Mandy: April 2009

Thursday, April 30, 2009

House Approves Credit Cardholders' Bill of Rights

No more interest rate hikes

The House of Representatives today passed a bill aimed at helping consumers who have credit cards. The bill does not apply to other types of credit, such as installment loans.

The Credit Cardholders’ Bill of Rights protects against hidden fees and interest rate hikes. The legislation passed by a wide margin, 357-70.

More benefits of the bill

The Credit Cardholders’ Bill of Rights also places restrictions the amount of late fees credit card companies and banks can charge. The measure also prohibits retroactive rate hikes and giving credit cards to applicants younger than 18.

Unfortunately, if these measures are approved they won’t take effect until next year. The bill now goes to the Senate. ABC News says its “prospects appear promising.”

No more double-cycle billing

The Credit Cardholders’ Bill of Rights also bans double-cycle billing. This practice is also known as “two cycle average daily balance.” Companies that use this method charge interest on the current balance of the card as well as the average daily balance from the previous billing cycle.

This practice is not used by all credit card companies. And, if the bill passes, it won’t be used by any credit card companies. ... click here to read the rest of the article titled "House Approves Credit Cardholders' Bill of Rights"

Pontiac: All good things must come to an end

The internet has made the world different

In the early days of the internet, I remarked to someone that the whole concept of a World Wide Web was amazing and I thought the world would never be the same once the internet was more developed. "I think that's a bit of an exaggeration," he replied. "It'll take more than that to change the world!" I wonder if he still thinks the world never changed because of the internet.

The world is about change

Now I am predicting that the world will never be the same after this recession. The world is always changing but the small changes are plastic and things return to where they were. But when there is major change, things never go back to where they were and we get used to living on some parallel course.

For instance, take Payday Loans, a concept that surely grew out of a need caused by a change in the times. From now on there will always be Payday Loans. That's change.

A world without Pontiac will be different

Here's another major change coming as a result of the recession. Remember the Pontiac, the once flagship of General Motors, the car known for its stylish sedans and sleek roadsters? Well they are about to be moved from the streets to the auto museums where our offspring can gape at them and say, "how could you drive around in a boat, Dad?" The Pontiac is one of the latest victims of General Motors’ struggle for survival.

Collateral damage

On Monday GM announced its plans for its 76th annual overhaul and service. This one will put 21,000 people out of work and bring about the death of Pontiac by the end of 2010. ... click here to read the rest of the article titled "Pontiac: All good things must come to an end"

Gradegov.com Lets You Fail Your Government Officials

Grade Gov creates a stir

If you’re trying to access www.gradegov.com, be warned that it may be a little slow. There are a whole lot of people trying to get in on the action. People are chomping at the bit to share what they think of their government officials.

But with a little patience, you can see which elected officers are making the grade and who is failing. Better yet, you can fail that guy you were ranting about last night or give your favorite member of Congress an A-plus.

An opinionated populace

The recession has hit home with a vast majority of Americans. The more people have to get short term loans, use credit cards or undergo mortgage loan modification to make ends meet, the more angry they become about the economy.

Now people who are angry because of losing their jobs or being buried in their mortgages have an outlet. GradeGov.com lets users write letters explaining their grades.

About GradeGov.com

The most surprising thing, to me, about Grade Gov is that it was created by an ex-elected official. The site’s slogan — “They work for you. Remind them” — does not sound like something a former Congresswoman would come up with. ... click here to read the rest of the article titled "Gradegov.com Lets You Fail Your Government Officials"

Congress Nears Action On Credit Cards

Legislation to rein in credit card practices and eliminate sudden rate hikes and late fees that have entangled millions of American consumers is getting closer to becoming law, bolstered by presidential pressure and the backdrop of economic calamity.

» E-Mail This » Add to Del.icio.us

Bank Shareholders Oust Lewis As Chairman

Bank of America shareholders have voted to separate the jobs of chairman and chief executive at the company. The move is seen as something of a rebuke of the company’s head Ken Lewis, who will stay on as CEO.

» E-Mail This » Add to Del.icio.us

Carnival of Pecuniary Delights #4 - A Little Definition

The carnival is still new, so I searched for the actual definition of Pecuniary and Delight. Here’s what I found on the web.

