Personal Finance

Top 10 Personal Finance Websites

December 12, 2014 By Sherry Tingley

Want to get the best personal finance advice from the best sources? These top 10 personal finance sites can help you manage just about anything from budgeting, investing and managing money to coping with daily financial decisions.

Forbes

Forbes has a lot of information about making good investments. They also publish an Investment Guide. They have 15 different people contributing to this guide. Some of the authors are from the Forbes staff and others are contributors that have had personal success in investing. All 15 articles are well worth a read. Forty four people contribute to the article base.

Money CNN

CNN Money has an array of video selections for you as well as a section called “Your Money.” Articles in this section – “Will you have enough to retire? – basically scare you to death unless you have the $1.4 million dollars saved that they recommend. There is also a section about the most popular videos. Apparently the popular videos rotate every time the screen is refreshed, but that shouldn’t stop you from playing – “Inside Google’s Billion Dollar Airfield.”

US News Finance

US News has four main sections: My Money Blog, The Frugal Shopper Blog, Alpha Consumer Blog, The Smart Investor and How To Live To 100. It also gives people a way to search for trustworthy financial advisors by state. They have divided their main topics into Banking & Credit, Debt, Saving & Budgeting, Family Finance, Taxes, Spending, Earnings and Identity Theft. Great way to categorize everything having to do with personal finance! They also offer a calculator on helping you determine if you are ready for retirement. Articles in their blogs are written by editors for US News Money as well as other qualified experts.

Wall Street Journal Finance

The history and reputation of the Wall Street Journal are well known. They have access to hundreds of thousands of archived articles and experts in finance. Their main categories are family finances, wealth advisors, taxes, retirement planning, real estate, autos, fitness and health. They also cover the main topics of stocks, funds, and bonds. The one thing they don’t have in this section is videos. Overall the information is highly relevant.

Daily Finance

Daily Finance has four main sections, keeping their design simple and not overwhelming. They have chosen the following categories: Plan, Save, Spend and Invest which are basically the only four options we have to “do” with money. Their stated goal is to help people to make smarter decisions about their money. The company has 2.5 million links pointing to them. They have 36 contributors from the community and 3 daily finance directors. It appears that they are owned by AOL.

Bloomberg Personal Finance

Bloomberg’s personal finance section is geared towards investors. They have some interesting sections: Tips From the Financial Elite, Savings and Investing, Retirement Planning, Real Estate and Taxes. This section of Bloomberg is really not an easy read. It lacks appeal for family types of financial decisions that many people need.

Kiplinger

Kiplinger is completely user friendly with lots of general articles to help with retirement, taxes, spending and savings. They have plenty of tools. Their household budget calculator is pretty standard, yet helpful too. Overall, it has coverage of all types of normal expenses like buying cars, choosing schools to attend, finding the best city to live in and a lot more.

Fox Business Personal Finance

The personal finance section of Fox has a lot of videos taken from Fox news. One video shared a story about a policemen in Michigan giving out presents instead of tickets. Inspired by people phoning in to the police station basically sharing their stories of hardship during the Christmas season. This program of giving was adopted to help give the police force a better reputation.

They have a good coverage of all topics on personal finance. Life Style & Budget includes articles from Dave Ramsey, the personal finance expert many have come to trust.

All of the sites we reviewed here are good sources of personal financial literacy and can help you get a better understanding of your own financial situation. What sites do you recommend?

Here’s The Scoop on Roth IRAs

October 27, 2014 By Twila Van Leer

Make saving money automatic every month. The easier it is to save the better for you in the long run.

Many Americans have a Roth IRA as one component in their retirement scheme, or rely on such an Individual Retirement Account as the mainstay of their plans.

A 19-year-old who began contributing $1,500 to such an account could expect to have some $608,000 by age 65, given 7 percent average annual earnings. That’s a healthy bit of money to support one’s post-employment years.

Of course, not every Roth IRA holder leaves his savings to accumulate that much retirement income, but the prospect of being able to make a large purchase (a down payment on a home, perhaps?) is also enticing.

