me. Wish me luck.
Photo via (BetaInvestmentYogi)
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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My wife hates clutter and she has no problem throwing absolutely everything away. I on the other hand like to keep everything. I am far from being a hoarder, but sometimes I feel like Monica from the TV series "Friends." Monica was known as a clean freak, but come to find out in one episode Monica used to hide tons of stuff in the hall closet. That's how I am. On the surface everything looks spotless, but if you look in our spare office or in the garage, you'll see a different picture.
I do on the other hand believe that orderliness begets wealth. If you have a pile of bills and statements, whether they are paid or not, it could be that you are clueless about what's coming in and going out. I do however, to my wife's amazement, know exactly where to find everything. For most however, unless you consciously open, read, and file away your bills and statements, you won't be connecting with your money and taking control of your financial life.
I am taking a week off to spend time with my daughter and work on my business rather than work in my business and part of this includes eliminating much of the clutter that drags me down.
I am going to start with loose statements and bills. If you would like to join me in this process I want you to grab the following:
- Monthly bills, bank statements, and pay stubs
- Investment statements (pension updates, 401(k) statements, brokerage and fund statements, etc.)
- Tax returns and supporting docs
- Policy documents and Deeds (insurance policies, home deed, car title, etc.)
- Warranties and user manuals
- Things to keep forever (marriage license, will, trust, birth certificate)
I am going to use a combination of file folders in my file cabinet to store the majority of the statements in and I also have a water tight case to keep the forever documents in.
So how long should you keep all these items you just organized? Here's breakdown of the bills and statements you should keep.
Monthly Bills
- Utility Bills. Keep these for one year. If you claim a home business deduction like I do, keep statements for at least three years. Just in case the IRS inquires.
- Pay Stubs. Keep a years worth. Once you get your W2 and match it to your stubs. You can toss the stubs.
- Bank Account and Credit Card Statements. Keep these for one year. If you plan to buy a home or get a car loan any time soon you might want to keep two years worth. Banks are triple checking income these days and you might have some explaining to do if things don't add up.
- You may receive either monthly or quarterly statements as well as, a yearly statement. Once you get the annual statement get rid of the others.
- If you do any trading keep the record of these transactions for at least three years.
- Save the IRS form 8606 when making deposits to nondeductible contributions to a traditional IRA or conversions to a ROTH IRA.
- You should keep the the last three years of returns since this is the time frame that the IRS has to came back at you.
- If the IRS suspects you have not been reporting income you may need to show up to six years of returns. I think you should keep at least seven years of returns. Especially, if you own your own business or are self employed.
- The IRS does have record keeping guidelines. Check out Publication 552 on their website irs.gov/pub.irs-pdf/552.pdf.
- Keep the policy statements for accounts like your auto and homeowner's insurance. You should also keep the deed to your home and title to your car.
- Save active warranties; likewise get rid of expired ones.
- I love to keep my user manuals, but for gadgets you no longer have be sure to toss them. You could really toss all your manuals as you can get copies online for most manufactures. Check out www.usersmanualguide.com and http://www.manualnguide.com.documents/.
I have my work cut out for me. Wish me luck.
Photo via (BetaInvestmentYogi)
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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Saturday, August 7, 2010
Busy, Busy, Busy!
I need a little bit of a break tonight, but we'll back tomorrow with more on our war against debt. In the meantime, the Scripture and Quotes of the Day will be up in just a few.
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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Wednesday, August 4, 2010
Should I Use My Credit Cards to Help Make Payments Towards My Debt?
I always thought that things were going to get better, but two years after that point, things really haven't improved economically. I had figured that everything was going to turn around and we would payoff all these cards again just like we did in the good old days, but we're still waiting for the good old days.
I am going to tell you now, DO NOT USE YOUR CREDIT CARDS AS AN INCOME SUPPLEMENT! I made the mistake of thinking that at any moment things would be the way the used to be and we would have no problem paying off our cards. But in times like these you CANNOT base your financial decisions on what used to be, you need to focus on what you have today. I know how hard this is to consider and that you are thinking if you just take that cash advance it all be fine. At this point things are not fine. That doesn't mean that they aren't going to get better future, but right now is just not the time.
