Thursday, August 25th, 2011
Dear Dave: I recently received a beneficiary IRA when my mother passed away. I also received a small part of her estate. I’d like to share some of this windfall with my 24-year-old son. He’s a good boy, but he’s pretty impulsive and not good with money. Do you have any suggestions? —Kimberly
Dear Kimberly: I’m sorry to hear about your loss. It’s tough enough losing your mom without having to worry about a grown son with money issues.
I’m sure he’s a good kid, but I don’t like the idea of just giving him money (more…)
Tags: beneficiary, car loan, credit, debt, inheritance, lay-off, unemployment benefits
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PERSONAL FINANCE |
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Tuesday, August 9th, 2011
Accelerating fears of a new global recession sent the Dow Jones Industrial Average plummeting more than 634 points Monday (8/8) — wiping out $1 trillion in market value.
The massive stampede out of stocks, the second plunge of more than 50 points in the last three trading days, was fueled in large part by reaction to the U.S. credit rating downgrade. The sell-off threatened to further sap confidence in the faltering U.S. economy, giving businesses and consumers another reason to cut back on spending, (more…)
Tags: credit rating, debt, INVESTING, Standard & Poor's, STOCK MARKET, stocks
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BLOG |
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Friday, August 5th, 2011
The U.S. government lost its highest-grade AAA credit rating from Standard & Poor’s late Friday (8/5) in an unprecedented reversal of fortune for the world’s largest economy, Reuters news service reported.
S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about the government’s budget deficits and rising debt burden. The move is likely to raise borrowing costs eventually for the American government, along with companies and consumers. In addition, this batch of negative news could throw stock and bond markets into turmoil again next week. (more…)
Tags: AAA, bonds, credit downgrade, credit rating, debt, government borrowing
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Tuesday, August 2nd, 2011
Filing for bankruptcy can trash your financial life in so many ways. Even if you are successful in the courts, your old debts still can resurface as “unpaid” on credit reports.
A better strategy is to pay off debt over time, using bankruptcy only as a last resort. In July 2011, about 1,217 businesses and individuals sought Chapter 11 protection, a 24.2 percent increase over June, according to data from Automated Access To Court Electronic Records (AACER).
“There’s no quality to debt. Years ago it was tax deductible, but it hasn’t been for decades,” says John F. Harrison, CFP with Aspire Financial Advisors in Newtown, Mass. “The interest added to items purchased on credit doubles, and even triples, their cost and creates emotional stress.”
Whatever the size of your debt load, there almost always is a way out without claiming bankruptcy.
(more…)
Tags: bankruptcy, budget, credit cards, debt, financial freedom, interest rates, PERSONAL FINANCE
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PERSONAL FINANCE |
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Monday, July 18th, 2011
Before signing on the dotted line of an airline credit card application for a free flight, consider a generic travel-rewards credit card. Both offer the ability to redeem points for flights, but a generic travel-reward card also offers the option to claim a free travel ticket from any airline—as opposed to an airline credit card, which restricts travelers to the card’s issuing airline and its partners.
Examples of generic travel-reward credit cards include the Chase Travel Plus Platinum Visa Card, Capital One No Hassle Miles Card and the Discovery Miles Card.
Another advantage of the generic travel-reward credit card is that (more…)
Tags: airline credit card, debt, generic travel reward credit card, travel reward card
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Monday, June 27th, 2011
Dear Dave: My husband is a landscaper who works for the state. He has his technical license and wants to start a business doing private work as well. What advice would you give to someone just starting out in this field? —Amy
Dear Amy: First, I’d check to see if there are any additional licenses required for doing that kind of work in your state and the cities in which you’ll be operating. You want to make sure you’re starting off on the right foot with any authorities or governing boards.
The next thing I’d advise is to keep it simple. There’s no reason to run out and incorporate or anything like that. (more…)
Tags: bankruptcy, business start, business startup, credit card, debt, disability, emergency fund, inheritance, PERSONAL FINANCE
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Friday, May 20th, 2011
For many people, owning a business is a dream fulfilled. But making that dream a reality takes some research as well as common sense.
As a buyer and owner of several small businesses, I am often asked what it takes to become a business owner. Here are some factors that a prospective owner should consider before making that jump.
1. Does your spouse work? A business owner, especially starting out, should not be surprised by wildly inconsistent levels of income from week to week, or month to month. Having a spouse working a “regular job” bringing in consistent income can be a huge factor in lowering your stress during lean times. (more…)
Tags: business startup, debt, entrepreneur, goals, small business
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BUSINESS |
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Wednesday, May 11th, 2011
For most of the past year, anything involving the U.S. dollar has been what traders refer to as a “one-way trade.” And with good reason: Over the past year, the U.S. currency has traded in only one direction—down.
Indeed, during the period in question the dollar is down 8.3 percent against the British pound, 11.65 percent against European euro and 14.2 percent against the Japanese yen. On a year-over-year basis, the biggest gains against the dollar have been notched by the Australian dollar (20 percent) and the Swiss franc (26.7 percent).
This freefall by the greenback is part of the reason that gold and silver soared to new records and commodity prices have zoomed during the past year (before their declines last week).
But here’s the thing: This nosedive by the dollar is ending—with a U-turn that some analysts say will send the U.S. currency into a zooming climb. (more…)
Tags: commodities, currencies, debt, Federal Reserve, forex, inflection point, U.S. dollar
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INVESTING |
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Thursday, March 24th, 2011
Dear Dave: I noticed that your Baby Steps list puts saving for retirement before saving for your children’s college fund. Sending your kids to college would come first on the timeline, so why do you suggest this? —Jen
Dear Jen: I advise this approach because everyone is going to retire someday, unless, of course, they happen to die before reaching retirement age. Retiring and eating are necessities. College is a luxury. Lots of people succeed in life without going to college, and thousands have worked their way through college. I worked 40 to 60 hours a week in college, and I still graduated in four years. (more…)
Tags: budget, college, debt, divorce, emotions, financial freedom, financial planning, goal setting, retirement planning, savings
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PERSONAL FINANCE |
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Friday, March 4th, 2011
You’ve seen the headlines: Cities and states across the country face calamitous financial problems. Underfunded pension plans, skyrocketing energy costs and an eroding tax base have all conspired to make local governments a much less certain bet for investors.
Cities like Detroit, Pittsburgh and San Diego have massive pension shortfalls that could lead to Chapter 9 bankruptcies. Other cities with major underfunded pension liabilities include Fort Worth, Texas; Dearborn, Mich.; Syracuse, N.Y.; Hanover, Pa.; and Houston.
Does all that mean it’s time to pull out of municipal bonds altogether? (more…)
Tags: debt, INVESTING, municipal bonds, public pensions, retirement planning
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INVESTING |
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