A Slice Of Humble Pie to Get You Financially Organized

Would You Like Pie With That?

Don't let an appetite for the finer things ruin your shot at financial freedom

If you can't find a way to save, you'll never find a way to relieve the stress that comes with financial security.

But those of us living on a fixed income have an even harder time finding corners to cut and fat to trim.

And without some organization, it's nearly impossible.

That is where a few simple tools will help. One of the most effective is a pie chart. And creating one doesn't require loads of time or a degree in computer science. You could, of course, create one by hand, but there are easy options that require little more than turning on a PC, opening a Web browser and stroking a few keys.

But first, you need to get organized. Take a few minutes to gather six months of old bank statements or, better yet, log into your bank account online. Use a budgeting site like Mint.com to create spending categories based on your purchases, or simply write them down on a piece of paper.

A site like Mint will create a chart for you, but if that's too complicated, go to a site like Yellowpipe.com or Chartpart.com, which are dedicated to creating simple charts. All you need to do is enter data into a few fields and the site will return a customized pie chart detailing all of your spending.

The results are often eye opening.

You may think going to the movies every weekend is harmless fun, but the $10 tickets and $8 bucket of popcorn may be eating up money that could go to retirement, pay down credit cards or simply cover your everyday bills. Better to cut the nights out to once a month, pay for an $8 monthly subscription for a DVD service like Netflix. The popcorn may not taste as good, but you'll remember your stress free days much more than those few squirts of fake butter.

There's often little you can do about fixed expenses like rent and heat, but making a sustained effort to cut down on discretionary spending is the only sure path to getting your piece of the, well, pie.

Matthew Malone writes for the leading Roth IRA and online retirement planning resource, RothIRA.com. He is a CBS SmartPlanet contributing writer whose work has appeared in The New York Times, Cosmopolitan, Smartmoney.com, Fortune.com, Forbes.com, and other publications.

Does Your 401k Need a Monkey on its Back?

Many investors are becoming more interested in applying the 'do-it-yourself' approach to managing their portfolios.

But let's be clear: Managing your own investments is not easy.

Good investment management practices are complex and time consuming, requiring discipline, patience, and consistency of application.

Some investors can handle it.  Let's just say that I've met my fair share that can't.  At all.

Too many investors fail to follow some simple, time-tested tenets that improve the odds of achieving success and, at the same time, reduce the anxiety naturally associated with an uncertain undertaking.

Portfolio Monkey has made a solution to help the self directed individual achieve just that.

Portfoliomonkey.com is a free site that can help you manage your portfolio.
You did catch I said 'FREE', right?   Just checking'..

'Portfolio Monkey is a social venture whose mission is to educate and provide self-directed investors the most simple-to-use and sophisticated investment portfolio management tools available.'

This site is also a perfect way to review your portfolio or 401k and the options inside of it. You can run tests to see if you can develop a portfolio with better returns and lower volatility. Portfolio Monkey has designed the site to help you analyzes and better allocate your portfolio. They have developed a tool to help you optimize your allocations within your portfolio.

'So how do I use this awesome site?' you say.   Well, I am here to show you how!

Why Portfolio Monkey?

First, you're probably wondering, 'Why am I writing about Portfolio Monkey?'  Good question.

I've been searching for an easy web based tool that the average investor could easily use to do a portfolio review on their 401k (and other investments).   There's paid services like Morningstar, which is great, by the way.  But Morningstar is better suited for more experienced investors.  For newbie investors, it can be very overwhelming.

By blind luck I stumbled across Portfolio Monkey and was blown away on how simplistic their site was to use.  And the best part?   It's free!

Okay, let's take a look at Portfolio Monkey and see how it works.

Step 1: Sign Up

The first step is getting signed up for the site at www.portfoliomonkey.com.

