Top 5 Savings Accounts Online ' Start Making Interest Today!

My savings account is paying me more interest than I can handle.

Haha- yeah right!

For the past several years my clients have been griping (me included) about how their savings accounts are paying next to nothing.

Many feel like they are paying the banks just to keep their money with them.

Can you relate?

Looking for a top savings account to stash away some cash for a future financial goal should be part of your financial strategy.

Saving for future purchases and expenses is one of the best things you can do to stabilize your financial situation.

Whether you are saving up an emergency fund or just preparing to spend money on a nice vacation next year, you need a great savings account to hold your money.

What to Look for in a Top Savings Account

There's no need to let your money sit in an account that doesn't pay interest. That's one of the worst things you can do with your money because the value of your money will slowly go down due to inflation. You need to generate some interest to combat inflation just to maintain the spending power of the money you have.

Then again interest isn't everything. So what exactly should you look for in a top savings account?

Interest ' High Yield

For me, interest comes first. Generating interest helps protect your money from inflation. Even if inflation is really low, getting some small interest on the side will help you bolster your account over time. Interest isn't the only important factor, but it never hurts to have someone paying you to store your cash with them.

Customer Service

Having great customer service is another key aspect of a great savings account. If you earn a little bit more interest at one bank but the customer service is awful you will probably regret it. I like to stick to firms that have solid reputations or that I've had previous experience with.

Access

Lastly, you want easy access to your funds. If you have to jump through a lot of hoops to pull money out of your emergency fund during an emergency' you won't exactly be thrilled. Do you have to go to a physical branch? Or can you transfer funds online using your smartphone? Access can be a tiebreaker when you are comparing two very similar banks.

Five Top Saving Accounts to Consider

Here are five great saving accounts to consider.

Ally Bank

Ally Bank is one of my favorite banking institutions. (Yes, we bloggers are a weird bunch and have favorite banking institutions while the rest of the world goes about their normal lives.)

Why do I love Ally so much? Let me quote myself from an article earlier this year, Best Online Checking Accounts:

Ally Bank was built on the premise of getting rid of all the crazy fees that normal banks charge while giving customers great rates and great customer service.

I mean, seriously? How can you not love that? A bank that is fighting to end banks gouging customers will get my vote every time. In the linked article above we told you how great Ally's checking accounts were, but the saving options are great, too.

Here's what you get with Ally:

• Industry leading high yield interest rate. You won't earn more interest with a reputable online bank.
• No minimums. At all. That means no minimum deposit, no minimum balance requirement. No minimum balance fees. In fact, you can open an account with as little as $1.
• Easy deposit options. You can fund your account or add additional deposits via easy online transfer from your current bank, mailing in a check, wire transfer, or simply scanning in your deposit.
• Easy access and management. The user interface is top-notch and you'll be able to transfer funds to and from your other bank easily.
• Other account options. You can start with a savings account and grow your finances with Ally. They offer a robust set of accounts ranging from checking to savings to CDs and IRAs.

ING Direct Orange Savings Account

I've had an account with ING Direct longer than I have with Ally, to be honest. That's because ING Direct was one of the first reputable online banks to exist. As with any industry they now have some stiff competition from Ally, but I still love them.

Here's what you get with ING Direct:

• Extremely competitive interest rate. The difference in rates between Ally and ING is so small most people wouldn't notice. If you aren't seeking absolute best interest and are looking at the bigger picture, keep reading.
• No minimums. Like Ally you won't be hit with any minimum balance fees nor will you have to send a ton of money to open an account. You can open an account with as little as $1.
• Easy deposit options. Opening an account is easy ' you just link a checking account from another institution like you would with any other bank. Then you transfer your funds over.
• Easy access and management. ING's user interface is one of the best around. One of the unique things ING offers is 'sub-accounts' where you can open up mini-accounts to hold your saving goal money. So you can have a main Savings Account, but have mini-accounts for Vacation Fund, Emergency Fund, and so on.
• Other account options. You can start with a savings account and grow your finances with ING. They offer a robust set of accounts ranging from checking to savings to CDs, mortgages, and investing.

American Express High-Yield Savings Account

Yes, American Express, the credit card company that offers fantastic cash back now has a banking arm that offers great interest on your account.

Rates are currently very competitive with some of the larger, well known online banks. Account access is not as sophisticated, but again they are only offering two simple products. If they had a full suite of financial products like mortgages and checking accounts on top of the savings account and CD I will be more stringent. But this is a pretty basic product: deposit money, earn interest, watch it grow.

AMEX also has a 36-month CD that you can drop your money into to earn a slightly higher rate of return. However, the difference is so small that I can't recommend locking your funds up for 3 years. (If you elect to close a CD before its maturity date you pay back 3 months of interest. That's dumb.)

Here's what you get with AMEX's High Yield Savings Account:

• Great interest. To attract customers, American Express often has some of the highest interest rates available.
• Simple options. You have two account options: high-yield savings and certificate of deposit. Two simple choices rather than an array of confusing options.
• No minimums. You don't have a minimum balance requirement, and you don't get hit with a fee for letting your balance get too low.

Whichever way you go, you'll end up with American Express' renowned customer service to back you up. You probably won't need it, but it is always nice to know it is there.

Discover CDs

Just like American Express, Discover has gotten into the banking business. Their rates are competitive with other online products, so it is definitely a firm to include in your search for a top savings account.

The product offerings are similar with Discover, but we really like Discover's online CD. The rates on the CDs are very nice compared to some other players in the industry.

