feespeak

Feespeak

Writen by Debbie Hagan

Many banks have started charging customers a fee, some up to $5 if you use their human teller. Some banks will allow you a 1 time per month person to person contact. This was a simple business decision made on the part of management to encourage customers to utilize electronic banking services such as ATM’s and banking by phone. This move prompted quite an annoyance to many bank customers. The national media feasted on the event and created animosity between the reminiscent, way-things-used-to-be-folk, and the net-surfing, need it in a hurry, “can’t you do that any faster” customers. Banks say they have learned that automation, computerization and electronic banking, though intimidating to many, is not only cost effective but more efficient and fool-proof than ordinary human tellers.

“Since many of us refuse to deposit our paycheck, withdraw money or make a loan payment through the ATM, banks are forced to raise fees because it costs a lot of money to continue paying a human workforce for tasks that could be executed electronically”. Says Mark Webb, CFO of First National Bank.

This has created 18 Billion dollar problem that consumers failed to recognize. Online, Automated, Phone, Electronic whatever you want to call it banking misleads and even encourages customers from checking their paper statements and reconciling their accounts every month. I would go as far as saying the “can’t you do that any faster” customer do not even open their monthly paper statement.

This leaves the banks the perfect opportunity for unethical and unfair business practices. I’m sure at this point you are asking how. As you can know if you are following my research on bank fees, I’m about to tell you. By failing to open your paper statement, you miss the opportunity to rummage through your home looking for your grandmothers reading glass (magnifying glass for you youngsters) and reading those thin, slick little inserts laced with changes bank in your bank’s procedures. Such as Fee increases. By pushing electronic banking down your throat they also encourage you to just “check your balance” everyday and go from there. I have actually called a bank over fee issues and my inability to keep up with the lightening speed they deduct them from your bank account, and had a teller say to me “don’t you check your balance online every morning.” I’m sticking with “the way things used to be” approach as long as I can.

second-mortgage-with-no-equity-is-it-possible

Second Mortgage With No Equity - Is It Possible

Writen by Ben Ehinger

Can you actually get a second mortgage with no equity? Is it possible to get a second mortgage against your home without having built up any equity? When should you get a second mortgage if you have no equity?

You can get a second mortgage with no equity. It is referred to as a 125 second. This is when they use 125% of the value of your home to get you the financing you need. Usually you have to have a good credit rating and a low debt to income ratio in order to get a 125 second mortgage.

A second mortgage is what I refer to as a band aid loan. This is a loan that is used to temporarily fix a situation until a better solution can be found. You should never get a second mortgage when you can refinance your first mortgage. When you have already done this and used up 100% of the value you have no choice, but to take out a second mortgage.

When you take out a second mortgage for 125% of the value of your home you need to have a plan. You need to have a plan that will allow you to get through the desperate time that you are in, and come out in a better place. You want it to only be temporary. It is not a good thing to get used to having your home financed at more than it’s value.

Use this advice in order to make a sound decision in your financial situation. Remember that even when you are desperate you still need to compare rates and fees in order to get the best deal possible.

financial-definitions-f-thru-k

Financial Definitions; F thru K

Writen by Roger Sorensen

The ever increasing number of investment products and financial services in the marketplace today can be confusing. We have put together this glossary of financial definitions designed to help you understand some of the more common investment and financial terms you may encounter. Your financial advisor can explain these terms more completely and discuss with you those which are relevant to your situation.

Face Value - The value of a bond that appears on the face of the bond, unless the value is otherwise specified by the issuing company. Face value is ordinarily the amount the issuing company promises to pay at maturity. Face value is not an indication of market value. Sometimes referred to as par value.

Financial Futures - Futures contracts based on financial instruments such as U.S. Treasury bonds, CDs and other interest-sensitive issues, currencies and stock market indicators.

Fiscal Year - A corporation’s accounting year. Due to the nature of their particular business, some companies do not use the calendar year for their bookkeeping. A typical example is the department store that finds December 31 too early a date to close its books after the Christmas rush. For that reason many stores wind up their accounting year January 31. Their fiscal year, therefore, runs from February 1 of one year through January 31 of the next. The fiscal year of other companies may run from July 1 through the following June 30. Most companies, though, operate on a calendar year basis.

