Financial Solution News

I find myself giving clients this piece of advice more than any other recommendation I make:

“Contribute, as much as you can afford, to your retirement plan”.

There is a caveat to that statement, however.  If your company offers a match, and you are going to be contributing the maximum amount allowed to your plan, don’t “max it out” until the end of the year.

I know what you might be thinking:  “WHAT????  WHY NOT????”

For 2009, the maximum amount that can be contributed to a 401(k) is $16,500 ($22,000 if you are 50 or older).  The maximum for a SIMPLE IRA is $11,500 ($14,000 if you are 50 or older).

Occasionally, we meet an enthusiastic retirement saver who relishes the fact that she contributes the maximum to her retirement account early in the year.  If her retirement plan offers a match, she could be leaving money on the table!!!

The matching formula for 401(k)’s and SIMPLE’s are based off the compensation you earned during the pay period.

An example:

• $5,000 in earnings this month
• Employee contributes 10%
• 3% employer match

RESULT: $500 from employee and $150 from the employer (3% of $5k)

 If you “max out” your contribution before the end of the year, all of the compensation that you earn after that point goes UNMATCHED.  It’s true!

 A different example:

• Susie is 40 and earns $120,000 per year ($10k per month).  Her employer offers a 5% match.  Susie contributes 20% to her plan.
• Each month, Susie is putting $2000 into her plan.  Her employer kicks in $500 (5% of $10k).  During the month of September, Susie will have made her last allowable contribution ($16,500 is the maximum she can contribute).
• For the months of October, November, and December she will not get a match on her compensation since she is not contributing.  You only get a match when you are contributing!

She leaves roughly $1500 on the table ($500 per month for those last three months)

Susie’s intentions were good:  Contribute as much she is allowed as quickly as she can do it.  Put the money to work as fast as possible.  Usually, that is the correct strategy.  But, this situation is unique.  To maximize her contribution AND maximize the employer match, Susie should contribute 13.75% of her salary……NOT 20%

To calculate the OPTIMAL CONTRIBUTION, divide the maximum contribution amount ($16,500) by your annual salary.  The resulting percentage will allow you to contribute the maximum while receiving the FULL match.

In Susie’s case:

•  13.75% of her salary is $16,500, so she will “max out” her contribution at the end of the year
• Since she is contributing each month, she will get the full match ($500 per month for ALL TWELVE months)

As co-founder of Chappell, Mayfield & Associates, Cass offers expertise in financial planning, wealth accumulation, retirement planning, insurance planning, business continuation planning, and employee benefits.

Cass launched his financial planning career as an agent for Prudential Financial in 1996, and later, a manager in the company’s financial services division. Since then, Cass has earned the CFP®, CLU, and ChFC designations, reflecting his commitment to excellence in investment decision-making and financial planning. He also holds a B.S. in Management from Georgia Tech.

Cass has lived in Atlanta since 1992 and is married to Alison.

Article Source:http://www.articlesbase.com/personal-finance-articles/max-out-your-401kjust-dont-do-it-too-quickly-1304681.html

Alternative student loans bad credit are still available. In some countries, especially in the UK student are almost expected to run up big debts whilst completing their degree courses. Many students leave university at the start of their working life loaded with debt.

Much of the world is going through a financial crisis. Banks, for perhaps the first time ever, are refusing applications for credit from those who do not have perfect credit histories.  It has never been harder to secure credit from the banks and that is a fact.

So what chance has a cash strapped student loaded with debt got of being approved for credit? Well in some cases students are treated as special cases. Some lenders realise that students have had to run up debts simply to complete their courses. In the UK government students loans are only repayable if the student has a job at a predetermined salary level. It is a fact that many students will never repay any of the government student loan. Lenders realise this and although the student may owe thousands from a government loan, many lenders will be happy to approve a credit application when the student starts his working life.

For students with more sever debt most of the banks will not offer credit. There is though almost a new industry of new lenders who will offer credit to those with a poor credit score. You will pay more in interest from these lenders so it is best to shop around.

Ensure though that you can afford to make regular repayments because if you default on a credit card from a  “bad credit” lender you could damage your chances of securing future credit long term.

