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How to pay during overseas travel?

Sat, 04 Feb 2012 19:00:17 +0000

I take several overseas trips each year and have never bothered to really figure out how to pay for things in countries where US Dollar is not accepted everywhere.? You will invariably incur additional costs in exchanging US Dollar into local currency.? during a recent vacation, I decided to read the fine print ahead of [...]

How to pay during overseas travel?

Consider other funds before using 401(k) for house down payment

Sat, 04 Feb 2012 17:00:21 +0000

Q: Can I tap into a retirement account to help with my down payment?

A: Ideally, the money you use for a down payment should be savings you’ve specifically set aside for a home. but if a lender demands more up-front cash than you expected, an Individual Retirement Account or 401(k) may be the only place you can turn for another $10,000, $20,000 or more.

If that’s the case, tap a Roth IRA or Roth 401(k) plan first.

Since contributions to Roth plans are fully taxed before they’re made, you can withdraw however much you’ve put into those accounts at any time without incurring any penalties or additional taxes.

If you’ve held a Roth IRA for at least five years, you can withdraw an additional $10,000 in earnings without paying any penalties or taxes to buy or renovate a first home. The next place you should turn is a traditional IRA, which will allow you to withdraw up to $10,000 for the purchase of a first home without penalty.

If you and your spouse each have a traditional IRA, then you can take $10,000 or a total of $20,000 from your two accounts penalty-free. but since contributions to traditional retirement accounts such as this are tax-deductible, you’ll have to pay income tax on withdrawals that exceed those limits.

Any withdrawals above the limits are subject to income tax and a 10 percent penalty until you reach 59½ years old.

Q: Can I take money from my 401(k) plan?

A: Your employer’s traditional 401(k) plan is the last place you should turn for a down payment.

It has no special provisions for down payments, and any “hardship withdrawals” are fully taxed and incur a 10 percent penalty until you turn 59½.

The better option is to take a loan out against your 401(k) account. you can usually borrow up to $50,000 or half the value of the account, whichever is less, and take up to five years to pay it back.

The interest you’re charged, which is generally a couple of percentage points above the prime rate, goes into your retirement account and the monthly payments are deducted from your paycheck. You’re talking about a new monthly expense that will reduce the amount you can afford to borrow for a home.

Bomapo asked: I have to write a essay and I am clueless about this topic. I’m supposed to tell why its important to invest money for retirement and why its important to diversify invesments among different asset classes. can anyone clear things up for me?College Student Credit Card

Why is it important to invest money to grow over time for retirement?

Fast Food & Food Stamps

Thu, 02 Feb 2012 23:00:15 +0000

I know this scheme has been in the works in certain areas for a while, but that doesn’t change the fact that every new article I read about it makes me want to throw heavy office equipment through a window:

WTVM.com: Fast Food Giant Lobbies for Food Stamps

I love issues like this, because it’s so easy to see exactly where they lead. if you come out against it with the argument of “Folks on public nutritional assistance shouldn’t be using the funds to buy crappy fast food and other items of convenience,” then you’re an out-of-whack, heartless, right-wing conservative nutso. I unflinchingly reside in this camp (as readers have undoubtedly noticed).

To clarify, my views register something like this:

Should public food-assistance programs be widely available?

Yes. Which they are.

Should public food-assistance programs be “unrestricted;” i.e., they allow access to most all goods/services that private funds could otherwise purchase?

No.

Should public food-assistance programs be “painless;” i.e., the programs make extra efforts to reduce the stigma and “social obstacles” of being a user of the assistance?

Hell no. in fact, I’m all thumbs-up for bright orange EBT cards.

However, I’ll also take a step the other direction — a step at which many pro-business righties gasp — and say that for companies like Yum! Brands to take up such a blatant “Hey look! There’s a pile of taxpayer money over there! Let’s go get some!” lobbying effort is downright pathetic, and worthy of scorn. Most weeks, I’m good for at least one trip to Taco Bell. And I do loves me some Pizza Hut pan pizza from time to time. but that can stop.