Fixed Charges - A company’s fixed expenses, such as bond interest, which it has agreed to pay whether or not earned, and which are deducted from income before earnings on equity capital are computed.

Flat Income Bond - This term means that the price at which a bond is traded includes consideration for all unpaid accruals of interest. Bonds that are in default of interest or principal are traded flat. Income bonds that pay interest only to the extent earned are usually traded flat. All other bonds are usually dealt in “and interest,” which means that the buyer pays to the seller the market price plus interest accrued since the last payment date.

Floor - The huge trading area - about the size of a football field - where stocks, bonds and options are bought and sold on the New York Stock Exchange.

Floor Broker - A member of the Stock Exchange who executes orders on the floor of the Exchange to buy or sell any listed securities.

Formula Investing - An investment technique. One formula calls for the shifting of funds from common shares to preferred shares or bonds as a selected market indicator rises above a certain predetermined point - and the return of funds to common share investments as the market average declines.

Free and Open Market - A market in which supply and demand are freely expressed in terms of price. Contrasts with a controlled market in which supply, demand and price may all be regulated.

Fundamental Research - Analysis of industries and companies based on such factors as sales, assets, earnings, products or services, markets and management. As applied to the economy, fundamental research includes consideration of gross national product, interest rates, unemployment, inventories, savings, etc.

Funded Debt - Usually interest-bearing bonds or debentures of a company. Could include long-term bank loans. Does not include short-term loans, preferred or common stock.

Futures - Exchange traded contracts specifying a future date of delivery or receipt of a certain amount of a specific tangible or intangible product. The commodities traded in futures markets include stock index futures, agricultural products like wheat, soybeans and pork bellies; metals; and financial instruments. Futures are used by business as a hedge against unfavorable price changes, and by speculators who hope to profit from such changes.

General Mortgage Bond - A bond that is secured by a blanket mortgage on the company’s property but may be outranked by one or more other mortgages.

Gilt-Edged - High-grade bond issued by a company that has demonstrated its ability to earn a comfortable profit over a period of years and pay its bondholders their interest without interruption.

Give-Up - A term with many different meanings. For one, a member of the Exchange on the floor may act for a second member by executing an order for him or her with a third member. The first member tells the third member that he or she is acting on behalf of the second member and “gives up” the second member’s name rather than his or her own.

Gold Fix - The setting of the price of gold by dealers (especially in a twice daily London meeting at the central bank); the fix is the fundamental worldwide price for setting prices of gold bullion and gold-related contracts and products.

Good Delivery - Certain basic qualifications must be met before a security sold on the Exchange may be delivered. The security must be in proper form to comply with the contract of sale and to transfer title to the purchaser.

Good ‘Til Canceled (GTC) or Open Order - An order to buy or sell that remains in effect until it is either executed or canceled.

Government Bonds - Obligations of the U.S. Government, regarded as the highest-grade securities issues.

Growth Stock - Stock of a company with a record of growth in earnings at a relatively rapid rate.

Hedging - The purchase or sale of a derivative security (such as options or futures) in order to reduce or neutralize all or some portion of the risk of holding another security.

Holding Company - A Corporation that owns the securities of another, in most cases with voting control.

Hypothecation - The pledging of securities as collateral - for example, to secure the debit balance in a margin account.

Income Bond - Generally income bonds promise to repay principal but to pay interest only when earned. In some cases unpaid interest on an income bond may accumulate as a claim against the corporation when the bond becomes due. An income bond may also be issued in lieu of preferred stock.

Indenture - A written agreement under which bonds and debentures are issued, setting forth maturity date, interest rate, and other terms.

Index - A statistical yardstick expressed in terms of percentages of a base year or years. For instance, the NYSE Composite Index of all NYSE common stocks is based on 1965 as 50. An index is not an average.

Institutional Investor - An organization whose primary purpose is to invest its own assets or those held in trust by it for others. Includes pension funds, investment companies, insurance companies, universities and banks.

Interest - Payments borrowers pay lenders for the use of their money. A Corporation pays interest on its bonds to its bondholders.

Interrogation Device - A computer terminal that provides market information - last sale price, quotes, volume, etc. - on a screen or paper tape.

