What Have You Done To Protect Your Identity?

It's no secret that identity theft has become a major problem in this country. Last year alone, more than 9.9 million Americans fell victim to this devastating crime. And it can be devastating.

Identity theft occurs when someone acquires key pieces of your personal information with the intent to commit fraud. Most commonly, they use this information to open new credit accounts and run up huge debts. However, this is not the only use of stolen personal information. It can also be used by someone looking to immigrate illegally, carry out terrorist activities, assume a new identity, or even to blackmail you or someone in your sphere of relationships.

How does a thief gain access to your identity?

While most people believe their greatest exposure to theft is through the Internet, experts say your mailbox (where thieves can obtain account statements, new checks and credit offers) and your garbage are the easiest ways criminals can access your personal information. The theft of your purse or wallet is also common. And then there're those situations in which you willingly give out information over the phone (to someone who calls with a great offer) or over the Internet in response to a fraudulent email (commonly referred to as "phishing").

Once a thief has your information, he generally has weeks (even months) before you become aware that there's a problem. In fact, it may not become evident until you suddenly start receiving bills for revolving accounts you never set up, in towns you never visited, for items you never purchased. By this time, your credit report has become peppered with new accounts that you had no idea existed.

Once that happens, it's a nightmare trying to undo the damage.

However, there are ways to be proactive and protect yourself. For instance, most credit card companies offer services that will monitor your account for unusual activity, notify you immediately if there's a problem, and protect you from the fraudulent charges. The three leading credit reporting agencies in the United States: Equifax, TransUnion, and Experian, each offer monitoring services as well (although that's all they do ... monitor and inform).

There are other ways you can help minimize your potential risk as well:

Never share your banking information, particularly your personal password, with anyone unless you initiated the contact or you personally know the person you're dealing with. Legitimate banks and other businesses will not call or email you requesting your personal account information. When you receive a request for your account information (whether it's a bank account, a credit card account, or even a PayPal or eBay account), red flags should go up.

Always guard your PIN (personal identification number) at ATMs.

Sadly, you shouldn't leave outgoing mail in your home mailbox for pickup. Either take the mail to the post office or drop it off at a secure postal mailbox.

Never carry your Social Security card in your wallet. If you have to carry credit cards in your purse or wallet, as most of us do, keep them to a minimum. Preferably a single card.

Never use your credit card on the Internet unless you're initiating the purchase and it's done through a secure connection. You can quickly identify a secure connection by checking for "https" in the URL or the lock icon in the corner of the screen.

Keep a list of your credit card and bank account numbers in a secure location, such as a locked safe or a safety deposit box.

Always shred personal documents. This includes all those credit card offers you receive in the mail, old account statements, billing statements, credit card statements, etc. And use a double-cut shredder to be on the safe side. You can pick one up at nearly any office supply store for under $100.00.

Keep track of your bank and credit card statements. Make sure they arrive every month and monitor them for any unusual activity. If a bill doesn't show up, it can be an indication that someone has set up a change of address without your knowledge.

Order a credit report from all three agencies (Equifax, TransUnion, and Experian) twice per year, review them, and compare them carefully. If you discover any fraudulent entries immediately contact each agency, explain the situation and follow the proper procedures to correct the problem.

Identity theft has risen to enormous levels throughout the United States, but that doesn't mean it has to happen to you. Take a few diligent precautions and your chances of becoming a victim decrease significantly.

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What You Can Do To Simplify Your Personal Finances

Keeping control of your personal finances is important in making sure that you have enough money to live on in years to come. Many people find it difficult to enjoy their lives because they are saddled by huge debts. Regardless of how much you make, it is possible to get control over your finances. Read this article for some helpful suggestions on how you can get started.



If you have a lot of debt, one of the first things you should do is to consolidate your debt into one or two credit cards. There are services that can help you do that. Holding too many credit cards makes it difficult for you to keep track of what you have charged. When you consolidate your debt and close most of your charge accounts, you can monitor your liabilities more easily. When you consolidate your debt, you also have a chance to lower the interest rate, which will help in paying off the debt.



Once you have consolidated your debts, pay any future bills with just one credit card. Avoid opening any store or merchant charge cards which carry a very high interest rate. There is no need for those. Stores often run promotions to entice people to open up a store account, but you should avoid those at all costs. If you want better control over what your charge, stick to one card.