After you have signed up, it will take you to your HOME page. This is where you can see any portfolios that you have created, as well as some sample portfolios from Portfolio Monkey. Each portfolio will have an expected return and volatility percentage, along with an efficiency score and Portfolio Monkey rating. These ratings will help you determine how efficient your portfolio really is.

Step 2: Creating Your Portfolio

To add or create a portfolio, click the analyze button on the top right tool bar. From there click the New Portfolio button on the bottom left.

To add a new stock or mutual fund to your portfolio, type in the ticker, or symbol. The only thing i didn't like about this process was that you have to enter your total shares, instead of dollar or percentage amount.

This makes it hard when you are trying to find the best allocation for your portfolio or 401K before you begin investing. If you need to find how much individual shares cost go to Yahoo Finance or another financial site to get this needed information.

After you have entered your desired stocks or mutual funds, it will take you to the second step in the process which is your investment horizon. For someone that is going to retire in the near future, 5 years or sooner, it is best to select the short term time horizon. For everyone else it is best to select the long term.

Step 3: Merge or New

The third step is deciding if you want to merge this portfolio with another one you have created, or just make a new one. For this situation we will be making a new portfolio.

Step 4: Data Entry

The fourth step is entering your transaction data. If you have your purchase dates and costs you can enter it in here to see what your gain or loss percentage is. If you do not have this information or are just trying to determine if this portfolio is right for you, select the maybe later button.

Your Portfolio Details

Now that you have done all the steps, it is time to see if this portfolio is the right fit for you. The portfolio will give you an expected return and volatility, as well as an efficiency ratio. At the bottom it breaks down the portfolio into the expected return and volatility for each holding. This may show you that a particular stock or mutual fund may not be the right fit for your portfolio, such as a mutual fund with too much risk for the return it is expected to earn.

Up in the top right it gives you the statistical probability of how much your portfolio will return in a given year. As you can see with this portfolio my expected return is $850. I also have a 80% chance that my return will be between $1,300 to $3,001.

If you want to dig deeper into your portfolio, you can also check out the optimize section, which shows you how much of each stock or mutual fund you should be holding at any given time. This optimization tool follows each stock or mutual fund and will try to optimize your portfolio instead of a buy and hold strategy.

For the self directed investor, the tools for allowing you to manage your portfolio keep getting better and better. Portfolio Monkey is a great way to help you manage and analyze your portfolio.

Oh Crap! I Screwed Up'.How to Fix an Error on Your Credit Report

One of the most important aspects of your finances is your credit history.

Your credit report is a record of your financial life as it relates to borrowing money.

It is, essentially, your financial reputation. When your credit report looks good, you look good ' and like a good financial risk.

Lenders are more likely to approve your application, and give you competitive interest rates. On the flip side, negative information in your credit report can indicate that you might not be as solid as a lender would like.

In order to offset some of that risk, the lender can charge you higher interest rates, costing you hundreds, or even thousands, of dollars more over the life of a loan.

The information in your credit report is used to form your credit score. Not only is the information in your credit report used by lenders, but it might also be used by insurers, landlords, and potential employers. All of these people are making decisions about you based on what's in your credit report.

If there are mistakes in your credit report, it could lead to negative consequences for you.

It's important that you check your credit report, and when you find an error, you should fix it.

Checking Your Credit Report for Errors

Your first step is to check your credit report for mistakes. Indications are that most credit reports have some sort of error, so there is a good chance that your history contains at least one. You always have the option to pay for your credit report from any of the three bureaus. However, you can receive a free copy of your credit report by visiting AnnualCreditReport.com, where you are entitled to a free report from each of the three bureaus each year. It is also possible to see a free TransUnion credit report when you are a member of Credit Karma, and get a free copy of your Experian report with Quizzle or with Credit Sesame.

If your credit report was used as a reason to deny you credit or prompt an increase in an insurance premium, or if your credit report was used to deny you a job, you have the right to a free copy of the report used. You must write the credit agency involved within 60 days, however.

