Evansblog

Just a few days ago Congress passed and the President signed legislation that was intended to put the limits on credit card companies and to protect the American consumer.  Much has been discussed about this issue and many are expecting the legislation to “finally” fix the imbalance in the agreement of lender and borrower when it comes to credit cards.  Not me.

 

Congress, in their effort to protect the consumer and, might I add, their need to keep their positive relationship with the credit card lobbyists, passed the bill that has the following items.

 

Interest Rates:

            Can not increase rates on new customers for one year

            DOES NOT stop the card company raising rates if your are late

            DOES NOT cap interest rates

 

Fees:

            Limits some fees

            DOES NOT stop fees

            Stops late fees when payment is on time but posted late      

            Allows companies to be more creative in finding new fees

            May push card companies to implement, or increase, an annual fee

 

Borrowers

            Companies may be more selective in who qualifies

            Limits on extending credit to those 21 or younger

  

Much is still to be learned about this legislation and what the credit companies will do in turn.  One thing you can count on – the credit companies are in business to make money off of you.

 

The fact is credit cards have become a way of life for

America.  Many find their dependency something that they can not live without.  Like the recent show, a credit card is their lifeline. 

The only way to not be taken advantage of by a card company is to choose not to do business with them or any of their competitors.  Get the courage and discipline to say enough is enough.  Life is so much better without them, their hassles and their monthly bills arriving in your mailbox requiring your monthly payments.

 

It is not easy, but you need to start your plan today.

It is tax time again.  Hard to believe that another year has come and gone and good ol’ Uncle Sam wants us to check in with him on the finances.

 

Like everything now days, we want to find a cost effective way of filing our taxes.

 

For the last decade, I have used software products like TurboTax, TaxAct and TaxPro just to name a few.  I have found that they really help me in correctly filling out my taxes.  Just like sitting down and answering questions from an individual, with these software products you are answering the same questions from the screen as opposed to a human being.  If you use the same product from year to year, you wil find much of the administrative information is picked up from your previous years filing.  That sure saves many key strokes.

 

These products are intended to not only help you file, but also make sure you are correctly filing and taking advantage of every deduction you are eligible for.

Depending on the level of software you purchase (basic to premium), you can expect to pay $30 to 75 dollars.  Obviously, this is less expensive than visiting a CPA.

 

A CPA may be the best choice if you have extensive deductions or have a business.  Your CPA should be knowledgeable in all the new tax laws so that you are well covered.  If you do not have a CPA, interview several so that you can find someone you trust.

 

Finally, “free” is my favorite type of service.  Did you know that if you meet the right qualifications you can prepare and file your federal taxes online for free?  That’s right – FREE!  Surprisingly enough, you can find these free offers at the IRS website.  By clicking here, you will find that the IRS has several companies that offer this free service.  The biggest qualification is that your Adjusted Gross Income for 2008 has to be at or below $56,000.  Check it out right here.

Well, its that time again.  The time we say good-bye to another year and welcome the new one in.  Time to reminisce about the year gone past and time to anticipate the opportunities a new year gives us.

Many of us decide to plan for the New Year and new opportunities by setting resolutions.  But, once again, we wonder how long they will last.

This time of the year is a very profitable one for weight-loss centers and workout facilities.  With all of our grandiose plans we signup for those things that we “know” are going to help us fulfill our resolutions.  In reality, over the next several weeks we are back to the same old routine we had prior to our resolutions.

What are your resolutions this year?  Losing weight?  Quit Smoking?  Making that career change?  Getting in financial shape?  What ever your resolution, what is keeping you from achieving it?

One of the biggest points of failure is a lack of planning.  Most people make their resolutions in the last few days, and even hours, of the old year.  Little thought, if any, is put towards how they are going to be successful in meeting the challenge of the New Year.

This year can be different.  Plan now to be successful in 2007 and in each year that follows.  Try these suggestions and make your resolutions come to reality.

First, change your resolutions to goals.  Goals are those things that we seek to achieve and we work hard to make them happen.  Making them goals sets each time in a different perspective and gives us something to go after. 

Begin with the end in mind.  Set your mind now that you are going to complete and succeed in your resolution.  Vision yourself successfully achieving your goal and what would be different about your life once you achieve your goal.

Track your progress.  Monitor your goals regularly and see how you are progressing towards your goals.  Pencil and paper, spreadsheet, white board and marker – whatever works for you.  Keep track of your goals, your progress and your completion.  Don’t be afraid to set dates and work towards those dates of completion.

Like so many objectives, we never make progress because they are so big.  Your goals may be that way too.  Make it easier on yourself and break down your goals into tasks or sub-goals.  As you complete the all the smaller tasks, you achieve your goals!!

Be aggressive towards your achieving your goals.  If you pursue it like you don’t really care, then rest assured you will probably let success pass you by.  Anything worth achieving should take our focus and energy.

