Why We Are Never Satisfied with What We Have

I have to admit, I do it too. I complain. Seek better. Complain again. Ridiculous cycle. It’s more of a condition really. A humanity disease, I think we are born with it. It is almost as physical and useful as a regular appendage. Don’t get me wrong, being dissatisfied with here, has got us all to a lot of great theres. Otherwise America would still be in dreary old England and we wouldn’t have the 4th of July.

Most progress has something to do with wanting more, better, different. But it isn’t always good. People jump from relationship to relationship, place to place seeking what they didn’t find in the previous opportunity. It’s worth considering, for a moment, that maybe we don’t take full advantage of the opportunities that exist, right where we are.

Financially, we are always striving for more. No matter how big the raise, somehow we are still always just scraping by. A very particular group of dissatisfied individuals resides in the settlement recipient community. Those are the people who are receiving payments spread out over time. Impatient for the money, sometimes justifiably so, they cash in their future payments to get their money sooner. So instead of receiving the regular payments spread out over time, they choose to accelerate their payout. Of course, the reason is they think it would be better that way.

It isn’t always better to unstructure your payments. Just like it’s not always better to get a new car, move to a new place, and get a new love interest. There is a healthy time, motivation, and method for improving your situation, be it financial or otherwise. Consider carefully, take a moment and consider, if the way the things are, might not be good enough.

Jason Rigler

Should You Borrow From Your 401(k) Account?

f you have a 401(k) account, it can be very tempting to borrow from your account especially when your balance is very high and a loan could easily pay off existing debt, fund a home purchase, or pay for college tuition. Before you make the decision to borrow money, there are several things you must keep in mind to avoid risking your funds.Borrowing from a 401(k) can seem like a risk free loan, especially since you repay yourself with interest. However, there are costs involved that are not readily apparent to the borrower who elects to take out a loan:

1. On the borrowed funds, you lose all tax-favored investment returns. In other words, you are effectively charged extra interest for the loaned funds.

2. Any interest you pay, even though you are paying yourself, is not deductible, but will be taxable to you when the plan pays you back via future distributions.

3. You may have to pay a fee to take out the loan. Add this expense to the loan costs to see if a loan is still cost effective.

4. If you leave your place of employment before paying off your loan, you will be required to pay the loan back in its entirety immediately. If you do not have the funds available to pay back the loan right away, you will then be subject to IRS taxes and penalties which can eat up as much as 30% or more of your borrowed funds depending on your tax bracket. The IRS treats all loans that are not paid back as disbursements.

Yes, a 401(k) loan can help fund life’s emergencies, but the hidden costs and fees involved as well as potential taxes and penalties can quickly turn a good thing into a bad move.

Why We Are Never Satisfied with What We Have

I have to admit, I do it too. I complain. Seek better. Complain again. Ridiculous cycle. It’s more of a condition really. A humanity disease, I think we are born with it. It is almost as physical and useful as a regular appendage. Don’t get me wrong, being dissatisfied with here, has got us all to a lot of great theres. Otherwise America would still be in dreary old England and we wouldn’t have the 4th of July.

Most progress has something to do with wanting more, better, different. But it isn’t always good. People jump from relationship to relationship, place to place seeking what they didn’t find in the previous opportunity. It’s worth considering, for a moment, that maybe we don’t take full advantage of the opportunities that exist, right where we are.

Financially, we are always striving for more. No matter how big the raise, somehow we are still always just scraping by. A very particular group of dissatisfied individuals resides in the settlement recipient community. Those are the people who are receiving payments spread out over time. Impatient for the money, sometimes justifiably so, they cash in their future payments to get their money sooner. So instead of receiving the regular payments spread out over time, they choose to accelerate their payout. Of course, the reason is they think it would be better that way.

It isn’t always better to unstructure your payments. Just like it’s not always better to get a new car, move to a new place, and get a new love interest. There is a healthy time, motivation, and method for improving your situation, be it financial or otherwise. Consider carefully, take a moment and consider, if the way the things are, might not be good enough.

Jason Rigler
“Settlement Advocate” and consultant for Prosperity Partners Customer Service Department.

