Tuesday, April 27, 2010

“Personal Finance Daily - Marketwatch” plus 3 more

“Personal Finance Daily - Marketwatch” plus 3 more

Personal Finance Daily - Marketwatch

Posted: 27 Apr 2010 09:45 AM PDT

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By MarketWatch

Don't miss these top stories:

One of the hardest things to come to grips with in difficult economic times is how to allocate scarce savings dollars, assuming you even have any dollars left over to save after all the monthly bills are paid. It's an especially thorny problem for families juggling retirement and college savings with rainy-day and home down-payment set asides.

And in this particular downtown you can add in another wrinkle -- school funds for midcareer adults. Because job losses have been so severe, and long-term unemployment the norm for so many, the pressure is on a lot of parents to put themselves through some sort of schooling again in order to give themselves an edge in today's job market.

While financial-planning experts generally agree it is best to focus on you first -- whether education or retirement -- it is often a guilt-laden experience for parents to put their needs ahead of their kids' -- especially when considering raiding the college fund that many may have started building at the time of the birth of their first child.

The saving grace: The kids have far more options, and a far longer time horizon, than their parents in these matters and may even benefit from having to fend a little more for themselves when it comes to paying for their education.

-- Steve Kerch, assistant managing editor

FAMILY FINANCE

Who gets dibs on the college fund, you or your kids?

As jobs remain scarce, parents may want to go back to school to bolster their résumé or try a new career. Many parents also want to save for their kids' education. The question is: Which investment makes more sense for families looking to spend each dollar as well as possible during these tough times?
See Diary of a Recession Baby.

Top money lessons for the early stages of life

There's a school of thought, made popular by Whitney Houston, that children are our future, that if you teach them well they'll lead the way -- fiscally that is.
See Kids & Money.

Saving up for baby

Having a baby changes everything, including your finances. And for parents-to-be in their 20s, the financial strain can be even more of a challenge.
See Family Finance.

ENTERTAINMENT & LEISURE

Shaken, not stirred

What's your favorite martini flavor? A new survey says the classic martini is getting some a-peel-ing competition. Join John Wordock and Ann Cates for money news you need to know.
Listen to Radio Report.

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Attention candidates for D.C. Mayor, personal finance ... - Examiner

Posted: 27 Apr 2010 10:20 AM PDT

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Carnegie Library in downtown Washington, D.C.

From the granite steps of the venerable Historical Society of Washington, the "Old Central Library," which opened in 1903 to all residents, including African Americans,   Chairman Vincent Gray  announced his intention to unseat Mayor Adrian Fenty. One question that has to be on the minds of residents is whether or not replacing our current mayor will be an improvement. When it comes to education, his campaign promises sound a tad familiar to the incumbent's pledges of reform a few years ago.

 

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Your Personal Finance Advisor: Discounts in the Digital ... - The Epoch Times

Posted: 27 Apr 2010 05:56 AM PDT

These days, most of us are looking for ways to save more money on the things we buy. Coupons are an obvious place to hunt for deals—but if you're used to mobile Internet, On Demand television and high speed everything—the idea of clipping coupons at the kitchen table might strike you as a bit old-fashioned.

Discounts Go Digital: Fortunately, the demand for discounts in the digital age has spurred an explosion of new websites and applications designed to help you save at the checkout line. Here are some new ways to save on goods and services so you can keep more money invested in achieving your long-term financial goals.

Shop Online: Before you swing by your favorite store, take a minute to surf through its website. Not only can you find discounts on online purchases, many sites offer printable coupons for savings at brick-and-mortar stores. Certain retailers also alert customers of promotions through e-mail. Check the fine print before you subscribe to make sure your e-mail address won't be shared with other businesses. If you're not careful, you could find your inbox jammed with unsolicited junk e-mail.

Join the Club: Grocers: pharmacies, and airlines are known for their loyalty rewards programs. But now restaurants, entertainment venues, hotels, bookstores, and online vendors are getting into the game. Check their websites to see if your preferred merchants offer discount programs that reward your repeat business. You might also want to visit sites like groupon.com, which amass the purchasing power of a group of individuals to negotiate discounts at local businesses.

Look for New Technology: Sunday paper advertisements are facing increasingly fierce competition from mobile technology. For example, some Smartphone applications enable consumers to download coupon bar codes, which can be scanned at store registers. Discounts are applied to the total bill, just as with paper coupons. Certain retailers also send out "sale alert" text messages to customers who sign up for the service. As with e-mail lists, be sure you know how your contact information will be used and shared.

