Check out this Yahoo article for some out of the ordinary economic indicators
http://finance.yahoo.com/banking-budgeting/article/107186/10-quirky-economic-indicators;_ylt=At9Ev1J0uTyd5.7iPwtZXdiCfNdF?mod=bb-budgeting
Tuesday, June 23, 2009
Monday, June 22, 2009
What to do with your 401(k) when you leave your job
I'm willling to bet that the LAST thing on your mind when you leave a company ( nowadays bc of a lay off) is what to do with your 401(k) plan. Here are your options...
1) Rollover to a Traditional IRA- your investment options are now LIMITLESS inside your IRA, well almost, you can't buy gold bullion BUT you can buy a GOLD ETF, along with individual stocks, thousands of mutual funds, and of course CD's and money markets. The point is you have more flexibility and choices to build the optimal portfolio- if you are a do it yourself type investor, try Charles Schwab or Scottrade, if you want professional investment advice on how to build and manage a portfolio, try something like Ameriprise
2) Leave it where it is- if you leave it as is, there is a good chance you'll lose track of it in that since you are no longer working with the company, you won't be as up to date on fund changes or have access to the 401k administrator coming into your office. Your investment options are not limitless and you can only invest in the 10-15 funds available within the 401k.
3) Convert to a Roth IRA- if you are under the $100,000 income limitation, you rollover your 401k directly to a Roth IRA.
Ex:
Jenn, whose AGI ( adjusted gross income) is $65,000 for 2009, leaves ABC Corp. with $25,000 in her 401(k) plan. Jenn decides to convert her 401k to a Roth IRA- the $25,000 she adds on to her income for the year, making her income $90,000 and pays a one time income tax (20%) on her $25,000- $20,000 is the net that is deposited in her Roth, which will now grow to be tax free when she withdraws the funds for her retirement.
1) Rollover to a Traditional IRA- your investment options are now LIMITLESS inside your IRA, well almost, you can't buy gold bullion BUT you can buy a GOLD ETF, along with individual stocks, thousands of mutual funds, and of course CD's and money markets. The point is you have more flexibility and choices to build the optimal portfolio- if you are a do it yourself type investor, try Charles Schwab or Scottrade, if you want professional investment advice on how to build and manage a portfolio, try something like Ameriprise
2) Leave it where it is- if you leave it as is, there is a good chance you'll lose track of it in that since you are no longer working with the company, you won't be as up to date on fund changes or have access to the 401k administrator coming into your office. Your investment options are not limitless and you can only invest in the 10-15 funds available within the 401k.
3) Convert to a Roth IRA- if you are under the $100,000 income limitation, you rollover your 401k directly to a Roth IRA.
Ex:
Jenn, whose AGI ( adjusted gross income) is $65,000 for 2009, leaves ABC Corp. with $25,000 in her 401(k) plan. Jenn decides to convert her 401k to a Roth IRA- the $25,000 she adds on to her income for the year, making her income $90,000 and pays a one time income tax (20%) on her $25,000- $20,000 is the net that is deposited in her Roth, which will now grow to be tax free when she withdraws the funds for her retirement.
Sunday, May 31, 2009
Good article
If you would like an easy to read recap of what the heck has happened to our economy over the last year and a half that has shot us into this recession, you need to read this article from Junior Achievement.
CFP
Last week, I got the good news that I passed my CFP ( CERTIFIED FINANCIAL PLANNER) exam. The journey to acheive this took me two years, I began my studies in the beginning of 2007. This certification requires that you pass 6 modules before you can sit for the comprehensive test that ultimately gives you the CFP title. The modules include Principals of Financial Planning, Insurance, Income Tax, Retirement Planning, Investment Planning and Estate. Each module consists of about 10 books of information. Soo with working 50-60 hours a week and everyday life, it can take some time to get through it all.
In the fall of 2008, I discovered the Ken Zahn program which was very helpful at getting me prepared for the final. You can visit his website at www.kenzahn.com. I highly recommend his program if you are looking to get this certification in a decent amount of time.
So, once the CFP board confirms that I am a college grad and have 3 years of work history, I can start using the designation, and I can't be more excited! I'm hoping it will help my practice aquire more high value clients- as most smart investors look for an advisor that is a CFP.
I was also happy to discover that only 26% of CFP's are female, and 3% are in the age range of 20-29! You can read more about the CFP designation at www.cfp.net.
In the fall of 2008, I discovered the Ken Zahn program which was very helpful at getting me prepared for the final. You can visit his website at www.kenzahn.com. I highly recommend his program if you are looking to get this certification in a decent amount of time.
So, once the CFP board confirms that I am a college grad and have 3 years of work history, I can start using the designation, and I can't be more excited! I'm hoping it will help my practice aquire more high value clients- as most smart investors look for an advisor that is a CFP.
