How to Stay Afloat in a Changing Economy: the Ins and Outs of 401k's and Tax Audits
October 2008
By Lance Wallach
Government officials now expect 401(k) plan sponsors to conduct periodic due diligence reviews. With respect to their 401k or other retirement plans, the problem is that most sponsors (owners) do not have the in house resources to do so.
This is not something that 401(k) plans historically did. On the heels of the recent mutual fund scandals, though, Labor Department officials indicated that sponsors had a duty to periodically investigate plans and benchmark funds and fees.
Baby boomers are now retiring, and their 401(k) accounts often are their primary source of retirement income. A sponsor potentially could be liable for less than stellar 401(k) account growth if employees can claim that he did not meet his fiduciary duties.
Trusting the reputation of a major mutual fund company is not enough anymore. Sponsors must investigate and compare their plans to other programs at least every two to five years, as well as demonstrate that their plan expenses are in line with what others are paying. Blind trust is not prudent. You need a process, and you need to document that process.
Every fiduciary decision has to be made through a careful process. According to ERISA, the primary plan fiduciary is the sponsor, i.e., the employer.
Therefore, it is the employer's responsibility to ensure the prudent selection and oversight of plan vendors.
Sponsors must monitor vendors in two ways: micro monitoring, which should occur annually, examines plan features and services, while macro monitoring every three years or so allows sponsors to benchmark with competitors.
Smaller employers who comparatively lack resources and manpower find it difficult to monitor vendors to this extent. Thus, owing to ERISA provisions that compel bewildered sponsors to take on experts to help with due diligence, most small to mid sized plans will need to hire consultants.
There is potential liability if due diligence reviews are not conducted. Failure to engage in a prudent process may breach fiduciary duties, which may render the sponsor liable for damages. For example, if plan participants pay fees that are higher than the current market rate because the sponsor did not perform a review, that fiduciary could be liable for the higher fees.
But as long as the sponsor can prove he did a proper investigation, he can potentially shield himself from liability. The employer has to show that he engaged in a prudent process and that he made a reasonable decision based on that process. This applies to all retirement plans, not only 401(k) plans.
However, as the economy begins to falter, the risk of being audited becomes an increasingly higher risk. The IRS looks for some things on tax returns which make an audit of your return more likely. This includes putting too many zeros on a tax return. For example your are better off deducting $797 for charitable contributions than taking an $800 deduction. The IRS is looking to find people who guess, estimate, or make up numbers. An $800 deduction looks like an estimate or worse. A $797 deduction looks like you figured out the true amount of the deduction. When the IRS audits you they are looking to get money. If you have the exact numbers on your return they would not ordinarily end with a few 00. For business owners a good way to get audited is to take a low salary, having a retirement plan that has not been updated to reflect new laws, and having independent contractors, illegals, etc. as your employees.
Under new tax laws, accountants will be forced to report you to the IRS under certain circumstances There is a new $100,000 fine for accountants who do not report directly to the IRS on you if you deduct certain things. You can still put what’s called listed transactions as deductions on your tax return. But your accountant has to write, on their own, directly to the IRS and tell them about any listed transactions that are on your return. Listed transactions can include certain types of retirement and insurance plans etc. The IRS has recently made your accountant a tax policeman. For more on this see www.vebaplan.com
But, in these perilous times, there are a few creative ways to reduce your insurance or tax costs. Utilizing techniques such as HSA to reduce insurance costs and taxes, VEBAs to lower taxes, deduct succession and estate planning costs, insurance swapouts processes to limit insurance costs, 412(e) to obtain large tax deductions or life settlements to get paid for your life insurance without dying will be helpful when looking to save money. If you want to know how good your accountant is ask him how many of the above techniques he is using to reduce your taxes. By applying some of these techniques to your every day life, it will allow you to substantially reduce your taxes, more efficiently save for retirement, reduce your health insurance and life insurance costs and change the way you spend money. Websites such as FinanceExperts.org can help you plan your finances accordingly by finding experts.
Conclusively, the best way to stay afloat in this hectic economy is to be mindful of what your future entails. Planning ahead and being cautious are two ways to be audit proof your tax return certainly, and in terms of 401k retirement plans, picking the proper retirement fund will benefit you as the years pass. You want investments that don’t lose a lot of money and to deal with financial institutions that will still be in business in the future. Checking www.Taxlibrary.us may be a good resource and can help you educate yourself on the importance of various tax savings ideas.
Lance Wallach, CLU, ChFC, CIMC, speaks and writes extensively about VEBAs, retirement plans, and tax reduction strategies. He speaks at more than seventy conventions a year and writes for over fifty national publications. For more information and additional articles on these subjects, call 516-938-5007/935-7346. The information provided herein is not intended as legal, accounting, financial or any other type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.
Lance Wallach, pension & benefits, insurance & tax reduction expert. www.Taxlibrary.us
Article Source: http://www.ArticleBiz.com
2008/12/10
How to stay afloat in a changing economy: The ins and outs of 401K's & tax audits
2008/12/09
Few People Care To Understand Loan Terminology
By: Amanda Hash
Absolutely true. There are so many people who read the fine print believing they understand it all that it is surprising that there are not more defaults. Reading does not mean understanding all the financial jargon, purposely put to define and give a frame to loans, not to make you fall for them. If you do, it is your responsibility…
It Is Not All "Bull-jargon"
Fees have names that not always suggest what they cover. Underwriting, for example, may mean one thing to the unwary, but in finance it means the act of analyzing the information and situation of a borrower and determining the correct "package" or set of conditions for the loan he is applying for.
Escrow is the middleman, who takes care of all the procedures and handles the legal documents for a transaction and the disbursement of funds. Forbearance is the act of manifesting in writing, the lender’s will not to carry out legal action on a mortgage with missed payments.
So, Everything Has Its Meaning
A special term may suggest something to the profane customer and have a totally different meaning. Likewise, the fine print or small writing: Do not pretend you understand all it says, just out of not wanting to show your lack of knowledge. Whatever you do not understand, ask. Take a copy home and consult whatever you do not know or are not sure about, with someone who does know.
There are also expressions that complicate matters for you, the borrower. But then again, you are not expected to be expert loan agents. Just know what you are in for. Know what to expect during the term of the loan. Principally, what you are entitled to, whether it is a refinancing to change the duration or change the character of the interest rate from fixed to adjustable or vice versa. You must know what you are not allowed to do and what you are expected to do under certain circumstances.
Consider This
"Herein", "whereby", "hereafter", "inasmuch" and "hereinafter" sound so stupid to a profane ear. More often than not, they confuse people and even make them think it is the opposite of what they really mean. They are placed, so to speak, so that there will not be any misunderstanding… to a knowledgeable loan agent or an attorney. Not to us, simple beings. But then, if we do not know a word or expression, let’s ask, folks!
PMI
Private Mortgage Insurance is meant to cover only the payments that correspond to the portion of the loan up to 20% of the value of the house you are purchasing. It does not last the whole loan. So, it is important to know, that as from a certain date, you will not have that expense any more and that your lender is obliged to communicate this to you.
One thing that misguides even those who are supposed to be familiar with these matters is the APR. It is not what its name suggests. It means Annual Percentage Rate but it is not only the interest rate, but a set of fees added to the rate and proportionally distributed on a yearly basis. It is even confusing to the loan agents, sometimes. Does that make you feel better? Even so, do not be shy. Ask whatever it may be a dozen times. You will not get turned down for that.
Amanda Hash is an expert financial consultant who specializes in Bad Credit Loans and Guaranteed Approval Personal Loan. By visiting http://www.yourloanservices.com/ you'll learn how to get approved and recover your credit.
2008/11/03
How About a Credit Amnesty?
by: Robert Melaccio, Sr
Sound crazy well think again. That money is lost and it will impact the taxpayers of America like it or not. Zero, from zero is still zero. You can't get blood from a stone. So a Credit Amnesty will in my opinion stop most if not all of the litigation and it will put money back into the pockets of Americans NOW. Along with capping interest we can make an impact and help a turnaround ASAP.
How can we do this.
1- We take all the debt that will never be repaid, regardless of what they pursue, there is nothing to get from people. Ruin their credit, what credit and zero, plus zero is still zero. So allow those Credit card companies to get a write off over time. Sort of depreciation of the debt. That puts money into their pocket. They do this anyway and the debt is already insured for failure as we all know.
