Not much is certain in life. Life never fails to throw a curveball our way when we can least afford it. Family crises can be caused a lot of things. Crisis can come to us through our jobs, accidents, health issues and familial relationships.

These things happen and could entail you to spend a lot of money. This isn’t your fault but what can you actually do to avoid being in debt or mismanaging your debts in times like these? You have plenty of options, one popular one is negotiating a debt settlement with your creditors to reduce what you owe.

When things like these happen, the first and most logical thing for you to do is to actually determine how you can get by with the type of resources you have. How well have you handled your expenses in the past? You could consider using a debt consolidation loan to help pay your bills. Or you could learn how to legally eliminate debt. If creditors are able to track your type of spending and paying, and track that you are actually a good payer, chances are you will be approved of better types of loans.

The most logical thing to do is to directly contact the creditor yourself even before your first payment is ought to be made. Explain the situation and you will likely find that your creditors will allow you to just make interest payments only and that it will not do any harm to your credit score. This is the first and best option. This is one way to settle credit card debt.

If your family crisis is going to continue for more than a few months, then you may need to seek some relief through a consumer counseling agency or through a debt management company. You could consider a home equity loan to consolidate your debt.

Whatever course of action that you choose, it is far better for you to initiate it and to do so as early as possible before any damage is done to your credit score.

Technorati Tags: how to legally eliminate debt, how to settle credit card debt, negotiating a debt settlement, way to settle credit card debt

IRA Charitable Rollover

The Pension Protection Act tax benefit designed for 2007 only has been extended for 2008.  Through this act, individuals 70-1/2 years or older in retirement can make a qualified charitable distribution up to $100,000 directly from their IRA or Roth IRA retirement plans free of income tax. 

Contributions must be transferred directly from an IRA account to one or more charitable organizations, and to enjoy this retirement plan tax benefit, the donor must not receive any benefit or value from the contribution.  In the past, direct IRA contributions were included as part of your taxable income.  With this extended legislation, your IRA charitable contributions do not need to be listed as part of your taxable income, and no tax is payable on the donation. 

This is also helpful for those who still need to meet their yearly “required minimum distribution” (RMD) from an IRA.  By making a direct charitable IRA rollover, you can prevent penalties on your retirement plan for under withdrawals. 

Save Tax on Your Social Security Income

You may want to consider withdrawing more than your RMD.  Those in certain tax brackets can withdraw additional IRA income to offset the amount of Social Security Retirement benefit received.  By incorporating this retirement planning strategy, you can reduce the amount of taxability of the Social Security income. 

REEP credits

Whether or not you are planning for retirement, if you are interested in reducing utility costs and eliminating your carbon footprint, you can receive a Residential Energy-Efficient Property tax credit up to $2,000 for qualified improvements.  The tax efficient investment applies to improvements such as solar energy panels, solar water heating units, or other fuel cell improvements.  Taxpayers are allowed to deduct 30% of the total cost of the property investment up to $2,000, of which any unused credit may be carried over into the next tax year.   To learn more about retirement planning visit www.kenhimmler.com.  

Automobile Tax Credits

Great for retirement planning and the environment, if you are looking to buy a new car, you can still purchase a new fuel-efficient automobile by the end of the year for a tax credit.  Depending on the make and model, cars such as the popular fuel-electric hybrid can give you a nice tax deduction.  However, you should act quickly.  Many models are being phased out from the tax break, but there are still newer models of Fords and Hondas that enjoy full tax credit if purchased by the end of 2008.

Pay Your Property Taxes

Often tax assessments are billed in installments over a year period, or are assessed toward the end of the year.  You can still pay all of your current outstanding property tax charge before the end of the year to receive full tax credit for 2008. 

With the end of year approaching quickly, there is little time to take advantage of tax advantages for your retirement planning.  Your retirement income is important to you, and maximizing your tax benefits can help you keep more income in your pocket.  You can also take advantage of professional retirement planning professionals to secure further tax relief help. 

Technorati Tags: retirement, retirement plan, retirement planning

IRA Charitable Rollover

The Pension Protection Act tax benefit designed for 2007 only has been extended for 2008.  Through this act, individuals 70-1/2 years or older in retirement can make a qualified charitable distribution up to $100,000 directly from their IRA or Roth IRA retirement plans free of income tax. 

Contributions must be transferred directly from an IRA account to one or more charitable organizations, and to enjoy this retirement plan tax benefit, the donor must not receive any benefit or value from the contribution.  In the past, direct IRA contributions were included as part of your taxable income.  With this extended legislation, your IRA charitable contributions do not need to be listed as part of your taxable income, and no tax is payable on the donation. 