There are online tools that help you develop and manage your personal finance plan. Publishers of magazines that deal with personal finances often provide free tools that you can use. Your bank probably has tools available for its customers on its website. If you have opened up a retirement account, your service provider will have online tools as well. Do some research, and find the program that you are comfortable in using. You will find that managing your finances is not that difficult when you can use a program designed for it.



Any financial management tool that you use will usually ask for basic information from you, such as your monthly expenses and income, the amount of your savings, outstanding debt balances, your assets, and personal information like the size of your household and your age. This information is used to develop a realistic budget scenario that is based on your real spending patterns. If you anticipate a large expense coming up, like a major home repair, you will need to provide an estimate and factor that in. The more information you can input, the more accurate this budget will be.



You should do your best to save as much money as you can after you pay your fixed expenses. This may mean reducing discretionary expenses like entertainment costs, vacations, and eating at restaurants. Starting a good savings habit will be very helpful in making sure that you always have a backup plan. Avoid dipping into your savings for non-urgent expenses. If you stick to a good savings plan, you will find that your reserves will quickly grow into a sizable sum.



When you have a budget, you can easily see what you can and cannot afford. Follow the advice in this article to start creating a sound, personal finance plan. When you have your finances under control, you will have more peace of mind.

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Should You Consider A Self Directed IRA?

There are plenty of people who do not take advantage of an IRA, but could. An IRA is a tool used for retirement investing and could help you begin building a solid savings plan. An IRA could mean two things, it could be an Individual Retirement Account or it could also be an Individual Retirement Annuity. It's great if you have the opportunity to take advantage of an IRA because it can help you retire, but should you have a self-directed system?

1. IRA Types

There are numerous different types of IRA's you could get. There is a traditional IRA, where this type of retirement is set by taxpayers individually and are allowed to put in one hundred percent of their compensation.

A simple IRA is where the plans for retirement are set up by the employers themselves. Any withdrawal made eventually is then taxed as a form of income, this include capital gains. Of course, since after retirement, ones income decreases, the tax put on a simple IRA is considerably at a lesser rate.

There is also a self-directed IRA. This type of IRA is a retirement account that is put up with the help of a broker and not a bank or a mutual fund. In this type of retirement, one is able to buy as well as sell stocks individually. This therefore makes it a lot easier for anyone to make decisions related to investments conveniently on ones own instead of a mutual fund manager.

So what if you have about twenty thousand dollars in your IRA account, and the money are all invested currently in a type of mutual fund, and you want to manage it on your own and so you think of converting it to a self-directed IRA, just how do you do it?

Some people usually contact their account executives and notify them of their need to cash the account and send the cashed out check to a brokerage and establish a self-directed IRA. Simple, right? Fortunately it is that simple, with a few little details that need to be modified.

2. Fund Transfers

Transferring funds is indeed as easy as a-b-c. All you have to do is to call that broker and tell him that you want to convert your current IRA to a self-directed one. The broker will then have to send to you two different forms. One form is an IRA basic application. The other form is an instruction of sorts relating to your current IRA mutual fund. This basically allows the agency you are dealing with in liquidating your current IRA and then transfer its proceeds to the IRA that is new.

After doing these activities, all you have to do is to simply return the forms once completed and just sit back, relax and wait. In as short as 45 days to as little as 30 days, the time actually depends much on how slow or fast the custodian of the IRA is, the money will then be in your self-directed IRA.

After checking if the money is indeed there, you now have the freedom to simply trade at your own choice and your own will. Via through direct transfer, there are no taxes to worry about as well as IRS hassles.

3. The Self Directed IRA

It is that superbly simple. See how you need not have to go anywhere to make those transfers. All you had to do was pick up the phone and talk to people. The best thing out of this very simple process was that your integrity and dignity is still intact. Observe how there was no need for unnecessary drama or hysterics of having to make up a story with the manager of your mutual fund and think of excuses on why your dear old Uncle Isidore badly need the money for surgery, and the like.

Another good thing to think about when having self-directed IRAs is that, besides the usual bonds, stocks or mutual funds that could be stored in it, stocking up on real estate is also a good investment. IRAs could eventually help you in broadening your own portfolio.