2- The card holder will not be freed of that debt but that action gives them X dollars immediately. Real cash as it become available to them and it keeps those who are now on the edge from falling over. Yes and it stops the calls, harassments, the legal activities and provides breathing room to pay critical and essential items like utilities, gas, food, rent.
Now people will say why reward default and I agree. No free ride. So while zero from zero is still zero and you can't get water from a stone I say once these people get back to work, or if they are currently working, they will be taxed a percentage of their take home pay, or from any year end return they may get. Lets say according to their outstanding debt on a scale basis until paid back to the American people.
Now settlements are made every day. Our government can settle with both, just like these Credit Card Companies and the IRS do for pennies on the dollar. That amount to be paid by the debtor over a fixed term depending and on age and with no prepayment penalty. In hardship cases it would be forgiven and written off, just like they do now.
They only credit a defaulted person will be eligible for is the deposit type until all is repaid. That credit can be with a fixed rate, limited fees, penalties and charges that will help families immediately.
Too simple, not simple, well like I said it is what happens everyday. If you want to get this nation moving credit wise you need to remove that bad credit debt as well and do it now. Destruction is not the answer and this action, like with home foreclosures, will make a real and immediate impact to all markets and investors alike. Yes especially investors who will get the tax benefit write off and the card holder who will be unencumbered and hgave money in their pocket.
Robert T. Melaccio Sr. 2008 Copyright ©2008 Robert Melaccio Sr
2008/10/30
A New Take on Bank Home Foreclosures
by Mark Walters
The real estate foreclosure process has become all too familiar to millions of homeowners. Did many of them make mistakes when they bought homes they could not afford? Did they find themselves upside down and were they forced to use credit cards to meet their monthly mortgage payments? Sadly, the answer for many of them was yes.
On the other hand, thousands of those middles class homeowners tried their best to find a way to head off a foreclosure. They made attempts to contact their mortgage holder to try to workout an extended payoff period. The problem was that thousands of other homeowners were trying to do the same thing and bank's loan mitigation departments were overwhelmed with requests for help.
Many facing foreclosure actually were able to find buyers for their homes if they could get the bank to agree to a short sale. Here again, the lender was so backed up with similar requests that the homes often went to foreclosure auction before a reply was received from the bank.
Lenders were forced to make business decisions that led to a complete breakdown of the real estate finance system. We won't waste time here pointing out that the genesis of the crisis was centered in Washington DC and a certain group of politicians.
With no where to turn who can blame many of the home owners facing foreclosure for just walking away from their homes. Some had the courtesy to drop their house keys into an envelope and send them back to the lender. That was so widespread that it became known as "jingle mail".
We would never advise anyone to walk away from a home just because they couldn't make the mortgage payment. Why do it? There are tens of thousands of foreclosed homes sitting vacant in the U.S. How many months do you think it will take lenders to begin asking people to vacate those homes?
There are not an army of buyers eager to buy homes. Banks don't have enough people employed to even make one visit to many of the homes they have acquired through the foreclosure auction process.
My advice is to stay in the home until you are asked to leave. Even then stall as long as you can. Congress is considering all kinds of giveaway programs and you might find that some type of rescue plan falls right into your lap. During the time you remain in the home you will be free of monthly payments. Begin saving every nickel for a fresh start when you are asked to move.
What about investing in foreclosure homes? There are plenty to choose from and prices have come so far down from peak-of-the-bubble prices that they all seem to be bargains. Recent figures show that home sales have risen slightly, but prices are still trending down… and there's the danger. Exactly what is the true value of a house today?
The U.S. is in for a few years of serious financial problems. What seems like a bargain today could be a buying disaster a few months from now. The long uptrend in home prices has been broken and it could be years before it is reestablished.
If you can buy banked owned homes by the dozen you may be able to get them so far below market value that you will be protected from any further drop in price, at least for awhile.
Another tactic is to have a plan that will allow the houses you buy to produce profitable income no matter what happens to values. One way to do that is to revert to the old fashioned idea of room rentals. Many workers will be losing jobs or taking employment at a greatly reduced earning level. They will need a place to live. You can generate more income by renting rooms rather than renting the home to one person or family.
The world is now living in a "bail out" economy. You must adjust to prosper.
About the Author
Mark Walters is a third generation real estate investor and founder of CreatingWealthClub.com. For a limited time Mark is offering his big guide to finding hard money loans for real estate investing free. Free guide to private money loans. http://www.FindPrivateMoney.info
2008/10/15
Have You Lost All Your Money Yet? You May Soon!
by: Lance Wallach
In the past few months many of us have received updates regarding the current state of our investments. Sticker shock would be an understatement. Thousands have been lost as a direct result of the fiasco occurring as of this writing. Savings that would not only enhance our future but in many cases investments that we would use for our children's educations are gone. The downward spiral will continue as the shrapnel from these events moves through out our failing economy. It won't stop in the foreseeable future.
And it won't stop with just obvious monetary losses. No not at all. The watchdog agencies will now have to redeem themselves at the expense of us being scrutinized in every manner imaginable. Trust me that no stone will be left unturned.
Treading water in the tide of an ebbing economy is not a solution. It would seem that the seemingly indestructible giants of Wall Street have begun to crumble. Lehman Brothers is no more, Merrill Lynch has been taken down a peg or two, and now, disaster is apparently looming over Morgan-Stanley like the Sword of Damocles. That's not to mention the looming threat to the consumer banking industry. As industry insiders, we've seen the writing on the wall for quite some time. Now everybody else can see it too.
The hopes of many investors in the stock market have been shaken to the core. A number of individuals are suffering potentially substantial losses of their hard-earned money in a volatile market. Consumers need advisors who can guide them toward a safe harbor. A good place to look for expert advice is http://FinanceExperts.org - The leading authorities in tax, law, finance, pensions and insurance are members of that organization, and you can be certain you will get the honest & educated advice you need right now.
Consumers are fearful, and if they say they aren't, it's probable that they aren't being honest. For most Americans today, a stress-free retirement is looking more and more impossible. But it doesn't have to look that way. A good first step to taking control of your financial future is to stay informed of the important tax, retirement & financial issues that affect you. You can read many published articles by financial experts for free at http://TaxLibrary.us
As previously mentioned, the veil has been pulled back on the stock market's heavy hitters. Consumers now know there is indeed no "wizard" behind the curtain, just a few individuals in designer suits pulling down astronomical sums of money for the advice they send down from on high. Who can forget the images of the Lehman Bros. employees in New York City , emptying their offices into boxes and carrying them down 7th Avenue ? As sad as a sight it was to see, it was a day we all had the feeling was coming, right? But now that it's here, why don't we feel any better?
In a word... we feel compassion. I know, to many in this industry, that is an incredibly dirty word. But we all feel it to some degree; be it for the out-of-work traders and brokers, or the investors who are wondering what is going to happen to their future, we all feel some concern. But when it comes to who will receive most of our compassion, my money is on the investors. We hate to have an "I told you so" attitude, but at times it is hard to avoid. But rather than dwell on this compassion, why not capitalize on it? Now is the time to circle the wagons around those struggling consumers, and save the day after all.
Lance Wallach, CLU, ChFC, speaks and writes extensively about VEBAs, retirement plans, and tax reduction strategies. He speaks at more than seventy conventions a year and writes for over fifty national publications. For more information and additional articles on these subjects, call 516-938-5007/935-7346, or visit Mr. Wallachs website http://VebaPlan.com
The information provided herein is not intended as legal, accounting, financial or any other type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.
2008/10/04
How Does Credit Card Debt Affect You
By:Steve Wilson
The statistics are overwhelming and continue to get worse each and every year. In today’s tough economic times it is anticipated that at least 1% or one in a hundred American families will be forced to declare bankruptcy at some point and that over 90% of an average family’s disposable income will be spent paying back debts.
While definitely not a positive picture, as bleak as that sounds running won't change it but knowledge may and so, let's take a quick snapshot at a few of the current credit card debt statistics facing so many Americans today.
American consumers spend over 1 trillion dollars per year on credit card purchases. The problem is not how much people spend using their credit cards but the fact that nearly 57% of all Americans do not pay off their balance monthly. Even more disturbing is the fact that 12% of all credit card holders only make the minimum payment on their credit cards.