Money goes into a Roth IRA and accrues interest completely tax free until it can be withdrawn, usually after the holder is age 59½ or older. Studies show that a Roth IRA usually is started by someone 18 to 39. There is no minimum age requirement so young people who have earned income are eligible.

The Roth IRA is one of few savings methods that allow putting after-tax money into an account and withdrawing it tax-free. So, if you began contributing the $5,500 allowable deposit this year, and maintained that level for 25 years at a 3 percent return, you’d accumulate $200,525, with $63,025 in tax-free earnings.

While the original idea behind IRAs was to build retirement security, this method of savings now is used by many individuals to put money aside for purchasing a home or paying for advanced education.

A Roth IRA involves income limits. Single individuals can contribute if their modified adjusted gross income is less than $129,000. The contributions phase out as modified adjusted gross income reaches $114,000. For couples, the limits run from $181,000 to $191,000 filing jointly.

Your Roth IRA contributions are not tax deductible, but the earnings grow tax-free. You don’t pay taxes when you withdraw from your account if it has been growing for at least five years.

Withdrawals usually begin at 59 ½ , when you become disabled or die (in which case the money goes to a beneficiary), or if you are purchasing a first-time home, which allows a $10,000 one-time withdrawal.

Traditional IRAs require that you begin withdrawing money at age 70 ½ , but Roth IRAs do not have that requirement. You can convert from a regular IRA to a Roth IRA, but distributions will be taxed in the year you do.

If you will be in the same or a higher tax bracket during retirement, the Roth IRA is a good option, but if you are in need of tax deductions now, a traditional IRA is probably your best bet.

Americans Admit Lack Of Personal Finance Savvy

July 16, 2014 By Twila Van Leer

Prepared — 8% of people surveyed feel they have a firm grip on their personal finance skills.

Most Americans believe they are not very proficient in managing their finances and one in four actually wish they could avoid the necessity altogether, a recent survey conducted by the National Foundation for Credit Counseling found.

Only 8 percent of the 644 respondents to the website survey said they had a firm grip on their personal finances. Thirty percent classified themselves as “mid-level management;” 35 percent as “entry-level” trying to learn the ropes; and 26 percent said they’d like to shuck the job entirely. Another survey by the foundation showed that 41 percent of the respondents would grade themselves at a C or lower in that area of their adult lives.

Most of those who were surveyed most recently and felt themselves inadequate to managing their finances also were under the impression that they were the only ones who were rotten at the job. But the truth is that many people are uncomfortable with the assignment, said Gail Cunningham, a spokeswoman for the foundation.

At the root of the problem is the fact that fewer than half the states require any education regarding personal finances to gain a high school diploma, Cunningham said. Most people learn from their parents, many of whom have the same lack of expertise when it comes to managing their money. It becomes a generational failing.

Many people seek financial counseling to help them, often after their finances are already in shambles. The typical household asking for counseling has $35,000 in annual incomes and unsecured debt of $17,500 spread over 5.7 credit cards. Poor management recently topped “reduced income” as the primary impetus for counseling. Poor money skills matched to poor nutritional skills.

Those who line up for credit counseling are primarily in the age range from 25 to 54, with young adults 25-34 at the top of the list (24 percent.) The lowest cohort was in the 45-54 age group, 21 percent of the total, while 23 percent were in the 35-44 age range. Those statistics indicate that financial problems are not uncommon all along the spectrum, boding ill for those who are still in the early stages of their work history. For some, recovery is a lifetime burden.

Other findings that cause concern for the credit counseling industry:

– Some people are earning more as the economy improves, but they are not managing the additional income well and the financial stress continues.
– Owing more than your income will support easily (a high debt-to-income ratio) makes it harder to meet debt and hinders future borrowing.
– The number of credit cards an individual or family has is not as relevant as how those cards are managed. Maxing out the credit lines is likely to reduce credit scores, impacting the ability to buy such things as homes or automobiles.

Last year, more than 1.5 million consumers sought help at the foundation’s counseling agencies, sharing concerns about debt, housing, budgeting and bankruptcy.

To learn about resources for free and affordable confidential advice, call (800-388-2227.) Spanish-speakers call 800-682-9832. Or visit www.nfcc.org.

Personal Chefs For The Super Rich

June 12, 2014 By Sherry Tingley

From Private Chefs Inc. — Foods served by the Private Chefs Inc.

Ever dream of what it would be like to have your own personal chef? One percent of the population can afford to treat themselves to this kind of luxury, while the rest of us, just dream about it. We may be driving Cadillacs in our dreams.

Costs: $2800 A Day

Private Chefs Inc provides the super-rich with culinary delights anytime they are willing to pay $2,800 per person for the convenience of a personal chef. Past customers like Aaron Spelling, Adam Sandler, Arnold Schwarzenneger, Beyonce, Bill Gates, Dale Earnhardt, Lady Gaga, Jerry Bruckheimer and George Lucas have been satisfied clients.

Founded by Christian Paier, Private Chefs is in the business of catering to the wealthy. The company provides clients with a personal chef for a day. The private chef consults with his clients about the menu, does the grocery shopping, meal preparation and kitchen clean up. They serve individuals as well as large groups.

Christian Paier, Founder of Private Chefs Inc.

So how did Christian Paier become skilled enough to satisfy the palates of the super wealthy? Christain Paier’s unique background in cuisine started at an early age. His parents, residents of a town in Southern Austria owned meat shops as well as restaurants and he was surrounded by quality cuisine. By the time he was fourteen, he knew he wanted to be a chef.

Executive Chef For A 5 Star Hotel

His official training began at the Hotel Kramer in the Austrian Alps, where he learned from the greatest chefs in Europe. From there he accepted a position at The Breakers hotel in Palm Beach Florida. At the age of 22, he became the youngest executive banquet chef in the hotel’s history.

After four years at the Breakers hotel, he began work at the trendy Rockenwagner’s in Santa Monica, California. Impressing many of his high profile clients he received many offers to be a private chef. One of the offers led him to an eight year job with “Hollywood Royalty.”

Founding Private Chefs Inc.

By 1995, he had created Private Chefs Inc. His company is currently well recognized, appearing in more than 50 magazines and newspaper articles as well as a television show. Forbes magazine says,

“About the last thing a new millennium mover-and-shaker needs to do at the end of the day is toil over a hot stove. Private Chefs Inc., a Beverly Hills-based employment agency, serves up in-home chefs to the fabulously wealthy.”

The 99% of Americans who can’t afford a chef from Private Chefs Inc., may have to resort to watching the TV show, “Celebrity Dish,” where you get an inside look at amazing recipes and lifestyles.

What Not To Buy In 2014

May 19, 2014 By Twila Van Leer

Save Money On Traveling — Extra Leg Room On Trips – Is It Worth The Price?

Technologies are changing and require more review of intended purchases if you’re in the market for products. Here is a list of products from around the web that you might want to avoid if you want to keep your money in your wallet.

1 – Landlines

Landline telephone services are rapidly being replaced by wireless phones. Two in five households had switched to wireless the first half of last year, up slightly from the first half of 2012. In the past decade, some 90 million adults, 38 percent of the population, became wireless-only. Scrapping the landline allows you to drop one of the monthly bills. And you needn’t be restricted to a cellphone. There’s Skype, which is free and puts you in touch with friends and family around the world via smartphone and other devices. FaceTime video may be free with a Wi-Fi connection. MagicJack Plus can be connected to a USB port, computer or regular phone router. It may cost $49.95 for the device and six months of service, after which the monthly service is $1.67 to $2.50 per month. Some folks may want to retain their landline as well. There is more security in case of disruptions caused by bad weather or other problems.

2 – GPS

Before investing up to $300 to purchase a GPS device, look at new developments that serve the same purpose. There are GPS apps on many smartphones, a fair number of them free to upload. A growing number of new cars come with a GPS option. Forty-nine percent of 2013 vehicles have a navigation system.

3 – Cable Television

Cable television is being replace by other technologies. Since 2004, subscribers to cable have been dropping out in favor of services such as Hulu and Netflix NFLX, which provide comparable service at a much lower cost. Using an Internet connection, consumers can stream many cable shows, news programs and sports events, as well as movies, directly to their TVs. Some channels offer access to programs through their websites. These services are available primarily to those who don’t care if their shows have been previously aired and who are willing to give up live programming.

4 – Hotel Rooms

The demand for hotel rooms, along with their rates, are going up. There are some alternatives, including apartments and homes where prices are lower and there is usually more space. The average daily rate at U.S. hotels is $110.59, up 4.1 percent from 2012 and 12.6 percent from 2010. The average is expected to rise to $115.68 in 2014, according to PricewaterhouseCoopers. Agencies such as Airbnb and Vacation Rentals By Owners, offer an assortment of homes you can rent. Some provide free airport pickup and drop-off services. This approach is particularly effective for large groups or families traveling together. Advantages may include many bedrooms and facilities for meal preparation. The downside: such arrangements usually offer less security than do hotels.

5 – DVD & Blue-Ray Players

DVD and Blue Ray player sales are down. Sales for DVD and Blu-ray units totaled 21.3 million in 20l2. That’s down 20-plus percent from a year prior and 24.8 percent from 2010. More people are opting to stream movies from Internet services such as Hulu and Netflix. Many gamers can use their consoles to watch DVDs.

6 – Computers

Desktop and laptop computers are becoming obsolete to a degree. Tablets perform the same functions and they’re portable. The price differential is considerable, with Apple’s IMac starting at $1,299, compared with an iPad at $299. Graphic designers and traders, obviously, will find it necessary to stay with large screens, but for the vast majority of users, the smaller versions fill the bill. Worldwide shipments of PCs fell 4 percent in 2012 over the prior year, an indication that PCs are losing ground in the computer market.

7 – Leg Room On Airplanes

Airlines are changing their approaches to giving passengers more amenities — for a fee. It has been common practice to provide an extra three to six inches of legroom in coach for an additional cost of up to $180. The seats often are in the exit rows or the first row in economy. But for a payment of $100 to $200, a traveler can be upgraded to business class, where seats are more comfortable and service is more accommodating. These are options that used to be reserved for frequent fliers, but now they are offered to any passenger willing to pay a bit more when they check in or at the gate.

8 – Credit Cards With Rewards

Credit card companies are altering rewards programs. Consumers should be wary now of promotions that offer rewards in points or miles. Many of the card issuers are requiring a greater outlay by the consumer to get the “free reward” they could have obtained earlier with fewer points. Many of the cards now come with annual fees ranging from $30 to $75. Instead, consider a credit card with a cash-back offering, a much more straightforward plan. The usual kickback is 1 percent to 5 percent of the number of dollars involved in the purchase.

9 – Digital Cameras

Digital cameras are suffering an identity crisis. With competition from cell phones with photo capacities and an expanding range of options for picture-takers with particular goals in mind, there is a confusing array of choices. Digital point-and-shoot cameras that have been the rage for years are seeing a decline in demand. Sales are down some 44 percent since 2012 and they’re expected to keep dropping. “Real” photographers are choosing larger, DSLR cameras, while those bent on action shots are finding models such as the Go-Pro best meet their needs. Be sure that what you get is what you really want.

10 – Credit Reports

By law, credit card reports cannot be more than $11.50 per report. Your credit score is often not included in these reports. You can order three different FICO scores – one from each credit reporting bureau – but it will cost you – $59.85. Some credit cards like Discover Card are showing customers credit scores every month when consumers sign on to their accounts. You can’t beat free credit scores!

As a consumer we want you to save money on all your purchases in 2014. If you know about other good savings tips, please share with us!