If you really need to supplement your income here are a few ways you can do that without relying on credit cards:
- Check around your house for items you can sell. I have sold everything from clothes, CDs, and even parts of my toy and comic book collection to get cash to put towards my debt.
- Get a job! Unemployment is at a high right now, but you could find a second job that could supplement your income enough to help make up the difference. I've worked at night as a security guard and a janitor to help me get by.
- Rent out a room in your home or find a roommate to share the rent.
- Turn your hobby in a business. Blogging about personal finance makes me a couple of extra bucks.
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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Monday, August 2, 2010
Decluttering My Finances, Home, and Personal Life
We are in need of decluttering many aspects of our lives. Not only materially, but emotionally and physically. For myself as well as others, letting things go can cause much anxiety. But I know that letting go leaves room for more to come. That is true not only of our relationships, but of all things.
Like myself, so many were optimistic that this year was going to be a better year than the past couple. I still feel that way and know 2010 will finish out just as great as it has begun. My relationship with my wife has intensified with the arrival of our daughter and our finances are on the road to recovery as we have managed to pay off almost $20,000 worth of debt, with the balances on our credit cards getting lower and lower each month. Yet the excitement is beginning to wear off and I need boost to keep moving forward.
I think that continuing to clean house is just what I need and doing just that is a great way to re-energize. When cleaning house, both literally and materially, ask yourself if the things in your life promote joy and usefulness, or do they cause stress and bring you down?
I feel as though we have truly started a lifestyle cleanse this year and it is one that I want to continue and to constantly evolve. I had seen a list that Oprah suggested using to declutter your life and I think it is one that I am going to start following myself. If you need inspiration to help you with your life cleanse, here's her list:
- Relationship to self -- stay away from decisions that don't support self-care, self-value, and self-worth.
- Relationship to others -- Look at the people in your life. Do they give you energy and encourage your personal growth, or do they block that growth with dysfunctional dynamics? If they don't support you as a loving, open, free, and spontaneous person. Say goodbye to them.
- Relationship to emotional life -- Stop stagnant patterns that no longer serve you.
- Relationship to work -- Don't just reduce the clutter of paperwork, inefficiency, and over communication, but also strive to have a balanced workload and make your work invigorating, inspiring, collaborative, and empowering to others.
- Relationship to nature and play -- See these as expressions of love and opportunities to fill your life with truth and joy.
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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Saturday, July 31, 2010
Considering Getting Another Job to Get Out Debt?
There were mistakes made, but I am willing to get them corrected for the sake of my family. My first encounter with becoming debt free I worked a second job. It made all the difference with getting my debt paid off. Getting out of debt and paying off your credit cards takes hard work. Not only by working with your creditors, but possibly having to get a second job. Unfortunately, those of us in debt need to be willing to work in order to fix the situation that we created with our own irresponsibility. How willing are you do what it takes to get out to debt?
You may actually need to be willing to get another job for a while. Getting into debt was not caused by what someone else did. It was made by choices that you made that brought you to that situation. If you are stressed financially by what you did to yourself then you need to do something about it. If you think it's too hard and you aren't willing to do what it takes then you will always have debt. Are you lazy? Laziness will get you nowhere. We all make mistakes and I am in debt just like you, but are you willing to take responsibility for those mistakes? If you don't do something now, you will be doomed to be in debt forever.
I hope in a way this post has made you mad. Sometimes it takes getting pissed off to get out of debt. Along with a willingness to reduce spending, getting another job, and selling your stuff.
I want to get out of debt so bad, it's becoming an obsession with me. How about you? How badly do you want to be debt free?
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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Friday, July 30, 2010
Should Couples Have Separate Accounts?
I was reading an article regarding a married couples separate finances and thought I'd give my two cents about that subject. The article stated, "Neither knows what the other is doing" and it seemed like a case of "the left hand doesn't know what the right hand is doing" to me. Warren McIntyre, a financial planner form Troy Michigan said, "For starters, the couple aren't even sure how much they're saving annually." So from my own experience and based on this case scenario, I think you should not have separate accounts for your finances.
Why? Because you are a team. You should be working together to build wealth. Spouses should keep finances in one account and pay and spend everything together. If you are not one with your spouse, why are you even married?