This means that consumers end up carry and paying interest on about $500 billion dollars in credit card debt. This translates into an average credit card balance of $4,000 to $6,000 per family, who pay about $1,000 per year in interest. In reality many people owe considerably more.
On average many Americans receive at least one new credit card offer in the mail every week. The amount of money being spent by the banks and credit card companies to sign up new cardholders is immense Card issuers spend billions of dollars administering, and marketing the various aspects of the credit card industry.
There are very few individuals or companies who can escape the consequences of large amounts of debt. The burden place on the court system by record bankruptcy filings and the cost to government of providing subsidized credit counseling, are just a two examples of how unsecured credit card debt affects the country and economy.
Debt is becoming increasingly more common; consumers with excessive debt loads have far less disposable income. The more money that is used to pay off outstanding debts means less money is being spent which causes the economy to slow or stall.
It wasn’t very long ago that carrying any type of debt was considered unacceptable. The general view was if you wanted something you paid cash for it and only used your credit cards for emergencies. If you had bad credit it was almost impossible to get a credit card and your only option was to save up to make your purchase.
There are a number of reasons why consumer debt levels have reached dangerous levels, overspending is only a very small part of the problem. In reality, many people get over their heads in debt due to the loss of a job or using their credit cards to cover medical expense as result of an illness. As a result, many people end up trapped in a downward spiral of making payments on huge credit card debt levels.
Most people understand what they can afford and how important it is not to use credit cards to buy any and everything. High credit card debt is usually a combination of many things but the biggest problems result from leaving balances on their credit cards and not realizing just how quickly compounding interest and other service fees really affects their financial well-being.
Steveis a editor for Debt Assistance, A leading unsecured credit card debt consolidationwebsite that provides consumers with credit card debt and tax debt help and information. For more information please visit http://www.debtassistance.biz/
Source: http://www.articlealley.com/article_655395_19.html
2008/10/01
Frequent travellers now have no short term cash deficit
By: Lilly Lydia
In the past several years,due to the credit crunch, the number of payday loan lenders has sky rocketed. More lenders are active in this segment because of the profitable return rate on their short term loans. Since the service is so convenient, many companies have cashed in on the idea of payday to payday lending and accruing a huge return. However, the rapid growth in lenders has caused a stiff competition and the terms and conditions are now being relaxed.
Now, the borrowers just have to fill in an obligation free application form, preferably through the online mode. They are not required to send any of their documents through fax which thereby reduces their problems a great short term loan deal. With the online application for these loans the borrowers do not face any bulky paper work associated with the loan approval.
The people who need to go out of town very often for their work very often face the problem of shortage of funds. Funds may get exhausted for them and obviously they will not be carrying their documents with them to avail the short term loans when on the move. These borrowers can now take up the money they need through no fax payday loans. The people who are in urgent need of money and are interested in borrowing it can easily fetch it on the fulfillment of certain criteria like a regular job since the last 6 months, a regular place of employment since the last 3 months, a checking bank account since the last 6months, age of over 18 years and permanent citizenship of the UK.
Money is available to the borrowers in a range of 100- 1200 for the needs of the borrowers through the faxless payday loans. The money approved varies according to the monthly cash inflow of the borrower and his repayment ability. The borrower is required to repay the money with in a time period of 14-31 days. The day the salary cheque of the borrower arrives, the due amount is deducted from his account. Any personal needs of the borrowers can be fulfilled like urgent car or home repairs, gas or grocery bills, credit card bills, etc with the faxless payday loans. The borrowers with bad credit can also fulfill any of their personal needs easily as there is no credit check associated with the loan approval. Low rate deals can be obtained through online researching for these loans and comparing them. Comparison of multiple loan deals offered plays a great part in choosing the affordable deal.
With faxless payday loans, the borrowers can get the freedom of borrowing money even when they are on the move for business purpose. Money is approved very easily for them through online mode. These loans have grown in popularity ladder for years, and now this is the main short term financial tool of assistance to get you out of that sticky situation or get you that new luxury toy. Your transaction information is completely private in the online mode. What you provide to us stays with the lender only and none will ever know you took out a loan.
For more information about loans: Faxless payday loans , Debt Management , Obtain instant loans with ease
Article Source: http://www.ArticleBiz.com
2008/09/22
We Need to Know About Red Flag Compliance
By Carolyn Roome
This Act was created and passed by Federal Trade Commission and the National Credit Union Administration. This Act is call the Red Flag Rules requiring financial institutions and creditors to develop and implement written identity theft prevention programs, as part of the Fair and Accurate Credit Transactions (FACT) Act of 2003. The programs must be in place by November 1, 2008, and must provide for the identification, detection, and response to patterns, practices, or specific activities, known as Red flags, that could indicate identity theft.
The Red Flag Rules were made to protect our information and also keep identity theft from happening. Finding identity theft earlier, and taking proactive steps to stop the damage, this should lessen financial losses to these organizations and protect the consumer from becoming victims. It also places more burdens on the institutions implementing this program but will pay off in the long run. The company boardmembers must approve the identity theft prevention program and thereafter be involved directly, or through a designated senior management employee, in the oversight, development, implementation and administration of the program. In addition, the company must assign specific responsibility for implementation, train staff, audit compliance, generate annual reports and oversee anyone granted access to covered accounts.
Who do the rules apply to?
The FTC says that financial institutions and creditors that offer or maintain covered accounts must implement a red flag rule program. Red flag rules apply to financial institutions and creditors like banks, credit unions, auto dealers, mortgage brokers, utility companies and telecommunications companies. Credit reporting agencies are exempt from the red flag rules, but at least one, Experian, is getting involved at some level. Experian hosted a red flag rules Web seminar in February that attracted more than 700 clients.
The Red Flags they are using for our protection are: Alerts, notifications or other warnings received from consumer reporting agencies, notices from consumers, victims of identity theft or law enforcement officers, suspicious documents such as forgeries or a photo description that does not match a person, suspicious personally identifying information (e.g., inconsistent or mismatched addresses, Social Security numbers, etc.); and other events that indicate a likelihood of an occurrence of identity theft.
The flags that are known in the identity theft prevention program must: Identify red flags requires review of the types of accounts offered and maintained, the methods used to open and provide access to the accounts, and any previous experience with identity theft.
Detect red flags requires obtaining identifying information about, and verifying the identity of, persons opening covered accounts and having a process to authenticate customers, monitor their transactions and verify the validity of change-of-address requests.
Respond to red flags requires appropriate responses that prevent and mitigate identity theft. Examples include monitoring covered accounts for evidence of identity theft, contacting the consumer, changing passwords or security codes, refraining from collecting on an account or selling it to a debt collector, or notifying law enforcement.
From what I see here we are getting protection from Identity theft but are paying the price of having every purchase and credit inquiry looked at, we are losing some of our privacy in order to be protected from this problem. In all I think they are trying to fix the problem and keep the financial institutions and us as a consumer lastly, from being victims from this wide spread problem. We need to look for that little red flag starting November 1, 2008 and use those companies and institutions that are compliant with this Act.
For those companies that would like more information, such as mortgage brokers and any small company that takes credit. Please call me for more information.
Carolyn Roome
303-816-7112
http://getyourlifebackonline.com
http://mountaingirlllc.com
Credit Repair 100% money back guarantee! $500.00 No Monthly Fees, No hidden charges.
Article Source: http://EzineArticles.com/?expert=Carolyn_Roome
2008/09/20
What is Mortgage Protection Insurance Anyway
This a big buzzword for many insurance companies out there. But basically all in all it is life insurance. Plain and simple. The only difference is, if you have had a major life event in the last 13 - 18 months, with some carriers, you qualify for what is called simplified issue. That means that normally no medical exam is required to get insured.
What is a life event? Well, that's where the "mortgage part" comes in. A life event is a birth, marriage, divorce, mortgage purchase, or mortgage refinance. Therefore the name Mortgage Protection Insurance. It could just as well be called Birth Protection Insurance, Marriage Protection Insurance, or Divorce Protection Insurance. But as you can see those titles lend themselves to some...well...questionable market positioning.
It is just a fancy name for a term life policy with a death benefit in the amount of your mortgage. That way if you die, the house gets paid and the wife and kids get to stay there now that they have lost your income. I know that sounds a bit morbid, but hey, that's life insurance. And even if it is a divorce, it still fits. After all, if you are the one leaving the home, those are still your kids. Touchy subjects, death and divorce. But then again, so is homelessness.
