Remember the first time you heard the term "IRA"?
Long before the responsibilities of adulthood loomed, you probably overheard your parents using the acronym and dismissed it as yet another boring topic that only old fogies had to worry about. Alas, you finally grew up and realized that your parents were, well ... not that old when they used that foreign-sounding term. The truth is, planning for retirement as early as possible gives you the best possible chance of meeting your goals. A Gold IRA is an option that is often overlooked, but has the potential to be one of the soundest investments you can make in an economic climate fraught with uncertainty.
These days, a trip to your local amusement park is likely to offer fewer ups and downs than the economy. With the stock market fluctuating wildly, many investors have been left scratching their heads at the prospect of finding a reliable long-term investment. Even the purchase of land, once heralded as the best possible investment you could make, has proven to be a tenuous proposition due to the all-around instability.
How did we get here? The worldwide recession we're currently embroiled in (as a result of the sub-prime mortgage crisis) led to heavy borrowing, which in turn left smaller countries (like Greece) unable to repay their debts. The U.S. has had its share of debt-related difficulty as well, as was on stark display when its credit rating was downgraded for the first time in the nation's history. Consequently, the value of currency worldwide is dropping and stocks are plummeting while gold, often referred to as a "crisis commodity," has seen its value soar.
Planning for retirement amid such chaos can be overwhelming. If you're considering options, than you most likely know that an IRA (or Individual Retirement Account) is a form of long-term investment that was created to provide financial stability for you when you reach your golden years. In the past, investors generally thought of IRAs as being restricted to cash and cash equivalents, but in 1997, the Taxpayer Relief Act made adding precious metals like gold, silver and platinum possible.
The Relief Act provided investors an excellent opportunity to reduce portfolio volatility. Gold's remarkable ability throughout the ages not only to weather troubled times but to appreciate in value makes it a particularly dependable investment when compared to mutual funds, stocks or bonds. A rather striking statistic is that if you had invested $25,000 in gold coins 30 years ago, you'd have a net worth of $500,000 today. Since an IRA represents an entire lifetime of work, it makes sense to contemplate making gold a significant role-player on your journey to a successful retirement.
The most priceless commodity of all is peace of mind. A gold IRA is worth considering seriously when planning for a bright future, while living in an all-too-bleak present.
Monday, November 14, 2011
Saturday, November 5, 2011
Are Credit Unions Really Any Better Than Banks?
I've had a credit union account for over 21 years. With Bank Transfer Day upon us, many people will be moving their money out of big banks and into smaller credit unions. I am certainly no defender of banks. In fact, I have a saying that "There are no good banks, just some that are less bad." But I am not willing to give credit unions a free pass just because they are not-for-profit. I am simply not convinced that credit unions are any better than banks.
I regularly publish the money market interest rates of several financial institutions. There is one credit union on my list: Western Federal Credit Union. I have maintained an account at Western FCU (and at it predecessor credit union) since 1993. Regrettably, in my updates going back to 2008, Western has consistently scored in the lower half of the financial institutions that I track. This is certainly not a convincing argument for Western FCU.
In order to provide some additional points of comparison, I added a couple of credit unions that advertise quite heavily in my local area: Travis CU, and Patelco Credit Union. A bit of history: Patelco is the credit union for the company currently called AT&T (formerly SBC (formerly Pacific Bell (formerly Pacific Telesis Group (formerly Pacific Telephone Company)))). Thus, the name Pa-Tel-Co Credit Union. Anyway, I've digressed. So, I compiled an interest rate list for these credit unions, and a few selected banks.
0.89% Ally Bank Online Savings
0.76% EverBank Yield Plus Money Market
0.45% Western FCU Money Market
0.10% Citibank Savings Plus
0.10% Travis CU Flexible Money Market
0.06% Patelco CU Money Market Account
The two new credit unions are approximately on par with Citibank! And Citibank is pretty much at the bottom of the heap as far as banks are concerned. I realize that interest rates alone are not the only comparison point. There are, of course, customer service issues and fees. Thankfully, I am very careful about the types of accounts that I open, and have been able to avoid bank fees.
