Tips That You Can Use To Buy A Top Annuity
by: Steven Hart
There are different investments that you can have, and buy annuities is
one of them. Annuities can be a good investment for individuals looking
to save for retirement. On the other hand, they may be a tragedy for
individuals that are not aware of the drawbacks and dangers that can
easily occur with them. If you are looking for annuities that you can use
as your retirement plan or an investment for your vehicles, then you must
think about several things so that you can avail the top annuity that you
can use.
Safety measures that should be considered
There are different things that should be put into consideration when
shopping for a top annuity. One of these things is that individuals ought
not to buy annuities that have long surrender periods. The reason for
that is the money will be locked up for a long time and that you will
have to surrender money for a long period. Moreover, it is important not
to buy such annuities because there are other similar annuities with the
similar interest rates yet the surrender period is much shorter.
In addition, if you are talked into a top annuity that offers first year
bonus interest rates, it is best that you do not buy one. This is due to
that companies that offer bonus interest rates on the first year deposit
usually have long surrender periods. Moreover, it is important to have
knowledge about the importance of the partial 1035 exchange and the
exclusion ratios. This part is important yet to a certain extent is a
complex matter. You have to properly structure the annuity contract from
the starting day. This is so that you can maximize the taxable exclusion
ratios. This will greatly help if you decide to take an annuitization
income from your pensions in the future.
Furthermore, when buying a top annuity, it is best that you do not use
small companies especially if the company has dubious financial ratings.
It is vital to know the paying ability of the companies to those that are
collecting their claims. This is what many people often forget. They buy
annuities without even factoring things such as bankruptcy of the
insuring company. There is a possibility that bankruptcy may happen
especially if the insuring company has financial troubles. For that
reason, it is best to consider this factor.
It is also vital to know the assured coverage for every individual for
every insurance company. If the insuring company becomes bankrupt, there
should be a guaranteed cover for every person for every insuring company.
If the insuring company does not provide such coverage, then you should
not invest with that company. The reason for this is if the company goes
bankrupt, the individual that has invested in it can lose his or her
savings.
Overall, you must choose the right insuring company when buying annuities
that you need. Moreover, it is best to have safety measures when looking
for companies where you will buy annuities. You can look into
http://www.freeannuityrates.com
to have more idea on how to buy a top annuity.
About The Author
Steven Hart is author of this article on Top Annuity. Find more
information about Buy Annuities here http://www.freeannuityrates.com
Sunday, June 21, 2009
Saturday, June 20, 2009
REITs and Real Estate Mutual Funds Investing - Scams
REITs and Real Estate Mutual Funds Investing - Scams
by: Robert Shumake
As you begin your investing life, you may have a lot of thoughts in your
head about how investing works and how you acquire and sell stocks,
bonds, mutual funds and other commodities on the stock market. Before you
start throwing your money around you need to understand that most days on
the stock market are not like what you have seen in the movies.
Often in the movies you see a person get a 'great tip' and run to buy up
that stock and make a fortune. They are buying and selling as quick as
they can when tips come in and while they may have started with a few
dollars, suddenly they are a millionaire.
Real life is not like the movies. In real life more often than not those
great investing tips are scams. They may come in the form of e-mails that
offer just you a hot tip about the next big thing that will be hitting
the market.
The only person who is going to profit from this deal is the person who
sent you the e-mail. Usually they are the owner of a company that will
profit when everyone jumps onto that stock. They will sell to you for a
higher price and then when the stock goes to it's real value, which is
much lower than the hype has made it, they will reap the profits while
you will lose your hard earned money.
Instead, you should only put your money into wise investments. One of the
wisest is real estate. Sure, real estate, like every other market, is
dealing with a tough time right now. But that does not mean it is going
to fall through the floor. Instead real estate mutual funds and REITs
have the benefit of a little more stability since they are built on the
foundation of a tangible asset – real estate.
In addition to knowing which market to invest in, there are plenty of
avenues in those markets. While you could purchase individual stocks or
bonds, you may want to go with something a little more solid and diverse
like real estate mutual funds and REITs or real estate investment trusts.
The reason these are more solid is that they are not putting all of their
eggs in one basket. Instead the real estate mutual fund or REIT basket is
filled with a number of real estate related stocks and bonds and
therefore you are getting a lot of shares for one buy in.
The hard part is often picking which one you want. By going onto a
website like REITBuyer.com you can look at the latest news and research
on real estate mutual funds and REITs. REITBuyer.com is the first and
only online brokerage specializing in REITs and real estate mutual funds
so you will have all the information you need at your fingertips without
having to dig through information that is useless to you. Once you've
selected the real estate mutual fund or REIT that is right for you, you
will also be able to make a purchase and watch your portfolio in the same
place.
About The Author
Robert Shumake's mission is to inform the public about mortgage fraud and
real estate scams and to provide tips on how to avoid being a victim.
"Sometimes people will commit identity theft to obtain a housing loan,
sell someone else's house or take over someone else's property," says
Shumake. "It is my goal to inform the public on how to protect themselves
from being victims of this crime."
http://reitbuyer.com
by: Robert Shumake
As you begin your investing life, you may have a lot of thoughts in your
head about how investing works and how you acquire and sell stocks,
bonds, mutual funds and other commodities on the stock market. Before you
start throwing your money around you need to understand that most days on
the stock market are not like what you have seen in the movies.
Often in the movies you see a person get a 'great tip' and run to buy up
that stock and make a fortune. They are buying and selling as quick as
they can when tips come in and while they may have started with a few
dollars, suddenly they are a millionaire.
Real life is not like the movies. In real life more often than not those
great investing tips are scams. They may come in the form of e-mails that
offer just you a hot tip about the next big thing that will be hitting
the market.
The only person who is going to profit from this deal is the person who
sent you the e-mail. Usually they are the owner of a company that will
profit when everyone jumps onto that stock. They will sell to you for a
higher price and then when the stock goes to it's real value, which is
much lower than the hype has made it, they will reap the profits while
you will lose your hard earned money.
