Take only the courses you need to graduate – Many college students end up taking classes they do not need for graduation. Sometimes when you can’t get into a certain class, you feel compelled to pick up a filler class instead.  What you should be doing is getting a part-time job for the semester and take the class next time it’s offered!  That or party

Avoid credit cards – Last year Sallie Mae released results from a study which tracked credit card use for undergraduate students. The information shows that college students are using credit for more than just convenience and many are graduating deep in debt. The negative consequences of using credit can hurt long before graduation. If you are paying high interest credit card debt while in college you are throwing away money that could be of much better use. Stop a bad habit before it starts and avoid using credit whenever possible. It will save money both now and in the future.

Buy used – A big expense associated with college are the books needed for classes. There is no need to buy all new textbooks when you can get discounted used books for much cheaper. In this age of technology you can also save money by buying digital or online versions of your textbooks. Books are not the only things that you can buy used so think thrifty when you are outfitting your dorm or apartment to save more money.

Graduate early – Consider taking additional classes (needed for graduation) or attend year round to shorten the length of time needed to graduate. The less time you are in college equals less money spend on the costs that go with it. This works as long as you keep a schedule that you can handle, otherwise it could backfire if you end up missing or failing classes. That being said, if you can handle the workload and shave a year or half year off your time you will end up saving money.

These are just a few of the ways you can save money on college expenses. Any steps you take to reduce college expenses frees up money in your budget for other things.

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Automated Forex Trading

If you are an experienced investor, you probably already know what Forex trading is.  You probably also already know that trading forex futures is a one of the quickest ways to bankruptcy court.  Unfortunately, the forex market is one of those things that holds a lot of appeal to beginners due to the extremely high earning potential involved (the lottery also has a high earning potential, but you don’t see many people recommending that);  however, investing in the foreign exchange market is not an investment strategy I recommend. The information provided here is geared toward beginner or less experienced investors to offer a basic overview of the system.

Forex is short for the FOReign EXchange market, a worldwide financial market that trades currencies. The bulk of traders utilizing this largest and most liquid financial market in the world are major players such as large banks, governments, corporation and other financial institutions. There is of course room for the smaller, individual investor, however be forewarned, this is a game that comes with plenty of risks and individual investors do not have the same advantages of larger organizations.

This is not to say individuals cannot succeed at the game, only that there are a lot of factors that individuals must consider before playing with the big dogs. Without going into too much detail, the main reason many individuals fail at Forex trading is due to the fact that it takes a lot of time, knowledge, skill and most of all plenty of risk capital to really make money from Forex trading.

No automated Forex trading system is going to be able to compete against the pros for the simple fact that the system changes far too quickly. Put simply,  this is not something you can simply “set and forget”. Many beginner investors purchase this software thinking they can turn it on, go about their day-to-day business and when they return they will be rich. That is not the case. As any experienced forex investors will tell you, there is much more to Forex trading then allowing robot software to guide you through the process.

Does this mean the software sold does not work?  Well, not necessarily.  It might.  But do you want to risk all your money to find out?  I recommend you leave forex investing to the professionals.

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1. Get Connected – Every investor can do better by bouncing ideas off of other investors and the best way to find other investors is to join an investment group. Not only can you run your investment ideas by other people, but it also gives you a connection to other investors if you decide to sell your properties some day.
2. Budgeting - Setting this up before you buy a property is key. It stops you from over spending and ruining any chance you have of making a profit on a property you buy. If you aren’t sure about budgeting and want some help then look for local investment property specialists to help you.
3. Fast or Slow – Slow and steady wins the race. I’m sure you’ve heard that before and with real estate investing it couldn’t be more true. Getting sucked into buying to many properties to fast, whether it’s to rent or flip can get you into trouble. I’ll let you in on a little secret…there is always another deal coming. You’re never going to miss the “last good deal”. Statistically there will always be another one and you have to remember that.

It doesn’t get much simpler than that. Do your homework, keep things in perspective, and invest for the long haul to give yourself a decent shot at a long and profitable career investing in real estate, or anything for that matter.