Here's what you get with Discover Bank's Online Savings account:

• Great interest. To attract customers, Discover often has some of the highest interest rates available.
• Several account options. You can start with a savings account and expand to an online certificate of deposit, IRA CDs, or a money market account.
• Low minimums. This is the only place that you might downgrade Discover on a bit. The other institutions above require no minimum deposit to open an account. Discover requires a $500 minimum deposit. However, there are still no minimum balance requirements or fees for going below $500, so it isn't much to worry about.

1000th Post Giveaway!

Pinch me. I think I'm dreaming'..

When I first started this blog almost four years ago, I never'.I repeat'.NEVER thought I would ever get to 1000 posts.

At the time, I had no idea what a blog was. None!

I thought a blog was to be on Myspace. Haha!! So much has changed.

Now blogging is very much a way of life ' I love it!! In fact our household loves it! My wife has her awesome blog, House of Rose, and we started a blog together, Dollars and Roses.

And although my kids don't know it yet, I've already bought them their own domains. Yes, I'm serious.

Blogging is definitely here to stay so that's why I'm excited to do this awesome giveaway celebrating my 1000th post. Holla!

Tell me about the giveaway already!

Okay, this giveaway was totally impromptu. First, I want to thank my awesome wife for helping me put this post together. Her mad camera and Pic Monkey editing skills capture exactly what I envisioned for this post. Thanks baba!!

First prize:  $20 In-N-Out Burger gift card. 

 

If you live on the west coast, I don't have to tell you how great this burger is.  If you don't, then what hole have you been living in?!   For those that don't know, let me share with you how great In-N-Out Burger is.   Mmmm'.Double-Double with cheese, please!

I realize that if you don't live in a state that has In-N-Out, it will be hard to cash in.   If you win, this just gives you a viable excuse to visit a state that does.  You'll thank me later.

Second Prize: 4 Hours to Change Your Life

 

Tim Ferriss' book Four Hour Work Week is one, if not, one of the greatest books I've ever read.  (You can read some other great books for entrepreneurs).  This book has completely changed the way I approach my life and business.  It is a must read, hence; why I'm giving it away.

Third Prize: 3 Pack of Inspiration

Some people are just born to be leaders. They infect you with pure optimism and after you meet them you can't help but walk away feeling better about yourself.    One such individual is Ben Newman.

I've had the privilege of meeting Ben and becoming great friends with him.  Before I met Ben, he had already finished his first book, Fight the Good Fight.   Since then he finished his second book, Pocket Truths for Success.  And his third book, Own Your Success is being published by Wiley.  Go Ben!

I'm so proud of this guy and can't help recognize him for his constant enthusiasm.  So one lucky winner gets all three of his books. (Note: his third book is not released yet, so you'll get it as soon as it's released.

Fourth Prize:  The Sexiest T-Shirt Ever!

If there was a title for the 'Sexiest Personal Finance T-Shirt', this one would be it and I'm proud to say I'm an owner.

This shirt is inspired by J. Money from Budgets are Sexy and thanks to Brad from Enemy of Debt, one lucky ' VERY LUCKY ' individual will be able to sport this shirt and show it off to all your family and friends. (Note: Your shirt will be gray with black text ' pure stylin'!)

The Grand Prize!

This is definitely not the best gift of the giveaway'. I mean look at all those awesome gifts above!

One person gets to go on a shopping spree at Amazon.com in the tune of $250. Check it!

Here's How to Enter

Below you'll see all the different variations to win. If you have any questions, just let me know.

Good luck and thanks for being a reader!!

a Rafflecopter giveaway

The Cheapest and Simplest Chicken Pasta Recipe You've Ever Seen

This recent Valentine's Day I wanted to surprise my wife by cooking a romantic dinner at home.   The last several years we've gone out to eat at various restaurants have been disappointed with the quality of the food and the price we had to pay for it.   Seeking ideas I hit the web and found a neat recipe for Chicken Piccata at my buddy JD's blog Get Rich Slowly.   He had an article entitled Recession Romance and shared some other neat ideas to celebrate V Day without breaking the bank.

When it comes to new recipes, I'm a sucker for any Italian dish, so this recipe was right up my alley.   The one slight change that I implemented was I wanted to make it a pasta dish so I added some thin spaghetti to the mix.  

If you're looking for a new tasty recipe, I encourage you to give it a try.

If you're looking for a tasty shrimp pasta recipe, head over to Gen X Finance for a recipe I shared earlier.  Without further ado, here's the the step by step instructions as well as an idea on how much it is going to cost.  Time to hit the kitchen to try out this chicken pasta recipe!

List of Ingredients and Cost of Chicken Pasta

Most of the ingredients are already found in our cupboards, hence why I didn't include those prices.   The only additional purchase was a bagged Caesar Salad that cost $4.49.    With the salad included, the entire dinner cost me $14.84. That's it!    It's the cheapest and probably the best V Day meal I've ever had.

Chicken Piccata Pasta Directions

If you're not a professional lemon squeezer (as I'm not), I suggest you buy a few extra lemons.   Plus, if you're using my pasta idea, you'll need some more lemon juice for the sauce.

Preparing The Chicken

Sprinkle both sides of chicken with salt and pepper.   Dip the chicken into the flour to get a decent layer around it.

In large sauté pan, melt 2 Tablespoons of the butter with the olive oil over medium-high heat. Add chicken and cook just until browned, 3 minutes per side. Transfer chicken to a plate.  At this point in time, you can also start boiling the pasta.   I chose thin spaghetti, but any pasta will do.

Cooking The Chicken

Add broth, lemon juice and capers to the same pan. Here's where you could add a bit more lemon juice and broth to make sure you have enough for the sauce for the pasta.  Bring broth to a boil over medium high heat, scraping pan to get all the good crusty bits.  Return chicken to the pan and simmer 5 minutes.