Speaking from experience, when you separate your finances, you are setting yourself up for divorce. You intended to be together when you got married didn't you? Of course you did. Hopefully, that's why you got married in the first place. When you are married you should be together in every way, whether it be with money, your assets, and finances too.
My first wife and I had separate accounts and it was a disaster. My current wife and I began our marriage with separate accounts and I feel it is partially part of the reason we are in financial jeopardy now. Since we united all of our finances miracles began to happen and our finances are making a come back. A couple that balances the checkbook together, stays together.
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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Wednesday, July 28, 2010
Should I Have Paid My Fiance's Debt?
It's a possibility the time that they have left to collect on the debts is coming to an end and they may be trying to make a last ditch effort to collect. Before we were married and back in the day when I was debt free, I had considered paying the debts off for my at the time future wife. But should I have paid my sweeties debts before we got married?
At the time I felt we weren't married yet and those debts weren't my responsibility until we were married. She really worked hard on getting most of her debts paid and her credit cleaned up before we got married. I really pushed to make sure we were on the same financial page before we said, "I do," but all of those issues were not entirely worked out, hence the credit issues we are currently enduring. I am not saying that you need to be entirely debt free before you get married, although it doesn't hurt, you really need to make sure you both are in agreement with your spending and lifestyle.
Your finance' needs to deal with their financial issues. Dealing with debt is psychological and emotional. Do everything you can to get yours and their finances under control before you get married. The number one reason couples get divorced is because of money. Get that under control and your marriage may last a lifetime.
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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Sunday, July 25, 2010
Shhh! Don't Tell My Spouse I Have Debt: 6 Ways to Come Clean With Your Spouse
A balance between being supportive and holding someone accountable can take experience and commitment. We all have impulsive moments, but when they are frequent and uncontrollable, it can be hard to admit. It is extremely hard when a husband or a wife owes thousands on a credit card that the other knows nothing about. When your spouse comes to you with this news, you need to listen with understanding. One reason someone won't come clean is because they are afraid of what you are going to say.
If you are scared to death to tell your spouse about your debt, here are six ways to help you come clean:
- You have to tell the whole truth and nothing but the truth. Coming clean about $10,000 of debt on one credit card and still keeping another credit card with a $7,500 balance a secret doesn't work. It's all or none.
- Decide a time when you and your spouse can get together to discuss the debt. Ask your spouse to hear you out before they respond to your confession. Be sure to tell them the situation as sincerely as you can and exactly as it happened.
- After you tell them everything ask them what they think and listen to them just as they listened to you.
- Have your spouse help you devise a plan of how to pay off the debt, use a combination of budgeting and debt snowballing. Sell things at a loss if you have to.
- Have weekly meetings to stay accountable and continue working on paying off the debt. This will help prevent a relapse and keep your communication open about your finances.
- When the debt is repaid in full continue talking about your finances. Remember you are team and should be working on your wealth building together.
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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Wednesday, July 21, 2010
What if My Spouse Bullies Me to Debt?
I was talking to a friend of mine today and she told me how different her and her husband are when it comes to their finances. It reminded me of my first marriage and it seems like with her story and mine, the strong willed spouses were the ones bad with finances.
If you are NOT the stronger of the two in your marriage, you MUST learn to speak up when you think something is wrong! I made the mistake of waiting too long when the amount of credit card debt I had in my first marriage got out of hand. I did sort of make the same mistake in my second marriage, but I feel it was different because I just ignored what was happening and I really felt the economy was going to turn around at any minute. I honestly felt everything was going to be back to normal and it was all going to be alright. Don't make the same mistakes I made and follow stupidity. If you know you should not be living beyond your means and charging up your credit cards left and right, do something! Speak your mind!
When it comes to wealth building you both have to work together if it is going to work. If the less assertive one is better with finances, the stronger of the two's bad financial habits are going to take over unless the wiser one stands up for themselves and becomes the stronger one.
If you've never been the stronger one, you'd better learn. Your marriage and your families finances are depending on it. You need to say "NO" when you know too much money is being spent or your credit card balances are getting out of control.
There is no need for name calling or placing the blame, but you do need to get assertive with the situation. The first time you do this you will probably start a fight. My first wife refused to go to counseling, but that might just be what you have to do. You might as well do it now because if your debt is mounting, your upcoming financial meltdown is going to push you in that direction anyway.
For the sake of your family and your financial future, you need to get tough. When you know what is happening is wrong, then say, "This is wrong!" If you don't then, "All you have to lose is Marriage."
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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Friday, July 2, 2010
11 Ways to Make Your Finances Stress Less
Seems like everyone is being pushed to their limits these days with credit cards being maxed out, people in fear of losing their jobs, or even losing their homes to foreclosure, and being stressed does not help any of those situations. Stress could lead to making rash or illogical decisions instead of doing what is right.
Here are eleven tips to help you and your family manage tension and think with a clear head during these difficult times.
- NURTURE GOOD CONNECTIONS with those you care about, and who are supportive and comforting to you.
- STAY FOCUSED on your regular work and home activities.Routines are especially calming and reassuring to children.
- LIMIT YOUR INTAKE OF THE NEWS and be aware of how disturbing such programs may be to children.
- GIVE GUIDANCE, SUPPORT AND REASSURANCE to the vulnerable people people in your life, especially children, even if you don't always feel it yourself.
- DO SOMETHING PLEASANT AND ENJOYABLE EVERY DAY to revitalize energy, expand problem-solving skills and strengthen your personal resiliency.
- PROVIDE SUPPORT TO OTHERS because there is always someone who is less fortunate than you are.
- STAY IN TOUCH WITH SOURCES OF SPIRITUAL STRENGTH AND RENEWAL, such as nature, prayer, yoga and meditation.
- BE GOOD TO YOURSELF be exercising, eating healthy food and getting enough sleep.
- AVOID EXCESSIVE USE of alcohol, tobacco or drugs
- GIVE YOURSELF PERMISSION to feel and grieve the losses of others.
- MONITOR FEELINGS OF HELPLESSNESS OR LOSS OF CONTROL and seek professional help if you need it.
How do you cope with the stress of your finances, like debt and savings?
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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Saturday, January 23, 2010
Obama Has More Economic Work To Do
From Tom Raum at The Associated Press: Obama facing huge economic challenges ahead
He can't pull back the stimulus to quickly, because that could kill a fragile recovery. If he steps to hard on the throttle to create more jobs, responding to another voter imperative, he risks feeding inflation and restarting a dangerous cycle.
More than half of the 7 million-plus jobs lost since the recession began in December 2007 vanished since Obama signed the $787 billion stimulus package last Feb. 17. That aid was intended to help reverse job losses.
The unemployment rate then was 7.6 percent. Now it's 10 percent.
President Franklin D. Roosevelt made that mistake in 1937 when he thought the Depression was over and decided to cut spending while the Fed tightened monetary policy. that only made things worse.
Forecasters say it could be years before the employment rate drops back below 8 percent, let alone to pre-recession levels of 5 to 6 percent. It took four full years for employment to regain its peak after the mild 2001 recession.
He can't pull back the stimulus to quickly, because that could kill a fragile recovery. If he steps to hard on the throttle to create more jobs, responding to another voter imperative, he risks feeding inflation and restarting a dangerous cycle.
More than half of the 7 million-plus jobs lost since the recession began in December 2007 vanished since Obama signed the $787 billion stimulus package last Feb. 17. That aid was intended to help reverse job losses.
The unemployment rate then was 7.6 percent. Now it's 10 percent.
President Franklin D. Roosevelt made that mistake in 1937 when he thought the Depression was over and decided to cut spending while the Fed tightened monetary policy. that only made things worse.
Forecasters say it could be years before the employment rate drops back below 8 percent, let alone to pre-recession levels of 5 to 6 percent. It took four full years for employment to regain its peak after the mild 2001 recession.
If You're a Business Owner Get Ready for Another Tough Year
Form Catherine Clifford at CNNMoney: Business owners brace for another rough year
Do you have any idea if the economy will rebound in 2010? Small business owners don't; and it's the single biggest challenge they face on planning for the year ahead.
Economic uncertainty is their biggest challenge...64% called it a threat to the growth ans survival of their business.
Mor than 70% said their sales dropped or stayed flat on 2010, with just 225 reporting revenue growth.
Rising costs o push pink slips: 92% of small business owners said they expect an increase in the cost of their premiums in 2010.
Tight credit is another obstacle. "Country to various reports that the credit crunch has eased or is no longer a problem, NSBA's members are still struggling.
The credit crunch is definitely not over and that is a painful fact for many small business owners. It's a shame that the very banks that we provided bailout funds to have cut their small business lending by $12.5 billion in the last half of 2009. So many business owners can't get the adequate financing to continue running their business. What's a small business owner to do?
Do you have any idea if the economy will rebound in 2010? Small business owners don't; and it's the single biggest challenge they face on planning for the year ahead.
Economic uncertainty is their biggest challenge...64% called it a threat to the growth ans survival of their business.
Mor than 70% said their sales dropped or stayed flat on 2010, with just 225 reporting revenue growth.
Rising costs o push pink slips: 92% of small business owners said they expect an increase in the cost of their premiums in 2010.
Tight credit is another obstacle. "Country to various reports that the credit crunch has eased or is no longer a problem, NSBA's members are still struggling.
The credit crunch is definitely not over and that is a painful fact for many small business owners. It's a shame that the very banks that we provided bailout funds to have cut their small business lending by $12.5 billion in the last half of 2009. So many business owners can't get the adequate financing to continue running their business. What's a small business owner to do?
Your Password Could be Screaming HackMe
From Ashlee Vance at The New York Times: If your Password Is 123456, Just Make It HackMe
One out of five Web users still Decides to the leave the digital equivalent of a key under the doormat:easily guessed password like "abc123," "iloveyou" or even password to protect their data.
"I guess it's just a genetic flaw in humans," said Amichal Shulman, the chief technology officer at Imperva, which makes software for blocking hackers. "We've been following the same patterns since the 1990's."
Most Popular Passwords
1. 123456
2. 12345
3. 123456789
4. password
5. iloveyou
6. princess
7. rockyou
8. 1234567
9. 12345678
10. abc123
11. nicole
12. daniel
13. babygirl
14. monkey
15. jessica
16. lovely
17. michael
18. ashley
19. 654321
20. qwerty
21. iloveu
22. michelle
23. 111111
24. 0
25. tigger
26. password 1
27. sunshine
28. chocolate
29. anthony
30. angel
31. FRIENDS
32. soccer
I know we have a lot to remember during this digital age, but come on guys, let's get a little more creative with the passwords. With the rise of identity theft it's more important now than ever to protect your financial well being by protecting your passwords.
One out of five Web users still Decides to the leave the digital equivalent of a key under the doormat:easily guessed password like "abc123," "iloveyou" or even password to protect their data.
"I guess it's just a genetic flaw in humans," said Amichal Shulman, the chief technology officer at Imperva, which makes software for blocking hackers. "We've been following the same patterns since the 1990's."
Most Popular Passwords
1. 123456
2. 12345
3. 123456789
4. password
5. iloveyou
6. princess
7. rockyou
8. 1234567
9. 12345678
10. abc123
11. nicole
12. daniel
13. babygirl
14. monkey
15. jessica
16. lovely
17. michael
18. ashley
19. 654321
20. qwerty
21. iloveu
22. michelle
23. 111111
24. 0
25. tigger
26. password 1
27. sunshine
28. chocolate
29. anthony
30. angel
31. FRIENDS
32. soccer
I know we have a lot to remember during this digital age, but come on guys, let's get a little more creative with the passwords. With the rise of identity theft it's more important now than ever to protect your financial well being by protecting your passwords.
Tuesday, January 19, 2010
Citigroup: Reports Fourth Quarter Loss of $7.6 Billion
Banks are still taking it in the shorts without any financial improvement as Citigroup reported today in a press release fourth quarter loss of 7.6 billion. On a per share basis the company lost 33 cents per share. While managed revenues were $91.1 billion for the year. The fouth quarter net loss was $7.6 billion.
Vikram Pandit, Chief Executive Office of Citigroup, reported they had cut costs by over $13 billion annually, reduced head count by 100,000, and reduced assets by $500 billion from peak levels.
David Ellis at CNNMoney reported: Citigroup suffers $7.6 billion loss
The bank also highlighted some encouraging within its massive loan portfolio. Credit losses fell to 7.1 billion during the quarter , down $800 million from the previous three month period.
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Vikram Pandit, Chief Executive Office of Citigroup, reported they had cut costs by over $13 billion annually, reduced head count by 100,000, and reduced assets by $500 billion from peak levels.
David Ellis at CNNMoney reported: Citigroup suffers $7.6 billion loss
The bank also highlighted some encouraging within its massive loan portfolio. Credit losses fell to 7.1 billion during the quarter , down $800 million from the previous three month period.
For answers to all your financial questions check us out. Subscribe to learn how prevent another economic crisis.
Saturday, January 16, 2010
The Affluent's Mindset is shiftimg With the Economy
Whatever may have started the economic crisis, one thing for certain is times are changing because of it.
This week Bank of America announced findings from the latest Merrill Lynch Affluent Insights Quarterly, a survey of the values, financial priorities and concerns of affluent Americans and the challenges and opportunities they face.
"The survey, focused largely on retirement related issues, reveals that many affluent Americans are rethinking their vision of retirement and provides lessons from retirees on what they wished they had done differently when planning for retirement. Insights from the survey results will help the company better position products and solutions with consumers.
Conducted in December 2009 by Braun Research on behalf of Merrill Lynch Wealth Management, the survey sampled 1,000 affluent households across the country--individuals with investable assets in excess of $250,000. The research is the second in this series of quarterly surveys.
Among the key findings:
- Americans continue to feel the impact of the recession, with 68% of non-retired respondents indicating that the recession has taken a toll on their finances in some way.
- Despite the turmoil, 58% of respondents found some 'silver lining' in how the recession has affected their retirement planning and priorities, including: an enhanced focus on what will matter most in retirement, such as family and friends, taking their retirement planing off 'autopilot' and assessing what type of lifestyle they will be able to afford and maintain.
- However, many Americans (59% of retirees and 53% of non-retirees) are deeply concerned about the ramifications of rising health care costs.
- Other concerns among respondents include the potential for inflation, preserving inheritance for children and grandchildren, supporting philanthropic activities and caring for aging parents.
- Half of retired respondents indicated they would have focused less on the "numbers" and on hitting a specific nest egg dollar amount and more on specific life goals.
- Recommendations offered by retirees via this survey include: building a plan around what is most important to you in retirement, paying down debt and having a plan to manage retirement income throughout retirement.
- Only 31% of retired respondents worked with a financial advisor when planning their retirement in hindsight, more than half (55%) wished they had started doing so sooner.
"Helping our clients plan for retirement will continue to be a core focus for our business in the years ahead," said Sallie Krawcheck, president of Bank of America Global Wealth & Investment Management. "Our experienced financial advisors work closely with clients to establish a deep understanding of their lifetime aspirations. Through this personal approach, coupled with a sophisticated portfolio of investment and banking solutions, we strive to help clients minimize the complexity and uncertainty associated with retirement, allowing them to concentrate their efforts on what matters most."
"The recession has caused attitudes toward retirement to evolve at an unprecedented pace. For many, retirement is no longer a specific date at which an individual goes from working to not working to not working," said Andy Sleg, head of Bank of America's Retirement & Philanthropic Services. "Today, the transition into retirement is tending to be more gradual and fluid. An effective retirement strategy should go beyond an accumulation target and retirement income planning, and take into account what is truly important to an individual or couple, as well as the challenges they may face in the future.
Bank of America strives to be the customer's trusted destination for not only retirement planning but all their saving and investment needs, and continually wants to learn more about what is on customers minds.
"Understand our clients' retirement related realities and pursuits is a tremendous asset and helps us to guide them on their journey," said Claire Huang, head of Bank of America's marketing for Global Wealth Management, Global Banking and Global Markets. "Through continuously conducted surveys such as this, we have greater insight into their current priorities and concerns. These findings, along with our market research, help to position us for an evolving marketplace and able to offer appropriate solutions."
Advice from Retirees
Retirees were asked what advice they would give to those within 10-15 years of retirement and to those 15 plus years from retirement.
Within 10-15 years of retirement
- Build a plan around what is most important to you in retirement (51%)
- Have a plan to manage retirement income throughout retirement (47%)
- Pay down debt (40%)
- Account for unexpected costs and risks such as health care, cost of living and/or market fluctuations (38%)
- Pursue home ownership (24%)
- Be cautious of taking investment risks (21%)
More than 15 years to retirement
- Build a plan around what is most important to you in retirement (43%)
- Pay down debt (41%)
- Have a goal to manage retirement income throughout retirement (39%)
- Account for unexpected costs and risks such as health care, cost of living and/or market fluctuations (38%)
- Work with a financial advisor if you don't already (25%)
- Pursue home ownership (25%)
For answers to all your financial questions check us out. Subscribe to learn how prevent another economic crisis.
This week Bank of America announced findings from the latest Merrill Lynch Affluent Insights Quarterly, a survey of the values, financial priorities and concerns of affluent Americans and the challenges and opportunities they face.
"The survey, focused largely on retirement related issues, reveals that many affluent Americans are rethinking their vision of retirement and provides lessons from retirees on what they wished they had done differently when planning for retirement. Insights from the survey results will help the company better position products and solutions with consumers.
Conducted in December 2009 by Braun Research on behalf of Merrill Lynch Wealth Management, the survey sampled 1,000 affluent households across the country--individuals with investable assets in excess of $250,000. The research is the second in this series of quarterly surveys.
Among the key findings:
- Americans continue to feel the impact of the recession, with 68% of non-retired respondents indicating that the recession has taken a toll on their finances in some way.
- Despite the turmoil, 58% of respondents found some 'silver lining' in how the recession has affected their retirement planning and priorities, including: an enhanced focus on what will matter most in retirement, such as family and friends, taking their retirement planing off 'autopilot' and assessing what type of lifestyle they will be able to afford and maintain.
- However, many Americans (59% of retirees and 53% of non-retirees) are deeply concerned about the ramifications of rising health care costs.
- Other concerns among respondents include the potential for inflation, preserving inheritance for children and grandchildren, supporting philanthropic activities and caring for aging parents.
- Half of retired respondents indicated they would have focused less on the "numbers" and on hitting a specific nest egg dollar amount and more on specific life goals.
- Recommendations offered by retirees via this survey include: building a plan around what is most important to you in retirement, paying down debt and having a plan to manage retirement income throughout retirement.
- Only 31% of retired respondents worked with a financial advisor when planning their retirement in hindsight, more than half (55%) wished they had started doing so sooner.
"Helping our clients plan for retirement will continue to be a core focus for our business in the years ahead," said Sallie Krawcheck, president of Bank of America Global Wealth & Investment Management. "Our experienced financial advisors work closely with clients to establish a deep understanding of their lifetime aspirations. Through this personal approach, coupled with a sophisticated portfolio of investment and banking solutions, we strive to help clients minimize the complexity and uncertainty associated with retirement, allowing them to concentrate their efforts on what matters most."
"The recession has caused attitudes toward retirement to evolve at an unprecedented pace. For many, retirement is no longer a specific date at which an individual goes from working to not working to not working," said Andy Sleg, head of Bank of America's Retirement & Philanthropic Services. "Today, the transition into retirement is tending to be more gradual and fluid. An effective retirement strategy should go beyond an accumulation target and retirement income planning, and take into account what is truly important to an individual or couple, as well as the challenges they may face in the future.
Bank of America strives to be the customer's trusted destination for not only retirement planning but all their saving and investment needs, and continually wants to learn more about what is on customers minds.
"Understand our clients' retirement related realities and pursuits is a tremendous asset and helps us to guide them on their journey," said Claire Huang, head of Bank of America's marketing for Global Wealth Management, Global Banking and Global Markets. "Through continuously conducted surveys such as this, we have greater insight into their current priorities and concerns. These findings, along with our market research, help to position us for an evolving marketplace and able to offer appropriate solutions."
Advice from Retirees
Retirees were asked what advice they would give to those within 10-15 years of retirement and to those 15 plus years from retirement.