Pecuniary \Pe*cun”ia*ry\ (p[-e]*k[=u]n”y[asl]*r[i^]*l[y^]), a.
[L. pecuniarius, fr. pecunia money, orig., property in
cattle, fr. pecus cattle: cf. F. p['e]cuniaire. See Fee,
and cf. Peculiar.]
1. Relating to money; monetary; as, a pecuniary penalty; a
pecuniary reward. –Burke.
[1913 Webster]

Delight \De*light”\, n. [OE. delit, OF. delit, deleit, fr.
delitier, to delight. See Delight, v. t.]
1. A high degree of gratification of mind; a high- wrought
state of pleasurable feeling; lively pleasure; extreme
satisfaction; joy.
[1913 Webster]

So it sounds like the Carnival of Pecuniary Delights consists of money related articles from around the web with an emphasis on satisfaction and gratification. Now let’s take a look at the actual articles (and whether they actually know what the carnival is about :)).

Editor’s Choice

Penelope Pince from Pecuniarities presents The Library Card: Your Other “Rewards Credit Card”.
Ray from Financial Highway presents Investment Advisor's Conflict of Interest, an Insider view.
Jason Fisher from Improve the Quality presents Don’t Eat out Less.
CPF from Christian Personal Finance presents 6 steps to reducing credit card interest rates.

Personal Stories

Super Saver from My Wealth Builder presents Why I Pay Cash for a Car.
Baker from Man Vs. Debt presents Saving Money On Traveling And Some Mistakes We’ve Made.
Jeff@StretchyDollar from StretchyDollar.com presents Converting a Super-Spender to a Frugal-Saver.
J. Money from Budgets are Sexy presents Life Experiences Far Outweigh The Cost of Attaining Them..
Papa Boomer from Consumer Boomer presents Identity Theft-Capital One Saved Me.
NextRichGirl from Next RIch Girl presents A Frugal Anniversary Revisited.

Investing and Retirement

Madison from My Dollar Plan presents 2009 Roth 401k and Roth IRA Limits.
Jeff Rose from Good Financial Cents presents 7 Things To Know About Roth IRA for 2009.
The Smarter Wallet from The Smarter Wallet presents 5 Stock Sectors To Avoid In A Recession.
Matt @ StupidCents from StupidCents presents Biggest Investment in Life: College.

Frugal Living

Charlie from PayLessForFood.com presents How to Buy Bread and Bakery Products So Cheap You'll Think You're Stealing.
The Happy Rock from The Happy Rock presents Delayed Gratification Will Save You Money.
Greg Keene from Managing Money God’s Way presents How much does cable TV really cost?
Wojciech Kulicki from Fiscal Fizzle presents Saving Money When You’re Always in a Hurry.
Engineer from Engineer a Debt Free Life presents Does it really save electricity to turn off the lights when you know you are coming back shortly? An age old question. Here is the proof!.
Buck Weber from The Buck List presents Don’t Eat Out, Find a New Recipe.

Debt Reduction and Budgeting

Pinyo from Moolanomy Personal Finance presents Dave Ramsey's Debt Snowball.
PT Money from Prime Time Money presents A Plan to be Debt Free.
Dave from Do You Dave Ramsey? presents Budget Tool Overview.
kyle from Suburban Dollar presents Budgeting 101 - Set Your Budget.
B Simple from Simplified Financial Lifestyle presents Are you living a Financially Proactive or Reactive Life?

Recession and Employment

Peter from Bible Money Matters presents 7 Things You Shouldn’t Do In An Economic Crisis.
FIRE Finance from FIRE Finance presents Why do we get laid off? A complicated corporate work culture …..
FMF from Free Money Finance presents Should You Buy Stuff from People to Help Them Out Financially?
The Weakonomist from weakonomics.com presents 5 Questions NOT To Ask In A Recession.

Other

Silicon Valley Blogger from The Digerati Life presents Prevent Identity Theft: Some Credit Report Monitoring Services and Options.
Wren Caulfield from True Adventures in Money Hacking presents Macro Perspective: One Way War Keeps Poor People Poor.
Prune Danish from Frugal Luxury presents 7 Great Ways to Use Baking Soda.
Miranda from Bizzia Personal Finance presents Bartering Basics: Something for Something.
FFB from Free From Broke presents 9 Reasons You Need An Online High Interest Bank Account.
Fred from Online Banks Blog presents Online Banks - Time To Embrace Them.
mfd from My Findependence Day presents Failure Is Not An Option – How To Make That Goal Happen!.
Canadian Finance from The Canadian Finance Blog presents Home Buyers Plan (HBP).