Ways to Save Energy and Slash Electricity Bills

1. Lighting & Light Bulbs
Install low energy light bulbs in rooms you use regularly - they last up to 15 times longer than a normal light bulb and provide the same lighting for a quarter of the running cost. Turn off the lights when you leave a room for a long period and don’t use several light bulbs where one will do the job. Teach all family members to turn off lights when leaving a room.

2. TV, Hi-Fi & Radio
Turn off the TV or video and hi-fi rather than leaving it on standby. Always use the television’s on/off switch. Leaving the television on standby wastes energy.

3. Cooking
Microwave ovens reduce cooking time by 15% to 20% and save energy. When boiling vegetables, use just enough water to keep them covered. Use a jug kettle that has a water level gauge to ensure you only heat the amount of water you need. Cover saucepans with lids whenever possible to reduce the cooking time.

4. Home Laundry & Dishwashers
Save electricity by using old-fashioned clothesline for clothes drying. Avoid drying clothes on radiators as it lowers the room temperature, making your boiler work harder. Shut off dishwasher for dry cycle. Let your dishes “air dry”. Don’t use dishwasher or laundry equipment until you have a full load.

5. Fridges & Fridge Freezers
Make sure your refrigerator and freezer door seals are airtight. Let hot foods cool before placing them in the refrigerator. Defrost refrigerator regularly - when about 1/4 inch of ice has formed. Place your refrigerator in the coolest part of the kitchen - away from cookers, heaters and out of direct sunlight.

6. Heating
Turn off electric water heater when going away for vacations or weekends. Turn your heating down rather than opening a window to reduce the room temperature. Never cover radiators with curtains or furniture as this reduces their efficiency and wastes valuable heat. When going on long holidays, remember to switch your water heating off.

7. Work Tools
Use hand tools in your workshop instead of power tools.

8. Appliances
When shopping for new appliances, ask about energy-efficient models. Buy appliances on the basis of cost plus operating costs, not price alone. Limit the use of appliances that use over 1,000 watts. Keep appliances clean and in good working order. They’ll use less energy.

9. Bills
Check all energy bills closely. Errors can be costly.

10. Insulation & Air conditioning
Insulating your attic will save on operating air conditioning (also heating). If your walls are suitable, cavity wall insulation will substantially reduce heat loss. Keep air conditioning condenser shaded from sun or on north side of house. Turn off air conditioning when no one is home.

Save Your Money, Dont Give to Charity Scammers

**If it’s Spam, it’s a Scam!- If it sounds too good, if it shows up in your bulk folder or your spam folder - don’t touch it, just delete it

**Check out the charity- You can find some charity info at the BBB site www.give.org

** There is no deadline to give- Take you time. Charities don’t have deadlines, but scammers do to stay under the radar. Tell them you will think about it. If they use high pressure tactics, they aren’t worth it and more than likely aren’t legit.

**Ask Questions- Found out the location of the charity, how much of the money is for Administration use and how will the money be used for the needs. If 50% or more of your donation goes to executives’ salaries, administrative cost and fundraising, skip them.

**Get information in Writing- Have them send you a brochure, a graph of their previous divisions of money, and their 990 tax form information that they file with the government.

Charities are required to provide Form 990 information on request (This excludes churches, synagogues and other places of worship. Don’t be fooled by their ‘tax-ID number’ these are only needed to for employer verification.

**Check out all charities for Police and Fire Departments- Check them out first, get the name, address and phone number to contact them back and do follow up.

**Get a Receipt- Preferably one with the charity name on it. A paper trail is always a good thing.

** Don’t donate with cash- Again the paper trail idea, check or credit card is best.

**Be protective with information- Don’t give information out over the phone like credit cards or personal information, unless you have checked them out or dealt with them before.

**Get the exact name of the organization- Many have names similar to legit organizations. They may change the wording slightly to throw you off.

**Contact the authorities- Police and or FBI can be contacted, have as much information as you can with you to give them. Even recording a call can be helpful if you get regular calls, make sure it is allowed in your state or if you have to let them know you are recording them.

The BEST way to give to charities is to contact them after you have done your own research. Don’t let the scammers scare you off, Please do give of yourself, time or money. Print out or email these tips to others who may not be aware.

Dawn writes for the site FrugalforLifecom and is a resource for those looking to live frugally, save money and live below their means in a materialistic society.