As far as Western FCU is concerned, I still have a sizable balance with them. However, they did close the one branch near my home (the next closest branch being a 30 mile drive away). And, they can be just as inflexible as the big banks on some matters.
But to sum things up, I am not particularly loyal to any bank. I will transfer my bank funds to a credit union if somebody can show me a credit union that I'm qualified to join, and has savings rates as high as Ally Bank, or branches that are as convenient as Citibank. In the end, I guess that I won't be transferring my money today after all.
DC
I regularly publish the money market interest rates of several financial institutions. There is one credit union on my list: Western Federal Credit Union. I have maintained an account at Western FCU (and at it predecessor credit union) since 1993. Regrettably, in my updates going back to 2008, Western has consistently scored in the lower half of the financial institutions that I track. This is certainly not a convincing argument for Western FCU.
In order to provide some additional points of comparison, I added a couple of credit unions that advertise quite heavily in my local area: Travis CU, and Patelco Credit Union. A bit of history: Patelco is the credit union for the company currently called AT&T (formerly SBC (formerly Pacific Bell (formerly Pacific Telesis Group (formerly Pacific Telephone Company)))). Thus, the name Pa-Tel-Co Credit Union. Anyway, I've digressed. So, I compiled an interest rate list for these credit unions, and a few selected banks.
0.89% Ally Bank Online Savings
0.76% EverBank Yield Plus Money Market
0.45% Western FCU Money Market
0.10% Citibank Savings Plus
0.10% Travis CU Flexible Money Market
0.06% Patelco CU Money Market Account
The two new credit unions are approximately on par with Citibank! And Citibank is pretty much at the bottom of the heap as far as banks are concerned. I realize that interest rates alone are not the only comparison point. There are, of course, customer service issues and fees. Thankfully, I am very careful about the types of accounts that I open, and have been able to avoid bank fees.
As far as Western FCU is concerned, I still have a sizable balance with them. However, they did close the one branch near my home (the next closest branch being a 30 mile drive away). And, they can be just as inflexible as the big banks on some matters.
But to sum things up, I am not particularly loyal to any bank. I will transfer my bank funds to a credit union if somebody can show me a credit union that I'm qualified to join, and has savings rates as high as Ally Bank, or branches that are as convenient as Citibank. In the end, I guess that I won't be transferring my money today after all.
DC
Thursday, November 3, 2011
Get a $60 Cash Reward from EverBank
EverBank just sent me an Email offering a $60 cash reward bonus for opening a new checking account. Of course, like every bank offer out there, they have a few terms and conditions that you must satisfy to receive your money. On the positive side, EverBank doesn't charge monthly account fees, or debit card fees. And, they have a decent interest rate for a checking account of 0.46% APY or higher. (My current checking account pays me 0.01%.)
Here is the fine print:
Bonus Offer: When you open your first Yield Pledge Checking Account ("Checking Account") before November 30, 2011, you may be eligible to receive a $60 cash reward. To qualify for the $60 reward, you must: a) apply for your first Checking Account and title the account for individual or joint ownership; b) your Checking Account must be opened, approved and funded with a minimum deposit of $1500 USD transferred to EverBank by November 30, 2011; c) you must establish and receive at least one direct deposit of at least $500 into your Checking Account before January 31, 2012; d) you must maintain an average daily balance of at least $1500 for the statement periods ending December 31, 2011, and January 31, 2012; and e) you must keep the account open until February 29, 2012. The $60 reward will be directly deposited into your Checking Account not later than February 29, 2012. Limit 1 reward per household. This offer expires on November 30, 2011.