Transfer chicken to plates or platter.  Remove pan from heat.   Add remaining 2-4 Tablespoons butter to sauce, whisking to melt.  This is where you want to make sure you have plenty of liquid for the sauce.   Since the original recipe that I got didn't account for the pasta, I literally used every drop of the sauce from the pan.   Next time I'll be sure to add the extra butter, oil, stock and lemon juice to make sure I have enough.

Serving The Chicken Piccata Pasta

Pour sauce over chicken and garnish with parsley.  That's it!   It really is as simple as it looks.   It has to be rather simple, because even I pulled it.   Doesn't it look yummilicious?

Spouse Approval of The Chicken Pasta

The other true test was impressing the wife.  Trying new recipes has the same level of excitement as apprehension, especially on Valentine's Day.   What was the final verdict?   Take a look at the beautiful smile below.   She loved it! Matter of fact, so did I.   I wasn't sure about the lemon flavor since it's not in my usual cooking arsenal, but the overall taste was fantastic.  Just doing this post, makes me crave it all over again.

Give it a try and tell me your thoughts.   Nothing like getting some feedback from the readers.

Tagged as: cheap pasta recipes, chicken pasta recipes, chicken piccata, Simple chicken pasta recipe

Start Saving For Retirement Today: Best IRA Online Brokers

As a financial advisor one of the biggest frustrations about our industry is for the young investor that want to get started investing into an IRA.

Why is it frustrating?

Because most big firms don't want to help new investors.

Otherwise known as 'small investors'.

Yes, you can walk into an Edward Jones office and open an IRA, but you're going to have to pay an annual custodial fee.

They aren't the only ones.  All big brokerage firms will charge $40-$75 per year just to have the account open.

In addition, some firms will charge you a small account fee if you don't generate enough commissions or fees or the year.

Over and above that, you're either going to have to pay a commission for each mutual fund, stock or ETF trade that you place or you have to pay an advisory fee which will be anywhere from .75% to 1.5% of your account balance.

Cha-ching!

As you can see, yes you can open the account with a big brokerage firm, but they're going to gouge you in fees making it nearly impossible for any new investor to make any money.

So what's the alternative?

Open an IRA with an Online Broker

Introducing online brokers for your IRA. Having started in a big box brokerage firm, I was oblivious to all the online options that exited. Yes, I've heard of Fidelity. Yes, I've heard of Vanguard. And, yes, I've heard of E*TRADE, but I had to admit I really didn't know how it works opening an account with an online brokerage.

Originally I started doing some investigating and was almost blown away at how cheap and easy it is to open an IRA with an online brokerage. Most of them don't charge any account fees. They won't ding you if you don't have a small account size and even more impressive was that most of them offer customer support whenever you need it.

If there is a downside, you don't get the option of actually going to an office and sitting down with an advisor, but even places like Scottrade offer that. In this post, I want to do a quick rundown of some of the best IRA brokers that you can open up an account with online today.

Online Brokers with Most IRA Options

If you're looking to open an IRA with an online brokerage firm, you have a lot of options. Here are some of the best ones to choose from and why we like them so much.

Open an IRA with Scottrade

Scottrade is one of the best online brokerage firms around. Why? Because not only is it an online brokerage firm with extremely low trade costs, but you can also go to a local Scottrade office to talk with a broker directly if you like. It's like getting the best of both worlds: $7 trades (some of the lowest around from a major brokerage) and in-person help when you need it.

Scottrade lets you trade stocks, options, mutual funds, ETFs, bonds, CDs, and Treasury products. The more complicated and niche investments like futures and forex are not available, but the average investor won't need either of those.

Open an IRA with E*TRADE

If E*TRADE had local branches it would be tied with Scottrade.

However, if you're looking for some of the best online trading tools available and a firm that has been in the industry for a long time, E*TRADE is a great choice. Pricing is just slightly higher than Scottrade's at $9.99 per trade, but some of the additional tools you receive can be worth it.

With E*TRADE you can trade everything from stocks to bonds, mutual funds, ETFs, options, futures, and forex.

Plus, right now E*TRADE is letting you trade absolutely free for 60 days. If you transfer enough money to them they'll also give you an account bonus starting at $50 for transferring $25,000. (The maximum bonus you can get is $500 for transferring $250,000.) To receive this offer use the banner below.

Open an IRA with Vanguard

Vanguard is a fantastic firm with a 'slow and steady' mentality. I would rate them higher, but their brokerage firm costs are a little pricey and the number of investment options is not quite as diverse as the ones above.

That's because Vanguard is all about indexing and low costs. If all you need is to open an IRA and grab a few index mutual funds or index ETFs, Vanguard is a great choice. If you're looking for exotic investments or to trade a lot of stocks, it may not be the best choice.

The fee commission structure is based on how much money you have in your account. Trades start at $7 for the first 25 trades, then jump to $20 per trade, if your account balance is less than $50,000. After that the fees get a lot lower: trades at $7 if your account has less than $500,000 in it, then $2 up to $1,000,000, then free or $2 depending on how many trades you have.

Open an IRA with Zecco

Zecco is an interesting firm because it was one of the leaders in drawing down commission prices across the board. The firm recently merged with TradeKing which used a similar strategy. Stock trades start at $4.95 per trade and you get access to stocks, ETFs, bonds, mutual funds, and options. These are the lowest trades available from a reputable company.

Open an IRA with ShareBuilder

ShareBuilder is a great company to open an online IRA with if you are just starting out and don't know what to invest in. The company's existence is tied to helping you automate and build up the habit of investing. Your Roth IRA or IRA is a great place to learn that habit.