Instead, you should only put your money into wise investments. One of the
wisest is real estate. Sure, real estate, like every other market, is
dealing with a tough time right now. But that does not mean it is going
to fall through the floor. Instead real estate mutual funds and REITs
have the benefit of a little more stability since they are built on the
foundation of a tangible asset – real estate.
In addition to knowing which market to invest in, there are plenty of
avenues in those markets. While you could purchase individual stocks or
bonds, you may want to go with something a little more solid and diverse
like real estate mutual funds and REITs or real estate investment trusts.
The reason these are more solid is that they are not putting all of their
eggs in one basket. Instead the real estate mutual fund or REIT basket is
filled with a number of real estate related stocks and bonds and
therefore you are getting a lot of shares for one buy in.
The hard part is often picking which one you want. By going onto a
website like REITBuyer.com you can look at the latest news and research
on real estate mutual funds and REITs. REITBuyer.com is the first and
only online brokerage specializing in REITs and real estate mutual funds
so you will have all the information you need at your fingertips without
having to dig through information that is useless to you. Once you've
selected the real estate mutual fund or REIT that is right for you, you
will also be able to make a purchase and watch your portfolio in the same
place.
About The Author
Robert Shumake's mission is to inform the public about mortgage fraud and
real estate scams and to provide tips on how to avoid being a victim.
"Sometimes people will commit identity theft to obtain a housing loan,
sell someone else's house or take over someone else's property," says
Shumake. "It is my goal to inform the public on how to protect themselves
from being victims of this crime."
http://reitbuyer.com
Friday, June 19, 2009
A Guide to Credit Card Counseling
A Guide to Credit Card Counseling
by: Justin Narin
Credit cards are one of the leading causes of consumer debt.
Unfortunately, 2005 bankruptcy reform laws made it harder than ever to
reduce credit card debt through bankruptcy. Fortunately, you can still
find a way out of debt if you’re committed. Credit counseling can help.
If you’re drowning in debt, you have to stop using your cards. Paying
cash is the only way to get a true picture of how and where you spend
money. Paying cash also curbs your spending because it feels like “real
money.” Once you’ve reduced your spending, you’ll have more money to pay
off the debts.
Start by cutting up your credit cards. Then contact your creditors and
ask them to reduce your interest rates. You should also consider debt
consolidation to further lower your interest rates and streamline your
payments.
If that doesn’t help you begin to pay down your debt, then it’s time to
get professional help from a credit counseling service.
Professional Credit Card Counseling
When you visit a credit counseling service, don’t expect a magic bullet
that will eliminate your debts and allow you to keep spending the way you
always have. Instead, you’ll be expected to change your spending habits
and work had to pay off your debt. Most counselors will walk you through
the following steps:
* Stop using credit cards. You can’t get out of debt while you continue
to create new debt.
* Analyze your income and expenses. As the counselor goes over your
budget with you, she’ll recommend places you can cut your spending to
free up more money for debt payments. For example, she may suggest
cancelling cable, eating out less, driving less, or not buying clothes,
accessories, and entertainment products while you work on your debt.
* Create a debt solution. Most counselors will recommend one of three
debt solutions: credit card consolidation, debt management, and debt
settlement.
* With debt consolidation, the counselor will arrange for a personal or
home equity loan that will be used to pay off your other debts. You’ll
then have the responsibility of paying off the consolidation loan.
* With a debt management plan, all of your debts will be enrolled in a
2-4 year program. The counselor negotiates with your creditors to lower
your interest rates. You then pay the service every month, which
distributes the funds appropriately. You’re barred from using the cards
or acquiring new debt while in the program.
* With debt settlement, your counselor will negotiate with your creditors
to reduce the total balance due. This option is reserved for very serious
situations because it will damage your credit history and credit score
significantly. There may also be tax implications.
The solution recommended by the debt counselor depends largely on your
current income, necessary expenses, and the size of your debt. Try to
find the solution with the lowest fees and fastest resolution so that you
can get out of debt and move forward with your new-debt free life.
You should also work hard to change your spending habits so that you
don’t find yourself in debt again. Ask your counselor for educational
materials about budgeting, money management, and financial planning. The
credit counseling service may also offer free or low-cost classes on
controlling even your required expenses, like groceries. The more you
save on your expenses, the more you have to pay off those credit cards.
If you need to get your debt under control, and the DIY options aren’t
right for you, contact a credit counseling service for help finding the
best solution for you. You can get out of debt.
For more articles on credit card counseling, please visit:
http://www.bills.com/credit-card-counseling/
About The Author
Justin Narin has 5 years of experience as a financial adviser; his key
areas are loan consolidation, debt relief, mortgages etc. For more free
articles and advice visit http://www.Bills.com.
by: Justin Narin
Credit cards are one of the leading causes of consumer debt.
Unfortunately, 2005 bankruptcy reform laws made it harder than ever to
reduce credit card debt through bankruptcy. Fortunately, you can still
find a way out of debt if you’re committed. Credit counseling can help.
If you’re drowning in debt, you have to stop using your cards. Paying
cash is the only way to get a true picture of how and where you spend
money. Paying cash also curbs your spending because it feels like “real
money.” Once you’ve reduced your spending, you’ll have more money to pay
off the debts.
Start by cutting up your credit cards. Then contact your creditors and
ask them to reduce your interest rates. You should also consider debt
consolidation to further lower your interest rates and streamline your
payments.
If that doesn’t help you begin to pay down your debt, then it’s time to
get professional help from a credit counseling service.
Professional Credit Card Counseling
When you visit a credit counseling service, don’t expect a magic bullet
that will eliminate your debts and allow you to keep spending the way you
always have. Instead, you’ll be expected to change your spending habits
and work had to pay off your debt. Most counselors will walk you through
the following steps:
* Stop using credit cards. You can’t get out of debt while you continue
to create new debt.
* Analyze your income and expenses. As the counselor goes over your
budget with you, she’ll recommend places you can cut your spending to
free up more money for debt payments. For example, she may suggest
cancelling cable, eating out less, driving less, or not buying clothes,
accessories, and entertainment products while you work on your debt.
* Create a debt solution. Most counselors will recommend one of three
debt solutions: credit card consolidation, debt management, and debt
settlement.