DC
Here is the fine print:
Bonus Offer: When you open your first Yield Pledge Checking Account ("Checking Account") before November 30, 2011, you may be eligible to receive a $60 cash reward. To qualify for the $60 reward, you must: a) apply for your first Checking Account and title the account for individual or joint ownership; b) your Checking Account must be opened, approved and funded with a minimum deposit of $1500 USD transferred to EverBank by November 30, 2011; c) you must establish and receive at least one direct deposit of at least $500 into your Checking Account before January 31, 2012; d) you must maintain an average daily balance of at least $1500 for the statement periods ending December 31, 2011, and January 31, 2012; and e) you must keep the account open until February 29, 2012. The $60 reward will be directly deposited into your Checking Account not later than February 29, 2012. Limit 1 reward per household. This offer expires on November 30, 2011.
DC
Tuesday, November 1, 2011
How Does Your Income Rank?
The IRS has recently released percentile ranks for adjusted gross income (AGI) reported on 2009 tax returns. Currently, these are the latest statistics that the Internal Revenue Service has made available. Using this handy table, you can quickly figure out where your income ranks:
This data comes directly from the Internal Revenue Service. A link to all of the Statistics of Income (SOI) data can be found on the IRS website.
I have also come across an interesting article on Kiplinger.com that further analyzes the IRS data. From this information, they conclude such facts as those making over $343,927 (the top 1%) account for 37% of all the taxes paid. Does anybody have some further insight on this statement?
So, now you have the data. Where do you rank?
DC
| 2009 AGI (Adjusted Gross Income) | Percentile Rank |
| less than $32,396 | Bottom 50% |
| more than $32,396 | Top 50% |
| more than $66,193 | Top 25% |
| more than $112,124 | Top 10% |
| more than $154,643 | Top 5% |
| more than $343,927 | Top 1% |
This data comes directly from the Internal Revenue Service. A link to all of the Statistics of Income (SOI) data can be found on the IRS website.
I have also come across an interesting article on Kiplinger.com that further analyzes the IRS data. From this information, they conclude such facts as those making over $343,927 (the top 1%) account for 37% of all the taxes paid. Does anybody have some further insight on this statement?
So, now you have the data. Where do you rank?
DC
Monday, October 10, 2011
4 Tips for Saving Money in Times of Economic Transition
While it is never easy to know when to spend, when to save, and when to invest, the current economic state is somewhat ambiguous, frustratingly so for some people, who'd much rather just get over being cautious. It's true that the economy is recovering, but before you go out and spend like it's 1999, know that we are in more of a transitional period than full-tilt prosperity, and you should spend accordingly. What does this mean exactly? The long and short of it is that you should still commit to saving, and at the same time monitor your spending to get an idea of where your spending. To give you an idea of some good financial strategies, here are some tips for surviving a transitional period:
About the Guest Author
Mariana Ashley is a freelance writer who particularly enjoys writing about online colleges. She loves receiving reader feedback, which can be directed to mariana.ashley031@gmail.com. If you are interested in writing a guest post, please contact PF Stock at the Email address listed in the sidebar.
- Balance your regular expenses with days that you don't spend any money at all. This means sacrificing designer coffee, fast food, movie theaters, random shopping sprees, at least once or twice a week. You can just as easily prepare a lunch and dinner at home—and, yes, brew your own coffee. As scary as this sounds, you might be surprised at how limiting your spending in this way can improve your relationships and your life: making dinner at home can be a romantic change from eating out, and will also improve your culinary prowess.
- Think about "the best things in life." The old saying tells us that the best things in life are free, but we all know that isn't really true. Houses, engagement rings, and cars (which are not themselves the best things in life, but do add to life considerably) are not free. If you are dreaming about a big purchase that will add to your collection of "best things," use that dream to help you control your spending.
- Take a good, hard look at your expenses. It's really easy to get into a pattern of spending without even knowing it. This isn't always a bad thing, but these patterns can be very expensive over a long period of time. Buying a pack of gum every time you're at the grocery, for example, or continuing to pay for that gym membership even after you've stopped going to the gym. Track your expenses for a month to see where you can trim a little fat and save yourself a little green. With as many money monitoring apps and sites as there are today, this should be easy.
