News Around the Web

The Pros and Cons of Hiring a Tax Pro

There are two sides on the question whether to hire a tax pro or not. There are a lot of free advice and discussion forums but let us check out what it cost some who did not contact and discuss their situation with a tax pro. S-corp rules could be confusing. Nowadays, without a payroll set up for 2011, one could be in for an audit. And if the payroll is set up now, there will be penalties and interest for late filing.

How about a home buyer tax credit? If you received this and decided to rent it out because you want to rent an apartment close to where you work, not talking to a tax pro in advance will cost you. The tax credit has to be repaid and the 2010 tax return amended and will cost more in penalties and interest on the credit repayment.

If you are curious as to whether to hire a tax pro or not, click the title “The Pros and Cons of Hiring a Tax Pro” above and you should be able to read it if the news provider has not taken it down yet.

Key Moves for Surviving Low Interest Rates

The interest rates on our cash accounts are so low we are losing the purchasing power of money. What is one to do?

On savings accounts and CDs, we could diversify with stocks that pay dividends, bonds that are either investment grade or linked to inflation.

There is some good news for credit card holders. The banks are now not allowed to raise the interest rates at will and they are to notify the credit card holders one a half months before the increase. Still, there is no telling how high the rates can go. And the credit history means more now that the gap between the rates for the good and bad credit has widened.

If you are thinking of buying a new car because of the low interest rates, bear in mind that the car dealer’s interest rate is much higher. Some sign up for the sake of convenience . But shop around for lower rates as they may be way better than the dealer’s offer.

As for mortgages, if you’re thinking of refinancing, experts say you should at least cut off two percent from the current rate to make it advisable. Then we have to factor in the cost of the mortgage insurance that has gone up. The best thing to do is to obtain a good faith estimate from the lender who is required to give it to you and the total monthly payment. Then find out how much you’re going to save each month.

If you are curious to know how to survive the low interest rates, click the title “Key Moves for Surviving Low Interest Rates” above and you should be able to read it if the news provider has not taken it down yet.

How to Crush Your Credit Card Debt Once And For All

Most of the $798 billion debts that the Federal Reserve said the Americans have are mostly on credit card. This can destroy the family’s finances because of the high interest involved and limiting the options when emergencies come around. Besides saving for a home, retirement or a child’s education is in jeopardy because funds are going to credit card payments. This is not to mention that your credit score will be affected.

The good news is you can get rid of the credit card debt by doing the following:

1. Stop using the credit cards.

2. Reduce the credit card interest rates by calling the credit company and asking for a lower rate. A study showed that more than 50% of those who called reduced their rate by about one-third.

3. Use the debt snowball when paying off debt. You can find the steps for this at Debt Reduction Plans_1

4. Get extra cash by finding hidden savings. The are links on how to find hidden savings in the bottom of this page.

5. Avoid these mistakes: Stay on track and don’t be unrealistic on your approach. Borrowing from the 401K should be a last resort. Why? If you leave your job, you will have to pay the loan or IRS will charge you a 10% penalty if you are below retirement age. Besides, it will affect your retirement . Another mistake is not saving the maximum for 401K when the employer matches your contribution. The last mistake you could make is to give up.

If you are curious to know how to do this click the title “How to Crush Your Credit Card Debt Once And For All” above and you should be able to read it if the news provider has not taken it down yet.

Is the New Restaurant Tipping Now 20%?

When you pay with credit card, some restaurants charge a default tip of 20% instead of the 15% we are used to pay. In this economy some people are inclined to resent it. Some restaurants believe that that setting the automatic prompt for the 20% tip in their handheld terminals is justified for the excellent service they provide. Not! (at least to some).

I think that’s being presumptuous, don’t you think? There will be negative feedbacks, I am sure. Worst for the restaurant if we change our habit of eating out every day. That said, most restaurants leave it to the diners to tip less or high depending if the service warrants it.

If you are curious and want to know which restaurants were mentioned just click the title “Is the New Restaurant Tipping Now 20%?” above and you should be able to read it if the news provider has not taken it down yet.

The First Day of Class: What to Expect  

Going to college without going broke is something people desire so it is important to know what to expect on this first day. Knowing what to do may set the stage for making sure everything is fine and you can set the stage to do something about your life and make the necessary steps to circumvent any negative factor that may appear.

The first day is the same whether you go to college the first time or you’re in grad school. It really is just an introduction to the course and what it is all about. The introduction comes in different ways. Some professors will take time to get to know each other by having each one introduce himself, the name the year you’re in, your major and why you’re here.

Other professors will just go about the business and start with the very first lecture. The syllabus will be introduced, either with the professor reading it, drawing attention to salient points. Others may invite discussion while others may just distribute the syllabus and dismiss the class early. However it is done, you should read it carefully so that after digesting it, you can then relax and turn your attention to how to save money while you’re in college.

You can get the full report if you click the above title especially if you want to find out the details on what to do in college. You should be able to read the full report if the news provider has not taken it down yet.