* With debt consolidation, the counselor will arrange for a personal or
home equity loan that will be used to pay off your other debts. You’ll
then have the responsibility of paying off the consolidation loan.
* With a debt management plan, all of your debts will be enrolled in a
2-4 year program. The counselor negotiates with your creditors to lower
your interest rates. You then pay the service every month, which
distributes the funds appropriately. You’re barred from using the cards
or acquiring new debt while in the program.
* With debt settlement, your counselor will negotiate with your creditors
to reduce the total balance due. This option is reserved for very serious
situations because it will damage your credit history and credit score
significantly. There may also be tax implications.
The solution recommended by the debt counselor depends largely on your
current income, necessary expenses, and the size of your debt. Try to
find the solution with the lowest fees and fastest resolution so that you
can get out of debt and move forward with your new-debt free life.
You should also work hard to change your spending habits so that you
don’t find yourself in debt again. Ask your counselor for educational
materials about budgeting, money management, and financial planning. The
credit counseling service may also offer free or low-cost classes on
controlling even your required expenses, like groceries. The more you
save on your expenses, the more you have to pay off those credit cards.
If you need to get your debt under control, and the DIY options aren’t
right for you, contact a credit counseling service for help finding the
best solution for you. You can get out of debt.
For more articles on credit card counseling, please visit:
http://www.bills.com/credit-card-counseling/
About The Author
Justin Narin has 5 years of experience as a financial adviser; his key
areas are loan consolidation, debt relief, mortgages etc. For more free
articles and advice visit http://www.Bills.com.
Thursday, June 18, 2009
Improve Your Financial Health by Spending Less and Increasing Your Income
Improve Your Financial Health by Spending Less and Increasing Your Income
by: Elizabeth Williams
In a tough economic climate such as the one we're living in, there is a
lot of advice about how to cut expenses or increase income. Both concepts
are good and can improve your financial situation, but combining the two
concepts and working together during a specific time period will catapult
your results. You'll be amazed at how possible it is to live on less
money and actually enjoy it more.
1. Think about shopping in a different way. Instead of mindlessly heading
to the grocery store each week, start questioning your purchasing habits.
Make a shopping list of necessities, use up what's in your pantry,
freezer or cabinets, and shop the sales with coupons to further your
savings. You'd be surprised how much you buy each shopping trip that
really isn't needed to make your meals. At first it will feel like a
major lifestyle change, but after a few weeks it will become habit and
you'll have taken great strides for reducing your expenses.
2. Look at your checkbook register carefully. This is a common place that
you can see all of your expenses and probably find areas you are
overspending, especially if you are a debit card user. It tells so much
about who you are and what you do with your money. If you see a number of
small purchases with the debit card for coffee and other treats, consider
giving yourself a weekly cash allowance and don't dip into the checking
account. That will keep you on track and avoid spending money that you
aren't even aware of how much it's adding up to at the end of the month.
3. Eliminate anything that isn't a necessity. This takes discipline and a
keen eye for what is really legitimate and that which can be trimmed out
to help with the budget. Basically, if it isn't a monthly living expense
like mortgage or rent, debt repayments or utility or food bills – it's
not a necessity. This may seem too strict, but taking a radical approach
just might be the thing that forces you to think differently about your
lifestyle and how you spend money. Give yourself a 30 day no spending
challenge – make sure you've got enough groceries to make it through a
month (or set aside a few dollars for dairy products and produce
throughout the month) and don't spend anything except for monthly
recurring living expenses and your existing debt repayments.
4. Pretend you've lost your job. What would you do if this happened? You
would reduce your expenses to the bare minimum right? Pretend you've lost
your job, but without the loss of income, you suddenly have more money
available. Start an emergency fund in case you really do lose your job
with the savings of living more frugally, or pay off credit card debt.
Look for balance transfer offers to save on interest and expenses for
debt you can't pay off immediately.
5. Increase income creatively. Declutter your house and sell things on
ebay or in yard sales. Bring items to consignment shops. Consider a
temporary part time job or a way to start another income source online or
otherwise.
If you just choose lowering expenses over income generation, the synergy
between the two is lost. Doing both will maximize your savings and give
you additional money to pay off debt and increase the money you have
saved.
About The Author
Elizabeth Williams, Editor-in-Chief for http://www.CreditCardFlyers.com
Need to transfer higher interest credit to a lower interest credit card
to save money? http://www.CreditCardFlyers.com is the leader in online balance transfer
offers. Compare balance transfers and find the one that meets your needs.
by: Elizabeth Williams
In a tough economic climate such as the one we're living in, there is a
lot of advice about how to cut expenses or increase income. Both concepts
are good and can improve your financial situation, but combining the two
concepts and working together during a specific time period will catapult
your results. You'll be amazed at how possible it is to live on less
money and actually enjoy it more.
1. Think about shopping in a different way. Instead of mindlessly heading
to the grocery store each week, start questioning your purchasing habits.
Make a shopping list of necessities, use up what's in your pantry,
freezer or cabinets, and shop the sales with coupons to further your
savings. You'd be surprised how much you buy each shopping trip that
really isn't needed to make your meals. At first it will feel like a
major lifestyle change, but after a few weeks it will become habit and
you'll have taken great strides for reducing your expenses.
2. Look at your checkbook register carefully. This is a common place that
you can see all of your expenses and probably find areas you are
overspending, especially if you are a debit card user. It tells so much
about who you are and what you do with your money. If you see a number of
small purchases with the debit card for coffee and other treats, consider
giving yourself a weekly cash allowance and don't dip into the checking
account. That will keep you on track and avoid spending money that you
aren't even aware of how much it's adding up to at the end of the month.
3. Eliminate anything that isn't a necessity. This takes discipline and a
keen eye for what is really legitimate and that which can be trimmed out
to help with the budget. Basically, if it isn't a monthly living expense
like mortgage or rent, debt repayments or utility or food bills – it's
not a necessity. This may seem too strict, but taking a radical approach
just might be the thing that forces you to think differently about your
lifestyle and how you spend money. Give yourself a 30 day no spending
challenge – make sure you've got enough groceries to make it through a
month (or set aside a few dollars for dairy products and produce
throughout the month) and don't spend anything except for monthly
recurring living expenses and your existing debt repayments.