Things to keep in mind:

Check the Base Price: Discounts can create a false illusion of saving. You may be able to save more by buying items at full price at a discount store than with a coupon at a pricier retailer. Likewise, generic or store-brand products may be cheaper than brand-name products purchased with a coupon. Comparison shopping is the best way to determine an item's real value.

Recognize the Loss Leader Strategy: Retailers frequently offer deep discounts on select items to get shoppers in the door, hoping to recoup lost profits with higher markups on nonsale items. Again, it helps to be familiar with price norms so you can tell if you're overpaying for other items on your shopping list.

Be a Smart Shopper, Not a Hoarder: Watch out—the thrill of the deal can cloud your judgment. Avoid the temptation to stock up on items just because you found a discount. Instead, put the money you save toward funding your long-term financial objectives.


This column is for informational purposes only. The information may not be suitable for every situation and should not be relied on without the advice of your tax, legal and/or financial advisors. Neither Ameriprise Financial nor its financial advisors provide tax or legal advice. Consult with qualified tax and legal advisors about your tax and legal situation. This column was prepared by Ameriprise Financial.

Financial planning services and investments offered through Ameriprise Financial Services, Inc., Member FINRA & SIPC.

Investment products, including shares of mutual funds, are not federally or FDIC-insured, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.

© 2009 Ameriprise Financial, Inc. All rights reserved.

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Savings Rate Hopping - The Epoch Times

Posted: 27 Apr 2010 12:01 PM PDT

With the effects of a worldwide global financial crisis still being felt around the nation, scores of Americans are in "wait and see" mode when it comes to their equity investments. Though some financial experts dispute the wisdom of this statement, "buy and hold" is an oft-repeated mantra in personal finance circles, and many Americans take that advice.

But when it comes to increasingly popular online savings banks, savers are notorious for moving funds in search of the best rate or doing what is known as "rate shopping" or "rate hopping."

"Because of the ease of opening online accounts, savers tend to switch from bank to bank more than they would if they had their money at a physical branch location," said Ernie Tan, vice president of online bank WTDirect.

Good News, Bad News
The good news is that Americans are saving more. According to the Bureau of Economic Analysis, the U.S. personal savings rate reached nearly 4.6 percent in 2009—this is nearly double the rate from just three years earlier.

The bad news is that by constantly switching banks, savers are likely failing to get the most out of online savings accounts and may miss the larger picture.

Worth the Rate?
Ramit Sethi is a nationally recognized personal finance expert and author of a blog and best-selling companion book "I Will Teach You To Be Rich." Mr. Sethi says that he often sees people move from bank to bank for minuscule interest rate differences. He explains, "Rate hopping is one of the biggest personal finance mistakes you can make. If you have $10,000 in savings, moving for even an entire percentage point will save you around $8 monthly—by the time you switch online banks, rates often have changed and your goals have likely suffered."

Keep Your Savings Habits, Change Spending Habits
Mr. Sethi asserts that a better and more lucrative strategy is to spend time looking for drains on your finances. By focusing on how to cut your personal and household expenditures, you are more likely to save money. He asserts that "taking time to find a way to reduce gym costs or your cable bill is a better strategy than moving accounts for $8 a month."

Focus on the Bank, Not the Rate
After committing to sticking to savings goals and account benefits rather than looking strictly for temporary rate increases, the next step is to look for the right online savings bank. While you do want an institution offering rates that are consistently high, there are several additional factors to consider depending on your life stage and financial situation.

Some online banks take account history and activity into consideration when offering promotions, rate increases, and rewards to clients.

When saving small amounts for goals like vacations and electronics purchases, providers like ING Direct can be a good option. While ING Direct does not typically sit among the top rate payers, the bank offers a number of tools to help savers organize funds and prioritize goals. Given its low minimum, ING Direct is popular among first time savers and younger generations.

High-yield online banks like WTDirect have minimum balances that can put them out of reach for the recent college graduate. However, these premium savings providers offer benefits like rapid transfers between linked checking and brokerage accounts, access to wealth advisory insight, and high touch personal service. If you are saving for college tuition, investments, or a home purchase, these factors may be important.

But according to Mr. Sethi, one of the most important factors to consider is one you should avoid. "Avoid banks offering teaser rates at all costs—pick a [online] bank you can trust for the long term," he says.

J. Todd Smith is a co-founder and former partner at a New York City-based investment advisor. He is currently a partner at The Longitude, a branding and communications consultancy to clients including financial institutions. He has earned a Series 65 designation.

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