the411

Why Are My C.D. Rates So Low?

Yes, there's no denying it: Interest rates are abysmally low right now. Understanding "why" and the impact on your bottom line, can make a big difference in how you use C.D.'s in the future.

What are interest rates anyway?

Simply put, interest rates can be defined as the “Cost of Capital”, which to put in regular language just means the 'cost of doing business'. Let's take a look:

Why Signing On the Dotted Line Needs Careful Consideration

With tax returns neatly filed and over with until next year, it seems like the perfect time to talk about what your signature means, both on your tax return and other documents as well.  A signature by definition binds the individual signing the document [i.e. contract, agreement, form, etc.] by the provisions contained in the document, which means simply:  You are legally obligated to whatever is contained within them.  And in circumstances where you are married and signing as one of the parties to the contract—or tax return—you share in the legal responsibility, as well as in any legal consequences, that may arise.   

What Were You Doing Two Years Ago? A Stock Market Post-Mortem

Do you remember what you were doing 2 years ago today?  For most people there was a lot of hand–wringing and much worse as the stock market was cratering again to new lows ...

I remember one client in particular who called me to say she was going to liquidate her entire portfolio … she just couldn’t take it anymore.  She had been advised to do so by her CPA.  As you all l know I don’t manage money any longer, but I do help clients in selecting their financial advisers as just one part of our work together.  Given my 26+ years of watching markets and having lived through some past very dark market days, I recognized this as a sign.  A sign that things were about to turn for the better …

You don’t have to Spend Less this holiday season… you just have to Spend Right!

The holidays are around the corner, the time of year when things get a little crazy and, unless you’re careful, all that hard work you’ve done on cutting back spending can go out the window. But don’t worry! With a well-laid plan for spending these holidays, you can save yourself some moolah—and some anxiety!

Why not start now?  It won’t take more than 15 minutes here or there to come up with your holiday spending plan.  The below section will calculate your target "spend rate”—the amount that you can reasonably afford this holiday season—and teach you how to adjust as you go along so that you stay within that target.  

What the Fluff? The Truth to Prioritizing your Budget

From our readers’ corner:

Lately I’ve receive a lot of questions from readers, as well as my clients, trying to decide what percentage they should be spending in a particular category of expenses in order to maintain more proactive and empowered financial behaviors.  This is an excellent question and glad that all of you readers realize the importance of “owning” your money!

While it can seem interesting or even fun to see how much you’re spending in a category vs. your neighbors, these percentages are NOT the Holy Grail you should be focusing on.  It only has meaning if you’re comparing yourself to others!  In other words the percentages are a ‘relative’ measure and only have meaning when compared to someone else’s results.  While I agree that it makes cute  and easy to understand pie charts, in terms of how to end up with more money for saving and investing, this is not where to focus your attention.

Do the New Credit Card Rules Affect You? (Hint: Yes, They Do!)

As many of you have heard by now, the Federal Reserve Board approved several new rules providing credit card protection from high and often unreasonable late and penalty fees. The new rules, which will go info effect on August 22, 2010, are meant to ensure that these fees are less costly and more fair for consumers.

The new rules are an amendment of Regulation Z, which implemented the older consumer credit protections established in the Truth of Lending Act of 1968. Since these rules are over 40 years old, the rights they provided are much more limited in comparison to the new amendments.

For example under Regulation Z a late fee payment would be the same amount for a $30 minimum payment as it would be for a much higher payment such as a $70 minimum payment. Under the new rules; however, credit card companies can charge a maximum late fee of $25 with only a few exceptions. 

Here is a breakdown of the rules that you will want to know about: 

The Five Most Common TRICK Investment Proposals

Investment proposals often seem like they are simply too good to be true, and unfortunately they usually are. We created five of the most common investment sales tactics purposely used to trick you into making a shaky investment. Here are FIVE quick and easy phrases that everyone needs to beware of:

Five Healthy Financial Habits for New (And Not-So-New) College Graduates!

The hit song, Graduation (Friends Forever), released in 2000 by Vitamin C, alludes to questions and reflections that I think we've all felt at graduation time. 

"...And so we talked all night about the rest of our lives.  Where we're gonna be when we turn 25?..." 

When at a crossroads in life, it tends to be a time for examining more than just one aspect of our lives. Here is some food for thought for both current and future Graduates on where you might be financially when you turn 25.

April Is Financial Literacy Month: What Steps Will You Take Now for Financial Empowerment?

In honor of Financial Literacy Month we have rolled out 2 new Global Call-In Coaching programs that address some of the most critical financial issues we may face in our lifetimes.  While we recognize that there is still a way to go for some folks to re-establish the financial foothold they held pre-crash of 2008 - 2009, we also would like to point out the tremendous resilience of our economy as today we watch the stock market continue its 72% advance from the frightening March 9th lows of 2009. 

Just a little over a year ago, I remember sitting with a client who was ready to capitulate to the panic and fear mongering that was at its zenith in the headlines. The client was also getting advice from her CPA that it was time to throw in the towel. 

Bay Area Couples Pair CDFA's Services With Mediation for Lower Costs in Divorce

While divorce is never easy even in the best of times, new approaches and solutions for clients continue to emerge as they grapple with diminished real estate values and a slow economy.  I am seeing a new trend in the number of both individuals and couples who are using our pre-divorce financial preparation and evaluation services as a first step, before contacting a divorce mediator or attorney.

Particularly among those parties who are choosing Mediation to resolve their divorce, I have seen a significant increase in couples and individuals using my services prior to beginning their mediation talks as they recognize lower costs and a more efficiently focused process.