This is also helpful for those who still need to meet their yearly “required minimum distribution” (RMD) from an IRA.  By making a direct charitable IRA rollover, you can prevent penalties on your retirement plan for under withdrawals. 

Save Tax on Your Social Security Income

You may want to consider withdrawing more than your RMD.  Those in certain tax brackets can withdraw additional IRA income to offset the amount of Social Security Retirement benefit received.  By incorporating this retirement planning strategy, you can reduce the amount of taxability of the Social Security income. 

REEP credits

Whether or not you are planning for retirement, if you are interested in reducing utility costs and eliminating your carbon footprint, you can receive a Residential Energy-Efficient Property tax credit up to $2,000 for qualified improvements.  The tax efficient investment applies to improvements such as solar energy panels, solar water heating units, or other fuel cell improvements.  Taxpayers are allowed to deduct 30% of the total cost of the property investment up to $2,000, of which any unused credit may be carried over into the next tax year.   To learn more about retirement planning visit www.kenhimmler.com.  

Automobile Tax Credits

Great for retirement planning and the environment, if you are looking to buy a new car, you can still purchase a new fuel-efficient automobile by the end of the year for a tax credit.  Depending on the make and model, cars such as the popular fuel-electric hybrid can give you a nice tax deduction.  However, you should act quickly.  Many models are being phased out from the tax break, but there are still newer models of Fords and Hondas that enjoy full tax credit if purchased by the end of 2008.

Pay Your Property Taxes

Often tax assessments are billed in installments over a year period, or are assessed toward the end of the year.  You can still pay all of your current outstanding property tax charge before the end of the year to receive full tax credit for 2008. 

With the end of year approaching quickly, there is little time to take advantage of tax advantages for your retirement planning.  Your retirement income is important to you, and maximizing your tax benefits can help you keep more income in your pocket.  You can also take advantage of professional retirement planning professionals to secure further tax relief help. 

Technorati Tags: retirement, retirement plan, retirement planning

1. Record Your Expenses

For a month or two, write down what you spend every penny on. This process may enlighten you as to where large chunks of your income goes, or show you how little things add up. You might even find that you are spending less by the end of the month, just because you are so aware of the money going out when you track it like this. After the month is over, categorize your expenses and see how much is going to various areas, like “eating out,” “renting movies,” “electric bills,” etc.

2. Find Ways To Spend Less

Using the information you have gathered in step one, start finding every way you can to cut those expenditures. This can mean giving up a few things which are less important to you than your future financial security. On the other hand , it may just mean finding better ways to do things, without sacrificing anything. Turning the heat down while at work doesn’t hurt, after all. Look for cheaper insurance, foods that cost less, better restaurants with lower prices, and on and on.

3. Apply The Money Saved To Debt

Now that you are spending less, you should have some money left over from those paychecks. Start applying it to any debts which you have. Always start with those that are at the highest interest rate, and use all “extra” money towards paying those off first. If you have done this right, you are living just as well, but spending less to live that way, and getting out of debt.

4. Find New Sources Of Income

While you are working on step three, start looking for new ways to make some extra income. This could mean an extra shift at work each week or two, or asking for a raise, or even looking for a better job. It also could mean starting a small business on the weekends. Look at the skills, connections, knowledge and things you have. Renting out an extra room in your house could provide an extra $4,000 per year, for example.

5. Start Paying Cash

Everything is cheaper when you pay cash. Not only is it easier to negotiate a better price initially when paying cash, but you also don’t pay the interest charges. This means that though you may have to wait and save for some things (like the next car), you live cheaper, or get to buy even more things you want (your choice). If you do use a credit card, pay it off each month.

6. Invest Regularly For The Future

Once you are controlling those expenses, generating new income, and staying out of debt, you should have a fair amount more coming in than going out. Start investing this money for the future. If you are uncomfortable with conventional investments like mutual funds or stocks, at least find the highest-interest bank account you can, and save to start a business.

Most of these ideas are probably not new to you, but if you actually follow a simple plan like this with your personal finances, you’ll almost certainly avoid finacial trouble, be more financially secure and more relaxed in a short time.

Technorati Tags: debt, finances, investing, personal, personal finances

Save Money With A Better Price

There is more than checking out another store when it comes to getting a better price. This is especially true with larger items, where negotiation is more common. Here are some of the ways you can find a lower price.

 - Ask. I once bought a new book for half-price at a regular bookstore. It was a slow day, and the owner was behind the counter. I simply said it was worth half the cover price to me, otherwise I wasn’t interested. You never know unless you ask.