Intrinsic Value - The dollar amount of the difference between the exercise price of an option and the current cash value of the underlying security. Intrinsic value and time value are the two components of an option premium, or price.

Investment - The use of money for the purpose of making more money, to gain income or increase capital, or both.

Investment Banker - Also known as an underwriter. The “middleman” between the corporation issuing new securities and the public. The usual practice is for one or more investment bankers to buy outright from a corporation a new issue of stocks or bonds. The group forms a syndicate to sell the securities to individuals and institutions. Investment bankers also distribute very large blocks of stocks or bonds - perhaps held by an estate.

Investment Company - A Company or trust that uses its capital to invest in other companies. There are two principal types: the closed-end and the open-end or mutual fund. Shares in closed-end investment companies, some of which are listed on the New York Stock Exchange, are readily transferable in the open market and are bought and sold like other shares. Capitalization of these companies remains the same unless action is taken to change, which is seldom. Open-end funds sell their own shares to investors, stand ready to buy back their old shares, and are not listed. Open-end funds are so called because their capitalization is not fixed; they issue more shares as people want them.

Investment Counsel - One whose principal business consists of acting as investment adviser and rendering investment supervisory services.

IRA - Individual Retirement Account. A pension plan with tax advantages. IRA permits investment through intermediaries like mutual funds, insurance companies and banks or directly in stocks and bonds through stockbrokers.

Issue - Any of a company’s securities, or the act of distributing such securities.

Keogh Plan - Tax advantaged personal retirement program that can be established by a self-employed individual.

More financial definitions can be found by visiting http://www.slave2work.com/articles/financialdefinitions.html

can-factoring-make-you-money

Can Factoring Make You Money?

Writen by Mark Little

Simply put, factoring helps businesses meet their cash flow needs by providing immediate cash by using accounts receivable.

Many people view factoring as a short-term stopgap to plug the working capital hole that inevitably presents itself in almost every growing business. Although factoring can many times help a business refresh its working capital in the midst of a cash crunch, it can actually be a highly profitable long-term strategy. With adequate cash flow, a business has the ability to not only avoid stoppages in business, but to increase customers and sales. Cash flow is the lifeblood of any business and with out it, regardless of profitability, a business can cease to exist.

Also consider the fact that by factoring, debt is not shown on your financial statements. This reflects strong numbers and if you have the opportunity to sell your company, this can be attractive.

Factoring is one of the few forms of financing that can support rapid growth in a business. As the receivables increase, so in turn does the funding, as long as your customers are credit worthy. Therefore, it stands to reason that by reducing working capital requirements, a company can more rapidly reach their long-term growth plans. The net effect is increased sales, increased production, and decreased stress.

Factoring is typically more expensive than traditional financing, however, the cost of factoring is usually significantly less than the loss of net profits that would have otherwise been generated by the substantial growth that it supports.

Ways to offset the cost of factoring if it applies to your industry is to use the positive cash flow and take early pay discounts from your vendors and also buy in bulk using volume discounts. These savings can be deducted from your factoring cost if not eliminate them completely.

If you are turning down business due to the lack of capital, you need to explore the benefits that factoring can provide. It is a form of commercial finance that is very powerful and must not be over looked.

does-the-hampr-block-cloud-have-a-silver-lining

Does the H&R Block Cloud Have a Silver Lining?

Writen by Larry Holmes

H&R Block (ticker: HRB) has fallen on hard times. Customers are due some $62.5 million dollars after settling a class action law suit against the largest tax preparer in the U.S.

It seems that Block was accused of violating consumer protection laws. The company offered fast money, called “Rapid Refunds,” to customers expecting tax refunds. However, they were actually loans repaid by those refunds that charged interest rates of between 29 percent and 750 percent.

Not only that, the company recently revised its second quarter financial results to include bigger than previously reported losses related to Hurricanes Katrina and Rita.

So, for H&R Block, if it wasn’t for bad news there would be no news at all. But what looks bad on the surface can spell opportunity for investors.