10 Reasons Stocks May Rise in 2012

We hear a lot of stories as to the things that are wrong with the stock market. But here are some reasons why the stock market may go up in the US.

1. Stocks are cheap and are selling below their value. Consumers are buying goods despite the bad economy, the US manufacturing has expanded and the emerging markets are strengthening.

2- The crisis in Europe does not have to lead to a global financial crisis.

3. The US is not a bad place for investors to park their money in. It is the best among the bad.

4. The election year favours gains. From the statistics that have been compiled since 1900, the fourth year of the presidential cycle is second best for stocks and with the administration hell bent on stimulating the economy, the stock market is scheduled to follow suit.

5. Corporate earnings report are strong and so is the outlook for profitability.

6. The trend can’t last ad infinitum. Worries and fears will pass and investors get back to pick stocks.

7. China will still be strong and will not be affected that much by what is happening in Europe.

8. Historically, stocks are poised to go up.

9. The auto and housing markets are recovering.

10. The volatility was caused by unusual factors like the debt crisis, the political problem in the US, the earthquake and tsunami in Japan and soon the uncertainties will fade away.

You can get the full report if you click the above title especially if you want to find out the details on why the stocks may rise in 2012. You should be able to read the full report if the news provider has not taken it down yet.

5 Ways to Make More Money Blogging in 2012

1. The first thing to do to make sure you earn money from your blog is to find out if there is a market for the blog topic. Then ask yourself what kind of commitment you have for this blog.

2. There are a lot of tools at your finger tips online but use the right tools. To help you make money, use these tools: Facebook, Twitter, You Tube, Google Reader, Google Analytics, Google Webmaster, Google’s Page Speed and so on. If your blog is just for fun, you can use free blogger and word press or just use Facebook but to make more money with it, you have to have your own domain. If you want to make money online as an affiliate, you have your own domain and proper hosting with a company that is reputable like Site Build It which includes domain registration and now has buy one get one free or at Bluehost where you can get a free domain registration. An autoresponder service is essential, too and there is none better than http://www.aweber.com

3. The third thing one needs to do is to be social, get connected with people. Respond to comments on your blog. Get connected to others through Facebook, Twitter and other social network. Leave comments on the other blogs related to yours. This is the way you build your credibility and your business.

4. You can‘t just blog once and leave it. No, you have to blog often. You may not have the time but you can easily outsource this by hiring freelancers or using the PLR that you are accumulating in your hard drive. Check for broken links for they will turn the search engine and the readers off with this broken link checker.

5. Plan what you have to do to make your blog a success and work your plan. Create a schedule of the work you have to do and stay on track..

You can get the full report if you click the above title especially if you want to find out the details on how to earn money from blogging. You should be able to read the full report if the news provider has not taken it down yet.

Age-Old Financial Advice: Things You Should Not Do With Your Money

There are things you should not do with your money at every age level. I know there are reports out there on what to do with your money but we will do it differently and instead focus on what not to do. After all we learned a few things from the financial fiasco we faced.

In your 20s, you should not buy a car. You’re either still at school or starting at a new job. If you buy a new car you’ll find yourself surrounded by bills for car payments, maintenance and gasoline. Instead, use the public transportation or buddy up with friends to carpool. Or move closer to the job so you can walk or bike to work.

In your 30s, don’t spend lots of money for your wedding. The bills will haunt you later when you don’t have a down payment for a home. Elope or just have a simple wedding. In your 40s, don’t withdraw from your 401K for any reason. You should not borrow from it either to pay for a new kitchen; trust me it will take years off your savings.

In your 50s, don’t use your retirement fund to send your kids to college. It makes better sense for them to borrow the money themselves that do not have to be paid until they graduate. At that time, when you find yourself with extra cash, you can help them pay their college bills.

You can get the full report if you click the above title especially if you want to find out the details on what not to do with your money. You should be able to read the full report if the news provider has not taken it down yet.

5 Ways to Get Through College Without Debt (and a Scholarship Offer)

Here is a man who went to college and he graduated with minimal debt. One of his life goals was to help his kids finish college debt free. He knew he had to plan early to save and so opened 529 plans to put away money there for their college education.

Meantime he wants others to know the five ways to minimize debts while in school. One is to choose school wisely and to try a two-year degree first at a local college. Working while in school is also a good idea and to graduate early, take courses during the summer. Another way is to take a year off after high school to gain maturity and at the same time work to save for college.

You can get the full report if you click the above title especially if you want to find out his scholarship offer. You should be able to read the full report if the news provider has not taken it down yet.

Debt Diva: One Blogger’s True Story of Facing Reality and Paying Down Debt Here’s a lady who finally took the debt matters in her own hands after hitting an emergency situation. After her father died leaving gambling debts and the care of her sick mother, she realized she had to pull up her socks and pay down her debts of over $60,000, $12,000 of which was from her credit card debt.