4. Pretend you've lost your job. What would you do if this happened? You
would reduce your expenses to the bare minimum right? Pretend you've lost
your job, but without the loss of income, you suddenly have more money
available. Start an emergency fund in case you really do lose your job
with the savings of living more frugally, or pay off credit card debt.
Look for balance transfer offers to save on interest and expenses for
debt you can't pay off immediately.
5. Increase income creatively. Declutter your house and sell things on
ebay or in yard sales. Bring items to consignment shops. Consider a
temporary part time job or a way to start another income source online or
otherwise.
If you just choose lowering expenses over income generation, the synergy
between the two is lost. Doing both will maximize your savings and give
you additional money to pay off debt and increase the money you have
saved.
About The Author
Elizabeth Williams, Editor-in-Chief for http://www.CreditCardFlyers.com
Need to transfer higher interest credit to a lower interest credit card
to save money? http://www.CreditCardFlyers.com is the leader in online balance transfer
offers. Compare balance transfers and find the one that meets your needs.
Wednesday, June 17, 2009
What's Better 401(k) or Roth IRA?
What's Better 401(k) or Roth IRA?
by: Rocco Beatrice
One of the most frequently asked questions planners get about retirement
planning is what's better for retirement planning: a 401(k) or a Roth
IRA. The answer may not be as straightforward as it might seem.
WHAT ARE THE OPTIONS?
401(K)
Under section 401(k) of the IRS code, a 401(k) is an employer-sponsored
deferred contribution plan for retirement. In your workplace, you set up
a 401(k) plan with human resources and choose options within the defined
plan. Your employer takes money out of your paycheck prior to income
taxes being taken out and deposits this into your 401(k) plan. Some
employers even match your contributions. When you retire, you can decide
to withdraw money out of the 401(k), but those withdrawals are subject to
income tax when they are taken out 10,20, 30 years later. Currently,
there are no income limitations on who can contribute, but an individual
can contribute at most $15,500 to their 401(k) in 2008. $46,000 is the
maximum aggregate amount that can be contributed between employer and
employee in 2008.
ROTH IRA
Senator William Roth was the chief sponsor of this movement. A Roth IRA
is an individual retirement account independent from your employer that
you create directly with a custodian firm. After a Roth IRA account is
set up, these plans have a much wider investment selection typically, and
then directly deposit after-tax money from your checking account into the
Roth IRA. Then, after you turn 59 1/2 years old and have had the plan for
at least five years, you can withdraw from the account entirely tax free.
In 2009, the maximum you can contribute is $5,000 a year (unless you're
over 50). There is one big qualification: if you make more than $99,000
individually or $156,000 as a married couple, you cannot contribute the
full amount (and may not be able to contribute at all).
401(K) OR ROTH IRA: THE LARGEST DIFFERENCES (PROS & CONS)
The largest differences between the two plans are workplace
contributions, investment options/management, and taxes. Let's walk
through each feature.
1) Workplace contributions - Employers with a 401(k) retirement plan may
or may not match contributions made by an employee. For example, a 401(k)
program may offer a 50% match for every dollar the employee contributes
to a 401(k) up to 4% of the salary. Therefore, if the employee
contributes 4% of their salary to their 401(k), the employer also puts in
an extra 2% of your salary, effectively increasing your contribution by
50%. In short, employers that offer matching contributions to your 401(k)
should be revered. This typically trumps any other consideration
regarding the decision to contribute to a 401(k). It's free money, like a
year-end bonus that comes every 2 weeks - don't turn it down.
2) Investment options - With a 401(k), you're forced into whatever
management and investment options are offered to you by the plan your
employer offers which usually mean the investment choices are restrictive
and expensive. Things to watch out for in these investment plans are
mutual fund expense ratios and investment options. A Roth IRA is
extremely flexible and allows one to choose investment options - you even
pick the custodian you want to use. Roth IRAs offer an advantage with
regards to flexibility of investment choices, though if your 401(k)
offers solid options, this may not be a great advantage รข€“ but most
don't.
3) Taxes - This is really the tough one out of the three because it
involves a level of prediction of what the future holds for you. If you
think your income tax rate will be higher at the time of withdrawal than
it is currently, a Roth IRA is the better choice and will save you in the
long run.
How can someone expect to know future tax rates? Here are a few things to
consider:
Will my income grow significantly between now and retirement? If you
believe it will, you'll likely be in a higher tax bracket at that time,
which favors the Roth. If you feel that you are near your peak, you'll
probably be in the same bracket or lower, which could favor the 401(k).
Do I expect to be working in my retirement years? If you believe that you
will, you have a high chance of being in the same tax bracket or higher
than you are now. If the answer is no, likely your income will be lower.
Will the political landscape shift towards higher tax rates? It is easy
to speculate that with the expected budget deficits, tax rates will go
up, and that favors the Roth IRA. If you believe they will decline, that
would favor the 401(k).
401(K) OR ROTH IRA: SO WHAT SHOULD I DO?
If your employer offers 401(k) matching, always max it out. This is free
money.
The question really revolves around what to do with additional retirement
money. Given all the above factors, and also assuming you're young and
have many years of income growth ahead of you, a great option is a Roth
IRA.
Finally, there are other tax-free retirement options to consider such as
Roth IRA on Roids for slightly more sophisticated investors. It has all
the benefits of a Roth IRA with no restrictions and guaranteed principal.
Whichever you decide to pursue, by simply putting money away, you're
ahead of the game. Don't let the deliberation keep you from saving - if
all else fails, start making contributions immediately to one or the
other now and then finalize decisions later - you can always change your
mind in the future.
About The Author
Best IRA Rescue provides services on your IRA investments and traditional
IRA and will help you reduce your inherited and beneficiary independent
retirement account taxes in your estate assets. Roth on ROIDS is your
advanced Roth IRA retirement planning strategy and one of the best IRA
tax-savings strategies with benefits of a guaranteed death benefit,
guaranteed principal, tax-free growth, and tax-free distributions from
policy loans.