The truth of the matter is that H&R Block is a very good business that investors can purchase at a bargain price. We know it’s a good business because it’s earning a high rate of return on its own money. In what I think is sure to be the investment book of the year — The Little Book That Beats The Market by Joel Greenblatt — Greenblatt recognizes a good business by its return on capital. He takes earnings before interest and taxes (EBIT), and divides it by its net working capital plus its net fixed assets.

To determine H&R Block’s return on capital, we would first determine its EBIT for the past four quarters — about $1.04 billion. Then we would divide that figure by net working capital plus net fixed assets — call it $1.2 billion. We get a return on capital of about 87%.

Forget the law suit. That’s over and done with. Forget the hurricanes. The damage to Block caused by them is already done. Would you be interested in owning a partial interest in a business that gets a return on its own money of 87%? I would certainly think so.

Also, being in the tax preparation business, Block is a very seasonal business. It earns most of its money in the first quarter of the year — the quarter we’re about to enter.

After we find a good business, the next question is can we buy partial interest in this business at a bargain price? To determine that, Greenblatt uses earnings yield — EBIT divided by enterprise value (market capitalization minus cash, plus debt). As a back-of-the-napkin calculation, let’s call it 12%.

In other words, the company has returned economic profits on their shares of 12%. Compare that with the rate that an investor could get on a 10-year Treasury note of about 4.3% and H&R Block looks like it’s being offered at a bargain price.

Of course, there are no guarantees and there are risks. If you want no risk, take the 4.3% that you can get on a Treasury note and hold it for ten years. Also, this article should certainly not be construed as investment advice. It is simply an illustration of how great investors like Joel Greenblatt get great returns (Greenblatt is the managing partner of Gotham Capital with average annualized returns of 40% for over twenty years).

They buy shares of good businesses when they can buy them cheap. Despite its recent troubles, H&R Block certainly seems to qualify as such an investment.

(C) Larry Holmes

independent-financial-advisors

Independent Financial Advisors

Writen by Elizabeth Morgan

Independent financial advisors are independent, as the name suggests. They are professionals who give unbiased opinions on financial affairs. Independent Financial Advisers will do a detailed study of their client’s financial position, preferences and objectives before giving advice on any financial matter. They will then suggest a solution to meet the client’s objectives. In other words, they work in tune with the philosophy of their clients. Independent financial advisors give solutions on matters like investment, insurance, retirement planning, mortgages and tax matters.

The premise behind employing an independent financial advisor is that he is not ‘tied’ to any financial services or products in the market. So it is unlikely that he would force you to buy certain financial products in the market and risk your money. To be precise, independent financial advisors are professionals who follow an ethical code of conduct.

The service of financial advisors can be hired by paying a fee. But most of the independent financial advisors accept a commission for their service or consultation. If the business offered is a small one, independent financial advisors may work for a fee than commission. A combination of fee and commission is also proposed in some cases when the investment or the financial service provided is quite large.

Regarding qualifications, make sure that the independent financial advisor you choose is a certified professional who has seen many market fluctuations. He should have professional qualifications and membership in professional associations. You can ask about his credentials. Also, check whether he is a CFP or CFA certified professional. Or you can check out the profile of the independent financial advisor of your choice by examining both the parts of the “Form ADV.”

How Do You Shed Your Body Fat and Build LEAN MUSCLE Ground Breaking Research

Every day our bodies build and rebuild close to 3 billion cells and many of the raw materials used to achieve this are found only in dietary proteins. Protein is made up of amino acids, the building blocks of muscle. When we exercise muscle tissue is broken down. The body then requires more protein in order to repair the damage. Now is the time to ask yourself, “How much protein do I get in my diet?” For the average woman the answer is “Not enough!”

There are other benefits to consuming protein as well. A high protein diet has been shown to increase thermogenesis - fat burning activity in the body. Consuming a protein meal also has the ability to increase one’s metabolic rate up to 25-30% compared to a carbohydrate meal that increased the metabolic rate only 4%. If we don’t get enough dietary protein from the foods we eat, our metabolism slows to a turtles pace. As well, protein contains an enzyme that acts as an appetite suppressant, while carbohydrates actually increase your appetite.