The investment options are basic as well, but should meet the needs of most investors. You get access to stocks, ETFs, and mutual funds.

Trades don't get any cheaper than at ShareBuilder. If you set up automatic investing your stock and ETF trades are only $4. That's incredibly low and a nice way to start out building a new portfolio in an IRA. If you need more of the crazier investments like futures, options, and forex then ShareBuilder isn't for you. For everyone else, this is a great way to start your IRA investing.

Plus for a limited time you'll get a $5o bonus when you open an account and fund it with more than $2,000.

Open an IRA with Betterment

Out of all of the brokerage options listed here Betterment is likely the award winner for most unique.

What exactly does that mean? Well, Betterment is an online brokerage firm whose goal is to make investing as simple as possible. With so many options out there: stocks, ETFs, bonds, index funds, actively managed funds, and a multitude of other niche products, investing for retirement soon becomes a complicated mess of alphabet soup.

Not so with Betterment. The company essentially has one big account and then a meter between how risky and how conservative you want your portfolio to be. That's your only choice. The company then invests in a basket of either stock ETFs or Treasury bond ETFs depending on the allocation you choose. You don't have to pick the individual investments. The only choice is what percentage for stocks and what percentage for bonds.

It's simple, easy, and makes sense for those that want a 'set it and forget it' investing style. Fees are low ' but are based on percentage of assets invested. Fees range as low as 0.15% of assets invested to 0.35% of assets invested. That's equivalent to as much as $35 on a $10,000 balance to as little as $15.

Plus, for a limited time if you open an account Betterment will give you a $25 account bonus for free.

Tagged as: Betterment, E*Trade, online brokers, Open an IRA, Rollover IRA, Roth IRA, Scottrade, Sharebuilder, TradeKing, Traditional IRA, Vanguard, Zecco

Saving For Retirement ' When is 'Late', TOO Late?

Today millions of Americans are entering retirement age without enough funds to allow them to live the lifestyle they once did.

While we are told to start investing early in life, many of us do not for one reason or another.

Over the years I've talked to many individuals that 'wished they would have saved more' and 'wished they would started earlier'.

There's a sinking feeling when retirement is approaching and all you have is regret for your past financial misdoings.

If you find yourself approaching retirement age and have not yet looked at your retirement needs or started saving for later in life, it's not too late.

But'.you need to take action NOW.

The longer you wait, the harder it will be.

Read on for some great tips to help you get started.

Know It Is Never Too Late

Many people who did not start saving when they were younger ignore the situation thinking that it is now too late to get started.

This is not true.

While it certainly may be more of a challenge to save all the funds you will need, it can still be done.

I've had many people contact me in their 50's and, some well into their 60's, that have realized that they haven't saved nearly enough.  They fear that they will never be able to retire.

I'm quick to encourage them that retirement can become a reality, but they have to make changes immediately.  They also have to realize that an early retirement is not a reality.   They'll have to work work well into their late 60's and maybe 70's to make up for the shortfall.

Look At Your current Situation

The first step you will want to take is to look at your current situation and determine how much money you will need to have saved to live a comfortable retirement. You can find retirement calculators on the Internet or work with a financial advisor to determine a figure. Once you come to a number you now need to take action immediately and create a savings plan.

If you're a chronic spender, it's imperative to stop buying crap.  Think you need the latest iPhone?  Think again!  You've lost that priviledge when you failed to starting an adequate savings plan.

Look At Savings Options

It will critical for you to start saving as fast as you can. If you already have retirement accounts you will want to make sure you are maxing out your yearly contributions.  No exceptions.  You may be able to take advantage of pre-tax catch up contributions so be sure to check your account for details. Most accounts allow you to do this once you reach age 50.

You may also need to open additional accounts in order to save what you need. Many investors suggest looking at Roth IRA's as a retirement savings options. No matter where you decide to invest your money make sure you have a diversified portfolio that will guarantee a steady return on your contributions.

Look At Money Saving Options

If you are getting a late start at saving you may struggle to save the amount you need to each month. Here are some tips that might be helpful.

• Look at ways to make some extra money. Do you have a hobby or interest that you could turn into a part time job or do you have a skill that others are looking for. Be creative and see what you can come up with.
• Can you downsize? Look at your current living situation and determine whether or not you might be able to downsize. If you have kids who are now older and moved out, you may not need to stay in such a large home.
• Do you have large ticket items that you no longer need or use? If for example you have a boat, a camper or other big ticket item that is not being used, now may be a good time to sell. Take the money and invest it in your retirement account.

It's Not Too Late

No matter your situation, it's never too late to take charge of your financial future. But only YOU can make it happen.

Tagged as: late retirement savings, late savings for retirement, retirement savings, saving for retirement late

5 Ways to Screw Up Your Life Insurance Purchase

All of us want to save money on our insurance rates and most of you folks out there want to do so legitimately.

Sometimes, even those individuals who are honest and forthright can pull one of the bonehead mistakes below.

And for the select few of you who thinks it's a good idea to scam or pull a fast one on the insurance company' we've got news for you below as well.

Here are 5 things you should never do when applying for life insurance.

1. Lie on your Life Insurance Application

This one may seem like common sense, but it's not.

Life insurance applications ask you a bunch of health related questions.  Some questions are pretty innocent like asking you if you've been to the doctor or hospital recently.  You might be thinking that they have no business asking you this, or they don't really need to know, or perhaps you are afraid that if you tell them the truth about your health history, they may penalize you on your rates.

Folks, the insurance companies don't care if you had to be treated for the flu, or had your ingrown toenail fixed.  They're not going to penalize you for these, but you still must disclose it, or risk a potential contested claim (see three paragraphs down).  They would only penalize you for major medical impairments that could have an impact on your life expectancy.  They want to know if you have heart disease, diabetes or if you smoke, meaning those things that can shorten your life.