Now, you might say "but I already have a life insurance policy." Great! That's a good thing, but let us say you have a $1,000,000 whole life policy. And let's say your mortgage is $250,000. And lets say that your income is $120,000 a year. That million is going to last a little of 8 years by simple math. Well, if your wife or husband or kids use the policy to pay off the house so that they can stay there after your death, the time just got cut to 6 years.
Bottom line, because of the fact that you just bought a house, had a baby, got married, divorced or refinanced, you get to apply for that extra security of leaving your family with a roof over their heads and no reason to dip into what you planned to leave them for replaced income. And you get to have it simplified issue.
As an added bonus, you can set it up with what is called a Return Of Premium rider. Basically at the end of the term, if you are still alive and kicking, you can get your money back. Think of it as a savings account with death benefits.
Listen, the last thing I like to talk about is my own mortality as well. But the fact remains. It truly is the debt that all men pay. So, if you are interested in protecting your family against an untimely repayment of that debt and the loss of your income, you'd better do it while you have the chance to do it easy. After a while, you don't get a choice. Later on due to age, illness, or injury, you may not even qualify to receive life insurance at all. Simplified or Non-Simplified.
I'll give it to you straight. There are other ways to insure your family's financial future. Investments, 401Ks, CD's, and even annuities. All of which are geared towards the hopeful eventuality that you live. Life insurance is there in case you die. Both sides of that fence are recommended. Unfortunately most people don't look at the dark side. If you are one of those, don't keep pretending it is not there. Do something about it.
Michael Lynn Graves
Article Source: http://EzineArticles.com/?expert=Michael_Lynn_Graves
2008/09/14
Path Of Financial Stability Is Facilitated With Small Personal Loans
By: Gracy Bonsu
In the loan market of today, more and more borrowers are trying their hands on payday loans which are better known as small personal loans. These type of loans can be availed by anyone who has a regular income, is above the age of 18 years and has an existing saving or checking account. The payday loans can be availed by any prospective borrower who is trying to arrange funds to meet his or her personal financial needs such as vacations, debt repayments, educational expenses and medical emergencies.
In the UK loan market, an unprecedented change has been noticed in the financial demands placed by a huge majority of the Britons. Earlier, almost 95 percent of the loan borrowers used to take loans to meet their immediate financial needs or to support their financial matters but now more and more loan borrowers in the UK loan market are being granted for reasons such as home renovation, vacations and buying an tangible asset. These small personal loans are a huge hit with the loan borrowers as the loan amount can reach them in just a matter of one day. This obviously means that the individuals in need can handle their urgent needs on an immediate basis.
The payday loans have reduced, if not eliminated, the concerns of all loan seekers to a considerable extent. Gone are the times when an individual with dire financial needs has to seek the immediate intervention of his family, friends and relatives to help him overcome the financial crisis. This caused great embarrassment for the individual seeking the help and was used to be nothing short of financial embarrassment to say the least. But, not any more. With these small personal loans at his side, no borrower has to be dependant up on anyone else, he can use his own financial credibility to get financial help from a lender at low rates of interest.
A prospective loan borrower, however, needs to be extra-cautious when it comes to availing the payday loans as there may be times when a profit-motivated lender places some terms and conditions attached with the loan. These terms and conditions are usually overseen by the borrower who is pretty much occupied with the loan amount, rate of interest and early loan grant. But, these terms and conditions often land him in a state of utter misery and this is a time when he thinks that perhaps a careful study of the same could have helped him. So, it is highly advisable that there must be no rash decisions while making a loan application. The borrower must act in good faith and must disclose all material facts to the best of his knowledge and abilities.
All the things pertaining to these loans must be properly documented and not just recorded on a verbal or informal basis. Expert advice before applying and placing consent for obtaining loan must be taken as that could help to avoid future repercussions.
The greatest source of information on these type of loans is none other than the World Wide Web. A prospective loan borrower can seek answer to all his queries to satisfy himself with the loan deal. In addition to that, he can also get the discounted loan deals besides getting some bargains in terms of repayment amount and favourable loan terms and conditions.
For more information about loans: Small personal loans, Bad Credit Loans, Helping you to avoid the financial catastrophe
Article Source: http://www.ArticleBiz.com
2008/09/13
Income Protection Insurance Cover Against Unemployment and Incapacity
Income protection insurance cover is taken out to safeguard the possibility that you could become unemployed or incapacitated at anytime. If you lost your income you would have to make drastic changes to your lifestyle in order to be able to continue paying all of your essential outgoings. One of the most important of these would be your monthly mortgage repayments as arrears leads to the lender taking you to court and seeking possession of your home.
Your policy would allow you to insure up to a certain amount of your own income and this is set out by the provider. You need to check this along with when the cover would begin to pay and when it would end. Some policies could state that you receive a payment after just 30 days and others could ask that you wait for as long as the 90th day before you put in a claim. The same would apply to how long the cover would provide you with an income for. Some providers could allow you to recover with peace of mind for 12 months and some providers might allow you 24 monthly payments. Once the period has been reached then the policy would simply cease and it is assumed that you would have recovered and gone back to work or found work again.
Income protection insurance cover would allow you to be able to pay more than just your mortgage repayments. You would also be able to keep up with any other essential outgoings which could include loan repayments. Being able to meet loan repayments is essential if you are to keep your credit rating on form. Your credit rating is the first thing taken into account when lenders look into deciding whether or not to take a risk on you. It is common sense that if you have a poor rating due to missed loan repayments that you are more than likely to be turned down. Even if you do manage to get a lender to agree to give you a loan you would probably have to pay over the odds for the rate of interest and might even have to take out a bad credit loan.
You would also have to check to see what exclusions there are in income protection insurance cover as some have more than others and these are set out by the provider. There are exclusions in all payment protection policies but some of the ethical providers add in just the bare few. The exclusions are what can stop you from being able to put in a successful claim on the policy. This was highlighted in 2005 when the Financial Services Authority revealed that policies had been mis-sold. While this referred mainly to loan payment protection, all policies were tarred with the same brush which led to mistrust and a decline in taking out all forms of protection. Providing you had read the terms and key facts and are aware of the exclusions and checked them then cover can and does work as it is supposed to work.
About the Author
Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of income protection insurance cover.
2008/09/10
Shocking News! These Insurance Marketing Techniques Simply Don't Work Anymore?
Insurance marketing techniques as well as insurance market solutions is a very big subject today. Especially in an economy like today.
Because Insurance agents are scrambling to keep their agency afloat. And insurance agents are willing to do just about anything to survive. But, although the old insurance marketing techniques like its Just a matter of calling on enough people used to work, but that was a looong time ago. And those insurance marketing techniques simply do not work like that anymore. Yet, today, too many insurance agents are still using this old insurance marketing for several reasons.
First, you know the saying if you are good with a hammer everything looks like a nail.
And the second reason is perseverance is one of the most admirable traits in all endeavors. Think about it.
We love to watch the Olympic athletes push themselves to - and then beyond The Limit. And Mother Nature provides some of the most astonishing feats of perseverance for example when you think of the salmon fighting upstream or even up water falls.
Insurance Marketing Tip Discovered While Watching A Fly?
Yet, at what point is it that the perception or guise of perseverance become out right foolishness? At what point should insurance agents realize old insurance marketing advice and marketing techniques don not work in a new agency economy? Maybe agents should take a valuable marketing lesson from a fly. Here is what I mean.
We have all witnessed what I will call The Death Fight of The Fly This is when the fly is fooled by the perception that a glass window is not really there. So the fly demonstrates incredible perseverance and repeatedly, incessantly, persistently, almost loyally, hurls itself again and again up against the window PAIN (spelling selected on purpose) and often until it is exhausted and dies of fatigue.
FACT: No matter how valiant the effort made by the fly the bottom line is the barrier is not going to yield. EVER.
Often, observation of this ritual makes you think the fly is just not that bright. Right?
Be careful.Here is why I say that.
After more than 20 years in this great industry I have witnessed a very similar death flight by many agents who persevere and persistently continue to attempt to do the same marketing and getting insurance leads that used to work and despite the obvious fact it no longer works, Yet most insurance agents seem to prefer to continue to hit their heads against the window PAIN as if never knowing that regardless of the efforts made they will never make it through the barrier.