Once you have a copy of your credit report, look through it, and verify the information. Some common errors to look for include:

All of those errors can have, to varying degrees, a negative impact on your credit history. You will want these errors fixed. Fortunately, the law is on your side, and the Fair Credit Reporting Act requires that credit bureaus fix errors in a timely manner ' usually within 30 days.

Disputing an Item on Your Credit Report

You are entitled to dispute items on your credit report free of charge, and the credit bureau must investigate the item. Understand, though, that if the item is accurate, the credit agency doesn't have to change it. The credit agency only has to fix actual errors. Here are the steps to take as you work to clear your financial name:

1. Locate errors on your credit report: Note the errors on your credit report, and determine what action needs to be taken to fix the errors. Some people like to make a copy of the credit report, and then highlight the errors on each copy for easy reference. (One copy can go to the credit bureau, and the other you can keep.)
2. Find documentation supporting your claims: If you have documentation that supports your claims, make a copy. You should never send original documents anywhere; always keep originals for your own records. If you paid on time, a copy of your bank statement, with a date highlighted showing the on-time payment, can serve as documentation. If you don't have documentation, such as in the case of a fraudulent account, it might be more difficult. But you can still request the information be removed (although you should call first and possibly put a credit freeze on your report).
3. Write a letter to the credit bureau: Next, write a letter to the credit bureau. All disputes need to take place in writing. You must send a letter to each bureau with mistaken information. Sending your dispute to one bureau will not fix the information on other reports. Your dispute letter should include your full name and address, and describe each item you are disputing. Be sure to keep a copy of the letter for your records. You can see a sample dispute letter at the end of this post.
4. Send the letter, and enclosures, certified mail: Once your letter is finished, enclose your credit report copy with highlighted disputed items, and supporting documentation. You should send your dispute using certified mail, and request a receipt. This is important, since it will provide proof that the credit bureau actually received your request.
5. Consider sending copies to your creditor: The process can be speeded if you send the same information to the company that made the report to the credit bureau. Send only copies, and send via certified mail.

The credit bureau must investigate your claim as quickly as possible. If it is found that the information is, indeed, inaccurate, it must be removed from your credit report. Additionally, the creditor isn't allowed to report the information to the credit bureau again. After the completion of the investigation, the credit bureau

You can request that a corrected copy of your credit report be sent to anyone who requested your credit report in the last six months. For employment purposes, you can have it sent to those who requested your credit report up to two years ago. You are also allowed to ask that your dispute information be included with your credit report, and you can also include your own statement with your credit report.

Sample Dispute Letter

If you are interested in disputing information on your credit report, you need to write a letter, stating your claims. Below is a sample letter, based on a template provided by the FTC, that you can use as a model to craft your own dispute letter:

How a $75 Parking Ticket Almost Ruined My Life

I was quickly on the path to becoming a loser all because of a stupid parking ticket.

That parking ticket made me initially lose hope and give up on myself.

It's one of the few times in my life where I can remember saying out loud, 'F*** it.  I quit!'.

You're probably wondering how a trivial parking ticket could have such a drastic impact on my life.

Let me explain'..

******

My father was a college dropout and spent most of his life trying to make things work.

I knew that he was disappointed in his choices, and he didn't want to see me follow suit.

He constantly encouraged me to go to school and get my degree. I had just enrolled in Santa Monica Community College, and was looking forward to making my dad proud.

When it came time to pay for tuition and fees, I handed the school's cashier my mom's credit card. To my surprise and disappointment, they didn't accept it because it wasn't my card, it was my mothers.

I figured I'd just come back another day and pay.

A few days passed and I returned to the same cashier to pay, this time with a check. I was ready to get this over with. I just about puked when the lady told me that I had missed the deadline to pay and the classes had been closed.

I had been dropped for all of the classes I enrolled in.

Are you freaking kidding me? Did I really just allow this to happen?

I could not believe it. I was in denial and disbelief, and I just felt like crap.