Even if you do get enough in your diet, another consideration is the bioavailability of the protein you are consuming. Mother’s milk contains the only “perfect protein”. All other proteins are rated on a scale of how well they are digested in the body. Meat including chicken, beef and fish are quite high on the scale but for most women we don’t get nearly enough in our diet in order to get optimal effects for tissue repair. Women tend to eat more veges and fruit than men but, unfortunately, most plant based dietary proteins (other than soy) are rated very low. Therefore if you are a pure vegetarian you will have a difficult time repairing and building muscle.

One way to ensure we receive enough protein is by supplying the body with a protein supplement. The most easily digested one’s are whey, egg and soy. While all are excellent sources of protein, there are many extra benefits that women can receive by choosing soy protein.

Much research has been done in recent years that has unveiled the astounding health benefits of soy. Soya beans are cholesterol free, rich in fibre, vitamin E and omega 3 fatty acids. Soy is a high quality protein that contains isoflavones (natural phytoestrogens). These isoflavones have been found to give heart and bone protection, relief from menopausal symptoms and protection from breast and endometrial cancers. Soy has the abiltiy to reduce harmful free radicals, build quality muscle, help speed up metabolism, and supply valuable calcium, folic acid and iron. It also lowers bad cholesterol and increases good cholesterol. The FDA has even added it to it’s list of health promoting foods.

There is still ongoing research to determine the ideal amount of daily soy to receive optimal benefits. Cultures who have a high soy intake receive approximately 50-100mg per day of soy isoflavones. Therefore, the amount of isoflavones is important when choosing a supplement.

There are times when soy is not the ideal protein choice. Pregnant and lactating women should choose a whey protein supplement until more conclusive studies are performed with regards to soy’s effect on the baby’s development.

If you would like to know more about how we can help you to achieve your weight loss/management or health goals, please log onto my website http://trimtheweight.org/?refid=ezmem1-35055

We have the most simple and effective way to help you hit your targets and stay there. 100% all natural, safe for absolutely anyone to use, young or old, children, teens and even pregnant ladies. You may request an obligation, free consultation to find out more.

[tags]protein,weight loss diets,natural weight loss,lose wieght,body building,health supplements,fat loss[/tags]

Achieve Great Beauty Naturally And Win The Fight Against Aging

I usually smile with gratitude when friends (and even strangers) sincerely guess my age to be 15 years younger.

When they learn the truth about my fight against aging, they take notes and become converts. Yes, just like that!

Taking Care

The fight to extend human life is nothing new, and as we all know, people resort to various means to achieve this battle: from cutting out irresponsible habits to going under the scapel.

Scientists keep making significant discoveries and how best we can keep our body youthful and even reverse the aging process.

One denominator of these countless research is this: be aware of the changes affecting your body. As you grow older, it is important to be aware of the changes affecting your body. This is inevitable.

You need to know how to prevent problems occurring and how to respond to them should they surface.

Taking responsibility for your own natural health and well-being gives you a great self-confidence and makes you feel you are in control of events.

For example, you respond to your body when you suddenly feel thirsty and take the appropriate healthy drink, such as a glass cup of water.

You exercise regularly and know the level of your fitness; you take plenty of fruits and vegetables, simply said, you are conscious of what is happening within and without your body.

The implication of taking care is simply translated to your psyche. Your mind is settled in the fact that doing the right things keeps your energy levels up and this makes you feel younger and stress levels are kept at the barest minimum.

Controlling simple things that happen to your body will go a long way to keep your body from aging quickly. For example, red meat may be tasty and delicious, yet, time and again.

It’s been proven that a diet rich in red or processed meat can greatly increase the risk of bowel cancer. This is even worse, especially for those who have cut out fruits and vegetables from their menu.

Try This!

Do you smoke?

Cut it out for a week and see how you feel in your body. I can bet you, giving up that chimney-stuff will not only keep more money in your pocket, but it will also make your body younger, your skin radiant and your lungs livelier.

Do you stuff on red-meat burgers?

Exchange the burger for fish and see your youthfulness shoot through the roof! Not only will you be gaining an advantage over potential bowel-cancer-causing processed meat, but you will be reducing your levels of “bad” fat intake and increasing your “good” fat intake.

Do you take alcohol?

Substitute your alcohol intake for ordinary water, or at best water with a hint of natural juice mixers. Do this for a week and you would be amazed and your energy levels and better health.