Most insurance agents are getting caught up in the business of BUSYness and would rather point the finger at the outside forces they can not control and blame others instead of evolving and adapting to the new insurance world that we live in.
Tough words? Yes, but we operate in tough times. I'm not giving you hell. I am simply giving you the truth. It is just that sometimes the truth feels like hell.
Think about this. The old insurance marketing techniques worked only because back then the average person was not getting bombarded by over 3,000 marketing messages per day! Now that is a lot of clutter!
If you want insurance marketing techniques and advice that works today you must have a systematic manner of breaking through the clutter because the clutter is a real barrier and the absolute best and proven way to break the insurance marketing clutter of today is with MULTIPLE INFLUENCE CHANNELS(tm) (MIC) and not just the typical one strategy approach and continually hitting your head up against the window pane just like a fly.
Using Multiple Influence Channels(tm) or MIC amplifies your insurance marketing messages over and above the competition. There are several proven marketing principles involved when using MIC, but one quick one is to use several ways to communicate with the prospect as well as allowing them several modes to communicate with you.
A marketing drill for you to do.
Think about how you are currently trying to break through the clutter to get to your targeted audience and ask yourself. Am I doing exactly what everybody else is doing and if so why would my prospect want me over any other choice? And then ask yourself, what other new insurance marketing techniques can I develop and implement to break through and get my marketing message to my insurance prospects?
Warning. Do not be different for the sake of being different, but be different with the purpose of adding value to your prospects.
I hope you have found this information useful and thought provoking and more importantly I hope it sparks you into accurate actions.
About the Author
To get a FREE GIFT Plus the Bombshell Controversial Conspiracy Report that all of the insurance agents are talking about please go to http://www.InsuranceMavericks.com right now.
2008/09/07
The Shocking Truth About Money and Banks!
If I were to lend you 100 pounds, I would take the physical money out of my pocket, or the bank. I might even write you a cheque. The key point though, is that I would have had 100 pounds, then, when I lent it to you, I wouldn't have it any more. If I lend you a hammer, I would first have to have a hammer, then I could give it to you and you could use it.
So, it would make sense then that when a bank lends you some money that it takes money that it has in it's vaults (or at least on it's books as most money doesn't now actually exist in physical form, It is just numbers in a computer.) and hands it over to you. To compare it to the example of me lending you 100 pounds, the bank would first have had 100 pounds with which it could do as it liked. Then, it would give that money to you and so, wouldn't have it any more. The bank would be 'missing' that 100 pounds until you paid it back.
Obviously, that is the only way it could work and it is the way that it must work. WRONG! That is the only fair way that the system could work. If someone is going to lend you something, they must have that thing first. The Government creates money, the banks have large supplies of it because people deposit their money with them and the bank then loans it to you in order to charge interest. This is the way that most of us have assumed that it works and we have never been taught otherwise.
The truth is far more shocking and is actually so unbelievable that I don't expect you to take my word for it. I am going to provide you with links to more information so that you can learn more and prove to yourself that this is how it works.
When a bank lends you money, it creates that money out of thin air! Yes, you read that correctly. Before you ask to borrow some money, that money doesn't exist. When the bank agrees to your loan, it simply conjures it into existence and gives it to you. The bank hasn't built, grown or created anything of value but it still gets to charge you interest on that money that it simply created.
This system is almost exactly the opposite of how you would think it should work. When the money is loaned out, it is created and when it is paid back, it ceases to exist as it is written off the bank's balance sheet. The bank gets to keep the interest on the money that it made up though! This poses a big problem for everyone because if all the money is created like this (which it is) then where does the money to pay the interest come from. Have you ever wondered why we have inflation?
I could keep going all day with this but there is a great video that explains all this and what you can do about it. There are also links to find out more from independent sources and to see evidence if you still don't believe.
Philip McClarence has extensive experience in Finance, debt and money. Visit his website Debt Consolidation Non Profit to learn more.
Check out the video here: Where did the national debt come from?
Article Source: http://EzineArticles.com/?expert=Philip_McClarence
Personal Loans For Unemployed: Avail the cash when you are unemployed
By: Gray Smith
The condition of the unemployed people is awfully cruel because in the unemployment the people don’t complete you’re due to hard up. The demotic credit agencies don’t allow to the unemployed people to apply for loan due to many reasons, such as the unemployed people don’t have any source of income; and don’t have own property to place the loan. Besides this source they don’t have any other option to avail the loan. It’s mistake for them that they don’t have any source of income to obtain the cash.
Many lenders or the credit agencies deal out the Personal Loans For Unemployed to the people who are unemployed. As a result Personal Loans For Unemployed enable to the unemployed people to apply for Personal Loans For Unemployed. The Personal Loans For Unemployed is especially profitable and assistance for the unemployed people. By availing the Personal Loans For Unemployed they can purchase new home; and other uses of Personal Loans For Unemployed like paying the treatment bill, electric, phone bill, pay off the last debt, wedding expenses etc. If the unemployed people don’t have any private source of income, they can establish own new business.
The most impotent thing of Personal Loans For Unemployed that the unemployed can get Personal Loans For Unemployed in both forms secured and unsecured Personal Loans For Unemployed. In unsecured Personal Loans For Unemployed the borrowers don’t need to pay the asset stand for this loan. Excluding for this loan the borrowers have to pay slightly high rate of interest. In the refer of secured Personal Loans For Unemployed the borrowers can avail the cash with the cheapest rate of interest. Excluding for this loans they have to submit co-signer or collateral in the place of cash. Unsecured Personal Loans For Unemployed can prove useful for loan amounts from $500-$25,000.
The secured Personal Loans For Unemployed can offer loan amounts from $5000 to $75,000. The withdrawal period of secured Personal Loans For Unemployed is from 7 to 15 years; and for the unsecured Personal Loans For Unemployed the payback period may slightly less to compare secured Personal Loans For Unemployed. That’s why Personal Loans For Unemployed is very profitable sauce for one and all to generate the cash.
Gray smith has done his master in finance and now he is an expert in finance and insurance at loans4unemployed .com to find Unemployed loans, Student loans for unemployed and bad credit, Personal Loans For Unemployed, Cash Loan For Unemployed visit http://www.loans4unemployed.com
Article Source: http://www.ArticleBiz.com
2008/08/31
Financial Inequalities - Is it All Your Fault?
The goal of every financial manger is to create value to the providers of finance. Value is represented by the general well-off of an individual which, in turn, is a function of the individuals' Investment, Financing and Personal reward decisions taken. What is your goal? Are you creating value for your provider if finance (you)? Many people always look for what I call "the whooping object" to lay all their financial blames on. They think it is the responsibility of the government or the company they work for to take care of their finances. I am here today to tell you that the financial imbalances/inequalities you are experiencing is all your fault.
Below are some of the reasons you are struggling financially and tips on how to overcome them.
(1) Breaking of natural Law: Investment is one natural law that is so powerful that God Himself could not ignore it. Oh come on; He invested His breath in you before you came into existence. You see, you cannot expect result when you have not made any form of investment. As important as this is, many people especially those that has phobia for figures. Accounting or some figure crunching discipline has nothing to do with your investment decision. You have to first of all make up your mind to invest then look for an investment analyst to do the investment appraisal for you. In our world of today, you don't need to know anything about anything before you can get the benefits that accrues to it. Simply look for a person that has the expertise and you are there. Again, the most important thing is to have a strong desire to do whatever you want to do in the first place. Do you want a fulfilled and bright tomorrow, then make INVESTMENT TODAY, CALL that financial/investment analyst that live on your street today.
(2) Cheap advice: Talk is cheap but only on casual basis; quality talk is not cheap nor free, in fact, there must be a price attached to it. can you take legal advice from someone with Engineering background and into some legal problems? If no is your answer, how then do you take financial advice from people who are not experts in regard. Formal training in any TECHNICAL and SPECIALISED area cannot be substituted with intuition or hunch. This is one of the reasons that people who are supposed to be doing well financially always struggle to make ends meet. Listening to quarks on financial (or any specialised) matters is like letting a blind man lead you when you have problem with your sight. Check out all the successful people in our society, you will discover they all have one thing in common; they hire the best financial expert they can lay their hands on (they also do same on all other facets of life, but our focus here is on finance)
(3) Unnecessary Delay in taking action:This can kill even the soundest idea. In fact, this is another reason why many people go unfulfilled in life when they would have been better-off if they had taken action. For instance, Many people postpone the date to start saving and investing to the extent that they eventually don't do anything about it. That will perfectly introduce us to the next reason why their is so much financial inequalities in our society.