Get your FREE ONLINE CREDIT REPORT NOW

Get Your Easy To Get Credit Card Cash TODAY.

Article Source:http://www.articlesbase.com/personal-finance-articles/alternative-student-loans-bad-credit-1305055.html

Does debt settlement affect your credit score is a question being asked by many as we continue to struggle through the financial crisis? Many debt settlement companies claim that they can help you with your finances without damaging your credit score. In most cases this is simply not the case. If you have already missed payments on credit cards and loans then you have already damaged your credit score.

Debt settlement can though have some good effects on your credit score. For instance someone viewing your credit score after your debt settlement will see that several accounts will appear to be paid off. Yes of course debt consolidation creates a new credit account but lenders will consider the other accounts as paid in full. Compare your post debt settlement credit history to how it looked prior and there is no doubt that it will look improved.

It is simply amazing how few actually check their own credit report. Have you? Most do not realise how easy it is to access their own credit report. We live in an age where vast amounts of data are readily available and can be accessed online quickly and easily. The simple facts are that you can view your own credit report online for free as many companies will offer you a free trial.

It is always a good idea to check your credit score at least once per year. Sometimes mistakes can appear on your credit report and these can severely damage your credit worthiness. Mistakes though can be removed but of course you need to know they are there in the first place.

So if you have gone through a debt settlement plan and you want to know exactly how this process has effected your credit score simply view your credit score online yourself to find out.

Get your FREE ONLINE CREDIT REPORT NOW

Get Your Easy To Get Credit Card TODAY.

Article Source:http://www.articlesbase.com/personal-finance-articles/does-debt-settlement-affect-your-credit-score-1305129.html

Credit card cash rebates are not really discussed that much. You can combine different cash rebate credit cards in order to maximize any cash rebates that you earn. First, you will need to learn the different kinds of cash rebate credit cards.

Firstly there is the  “no-frills, basic” cash rebate credit card. It will pay you one per cent standard on your spend.

Next there is the “everyday purchase” rebate card. It will pay you more than the standard one per cent on purchases such as those made at drugstores, gas stations, standalone supermarkets, which can be termed as everyday purchases. On any other purchases you will be paid the standard rate.

Next we have the “tiered  rebate” cards. These will pay you more than the standard one per cent, but only after you spend more than a predetermined amount annually

If you want to maximize your cash back then you will first have to understand that your spending is divided into one, “everyday purchases” and second, “other purchases.”

If you have a simple basic cash back card then you will earn no more than one per cent on your everyday purchases. Instead you can earn more than that by taking the “everyday purchase” card. Therefore, you can earn maximum by combining the “everyday purchase” credit cards with the tiered rebate card. This will earn you cash back on your everyday purchases as well as your other purchases. Starting to see now how you can make multiple credit cards work for you? Over even a few months you would be amazed how much you can save with credit card cash rebates.

Get your FREE ONLINE CREDIT REPORT NOW

Read more about Credit Card Cash Rebates and how to use them.

Article Source:http://www.articlesbase.com/personal-finance-articles/credit-card-cash-rebates-1301749.html

In order to live comfortably and avoid the stress that comes with paying bills and the like, you will need to have money. The bible puts it this way, money answers all things and I completely concur. Successful and confident people in life are in control of their income and have the ability to direct their financial future.

Most people think that you have to earn a lot of money in order to become wealthy but I tend to differ. There are two sources of income which you can opt for and either of them can determine your financial destiny depending on how you manage your revenue. The two options are employment for those who want to play it safe and business for those who love taking risks.

Employment is a sure option of generating a stable and permanent income because you are assured of a monthly salary. Since you are guaranteed of an income every end of the month you can easily budget and save. However, there are some limitations that come with getting a monthly wage, one being that your employer determines your salary thus your financial growth in not in your hands.

The other major issue when it comes to employment is that your employer holds your job security. Take a good example of the on going economic recession; many employers decided to retrench some of their employees in order to cut down on their business operating cost so as to boost profits.

A sure way of evading such an eventuality would be to have several streams of income. Building extra sources of revenue would go a long way in securing your financial future and thus create wealth.