She tried paying off her debt before but she would find something nice she wanted to buy and then her effort went for naught. It was a cycle she could not shake off so she started reading the financial blogs and was lucky to have found a personal finance coach for a few months and now she is on track.

The full report is here if you want to read it. Just click the title above on "Debt Diva: One Blogger’s True Story" and you should be able to read the full report if the service provider has not taken it down yet.

If you are in the same boat as this debt diva, perhaps you need some financial coaching. Currently I’m booked with clients through the end of the year and January, but when spots open up I will let you know about it.  You see this is only available to 10 clients at a time. Just leave your name and number at the contact form here; Just go to the contact form and write there that you are interested financial coaching.

Tips for Increasing Savings

Not everyone has the same way of saving money. Setting an amount to save will not work for all. The way people think about saving affects how successful they are in reaching their goal. Some are abstract thinkers and focus on why they have to save while others are concrete thinkers and focus on the how to save.

What researchers say is that those who focus on the why, save more when they set a specific amount to save while the opposite is true with the concrete thinkers. Researchers found that those who focus on both the amount to save and the how become so overwhelmed that they quit saving. If you want to read the full coverage, click that title and you should be able to read the full report if the news provider kept it on.

The solution? Those who focus on how should not set a specific amount to save and just go ahead to save as much as he can. This is a new way to go because previously the findings from the older studies is that it is better to set a specific amount to save. It is true what someone said that it matters not how much money you earn; what is more important is how much you save.

All in all those who saved more are the ones who set a specific amount to save and thought of why they were saving are the most successful savers. So once you know what kind of thinker you are regarding saving, take a look at your expenses, scrutinize them and see where you can make some adjustment. Some can save a lot of money by changing some habits like eating out less and lowering the latte consumption and finding better deals with cable company and other stuff.

WAJ Story on Debt Collection: “Condolences on the Loss of Spouse But He Owed Us Money So Pay Up"

How low can one get? Some debt collectors who work on behalf of major banks are now trying to collect the debts of the deceased from the spouse and kids. Some even send condolence cards which really are collection letters. What all must remember is that spouses who did not co-sign the loan and the kids are not responsible for the debts of their dearly departed beloved.

Here’s a guide that among others things will show you how to reply to debt collectors and collection attorneys in writing to avoid a court case, understand the different sources of debt collection so you can deal with them accordingly, be ready for the lies and deception the debt collectors may use against you and the best practices in dealing with debt collectors and collection attorneys.

The debt collectors even argue with those left behind that it is their moral obligation to pay up the debt. If you want to read the full coverage, click that title and you should be able to read the full report if the news provider kept it on.

Break the Mortgage Before It Breaks You

It will take discipline but if you will commit to this you will get out of the debt cycle sooner than you expect.. There will some sacrifice as you will not be able to buy new things on credit. In order to make the refinancing worthwhile you must have a fixed mortgage at 4 to 4.5% interest rate and that you want to roll the debts into the new mortgage.

This is a matter of importance because the penalty for breaking a mortgage contract is either three months interest or the difference between the current mortgage rates and the existing rate. So at the current low mortgage rates, the difference in the interest rates could be steep. That is why some brokers think the value of breaking a mortgage is not worth it unless it is part of a larger consolidation of debt.

What could be done was to put together all the monthly payments one is now making and put that together as the monthly payment for the new mortgage. The new mortgage amount would be higher because you added all your credit line and credit card debts to the new amount. There will be interest savings for two years of about $14,300 in a real-life example with a shorter amortization period of 13 years instead of the former 22.years but you will have to make a commitment.

My problem with is is how about if the next interest rate in the next mortgage renewal shoots up? If I had my way, I would only refinance with a lower fixed mortgage rate for the full 13 years. What makes it exciting though is the thought you will own your home free and clear in 13 years instead of the 22 except you cannot buy anymore new stuff on credit. Here’s a Pay Off Mortgage Calculator - Engineered For A Debt Free Lifestyle.

Law Slashes Benefits for Military Widows This is such a sad story for after serving the country to keep it safe from harm and after paying the premiums month after month so the family left behind will be taken cared of only to find that the rules of the game have changed. The widow will have to be forced to marry after the age of 56 before she can be eligible for the Survivor Benefits Plan. Click the title for a full report. The thing is You Could Be Entitled To Thousands Of Dollars Worth Of Military Benefits That Are Available To You NOW!

The Stupid Things You Do When Shopping (and How to Fix Them) I have to admit it that I am guilty of being stupid while shopping. The only reason I am putting this in the alert is so we will be more careful. One stupid thing is our love for free stuff; never mind if it is bad for us. Besides, free does not necessarily mean free. It can be for the exchange of your address that could be sold and pretty soon you will get get a lot of junk mail.

Then there’s our desire for greater social status affecting our choices. Just because a friend has a special kind of iPhone may want us to buy the better kind of product. In reality, we are really just competing for social status. Click the title for a full report.