(4) Lack of saving culture: I know you will be wondering why i have left out this point till now, well, the answer is simply that "good financial advice from your financial analyst will guide you through fund raising even when you don't have. Yes! you heard me right, "as important as saving culture is, one can still invest in sand project without having to save a dime towards the project".
In conclusion, investment based on good financial advice will surely kick out financial inequalities our society.
Author
Okwuduche Chinweike is an accountant who found joy in helping people come out of the shackles of demotivation. This he does at http://www.accountantnextdoor.com
You can also meet him at http://www.motivationmotive.com for the right kind of motivation needed to acheive desired results.
Article Source: http://EzineArticles.com/?expert=Chinweike_Okwuduche
2008/08/24
Tax Benefits and Home Ownership
By: Anita Koppens
Tax Deductions for Property Owners Include Mortgage Interest Write-offs
Mortgage interest deductions are the ultimate tax benefits for homeowners, considering that unlike tenants, homeowners are permitted to deduct all mortgage interest unless their home loan is also an unsecured personal loan. Interest paid on personal accounts including credit cards, car loans and other personal loans is not tax deductible, although the interest paid on student loans typically is. First and second residential mortgages, as well as home equity lines of credit, qualify real estate owners for tax write-offs for interest paid.
Real estate owners with two properties can take deductions for mortgage interest on both
Owners of two or more properties may take mortgage interest tax deductions on their primary residence in addition to tax write-offs for interest paid on a secondary home that includes cooking, toilet and sleeping facilities. Your secondary mortgage interest deductions can be for a detached home, houseboat, condo, townhouse, mobile home, trailer, patio home or cooperative apartment. Owners of more than one second home may only deduct interest from the first and second properties and not from the other ones. Luckily you can change the second property you deduct interest from in any given year.
Tax write-offs for mortgage interest call for specific forms
You will need two documents to receive the mortgage interest tax deductions. The first is a 1098 form, also named a Mortgage Interest Statement, which your lender mails you by the year's end. The second is a Schedule A form, where you detail all the itemized deductions you are expecting to claim. You can get the numbers for finishing the third section of the Schedule A form, which is the portion for mortgage interest deductions, from your 1098 form. The maximum home mortgage interest deduction can be written off a home mortgage of no more than one million dollars, or $500,000 if you're married but filing separately. If you plan to take mortgage interest tax deductions on two homes, the sum total of the two mortgages added together must fall within these limits.
Circumstances including home sales, prepaid interest, mortgage prepayment penalties, divorce and late payment charges can vary the qualifications and necessary conditions for mortgage interest tax deductions. If you have any questions about tax write-offs for interest paid, you must confer with an accountant to make sure you meet all the legal requirements for these itemized mortgage interest tax write-offs.
Mortgage interest tax deductions can also apply to rental homes and commercial properties
The majority of the mortgage interest you pay on any rental or commercial properties can typically be written off too. Tax write-offs for investment properties or home-based businesses are more involved than tax write-offs for interest paid on a primary residence, considering you can take advantage of tax deductions for operating expenses in addition to mortgage interest and property taxes. To qualify your second home as a rental home, you need to spend fewer than 14 days per year living there, and less than 10 percent of the time that it is available for leasing. You can also take operating expense tax write-offs for a business property, whether your business is based in your home or somewhere else. Operating expenses for business properties include maintenance and repairs, travel costs, depreciation and management expenses.
Wylie Homes for Sale
Article Source: http://www.ArticleBiz.com
2008/08/12
How to Improve Your Chances For a Loan
By: Daniel Millions
As you are no doubt aware, the financial climate has changed considerably in the last 18 months and as a result people are realizing that cheap and easy credit is far more unlikely now then than before. Credit lenders are tightening up the criteria for acceptance on loan and mortgage applications and interest rates continue to rise.
With this current situation, many people are looking for advice on how to get a loan. They want to know how they should approach their bank and also what can they do to improve the likelihood of getting the loan. This article will present some useful tips that you can use before approaching a bank or other financial institution about applying for credit. The aim is to give you the best chance of getting that loan.
The first step you need to take is to find out what your current credit status is. All banks and financial institutions will make lending decisions on the basis of credit scoring. This score will help to determine whether credit should be issued or not. In the United States this information is held by two agencies known as Experian and Equifax. You are able, usually for a small fee, to access these records to check what your credit status is. This is important to check even if you feel that your credit is good. There could be a clerical error against the record or perhaps the previous occupant at your address may have had poor credit. If their correspondence mail is still linked to the address, this can have an adverse effect on your chances of getting credit.
Once you have ascertained the status of your credit rating, you are now in a position to seek out the right lender. This is a crucial decision as some banks will only consider lending to those who have high salaries and excellent credit. Your chances of success may be enhanced if you seek out a bank who considers those applicants who may have had credit problems in the past. If you are in a good position and are able to choose between different lenders then it is important that you research loans to find the best interest rate. A fixed rate loan is far better than variable so that you can plan your finances long term, knowing that the amount will stay the same each month until it is repaid.
Once you have found a loan that matches your needs and the lender is suitable to your credit rating it is a good idea to look closely at the terms and conditions of the loan. Many lenders will offer payment protection as an additional extra. You can expect to pay a small monthly fee, but this protection can be invaluable should you fall ill or are unable to find employment. In these circumstances this protection will cover the monthly repayments for the duration of the time you are unable to work.
You should also study what happens should you miss a payment. What are the responsibilities of the lender in these circumstances and what is expected of you?
Finally, you should to speak to the adviser at the bank before and after your credit application. They will be happy to advise you on the best course of action based up on your personal circumstances. If you are likely to be unsuccessful then they may be able to advise an alternative solution or provide ways in which you can improve your credit rating for future credit applications.
Read More......2008/08/10
BP Gas Card - 5 Reasons You Need One in Your Wallet
By: Loren Yadeski
The rapid gas price increases have pushed many to use every gas savings tip they can find, including gas cards. Gas cards have been around for a while but it is only recently that its use have spread like an epidemic. Why? Because gas cards offer rebates on gas purchases. There are many types of cards available and one of them is the BP Gas Card.
The BP Gas Cards comes in the form of BP Consumer Gas Cards and Gift Cards. It is currently one of the top gas cards available because of its features. If you don't have a gas card yet and is considering getting one, then get the BP Gas Card. Here are the top five reasons why you need one in your wallet.
1. Highest Rebate
BP gas cards offer the highest available rebate in the gas card market. It offers a 5% rebate on all gas purchases at any BP stations. Every time you pump gas at any BP station, you earn 5% rebates in the form of rewards points that can be accumulated and converted to cash back. Once you accumulate $25 rewards points, you can can easily redeem your rewards by requesting a check payable to your name or through a gift card.
2. Introductory Rate
The BP gas card offers introductory rates, a double rebate for the first sixty days or twelve months. Their regular rebate is at 5%, so you're looking at an introductory rate of 10%. You actually double you savings in the first two or twelve months that you use your card. And if you use your rebates for gas purchases, you earn even bigger savings.
3. No rebate caps
Unlike other gas cards, the BP Gas Cards don't have rebate caps. This means unlimited gas rebates and savings. Why go for cards that limit your savings when there's unlimited rebates with BP Gas Cards?
4. No annual fee
Holding a BP gas card won't cost you anything. BS Gas Cards has no annual fee and this means that no fees will eat out your savings. In choosing gas cards, be wary of fees that can easily undermine your savings. With BP Gas Cards, you are sure of getting your savings in full.
5. Rebate on other purchases
The BP Gas Cards works just like an ordinary credit card, you can also use them to pay for non-gas purchases and the good thing is you can earn rebates on them too. They offer a 4% rebate on eligible travel and dining expenses and 2% on all other purchases. If you are worried on having too many credit cards on your wallet, you can go ahead and ditch your other credit cards for BP gas cards.
There are many gas cards out there. Some even offer other perks such as airline tickets and gift certificates but if you really want to save on gas money, then you should go for cash back rewards. Luckily, there are BP Gas Cards that offer the highest unlimited cash back rebates.