—
Related Articles at Personal Finance Blog by Money Ning:

Extra Mortgage Payment

Since I was feeling rather more flush with cash than usual, I decided to make an extra payment on my mortgage this month. It was so easy! I have it set up for electronic payment from my bank anyway, and if I send them an amount that doesn’t match the monthly payment exactly to the penny, it’s automatically taken as a payment against principal. It took about 5 seconds to send them $2,000.

There’s always the debate as to whether it’s better to hang onto the cash if you have a mortgage at a relatively low interest rate. Right now, I feel like interest rates are so low for savings that paying something off on my 5.85% mortgage is a very good investment. The other issue is liquidity, but I have enough cash on hand right now to cover my expenses for about a year, so I’m not too worried about shifting this $2,000 into equity I can’t easily access right away.

Someone might argue that real estate values are going down and I’m just throwing good money after bad, but that’s only true if I went into foreclosure and walked away from my condo– otherwise, even if its value goes down, by paying off principal early, I have less of a mortgage balance to pay off, and will pay less interest over the life of the loan.

Another argument might be that I should put that money into the stock market– it’s been so battered lately that it may have potential for strong gains over the coming years. But I already put other money into the stock market. And who knows, the market could still go even lower. I don’t want to have all my eggs in one basket– even if paying off my mortgage could possibly be a lower rate of return, it’s also much lower risk, so it’s a good hedge against my other high-risk investing.

But really, the reason I want to pay off my mortgage early is so I can be like my idol, Frugal Zeitgeist!

Read more about Extra Mortgage Payment…

Q&A: Cashing In With Reverse Mortgages

The recession increases the appeal of having older homeowners borrow against their home equity. The loan doesn’t have to be repaid until the homeowner dies, moves or sells the home.

» E-Mail This » Add to Del.icio.us

Wednesday, April 29, 2009

Repair Your Credit | Be a Punctual Payer (Pt. 2)

Make a new plan, Stan

CLICK HERE if you missed the first part of this “Repair Your Credit” E-book chapter. Many of these tips seem commonsense, but if they are, why aren’t more of us practicing them in our financial lives? I think it’s because we can all use a refresher once in a while, particularly when it comes to fighting spending habits and the desire for instant gratification at the expense of all else. Debt relief comes primarily from good habits. Military loans or civilian payday loans come from emergency situations. With the right budget and good habits, here’s to fewer emergencies in your future.

Pay bills on time

Letting things slip doesn’t pay in the long run. Paying your bills each month on time and every time is crucial to establishing and maintaining good credit. It does not matter how big or how small the balances are, if payment is overdue by 30 days or more and is turned over to a collection agency, the incident will be reported to the credit bureaus and you will receive a penalty that will affect your credit score for the next three years. ... click here to read the rest of the article titled "Repair Your Credit | Be a Punctual Payer (Pt. 2)"

Repair Your Credit | Building Good Credit (Pt. 1)

Building and Maintaining Credit

Welcome back to the “Repair Your Credit” E-book. Last time, we talked about eliminating consumer credit debt and considering whether that last line of defense - bankruptcy - was right for you. This time, let’s talk more about you’re going to rebuild your credit without excessive use of online payday loans or credit cards.

Good credit, meed financial success

A big part of financial success depends on building and maintaining your personal credit. Everyone has a credit scored determined by the nation’s three leading consumer credit bureaus. I’m talking Experian, Equifax and TransUnion. The credit score is then used by creditors to judge your financial reputation and how likely they think you’ll be to repay the credit you’re petitioning for them to grant you. The higher your composite score - your FICO score - the better your financial reputation. You’ll have more opportunities to obtain goods and services through credit. Not only that, but you will receive lower interest rates and be able to borrow larger sums of money that someone with a lower credit score would, whether it’s for buying a car, house, business or anything e lse.