Stephen shares his experience in Self Development Tips that will definitely Add Value to your Life. (Website:) Self Improvement Tips

Article Source:http://www.articlesbase.com/personal-finance-articles/personal-finance-how-to-secure-your-financial-future-with-employment-1294729.html

How much you earn does not really matter but rather it is the ability to control your spending that will ensure you attain financial independence. This is the determinate factor that separates between the people who realize their financial dreams to become wealth and those who only dream to become rich.

Allow me to state that if you cannot control your expenditure, then you will spend more than you are earning and as a result you may never realize financial freedom. The best way to ensure you become wealthy is by budgeting.

For a budget to work you first need to be optimistic and not view it as a chore or as if it’s a sacrifice you are making. Your personal attitude towards budgeting will determine how successful your financial management will be. Pessimists are the ones who do not believe in having a budget.

In truth, those individuals who do not believe in budgeting are the same people who mostly love over-spending. If you happen to be one of these individuals you better arrest this mind-set, that if you want to be in control of your money.

Realize that planning your finances helps you to live within your means as you hope and trust that you will make more money and therefore afford more. My advice is that when budgeting take into consideration your expected and unexpected income. Unexpected income means things like gift or tips (if you are a waiter you understand.) But all said and done make sure your spending is base only on your expected income.

Being a millionaire is a sweet feeling, therefore strive to become one by not allowing money to control you, instead plan your finances.

Stephen shares his experience in Self Development Tips that will definitely Add Value to your Life. (Website:) Self Improvement Tips

Article Source:http://www.articlesbase.com/personal-finance-articles/budgeting-tips-are-you-in-control-of-your-money-1294747.html

Factors are coming together in the U.S. financial sector and the economy as a whole that bode so ill that nobody should be fooled by any happy talk from the mainstream media or the government. Let’s look at some facts: the economy is continuing to shed jobs at a prodigious rate, and the official unemployment rate of 9.8% is the worst since June of 1983 and is no longer capturing nearly half of the actual jobless, who make up 17% of our population.

Banks holding 20% or more of their loans in the defaulted category are at an 18-year high. The FDIC first proposed having the solvent banks prepay three years worth of premiums, then declined to do so after learning that the banks didn’t have the money. But the FDIC needed that money, and without it they will not be able to close the banks that have failed and repay their depositors immediately. Meanwhile, just this last Friday the FDIC was blindsided by a billion dollar bank failure, Georgian Bank out of Atlanta, that wasn’t even on their troubled bank list. Over 97% of the derivatives risk in the U.S. banking system is now in the shaky hands of the five largest banks. These banks can’t be allowed to fail, so the relaxation of the mark to market rules will simply continue until we have a “lost decade” just like Japan did.

For the American consumer, the credit card party is definitely over as default rates by cardholders at major players such as Bank of America hit 14% and angry Americans like Ann Minch make YouTube videos urging a debtors’ revolt due to the banks’ efforts to use ratejacks to 30% in a self-defeating bid to recoup their losses on defaults. Advanta Bank, once the 11th largest credit card bank has already essentially folded under the weight of accelerating defaults.

What can you do? As a consumer you need to educate yourself on what your options are financially, you need to do business with a credit union rather than a bank, you need to focus on the viability of your job and the frugality you can achieve in your own family. Do not look to government or to anyone else to solve your problems-solve your own, and help your neighbor if you can.

Mark S. Hankins is an attorney and author of the e-book “Debt Hope: Down and Dirty Survival Strategies”

Article Source:http://www.articlesbase.com/personal-finance-articles/oncoming-train-in-the-recession-tunnel-1295289.html

Are you the one that determines your income? If your answer is no, then it means you are in employment. We may claim that this is not true, but think of this, whenever you do a good job your boss may offer you a bonus, but he is the who determines whether you have done a good job or not?

It’s true, employment can guarantee you permanent and steady revenue, but that’s as good as it gets. Since you cannot also be sure of your job security, it advisable to have an extra source of income that can supplement your salary and also act as a fall-back plan just in case your employer decides to terminate your contract.

The perfect way of deciding the money coming in is by venturing into business. In business the more effort you put the more your revenue increases. Also another way of having an extra source of income is investing in assets such as rental houses. This is preferable, since it does not call for a lot of supervision and management unlike running a business.

However, while revenue growth is unrestricted in business, it becomes quite a challenge to predict and hence plan or budget since you cannot be sure of how much profit will have made by the end of the month.

All said and done, starting your own business or investing is the best option you have of attaining financial freedom. But I have to emphasis that you require to be aggressive, focused and take calculated risks if you are to succeed in the business arena. Otherwise, with strategic business planning you can be assured of sufficiently covering your expenses.

Stephen is an business management expert. He researches and studies on big and small business strategies . Website: Business Management Solutions for efficient business operations.

Article Source:http://www.articlesbase.com/personal-finance-articles/personal-finance-how-to-determine-your-income-1294767.html

Financial planning is the key to managing your money. The moment money begins controlling you realize that it is the beginning of financial mayhem. Individuals that have made it in life are known to have carefully constructed their finances by drawing a budget which they stuck to religiously. A monthly budget prevents you from things like impulse buying since you will purchase only what appears on your budget list.

It therefore means that there are attributes that constitute a good financial plan. One vital element of a working budget is keeping track of your expenditure. I earlier mentioned about impulse buying, in addition to preventing over spending, budgeting keeps you focused on what you really need.

A financial plan that works needs to be realistic. It is not advisable to set unachievable goals by being too ambitious. Whenever you choose to include in a budget should be determined by your monthly income and must never be at the expense of your basic needs. This does not mean you cannot have fun or buy that dream car. Some people are known to deny themselves a decent leaving in the name of saving for the future; this should not be the case.

Ultimately, prioritize and differentiate between the most important expenses and the least important, since it will help you distinguish your spending habits that you were maybe not aware of. Discovering your spending weakness would be of no benefit to you if you do not take divisive steps to amend such habits. All attempts to plan your finances would be simply futile if you fail to check unnecessary expenditure.

Stephen shares his experience in Self Development Tips that will definitely Add Value to your Life. (Website:) Self Improvement Tips

Article Source:http://www.articlesbase.com/personal-finance-articles/the-requirements-of-a-good-and-working-budget-1294842.html

Numerous individuals have been looking for info on BBT and their Banking Products. BBT’s is also known as Branch Banking Trust. They were founded in 1872 and have obviously weathered a storm here and there.

I would consider them a mega bank and are headquartered in the south east of the US. They have about $147 Billion in assets. I spoke wih a CSR and was told that checking accounts and savings accounts can be opened over the phone, but CDs require a branch visit. So it seems like they are good for locals only. The BBT CD Rates were quite low anyway, 0.80% APY for a 1-year CD and 1.00% for a 2-year.

However, they do have a $100 bonus on their checking account if you attach Direct Deposit or do 3 Bill pays.

Their FDIC number is 9846.
Phone: 800-BANK-BBT (800-226-5228)
Main Location: Winston-Salem, NC
Rating: 5-stars

I also found another deposit rate at America’s Credit Union. I’m giving you a freebie so if you like what you see, hop on over to their website. The promotional rates aren’t good for IRAs. Membership is open to all. You can either be a current or retired member of the military or join the Association of the US Army ($33).

Americas Credit Union is federally insured by the NCUA. They have a 7-month CD at 2.00% APY, 13-month at 2.15% APY, and a 25-month at 2.50%. Those are really good for this time. They do require $50 to be put into a savings account.

The credit union is federally insured by the NCUA. Currently up to $250,000 through 12/31/13. They have about $344MM in assets and a healthy 7.91% capital ratio. They had a $1.9MM profit for through 6/09. The ratings we use give them 4-stars.

Chris Duncan is a FINRA Registered Representative. He specializes in helping clients find the highest and best CD rates nationwide. His clients include individuals, financial institutions, corporations, and public agencies. They have high IRA CD rates.

Article Source:http://www.articlesbase.com/personal-finance-articles/finding-some-online-banking-services-1295451.html