Contact us if you have any questions on your IRA retirement planning.
http://bestirarescue.com. Original
article:
http://roth-ira.bestirarescue.com/whats-better-401k-or-roth-ira.html
Boston, MA: 71 Commercial Street #150 Boston, MA 02109
California: 543 Victoria Ste. J, Costa Mesa, CA 92627
toll-free: 888-93ULTRA (888-938-5872)
tel: (508) 429-0011
fax: (508) 429-3034
Visit the author's web site at: http://bestirarescue.com
by: Rocco Beatrice
One of the most frequently asked questions planners get about retirement
planning is what's better for retirement planning: a 401(k) or a Roth
IRA. The answer may not be as straightforward as it might seem.
WHAT ARE THE OPTIONS?
401(K)
Under section 401(k) of the IRS code, a 401(k) is an employer-sponsored
deferred contribution plan for retirement. In your workplace, you set up
a 401(k) plan with human resources and choose options within the defined
plan. Your employer takes money out of your paycheck prior to income
taxes being taken out and deposits this into your 401(k) plan. Some
employers even match your contributions. When you retire, you can decide
to withdraw money out of the 401(k), but those withdrawals are subject to
income tax when they are taken out 10,20, 30 years later. Currently,
there are no income limitations on who can contribute, but an individual
can contribute at most $15,500 to their 401(k) in 2008. $46,000 is the
maximum aggregate amount that can be contributed between employer and
employee in 2008.
ROTH IRA
Senator William Roth was the chief sponsor of this movement. A Roth IRA
is an individual retirement account independent from your employer that
you create directly with a custodian firm. After a Roth IRA account is
set up, these plans have a much wider investment selection typically, and
then directly deposit after-tax money from your checking account into the
Roth IRA. Then, after you turn 59 1/2 years old and have had the plan for
at least five years, you can withdraw from the account entirely tax free.
In 2009, the maximum you can contribute is $5,000 a year (unless you're
over 50). There is one big qualification: if you make more than $99,000
individually or $156,000 as a married couple, you cannot contribute the
full amount (and may not be able to contribute at all).
401(K) OR ROTH IRA: THE LARGEST DIFFERENCES (PROS & CONS)
The largest differences between the two plans are workplace
contributions, investment options/management, and taxes. Let's walk
through each feature.
1) Workplace contributions - Employers with a 401(k) retirement plan may
or may not match contributions made by an employee. For example, a 401(k)
program may offer a 50% match for every dollar the employee contributes
to a 401(k) up to 4% of the salary. Therefore, if the employee
contributes 4% of their salary to their 401(k), the employer also puts in
an extra 2% of your salary, effectively increasing your contribution by
50%. In short, employers that offer matching contributions to your 401(k)
should be revered. This typically trumps any other consideration
regarding the decision to contribute to a 401(k). It's free money, like a
year-end bonus that comes every 2 weeks - don't turn it down.
2) Investment options - With a 401(k), you're forced into whatever
management and investment options are offered to you by the plan your
employer offers which usually mean the investment choices are restrictive
and expensive. Things to watch out for in these investment plans are
mutual fund expense ratios and investment options. A Roth IRA is
extremely flexible and allows one to choose investment options - you even
pick the custodian you want to use. Roth IRAs offer an advantage with
regards to flexibility of investment choices, though if your 401(k)
offers solid options, this may not be a great advantage รข€“ but most
don't.
3) Taxes - This is really the tough one out of the three because it
involves a level of prediction of what the future holds for you. If you
think your income tax rate will be higher at the time of withdrawal than
it is currently, a Roth IRA is the better choice and will save you in the
long run.
How can someone expect to know future tax rates? Here are a few things to
consider:
Will my income grow significantly between now and retirement? If you
believe it will, you'll likely be in a higher tax bracket at that time,
which favors the Roth. If you feel that you are near your peak, you'll
probably be in the same bracket or lower, which could favor the 401(k).
Do I expect to be working in my retirement years? If you believe that you
will, you have a high chance of being in the same tax bracket or higher
than you are now. If the answer is no, likely your income will be lower.
Will the political landscape shift towards higher tax rates? It is easy
to speculate that with the expected budget deficits, tax rates will go
up, and that favors the Roth IRA. If you believe they will decline, that
would favor the 401(k).
401(K) OR ROTH IRA: SO WHAT SHOULD I DO?
If your employer offers 401(k) matching, always max it out. This is free
money.
The question really revolves around what to do with additional retirement
money. Given all the above factors, and also assuming you're young and
have many years of income growth ahead of you, a great option is a Roth
IRA.
Finally, there are other tax-free retirement options to consider such as
Roth IRA on Roids for slightly more sophisticated investors. It has all
the benefits of a Roth IRA with no restrictions and guaranteed principal.
Whichever you decide to pursue, by simply putting money away, you're
ahead of the game. Don't let the deliberation keep you from saving - if
all else fails, start making contributions immediately to one or the
other now and then finalize decisions later - you can always change your
mind in the future.
About The Author
Best IRA Rescue provides services on your IRA investments and traditional
IRA and will help you reduce your inherited and beneficiary independent
retirement account taxes in your estate assets. Roth on ROIDS is your
advanced Roth IRA retirement planning strategy and one of the best IRA
tax-savings strategies with benefits of a guaranteed death benefit,
guaranteed principal, tax-free growth, and tax-free distributions from
policy loans.
Contact us if you have any questions on your IRA retirement planning.
http://bestirarescue.com. Original
article:
http://roth-ira.bestirarescue.com/whats-better-401k-or-roth-ira.html
Boston, MA: 71 Commercial Street #150 Boston, MA 02109
California: 543 Victoria Ste. J, Costa Mesa, CA 92627
toll-free: 888-93ULTRA (888-938-5872)
tel: (508) 429-0011
fax: (508) 429-3034
Visit the author's web site at: http://bestirarescue.com
Tuesday, June 16, 2009
Selling Secrets From The Farmer's Market
Selling Secrets From The Farmer's Market
by: Robert Schneider
I love going to the Farmer's Market. It’s a weekly ritual that forces me
out of my cave and into the sunlight. I get to stretch my legs, buy fresh
produce, and meet people in the heat of personal one-to-one sales.