Friend, while trying these things, add the “Peruvian Ginseng” or maca to your dietary supplement, you would be amazed and the ease with which you will be able to give up these bad habits, especially if you take the supplements such as maca as you would take any food.

You can suck or chew it, instead of the cigarette or alcohol. Many of our customers say they love sucking it like candy instead of droping back into any bad habits and it has helped wean them over as well.

You Can Do This….

Anyone, and I mean YOU, can take a ten-minute brisk-walk a day. Not only would you burn off dangerous fat concealed under your skin, you would help dislodge the toxins lurking around in your body through the waste that would be generated from the simple exercise. If you make it a duty to take a ten-minute brisk-walk a daily, your body will starting winning the fight for youthfulness.

Other things to take note of are the free radicals in the body. While oxygen is vital for life existence, it can also be its poison. Why? This is because when oxygen is used for essential processes inside the body, it leads to the production of damaging molecules known as free radicals.

The most damaging characteristic of free radicals is their chemical structure in that they contain an unpaired electron. This means that they roam around the body searching for healthy molecules to pair with. Unfortunately this pairing process damages the host molecule and irreversibly changes the DNA (material that carries genetic information).

If these free radicals are allowed to damage to body cells like this over a long period of time, the result is extensive cell damage and aging, as well as diseases such as arthritis, heart disease, cataracts and cancer.

Finally, Friend, the excellent combination of natural health supplements such as the Booster’s maca and Alive! goes a long way in the reduction of free radicals in your body.

Check out these alternative health products:
Booster and Alive!

References:

1. Walker M: Effects of Peruvian Maca on Hormonal Functions. Townsend Letter 1998;184:18-22.

2. DerMarderosian A (ed): Maca. In: The Review of Natural Products. Facts and Comparisons Inc, St. Louis, MO; 2000.

Dr Veronica manages Juicynites.com, and writes with a fervency for natural health products for the family; helping others to maximize the beauty of life. This article is extracted from his newsletter “JuicyNites

do-you-have-an-education-fund-green-thumb

Do You Have an Education Fund Green Thumb?

Writen by Elizabeth Potts Weinstein

Or is your growing college fund killing your financial aid?

The more you save for college, the less chance you have at financial aid. This irony has created the urban legend that you will be better off if you don’t save and rack up debt, so the government will pay for your child’s education. As a responsible parent, or a loving grandparent, you want to save for the education of your future collegian - but you don’t want those savings to jeopardize any chance your child has at the best financial aid.

How can you avoid or reduce the effects of this paradox?

When you save for college, hold your assets in a manner that will have the least affect on your future Expected Family Contribution, or EFC. Financial aid is determined by first calculating the EFC - how much of student and parental assets and income are expected to be used for college expenses each year. Parents and students complete a FAFSA form (Free Application for Federal Student Aid) to provide their income and asset information to schools. The schools use the EFC calculation derived from the FAFSA to offer aid packages of grants and/or loans to fund the difference between the EPC and the total cost of tuition, room & board.

What is the expected contribution from student and parental income?

Income calculated after allowances*: Student Income 50% Parental Income 22-47% (based on income level)

*Allowances include: federal and state taxes, social security contributions, “income protection” ($19K for family of four), and “employment expenses” ($3100, typically)

Student Income includes:

• Income from employment, business, contracting
• May include withdrawals from 529 Plan, if owned by someone other than the parent (such as the grandparent)
• Income from a trust or partnership (in some cases)

Parental Income includes:

• Income from employment, business, contracting
• Income from non-retirement assets (real estate, stocks, mutual funds, bonds, cash)
• Withdrawals from IRAs and/or other retirement accounts
• May include annuity distributions

Not included:

• Withdrawals from 529 Plan owned by parents
• Withdrawals from Educational IRAs

Income may change for year to year depending upon how the EFC was funded the year before. For instance, if the parents withdrew $10K from their IRA to pay for tuition, that withdrawal, while without tax penalty, is included in the income of the parents, and raises the EFC for the following year. However, $10K withdrawn from a 529 Plan is not included in the parent’s income and does not affect the EFC.

What is the expected contribution from student and parental assets?