- Make a focused effort at paying off debts. If you're still paying off school or credit card debts, consider consolidating them and paying a higher balance every month, instead of the minimum payment. The economy has more or less leveled out, and now would be a great time to attack your debt, so that when the economy recovers you can spend less guiltily (or if it does not improve, you won't have anything to worry about.
About the Guest Author
Mariana Ashley is a freelance writer who particularly enjoys writing about online colleges. She loves receiving reader feedback, which can be directed to mariana.ashley031@gmail.com. If you are interested in writing a guest post, please contact PF Stock at the Email address listed in the sidebar.
Friday, October 7, 2011
The Importance of Public Liability Insurance
The nature of the beast unfortunately means that cheap public liability insurance is not always the best public liability insurance. Of course, it helps to do your research, so you should always read every detail of the terms and conditions in every policy that is available to you before you go ahead and pay for one.
Image courtesy of Frosted Peppercorn
Policies that have similar or even identical prices quite often will not have identical terms and conditions. Indeed, the cheapest policies are cheap for a reason: because they are far less inclusive than all other policies. Every kind of business will need a different kind of public liability insurance to cover its specific requirements.
Public liability insurance is not a legal requirement for businesses, which means that the common trap that people fall into is thinking or, indeed, hoping that nothing will happen to customers or members of the public on their premises. In this case, as in many cases to do with insurance, it is far better and cheaper to be safe than sorry.
The potential costs of having to pay out of your own pocket for a claim that is not covered under an insurance policy are huge. Granted, insurance can be expensive on a monthly or yearly basis, but it will save you hundreds and possibly thousands in the event of a claim being made against your business.
Basically, public liability insurance covers you and your business against any kind of injury or illness that might be sustained on your premises by somebody not involved with your business. Such insurance is essential for a place like a pub, in which people can easily trip, slip or fall over a barstool or a spilt drink. Damage to a person’s property is also covered under most policies. A building firm, for example, would need public liability insurance to cover any potential damage that might accidentally occur to somebody’s house during a job.
It is worth reiterating here that some policies will not include certain cover for your particular type of business. Referring back to the previous example, a builder might regularly work at a height of above 5 or 10 metres, so he or she would need to specify such a requirement for cover in their insurance policy.
Depending on the seriousness of any possible claims, the potential ramifications of not having public liability insurance on your business can be devastating. In particular, if you run a SME, you could be at risk of bankruptcy if somebody files a serious claim against you, so it is not worth the risk. Bite the bullet and get insured.
Image courtesy of Frosted Peppercorn
Policies that have similar or even identical prices quite often will not have identical terms and conditions. Indeed, the cheapest policies are cheap for a reason: because they are far less inclusive than all other policies. Every kind of business will need a different kind of public liability insurance to cover its specific requirements.
Public liability insurance is not a legal requirement for businesses, which means that the common trap that people fall into is thinking or, indeed, hoping that nothing will happen to customers or members of the public on their premises. In this case, as in many cases to do with insurance, it is far better and cheaper to be safe than sorry.
The potential costs of having to pay out of your own pocket for a claim that is not covered under an insurance policy are huge. Granted, insurance can be expensive on a monthly or yearly basis, but it will save you hundreds and possibly thousands in the event of a claim being made against your business.
Basically, public liability insurance covers you and your business against any kind of injury or illness that might be sustained on your premises by somebody not involved with your business. Such insurance is essential for a place like a pub, in which people can easily trip, slip or fall over a barstool or a spilt drink. Damage to a person’s property is also covered under most policies. A building firm, for example, would need public liability insurance to cover any potential damage that might accidentally occur to somebody’s house during a job.
It is worth reiterating here that some policies will not include certain cover for your particular type of business. Referring back to the previous example, a builder might regularly work at a height of above 5 or 10 metres, so he or she would need to specify such a requirement for cover in their insurance policy.