Basically, a self-directed IRA allows you to buy good real estate. It would be best if you avail the services of an independent administrator who could serve as your very own custodian or trustee. All in all, it really depends on how much you are willing to know and learn and do with your self-directed IRA that spells the difference. Ultimately, you know what is best for you, so go with what your heart, mind reveals. Also seeking the assistance of a knowledgeable real estate investment professional is always a smart option.

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Redundancy Insurance - Another safety option for Wealth Preservation

Redundancy insurance is one of those best kept options only wealthy use. In this day and age, redundancy cover can give you an income to make sure that you can continue servicing your loan and mortgage repayments along with covering your essential outgoings and expenses, but it is imperative that you do understand the terms and conditions in a policy before buying.

Redundancy cover can be taken out as mortgage payment protection, income protection and loan payment protection and it can give great peace of mind. All policies will start to pay you after you have been out of work for a pre-determined time. This is generally between 31 days and 90 days after the event and would then continue to give you a tax free income for up to 12-24 months, depending on the policy terms and conditions.

It is imperative that you read the small print of any policy that you are taking out as this is where you will find the exclusions. Exclusions are the reasons which can stop you from making a claim and which mean that you would be ineligible for the product.

There are exclusions which are common to the majority of redundancy insurance policies and these include if you are suffering from a pre-existing medical condition, are only in a part time position, are of retirement age or if you are self-employed. Check each products exclusions as they can vary from provider to provider and it is important that you ensure you wouldn’t be excluded from making a claim.

Mortgage payment protection an be taken out to safeguard your monthly mortgage repayments each month and give you peace of mind and security of an income with which you can use to continue on meeting your mortgage repayments and so not get into arrears. Getting into arrears could mean you lose your home to repossession but redundancy insurance can give you an income.

Loan payment protection is taken out as redundancy insurance if you have loan or credit card repayments to make each month and can stop you from falling behind on your repayments by giving you enough money to service your loan repayments each month.

If you want to safeguard your essential outgoings in general then income protection will give you a replacement amount up to a certain sum each month which you can then use to carry on meeting your requirements and live the lifestyle you are accustomed to without having to worry.

All policies can be bought alongside the loan or mortgage at the time of taking out the borrowing but this is one of the dearest ways of taking out what is invaluable insurance. A far better way to give peace of mind and security is to go to a specialist provider for your quote for the cover. Redundancy insurance can be taken out just to cover unemployment by such as redundancy but it can also be taken out to insure against coming out of work down to accident, sickness and unemployment together.

This is an amazing way to maintain your living situation in times where income has been threatened.

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Budget your way to Success

Budgeting sounds like a boring strategy used by our parents. For a long time, budgeting was considered the way to manage money because it helped people keep track of where their finances were going. But lots of people are choosing not to budget because it seems so needlessly complicated with little or not benefit. But there is a benefit to budgeting; the real trick is finding a budgeting method that works for you. Here is an excellent strategy to help you manage the money in your personal portfolio.

The first thing you need to do is create a budget. Creating a budget does not have to be restrictive, but it should be a guideline to help you manage your income and your expenses each month. The first thing you want to do is list all your expenses on a month-to-month basis. The next thing you want to do it list all of your income on a month-to-month basis. Then compare. Many people who have trouble saving find that their expenses are very close to their income. So what can you do?

One option you have is to reduce your expenses. This might mean going out with friends a little less or giving up on some luxury that you typically enjoy. Another option you have is to increase your income. Unfortunately, for many people, this is easier said than done.

One way that you can reduce your expenses and increase your income is by using a debt consolidation loan. By consolidating many outstanding debts that are due throughout the month into a single loan with a single monthly payment you will be accomplishing several things.

First, you will be reducing your monthly payment because you will be securing a larger loan and is spread out over a longer period of time. Second, you'll be reducing the amount of interest you pay because you will be consolidating your many debts into one debt from one provider. Reducing your interest not only helps to reduce your expenses but also increases your income!

And if you are able to find some assets that can help you get a secured loan, you'll be able to spread out your payment over a longer period of time and you will likely qualify for a lower interest rate because you have some security to offer the lending institution to back up the loan.

Now that you are actively pursuing a budget, you will need to find a way to continue to reduce your expenses over time. A secured loan will help you do that. But don't forget that there are many ways you can also increase your income.

Congratulations! You are assembling a budget and getting control of your finances and at the same time you are reducing your expenses and increasing your income.