Establishing a higher credit score will also allow you to obtain a line of credit with your bank. This may sound the same as being able to borrow larger sums of money like I just mentioned, but there’s an added perk: you will have access to funds on a regular basis without prior approval. This type of credit line can be a life-saver for a small business, because it truly does “take money to make money.” ... click here to read the rest of the article titled "Repair Your Credit | Building Good Credit (Pt. 1)"

I wish I could get a payday loan

I'm a realtor in Marin County, California

I am painfully aware that that simple sentence may conjure up images of a shiny new Mercedes Benz parked outside a chichi Parisian-style café in the middle of the afternoon on a nice summer day in some swanky Northern California neighborhood. But that's a far cry from me. I'm one of the invisible Marin County realtors. There are a lot of us – members of the Association of Invisible Marin County Realtors. We work and we struggle and we wonder how in the world we eve r came to this. We wonder why we don't have real jobs, and we're constantly on the look for them. And we wonder how we're going to pay our bills.

I have poor credit and I don't have credit cards

I drive a 14-year-old Honda Accord. I rent a two-bedroom cottage. It's cute, in that California garden-court 1920s sort of way. But nothing works, not even the heat, and I pay $1750 a month. Yes, I heat the place with the gas oven. Yes, the landlord knows it doesn't work. Yes, I've had PG&E come take a look. Yes, yes, yes. And no, I won't push the issue. When you're living on the financial edge, you don't push your landlord. You lose your personal power and your self-respect when you struggle with money. Plus, in this part of the country, it's tough to find a place to rent, especially when you have a dog, poor credit, and a not-too-steady income. ... click here to read the rest of the article titled "I wish I could get a payday loan"

Baskin Robbins 31 Cent Scoops TONIGHT, 4/29

I scream, you scream

“The only emperor is the emperor of ice-cream.”

-Wallace Stevens, a fan of 31 cent scoop night

Do phrases like “tight economic times” and “we’re in a tough recession” give you the willies? Do “recession-busting” deals make you want to dive under the covers and read copies of Popular Mechanics or Sassy?

No? Good. Otherwise I’d start worrying about you. Because honestly, who can turn down a good deal, recession or not? Installment loans and short term loans are good that way. But if that deal includes Baskin Robbins ice cream on Baskin Robbins 31 cent scoop night, wouldn’t you listen? Wouldn’t your mouth water? Provided your aren’t lactose intolerant, you would lick down into that delicious icy palace of creamy-good flavors. Admit it. You can’t resist. Neither can the spare change in your seat cushions.

31 flavors, 31 cents

Nathan Olivarez-Giles blogs for the Los Angeles Times that Baskin-Robbins, known for their “31 flavors,” is dropping per-scoop prices to 31 cents tonight, April 29. The occasion - aside from fighting back the recession with smiling faces - is to honor firefighters for the amazing work they have done saving lives, the security they bring us and our homes and the hope future hook and ladder stalwarts will bring to society. ... click here to read the rest of the article titled "Baskin Robbins 31 Cent Scoops TON IGHT, 4/29"

Baskin Robbins 31 Cent Scoops TONIGHT, 4/29

I scream, you scream

“The only emperor is the emperor of ice-cream.”

-Wallace Stevens, a fan of 31 cent scoop night

31 flavors, 31 cents

Tuesday, April 28, 2009

The Bucket List

I just finished watching the movie The Bucket List and it really got me thinking about all the things that I would like to do before I die. I would really love to go skydiving. Feeling the wind on your face and the adrenaline rush would be awesome. I would also love to go scuba diving in Hawaii. I've seen pictures of the crystal clear water and the thousands of colorful fish; I really want to experience that in real life. I also want to do something amazing like find a cure for cancer or save someone's life. It sounds kind of conceded but I would like to leave this world knowing I made a difference to someone somehow.

Superpowers would be awesome

Wouldn't it be interesting if people started showing powers around their adolescence like in X-Men or the TV series Heroes? Would there be a vast amount of abilities or would it start out with just a few? How would society act around those with special abilities? Would we end up trying to find a cure for it or end up trying to lock them up because we would be afraid of them? What kind of ability would you want if you could choose? And would you use your power to do good or to accomplish your hearts desires? Basically it boils down to one question- Would you be a hero, or a villain?

The Host

I recently read the book The Host by Stephenie Meyer. I love the Twilight series by her and I've heard many mixed reviews about The Host, most of which were negative, but I wanted to see for myself how good or bad it was so I went out and bought it. I actually really liked it. It was a very entertaining story and had a wonderful love story in it much like the Twilight series. Once I started it I had a really hard time putting it down until I was finished. I just think that people didn't like it because they were trying to compare it to the Twilight series.