Some people think that after they've been turned down, or were charged higher rates if they've been approved, might be of the mindset to apply elsewhere.  These are the people who try to get clever and figure they can simply lie on the next application form.

Here's a news flash so you don't make this dumb mistake.  First, the insurance company is going to request your medical records from your doctor, and second they are going to access health information about you from the Medical Information Bureau (MIB).  The MIB is a database where all the insurance companies share information which includes medical details from insurance applications.  They do this to prevent fraud.

Finally, you should know about the 2 year contestability clause.  Any death claim that occurs within the first 2 years when a policy goes into effect can be fully investigated by the company that issued the policy.  

If they can prove you lied on your application, they can contest the claim (not pay the claim).

 

So, don't be foolish and think you can second guess the insurance company, and don't try and outfox them.  You won't win.

2. 'Putting Off' Your Life Insurance Purchase to Drop a Quick 20 lbs

You are ready to apply for life insurance, but your agent tells you that you're over the weight limit for the best health class by 15 pounds.  You might be thinking that if you drop some weight real quick then you might 'fit' within the weight limit and qualify for the best rates available.  So, you go on a crash diet to try and drop 15 or 20 pounds.

Here's the problem.  Every insurance application asks if you've lost more than 10 pounds in the last year. They also know that people who drop a bunch of weight real quick put a lot of it back on not long after they stop dieting.  The best you can expect is they will only credit you with half of what you lost.  So, if you dropped 20 pounds before the exam, then you only get credited with 10 pounds.

If you were able to lose a quick 20 lbs, while this likely will improve your blood pressure, blood results, and overall health, I still would Never recommend you postpone applying for life insurance to drop weight for 3 reasons.

Obviously, there's also the small risk of death while you wait.  Yeah, that's a little dramatic, but you never know.  Another possibility is you develop some sort of medical condition during your weight loss that raises your rate or makes you uninsurable.

The bottom line is that in 99% of cases, NOW is the best time to apply for life insurance.  

You can always put the insurance in force now, and then a year later ask the company for a rating reconsideration as the new slim and trim version of you, and will be able to save money then.

3. Enjoying a Cigarette Here and There

Cigarette smoking is a tough habit to kick.  Every now then, you might have a minor lapse and have a butt at a party.  You might still consider yourself a non-smoker and hey, so what?  It was just one lousy butt right?  Nope!  Even if you only smoke one lousy cigarette a year, 99% of insurance companies still consider you to be a smoker.

You have to be 100% completely smoke free for at least a year with most insurance companies to be considered a non-smoker.

Don't lie about this because if they happen to find out you were an occasional smoker while investigating a claim, your family will suffer the consequence because the claim could be challenged.  It's not worth the gamble.

As with the point on weight loss, just bite the bullet and pay the tobacco rates until 12 months have passed from the time of your last cigarette, then request a rating reclassification from the company.

As a side note, there is one insurance company that will allow up to 24 cigarettes and still give you the non-tobacco rating.  See Non Tobacco Rates for Occasional Smokers.

4. Plan an Exotic Vacation

Many people want to travel and see exotic places.  Many of these locales are safe, but some are not.  Dangers that lurk can be anything from a tiny microbe to which Americans have little or no immunity, to guerrilla and terrorist movements, and anything in between.

When you apply for life insurance, these companies want to know what kind of situations you are going to be exposed to in your travels.  If you want to get the best rating for your life insurance, and you are traveling abroad, it might be a better idea if you postpone booking your trip until after you have been approved.

Be careful though because some applications will ask if you plan to do some traveling in the following year or so.  You might think to get tricky and say you're not, and travel anyway after they approve the application.  That's a no-no because that's a lie, and if anything happens, you could get the short end of the stick and pay the price.

5. Seeing your Own Doctor before the Insurance Medical Exam

Thinking about buying life insurance often gets us thinking about our own health.  Maybe you haven't been to the doctor in 5 or 10 years and are thinking maybe you want to know where you stand health-wise before you apply for life insurance.  You should know that whatever your doctor finds, the insurance company will learn about it as well.

Now, understand that I am not advocating or even suggesting that you don't get a medical check-up or seek medical help if you are experiencing a current health issue, I'm simply saying that maybe you should get your life insurance in place before you get a check-up.

What Now?

Bottom line.  Do your homework.  Work with a knowledgeable agent who can explain all these variables to you, and help you apply with the company that will give you the best deal based on your own situation.  For more common mistakes people make when buying a life insurance policy, click here.

This is a guest post from Chris Huntley, an independent insurance agent in San Diego, CA and founder of the insurance blog Insurance Blog by Chris.

Credit Score Scale: What is a Good Credit Score?

You know that your credit score is one of the most important bits of financial information about you.

Where you fall on the credit score scale is often considered to be a way of determining what kind of person you are when it comes to managing your money.

Lenders ' and plenty of others ' use your position on the credit score scale to make decisions about how they will treat you in money matters.

The only problem is that many of us don't know what our credit score is.

And when you head to one of those sites to get your 'free credit score' it's really not free AND it's not your real credit score.

I found this out the hard way when I was trying to find my real FICO credit score.

If you're just as confused as I, here's a quick look at determining your credit score scale.

What is the Credit Score Scale?

When most of us think of credit scoring, we think of the FICO score, put out by the Fair Isaac Corporation. This credit score ranges between 300 and 850, with 300 representing the lowest possible credit score. However, it is important to realize that this is not the only score available. Other companies use variations of FICO's formula to create their own scores. Additionally, there are companies out there that have created their own credit score scale altogether. However, for the most part, you are likely to run into some version of credit scoring that uses a model similar to the FICO score.