We Say “No” To More Government Programs (That Don’t Benefit Us)

Such corporate behavior is pretty typical, though, I’ve found. Expanded government programs are anathema to private business interests … until they figure out that they can get their hands in the pot, too. at that point, miraculously, it’s all good.

“Everyone, regardless of income level or economic station, should have access to our quality offerings,” they’ll exclaim as camera-flashes pop. “we will take special care to ensure that only those who meet the strict qualifications can utilize the program in our many locations.”

Sure you will. And all the while, you’ll be continually and quietly lobbying for increased access by SNAP participants to your “quality offerings.” Trim a big restriction here; remove a little restriction there. because, hey, there’s more profits to be had … and isn’t it, you know, unfair to limit this wonderful program to JUST the homeless, elderly, and disabled, when you really think about it?

One thing is certain: The hole will just get deeper and deeper, because the game is such that EVERYONE who is ANYONE will step up to the trough.

Fast Food & Food Stamps

AXA Advisors Awards Top National Honor to Florida Businesswoman

Thu, 02 Feb 2012 13:00:18 +0000

AXA Advisors Awards top National Honor to Florida Businesswoman

Peggy Hollander Receives Highest Honor for AXA Advisors’ Financial
Professionals

becomes first Woman to Receive this Honor

NEW YORK, Dec. 20 Peggy Hollander, founder and Managing
Director of The Succession Group, Inc., Miami, Fla., and a financial
professional for AXA Advisors, LLC, has earned AXA Advisors’ 2005 National
Honor Associate Award, it was announced today by Christopher M. “Kip” Condron,
President and CEO of AXA Financial, Inc., one of the premier U.S.
organizations in financial protection and wealth management.
The award, established nearly seven decades ago, is the highest honor
bestowed upon an AXA Advisors Financial Professional, and Ms. Hollander has
become the first woman to receive the award since it was first presented in
1939.
Mr. Condron said, “This is a milestone event in the history of this
company. Thousands of men and women have been considered annually for this
award over the past 66 years, and I am especially pleased to have the honor of
recognizing Peggy Hollander as the first woman ever to receive this award for
her outstanding professional and personal achievements.”
AXA Advisors’ National Honor Associate award is granted to one financial
professional each year who represents the “total financial professional” –
the person who most exemplifies esteemed qualities and attributes of community
service, loyalty, leadership and respect. Ms. Hollander was chosen for this
prestigious honor by a committee of peers from among thousands of candidates.
as Managing Director of The Succession Group, Ms. Hollander guides a team
of professionals in creating innovative, customized, insurance-related wealth-
transfer and multi-generational business succession plans, delivered with the
highest caliber of service. she serves clients in Florida, the New York/New
Jersey/Connecticut region, Illinois, California* and other states.

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She has more than 20 years experience in wealth transfer, succession
planning and related financial services, and more than 10 years of experience
as a leading producer for AXA Advisors, LLC, in its Paramount planning Group,
the company’s top producers in the nation since inception in 1999.
Bob Jones, Executive Vice President & Head of Retail Distribution for AXA
Advisors, said “Peggy Hollander is a model for professionalism in our
business, and she is a recognized leader in civic and community endeavors.”
Ms. Hollander regularly speaks at AXA Advisors conferences and meetings,
where she addresses fellow AXA Advisors producers, often exploring business
development and charitable giving topics. in addition, she is often a featured
speaker before bar associations, business groups and CPA organizations.
Ms. Hollander is a member of the International Women’s Forum, a worldwide
organization of women who hold preeminent positions in their respective
fields. for five years, she chaired the Founders Society of the University of
Miami Sylvester Comprehensive Cancer Center, South Florida’s leading center
for cancer treatment and research. she presently serves on UM/Sylvester’s
Board of Governors and chairs the Principal Gifts and Planned Giving
Initiative.
she is a member of the United way of America’s Planned Giving Committee
and the United way of Miami-Dade Alexis de Tocqueville Society. in addition,
Ms. Hollander is an officer and member of the Executive Committee of the
University of Miami Citizens Board and serves on the Board of Directors and
the Finance and Investment Committees of the Florida Grand Opera and the Miami
Jewish Home and Hospital for the Aged.