New Moon

I am so excited for the movie New Moon to come out in November. It looks like it's going to be so much better than its prequel Twilight. Twilight was pretty decent but it was really low budget and has some really corny acting and action sequences. It looks like they made enough money off of Twilight that they can spend more time with New Moon. I really hope that they spend enough time developing the relationship between Bella and Jacob and not rush through the movie till Edward comes back. It's an amazing book and I really hope the director stays as true to it as possible.

Chocolate milk is my favorite.

Not only is it chocolaty and delicious, but it's also healthy. It is a great way to teach children to drink their milk. Since calcium can't be built up anymore after one turns twenty, we need to drink a lot of milk as kids so that we can have strong bones. I love chocolate milk. Whenever I buy a gallon from the store, it is devoured pretty quickly. I drink it like I drink water. Give me a couple hours and it is gone. I think I am going to go buy some more chocolate milk tomorrow.

I am so tired.

I think I might fall asleep at the computer. I don't know why I've been so tired lately. I wish I had something to do to keep me from being tired. Every time I do more things, it makes me more tired. I think I might go take a nap later. There isn't really a reason for me to be tired. I don't really do much during my day. I need something to give me an energy boost. Maybe when I go running tomorrow morning, it will give me an energy boost. I can't wait to get some energy.

My mom is the best mom in the world.

She is very nice and patient and has raised a lot of children. I am sure that we all drive her insane. She is probably insane anyway. My grandma has schizophrenia, and I am sure that it has been passed down to my mom. She doesn't act crazy though. She acts as if she has raised 8 kids which she has. I feel so bad for her. She raised all these kids that don't appreciate all the effort she put into raising us. I still love her and hope she doesn't ever actually go crazy.

I'm not talking about drugs

Crack is the best treat in the world. I don't mean the drug crack. I am talking about a mix that we call crack because it is so addicting. Once you start eating it, you just can't stop. It is a mixture of Chex, almonds, sunflower seeds, and MnM’s with a sticky mixture drizzled on top of it. It is delicious. It is almost like sticky popcorn but with those things instead. Instead of being really sticky and hard, it stays really soft. It is the best thing that ever happened to me. I'm so glad I had it introduced to me by my sister.

So Confused

Last night I could not sleep at all. I tossed and turned all night long. This morning around six I finally just got up to go jogging. After I went jogging, I went over to my friend house and fell asleep on the couch. Apparently I began snoring very loudly, and my friend had this dream that there were these dogs making a whole bunch of noise. Apparently in the dream my friend kept kicking them to try and get them to stop making noise. Then they woke up and the noise didn't stop. My friend was so confused. Then they realized it was me snoring. I guess snoring runs in the family after all.

Repair Your Credit | Cut the Cards (Pt. 3)

Stop accruing debt

CLICK HERE if you missed the last part of this “Repair Your Credit” E-book article. Let’s continue to charge ahead and see if we can’t hit the bulls eye when it comes to getting your debt under control. Because cash advance loans and mortgage loan modification may be a temporary balm, but habits are what need adjusting in Gilead…< /p>

More on the credit card war

Cut those credit cards if you can’t stop yourself from swiping them! The first thing you must do to get those monster interest rates under control is stop increasing your balance by spending. Just say “NO” to instant gratification when it tries to slide plastic from eel skin. Many people have gone so far as to cut the cards up, but online purchases can be made as long as you have the card number, expiration date and CV2 code. Thus, willpower is in order here. Get away from using credit cards, but DON’T close the accounts. Why? Because it helps your credit rating.

If your credit report does not reflect any defaults at the moment, keep accounts open and work at paying them off (but not using them). That will have a great positive impact upon your FICO score. Try to keep only three to five credit card accounts open. If you have more, try to hold onto the ones with the best interest rates, but also consider this. Generally, the more unused credit you have available in relation to credit used, the better. Large limit cards with low interest rates are great to hold on to. ... click here to read the rest of the article titled "Repair Your Credit | Cut the Cards (Pt. 3)"

Payday Loans are Great Provided You Exercise Caution

Know what you are doing

Payday loans could be of great help during the current phase of the economic recession. When recession hits the economy, chances are that your source of income may start shrinking, making it difficult for you to manage your monthly expenses. During these bad times, you have reasons to feel worried because sources of financing from most avenues also dry up and you may land up in an acute financial crisis. But don't panic – history tells us that any economic downturn in the United States lasts for a limited period due to the cyclical nature of economy. To handle the crisis during this brief period, you can go for a payday loan.