The point of the credit score scale is to allow lenders and other financial services providers (like insurance agents) to immediately ascertain whether or not you are a credit risk. If you have a low credit score, then service providers, like cell phone companies, and even a potential employer, might make assumptions that your level of financial responsibility is low, and that you might prove irresponsible in other areas as well. Clearly, lenders view a low credit score as something that increases the chance that they won't be repaid the money they lend.

Your position on the credit score scale is usually figured by using a formula that takes into account the following information:

It is important to realize that, even though lenders see your credit score as a big piece of the puzzle, they may also look at other items, such as your income and your employment history, when making a decision.

What is a Good Credit Score?

For the most part, a good credit score depends on the current market conditions. Prior to the financial crisis, a 680 was considered good enough to get a good interest rate on many loans. Now, many lenders want to see a score of at least 720 to offer you the best deal.

Generally, though, a credit score below 600 is considered quite poor. If you score between 650 and 699, you are considered to have be in the fair to good range. Some won't have a problem with you when you have a score of between 620 and 700, but you probably won't be offered the best terms. A good credit score can mean more than just a good interest rate on a loan: It can also lead to lower insurance premiums and the ability to qualify to move into a better rental.

Credit scoring isn't exact, but it's what is widely used, and it is a good idea to pay attention to your place on the credit score scale if you want to succeed financially.

photo credit: Casey Serin

Tagged as: credit, Credit Score, credit score range, credit score scale, FICO Score, good credit, good credit score, low credit score

How to Appeal Your Property Tax Assessment

Few of us like paying taxes.

Especially if we feel as though we are paying more than we should.

One of the ways that some local governments have been raising revenues in recent years has been through higher property taxes.

Governments don't have to raise the property tax rate to see a boost, though; all they have to do is change the assessment on your home.

The more your home is 'worth,' the higher your property taxes.

I know I was surprised two years ago to see that my home had increased in by about $10,000 ' in spite of the fact that homes in my neighborhood were selling for $20,000 less than their original owners paid for them.

If you have questions about what your home is worth, and how it's been assessed by your city, county, or state, you can appeal the assessment, and possibly pay less in property taxes. Here's what to do:

Know the Appeals Process

First of all, you need to know the appeals process employed by your city, county, or state government. Even though most entities follow the same basic outline, there might be a few differences in your locality. You need to check when the appeals deadline is, as well as what documentation you are required to have in order to make the appeal. Find out whether you can mail in an appeal, or whether you need to set up a specific appointment. If an appointment is needed, make it as soon as you can.

Review Your Property Assessment

Once you know how the appeals process will work, you need to check through your assessment. You should have access to the report by requesting it online or in person at the assessor's office. Go over the report and look for inaccuracies.

In some cases, your home might be reported as having amenities it doesn't actually have, such as more square footage, a larger yard, or being listed as having 3 bathrooms instead of 2.5 bathrooms. Note the inaccuracies that might be driving up the perceived value of your home.

Collect Information on Homes in Your Neighborhood

Your next step, once you know how your assessment stands, is to collect information on the homes in your neighborhood.

Part of the assessment should be based on homes that are similar to yours.

Look up the public records to find out what homes have sold for in your neighborhood, and within a mile radius of your home.

You can find this information, and use it to determine the relative value of your home.

If a home similar (square footage, age, etc.) to yours two streets over sold for $165,000, and your home is being valued at $184,000 (happened to me), you have a case that your home's property has been assessed too high. This is especially true if a number of similar homes within a mile of yours have sold at much lower prices.

Organize Your Documentation, and File Your Appeal

Make sure that you document everything you can, from the real specs of your home (if the assessment is inaccurate) to the values placed on similar homes in your neighborhood. If you are mailing in your appeal, make copies and keep the originals of all your documentation. Making copies is also a good idea for in-person meetings as well. In any case, organize your documentation and file your appeal. Make sure that you are polite throughout the process.

Realize that you can usually appeal the decision to a higher board. However, at some point you will have to accept the decision. But, if your home really shouldn't have been assessed so high, you have a good chance of winning your appeal.

 

Capital One Spark Cash Business Credit Card

Finding a solid business rewards credit card isn't always easy. Sometimes there are high annual fees while others have tiered rewards where you have to spend thousands of dollars before any real rewards kick in.

For the business owner that doesn't want to have a bunch of separate credit cards aimed to provide the most benefit in each category of spending (typically office supplies, telecommunications, gas, dining, and lodging just to name a few), it can be hard to find that all around solid card.

Who wouldn't want to carry just one credit card instead of five?

Enter Capital One's Spark Cash Business Credit Card to save the day.

What Makes the Spark Cash Business Credit Card Different?

There are three great differentiators for this business cash back credit card.

Easy Bonus Rewards ' Get $150

Some business credit cards offer the ability to earn some extra bonus cash back, but normally the requirement is thousands upon thousands of dollars in spending.

Capital One's Spark Cash Business Credit Card is different: earning the extra cash back is simple.

There are two ways to earn bonus rewards that total $150:

• Get $100 for spending $1,000 on purchases in the first 3 months of having the card
• Get $50 for opening up one or more employee cards in the first 60 days

That's it. No fancy tiers, no jumping through hoops. Spend a little bit of money (almost every business spends $1,000 in three months) and add an employee card and Capital One will give you $150 for free.

Consistent Cash Back on All Spending

The business owner that has time to juggle multiple credit cards to earn the maximum rewards for a bunch of random categories is the business owner that has too much time on his or her hands.

It's true, at least in theory, that you could get a bunch of cards that paid 3% to 5% cash back on specific categories and earn an overall higher level of cash back. But you would be juggling multiple cards at minimum. Some of those bonus categories have rewards caps so after you hit the cap, you don't earn any bonus rewards. Worse yet, the annual fees for all of those cards would probably wipe out a majority of the bonuses earned.

Doesn't that seem like a waste of time to you?

Consider how the Spark Cash Business Credit Card works instead:

• Get 2% cash back on all of your purchases in every category.
• No need to juggle categories. All of your spending earns the same 2% cash back.
• No crazy rewards program catalog to redeem points; get straight cash back.

It's a more simple program with a rewards rate that is above average.

Low Annual Fee

Annual fees dig into the value of your cash back rewards. High annual fees make some business rewards cards not worth having ' you would almost never earn enough rewards to overcome an annual fee of several hundred dollars.

This card wins in this category, too. There is no annual fee for the first year. After that it is only $59. That's very low as far as business credit card annual fees go.

With a $59 annual fee and a 2% rewards rate, you need to only spend $2,950 in the second year to pay for the annual fee. (Not to mention the $150 you get when you meet the qualifications in the first year.) Most businesses spend more than that anyways, and you'll earn rewards on top of that.

The Bottom Line

Tagged as: Bonus Cash, business credit cards, Capital One, cash back credit cards, Low annual fee, Spark Cash Business Credit Card

Avoid the BIGGEST Mistake of Early Retirement

Being a financial planner comes with a certain amount of stress.

Most would contribute the schizophrenic stock market as the leading culprit of the high stress levels.

And that is absolutely correct.  Dang you market!

Coming in at a very close second is helping a client strategically plan for their early retirement.

What do I define as an early retirement?

Any client that is retiring before they can attain social security (and don't have a pension). Trying to help ease the income needs for retirement puts added stress to make sure they don't run out of money in their golden years.

An additional level of stress occurs in making clients stick to the plan.

Too often clients start viewing their retirements accounts as ATM machines, and I have to make sure they don't get too crazy with their spending habits.

Oh yes, early retirement can be very stressful for all parties involved.

The BIG Mistake

When it comes to making the biggest mistake in retiring early, I've seen it done countless times and it can be a very costly one.

So, what's the big mistake?  Let me illustrate by sharing a recent conversation I had with an individual that had recently changed jobs and had to make a decision with his old 401(k).

This individual was 50 years of age and had a decision to make with his 401(k).  He had been at his previous job for a number of years and his 401(k) had collected a nice sum of approximately $500,000.  He was trying to make the decision whether to roll the 401(k) to his new 401(k) or roll it over to an online brokerage like Scottrade or eTrade.  In the conversation, I could tell a lot of his focus was on fees, where to invest the money, access to the money,  etc.

The one part that he failed to consider is what happens if he wanted to retire early.  After some initial fact finding, I asked a simple question:

Do you plan on retiring early?

He quickly shot back and said

'Yes, my hope is that I can retire somewhere around the age of 57.'

That simple statement leads to ultimately the biggest mistake that many people make when changing jobs and retiring early.  A little known IRS rule allows folks that retire early, starting at the age of 55, to take premature distributions from their employer sponsored plan while avoiding the 10% early withdrawal penalty.

How is this all a mistake?  The mistake has everything to do with the technicality of the term 'employer sponsored plan'.  Employer sponsored plan would include your 401(k), 403(b), TSP, or 457.  What that does not include is your IRA's.

That's right, your IRA, according to the IRS, is not an employer sponsored plan, so if you roll that over into an IRA, you lose the ability to take out your money and avoid the 10% early withdrawal penalty.  And the last time I checked, no one likes to pay a 10% penalty just for the fun of it.

Had this individual rolled over his 401(k) into an IRA, he lost this inherent gift from the IRS.

Not Just About Job Change

It doesn't just have to happen when you change jobs.  I've seen several people that prior to working with me had retired early and rolled their 401(k) into an IRA not knowing about the 10% free withdrawal rule. Unfortunately, the majority of the time that I've seen it, the individual is working with a financial advisor that failed to disclose this.  Either the advisor wasn't up to speed on the rules, or I think their eyes were on the prize, meaning that they would only get paid if that client rolled over the money into an IRA that they managed.  Do I have proof?  No, just call it a hunch.

If you're planning on retiring early, please keep in mind that to avoid paying an unnecessary 10% early withdrawal penalty, you must leave your money in the 401(k).  Don't make that mistake.

Note: Within in IRA, you are allowed to take premature distributions if you follow rule 72t or meet certain conditions.  72t is a more complex planning strategy that ties up your money for a minimum of five years.  If you want more rules about 72t, feel free to check out another post where I wrote about the 72t rules and ways to avoid penalty on withdrawals from your IRA.

Are you planning on retiring early? Have you thought about rolling your 401k into an IRA? If so, be careful!

How Financially Sexy Is Your Household?

I'm bringing budgets back'..ugh!

'Cause people without budget don't know how to act'.ugh!

They spend their money and they don't keep track'.

With those lyrics how can you NOT watch the video below?

My buddy J$ from Budgets are Sexy is off enjoy his new baby so I offered him a guest post. But just not any guest post'no!

I felt I needed to step up my game and do a video post. In addition to the video post, I had my wife make a silly picture that was Pinterest worthy.

Apparently, she thought putting a mustache on me was the missing link. Ahem.

How financially sexy is your household? Watch the video to see.

And be sure to head over the J$'s site and check out my guest post and wish him congrats on that new baby!

 

7 Alternatives to Investing in the Stock Market

As a financial planner I work with a lot of clients and most of our investments are related to the stock market.