There are about 15-30 vendors at the two markets close to my house. They
range from veggies and fruits to tamales and carrot cakes. Most f the
food is organic, locally grown and the guy selling it is the guy who
picked it. I feel so much closer to my food.
Okay, so I'm a little bit sentimental. But the Ralph's clerk just doesn't
give a rip about what they are selling. The market vendors are intimately
connected to their wares. And their attitudes and behaviors reflect that
connection. I think the closeness makes the food more satisfying.
As always, there are a few lessons to learn from this weekly trek. Most
of these folks are farmers and artists. They haven't been school in
selling. Most of the good things they do are instinctual rather than
purposeful. And many of the things they do wrong are a result of no
training. But ALL the lessons can help you.
Massive competition
The bulk of these vendors are selling produce. Potatoes, celery, carrots,
lettuce and peaches. It's all seasonal so everything changes throughout
the year. Which is a bummer because I wish avocados were always "in
season." I'm going to chat with God about that one.
A good half of the vendors at both markets are selling the same stuff.
Different farms, different crews, identical product. It's displayed the
same way, looks the same, and probably is grown the same. So, what makes
me choose one vendor of the other? Proximity. That one is 5 feet closer.
There is nothing distinctive about these vendors. Not even their charisma
(farmers, not performers). This is most businesses. You and ten other
companies are selling the same product to the same prospect. You set up
shop and hope that the guy walks closer to your stand.
Very few people are able to sell in a vacuum. The environment where you
have virtually no competition. Usually, if you have that, it's because
nobody wants your product. And if you do, it won't last for long.
Differentiate your product. Any of these vendors could do more to set
themselves apart. Instead of putting all their products on the table in a
pile, they could bundle them. Maybe create a "dinner" kit that has a
variety of items for this weeks menu. They could even provide yummy
recipes for the different items. Consultative selling for produce.
Perfect.
Of course, they can grow organic products and charge a higher price,
which some do. How about telling the story of the farm? Show pictures of
the facilities and the workers. Create a stronger bond between the
shopper and the creator. Give a feeling of involvement in the life of the
worker.
One of the fruit vendors gives me a couple extra pieces of fruit with my
purchase. I ALWAYS go to them while the place across the market is
wondering why nobody is over there.
What can you do to be different from the competition? You don't need to
change your product even. Just focus on changing the presentation.
Personal Relationships
Most of the vendors miss this. A few get it. The mystic of the market
experience is personally connecting with the people who make your food.
That's one of the reasons people enjoy shopping there.
The vendors that recognize me, acknowledge I'm a regular shopping and
show appreciation get my business. If they ask (and remember) my name
it's even better.
The fish guy stopped me a couple weeks ago and asked where I had been the
last couple weeks. He doesn't know my name, but he knows I'm a regular.
And he showed me that he notices if I'm not there. He values my business.
And he gets it.
People want these personal relationships. They crave them. They want an
authentic, connective buying experience in EVERY industry. What are you
doing to create that environment in your business? Social media? Events?
Community building? Consistent personal interactions?
Exclusivity
As I said before most of the vendors sell exactly the same thing. They
just hope that I walk by their booth first. The fish guy, the tamale man,
and the juice lady have an exclusive presence. They're it.
Sure, not as many people come to the market for those items. But these
folks can charge any price, get all the business.
You must develop an edge of exclusivity. If you can't change WHAT you
sell, change WHERE you sell, of WHO you sell to. There are other tamale
companies, but not at this market. This guy has essentially eliminated
any competition by NOT selling in the traditional stores. And oh those
tamales are tasty.
What if another vendor had fresh avocados or guacamole in the off-season.
How about selling a unique vegetable that no one else has? What other
kind of non-produce items would fit (art, groceries, etc)? How can you be
exclusive?
Pride
Most of the folks there are the ones that planted the seeds and harvested
the fruit. Part of your problem is you didn't make what you're selling
(in most cases). Your product was made in a sweat shop in China or a hick
in Alabama. You have very little connection to your product.
But pride sells. If you are proud, you'll be excited, confident and a
fervent evangelist. Those attitudes are contagious. I'll go back to the
tamale man. He yelled at me across the market to taste a sample (another
hint). After he reeled me in, he began spinning the story of how they
created these unique tamales. The ingredients are fresh, organic and
pure. They are hand crafted by his mother and daughter. They are the most
tasty I'll ever experience. Oh, and here's a convenient three pack.
My wife enjoyed the tamales. As far as I could tell, they were made of
chicken and corn—like every other tamale around. But I really like the
guy. And I need to eat. He gets my business over Ralph's.
Are you proud of your product. Can you talk about it like parent of a
newborn? Do you get a twinkle in your eye when people ask questions? Do
people have to tell you to STOP talking about your business? That's a
good sign, by the way.
The vendors that do well, are very intentional about how they sell. The
others are accidental. Sitting in their booth hoping that someone will
walk by and desperately need their carrots. Guess what…they don't. You
need to help reveal that need. Position your product as the only solution
to that need. And make an irresistible offer.
I encourage you to find a local farmer's market. Walk around for awhile.
Watch. Learn. And get some really great food. Experience a sales
environment where every dollar counts. It's a fantastic experience.
About The Author
~Robert Schneider - http://www.AccidentalSelling.com - http://www.VisionPipeline.com
I’m passionate about sales, marketing, and business strategy. Nothing
thrills me more than seeing people and businesses thrive. I spend a lot
of time thinking, observing, and writing about my experiences in the
trenches of the entrepreneurial battlefield. Hopefully, some of the stuff
I've learned can help you!
by: Robert Schneider
I love going to the Farmer's Market. It’s a weekly ritual that forces me
out of my cave and into the sunlight. I get to stretch my legs, buy fresh
produce, and meet people in the heat of personal one-to-one sales.
There are about 15-30 vendors at the two markets close to my house. They
range from veggies and fruits to tamales and carrot cakes. Most f the
food is organic, locally grown and the guy selling it is the guy who
picked it. I feel so much closer to my food.