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Be Cautious When Using Your Nest Egg as an ATM

About five years ago I moved from the ranks of being a renter to that of being a homeowner.  Now, not a week goes by that I don’t receive some type of offer through the mail encouraging me to refinance my mortgage, open a home equity line of credit (HELOC), or apply for a home equity loan. (Yes, those deals still exist!)

Does this look familiar? "Payoff High Interest Credit Card Debt!" " Lower Your Monthly Payments!" "Buy A New Car!" " Refinance And Get Money Now!" scream the slogans splashed across the envelopes.

The promotional letters inside point out how easy it will be for me to “get the extra cash you need NOW!”  They promise “no out of pocket costs” with a newly refinanced 30-year loan.

Could I use some extra cash NOW?  You bet I could!  Who needs high interest credit card debt? Not me, no way, no how! Buy a new car? Hmmm, I like that new Lexus coupe's I’ve seen on tv, maybe in a sleek titanium color with black trim?

The truth of the matter is, for thousands of U.S. households “Home Sweet Home” is rapidly being replaced with a new sentiment - “Home Sweet ATM.”  According to the latest Federal Reserve study, 45% of homeowners who have refinanced their mortgages pulled cash out and 74% wound up lengthening their mortgage by about six years.  Only 17% shortened their loan term opting to downsize to a 15-year mortgage.

In a period of six years, Americans have more than doubled the amount owed on home equity loans and lines of credit, nearing $766.2 billion, according to the Federal Reserve.

If you’re in your 40’s and you refinance on a new 30-yr. loan, you’ll be in your 70’s by the time your loan ends.  Even if you shave off a few years by paying down your principle, you’re still risking not owning your home “free and clear” as you approach retirement age.

What happened to the era when your home was considered your nest egg to be used only for life-threatening or life-changing events like paying for a child’s wedding or for a medical emergency?  And worst of all, many new homeowners are using their home’s equity as another source for financing new debts.

Think twice before using home equity to pay off credit card balances.  If you’re already overspending on your credit cards now, what makes you think anything will be different after you pay them off with a loan or line of credit?  Many people just wind up deeper in debt or facing bankruptcy because they couldn’t resist charging their cards up again.

Keep this in mind before tapping your home’s equity - Your loan or HELOC is secured by your home.  Default on the loan and you could lose your house, even if you declare bankruptcy!

The best use for home equity is to make improvements that add value to your home.  Remodeling a kitchen or bathroom, adding an extra room or creating a master suite are just a few of the “hot” improvements that can really pay off when it comes time for you to sell.

If your home truly is your nest egg, be smart about how use its equity.  Make sure that it fits in with your overall financial plan and goals. Otherwise, you could be left without a nest and just the egg!

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Being in Love is Hard Enough, than there is the MONEY!

It's widely known hat one of the main reasons that most couples fight is because of money. Perhaps not so surprisingly, it is also one of the leading causes of divorce.  This is a good example of why it’s important to discuss finances and have all aspects relating to money out in the open in order to have a healthy and happy relationship very early on.

If you are preparing to start a life with your new husband or wife, you may also be considering the purchase of a home.  As you may know, both your credit history and that of your spouse will impact a potential lender’s decision as to whether or not to approve your loan request.  What you may not know is that, due to the fact that some landlords now check their tenant’s credit, your credit history can also affect your ability to rent a home if that’s the route that you choose to pursue.  The best way to prepare for either renting or purchasing a home is to sit down and discuss income, debts and past payment history with one another.  In some instances, it may be advisable to share your credit reports with one another so that there are no surprises down the road.  This will not only give you a good idea as to how lenders will view your creditworthiness, but it is also the perfect time to identify and correct any inaccuracies in your credit reports.

Combining finances is one topic that many couples struggle with.  Do we keep our finances separate or do we combine them into one joint checking account?  If you are undecided, it’s perfectly fine to maintain the finances in a ‘his, hers and theirs’ format.  If you and your spouse-to-be prefer to keep your finances separate for now, simply open a joint checking account to pay household bills and other expenses.

If you want to achieve the perfect balance in both your relationship and your checkbook, make a pact to be open and honest when it comes to communicating about money.  Although this may be one of the touchiest subjects for many couples, it’s much better to discuss the issues and deal with them immediately.  In the end, both you and your spouse will be much happier and the relationship will be much healthier, wealthier, happier and wiser!

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