Take what you can pay back

It is easy to get this loan, but this is a loan that you have to pay back on your next payment day. You would certainly like to use this option to your advantage, not to get into a debt trap, wherein you cannot pay back what you have borrowed on the next pay day. The bottom line is - you have to be careful if you decide to go ahead with this option. You need to assess your repayment capacity and limit yourself within this boundary. You have to carefully evaluate how many times you are likely to renew it, before you think you can manage without this loan.

How about cutting expenses?

The bad times are certainly not going to be permanent, but you do not know when things are going to turn around. In such uncertain times, it's not a bad idea to cut on your expenses, even if temporarily. Think before you buy - things that are not very essential at present had better wait, rather than being financed by a payday loan. If you carefully look at your monthly expenses, there will be many items that you can cut down during these tough times. ... click here to read the rest of the article titled "Payday Loans are Great Provided You Exercise Caution"

No Payday Loan for the Golden Years

Our waning hope

According to an April 2009 Gallup poll, for the first time this decade, a majority of non-retired Americans, 52%, doubt they will have enough money to live comfortably once they stop working. We may be able to solve our money worries today with a quick payday loan or a debt consolidation. But what about tomorrow?

Research shows morale is low

For 19 years, the Employee Benefit Research Institute has been conducting a survey of Americans’ plans for retirement. This year's poll, conducted in January, shows that workers’ and retirees’ confidence about retirement security is at a record low. Just 13% of those surveyed are very confident about having enough money to retire comfortably. That's down from 18% in 2008 and the record high of 27% in 2007.

Gee, that sure is surprising (if you're a troglodyte)

You'd have to be pretty reclusive to be surprised by these results. Do we really need a formal survey to find out just how much confidence Americans lack in the economy? Can't we get that just by eavesdropping on a random conversation in a local bar or a grocery store checkout line? And the reasons for our lack of confidence are painfully obvious.

We've been warned

For years we’ve been warned that we will not be able to retire on Social Security. We've been warned that the system will run out of money. Our only remaining confidence is that those hefty deductions will continue to be made from our paychecks. We've known for a long time now that our retirement income will need to come from our own resources. ... click here to read the rest of the article titled "No Payday Loan for the Golden Years"

No Payday Loan for the Golden Years

Our waning hope

Research shows morale is low

Gee, that sure is surprising (if you're a troglodyte)

We've been warned

An Introduction to Life Insurance

Many of you have asked for life insurance information, so Ray from Financial Highway offered to provide this guest post on the subject. This is new info for me, too.

Protecting your family from financial disasters is one of the fundamental components of financial planning. Life insurance should be a core part of that planning process. This article is a basic primer on life insurance, which should introduce you to the concept and give you an idea of how life insurance works.

What is life insurance?
Most people have a basic understanding of insurance. You receive financial compensation when an insured event occurs. Consider auto insurance, for example. If your car is in an accident or stolen, your insurance company provides compensation according to the terms outlined in your insurance policy.

On the surface, life insurance is pretty straightforward. When the insured person dies, the policy pays a prearranged amount to the designated beneficiary. The following parties are generally involved in a life insurance policy:

The Insured. The person on whose life the policy is based.
The Beneficiary. The person who receives the payment.
The Owner. The person responsible for payment of premiums. It is typically the insured, but it could be the beneficiary.
The Insurer. The insurance company that issues the policy promising payment.

Traditionally, both spouses have life insurance policies in order to protect their family in case one of them dies.

Why purchase life insurance?
The main purpose of any life insurance policy is to protect your family and loved ones against the risk of financial uncertainty. Life insurance can provide for the welfare of your family in face of your death. If you have a spouse, three kids, a mortgage, car payments, and credit card bills, what would happen to them if you were suddenly to die? Would your family have enough money to keep the house, car, pay off credit card debt, and send your children to college?

Life insurance can guard your family and loved ones from potential financial disaster.

Types of life insurance
While the idea of life insurance may be pretty basic, there are some complexities to consider. The most important point to remember is that there are several different types of life insurance products, which can make it difficult to select the right one for your family and your financial needs.