- Be an opportunist. If something you buy regularly is on sale, stock up. This works well for paper towels, batteries and canned food, among other things that can last a while in your cupboards.

- Try several stores. You can even do this by phone if it is just one or two larger items you are looking for. Call in the early afternoon, when it isn’t too busy.

- Learn to negotiate. I once read a true story of a man who bought a new refrigerator for 25% off the retail price. How did he get such a deal? By spending two days, an hour each time, with the salesman, and then making a low “ultimatum offer.” The salesman just didn’t want to lose the sale after all that work. This is called “time investment,” and is just one of the secrets of good negotiators.

Save Money With Alternatives

We tend to be too specific in what we think we need or want, and then look only for ways to get a better price. It’s a very limiting approach. Often, there are many great alternatives that cost less. Why not look around and see what they are?

For example, you might think you really want to take a summer cruise along the coast of Alaska. If you are flexible, though, and you explore the alternatives, you might find that it costs half as much to go in September, when the cruise lines have a hard time filling their rooms. You may have just as much fun in September as August, or even more if you get to extend the vacation and still spend less.

What do you really need? There is almost nothing you buy that you need. Oh, you need categories of things, like food and clothing, but not specific foods or specific brands of clothes. Keep that in mind as you shop, and you can save a lot of money. If, for example, instead of just buying the fruits that catch your eye, you bought apples when they are cheap, oranges in season, and so on, you might eat the same amount of each fruit and vegetable in the course of a year, yet spend half as much.

Don’t forget the ultimate alternative to buying something: to just say no. That doesn’t sound too inspiring, but sometimes there are things we don’t really get much value or pleasure from, which we buy out of habit. For example, you might find that you feel even better at work if you skip the stop at the coffee shop - at least once the caffeine withdrawal is over. You might not watch most of the channels in your expanded cable package. Remember that everything you don’t buy frees up money for the things which really are important to you.

Finally, to save money on almost everything, put these two basic ways together. Start by looking for the cheapest alternatives that will give you what you need and want. Then find or negotiate the lowest price you can for these. There are hundreds of more specific ways to save money, but they all involve either paying less or finding alternatives.

Technorati Tags: money, save, save money

A friend of mine used to have a used car lot. He teamed up with a creative used car finance company to sell cars to people who had trouble getting traditional loans. I don’t recall the name of the company, and I may get a few figures wrong, but I remember the principles very clearly.

A typical deal might have started with the dealer taking a trip to the auction. He would buy a car there for $1,200 (wholesale) which might have had a retail value of about $2,200. But because he is making it easy for somebody to buy the car, he can sell it for perhaps $3,000 after cleaning it up.

How does he make it easy to sell at a high price? By arranging financing for the buyer, who typically cannot get a bank loan. How does he do that? With a very creative finance company that rarely refuses to make a loan.

How can they make loans to people who are a terrible credit risk? By putting much of the risk onto the dealer and charging outrageous interest rates. Specifically, in this case, they would finance the $3,000 car at say 20% annual interest. But they also would only forward half of the loan amount to the dealer. The rest would be paid only when and if the payments from the buyer came in.

In this example, then, the buyer might have to pay a $600 down payment. A young couple can put together a couple paychecks to afford this. Payments on the $2,400 loan arranged by the dealer might be $200 per month. As I recall, weekly payment plans might have been available as well, to make budgeting easier for those with weekly or biweekly paychecks.

The loan would be for $2,400, but the dealer would get $1,200 when the sale was made - half of the loan amount. As you can see, the dealer is already okay, since he has received a total of $1,800 for a car that cost him $1,200. In other words, if he receives nothing more he may be able to squeeze a profit from these deals even after overhead costs.

What about the used car finance company? So far they have only risked $1,200, on a car which is worth that much at a wholesale auction. They collect 20% interest on the entire $2,400 however, as well as some kind of “loan processing fee” up front. This makes their real rate of return over 40% annually.

Of course, these are high-risk loans. I heard through the grape vine that 50% of these loans were in default at some point. But the finance company had an aggressive collection team, which called borrowers as soon as they were a week late, and quickly repossessed cars when necessary.

What does that mean? As an example, suppose a buyer ran into trouble and stopped paying after the first eight payments of $200. The principle amounts had been forwarded to the dealer, but the lender would have already collected about $400 in interest and fees. When they took the car and sold it for $1,100, they might net $800 after the repossession fee and other costs. In other words, they broke even on the deal. When you make a 40% return on the good deals, you can break even on a lot of the others, right?