About The Succession Group, Inc.
The Succession Group, Inc. is a “boutique” South Florida-headquartered
succession planning firm that provides wealth-transfer and business succession
planning strategies for an exclusive roster of high net-worth individuals,
families, and affluent business owners. Financial professionals from the
Succession Group, Inc. offer securities through AXA Advisors, LLC. The
Succession Group, Inc. is not owned or operated by AXA Advisors, LLC.

About AXA Advisors, LLC
AXA Advisors, LLC is a leading provider of financial services for
consumers and businesses, working with clients to help them define and meet
their financial goals. AXA Advisors, LLC is a subsidiary of AXA Financial,
Inc., one of the premier U.S. organizations in financial protection and wealth
management through its strong brands: AXA/Equitable Life Insurance Company,
AXA Advisors, LLC, Alliance Capital Management, L.P., Sanford C. Bernstein &
Co., LLC, AXA Distributors, LLC, and the MONY family of companies, including
MONY Life Insurance Company and U.S. Financial Life Insurance Company. AXA
Financial had approximately $575 billion in assets under management as of June
30, 2005. AXA Financial is a member of the global AXA Group, which was listed
as the 13th largest company on Fortune’s Global 500 list in 2004.
GE-34155(11/05). * CA Lic#: 0762969

SOURCE AXA Advisors, LLC
Web Site: http://www.axaonline.com

AXA Advisors Awards Top National Honor to Florida Businesswoman

required minimum distributions calculating_and_taking

Thu, 02 Feb 2012 03:00:15 +0000

When you reach 70 1/2, IRS rules say you have to start required minimum distributions from your traditional IRAs or your 401(k)s. The tax bite for not obeying the rules can be major.

required minimum distributions calculating_and_taking

NYSE Euronext, Deutsche Boerse in merger-end talks

Wed, 01 Feb 2012 13:00:13 +0000

PARIS (MarketWatch) — Stock market operators NYSE Euronext (NYX) and Deutsche Boerse AG (DB1.XE) started discussions Wednesday to terminate their planned $17 billion merger, which has been blocked by the European Union antitrust authority.

NYSE Euronext, Deutsche Boerse in merger-end talks

No time like the present

Wed, 01 Feb 2012 11:00:18 +0000

Did you blow the budget on those too-good-to-pass-up holiday sales? It’s January, and the credit card bills are due.

While transferring balances from credit card to credit card may prolong the pain, the piper is asking to be paid — now.

Five management tips

1. look for ways of saving money on expenses and eliminating non-essential expenses (entertainment, cable, cigarettes, shopping).

2. Deposit part of your income into a savings account to meet emergency expenses.

3. Make your spending habits consistent. Large expenses should be pro-rated over a period of time.

4. Make the budget a family project. Everyone must be involved in order for it to work.

5. Spending limits must be realistic.

You’re not the only one with a shopping hangover. Holiday shoppers chose to use credit cards roughly 7 percent more, according to First Data, which tracks consumer payment data.

The bad news is the average annual percentage rate, or APR, is 14.95 percent. The good news for consumers is that this is the sixth straight week without an increase in the national average since the average hit a record high of 15.22 percent in mid-December.

If you are considering transferring your balance to another credit card with a lower interest rate, check out www.creditcards.com/balance-transfer. You will be able to look at list balance transfer credit cards designed to help people consolidate their credit card debt onto one card, thus saving money on interest charges.

Each card offered has a detailed explanation of rates, fees, rewards, limitations and other important information, making it easy to compare cards.