There are two basic forms of life insurance — term life and permanent life, the latter of which comes in several flavors. Here’s a quick breakdown of the basic policy types:

Term life is the simplest and (typically) cheapest form of life insurance. Term life is designed to provide coverage for a fixed period of time, such as 5, 10, or 20 years. The premium for the term policy is guaranteed for the duration of the term; if it is a renewable policy, the premium will increase with each renewal. The premiums for renewals are generally guaranteed when the original policy is issued. Because term life policy is for a specific period of time and the payout does not increase, the overall cost of term life insurance is usually very low.

The other three common types of life insurance are permanent policies &mash; they last for the entire life of the insured, not just for a fixed period of time.

Whole life policies, for example, are designed to provide you and your loved one with coverage until your death. Unlike term life, there are no fixed periods for whole life coverage. Whole life is sometimes referred to as “cash value” insurance because it builds cash value over your lifetime. Whole life coverage contains both investment and insurance components. The investment portion invests your premiums, earns interest, and accumulates a cash value. On the other hand, the policy also has a stated insurance coverage amount that is paid upon the death of the insured.

One of the most popular forms of permanent life insurance is variable life. Variable life policies allow you to invest your premiums in the stock market. While a variable policy may offer more significant returns, it’s also at the mercy of stock market performance. In a poor performing market, the overall death benefit/cash value of the policy may decline — but never below a defined level. As a result, the policy may be more expensive because you may have to pay more to keep the policy active because less money is available to cover the policy’s premiums.

Universal life is a popular option that acts like whole life. It is a renewable policy — the investment component, premiums, and death benefits can be renewed and changed based upon the policy owner’s needs. The policy owner has flexibility over the policy — money can be moved between the insurance and investment components of the policy. The premiums, unlike whole life policies, can be paid out of interest from the accumulated savings.

Life insurance: A great tool
Because of its many options and overall flexibility, life insurance can be a powerful tool in your financial planning arsenal. Consider that life insurance can be used to pay for funeral costs, college tuition, mortgage payments, debts, and more. It can also serve as income replacement — providing your spouse and family with a greater sense of financial certainty.

Remember, like all insurance policies, your coverage can lapse if you do not make timely payments. If you need help to cope with the complexities of life insurance, contact an insurance professional. You should also read the fine print closely (possibly with the help of your insurance professional) to understand if there are any limitations on the policy and what it covers.

—
Related Articles at Get Rich Slowly:

Monday, April 27, 2009

From Chef Jose Andres, A Family Favorite For $10

NPR’s “How Low Can You Go” family supper challenge asks celebrity chefs to cook a meal for four for less than $10. Jose Andres, who owns several Washington, D.C., restaurants and hosts the Made In Spain PBS show, makes a family favorite: Moorish-style chickpea and spinach stew.

» E-Mail This » Add to Del.icio.us

Jane Bryant Quinn

Everything you thought you knew about diversification is wrong. So is everything you thought you knew about portfolio risk. It took the meltdown of September and October 2008 to flesh out the story, but the plot outlines have been in place since the 2000 tech-stock bust.

Should I Buy Gold Now To Hedge Against Future Inflation?

Due to the current market conditions, many investors are wondering if investments in gold should be added to their portfolios to hedge against future inflation risks. In the video below (direct link), author Larry Swedroe discusses why he thinks gold is not an appropriate hedge against inflation, as well as some alternative investments.

The debate about gold will probably continue on for eternity, but I tend to lean towards his analysis because gold is too volatile for my tastes. I do like the idea of keeping some physical gold bullion as a hedge against economic collapse, but not as ETFs taking up a huge chunk of my portfolio. I would rather have something that would fit into traditional asset allocations plans, providing both stability and a good (but not perfect) hedge against inflation. So let’s explore the recommended alternatives:

In tax-advantaged accounts like IRAs, Swedroe instead recommends Treasury Inflation-Protected Securities (TIPS) which adjust with the Consumer Price Index (CPI). For this, I have bought shares of the Vanguard Inflation-Protected Securities Fund (VIPSX). I could buy individual funds directly from the government at no cost, but for now I like the simplicity. I even increased my allocation recently.