Depending on the seriousness of any possible claims, the potential ramifications of not having public liability insurance on your business can be devastating. In particular, if you run a SME, you could be at risk of bankruptcy if somebody files a serious claim against you, so it is not worth the risk. Bite the bullet and get insured.
Thursday, October 6, 2011
Money Market Rates 10/11
Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:
1.00% Discover Bank Online Savings
1.00% American Express High Yield Savings
1.00% Urban Partnership Bank
1.00% ING Direct Orange Savings
0.99% Ally Bank Online Savings
0.80% HSBC Advance Online Savings
0.70% FNBO Direct Online Savings
0.45% Western FCU Money Market
0.25% E*TRADE Complete Savings
0.15% Chase Plus Savings
0.10% Citibank Savings Plus
In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.
Rates are believed to be accurate as of 10/5/11. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. At the request of readers, I added American Express and FNBO Direct to the list of institutions. Discover Bank, American Express, Urban Partnership Bank, and ING Direct currently have the highest interest rate of 1.00% among the banks that I'm tracking. By the slimmest of margins, Ally Bank Online Savings has dropped 3 positions in my list. This is because they have dropped their rate to only 0.99%.
At the very bottom of the list is Citibank. However, they do have a special promotion going on until the end of October where you can get either $200 or $400 for opening a new Citi Checking Account. Of course, there are a few catches to this offer. First of all, you are required to set up direct deposit, and need to make electronic bill payments for at least two months. The Citibank account offers a $200 bonus, and the Citigold account offers a $400 bonus. While not a requirement to receive the bonus, you need to keep $6,000 ($15,000 after December 9, 2011) in the Citibank account to avoid a $20 monthly fee. And $50,000 is required to avoid a $30 monthly fee for the Citigold account. In spite of these potential fees, this bonus offer might be worthwhile for some depositors.
It seems that the general interest rate trend is down. I was especially disappointed that the interest rates for Citibank and Chase were so low. Since I still have significant funds in these institutions, I think that it is time for me to consider moving some money around to other institutions.
So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.
DC
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1.00% Discover Bank Online Savings
1.00% American Express High Yield Savings
1.00% Urban Partnership Bank
1.00% ING Direct Orange Savings
0.99% Ally Bank Online Savings
0.80% HSBC Advance Online Savings
0.70% FNBO Direct Online Savings
0.45% Western FCU Money Market
0.25% E*TRADE Complete Savings
0.15% Chase Plus Savings
0.10% Citibank Savings Plus
In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.
Rates are believed to be accurate as of 10/5/11. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. At the request of readers, I added American Express and FNBO Direct to the list of institutions. Discover Bank, American Express, Urban Partnership Bank, and ING Direct currently have the highest interest rate of 1.00% among the banks that I'm tracking. By the slimmest of margins, Ally Bank Online Savings
has dropped 3 positions in my list. This is because they have dropped their rate to only 0.99%. At the very bottom of the list is Citibank. However, they do have a special promotion going on until the end of October where you can get either $200 or $400 for opening a new Citi Checking Account. Of course, there are a few catches to this offer. First of all, you are required to set up direct deposit, and need to make electronic bill payments for at least two months. The Citibank account offers a $200 bonus, and the Citigold account offers a $400 bonus. While not a requirement to receive the bonus, you need to keep $6,000 ($15,000 after December 9, 2011) in the Citibank account to avoid a $20 monthly fee. And $50,000 is required to avoid a $30 monthly fee for the Citigold account. In spite of these potential fees, this bonus offer might be worthwhile for some depositors.
It seems that the general interest rate trend is down. I was especially disappointed that the interest rates for Citibank and Chase were so low. Since I still have significant funds in these institutions, I think that it is time for me to consider moving some money around to other institutions.
So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.
DC
Need a fast cash loan? 60MinutePayday's payday loans online can get you cash right now!
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