Don’t forget to celebrate.  As you achieve your goals celebrate your success.  The ability to celebrate will help you to tackle the next goal with even more aggressiveness.

One of the great things about being the financial coach for FamilyNet’s Mornings with Lorri and Larry is that I get to meet many people.  Most are on the phone calling in with financial questions that we all would like to have answered.  In addition to Lorri and Larry, there are some great folks behind the scenes.  One is Tim Rhodes.

Well you might not know Tim, but here is your chance.  See, we are not only in a Presidential election but we are in a Savings election and Tim is my candidate.

On a recent show, Tim listened to me sharing with viewers how they obtain a higher rate of return on their simple savings.  Tim, after asking some private questions, decided to check it out.  What he found was money and notoriety awaiting him and his wife.

You see, he happened upon a savings contest that is being held at FNBODirect.com.  Tim was able to submit an awesome video and is now one of the finalists!!

You can help Tim and his wife by voting for him in the contest.  Lets do all we can to make sure one of our’s is the winner!  Forward this newsletter to your friends and ask them to vote for Tim too!

Click here to see his winning video, read more and VOTE!!

Click here to hear Tim interviewed on Mornings.

Is now a good time to buy more investments?  Well that depends on two things.  First, are you positioned to buy and, second, have you done your homework?

 I do believe, like Warren Buffet, that stocks are on sale.  What do people do when things are on sale at the grocery or department store – they buy.  They study what the sale items are, how much they are on sale and whether the price is actually worth what is being asked.

 Your own personal financial picture must be one that allows you to buy.  What I mean is you should be following the seven steps and if you are in steps 4 – 7 then it is a good time to buy.  It is important to make sure you have an emergency fund fully funded and no debt outside of your mortgage.  If you are not there yet, look at the current market as a sale you are going to have to pass up for the time being.

 

What to buy?  As we wrote last month, do your homework and diversify.  You should be spreading your money out over, at least, four different areas.  Inside those specific areas, mutual fund purchases bring an additional layer of diversification.  It is important to only purchase mutual funds that you have studied, are the best you can find and you have a knowledge of what they are invested in.

 Yes, it takes time.  Researching and finding solid funds to invest in will help you weather future downturns in the economy.  They are going to happen and you need to be ready to NOT panic.

 When I was younger, I used to love the roller coasters once I finally got my nerve up to ride my first one.  They are fun!  As you head up that first hill, things are so nice.  You are seeing the tree tops like you never saw them before.  Over there – that’s the river, the parking lot….we are getting higher and higher until we reach the top and we start down.  Wow, this is nice – slowly heading down, down, down until – the last car tops the hill and off we go.  We are moving to fast to see if there is a bottom and then, all of the sudden we are jerked back up another hill for another climb….  You know, I never got hurt on the roller coaster like I would if I had jumped off…

 Hang on for the long-term ride….

Many people I meet now are discouraged about their investments or the stock market in general.  They say that their investments have lost a great deal of money this year and they wonder, in many cases, if they should do something drastic like sell off, stop contributing, etc.

 It can be a very unnerving time in the world of investing.  It seems like yesterday that things were going like gang busters and all of the sudden it stopped.  Unfortunately, even the best of investors can not time the market perfectly.  Would that not be nice?

 Most of us invest on emotion.  Better said, we buy when the market or securities are up and sell when they are down.  On thing to remember is that we are all investing for the long term   Your expectation should not be to make quick money.  If it is, that will lead to bad decisions and very risky investments.

 Long term – what does that mean?  Simply put, do your homework on investments and investing in solid mutual funds while you diversify your investments. 

 Homework?  Look for solid mutual funds that have a long, successful, track record of delivering strong returns.  Having a fund(s) that have been around through economic ups/downs, political elections and fiascos, natural disasters and whatever may happen – and the fund can still deliver a great average return is something that should be looked out.

 There are other items to look at, but investing for the long-term is crucial.

 Diversification is simply spreading your investment money across multiple areas of the stock market.  Finding the best funds in these four to five areas will help you weather the investment storms that come up once in a while.

 Those storms may be small or large, but looking at the long picture helps us realize that the storm will not last forever!

It is here again.  That time of year that our kids typically dread – back to school time.  I learned this week, that one school district in my state has already started back!  My children, like yours, are dreading the return of school.  Truth be known, they are dreading the more disciplined approach to the day.  They do not like the thought of going to bed earlier and getting up earlier.  Yes, it will also be time to make their lunch and get prepared for the day. 

 As parents, we need to make sure that they are ready for school work.  Millions of dollars will be spent these next few days and weeks making sure they have paper, pens, pencils, binders, lunch boxes, crayons, etc….   Oh yea, don’t forget the new wardrobe.

 If you are a parent you know what I mean.  If you are the parent of a middle school child you know how bad the wardrobe piece starts to get.  They have to have the best name brand items that life will allow.