What to do

Consumers can do a few things to eke some extra money from their usual spending to help pay off the bills, said Carole Bachman, a certified financial counselor in the Stroudsburg office of Credit Counseling Services of Northeast Pennsylvania.

“Stop buying lunch out every day and pack lunch, don’t stop off for that expensive latte, and think before you spend,” she said.

Sean Adams, a certified public accountant who owns new Beginnings Financial Consultant in Stroudsburg, said there definitely are things you can do to find money that you are wasting each day. “For instance, think about the leftover food you throw out every week,” he said.

That’s like throwing money in the garbage can. You need to cook less food or buy less food, because it is being wasted. Adams suggested that people put the money saved by buying fewer groceries into paying a bill.

Consumers can start by paying off the card with the highest interest rate first, which will help reduce the bills faster.

And how about cashing in all those reward points and converting them into a statement credit?

Then, take back those unwanted gifts. You may need a store receipt if you want the cash.

What you should have done

“The ideal situation would be to have opened a Christmas club account or a savings account last year to save up for the holidays,” said Bachman, who has been a counselor for more than 14 years.

She counsels a fair number of people who don’t budget for the holidays and then get in a fix when it is time to pay the bills.

If you didn’t do what you should have last year, planning a budget for not only Christmas but all spending will make 2012 a better year, and January 2013 even more so.

Realistic spending

“I tell them they need to be realistic about holiday spending. if they exchange gifts with family members and one family has 10 children, I suggest instead of buying everyone in the family a gift, that they give one family gift,” Bachman said.

You can always give non-money gifts, such as volunteering to clean their house one time or make a meal for them once a month, she said. “I think people appreciate the gift of your time, especially if they work,” Bachman said.

Adams agreed, “Before you buy anything, you need to establish a budget for holiday spending, and you should have contributed to it throughout the year, not just before the holidays.”

Another important thing to keep in mind when budgeting is to make sure you include all your extra expenses, not only the cost of gifts.

“I tell them if they are traveling to relatives, they need to include the cost to travel, the cost of the extra food they prepare, a hotel if they need one and to allow extra for any other holiday expense that might come up, like buying a tree or going out to eat,” she said.

In addition, if mailing any gifts out of town, the cost of packaging and mailing needs to be included in the holiday budget, Bachman said.

If possible, instead of mailing gifts, she suggested getting the person a gift card — something that is much cheaper to mail.

If you must buy something, purchase the gift online and ship directly to the recipient.

If you have children, you also need to talk to them ahead of time about what they want for Christmas, Adams said.

“That way, if what they want is more than you will be able to spend, you can tell them they will need to save some money to put toward what you are able to spend,” he said.

It takes some work to get on a budget and stay on it, but Bachman said the sooner you do, the sooner your finances — and life — will be in order.

Retirement Savings: We continue to read the grim statistics about the American savings rate. So you may be very surprised to hear that at least one financial planner says we’ll need less money than we thought during retirement.

Living to 100: For a split second you probably thought you have enough retirement savings. well, and this is good news, you may come up short. Scott Burns of MSN Money explains how a longer life span requires thoughtful planning.

IRA Investments: Conventional wisdom says that it’s better to hold bonds in tax-protected vehicles like IRAs because income from bonds is taxed at a higher rate than capital gains from stocks. however, what happens if the performance of your stock portfolio greatly exceeds that of your bond portfolio? Morningstar.com’s Christopher Davis explains the nuances of IRA investing including the answer to the bond vs. stock question.

Retirement Age: Can’t wait to retire and stop working? did you know that delaying retirement by one year could make a big difference in how much annual income you’ll take home in the future? Robert Powell of Marketwatch provides the details of what delaying retirement might mean to you.

What’s New on the Retirement Planning Web: March 21, 2006

New Red Sox manager Bobby Valentine talks baseball, but father-in-law Branca …

Wed, 01 Feb 2012 03:00:15 +0000

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