I asked the cashier what my options were, and she said that I would have to go around to each class and talk to each teacher individually to see if there was any room in the class. She also gave me a warning that many classes now had waiting lists, so it would be even more difficult for me to get in.

Not Giving Up'Yet

At this time, I was still determined that I was going to school and I was going to get the degree that my father desperately wanted for me. So, I went around to each of the teachers to beg them to let me back in.

The first two teachers I visited gave me some disheartening news. The classes were full and the waiting list was already ten people deep in each class. They told me there was little hope for getting into the classes this semester.

Once again, I felt sick. I couldn't believe that I allowed this to happen to me. I still had some hope that maybe some of the other classes would allow me in, and that maybe I wouldn't be full time this semester, but I would at least have some credits to my name to get things started.

I had this hope until I walked back to my car and found the $75 parking ticket that was on the windshield.

I found myself in another state of disbelief.

Of all the crap that I had gone through the past few days to now have a $75 parking ticket on top of it!

It was a low blow. At that exact moment, I remember saying out loud '<see expletive above>'

A $75 parking ticket took all the wind out of my sails, took all the motivation that I once had for getting my degree and threw it out the window.

When I think about the $75 parking ticket and how I let it control me and potentially sabotage my life and career.

I think about how stupid I was to let something so minuscule have such a large impact on my life.

Luckily, I did go back to college. I did finish my degree and because of that, and many other factors, I have proven to be very successful.

I think it's easily understood that without my degree I wouldn't have attained nearly the success that I've had. I never would have gotten an internship to A.G. Edwards & Sons, Inc, which turned into becoming a junior broker, which then led to me becoming a financial advisor, which then led to me breaking off and co-founding my own independent firm, and then subsequently, creating my own RIA, Alliance Wealth Management, LLC.

None of that would have happened if I had not gone back to school and reapplied myself ' and to think that I almost let a $75 parking ticket, a piece of paper about the size of a number ten envelope, dictate my future!

What little things in your life have you let get to you that have stopped you from pursuing your dreams and your passion?

When you take a look at them in the big picture of your life, are they minuscule?

Is it ridiculous that you've allowed something so trivial to have such a tremendous impact on your life? If so, it's not too late.

Do what I should have done (I should have taken that $75 parking ticket and paid it off and told them to shove it) and then get on with your life and pursue your dreams.

Retiring Early? Don't Forget About 72(t)!

Ask any financial advisor about 72t and I'll bet you'll see them cringe.

It's not a popular planning method, mostly because it comes with lengthy restrictions that, if violated, can you lead to severe penalties.

Clients don't like paying penalties.   Advisors don't like when their clients pay penalties.   72(t) has the potential, if done wrong, for the clients to pay a huge chunk of penalties.   See why we cringe about 72(t)?

Some of you may have no clue what 72(t) is.   If you are not planning on retiring early (before the age of 60), then skip this post and come back another day. 

If you are in the financial position to retire early, and have a bulk of your assets in retirement accounts, then 72(t) may be of help to you. Let's take a look at the 72(t) early distribution rules.

What in the Heck is 72(t)?

Most often when you take money of your retirement account before you turn 59 ½, you are assessed a 10% penalty on the top of ordinary income tax. One exception (others include: first-time home purchase, college tuition payments, disability) to that is a 72(t) distribution that is a 'substantially equal periodic payments'.

Clear as mud?   I thought so.  Moving on''

Read more on How to Withdraw From Your IRA Penalty Free

How Does the IRS Consider 72(t)?

The IRS calculates  your 'substantially equal periodic payments' by using one of the three methods that the IRS has determined and then take your payment on a set schedule for a specific time period.

It is required that you take those payments for either 5 years or when you turn 59 1/2 , whichever comes later.

For example, if you start taking your payments at the age of 52, then you must do so for 8 years. Someone who starts at 57, must do so till the age of 62.