 Are you ready for the back to school supply push?  Have you figured into your August or September spending plan all of the costs of going back to school?

 We need to stay focused and purchase school supplies that are in tune with the spending plan we have built.  It is very easy to over extend and purchase all the things our children want, but what do they really need.  Work from a list and have set dollar amount son the list so that you are spending your money wisely and according to plan.

 Make sure that you shop from the approved supply list from your child’s teacher(s).  This will help you to stay on track to buy only what you can afford to pay.  Also, make sure that what you are requested to buy is really needed.  Feel free to question your child’s teacher.    

 The point is – stay on target!  Don’ go crazy and over spend.

 Finally, where you can, take advantage of your state’s tax free holiday.  In my home state of Georgia, the tax free weekend is this weekend for school supplies and clothing.  There are limits on the amounts, so make sure you know what you can and can not purchase.  Use the tax free time to stay under your budget. 

 If you are not in Georgia, when is your state’s tax free holiday?

 Enjoy your shopping and best wishes to a successful school year for your children.

It is hard to believe that July is here.  For most of us, it is hot, humid and hazy – summer is in full swing.  Before you know it, our children will be back in school, vacations over and we will be preparing for fall and winter.  Where does time go?

 Looking back, it was just six months ago that we were in a brand new year.  None of us really new what 2008 would hold.  All of though, in some way, had our plans for what we wanted to do this year.

 Some of those plans, resolutions if you must, were things that we failed to accomplish in 2007 but knew we would get to them this year.  “Good intentions”, I think, is what they are called.  How many of us have actually lived up to those?

 I prefer to call them goals and not resolutions.  In most cases, resolutions never get completed.  Goals, on the other hand, when really managed, tracked and worked to get done.  What were yours – goals or resolutions?

 What has all of this to do with finances?  Well, let me ask – what have you done about your financial goals or resolutions that you set six months ago?

 For some it was the year that you were getting out of debt.  You were tired of the ball and chain of debt and it was 2008 that you were going to do something about it.  Worry, stress, lack of sleep – they were all going to be part of your past because you were getting out of debt.  So how is that coming?

 For others it was the year that you were going to begin investing.  We are not getting any younger and the possibility of retirement is getting closer each day.  Getting money into investments now, in 2008, is going to help you take advantage of the investment principles that will make your money grow.  How is that coming for you?

 Still others are tired of having a mortgage.  You are tired of the thought of something happening to your number one investment and you are finally beginning the process of paying more on your mortgage to get it done and behind you.  How is that working out?

 Finally, some of you have decided that this is the year you are going on a paid for vacation or paying for your 2008 Christmas with cash.  How much do you have in those accounts so far?  Are you on track?

 I could have waited until December to write and send this, but what could you have done then?  By then the year is gone and you have no way to complete your goals.  Right now, there is still time.

 Get going.  Yes it is July, but you have almost six months to get back on track.  Review your goals and begin a plan to get them completed – this year – 2008! 

 We have all let the things of life get in the way.  Now is time to stop and get re-focused!

As we wrote last time, preparing for our earthly departure is not something that we want to think about day in and day out.  However, it is important that we do some planning   Not only is it important, but it will help those that we leave behind in a much better position to carry on.

There is one thing that will compliment all the items that were suggested in the last article.  This one item will really show those around you how much you love them.  In fact, I call it the “Love File”.  Every home needs one. 

 Most couples have the “primary” spouse – the one who typically takes care of all the necessary documents.  The other spouse is often left out, not because they do not have a need to know, but because we just don’t get around to it.  Having a “love file” will leave all the pertinent information, or directions to that information, in one location to be retrieved in a quick manner.

 While the primary reason for this file is for when we are gone, recent disasters have shown us it is a quick, timely way to keep track of our personal information if we were forced to leave our home quickly and needed to grab the important “stuff”.

 What do we need in this folder?

 

1. The Master Document – just an overview of all the documents listed in the file.  Some may call this an executive overview.
2. Account Information – a complete list of all checking, savings, investing and other financial accounts and account information
3. Benefit Documents – a complete listing of all benefit information.  Many spouses have no specific information on items from their spouses benefit plans – health insurance, life insurance, short/long term disability, 401(k)/403(b) plans and anything else that may be important in this area. 
4. Assets and Liabilities – a complete listing of all assets and all liabilities.  Any information specific to those items should also be listed.
5. Directions on Handling any Business Assets – if you have a vested interest in a business or partnership, any specific instructions should be documented here.
6. Copies of Wills, Living Wills, Powers of Attorney and Health Powers of Attorney copies of those documents, or specific instructions on where to find those documents will again help take some stress out of the situation.

 Make it a scheduled task to update this information any time information changes and definitely once a year.  A good time to remember to update the file is every year on your birthday – one day most of us keep track of.

 Place this file where it is secure, but accessible by the family members who may need to the information at some time.  It will be those that you love the most who will find this information helpful at a time when they need it the most.