In taxable accounts, he recommends highly-rated municipal bonds with a relatively short average maturity of 3-5 years. For this, I am looking to buy shares of the Vanguard Limited-Term Tax-Exempt Fund (VMLTX). It is currently about 83% AA/AAA rated municipal bonds, and keeps a maturity of between 2 and 6 years (currently 2.8). The yield is currently a tax-exempt 2.12%, and it has a low expense ratio of 0.20%. If inflation does rise, the yield should rise to keep up.

I’m actually surprised he didn’t bring up commodities funds here as well, which I’ve seen him recommend as insurance against unexpected severe inflation.

Saturday, April 25, 2009

Payday Loans and Google AdWords make money

Pointers

I can give you a few pointers on how to make money using Google AdWords, and you don't have to go out and get payday loans to see it; this information is free of charge! Just think of how far you could increase your profit margin online by efficiently using Google AdWords. I'll provide some great tips to help your business and profits grow quickly.

The Money Making Process

With each new person who visits your website, you'll also have potential prospects to advertise your products or services to. As the years have flown into the new millennium, virtual- or online- advertising has increased business' sales exponentially. A big factor aiding online businesses in the achievement of profit gain in over 120% in the last 5 years is Google AdWords. It is a product so universal, so original, that it's the first of its kind in history!

How to Make a Buck or Two

Good AdWords allows online businesses to obtain instant marketing. It is as simple as setting up your ad campaign by signing up for an account at Google.com/adwords/. Within a few clicks, bang… your advertisement is presented in front of millions of potential consumers for only a few cents.

By highly targeting traffic to your website, you will learn how to generate more profits through Google AdWords. Never forget that driving highly targeted traffic to your website is the key for greater sales. Fortunately, Google AdWords can assist in this goal. ... click here to read the rest of the article titled " Payday Loans and Google AdWords make money"

Friday, April 24, 2009

Could Purchasing 'Instinct Diet' Save You Money?

A thinking woman’s diet

bookcover The web site for “The Instinct Diet” claims this approach to weigh loss is “the most science-based weight loss program ever designed.” More specifically, the Instinct Diet is psychology based.

The book by Susan B. Roberts, PhD, and Betty Kelly Sargent is on sale at Amazon.com for $16.47. I have researched the Instinct Diet to find out whether this book is worth the price.

Good reviews

In all of the articles I read about the Instinct Diet, and there were several, it got positive reviews. Women and Weight Website says the Instinct Diet will helps make weight loss less of a struggle.

On her web site Psychology Today, Roberts says:

The Instinct Diet “has been endorsed by more leading obesity scientists than any diet book ever-including researchers who’ve never before been able to agree on the same recommendations.”

How will it save me money?

The book is inexpensive enough that you probably won’t need a short term loan or even a credit card to purchase it. Because dieting generally causes people to eat less and to eat at home rather than eating out, you could potentially recover the money spent buying the book pretty quickly. ... click here to read the rest of the article titled "Could Purchasing 'Instinct Diet' Save You Money?"

Arbor Day Saves Money, Increases Property Value

Planting trees in a recession

For 13 years now, Arbor Day has been celebrated on the fourth Friday in April. Traditional observance of this holiday is to plant a tree. It’s also a good day to reflect on the environment, raise awareness and encourage green-living habits.

Most environmentalists recycle, reduce waste and plant trees on Arbor Day simply because they feel it’s the right thing to do. But did you know that going green has numerous financial benefits, too?

Saving green

Founder of the Arbor Day Foundation John Rosenow, in the Kansas City Star, says “challenging economic times offer unique opportunities to plant trees.” He also writes:

“Tough times provide an ideal opportunity to practice the spirit of Arbor Day, to add trees to the canopies of our cities and towns and to replant our nation's forests.”

So how can planting trees help individuals and cities avoid needing cash advance loans and debt relief? Planting trees is a natural, inexpensive way to reduce pollution because trees clean the air. They also clean water and mitigate storm water runoff.

Making green

It is also proven that trees increase property value. This is true of both residential and city properties. Cities that have more trees have higher property values overall, regardless of whether the properties themselves have trees. However, properties that do have trees generally are valued higher as well. Rosenow says:

“Trees are rare components of a city's infrastructure that actually increase in value and service over time. … History shows that when civic and national leaders make planting and caring for trees a high priority, it strengthens and adds value to the entire community.” ... click here to read the rest of the article titled "Arbor Day Saves Money, Increases Property Value"