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If you qualify as a contributor to a Roth IRA, it is important you understand distribution rules in order to gain the maximum benefit from your retirement account. The term distribution is essentially the same as “withdrawal” in this case, which occurs when you take money out of your retirement account. As stated earlier, you can withdrawal contributions from your Roth IRA at any time without suffering a penalty. It is important to note that only contributions can be withdrawn at any time without penalty, the same rules do not apply to earnings from money invested. For example if your Roth IRA balance is $4,000- made up of $3,000 in contributions and $1,000 in earnings, you would be permitted to withdrawal $3,000 at any time without incurring penalties or fees. Should you find yourself in need of money at some point, this is an ideal situation compared to those who have their money tied up in a traditional IRA. The problem with this easy access to money is off course the temptation to withdrawal money for circumstances that are not emergency in nature. Remember the ideal place for your retirement contributions is in the retirement account where it can continue to grow and earn money toward retirement goals.

Tax Treatment of Roth IRA Distributions

How your distributions are taxed depends on whether or not the distribution is qualified or non-qualified. Here are examples of qualified distributions if the account is at least five years old.

• The contributor is 59.5 years of age or older.
• Limited to $10,000 per lifetime, distributions that are used toward the purchase or rebuilding of a first time home for account holder or qualified family members.
• Distributions made after the IRA account holder becomes disabled.
• Distributions made to beneficiaries after the death of the contributor.

Non-qualified distributions may be subject to income tax and early withdrawal penalties. It is important that all contributors to a Roth IRA plan understand all of the rules and penalties prior to withdrawing any cash to avoid unpleasant surprises later down the road.

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There are several short steps to follow to make sure that you are awarded the amount of money that you are entitled to by an insurance company.

Get The Other Driver’s Info

The first thing to do in an accident to like situation is to make sure you get all of the information from the other driver or property owner before filing a claim. One of the first things that insurance companies ask is where is the other individual insured. If it is an accident that takes place without another driver, contact the person that owns the property that the accident was on. If it is a public space, contact the county courthouse of the county that you are in.
The next thing you need to do is note if there are any witnesses. This can affect the claim because if there are witnesses, insurance companies may want some sort of testimonial or information from a third party that can verify that the accident was legitimate. Again, this is to make sure that the company is not being cheated. If there are no witnesses, then a police report will suffice, as police reports are non-partial and often the preference of some insurance companies.

Call Your (Or Their) Insurance Company

Once all of this preliminary stuff is taken care of, you need to contact your insurance company as soon as you can. Failure to report an accident to your insurance company soon after the accident happens can result in the insurance company questioning your claim and investigating it, making the process of getting your money or restitution take much longer than it should. Insurance companies normally do not do this unless it is absolutely necessary because they do not like to waste time either. The sooner a restitution check is written, the sooner that the policy holder can resume payments.

Get Your Vehicle To A Body Shop

As soon as possible, get your vehicle to a body shop recommended by a trusted friend or, as a last resort, by your insurance company.  It’s important not to take your car to a body shop affiliate with the other person’s insurance company (assuming it wasn’t your fault) since they will take every opportunity to cut corners on the repairs.  We’ve all heard horror stories of almost-new cars being repaired with junk-yard parts.  It happens, but it doesn’t have to happen to you.  Make sure the mechanic is one you trust.

After that, your insurance company will walk you through the rest of the process.  Since every company has different procedures, it’s impossible to generalize at this point.  good luck!

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Balanced funds, which invest in a combination of stocks and bonds (meaning they will never be on the highest-performing funds list), have been so effectively precisely because they are so boring.  Stemming from their conservative investment philosophy, the moderate losses suffered by most balanced mutual funds when the rest of the market is tanking helps prevent investors from panicking and shooting themselves in the foot by selling out of the market at the bottom.

Do Balanced Mutual Funds Still Have A Place In Your Portfolio?

Balanced funds are great, but they do have some pretty significant limitations in their traditional form.