Student Assets 35% (drops to 20% for 2007-2008 school year) Parent Assets 2.6-5.64%

Student Assets:

1. Accounts & assets owned by the student, directly
2. Custodial accounts
3. UGMA/UTMA accounts
4. Trust accounts
5. Coverdell ESA / Education IRAs (may be changing)
6. Savings Bonds in the student’s name

Parental Assets:

1. Taxable accounts & investments (non-retirement)
2. 529 Plans (owners)
3. 529 Plans inside a UGMA/UTMA for the child (as of 7/1/2006)
4. Savings Bonds
5. Investment real estate

Not Included:

1. Retirement Accounts (e.g., IRA, Roth IRA, 401(k), 403(b), pension)
2. Equity in primary residence
3. Life insurance
4. Annuities
5. Withdrawals from 529 Plans and Education IRAs
6. 529 Plan if owner is not parent or student (e.g., grandparent)

Obviously, the most advantageous position is for assets to not be included in the calculation. Otherwise, you would want hold assets as parental assets, instead of student assets, to reduce the EFC.

What are other considerations?

• Some schools perform their own calculations, and may include other assets, such as equity in the primary residence.
• Gift, estate, and generational-skipping tax considerations - for example, grandparents may need to transfer assets to the parents or student to reduce the grandparent’s future estate.
• Parents and grandparents may want to maintain control over assets by retaining ownership, or placing restrictions on the assets (such as through a trust).
• Accounts directly in the child’s name, custodial accounts, UGMA/UTMA, and some trust accounts, become under the child’s control at their age of majority (in California, at age 18).
• Parents should be wary of reducing their retirement savings to fund college.
• Various types of accounts have tax benefits, or penalties, for withdrawal to fund higher education expenses.
• Accounts have differing returns, risk, and fees, which may greatly affect their ability to fully fund college expenses.
• Funds inside a 529 Plan are subject to penalty and income tax if withdrawn for non-educational uses, with some exceptions.
• Multiple funding strategies may be used to take advantage of the varying options and benefits: for example, a 529 Plan to fund the first few years of college and an IRA to fund the final year.

make-your-money-work-during-your-retirement

Make Your Money Work During Your Retirement

Writen by Dakota Caudilla

For those of us who spent most of our lives working and earning money, retirement can be traumatizing. Despite fervent encouragement from family members to live a calm, peaceful and stress-less lifestyle, the retirement lifestyle is not quite the thing we’re looking for. That is, indeed, why some people continue to work until they are truly unable to. Some start their own small businesses, learn how to work or make some money on the Internet, or indulge in a hobby that can double-up as a business. For example, Fred Kearn, 68, couldn’t handle retirement although he had a pair of loving kids and quite a bit of money saved up for his retirement. Yet, Kearn, who is a golf enthusiast, decided to start a golf training school. The office? His home and the driving range. And Kearn loves what he is doing right now because he is not TECHNICALLY working and yet he continues to earn some money. The biggest benefit of working during retirement is that he gets to do what he likes doing and earning money for it - even when he’s already retired.

However, not all retired people have that kind of luck. For some, retirement spells trouble because they have no retirement fund and some even have young adult children to put through college. This could be a result of late marriages. But it’s not the end of the road for these retired citizens. Some of these retirees work part-time to earn some money, instead of willing their time and money away doing absolutely nothing.

Retirees basically look for work that is not as stressful, laid-back and is slower-paced - remuneration is not even in question. The lower salary is understood to be part of the deal, after all. But the most important part of about working after retirement is that it’s fun and stress-less. There is no urgent pressure to perform and climb the corporate ladder.

Some people spend their retirement days giving back to the community and society, providing consultation services and perhaps even indulge in mentoring and coaching services to those who are new in the related industry. This helps the retired person earn some extra money and retirement won’t be such a boring time of their lives anymore.

This will make all those young working individuals thinkit’s easy to dream about retirement and what you will do after retiring during those golden years. But when you’re right smack in the middle of it, it’s a whole new different story. Retiring is not much fun unless you’re doing something you like to do and have a retirement job that keeps you busy. So, it’s of no surprise at all that most retired citizens continue to work and seek MORE work so that they can easily pass time during their retirement years.

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