72t tables

72(t) Real Life Example

In the 10 years I've been a financial planner, I've only executed 72(t) a handful of times.   The concern is having to lock in your withdrawal rate for a minimum of 5 years is longer than most advisors are comfortable with- me included.

Recently, I had a potential new client that was getting an early buyout from his job and was considering using 72(t) for a portion of his IRA.    Here's are some of the details (name and some of the data have been changed for privacy concerns).

Paul born 8/21/55 and  $720,000 that he will receive in a lump sum distribution from his employer. He would like to do a 72(t) from age 57.3-62.3. He needs about $2,000 a month until 63.5 where he will have the remainder in an IRA.   Paul also had $140k in his 401k.

How 72(t) Distributions Work

The 72(t) plan must not be modified until 5 years has passed from the date of the first distribution for those who will reach 59.5 before the 5 year period is completed. However, it is not clear whether Paul plans to take the 72t distributions from the employer plan or from a rollover IRA.

If the 72(t) plan is needed, the best approach is to do a direct rollover from the plan to a rollover IRA, determine what IRA balance is needed to generate 24k per year using the amortization plan, and then transfer that amount to a second IRA and start the plan.

The original rollover IRA can be used for emergency needs to prevent the 72t plan from being broken if he needs more money. Employer plans do not provide 72(t) support and may not offer flexible distributions. They also will not allow funds to be rolled back in the event too much is taken out due to administrative error.

Note: that if Paul separated from service from the employer sponsoring the qualified plan in the year he would reach 55 or later, distributions taken directly from the plan are not subject to penalty, and a 72t plan could be avoided.

But for that to be practical the plan must allow flexible distributions until the 5 year period ends. If the plan required a lump sum distribution, even though the penalty would not apply, a distribution of 120,000 in a single year would inflate his marginal tax rate and that might well cost more than the 10% penalty. If a lump sum is required, then a direct rollover to an IRA should be done before starting a 72(t) plan.

The Final Call

The verdict is still out whether the client and I are going to do 72(t).   Since he has a good amount in his 401k and his wife has a nominal 401k , as well (not mentioned above); I suggested using that money first.

Since he's retiring early, he can avoid the 10% early withdrawal penalty so as long as the money is distributed from his 401k.  Once you do a 401k rollover to an IRA, you lose that option.

Out of curiosity, I went to Bankrate.com and used their 72t calculator to see how much we could get with his retirement account.  Below are some of those results.

 

72t calculator

Here's a sample amount that one could withdraw from your IRA using 72(t). Note the interest rate of 2.48%. That amount was already entered in on Bankrate's calculator. You actually have the ability to choose your own interest rate but be careful. You want to choose a rate that is normal and sustainable based on current market and economic conditions.

Fixed Amortization Method

Have you retired early?  Would you be comfortable executing 72(t) distributions for 5 years?

Tagged as: 72(t) Distribution Rules, early retirement

Best Online Checking Accounts

Thanks to technology and the increasingly-digital nature of our money, it's possible to do your banking with an free online checking account ' no need to walk into a branch location tied to a specific geographic area.

Plus, many online accounts offer perks that you won't find with traditional brick-and-mortar banks, including interest-bearing checking accounts.

Online checking accounts can be convenient, and many of them come without the fees that are starting to crop up at 'regular' banks.

Online banks tend to have lower overhead, and can offer to pay interest, or even to provide rewards.

Most online banks will also send you debit cards and checks so that you can access your money at ATMs around the country and make paper check payments.

Compare Best Online Checking Accounts

But with so many online checking account options, how do you know which bank to choose? Here are some of the absolute best online checking accounts:

Ally Interest Checking Account

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.