I was also happy to discover that only 26% of CFP's are female, and 3% are in the age range of 20-29! You can read more about the CFP designation at www.cfp.net.
Tuesday, May 26, 2009
Uncle Sam, may I refinance or not?
Many Americans bought a house that they now owe more on than it is worth, and are being crushed by payments and can't sell. Obama has come up with some solutions, one of them being The Home Affordable Refinance plan: here is the scoop~
While mortgage rates are now at historic lows, many homeowners with mortgages owned by Fannie Mae or Freddie Mac are unable to refinance their higher-rate mortgages because they have lost equity in their properties due to falling home prices. Under current rules, Fannie Mae and Freddie Mac cannot guarantee a mortgage that exceeds 80 percent of the home's value. The Home Affordable Refinance plan removes this restriction, allowing certain homeowners to refinance their mortgages.
A homeowner qualifies for this refinancing if:
The property is owner-occupied and the existing mortgage is current
The existing mortgage is owned by Fannie Mae or Freddie Mac
The new mortgage balance will not exceed 105 percent of the home’s current value
The mortgage balance must not exceed $729,750 for single-family homes
The plan runs until June 1, 2010.
If you think you qualify, call your lender!
While mortgage rates are now at historic lows, many homeowners with mortgages owned by Fannie Mae or Freddie Mac are unable to refinance their higher-rate mortgages because they have lost equity in their properties due to falling home prices. Under current rules, Fannie Mae and Freddie Mac cannot guarantee a mortgage that exceeds 80 percent of the home's value. The Home Affordable Refinance plan removes this restriction, allowing certain homeowners to refinance their mortgages.
A homeowner qualifies for this refinancing if:
The property is owner-occupied and the existing mortgage is current
The existing mortgage is owned by Fannie Mae or Freddie Mac
The new mortgage balance will not exceed 105 percent of the home’s current value
The mortgage balance must not exceed $729,750 for single-family homes
The plan runs until June 1, 2010.
If you think you qualify, call your lender!
Thursday, April 9, 2009
I'm back
So I haven't blogged in 4 months...what is my excuse? Well I took the CFP last month ( please God I hope I passed) and I'm getting married next week....not to mention I've also been fixing up a rental house that my fiance and I bought for $37k, yes that's right $37k= positive cash flow galore. Oh yeah and trying to keep my clients calm and managing my practice, and it seems like the sky is falling. NO IT's not.
So here I am. AGAIN...here we are again...
I'll start off with something simple. Hmmm....
1) If you have bought a house in 2008 and wait they just extended it to dec 2009, you should check out this link - keep in mind it does have to be paid back.
2) You can still fund your 2008 Roth IRA until April 15th, that is $5,000 or $6,000 if you are over age 50. What are you going to buy in your Roth IRA, do you think they're might be some good buying opportunities?
3)
That's all I got for now, stay tuned.
So here I am. AGAIN...here we are again...
I'll start off with something simple. Hmmm....
1) If you have bought a house in 2008 and wait they just extended it to dec 2009, you should check out this link - keep in mind it does have to be paid back.
2) You can still fund your 2008 Roth IRA until April 15th, that is $5,000 or $6,000 if you are over age 50. What are you going to buy in your Roth IRA, do you think they're might be some good buying opportunities?
3)
That's all I got for now, stay tuned.
Thursday, December 11, 2008
Short Sales
So I had two clients tell me this week that they were thinking about doing a short sale and one tell me he was considering foreclosure.
All of these clients make over $150,000 a year and have the money to pay on their mortgages, even though they are paying two mortgage payments.
They have just figured that their house value has gone down so much that it would take YEARS for it to come back in value and they are better off letting it go.
Seriously?? Is that the mentality now people? You want to just ruin your credit by having it go down 200-400 points ( which by the way a short sale is just as bad for your credit as a foreclosure is ) so that you can pay out the butt through higher interest rates bc no one will want to loan you anymore money.
Also, not to mention, how wrong it is to walk away from an obligation. If perfectly capable people start walking out on their mortgages this economy is going to have some MAJOR problems in our banking system.
What do you think?
All of these clients make over $150,000 a year and have the money to pay on their mortgages, even though they are paying two mortgage payments.
They have just figured that their house value has gone down so much that it would take YEARS for it to come back in value and they are better off letting it go.
Seriously?? Is that the mentality now people? You want to just ruin your credit by having it go down 200-400 points ( which by the way a short sale is just as bad for your credit as a foreclosure is ) so that you can pay out the butt through higher interest rates bc no one will want to loan you anymore money.
Also, not to mention, how wrong it is to walk away from an obligation. If perfectly capable people start walking out on their mortgages this economy is going to have some MAJOR problems in our banking system.
What do you think?
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