Okay, so I'm a little bit sentimental. But the Ralph's clerk just doesn't
give a rip about what they are selling. The market vendors are intimately
connected to their wares. And their attitudes and behaviors reflect that
connection. I think the closeness makes the food more satisfying.
As always, there are a few lessons to learn from this weekly trek. Most
of these folks are farmers and artists. They haven't been school in
selling. Most of the good things they do are instinctual rather than
purposeful. And many of the things they do wrong are a result of no
training. But ALL the lessons can help you.
Massive competition
The bulk of these vendors are selling produce. Potatoes, celery, carrots,
lettuce and peaches. It's all seasonal so everything changes throughout
the year. Which is a bummer because I wish avocados were always "in
season." I'm going to chat with God about that one.
A good half of the vendors at both markets are selling the same stuff.
Different farms, different crews, identical product. It's displayed the
same way, looks the same, and probably is grown the same. So, what makes
me choose one vendor of the other? Proximity. That one is 5 feet closer.
There is nothing distinctive about these vendors. Not even their charisma
(farmers, not performers). This is most businesses. You and ten other
companies are selling the same product to the same prospect. You set up
shop and hope that the guy walks closer to your stand.
Very few people are able to sell in a vacuum. The environment where you
have virtually no competition. Usually, if you have that, it's because
nobody wants your product. And if you do, it won't last for long.
Differentiate your product. Any of these vendors could do more to set
themselves apart. Instead of putting all their products on the table in a
pile, they could bundle them. Maybe create a "dinner" kit that has a
variety of items for this weeks menu. They could even provide yummy
recipes for the different items. Consultative selling for produce.
Perfect.
Of course, they can grow organic products and charge a higher price,
which some do. How about telling the story of the farm? Show pictures of
the facilities and the workers. Create a stronger bond between the
shopper and the creator. Give a feeling of involvement in the life of the
worker.
One of the fruit vendors gives me a couple extra pieces of fruit with my
purchase. I ALWAYS go to them while the place across the market is
wondering why nobody is over there.
What can you do to be different from the competition? You don't need to
change your product even. Just focus on changing the presentation.
Personal Relationships
Most of the vendors miss this. A few get it. The mystic of the market
experience is personally connecting with the people who make your food.
That's one of the reasons people enjoy shopping there.
The vendors that recognize me, acknowledge I'm a regular shopping and
show appreciation get my business. If they ask (and remember) my name
it's even better.
The fish guy stopped me a couple weeks ago and asked where I had been the
last couple weeks. He doesn't know my name, but he knows I'm a regular.
And he showed me that he notices if I'm not there. He values my business.
And he gets it.
People want these personal relationships. They crave them. They want an
authentic, connective buying experience in EVERY industry. What are you
doing to create that environment in your business? Social media? Events?
Community building? Consistent personal interactions?
Exclusivity
As I said before most of the vendors sell exactly the same thing. They
just hope that I walk by their booth first. The fish guy, the tamale man,
and the juice lady have an exclusive presence. They're it.
Sure, not as many people come to the market for those items. But these
folks can charge any price, get all the business.
You must develop an edge of exclusivity. If you can't change WHAT you
sell, change WHERE you sell, of WHO you sell to. There are other tamale
companies, but not at this market. This guy has essentially eliminated
any competition by NOT selling in the traditional stores. And oh those
tamales are tasty.
What if another vendor had fresh avocados or guacamole in the off-season.
How about selling a unique vegetable that no one else has? What other
kind of non-produce items would fit (art, groceries, etc)? How can you be
exclusive?
Pride
Most of the folks there are the ones that planted the seeds and harvested
the fruit. Part of your problem is you didn't make what you're selling
(in most cases). Your product was made in a sweat shop in China or a hick
in Alabama. You have very little connection to your product.
But pride sells. If you are proud, you'll be excited, confident and a
fervent evangelist. Those attitudes are contagious. I'll go back to the
tamale man. He yelled at me across the market to taste a sample (another
hint). After he reeled me in, he began spinning the story of how they
created these unique tamales. The ingredients are fresh, organic and
pure. They are hand crafted by his mother and daughter. They are the most
tasty I'll ever experience. Oh, and here's a convenient three pack.
My wife enjoyed the tamales. As far as I could tell, they were made of
chicken and corn—like every other tamale around. But I really like the
guy. And I need to eat. He gets my business over Ralph's.
Are you proud of your product. Can you talk about it like parent of a
newborn? Do you get a twinkle in your eye when people ask questions? Do
people have to tell you to STOP talking about your business? That's a
good sign, by the way.
The vendors that do well, are very intentional about how they sell. The
others are accidental. Sitting in their booth hoping that someone will
walk by and desperately need their carrots. Guess what…they don't. You
need to help reveal that need. Position your product as the only solution
to that need. And make an irresistible offer.
I encourage you to find a local farmer's market. Walk around for awhile.
Watch. Learn. And get some really great food. Experience a sales
environment where every dollar counts. It's a fantastic experience.
About The Author
~Robert Schneider - http://www.AccidentalSelling.com - http://www.VisionPipeline.com
I’m passionate about sales, marketing, and business strategy. Nothing
thrills me more than seeing people and businesses thrive. I spend a lot
of time thinking, observing, and writing about my experiences in the
trenches of the entrepreneurial battlefield. Hopefully, some of the stuff
I've learned can help you!
Monday, June 15, 2009
Salaries - Just How Much Are You Worth?
Salaries - Just How Much Are You Worth?
by: Todd Bavol
Regardless of income, job, background or education, nearly everyone
thinks they are entitled to more money than they are getting. Salary
negotiation, however, has to be based on realistic expectations within
the current marketplace and, like investments, ‘what you are worth’ in an
employer’s eyes can go up or down.
At one time, trying to get hold of salary information proved quite a
difficult task. As employers are wont to pay as little as possible, while
still trying to keep their employees reasonably happy, they liked to
‘play their cards close to their chests’ for fear that expectations might
rise and their bank balances might suffer. Nowadays, however, it is much
easier to find this information because the Internet has effectively
empowered employees, who now know where to go to get this information.
