Signed into law over a year ago, the credit card bill of rights was touted as protection against practices and fees imposed by credit card issuers on to consumers and which have long been considered arbitrary. Just to refresh your memory, banks must practice the following:
- No more arbitrary rate increases: cardholders must be notified prior to such a move.
- Periodic reviews and reduction of a cardholder’s annual percentage rate (APR) where it is warranted or requested: reviews should take place every 6 months.
- Allocate payments fairly: payments made should go towards balances accruing higher interest.
- No universal default: a cardholder cannot be penalized on Card B should he/she default on Card A.
- No double-cycle billing: banks cannot charge late fees on payment that has been made for a previous billing cycle.
- No phone-payment surcharge
- Elimination of due date gimmicks: payment made by 5 p.m. E
Let’s forget credit card companies and the various ways they conspire to squeeze more money out of you for a moment. That’s a dead horse that’s already been beaten too many times with no resolution in sight. Instead, let’s focus our attention on banks. I can accept the fact that burying my money out in the backyard is not the acceptable way of “making it grow”. However, what I can’t swallow is all the sneaky, underhanded ways banks think up to use my money for their profit.
Fees for Foreign Transactions
Anyone would be excited to go on vacation, right? Most of the time, credit cards and travelers’ checks are sufficient to cover the cost of any expense incurred, and you won’t have to worry about not having enough money on you.
The bad news is, credit card issuers can charge up to 5% of the expenditure to grant you the convenience of using your own credit card outside the country. Not only that, th
Frugality is a virtue worth cultivating, but there are those of us whose desire to put money away means doing things that result in them missing the bigger picture when it comes to budgeting and savings.
Hoarders Unlimited
On the face of it, ensuring you have emergency funds is sensible. However, it’s time to take a step back and reevaluate your goals when it hampers your quality of life. Signs of stinginess include having few or no friends resulting from a reluctance to go out, or opting to wait 3 hours before eating (though you’re starving) so you can take advantage of a $2 discount at the local diner. It goes penny-pinching and is a sign you’ve gone completely overboard.
If you recognize yourself, or someone you know in this description, you might want to have a chat with a financial planner to put the fears to rest. At th
With the difficulty in the housing market, and an increasing number of foreclosures, many people are looking for help with their mortgage payments. For many people their 401k account is their largest untapped resource of funds. Unfortunately, using your 401k for mortgage payments or other reasons can be tricky, and expensive.
Most 401k plans do not allow current employees to withdraw funds from their current 401k. There are two major exceptions.
Remember that all 401k plans are governed by their own specific rules as specified in their plan document. The features described below are allowed, but not required, by IRS rules. As such, they may not apply to your employer’s 401k plan.
A 401k hardship withdrawal allows a current employee to withdraw money from their 401k account for expenses that are “immediate and heavy.” Immediate and heavy expenses can include payments necessary to avoid foreclosure or eviction, or even expenses associated with purchasing a home. There
Contributions to IRA accounts for 2010 and 2011 are subject to an annual limit of $5,000 for all taxpayers under age 50. (The IRA contribution limits for 2011 are the same as the IRA contribution limits for 2010.) IRA owners over age 50 can contribute an additional $1,000 catch-up contribution to their IRA account for a total contribution of $6,000 per year.
Contributions must come from taxable income.
We can’t all be Robert Kiyosaki (“your strategy is all wrong; buy my book”) but nothing can stop you from using the money you have to its fullest potential. I’d do what my favorite advisor, Tim Gunn, always says: “Make it work!”
Opt for investments that provide fair returns
Nothing is worse than having another person profit from money you gave them to invest. Sadly, that’s precisely what’s happening if your money is languishing in CDs (certificates of deposit), savings accounts or money market funds!
These financial institutions are effectively borrowing from you, loaning/investing it elsewhere, and waxing fat on the difference. If you want your money to earn its keep, so to speak, conservative dividend stocks are a viable alternative; there are a number of companies that pay out annual yields of up to 9 per cent. You could say their tag-line, if they had one, would read “no flash, all cash”. Or something like t
Owning a home is one thing; many people often daydream about building their own real estate empire one day. However, just like blue cheese, real estate investing might not be the right choice for all small-scale investors.
Are you aware of the gravity of the investment?
A real estate investment requires serious commitment. You need to abide by basic business principles whether you want to deal in houses or apartments. Real estate is one avenue where the need to recoup your initial investment and thereafter make a profit is more greatly emphasized than other investments.
If you aim to sell, you have to get more than what it cost to buy and fix up the property. If you aim to rent, the income from rental should subsidize a generous portion of the mortgage.
When deducting eligible automobile expenses, taxpayers have the option of deducting actual expenses or using the optional standard mileage rates to deduct automotive expenses. Because, the records required in order to deduct the actual expenses and depreciation of a car expenses are extensive and detailed, most people opt to use the standard mileage deduction.
In addition, many businesses use the standard IRS mileage rates to reimburse employees for miles driven for work purposes. This both ensures that the company can deduct those reimbursements fully as a business expense, and that there is no disagreement about what the mileage reimbursement rate should be since an impartial government agency is the one that sets it.
The mileage deduction rate is adjusted every year. The standard 2011 tax deduction mileage rate has been published.
Beginning on January 1st, 2011, the standard mileage rates for calculating the deductible costs of operating a car or truck for business purposes is 51 cents per mile. Read more…