They have been winning points for customer service and convenience for quite some time, and the interest checking account is another popular product. This is because Ally offers a bunch of freebies with its account. These are freebies that have largely disappeared from the world of brick-and-mortar banking. When you have an interest checking account from Ally, you get:

• Industry-leading interest rate
• Free online bill pay
• Free unlimited check writing
• Unlimited free checks
• Free ATMs (you are reimbursed for fees)
• No monthly maintenance fee

One of the last strongholds of brick-and-mortar banks was the question of 'What do I do if someone gives me a paper check?' The answer used to be: go to the brick-and-mortar bank. You don't need to do that anymore.

Ally now offers free eCheck Deposit. You simply can scan your check in to your computer and then upload it to the bank's web site. You don't have to go in to the bank to deposit checks if you have an Ally online checking account ' you can do it from the comfort of your own home.

You can open an account with no deposit, and there are no minimum balance requirements. If you slip up and overdraft your account the fee is only $9. Not $9 per overdraft charge (which is how normal banks make a killing off of customers), but one $9 fee per day you have an overdraft, even if you had 10 overdrafts that day. A normal bank would charge you $35 per overdraft for a total of $350 for the same number of overdrafts. That's unbelievable.

PerkStreet Financial

This is a new checking account that is rapidly growing in popularity, mainly because it offers a rather generous cash back rewards program. PerkStreet Financial pays between 1% and 2% cash back when you use the debit card on the account. On top of that, there are rotating categories (or specific retailers) and promotions that allow you to 5% cash back throughout the year. PerkStreet doesn't limit your rewards, meaning that you can earn plenty of cash back in a year.

If you want ATM access to your money, PerkStreet provides that as well. There are more than 42,000 ATMs that allow you free PerkStreet transactions. You do need $25 to open an account, but after that there are no minimum balances, and no activity requirements.

• Cash back rewards
• Free online bill pay
• Free unlimited check writing
• Free checks
• 42,000+ free ATMs

While we love PerkStreet, there is one downside to using a cash back checking account versus an interest-bearing checking account: you only earn cash back on the money you spend. With an online checking account that pays interest (like Ally Bank and others listed), you earn interest on money that you have sitting in the account. This is not a big deal if you don't leave a ton of money in your online checking account and prefer to have it sit in an online savings account. You can still rack up significant rewards for using your debit card without having to run the risk of going into debt with a cash back credit card.

PerkStreet does charge an inactivity fee of $4.50 for each month that you don't use the card at least once. That shouldn't be a problem if you are actively using the account. The bank does charge an overdraft fee of $32 for each overdraft, so you must be careful not to overdraft. (You can easily wipe out the cash back you earned with a bad run of overdrafts.) Also, they will give you deposit envelopes to mail off a check to them ' for free. It's not quite as good as eDepositing your check directly, but it is minimal hassle to drop a check in the mail.

ING Electric Orange Checking Account

ING Direct is one of the most beloved online banking institutions out there because they were one of the first online accounts that paid great interest on savings. Over time the bank has branched out and now offers an online checking account called ING Electric Orange.

Here's what you get with this account:

• $50 bonus
• Competitive interest rate
• Free online bill pay
• Free unlimited check writing (ING prints and mails the check for you!)
• 35,000+ free ATMs
• No monthly maintenance fee
• Incredibly low overdraft costs

If you open an account today, ING will give you $50 just for using your debit card 3 times in the first 45 days. (Alternatively, you can use the free Person2Person payment system 3 times, or any combination of the two.) That's a free $50 just for trying out the account.

The overdraft protection is called an Overdraft Line of Credit. Instead of hitting you with massive fees for each charge you overdraft, ING gives you a $165 line of credit to pull against if you need to. Let's say you have $500 in your account, but need to spend $600 during an emergency. The charge will go through and you will draw down your line of credit from $165 to $65. The $100 you borrowed is now charging you interest for borrowing the money, but we're talking pennies on the dollar for the overdraft. If you borrowed $100 for 10 days on overdraft your total fee would be approximately $0.31. Compared to the $30 to $35 a normal bank would charge you for each overdraft charge you're looking at a 99% savings for the overdraft.

ING also provides an extensive network of free ATMs, and doesn't force you into account minimums (although you do need a minimum deposit to open an account) or activity requirements. A great perk of using ING's Electric Orange account is you can easily connect to all of your other ING accounts like savings, CDs, and even ShareBuilder. ING offers free online bill pay, and will send out paper checks if that is needed. You can receive a debit card and order checks from ING. Additionally, it's possible engage in Person2Person banking transactions ' sending payments to any bank account.

EverBank

This is a popular choice among people who can maintain a higher account balance. EverBank promises that it will pay a yield in the top 5% of banks nationally, but that high yield also comes with strings attached.

First of all, you need $1,500 to open an account. You will pay a fee unless you keep $5,000 in your account. Once you reach that $5,000 threshold, you will be able to take advantage of free bill pay and ATM reimbursement. EverBank also allows online check deposit.

EverBank's interest rates are set up in five different tiers. The lowest tier is everything under $10,000, but the rate is still competitive. In order to get the absolute best available rates, you need to have more than $100,000 on deposit. (However, the middle tiers do pay competitive rates compared to other online checking accounts.)

• Competitive interest rate
• Free online bill pay (if your average monthly balance is > $5,000; otherwise $8.95)
• Free ATM reimbursement (if your average monthly balance is > $5,000)
• No monthly maintenance fee
• Deposit checks from home

EverBank also has a $50 guarantee. The bank rates highly for customer service, and is willing to back it up. If you close aren't satisfied after three months, EverBank will send you $50. Of course, there are requirements you have to meet, such as using online bill pay, as well as providing proper notice of account closing, within three months of opening your account.

Schwab High Yield Investor Checking

The brokerage giant Schwab actually offers banking services as well. This account is linked to a Schwab One brokerage account, and you don't pay any fees to maintain either account. The checking account earns a yield (variable) of 0.10% at the time of this writing. There are no account minimums, and there is no minimum opening deposit for this account. You are issued free standard checks as well as a debit card.

One of the great perks of Schwab's checking account is that you get free ATM access worldwide. No matter where you go, you will receive a rebate for the ATM fees you pay. If you are a frequent traveler, this can be quite useful, as can the fact that your debit card is a Visa branded platinum card that can be swiped as a credit card in most businesses around the world.

Choosing an Online Checking Account

First and foremost, you want to make sure that any online checking account you open is insured by the FDIC. All of the banks above are FDIC-insured, so your deposits are insured for up to $250,000.

Next, consider your own needs and requirements. For those who are looking for a safe place to park a large emergency fund, EverBank can be a good choice, since you can maintain the $5,000 minimum to keep the fees at bay. However, if you are using your online checking account as a primary account, you'll want an account that has no minimum balance requirements.

You should also consider the perks available, and the interest yield paid. Figure out which bank will help you get the most bang for your buck, and which is likely to provide you with all of the services that you need.

8 Warning Signs You Need to Fire Your Financial Advisor

Do I really have to say it? You're fired!

You've been working with a financial advisor for some time now, but now you're starting to have doubts that you hired the right person for the job.

Hopefully, you did a background check on them first, right?

Is that financial planner more interested in helping you achieve your financial dream or just trying to sell you something?

Too often people have handed their money over to a financial advisor without researching whether they were good or not.

Even worse is that when they suspect that they are not getting the service they deserve, they don't do anything about it.

If you have a suspect financial advisor, here are warning signs that you need use the words of Donald and tell them 'You're Fired' and move on.

1. They Still Don't Know Your Needs

If your financial advisor doesn't take the time to get to know your complete story, how can they possible make a proper recommendation? Think if you went to your doctor and before he even did a diagnosis he was already suggesting you have surgery.  Wouldn't you want a second opinion?  I certainly hope so.  A real financial planner is going to take the time to ask the right questions:

• How much credit card debt do you have?
• How is your health?
• How safe is your job?
• Do you want to buy a home?
• Do you have will or trust?
• Do you have enough in your emergency fund?
• How do you plan to take care of your kids college education?
• When is the last time you checked your beneficiaries?