We invest in bonds, mutual funds, ETF's, and the occasional individual stock.

Every so often I'll get some people that want to invest into 'stock market alternatives', meaning that they are a little bit fed up with the ups and downs of the market.

And who can blame them?

Every time the markets seems to want turn around, it jerks back leaving most of us scratching our heads and wondering when the madness is ever going to stop.

Because of schizophrenic behavior of the stock market many people ask me,

'Hey Jeff, what are some other alternatives to the market that we can invest into?'

Today I just want to share seven stock market alternatives that you can invest your money into.

1. Gold and Silver Coins.

You've heard it. Everybody wants to buy gold. Everybody wants to buy silver. The price of gold has escalated well over the last couple of years.

You have to realize that gold is a risky investment, and it fluctuates just like an individual stock ' sometimes more! That being said, it is a stock market alternative, so if you have a fear of the stock market, then investing in gold coins might be a viable option for you.

2. Aged to Perfection

Another stock market alternative can be antiques. I am going to use my stepdad as a prime example. He's invested into antique toys. These are the toys from the 30s, 40s and 50s. He invested into various paintings and other different types of art. He's also was a huge Lionel train collector and has a whole spare bedroom filled with them.

I've seen the value of some of them and it blows me away on how much they are worth.

If you have a passion for things in the past, investing your money into such things as antiques might be a good alternative for you.

3. Keepin' It Real

A third stock market alternative is one that I dabbled in, didn't have much success.

Hopefully, you'll do better!

It's real estate.

If you missed it, I had an awesome interview of a successful real estate investor local to my area.

A buddy of mine named Eric who is now just 30 years of age and is killing it in real estate.

He's done everything from lease to buy to foreclosures to wholesale. He's done it all and this post covers a lot of that.

Obviously, real estate is a very awesome stock market alternative if you understand it. It's something you don't just dive into. Even though many people learn this way (me included) you'll want to start on a smaller property if you do just go for it.

If your more conservative, you want to do your research and plenty of it.  You want to ask some people, ask some experts. Talk to some realtors and understand it before you start sinking real cash into it. . Just like my buddy Eric. He spent a lot of time and a lot of research and it has proven to be very valuable to him.

4. Peer Pressure is Good

A fourth stock market alternative that I'm partial to is peer-to-peer lending. If you're not familiar with peer-to-peer lending, it's relatively new, but has definitely gained a lot of traction in the last couple of years. There's a few big players in the space, but the top two that you'll want to check out are Lending Club and Prosper. I will tell you that I do have a Lending Club account and have done very well with it. I have not tested Prosper out yet. I have heard a lot of good things about it.

Real quick, what is peer-to-peer lending? It is exactly like what it sounds. You are lending money to a peer and then you're getting paid the interest rate.   Essentially, you've just become the banker to the borrower.  It feels nice sitting on that side of the equation for a change. 

The thing I like most about peer-to-peer lending, especially through Lending Club is let's say you invested a thousand dollars in Lending Club. Of those thousand dollars, only $25 would go to one individual borrower, so if that borrower defaults you don't lose a whole lot of money. Think of it like buying stock in a mutual fund. If one of those stocks in that mutual fund goes belly up, you still have 99+ stocks in that mutual fund still making you money. Same thing with Lending Club and that's why I like it.

It is diversification; you're not putting all your loans into one basket.

I've done pretty well with it which you an see in my Lending Club Review blog post. I was averaging between 8½, almost 9½% return and as of today I'm still there, so definitely worth checking out as a stock market alternative.

5. Y-O-U

This one might be a bit of a surprise to you, but think about it. The one think that you can invest in is yourself. How do you do that?

You can invest in going back to school and getting an MBA, getting a PHD, maybe getting a degree that you never got, or getting another degree.

For me, what I've done is I invested into designation whether that be, for me the CFP® designation, or let's say you want to be a CPA to be a Certified Public Accountant. Maybe there are certain designations in your field that could give you potential raises or open new opportunities for you at your job.

Other ways you can invest in yourself is by hiring a coach. Maybe you can do a personal development coach. I'm currently doing a coach for entrepreneurs, and I will tell you that the investment has been worth it tenfold.

I've only been doing it for just over a year now, but the processes that I go through, the mindset that I'm in has completely rocked my world.  Had I not invested that money into myself I never would have realized the untapped potential that lies within me. As you can tell, I'm very partial to coaching and I'm very partial to investing in yourself.

6. Equity Index Annuities

Yes, they have a tie to the market, but I thought they were worth including since you do have your principal protected.  If you're young, they probably don't make sense for you.  But many retirees love the principal protection plus the income benefit riders that they offer.

If you want to read more on them, this post that talks about the pros and cons of Equity Index Annuities is exactly what you need.

7. Invest Into a Business

Several years ago a close buddy of mine cashed out his Roth IRA to use towards his small business.  At the time I was a W-2 employee with my old brokerage firm and didn't get the concept of owning your own business.   Truth be told, I thought he was a fool for cashing it in.  Sorry buddy. 

Now owning my own business, I realize that you don't have to invest everything into the stock market.  You can invest into your business would could make you serious cash flow in the short term and potentially give you a big payday down the road in the event you want to sell.

I have a another friend who has successfully opened several locations of two franchises.   I think he's up to 10 locations so far and is showing no sign of slowing down.

Both of these business owners don't have much in the way of stock market investments but I'm fairly certain they are doing just fine.

Investing into Stock Market Alternatives

These are just a few of the stock market alternatives that you have at your disposal.   Have you tried investing into other areas other than the stock market?   Share your story below!

Tagged as: alternatives to stock market investing, buy gold, gold coins, investing into real estate, peer to peer lending