June 22, 2007 | Filed Under Personal Finance

Help With My Annuity

The cries are heard from the distance, “I need help with my annuities.” Nothing has changed…just a lonely senior who can’t trust anybody with her annuity because every time she asks for advice, someone tries to make her invest in a different annuity…Sound familiar? Well you are not alone.

Often times when speaking to a senior about their annuities, I ask them their biggest complaint. Time and time again they say that it is hard to find someone who can help them with their annuity without trying to sell them another one. It is not uncommon. The truth of the matter is, many annuity agents are not out to help the client, but to help themselves (I am sure you are not surprised). They want to make the “fast buck” without regards for the client’s needs or investment objectives. The unfortunate part is that, this isn’t going to change.

Honest help with an annuity is hard to find. Insurance agents don’t get paid for their time, they usually only get paid for making a sale. So it’s no wonder why they always recommend another annuity. I once visited someone who needed help with an annuity that an agent “talked him into.” The problem was, in order to get into this annuity, the agent talked him into surrendering his old annuity and paying a $13,000 surrender charge to do so-AND THE ANNUITY HE PUT HIM INTO WAS WORSE THAN THE ANNUITY HE GOT HIM OUT OF…When I asked him why he called the other salesperson in the first place, he told me he just needed to make a small withdrawal from his annuity and didn’t know how…And the agent tricked him into switching it into another annuity and paying a huge surrender charge which he could never recover due to his age…Fortunately it wasn’t too late and we were able to reverse his transaction.

However, good help is hard to find. There is no doubt. This may come as no surprise but my recommendation to anyone who needs help is to first purchase the book “Annuities: The Shocking Truths Revealed.” Sure, I wrote it and sure I have a vested interest in saying that, but at least it talks about annuities in a way that anyone can understand them. And at least it points out all the things people who own annuities or are looking for annuities need to be careful of. Most importantly, it points out the dirty little secrets that agents never tell you about annuities.

The bottom line is this. If you need help with your annuity, you need to be vigilant. Many agents are out there for their own good and you must be aware of this. Utilize your resources and learn the right questions to ask your agent before making a decision (Also found in the book). Sure, you may just give up and never get help but the worst decision is no decision. Help with your annuity is hard to find, but not impossible…that’s why I wrote the book!!! Good luck and remember…

Ignorance is not bliss…

Personal Finance - Have Consumers Had a Belly Full of Personal Debt?

For months, we were trigger-swipe happy, putting our groceries, clothes, holidays and service charges on our credit cards. We wanted mortgages, we took out loans, we watched Property Ladder and What Not To Wear. Whether you were born middle class, had middle class aspirations, you became middle class through your spending. Debt united people around the UK, we sympathised with each other on what we couldn’t afford - but it didn’t matter, we still bought it. Soon everybody had a bottle of Jacob’s Creek in their kitchen and olives and humous in the fridge.

Yet, it would seem as if a debt conscience is setting in. This morning, The Guardian printed a story based on the fact that Nationwide had reported a 0.2% decrease in the average house price, whilst the Times reported on a statement from the Bank of England, showing that credit-card borrowing was at its slowest rate for more than four years, with mortgage lending also very static.

According to the latest Department of Trade and Industry Survey, 5% of individuals reported finding their household’s debt repayments a “heavy burden” and 4% of individuals are currently behind in payments for at least one credit commitment or domestic bill over the past three months.

According to Credit Action, in December 2004, 1.2 million electricity and 1 million gas domestic customers were behind in repaying their debts to their supplier. Additionally 20% of people say that they often neglect checking their bank balance because “they are too scared to find out how much money they have”, according to Lloyds TSB.

Credit Action also reported that the number of people searching for help to manage their debts had almost doubled in May in 2005, compared to figures in May 2004 and a survey from Relate revealed that 44% of couples find money to be a contentious issue in their relationship and a quarter of people in debt are receiving treatment for stress, depression and anxiety from their GP.

It doesn’t have to be all doom and gloom however. If you’re lucky enough to have no outstanding debt, you can keep you finances in shape by exploiting the services of sites such as moneynet, which provide financial product price comparison information and extensive consumer information guides. If you have any outstanding debts, you can seek advice from the Consumer Credit Counselling Service (CCCS) or Citizens’ Advice and financial comparison sites like lowermybills and moneynet also provide detailed research on debt consolidation loans and debt management.

Resources: