Investment Professional Selection Tips
| Discuss (0) | Link | digg this | save to del.icio.us
Archived Under: Financial Planning , Investing , The Moneysherpa Pages
Tags: CFP, Financial Planning, FINRA, Investing, SEC, The Moneysherpa Pages
Do-it-yourself or get help? This question, a dilemma for many, will occur early and often during the course of your financial life. As your personal finances become more complex, you will inevitably need help from an investment professional. The following tips will help you make an informed selection:- Determine your personal finance objectives and think about the services that will meet these objectives. For example, are you saving for retirement, protecting against risk, preparing your estate, or putting money aside for the education of your children? These are just a few of the potential questions that will help determine the financial services you are seeking. Financial services fit into an array of disciplines, including financial planning, estate planning, retirement planning and preparation, tax planning, investment management, college financing and planning, and insurance. Investment professionals may specialize in one discipline or offer services in several areas. Don't worry if you can't think of a complete list of financial services to meet your needs, because, after all, this one important reason for getting help.
- Ask trusted sources like friends and relatives for the names of investment professionals. Keep in mind that everyone's financial situation is unique, so what is good for your neighbor, may not be good for you.
- Don't use titles or generic terms to make your selection. According to the Financial Industry Regulatory Authority ("FINRA"), the largest non-governmental regulator for all securities firms doing business in the United States, titles like Financial Adviser or Financial Planner can be used by investment professionals that may not "hold any specific designation."
- Understand professional designations. The list of designations continues to grow, with each one representing something different. FINRA lists almost 100 designations. There are requirements for each designation, so when an adviser lists a credential, ask questions about the meaning of the designation and where to go to verify the designation. For example, to verify the credentials of a purported Certified Financial Planner, visit the Certified Financial Planner Board of Standard's search page and enter the name of the professional. To understand the meaning of a designation, do a Google keyword web search using the designation title. For example, Google keyword search "CFA" links to the CFA Institute, the organization offering the Chartered Financial Analyst designation.
- Conduct face-to-face interviews with prospective investment professionals. FINRA suggests the following questions: "areas of specialization, professional designations, registrations or licenses, education, work history, investment experience, products and services, and disciplinary history." Be sure to ask about compensation, which may be hourly, a flat annual fee, commission based, percentage of assets managed, or a combination of commissions and fees. Ask if the professional or their firm receives additional compensation for selling particular investment products. Finally, in the case of a professional offering investment products, ask if their firm is a member of the Securities Investor Protection Corporation ("SIPC"). According to FINRA, "the SIPC provides limited customer protection if a firm becomes insolvent."
- Verify state and federal regulatory registrations of the investment professional and their firm. Ask the prospective professional if they and their firm are registered at the state, federal, or at both the state and federal level and the actual name of these regulatory authorities. Once you have the name of the regulatory authorities, visit them online or call to verify registration. Many investment professionals and their firms are registered by FINRA, so a great place to start is FINRA's BrokerCheck, "a free online tool to help investors check the professional background of current and former FINRA-registered securities firms and brokers." In addition, FINRA provides links to state regulatory authorities.
- Ask for references. Going the extra mile and checking references is worth the effort when considering that you may be entering into a lifelong relationship with the selected investment professional.
- Make sure the services being offered fit your unique needs and situation. Every investment professional should tailor a solution unique to you and your situation. Beware of professionals offering "one-size-fits-all" services.
Suggested Sites: FINRA, Securities and Exchange Commission, CFP.net, Financial Planning Association
Guide Categories: Financial Planning, Insurance, Investing, Estate Planning, Retirement Planning, Tax Preparation and Planning, College Financing and Planning
Surviving and Thriving in 2008
| Discuss (0) | Link | digg this | save to del.icio.us
Archived Under: Financial Planning , The Moneysherpa Pages
Tags: Financial Planning, The Moneysherpa Pages
2008 started with such promise. Sure, the danger signs were everywhere, but like every New Year, optimism prevailed. Well into 2008, many wish for another new year and an end to the stream of economic woe and confusion. Before throwing in the towel, Moneysmartz offers the following ideas to survive and thrive:- Take stock of your current financial situation. Begin by calculating your net worth and determining if you have enough saved in an emergency fund. You might find that you are in better shape than you thought or that you need to act right away to shore up your financial situation.
- Prepare a budget. Sites like Mint.com make it easy and it won't take as much time as you think.
- Assess your protection against risk by inventorying your insurance coverage. In the event of a worst-case, you'll be happy you took the time.
- Avoid making investment decisions based on emotion. Understand your risk tolerance and investment time horizon to avoid selling low and buying high.
- Learn more about the big economic issues of the day so you can make smarter and more informed decisions.
- Try not to lose sleep over a loss in your home value if you don't intend to sell, refinance, or get a home equity loan. The market will eventually recover. This provides small comfort to those facing a reset on their mortgage interest rate or foreclosure, but for the majority of homeowners, a reset or foreclosure is not a concern.
- Reduce your daily spending through frugality. Go to sites like Valpak.com for money saving coupons.
- Focus on the areas where you have more control, including your job, your education, your health, and your family. If you are worried about losing your job, then prepare your resume, start calling your friends, and prepare for a change.
Suggested Sites: NetWorthIQ, Mint.com, A.M. Best, Insurance.com, CCH Financial Planning Toolkit, About.com Economics, FrontDoor, Federal Reserve Education: Foreclosures, About.com Frugal Living, Cool Savings, Vault.
Guide Categories: Assessing Your Financial Situation, Financial Calculators, Financial Goal Setting, Financial Planning, Insurance, Investing, Investment Time Horizon, Economics, The Federal Reserve Bank, Stagflation, Mortgages, Real Estate, Foreclosures, Frugality, Coupons, Compensation and Benefits.
Worst Case Insurance Planning
| Discuss (0) | Link | digg this | save to del.icio.us
Archived Under: Financial Planning , Insurance , The Moneysherpa Pages
Tags: Financial Planning, Insurance, The Moneysherpa Pages
Chances are you don't have enough insurance coverage. In fact, according to the Insurance Information Institute, nearly 60% of American homes are inadequately covered. So if you think you fall into this group, here's a way to get motivated to get the insurance you really need. Visualize your worst-case scenarios. It's a difficult way to plan, but if a worst-case occurs, you will be thankful you took the time to think ahead. To learn the basics of insurance planning and start filling gaps, visit the MSN Money and Marketwatch guide "Making sure your insurance fits." The Moneysmartz Insurance Guide offers even more links to relevant and reliable sources of Insurance information and advice.
Garage Sale Tips
| Discuss (0) | Link | digg this | save to del.icio.us
Archived Under: Money Management , The Moneysherpa Pages
Tags: Garage Sales, Money Management, The Moneysherpa Pages
Spring is finally here, your house is full of clutter, and you are looking for a few extra dollars to pay for the rising cost of gas. If you are willing to invest some sweat equity, then a garage sale is a great way to clean and get some green. Before getting started with your garage sale, visit the Yardsalequeen.com for common sense tips and more links. Wondering how to price your items? Visit Your Garage Sale Source for pricing ideas. Try Craigslist to find and advertise your garage sale. For example, if you live in Denver, visit Google, type keywords "craigslist Denver garage sale," and click "I'm feeling lucky" to view the Craigslist Denver garage sale classifieds page. In addition, many local newspapers host garage sale pages with maps and information, so try Google keyword search "your city garage sales." Finally, if you are pressed for time or feeling charitable, find a local Goodwill to donate your stuff.
Money Real Estate Survival Guide 08
| Discuss (0) | Link | digg this | save to del.icio.us
Archived Under: Real Estate , The Moneysherpa Pages
Tags: Money Magazine, Real Estate, The Moneysherpa Pages
Money Magazine's 2008 Real Estate Survival Guide offers a tale of a world turned upside down with growth predicted for Syracuse, Buffalo, and Scranton, and dire times for the darlings of real estate, including Los Angeles, Miami, Phoenix, and Las Vegas. With projected eye-popping real estate price declines, what can we do to survive and for the select few, even prosper?The Money Magazine Real Estate Survival Guide offers facts, tips, and insight. Here's how to make the most of the guide:
- Get the facts about your market including home price data for 381 markets.
- Learn the new rules of real estate including how homes will be financed in the future, what to ask your next mortgage broker, and a video on real estate trends.
- Try to stay positive, but if you must wallow in a little misery, take consolation in tales from the California bust.
Squidoo Personal Finance
| Discuss (0) | Link | digg this | save to del.icio.us
Archived Under: The Moneysherpa Pages
Tags: Squidoo, The Moneysherpa Pages
Wikipedia, an online encyclopedia open to editing by anyone, was the first of many collaborative web-based resources. Squidoo, a relatively new entrant into the space, with an emphasis on openness, declares, "Everyone's an expert on something!" This is bad news if you are looking to use Squidoo for definitive financial advice, but good news if you are looking for fresh perspectives on your personal finances.To get the most from your visit to Squidoo, the following tips will help guide your way:
- Use the search bar at the top of the Squidoo home page and enter a financial keyword. Let's try personal finance.
- Note the terminology on the search results page. A Lens is a page created by someone. A LensRank™ "is the secret Squidoo algorithm for ranking lenses. A LensRank of #1 is best! (Ex: LensRank #14 beats out LensRank #39,999)."
- Sort search results by LensRank or Recently Updated.
- Buyer beware. Lenses come in a variety of shapes and sizes, including thinly veiled advertisements with links to more obvious advertisements. Like so many web 2.0 websites, the ranking system is not foolproof.
- Patience is a virtue. You'll have to do some digging to find gems. Here are two (we had to do a lot of searching to find these examples): The Best Personal Finance Websites and CFP.
Moneysmarts Jargonator
| | Link | digg this | save to del.icio.us
Archived Under: Financial Services , The Moneysherpa Pages
Tags: Financial Services, The Moneysherpa Pages
A recent survey by AARP Financial MoneySmarts found that Americans confusion about financial jargon leads to mistakes and lost opportunities. If you have slogged or searched your way through the mass of financial services information on the Web, or even talked with a financial adviser steeped in technical terminology, then the study results are not a surprise and are not necessarily that helpful. However, the AARP Financial microsite offers a solution, an easy-to-use tool to convert financial jargon into plain language. In case you were wondering, MoneySmarts is not related to or affiliated with Moneysmartz.
Eight Millionaire
| | Link | digg this | save to del.icio.us
Archived Under: Retirement Planning , The Moneysherpa Pages
Tags: Net Worth, Retirement Planning, The Moneysherpa Pages
As the experts bemoan the low personal savings rate in the United States, hovering around zero percent, it's interesting and perhaps instructional to compute the modern day equivalent of a "millionaire."Before determining the magic number, a base year and inflation index are needed. First, and somewhat arbitrarily, 1955 will be the base year, a time of growth and tranquility, with "millionaire" entering popular culture and representing affluence and the "good life." Next, the Consumer Price Index (CPI), a measure of the average change in prices over time in a market basket of goods and services, will be used as an index to convert 1955 dollars to 2008 dollars.
Using a CPI inflation calculator with 1955 as the base year and the CPI as the inflation index, the magic number is a little over $8 million.
Your reaction to this number may be a shrug of the shoulders, but if you are in 20's, 30's and even 40's, with diminished prospects for receiving Social Security, being a "millionaire" may not be enough to sustain you during your golden years.
The good news is that even if you don't reach $8 million, you have plenty of time to save.
Tips From The Woodstock of Capitalism 08
| | Link | digg this | save to del.icio.us
Archived Under: Investing , The Moneysherpa Pages
Tags: Investing, The Moneysherpa Pages, Warren Buffett
"The most important investment you can make is in yourself." Like much of the Q&A during yesterday's Berkshire Hathaway annual meeting of shareholders at Omaha's Qwest Center, Warren Buffett and Charlie Munger offered plenty of common sense wisdom and investing advice, including tips on a variety of topics:
- Self-Improvement: Invest in your mind and body. Your best asset is yourself.
- Investing: For smaller portfolios, invest in a low cost index fund like Vanguard.
- Business Ownership: If you have a great business, then don't sell. Your business is worth more every year. If you are looking to monetize your investment, sell to someone who will be a good steward of what you have created.
- Reading Suggestions for Kids: Start with your local newspaper. The more you learn, the more you will want to learn.
- Recommended Book About Investing: The Intelligent Investor, by Benjamin Graham, especially chapters 8 and 20.
- Fish of the Day Investment Ideas: Avoid them, as most are a way to sell more. For example, the 130/30 Long-Short Equity Fund.
- Business School: Most important concepts that should be learned are "how to value a business" and "how to assess market fluctuations."
The Forever Stamp
| | Link | digg this | save to del.icio.us
Archived Under: Money Management , The Moneysherpa Pages
Tags: Money Management, The Forever Stamp, The Moneysherpa Pages
Until the introduction of the Forever stamp last year, the frequent rise in the price of United States Postal Service (USPS) first-class postage presented an annoying dilemma for those left with unused and under priced stamps, waste money by combining two one-ounce first-class stamps or buy smaller denomination stamps to use with the now under priced first-class stamps.Thanks to a little USPS creativity, the dilemma can be avoided through a Forever stamp, postage purchased today that is good for mailing "one-ounce first-class letters anytime in the future -- regardless of price changes."
With another penny price hike set for May 12, raising the price of a first-class stamp to 42 cents, we are faced with another, more pleasant dilemma. Stock up on the 41-cent Forever stamp today, and save a penny, or wait and buy a 42-cent Forever stamp on or after May 12. Regardless of your decision, the Forever stamp will probably save you a few pennies and make your life a little easier. To purchase stamps online, visit The Postal Store.
Epinions and Better Financial Services
| | Link | digg this | save to del.icio.us
Archived Under: Financial Services , The Moneysherpa Pages
Tags: Epinions, Financial Services, The Moneysherpa Pages
The worst time to realize a provider of financial services does not care is when you need their help the most. If you have ever been treated like a number by a testy customer service agent or been caught in the endless loop of a convoluted interactive voice response system, then you know how important it is to choose wisely when looking for financial services like credit cards, banks, and brokers.Epinions, started in 1999 and now owned by eBay, offers user generated reviews about a wide range of products and services to help you avoid poor customer service and get the facts before, not after, you buy.
The following tips should help you get the insight you need from Epinions:
- Visit the Personal Finance find and compare home page.
- Choose the category the fits your need, for example, banks.
- Enter the name of your prospective bank in the search box at the top of the page, for example, Wells Fargo.
- Sort by date to read the most recent reviews first.
- Be wary of firms with a few reviews as the sample may be too small to provide reliable guidance.
- If you find bad reviews, then be sure to balance them with the positive attributes of the reviewed company that are most important to you. However, remember that this is the best time to find another provider of services, before you make a long term commitment
Your Number
| | Link | digg this | save to del.icio.us
Archived Under: Retirement Planning , The Moneysherpa Pages
Tags: ING, Retirement Planning, Retirement Savings, The Moneysherpa Pages
How much will you need to retire comfortably? It's a question being asked a lot these days by providers of retirement planning services. ING joins the fray with a tool consisting of six questions to calculate your "Your Number." Don't be surprised if your number is shockingly high, particularly if you are nearing retirement and don't have a start on your nest egg. Rest easy, the ING microsite offers links to professional advice. The power of the "Your Number" campaign is that after taking the quiz, it's hard to forget your number, and even more difficult to remain passive about saving for retirement.
Travel Insurance
| | Link | digg this | save to del.icio.us
Archived Under: Insurance , The Moneysherpa Pages
Tags: Insurance, The Moneysherpa Pages, Travel Insurance
On the family cruise of a lifetime, you slip, fall, and break your arm. You require emergency medical attention. Do you have insurance?As spring break travel peaks and preparation for summer travel begins, a review of travel insurance may help avoid catastrophe if the unthinkable happens on your next trip.
According to the Insurance Information Institute, there are four major types of trip insurance, including trip cancellation insurance, baggage insurance or personal effects coverage, emergency medical assistance, and accidental death.
There are a number of travel insurance providers and comparison sites including InsureMyTrip.com, AIG Travel Guard, CSA Travel Protection, Travel Insurance Services, and many others.
For more travel insurance information and links, visit About.com Personal Insurance. If you work with or know a travel agent, then be sure to talk with them for additional information.
Being prepared before vacation, including purchasing adequate travel insurance, will help give you the peace of mind to enjoy vacation.
The Best Mutual Funds
| | Link | digg this | save to del.icio.us
Archived Under: Investing , The Moneysherpa Pages
Tags: Investing, Money Magazine, Mutual Funds, The Moneysherpa Pages
During market tumult, investors seek investments that help them look toward the future with confidence. The recent Money Magazine 70 recommends mutual funds that should be of comfort during good and bad times. The Money Magazine selection criteria includes mutual funds with "low expenses, a strong record for putting share-holder interests first, a consistent investment strategy and experienced managers." The result is above average performance, with over 70% of the selected mutual funds outperforming their category average. Leading fund families Vanguard, T. Rowe Price, and Fidelity are well represented with 23, 8, and 4 funds on the list respectively.
Coupons and Online Deals
| | Link | digg this | save to del.icio.us
Archived Under: Money Management , The Moneysherpa Pages
Tags: Coupons, Money Management, The Moneysherpa Pages
With higher gas prices, lower home values, and a weak stock market, now is a good time to find ways to cut costs. Coupons offer a quick and easy way to begin saving money today. For grocery coupons and online deals, visit CoolSavings, SmartSource, and Valpak. For a complete list, visit the Moneysmartz Coupons page.
Best of Class Financial Services Customer Service
| | Link | digg this | save to del.icio.us
Archived Under: Banking Services , Financial Services , Insurance , Investing , The Moneysherpa Pages
Tags: Banking Services, BusinessWeek, Financial Services, Insurance, Investing, The Moneysherpa Pages
If you have ever been at the receiving end of a surly customer service agent, then you know the value of great customer service. The following insurance, banking, and brokerage firms are included in the top 50 of The BusinessWeek 2008 Customer Service Elite:
1. USAA (Insurance)
8. Edward Jones (Brokerage)
13. Amica (Insurance)
18. Wachovia (Banking)
19. Smith Barney (Brokerage)
28. Vanguard (Brokerage)
29. Erie Insurance (Insurance)
30. National City (Banking)
Saving Your Tax Rebate
| | Link | digg this | save to del.icio.us
Archived Under: Investing , Net Worth , The Moneysherpa Pages
Tags: Investing, Net Worth, Tax Rebate, The Moneysherpa Pages
A recent CNN/Opinion Research poll of American taxpayers found that 32% of respondents will save their tax rebate, 41% will use the windfall to pay bills, 3% will contribute the money to charity, and only 21% of those polled plan to spend the money.Checks should range from $300 to $1,200 and even more if you have kids under age 17. For the full details of the tax rebate, visit the Kiplinger Tax Rebate page.
Whether you plan to spend or save, consider the value of a $1,000 investment today, earning 8% annually over 10, 20, 30, 40, and 50 years. Your $1,000 investment would be worth $2,200, $4,927, $10,936, $24,273, and $53,878 respectively.
Looking at how the numbers grow, it is easy to understand how saving early and often makes sense and is perhaps the only sure route to building a sufficient nest egg for your golden years.
John Mauldin's Investment Newsletters
| | Link | digg this | save to del.icio.us
Archived Under: Investing , The Moneysherpa Pages
Tags: Investing, John Maudlin, Newsletters, The Moneysherpa Pages
With an eye popping 1.5 million subscribers, John Mauldin provides investors an insightful view into the economy and Wall Street through his three newsletters:- Thoughts from the Frontline is a weekly economic and investment newsletter with over 1 million readers. Ahead of the pack in predicting the mortgage and credit crisis, this popular newsletter gave readers a unique glimpse into the future and an opportunity to take profits before the crisis became a bloodbath.
- Outside the Box, published weekly, highlights one essay from another analyst.
- The Accredited Investor, published quarterly, focuses on the world of hedge funds and private investors. This letter is for accredited investors who generally have a net worth of $1,000,000 or more, or made $200,000 or more per year in the immediate preceding two years.
IRS Free File
| | Link | digg this | save to del.icio.us
Archived Under: Taxes , The Moneysherpa Pages
Tags: IRS, Tax Preparation, Taxes, The Moneysherpa Pages
Let the misery begin, it's tax season.To ease the pain and expense of filing, the IRS offers Free File. According the the IRS: "if your adjusted gross income was $54,000 or less in 2007, you can use Free File to prepare and e-file your taxes online. If you normally do not file a tax return but need to file a tax year 2007 return solely to receive your economic stimulus payment, you may now select from the list of companies on the Free File - Economic Stimulus Payment page."
In addition to the IRS and Free File, the Moneysmartz Tax Preparation Guide and Directory offers tax preparation tips and information, including links to tax preparation software and tax forms.
All Eyes on the Federal Reserve Bank
| | Link | digg this | save to del.icio.us
Archived Under: Government Resources , Investing , The Moneysherpa Pages
Tags: Government Resources, Investing, The Federal Reserve Bank, The Moneysherpa Pages
Much maligned and frequently misunderstood, the U.S. Federal Reserve Bank is in the spotlight, with all eyes on Ben Bernanke's every move. Since the Fed is playing an increasingly important role in our financial lives, particularly as it struggles to conduct monetary policy in a way that contributes to the health of the economy, it is probably in your best interest to learn a little more about the U.S. Federal Reserve Bank. We will spare you the nitty gritty details, but instead offer a convenient bookmark to the Moneysmartz U.S. Federal Reserve page, with links to the Fed, its member banks, and more information on the inner workings of the Fed. After visiting this page, you will be better prepared to translate your Fed watching into smarter financial decisions.
The Sound of the Other Shoe
| | Link | digg this | save to del.icio.us
Archived Under: Investing , The Moneysherpa Pages
Tags: Investing, Investor Psychology, The Moneysherpa Pages
In case you were not listening, there was a very loud boom from Wall Street today as Bear Stearns reached out for help from The Federal Reserve and JPMorgan. We won't bore you with the details, but we will pose the question, "what do you do when the other shoe drops and panic begins to take over?" Run. Stay put. Pray? The short answer is to try to keep your cool. However, since we are already jittery from a very rocky 2008, keeping cool is much easier said than done.As you attempt to stay calm, some insight into investor psychology may help soothe your nerves and clear your mind. A recent MSN article by Richard Conniff about how fear can make you lose millions, speaks to how a little fear is healthy, but too much fear can be disastrous in the end. Another similar article from Investopedia on fear and greed offers cautionary advice based on previous bubbles and crashes.
After gaining a little perspective your feelings of fear may subside and be replaced with thoughts of the future and what you can do to prepare yourself, and your portfolio, for the long haul. This is possibly the best advice in both up and down markets.
Quick Tips to Lower ATM Fees
| | Link | digg this | save to del.icio.us
Archived Under: Banking Services , The Moneysherpa Pages
Tags: ATM Fees, Banking Services, The Moneysherpa Pages
Are you frustrated by ATM fees? The following easy to implement tips should help you lower your ATM fees right away:- Use a bank that has a lot of ATM branches near where you work and live. If you travel frequently, then find a bank that has a large national network.
- If you have to go out of your bank's network of ATM's, then make a larger withdrawal, instead of several smaller ones. You'll pay a lot less in fees.
- Get cash back when using your Visa or bank card at the store. This will avoid a trip to the ATM and possibly extra fees.
Rainy Day Savings
| | Link | digg this | save to del.icio.us
Archived Under: Money Management , Moneysmartz Editor , The Moneysherpa Pages
Tags: Emergency Fund, Money Management, Moneysmartz Editor, Personal Savings, The Moneysherpa Pages
A recent post in The Red Tape Chronicles highlighted the fact that many Americans do not have an emergency fund to cover about 3- to 6-months of living expenses.
So, if you don't have enough socked away in your rainy day fund, then what can you do?
First, don't panic, you can start saving today and in less than a year you'll be much better prepared.
Next, and this is hard to do, try to pay yourself first. Set aside a small amount every month before spending or investing. We are notoriously bad about taking action in this way, so continue reading.
Liz Pulliam Weston, an MSN personal finance columnist recommends getting a line of credit from your bank. If you do this, then be careful to avoid using the line to pay for non-emergency expenses. Otherwise, you'll only dig a deeper hole.
By taking a few simple steps, you'll be thankful when the rain starts to pour.
Estate Planning Mistakes
| | Link | digg this | save to del.icio.us
Archived Under: Estate Planning , Moneysmartz Editor , The Moneysherpa Pages
Tags: Estate Planning, Moneysmartz Editor, The Moneysherpa Pages
Providing for your family through estate planning can be very a complicated and confusing process, even for financial professionals. Michael T. Ohlman, columnist for the Bradenton Herald, compiled the following list of estate planning mistakes to watch out for:
Not funding your living trust.
Too much JTWROS property.
Leaving too many assets to a surviving spouse.
Not equalizing assets through gifts between spouses.
Not having a will.
Improper ownership of life insurance.
Being donor and custodian of a uniform-gift-to-minors-act/uniform-transfer-to-minors-act account.
Not knowing where all the "stuff" is.
Naming the wrong executor.
Not periodically updating an estate plan.
This list should be a helpful reference as you fine-tune your estate plan or work with estate planning experts to create your estate plan for the first time.
Rating College 529 Savings Plans
| | Link | digg this | save to del.icio.us
Archived Under: College Financing , Moneysmartz Editor , The Moneysherpa Pages
Tags: 529 Education Savings Plans, College Financing, Moneysmartz Editor, The Moneysherpa Pages
The best way to combat the rising cost of college for your children is to begin saving as early as possible. A great way to jumpstart your savings and enjoy some valuable tax advantages is to enroll in an education 529 savings plan. With every state offering at least one 529 plan, it's important to understand plan differences and choose the one best suited to your situation. Savingforcollege.com will help you understand the nuances of 529 plans with their Five-Cap ratings on each state-sponsored plan. The rating system determines the usefulness of each plan based on more than investment attractiveness including plan flexibility and additional economic benefits. By combining the benefits of saving early and often and understanding which 529 plan is best for your situation, you'll have a fighting chance to help your children pay for college.
Fix Your Finances in a Month
| | Link | digg this | save to del.icio.us
Archived Under: Financial Planning , Moneysmartz Editor , The Moneysherpa Pages
Tags: Financial Planning, Moneysmartz Editor, The Moneysherpa Pages
The New Year is in full swing and many of us have already forgotten our resolutions. If personal finance is still on your list, then the Simple Dollar weblog has a series it posted in January called 31 days to fix your finances. The series breaks down the financial fixes into five stages, including figuring out your goals and values, evaluating your situation, building your own life budget, looking at your life, piece by piece, and setting the stage for lifelong success. It's February, so you'll need a little more than this month to fix your finances, but it will be worth the effort if you decide to get started.
Maximizing 401(k) Returns
| | Link | digg this | save to del.icio.us
Archived Under: Retirement Planning , The Moneysherpa Pages
Tags: 401k, Retirement Planning, The Moneysherpa Pages
Are you looking to maximize your 401(k) returns? A group from Wharton and Vanguard say a portfolio of balanced or lifecycle funds is the optimal "trading" strategy earning the highest risk-adjusted returns. According to the research, this relatively passive investment strategy is more favorable than costly high-turnover trading. Special thanks to the Workplace Prof Blog for the tip.
The Self Employment Tax
| | Link | digg this | save to del.icio.us
Archived Under: Business Ownership , Moneysmartz Editor , Taxes , The Moneysherpa Pages
Tags: Business Ownership, Moneysmartz Editor, Taxes, The Moneysherpa Pages
Starting a business is daunting. Adding to the stress is an array of administrative tasks, not the least of which is dealing with the IRS. If you are self-employed and wondering how to calculate and pay your taxes, there are many helpful online resources that should lower your blood pressure, get your taxes out of the way, and allow you to focus on important tasks, like making money.
For an easy to digest overview of self-employment taxes, visit Wachovia's Self-Employment Tax page with ways to report the self-employment tax to the IRS and available income tax deductions.
For forms and an in-depth review of the self-employment tax, visit the Internal Revenue Service.
To estimate your self-employment taxes, visit H&R Block's self-employment tax estimator. If you are paying self-employment taxes for the first time, then prepare for a shock. The good news is that a portion of your self-employment tax is an income tax deduction.
Finally, Moneysmartz offers a complete list of self-employment tax resources.
Tracking Your Financial Goals
| | Link | digg this | save to del.icio.us
Archived Under: Moneysmartz Editor , Net Worth , The Moneysherpa Pages
Tags: Moneysmartz Editor, Net Worth, The Moneysherpa Pages
During the holiday season, the gap between Christmas and the New Year is usually a good time for quiet reflection and planning, allowing us to step back from the hustle and bustle of our daily lives and take in the big picture.
If you are in the mood for a financial assessment, then the December issue of Money Magazine offers tools and advice for tracking your financial goals and comparing where you stand to your peers.
For extra motivation to get you started, see how your net worth stacks up with others. Results are by age and income, with the median net worth for youngsters around $400 and for seniors around $175,000.
Additional tools and advice include:
How to Afford an Expensive College for Your Children
How to Launch Your Own Business
If you don't start now, then it may be another year before you catch your breath and have a chance to plan again.
Best Brokerages for Stock Advice
| | Link | digg this | save to del.icio.us
Archived Under: Investing , Moneysmartz Editor , The Moneysherpa Pages
Tags: Investing, Moneysmartz Editor, The Moneysherpa Pages
Sometimes the best financial advice is to be still and listen to your own counsel. However, for even the most skilled and self-reliant stock-pickers, an occasional dose of outside perspective can be helpful.
If you are looking for a brokerage for advice, then StarMine's recent ranking of big brokerage performance is a good place to start.
Wachovia Securities is at the top of the list, in part because of a strong buy on Comcast, with a 46% gain over the rating period.
The remaining top ten includes Citigroup, Merrill Lynch, RBC Capital Markets, JPMorgan, Bear Stearns, Stifel Nicolaus, Deutsche Bank, UBS, and CIBC World Markets.
Planning for a Better 2007
| | Link | digg this | save to del.icio.us
Archived Under: Financial Planning , Moneysmartz Editor , The Moneysherpa Pages
Tags: Financial Planning, Moneysmartz Editor, The Moneysherpa Pages
For many of us, the holiday season is a time to get together with family and friends and take a brief time out from our hectic lives. For others, it's a time to plan and prepare for a successful new year. If you are in the latter group, then Money Magazine's Best ideas for 2007 will jumpstart your planning process with investment, home buying, home selling, retirement, and savings tips. My favorite is for homebuyers. Money recommends buying from a builder, since they can't afford to sit on the sidelines while the market recovers. You'll probably be able to negotiate a lower price with a lot more upgrades.
Securities Donation Calculator
| | Link | digg this | save to del.icio.us
Archived Under: Moneysmartz Editor , Philanthropy , Taxes , The Moneysherpa Pages
Tags: Moneysmartz Editor, Philanthropy, Taxes, The Moneysherpa Pages
According to Giving USA, Americans gave total contributions of $260.28 billion for 2005. Generous by most standards and partly fueled by tax savings.
If you are considering a year-end charitable gift, Fidelity Charitable Gift Fund's Securities Donation Calculator will help you measure the tax savings from selling the securities and contributing the proceeds to charity and paying any associated capital gains tax compared to giving the securities directly to charity and avoiding capital gains tax.
The tax savings from contributing directly can be significant, so if you are inclined to give securities this year, consider giving directly to cut your tax bill.
How Are You Doing Financially?
| Discuss (0) | Link | digg this | save to del.icio.us
Archived Under: Moneysmartz Editor , Net Worth , The Moneysherpa Pages
Tags: Moneysmartz Editor, Net Worth, The Moneysherpa Pages
With almost 9 million millionaire households in the United States and a steady stream of net worth lists including the Forbes 400 Richest Americans, we are constantly reminded where we stand in the financial pecking order.
If you are interested in seeing how your are doing, not only your net worth, but in all aspects of financial planning, like college savings, asset protection, retirement planning, and budgeting, then the December 2006 issue of Kiplinger's Personal Finance magazine offers a financial fitness test to compare where you are.
The test will show you where you stand compared to others taking the test including a small group of Kiplinger's readers. Tips for staying and getting ahead will help you improve your long-term financial health.
Not surprisingly, the test shows that the meaning of millionaire is changing, with the majority of respondents saying they need to be at least a millionaire to meet their long-term financial objectives.
Housing Values in 152 Markets
| | Link | digg this | save to del.icio.us
Archived Under: Moneysmartz Editor , Real Estate , The Moneysherpa Pages
Tags: Moneysmartz Editor, Real Estate, The Moneysherpa Pages
With so much of our net worth tied up in real estate, it's not surprising that we are obsessed with home prices. Is your home overvalued? Fairly valued? Undervalued?
To answer these questions and learn more about the state of the housing market, the December issue of SmartMoney includes a spreadsheet of housing values in 152 markets and a review of what's happening in real estate now that the bloom is off the housing boom.
Five Questions for a Better Retirement
| Discuss (0) | Link | digg this | save to del.icio.us
Archived Under: Financial Calculators , Financial Goal Setting , Moneysmartz Editor , Retirement Planning , The Moneysherpa Pages
Tags: Fidelity, Financial Calculators, Financial Goal Setting, Moneysmartz Editor, Retirement Planning, The Moneysherpa Pages
With the experts telling us how unprepared we are for retirement, it's no surprise that many of us put off retirement planning for as long as possible. If the experts are right, then most Americans will have a day of reckoning when confronting a retirement with inadequate savings.
If you are willing to feel some pain today with the hope of a brighter retirement, then Fidelity's My Plan, requiring answers to five simple questions, is a relatively painless way to determine how much you'll need when you retire and what you need to do to get there.
The My Plan tool is intuitive and pleasant; delivering good and bad news with a smile while providing concrete steps to change your investment habits and begin preparing for a better retirement.
Real Estate Rules for a Down Market
|