• Difficult to fit into your asset allocation – If a balanced fund matches your desired asset allocation exactly, I suppose there’s no problem.   However, most investors will want to get more conservative as they age.  With the fixed stock/bond allocation of most balanced fund, that’s impossible without buying another fund.  And if you have to own two funds to get the allocation you want, that pretty much defeats the purpose of buying a balanced fund to begin with.
• Not tax-efficient – Bonds belong in tax-deferred accounts like a 401k or IRA.  Equities, on the other hand, can be held in taxable accounts.  With balanced funds, it’s impossible to get your asset location right.  You’re going to be tax-inefficient one way or another.  Sure, there are tax-managed balanced funds (VTMFX), but that only solves the problem if your entire portfolio is in a taxable account.  It’s just easier to invest for tax-efficiency with individual funds.
• Not truly diversified – Most balanced funds hold only two asset classes: domestic stocks and domestic bonds.  Many others hold a small allocation of foreign stocks, but that’s the extent of the diversification you can expect from most balanced mutual funds.  There are no small-cap stocks, very few emerging market stocks, no commodities, and usually not any real estate.

I personally don’t own any balanced mutual funds and don’t recommend most investors own one, either.  There are a few exceptions I’ve mentioned before, such as beginners owning the STAR Fund, but I think most investors are better off putting in just a little effort and constructing a diversified portfolio on their own (here’s mine).  But buying a balanced fund and sticking to it is light-years better than chasing the latest hot performer.  To each his own.

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Immediate Annuities Explained

An immediate annuity is an insurance contract wherein an insurance company agrees to pay you fixed sum of money for either  a specified period of time or, more commonly, the rest of your life in exchange for an initial lump-sum payment.  While there are many options to choose from (some worth paying for and some not) and nearly limitless insurance riders designed to separate you from your money, a basic, bare-bones immediate annuity is simple to understand and comes highly-recommended for older investors seeking stability of income.

There are various companies that provide immediate annuities to individuals (read How To Compare Immediate Annuities Online for more info). Many allow the option of a fixed or variable immediate annuity. A fixed annuity will pay the same amount in payments each month based on the initial deposit made. Choosing a variable immediate annuity plan, the actual investment should be monitored closer as there are several risks. Choosing this type of plan results in monthly payments based on the current market status; meaning if the market falls, so do your payments. For obvious reasons, these types of variable payout annuities are not recommended.

Where To Look

The internet is clogged with websites offering annuity quotes.  My favorite is ImmediateAnnuities.com.  You enter your information and the amount of money you have to invest and it will give you a rough estimate on the monthly income you can expect for a variety of common options.  You can then get quotes from several large insurers if you want, but I usually just use the site to get a rough idea of how much income you can expect to get from a given sum of money at prevailing rates.  It’s fun to play round with.

Which Annuity Options Do You Need?

Different individuals have separate needs so there are various structures for immediate annuities. Individuals that are married and wish their spouse to receive payments are able to choose a joint annuity or a single annuity; the joint annuity allowing the spouse to add and withdraw the same as the initial investor, while the single annuity is monitored and handled solely by the investor with designation of payments to the spouse after the investor has passed away. These can also provide payouts to the spouse on the basis of a specific percentage each month in either a fixed instant annuity or a specified percentage on a variable plan.

Immediate annuities are the only form of annuity I really recommend for most investors.  Depending on prevailing interest rates, you can buy a passive income stream that’s significantly higher than what you could reasonably expect from a portfolio of stocks, bonds and real estate.  The downside, of course, is that your heirs won’t get much if anything after you’re gone.  That, and the decision is usually irrevocable.  Choose wisely.

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Seek Legal Advice

Although lawyers are expensive, a qualified attorney can help you immensely when it comes to filing for bankruptcy. They can help you to determine the type of bankruptcy protection that makes the most sense and can also help you to fill out bankruptcy claim forms.

Decide On The Type Of Protection

While Chapter 7 is the most common type of bankruptcy, your individual circumstances may dictate that you file a different type. The type you choose will have an affect on how your debt is repaid and what types of assets will be used in the process.

Secure Financing For The Bankruptcy

You will need to spend around $2,000 for court fees and associated paperwork, so it’s essential that you have your funding together before filing. Of course, the $2,000 doesn’t include the amount you will pay to an attorney if you decide to go that route. Attorney fees will vary, so be sure to shop around for the best rate in relation to the service you expect.