Within 10-15 years of retirement
- Build a plan around what is most important to you in retirement (51%)
- Have a plan to manage retirement income throughout retirement (47%)
- Pay down debt (40%)
- Account for unexpected costs and risks such as health care, cost of living and/or market fluctuations (38%)
- Pursue home ownership (24%)
- Be cautious of taking investment risks (21%)
More than 15 years to retirement
- Build a plan around what is most important to you in retirement (43%)
- Pay down debt (41%)
- Have a goal to manage retirement income throughout retirement (39%)
- Account for unexpected costs and risks such as health care, cost of living and/or market fluctuations (38%)
- Work with a financial advisor if you don't already (25%)
- Pursue home ownership (25%)
For answers to all your financial questions check us out. Subscribe to learn how prevent another economic crisis.
Friday, January 15, 2010
Financial Motivational Quote For January 15, 2010
"Money, which represents the prose of life, and which is hardly spoken of in parlors without an apology, is, in its effect and laws, as beautiful as roses." ` Ralph Waldo Emerson
For answers to all your financial questions check us out. Subscribe so you never miss the boat.
For answers to all your financial questions check us out. Subscribe so you never miss the boat.
Thursday, January 14, 2010
Should I Get a Loan Or Withdraw From My 401K if I Can't Afford My Mortgage Payment?
I took a 401K withdrawal out when I was getting divorced to pay of my car and get my ex-wife off the title, which she in turn refinanced the house we owned and paid me the equity that was owed to me. But the next year at tax time, guess what? Not only was I $60,000 in debt, but owed $7,500 to the IRS. I needed that like a hole in the head.
So what do I say about 401k withdrawals? Don't do it if at all possible. "Should I take a withdrawal or get a 401K loan?" is one the most asked questions we get. It's understandable you are desperate to hang on to your house and will do anything to avoid having a foreclosure, but I don't think you should do it. You will pay income tax on that money eventually and will probably be hit with a 10 percent penalty for taking the money out before you are 59 1/2. After the money runs out you will probably find yourself right back in the hole. You won't have any more money to take from your 401K and you will most likely fall behind on your mortgage again
A 401K loan can be risky. If you are get laid off you will typically have to repay the loan within a short period of time. With the current economic situation still going strong, there is a chance you may face a layoff. So if you take that loan out and then get laid off and after that you don't have the money to pay back, you will run into a tax problem. The loan will be treated as a withdrawal and you'll have to pay tax and probably a 10% early withdrawal penalty. A loan can also cost you more money because the markets may rally, which they have been doing lately, and if you have a loan out at that time, you will have missed an opportunity to recoup the money you have lost during the down market.
One important fact. The money you have in your 401K and IRA is protected if you ever have to file bankruptcy. You can keep that money no matter what.
If there is anything you can do to NOT take money from 401K please choose that option.
For answers to all your financial questions check us out. Subscribe so you never miss the boat.
So what do I say about 401k withdrawals? Don't do it if at all possible. "Should I take a withdrawal or get a 401K loan?" is one the most asked questions we get. It's understandable you are desperate to hang on to your house and will do anything to avoid having a foreclosure, but I don't think you should do it. You will pay income tax on that money eventually and will probably be hit with a 10 percent penalty for taking the money out before you are 59 1/2. After the money runs out you will probably find yourself right back in the hole. You won't have any more money to take from your 401K and you will most likely fall behind on your mortgage again
A 401K loan can be risky. If you are get laid off you will typically have to repay the loan within a short period of time. With the current economic situation still going strong, there is a chance you may face a layoff. So if you take that loan out and then get laid off and after that you don't have the money to pay back, you will run into a tax problem. The loan will be treated as a withdrawal and you'll have to pay tax and probably a 10% early withdrawal penalty. A loan can also cost you more money because the markets may rally, which they have been doing lately, and if you have a loan out at that time, you will have missed an opportunity to recoup the money you have lost during the down market.
One important fact. The money you have in your 401K and IRA is protected if you ever have to file bankruptcy. You can keep that money no matter what.
If there is anything you can do to NOT take money from 401K please choose that option.
For answers to all your financial questions check us out. Subscribe so you never miss the boat.
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