Read More......2008/08/02
Get Ready to Overpay Your Taxes...Again
Each year, millions of Americans severely overpay their taxes. Are you one of them? Chances are if you are still working on the W-2 tax system, you are! Many people don't realize, but there are two vastly different tax systems in this country. Let's call them the educated tax system, and the uneducated tax system. The educated tax system is used by the wealthy who have taken the time and effort to more fully understand the intricacies of the tax code and arrange their affairs such that they pay single digit taxes. However, the uneducated tax system is used by those who simply accept the idea that the federal government is entitled to a huge part of their income, often over 40%, every single year. The difference is like night and day.
The line under your income on your pay stub is where these two systems differ. With the uneducated tax system, you subtract the three lines under your income and the remainder is the amount of your income that you actually get to keep. So you With the educated tax system, the first line is your reported income as with the uneducated tax system. However, the second line is the money you spent on the business, and you pay taxes on what is left. This is because when a business spends money it is called a business expense which is eligible for a tax deduction. So any money spent by the business will be untaxed. Therefore, having your own business and being in the educated tax system, you can reduce your taxes by 40-70%. To break this down even further: If you are making $35,000 a year, this information could save you up to $10,000. That means it does not matter if you are making millions of dollars or a few thousand dollars, these strategies can apply to you! A marginally profitable business can become a thriving business by applying these strategies.
Last year, Tax Freedom Day fell on April 26. This means that you worked 116 days just to turn it all over to Uncle Sam. For many people, taxes are their single largest expense. So what if you could find a legal, ethical way to reduce the amount of money you had to fork over in taxes? What would you do with the money you saved? I have spent years studying the tax codes, and I have found a reliable and perfectly legal way for you to reduce your tax burden, and best of all it can be used by anyone! The key is in arranging your affairs so that the majority of expenses are converted into legitimate business expenses and are eligible for a tax deduction. A portion of your mortgage, travel, medical expenses, meals, entertainment, and much more can be paid for with before tax dollars! The power of tax deductions can save you thousands of dollars each and every year, so why aren't you using it? Take some time to learn the tax secrets of the rich, and put more of your money back in your pocket where it belongs!
I have spent years studying the tax code looking for ways to help people lower their tax bill and keep more of what they earn. I have uncovered several tax deduction strategies that can be used by anyone to slash their tax bill and save thousands of dollars each and every year.
Drew Miles
Find Out More: http://www.freetaxstrategies.com
Article Source: http://www.ArticleBiz.com
Read More......2008/07/26
Contractors Save Fortunes With Insurance Bid Specifications
By: Don Bury
Most contractors don't know how powerful it is to publish their own insurance bid specifications every year. When you can do this, you can interrogate the market at will, and save a lot of money. This applies to Liability, Auto, Property, and Workers Compensation Insurance.
1. Your bid specifications should provide everything broker needs to produce a quotation.
It takes time and effort to build a full set of specs, but well worth it. They are pivotal to driving down insurance costs. Once they are developed, updating them once a year is easy.
You can hand your bid specs to any broker you please. We measure quality by an absence of questions from brokers. If you get questions, record them along with the answers into your bid specs.
Your bid specifications should describe your operations, exposures, coverage and certificate requirements thoroughly. They should updated annually.
2. Tables in bid specs
Your bid specs should contain lots of tables - vehicles, drivers, sales, payroll, subcontractor costs, equipment, job history, and of course your policy & loss history we covered in Chapter 5. You can get these tables set up in spreadsheets, and they are easy to update. We use an online database to help us keep our clients organized.
Vehicles Year, make, model, Vehicle ID Number, gross vehicle weight, garaging location, cost, any special equipment, loan number, lender name and address
Equipment Show year, make, model, item, Serial number, actual cost, current value, year purchased,
Drivers Name, license number, license state, birth date, date hired
Sales Show 5 years history of sales by type of work. Break out by Commercial vs Residential, remodeling versus new construction. Project the same variables for the coming year.
Subcontractor costs Show 5 years history of subcontractor costs by type of work they did. Project the same variables for the coming year.
Payroll Show 5 years payroll history by workers compensation class code. Show average wage for class, and number of employees. Project the same variables for the coming year.
Job History Itemize jobs you have completed. Do 5 years if you can, but at least present what you did last year. Break out by Commercial vs Residential, remodeling versus new construction. Report jobs you expect to do next year.
3. Description of Operations
Describe what you do. The job history report above really helps save words here. You can probably find a good description of your general operations already written on your web site.
3. Questionnaires -
Brokers have to fill out lots of questionnaires. Get them, and complete them. Keep them, and update them each year. Do not allow a broker to interview you, then fill out the form and not give it to you. This is a common mistake. You have every right to possess a copy of information provided to insurance companies. Don't let brokers tell you otherwise.
Questionnaires include: Contractor supplementals, Workers comp supplementals, and the standard accord applications for the various lines of coverage. Getting these in your records is a good step in the correct direction.
If your broker doesn't want to give you these, it is probably time to have a heart to heart talk with your broker, or consider getting a new one. If you start a new conversation with a new broker, you can establish an agreement you will get the applications in exchange for giving the new broker a chance to quote. This move will go far towards driving down your expenses.
4. Coverage
Brokers pride themselves on designing coverage to meet your exposures. Request a detailed listing of your current coverage, and ask for how it could be improved. Do this with each broker you deal with. This is a practical way to get a coverage spec page set up for your bid specs.
5. Locations
For each location you occupy (not your job sites) brokers need to know quite a bit of information. Ask your broker for the applications for property coverage, so you can be sure all the information is complete and accurate. Of course keep a copy of the application for your bid specifications.
6. Certificate needs
Make it clear what you need in the way of certificates, right in your bid specs. Providing examples of certificates you need, especially the difficult ones can save you a lot of headaches later.
Here's more help getting lower insurance rates and better coverage: http://www.contractorinsurancetoohigh.com
also: http://www.icrs.biz
Phone 800-760-1867 email: donbury@icrs.biz
Follow the system that has delivered $20 million in measurable savings to contractors and business insurance buyers. From the author of The Buyers Guide To Business Insurance (1993)
Article Source: http://www.ArticleBiz.com
Read More......2008/07/12
A glossary of financial jargon
By: Melanie C
Confused by some commonly used investment terms? Our new glossary should help you out.
The world of finance is full of jargon. Partly this is because, as with most things, there are similar concepts that keep repeating, so it's easier to have a condensed form of words rather than going into every last detail every time.
It would be hard to follow the cricket, for example, if every time someone was out leg before wicket, the commentator had to explain that, in accordance with law 36, the bowler had delivered a ball, not being a no ball, and the ball, not being intercepted full pitch ...
The trouble is that some of the less useful brokers and financial planners like to use jargon to hide their own lack of knowledge and put a veil of mystery over the financial world thereby justifying their large fees and commissions.
One of the main aims of The Intelligent Investor from its start nearly ten years ago, has been to blow away this cover. And, in line with this, we've decided it's high time we started piecing together a glossary, with the aim of helping you stay one step ahead of your advisers.
To kick things off, here are some explanations of commonly used jargon. We'll add to it over time, and if you'd like any particular stockmarket jargon explained, send in your request via our Ask the Experts facility – we'll answer your query and then add it to our glossary.
Net profit
This is a company's bottom line, known variously as net profit after tax, net profit or earnings. After all operating expenses, interest on borrowings, taxes and accounting deductions have been taken out, the net profit is what's left.
Sometimes the net profit includes one-off gains and losses which make it hard to compare with other companies and previous years. In these cases, companies (and analysts) often present other numbers called things like 'normalised net profit', which ignore the one-off items.
Continue reading investment information and other stock market advice at the Intelligent Investor.
Article Source: http://www.ArticleBiz.com
Read More......2008/07/06
Beware the Lure of No Credit Check Loans
An article advising you on no credit check finance
Perhaps you always thought that it could never happen to you, but before you knew it the front two tires of your car gave out and you still had five days to go until payday. You need your car to get to work and to pick up the kids from school, and since your credit card is maxed out and you have no money in savings, you need some cash fast. Sounds familiar? This scenario happens day in and day out at a myriad of households all over the United States. While many have the luxury of putting two new tires on a credit card and then repaying the card when the paycheck comes in five days later, others do not have that option and suddenly the no credit check loans advertised on daytime and late night television look attractive.