While data naturally varies from site to site, there is a huge range of
anything from salary surveys to customized compensation analyses
available online. Here are just a few which will help to give you an idea
of what others in your line of work are receiving, or what it might be
reasonable to expect in a different field.
1. Salary.com allows you to input or select from a range of job titles to
find out the US national average for that particular role, such as
National Account Manager. Insert your zip code and you can learn what
percentage of all National Account Managers is employed in your region,
as well as the median salaries for the region. You can even check out the
educational levels within a profession and the variation in salaries
depending upon the size of the employer. By going a step further,
inputting a few straightforward details about your company, industry, job
title, pay and performance and education and the site will give you
access to your own ‘You vs Market’ Report, as well as providing you with
monthly updates on your salary ranges and notifications of any job
postings in your area.
2. Payscale.com is another site which provides accurate, real-time
reports based on your job title, location, education, skills and
experience. It gives you the opportunity to evaluate a job offer or
raise, evaluate your salary for your current job or check out the
salaries for a job that you may be considering for the future.
3. Indeed.com has a link to its own salaries page, providing the average
salaries for jobs according to zip code, as well as historical trends
within particular professions.
4. Vault.com holds a comprehensive range of salary surveys on major
companies, industries and professions, although it has to be said that
when I tried it, many of the links were unavailable and some information
is only available to Vault Gold Members.
5. America’s Career InfoNet at http://www.acinet.org (Link:
http://www.acinet.org) offers salary information on a wide range of
occupations, either nationally or by area. There are yearly and hourly
wage charts, as well as a 2007 wage table which is useful for comparative
purposes, for each occupation.
6. The United States Department of Labor’s Bureau of Labor Statistics
provides a wealth of current and historical surveys and statistical data,
as well as all that contained within its Occupational Outlook Handbook
and Career Guide to Industries.
Of course, especially in a tough economic climate, there may appear to be
a huge gulf between what you think you are worth and what employers are
willing to pay (see my post dated 20 April concerning how employers are
putting the squeeze on workers), but doing your research and going into
the marketplace with even a rough idea of what is reasonable is certainly
better than completely ‘outpricing’ or undervaluing yourself.
The other thing to remember is that salary ranges are all very well, but
the key to maximizing your compensation is about clearly demonstrating
the benefits that you can bring to an organization. A well-documented
performance which provides a prospective employer with quantitative
results and shows him how you solved problems or accomplished tasks is
pretty tough to argue with!
About The Author
I am committed to providing people quick access to job search and career
information. Over 20 years of experience in the HR and Career Coaching
field has given me a vast amount of information and resources to share
with you. My natural curiosity and desire to be on the leading edge of
EVERYTHING, brings value to you as a blog participant because I will keep
you informed of updates, changes and innovations that will assist you in
finding the job
http://www.integritycareertransitions.com/blog
by: Todd Bavol
Regardless of income, job, background or education, nearly everyone
thinks they are entitled to more money than they are getting. Salary
negotiation, however, has to be based on realistic expectations within
the current marketplace and, like investments, ‘what you are worth’ in an
employer’s eyes can go up or down.
At one time, trying to get hold of salary information proved quite a
difficult task. As employers are wont to pay as little as possible, while
still trying to keep their employees reasonably happy, they liked to
‘play their cards close to their chests’ for fear that expectations might
rise and their bank balances might suffer. Nowadays, however, it is much
easier to find this information because the Internet has effectively
empowered employees, who now know where to go to get this information.
While data naturally varies from site to site, there is a huge range of
anything from salary surveys to customized compensation analyses
available online. Here are just a few which will help to give you an idea
of what others in your line of work are receiving, or what it might be
reasonable to expect in a different field.
1. Salary.com allows you to input or select from a range of job titles to
find out the US national average for that particular role, such as
National Account Manager. Insert your zip code and you can learn what
percentage of all National Account Managers is employed in your region,
as well as the median salaries for the region. You can even check out the
educational levels within a profession and the variation in salaries
depending upon the size of the employer. By going a step further,
inputting a few straightforward details about your company, industry, job
title, pay and performance and education and the site will give you
access to your own ‘You vs Market’ Report, as well as providing you with
monthly updates on your salary ranges and notifications of any job
postings in your area.
2. Payscale.com is another site which provides accurate, real-time
reports based on your job title, location, education, skills and
experience. It gives you the opportunity to evaluate a job offer or
raise, evaluate your salary for your current job or check out the
salaries for a job that you may be considering for the future.
3. Indeed.com has a link to its own salaries page, providing the average
salaries for jobs according to zip code, as well as historical trends
within particular professions.
4. Vault.com holds a comprehensive range of salary surveys on major
companies, industries and professions, although it has to be said that
when I tried it, many of the links were unavailable and some information
is only available to Vault Gold Members.
5. America’s Career InfoNet at http://www.acinet.org (Link:
http://www.acinet.org) offers salary information on a wide range of
occupations, either nationally or by area. There are yearly and hourly
wage charts, as well as a 2007 wage table which is useful for comparative
purposes, for each occupation.
6. The United States Department of Labor’s Bureau of Labor Statistics
provides a wealth of current and historical surveys and statistical data,
as well as all that contained within its Occupational Outlook Handbook
and Career Guide to Industries.
Of course, especially in a tough economic climate, there may appear to be
a huge gulf between what you think you are worth and what employers are
willing to pay (see my post dated 20 April concerning how employers are
putting the squeeze on workers), but doing your research and going into
the marketplace with even a rough idea of what is reasonable is certainly
better than completely ‘outpricing’ or undervaluing yourself.
The other thing to remember is that salary ranges are all very well, but
the key to maximizing your compensation is about clearly demonstrating
the benefits that you can bring to an organization. A well-documented
performance which provides a prospective employer with quantitative
results and shows him how you solved problems or accomplished tasks is
pretty tough to argue with!
About The Author
I am committed to providing people quick access to job search and career
information. Over 20 years of experience in the HR and Career Coaching
field has given me a vast amount of information and resources to share
with you. My natural curiosity and desire to be on the leading edge of
EVERYTHING, brings value to you as a blog participant because I will keep
you informed of updates, changes and innovations that will assist you in
finding the job
http://www.integritycareertransitions.com/blog
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