Used Car Finance Lessons

One dealer who had used this finance company was still receiving checks for principle years after he retired, so he liked the arrangement. Despite the high interest rate, the buyers now had a car to get to work in, so they liked the deal, or at least found it better than all other options. The owners of the used car finance company were happy making money where nobody else dared to loan. It was very creative all around, so what specific lesson can we learn to apply when making money in other businesses? Here are three:

1. High-markup products allow for more creativity in marketing and selling.

2. Making it easy to buy allows you to charge more for your product (or service).

3. Finding a way for everyone involved to “win” helps you make money.

There are other lessons in this story of used car finance, of course. For example, in the case of the lender you can see that going where others fear to go opens up new opportunities. Sharing the risk is also a useful way to make things possible that otherwise might not be. Of course, the buyers out there might see the lesson that you pay a lot more when you finance things, and especially when you have bad credit.

Technorati Tags: business, finance, making money, used car finance

While many of these same companies work in financial planning, their ability to help soon to be retirees out of a projected monthly deficit can be a blessing for those with little financial understanding.

Consider that for many of those approaching retirement age, their lives were focused on living the good life while they were earning a decent living. Most figured they would follow in their parents footsteps and live on Social Security and the employers retirement fund once they hit the magic age. Unfortunately, if they plan to maintain their standard of living, they will need retirement planning consultant services to help them figure out how to save enough money to make that dream a reality.

Many parents who lived through the Great Depression became extremely tight fisted with their money. Now some of their children are getting closer to their golden years. Perhaps after the frustration of living with such financially conservative parents they swore they would be different, not holding on so tight to every penny. That has left many with very little savings for retirement. Retirement planning services can help a person rethink his attitude about spending and saving.

Counsel Only Helps If Applied

Consultants will give direction and suggestions for building a good savings for retirement. No matter how good their counsel is, however, if a person does not apply it they will not benefit at all. So many take the time to seek help from a consultant and then afterwards disregard everything the consultant says. They will reap the consequences of this unwise choice down the road.

Of course your financial future is more important to you than it is to anyone else. That is why no matter how great a consultant, or a retirement planning advisor you have it is still important to keep an eye on what how your retirement investments are doing so that you can make needed adjustments as necessary.

Find the retirement planning consultant services that is a comfortable fit for the client and the company and then trust the suggestions. Do not go on blind faith alone, but there has to be an element of trust to let them do their job.

Technorati Tags: 401k, finance, financial planning, personal finance, retire, retirement, retirement income, retirement planning advisor, retirement savings

While aging individuals do not wish to be a financial burden to their families, lack of adequate retirement savings could create exactly the type of situation many older adults try to avoid. Retirement planning is most effective when undertaken by middle age, but many times individuals fail to implement retirement plans until much later in life. Even if an individual is near retirement age, it is not too late to set retirement planning in motion.

Retirement living costs money regardless of whether you live at home or in a retirement community. Basic expenses such as food, clothing, prescription medications, medical services, and housing costs must all be considered. Retirement living communities consist of: active adult communities, assisted living communities, independent living communities, Alzheimer’s care facilities, nursing care facilities, and continuing care retirement communities.

Continuing care retirement communities (CCRC) may be an excellent option for you as you age, since they provide a spectrum of retirement living options. As the your needs change, you can move between services, and CCRCs provide services and living arrangements ranging from independent living to assisted living to nursing home care.

A retirement planning calculator can help you determine you current financial status and translate that into future retirement savings. Retirement calculators can assist you in determining the best investment strategies based on the your current income and savings and can show you how a savings program can prepare an you for retirement.

Retirement planning calculators take into consideration your current age, expected retirement age, life expectancy, current income, retirement savings, average return on investments before retirement, anticipated return on investments after retirement, and Social Security benefits among other factors. Using this information, retirement calculators can help an you determine how much savings will be available at retirement age, when your savings will run out, and how much debt the you may leave behind. It is also important to consult with a financial advisor who can assist with important information, visit www.iamllc.biz.

If you are striving for financial security during retirement, while optimizing your investments and protecting your assets and income, you can find advice and guidance at www.kenhimmler.com.

Technorati Tags: retirement age, retirement living, retirement planning, savings

The facts are that many people took cash out, borrowed more than they can afford, took teaser rates, or applied using some form of a stated income loan which would often over inflate the borrowers actual income through the home refinance or home purchase process. Values for most people’s homes has decreased which is adding fuel to a crumbling US economy, and now those same people can’t refinance or sell their homes. Why are so many people leaving their homes to the bank to foreclose on; I might never know. Can this be the best option?