You have probably seen the ads that talk about getting money wired into your account fast, with no credit check, no hassle, and no documentation needed. Payday loans – which are another term for no credit check loans – are intended to tide over those who are a few hundred dollars short in between paydays. The advertised theory behind the practice stipulates that a consumer may have a sudden emergency for which she or he did not budget. To meet the financial demand, the consumer can borrow against her or his next paycheck simply by applying for one of the no credit check loans, and within hours the money is in the account. To repay the loan, the consumer will write a postdated check which will be kept in the office of the payday loan agent. Once the payday comes around, the agent will deposit the check, the loan is paid, and all things being equal there is no problem.
Unfortunately, the reality of the matter is somewhat different. Given the outlandish fees charged on the no credit check loans, you will have to pay about $25 for every $100 you borrow. Thus, a loan in the amount of $500 could cost you as much as $125 in fees, which means that five days later you will have to foot the bill for $625. This is a lot of money in fees and interest. Furthermore, since beggars cannot be choosers, the agencies writing up the no credit check loans will usually have many repeat customers – not because the service is so good or the rates are reasonable, but because the loans cannot be repaid when the payday rolls around and thus the consumer will have to refinance the $500 loan in addition to paying the $125 in fees. Thus, when the next payday comes due, the consumer will once again have to pay $625 – this now totals $250 in fees on a $500 loan which may have only been in existence for about three eeks.
However, there are times when these loans are the only alternative you have. They do help keep your credit in line and will help you avoid late fees as well.
Read More......2008/06/26
Is the Quick Sale Scheme Right for You?
Selling property is never fast and easy. The housing market in England and Wales is flooded with distress properties. The UK property market is slowing and prices are flat. Most property sellers are never able to sell their property at asking price. Buyers need to be very patient in awaiting a buyer who is willing to meet the price that you are asking for.
If you are not in a position to wait, perhaps due to an impending repossession or a relocation need, then the fast house sale option is available. Admittedly, the easiest way to stop foreclosure or repossession on your home is to sell it at a quick property sale. A quick sale on your house could help you through financially difficult times and there are some companies that specialize in buying houses fast. Some quick sale companies will still even purchase a property a few hours before the scheduled foreclosure.
The ability to stop the repossession of your home can seem quite daunting, but it is possible. Money from the sale of your home is immediately released. You could then use this to pay off debts to stop a foreclosure or to start off a new chapter in your life with financial security and no threat of foreclosure.
How quick sale works
Repossession is a sad fate that most of us want to avoid. However, with the rising interest rates, sometimes foreclosure is inevitable. A repossession sale would not only put you out of your house and home, the mortgagor could sell your home for a price well below its market value and still leave you liable for the difference between the amount your home was sold for and the balance. Not only do you lose a valuable asset, you still have penalties and fees to pay. The good news is, there are ways to stop your home from being repossessed.
For someone in dire need of financial resources, the usual option is to obtain a cash loan to pay off arrears on the mortgage. Most of the time, this is a bad idea considering the high interest rate. Your financial problem could escalate in the upcoming months. For many, a feasible option would be to just sell their home or a property quickly in order to evade foreclosure. Quick sale companies purchase your property so you can pay off your loan.
Since time is of the essence, you do not have months to wait for a buyer to purchase your property at the asking price. Through the quick sale scheme, you can sell your house fast and use the equity to pay off your debts. Moreover, many quick sale companies offer the option to either move on to another house or let-back the property for months or even years. Some schemes even have a buy-back option that gives you the opportunity to buy back the house at a later date. The quick loan scheme is a very viable option and an easy one to find, as there are numerous investors hunting for good rental deals.
Of course, make sure to find a credible quick sale company or a reputable investor. Even though you are in a hurry, negotiate for a reasonably discounted buy out price based on the condition of your home and its potential for rental income. Most of the time, a quick sale works to the advantage of the property owner. Not only will the investor stop repossession and pay off arrears, many allow the home owner to stay on in his home at a fairly-priced rent comparable to those in the neighborhood.
With the right quick loan arrangement, not only do you successfully stop repossession on your home but you can remain in the same house, protected by the rights of a standard tenant. Your housing costs would be limited to rent, utilities, insurance and council tax. Best of all, your credit record will remain spotless, and allow you the opportunity to purchase another home in the future.
Parmdeep Vadesha is a property investment expert and founder of the largest community of property entrepreneurs on the web who buy below market value properties from distressed homeowners facing repossession, divorce and bankruptcy. He writes a monthly newsletter for over 70,000 property investors worldwide - http://www.Property-System.com
Article Source: http://www.ArticleBiz.com
Read More......2008/06/25
Buying Tax Liens Over the Counter
The unique investing opportunities offered by the United States government's tax deed systems are not exclusive to United States' residents. An over-the-counter system facilitates purchases via the mail, and as technology has evolved, the internet has become yet another option for purchasing tax deeds. No restrictions exist on who can participate in these sales-if you have a registered social security number or tax payer identification number, you can purchase U.S. tax deeds from anywhere in the world. A tax payer identification number is easy to obtain. It is used on the United States tax form W-9, which is required for all independent contractors.
The earning potential as a tax deed investor is astronomical; however, it entails a much larger degree of responsibility than tax lien sales. This is especially true if you live abroad and cannot visit the United States to view the property you are purchasing. Distance investing should not equal blind investing. Now is the time to discover your inner Sherlock Holmes. Contact the counties you may bid in and request whatever free information they can give you. If feasible, have them e-mail or fax inventories, appraisal histories, et al, to you for your review. Make sure that no tax liens will remain active on the property after you have purchased the deed. It's tricky for any new investor to manage real estate, but getting entangled in a legal battle for property that a lien took a percentage off is terribly frustrating. This is the last thing you want to have to manage from across national borders.
U.S. Tax Lien Sales
If you are leery of managing real estate from thousands of miles distance, consider tax lien sales as opposed to tax deed sales. Tax liens seldom end in the acquirement of real estate. The odds are about 1 in 250. Usually the owner redeems the property and you get a check for your investment plus interest. This a great way to build your investing skills and gradually familiarize yourself with real estate entrepreneurship.
Should the opportunity one day arise to travel to the United States, whether for business or recreation, check out a live auction if your schedule allows. This will instill you with a whole new depth of understanding of U.S. tax deed and lien sales, providing you with a diversity of knowledge that cannot be mastered from behind a computer screen. You can also network with other investors-imagine the possibilities of a coalition between you and a local investor. Explore all the rich opportunities of U.S. tax deed and lien auctions and begin your journey to success and wealth as an investor today.
Brent Crouch is the owner of TaxLienProperties.net. He has dedicated this site to providing information on how to purchase tax lien properties for pennies on the dollar.
Article Source: http://www.ArticleBiz.com
Read More......2008/06/24
FSA to make Loans more understandable
By: Jennifer Quirk
The FSA this month have released a new website discussing and promoting financial products such as loans and offering advice and help in reference to debt problems. There has been much discussion into how to create an easily accessible and understandable base of information for today’s young adults and families. The new website is being distinctly free from jargon and worded in familiar language to try and encourage younger people to educate themselves when it comes to money.
The website has been created very much with its target audience in mind. Much research was done prior to the website being designed and created so it would include as much relevant and interesting content as possible. In surveys being taken across the country, younger people where asked what information they wanted, who it was to be supplied and sourced from, and how it would be displayed. The website has then subsequently, depending on the band of answers, been ordered in “life stages” so it is suitable to several age ranges and concentrates on the money issues most encountered by said audiences.
So far the website has received a lot of praise from both the young adults using it and financial experts that are pleased to see that the issue has been addressed in such a successful manner. There is a lot of promise that the website will ultimately help younger people to become more financially capable both now and when they plan for what they want in the future. Part of the success has been down to how the information is displayed.
Youth Net, a charity of expertise and one focused on the age range targeted by the FSA, have been actively involved in the project. They have specifically designed the website to be modern and easy to take in. Research has shown that a clean and uncluttered design is much more likely to appeal to the younger generations, so a “newspaper” style design has been avoided.
If you are looking to leave home, start a family or take out a loan for a large purchase, such as your first car, it is highly recommended you research your options before making any decisions.
Loans can be a real help when looking to purchase that big product or service. There are several loans that may be suitable to you ranging from secured loans to (if you are a home owner) secured loans
Loans Article Source: http://www.eArticlesOnline.com