File Your Petition

In order to initiate the bankruptcy process, a petition must be filed with the courts. The process can take up to 6 weeks, so it’s important to get the petition submitted as soon as possible. Of course, nothing should be done until you seek the advice of a bankruptcy attorney.

Bankruptcy is a major financial decision that must be considered carefully. Before jumping into the process, it’s critical that you follow the advice given above. It’s also vital that you seek professional advice through a qualified and well respected bankruptcy attorney.

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It Pays To Be A Good Student

Car insurance premiums are higher for young and inexperienced drivers. Students who maintain a B average can receive a good student discount from most major insurers. In addition to the good student driver discount there are also discounts available for college or university graduates. By taking advantage of these discounts students can offset some of the costs associated with being a new driver.

Your Credit Counts

We all know the importance of having good credit. The benefits of managing your money well go beyond interest rates on credit cards. Insurance providers can and will view your credit score and base their rates on the information they find there. If you have good credit you will see better rates than those who have managed their finances poorly in the past.  I recommend using annualcreditreport.com to get a free copy of your credit report.

Customer Loyalty

There are certainly benefits to shopping around for the best policies, however there are also benefits to sticking with your current provider. Insurance companies look favorably on customers who remain loyal by offering lower rates. It’s also smart to bundle all your insurance policies with one provider whenever possible. If you have your auto and home owners insurance with the same company you will likely be rewarded with a discounted rate, usually called a multi-line discount (warning, but these discounts aren’t always the best deal!).  As an example, I saved 10% off both my homeowners and auto insurance policy by using Allstate for both policies.

Safety And Usage

Safe drivers are rewarded with lower insurance premiums. This makes sense considering drivers who do not get in accidents cost less for the insurance company to insure. Another factor that will reduce your insurance bill is the type of car you drive and how often. The lower your annual mileage, distance to work and safety features on your car will reduce how much you have to pay in premiums.

The best way to get a great deal on car insurance is to simply ask your insurance provider what discounts are available. Take advantage of those you qualify for and consider what you can change in order to qualify for the others. The money you save on car insurance can then be used elsewhere in your budget to achieve other financial goals.

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IRA Types

The original Individual Retirement Account was developed and established in 1974. Since then there have come into existence several additional and different types of IRAs which have their own set of IRA rules. Some IRAs may fall under self-provided plans or employer-sponsored accounts.

• Traditional IRA – The contributions to this plan are normally tax-deductible (frequently simplified as “funds deposited before tax” or “contributions accomplished with pre-tax assets”). All transactions as well as earnings within the plan have no tax impact, and distributions at retirement are taxed as earnings. Depending on the type of contribution, a traditional IRA may be called as deductible or non-deductible IRA.
• Roth IRA – This IRA type is different then a traditional IRA and there are different Roth IRA rules that you need to be aware of. The contributions to Roth IRAs are completed with after-tax assets, thus all transactions within the plan have no tax impact, and distributions are commonly tax-free. The main legislative proponent of this retirement plan is the late Senator William V. Roth Jr. of Delaware.  See Choosing The Best IRA For Your Needs:  Traditional Or Roth for more information if you’re struggling with the Roth vs Traditional IRA decision.
• SIMPLE IRA – The Simplified Employee Pension Plan permits both employees and employers to make retirement account contributions with simpler administration and lower contributions. But even though it is called an IRA, it is treated distinctively from Individual Retirement Accounts.
• SEP IRA – This is a retirement plan that authorizes an employer, normally of a small enterprise or a self-employed individual to complete retirement plan contributions into a traditional IRA. The account is named after the employee instead to a pension account in the name of the company.
• Self-Directed IRA – This retirement account lets you as the account holder to acquire investments through your retirement plan.

There are two extra subtypes of IRA accounts, known as the conduit IRA and the rollover IRA, which are deemed as obsolete by the current tax policies since their features have been integrated in traditional IRAs (see IRA Rollover Rules). However, this tax law will expire unless lengthened by the Internal Revenue Service (IRS).

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