I don’t have the right or wrong answer here but I do know that up until the 90’s most people bought a house as a place to live and somewhere to stay and raise a family.That might be a Walton’s way of thought but sometimes the truth hurts.With national home values increasing faster than expected in the 1990’s to 7% a year; it started a trend.  Lending practices began to recover from the S/L crisis and a new way of thinking was born in the lending world. Your not buried yet?Do you know your FICO score? Well then you obviously are able to get a house.With that the mid 90’s saw lower home prices and stated income was normal and accepted.Then the temptation comes in to play with values skyrocketing and homeowners using that money to buy expensive items. Most used the money to “keep up with the Jones” purchasing big ticket item they really had no business of buying in the first place.

Fast forward about 10 years to 2008 we are all faced with the dilemma should I stay or should I go.With current lending standards I can just walk away and in theory buy the house or another house lower than what the value is now in 2 years.  This is all true you can walk, you could buy your home for less, but do you really want to?  You knew what you were doing when you signed on the dotted line, what has changed since then; other then heightened media coverage on the housing market failures which is feeding consumers brains and giving them the food for thought on how to  walk away.   Again You knew what you were doing when you took the cash out home refinance, you knew what you were doing when you bought the home, don’t bring everybody else down even further as somewhere along the line we must just stop this madness.We are not a nation of quitters, and to side step an approaching depression we must all take a stand to save our houses….to save the economy.

Technorati Tags: appraisal, homes, loan, market, mortgage, payments, property, refi, refinance, upside down, values

That question leads to a deeper understanding of how to make money. An answer is suggested in the following three principles.

1. Trading Values

Many of the late-night television “get rich quick” infomercials cater to people who think there is an “angle” or “secret” which makes it easy to succeed. Of course there are tricks, tips, techniques and tools that will help, but in the end, it is all about value. You have to have something of value to offer others if you want to consistently make money.

A business person who thinks the first question is how to separate people from their money will be tempted to use any means towards that goal. This usually results in dissatisfied customers, meaning less repeat business, and eventual failure. The first question is how to provide real value to people. Serving people well makes them happy to pay you well. This is true whether you are an employee (in which case the employer is your customer) or the owner of a company.

2. Doing What Needs To Be Done

Of course, having something of value to offer isn’t enough by itself. You have to also do what is necessary. The first thing which is necessary is committing to a plan and taking action. That means “doing” instead of “trying.” Unfortunately, “giving it a try” too often means quitting at the first sign of trouble. A commitment to success means seeing mistakes as opportunities to learn and move on. You don’t keep repeating what doesn’t work, but you keep doing something.

People who want to make “easy money” are usually not willing to learn what they need to learn. Suppose a man hears that there is good money in roofing, for example. He knows nothing about the business, but instead of learning what he needs to know he pretends that taking the test to get his contractors license is enough. He could have worked on a roofing crew for a while to learn the basics of the craft. He could have asked for help to learn how to run a business from others who had succeeded. He could have bought a book on how to market his services.

But instead of learning what he needed to know, he takes the easy route - which leads to failure, as it usually does. You have probably seen this scenario played out before with friends who think they want to be an actor, or start a business, or invest in real estate. You have to do what needs to be done to make money, and learning what you need to learn is the cheapest, lowest risk part of that.

3. Knowing Yourself

Doing what needs to be done is tough if you hate what you are doing. This is only one of the reasons you need to think carefully about yourself when making decisions about jobs, business and money in general. But jobs and businesses you aren’t suited to or ready for won’t just make you unhappy. Ignoring your interests, skills and abilities is a sure way to stumble into the wrong way to make money, meaning a way that doesn’t work.

Knowing yourself is an important key to how to make money. Even something as seemingly mundane as whether you work slow or fast should be taken into account. Many years ago I picked apples to earn extra income. We were each paid by the box, and though I made $14 per hour, some workers made only $4 per-hour. The lesson? If you’re fast and efficient, you might make more money with a job or business where you’ll be paid per unit of production. If you’re slow and inefficient, an hourly job or a business where you can delegate out much of the work may be better.

What can you do? What skills and abilities and work habits do you have? What things do you enjoy doing? How good are you working with other people? With customers? How much energy do you have? Do you quit too easily, and why? What did you do that contributed to previous failures? Will this job or business keep you feeling motivated? Do you know what you need to do, and if not, are you willing to learn, and then do it? What personal changes do you need to make to increase your odds of success? Honestly answering questions like these may be the surest way how to make money.

Technorati Tags: how to make money, make money, money