Your advisor needs to know if it makes sense for you to invest or first take care of any pressing needs.

2. They Don't Tell You How They're Paid

There are many different ways that financial planners make money. They may be commission-based, fee-only, fee-based ' or a combination of the three. Asking what the planner charges will help you know exactly what you are paying throughout the working relationship.  If even after they explain it to you it doesn't make sense, have them put in writing.   That way you erase any doubt.

There is a cost associated with any investment that you make. It is most likely that you will pay the advisor's fee or commission. The advisor needs to be clear on what it's going to cost you.

3. Don't Be Rushed Into Anything

If you feel like you are on the receiving end of a Boiler Room type sales pitch, you need to run real fast.  When it comes to investing for your retirement, the last thing you want to be in is some investment that does not meet your needs.

You should never  feel pressured to 'Act Now' or else.  If that's the case, you only thing you need to act on is firing that financial advisor!

4. They Want to Put Everything in One Investment

While cliche, the old adage 'Don't put all your eggs in one basket' has a lot of merit. If your advisor is adamant about putting all your money into one investment, be wary.

Diversification is typically the basic fundamental principle of any investment portfolio.  If an advisor is trying to sway you into buying one thing, he or she may have dollar signs in their eyes and not your best interest.

5. They Don't Inform You of Changes

If there abrupt changes in the holdings of your portfolio, do you really want to hear about it by watching CNBC?  You want to make sure your financial advisor is on top of your investments and looking out for you.

6. Legitimate Monthly Statements

I once had a Madoff-like occurrence in my very own backyard. A client of mine had been investing through his 403b plan at work.  He thought he would investing through a reputable company and later found out that the advisor in charge never invested the funds.  He showed me the statement that was produced and it was one of the best counterfeit statements I've ever seen.

Your advisor should send you a monthly statement summarizing all that month's transactions, including deposits, withdrawals, and current positions held. This statement must come directly from the brokerage firm that's holding your money, not from your adviser's office.

They Don't Send You Quarterly & Annual Reports

At minimum, you should receive quarterly and annual reports from your advisor. Any less than that and I would start asking some questions. These reports explain the return your advisor is getting on your investments, as well as all fees and commissions.

These reports should illustrate all the realized gains or losses (all the money you actually made or lost from selling an investment) and all the unrealized gains and losses (investments you own but have not yet sold and thus that have not yet realized a profit or loss). These reports should also include returns of the overall index. You want to make sure you have a record of everything.

You should also look into getting online access.  That way you can routinely check your account balances to make sure everything is on the up and up.  Don't get caught up in the day to day fluctuations, though.

7. Advisor Wants a Check Directly Made out to Him/Her

The ultimate warning sign is if the advisor asks you to write a check made out to him/her personally. If the advisor asks you to write him a personal check, that is a clear red flag. Never, never, write out a check directly to the advisor. Especially, if you are purchasing some kind of investment product.

In my home town we had a financial advisor who got was doing just that.  He had been a financial advisor for many years and recently was just charged with financial exploitation of the elderly. In one instance, he had gone to one of his clients and was trying to sell her an annuity. She trusted her advisor and considered him a friend and wrote him a check. A check directly to him, not the insurance company, in the amount for $20,000 and then he disappeared. As it turns out, she was not the only client  that had been taken advantage of.  Every check is to be payable to an institution.

8. They Don't Return Your Phone Call or Emails

One rule that I practice is that I return all of my clients phone call or emails within 24 hours. It's challenging at times, but I put myself in their shoes and know I would not want to wait on getting answer.

I received a new client that was frustrated at her previous advisor.  She had called wanting to get some information on her investments and the advisor had yet to return her call'.5 days later.

Is there any question why that advisor got fired?