PerkStreet Financial & Ally Bank: Who's Got The Better Checking Account

If you look on any personal finance website you will see ads for PerkStreet Financial and Ally Bank. Each have much to offer, each have free accounts, and each are easy to use. Let's see what each one has to offer.

PerkStreet Financial


PerkStreet Financial is the only checking account that has rewards for using your debit card. Customers have the choice of cash back, music downloads, or a free coffee.PerkStreets claim to fame is that just by using your debit card on just your normal purchases, you can easily earn $600 cash back every year.


How to make deposits with Perkstreet:

• Regular mail: Using a postage-paid envelopes.
• Free overnight delivery: Send your checks overnight for free from 3,400 UPS Stores and Mailboxes Etc. locations nationwide (get a tracking number to ensure delivery).
• Direct deposit: Sign up for direct deposit with your employer and have all or a portion of your paycheck deposited into your account automatically.
• Online transfers: Move money easily between your PerkStreet account and outside accounts.
• MoneyGram® ExpressPayment: Deposit cash free at 18,000 locations nationwide, including Wal-Mart stores. You’ll need some specific information from Perkstreet to use this deposit method.

How to withdraw money

You can withdraw money without a charge at one of 37,000 ATMs within the STAR®surcharge-free network or at any merchant that offers cash back with purchases such as grocery stores or department stores like Walmart or Target. You may also use ATMs outside of the network but you’ll pay a $2 fee plus any fee the ATM owner may charge.

Another benefit of opening a PerkStreet Financial Checking account is that they don't do a credit check on you. If you ever have walked away from overdraft charges and your old bank, you know any other bank won't give you a checking account because they do a credit check.

Other exciting services are about to come out at PerkStreet.

• Increasing the amount of cash back they can earn;
• Connecting with an expanded community to share secrets for saving;
• Accessing an expanded set of financial services from PerkStreet (To the thousands of customers who have asked for savings accounts — we hear you!);
• Using a groundbreaking set of online tools to identify additional ways to save and reach financial goals faster.

Sign up today for one of the most rewarding checking accounts and get the 

PerkStreet Financial Debit MasterCard® - the debit card that helps you get debt free. It gives you 5% cash back on certain categories and 2% on everything else.

Ally Bank

Instead of a rewards plan Ally Bank offers interest on your balance. The details of their checking account:

• $0 monthly fee
• $0 to open and no minimum balance – you can open it today and begin using it when you want
• Free checks
• No ATM fees at any ATM
• Variable rate account where balances $15,000 or more get an even higher rate
• Ally Bank has a nice feature for people who have trouble with overdrafts. If you set up an Ally Bank On-line Savings account and link it to your Interest Checking Account, every time you go into over draft Ally will transfer the funds to cover the overdraft all at no charge. The amount of money you will save on fees is tremendous. Other banks normally charge you for this service.

How Do I Make Deposits?

• Ally has something called eCheck Deposit, you simply scan your check and transmit it to Ally Bank. 
• Send a check using special prepaid envelopes made avaiable by Ally Bank.
• Move funds between accounts at other banks to your Ally Bank account.
• Set up Direct Deposit for your payroll check.
• Use a wire transfer at no charge.

How Do I Withdraw Money From Ally Bank?

You can use any ATM in the nation and you will not be charged. And if you are charged, ALLY will reimburse you. They have more than 400,000 ATM locations and when you use your debit card you can receive cash back.

To open a ALLY Checking Account Click Here.

What's The Verdict? ALLY or PerkStreet?

If you don't want to bother with cashback go with ALLY. They give you interst ony your balance with no hassle. If you want cashback then PerkStreet Financial is the way to go. If you only have a small amount of money to use in these accounts, you results will not be great. But if you depositing at least $50,000 or more through your account then you will see some cashback money when using PerkStreet.

What's Your Greatest Asset? - It's Not What You Think

Image via WikipediaYour dreams of owning a house, sending your kids to college, and saving for retirement are based on you having a long and fruitful working life. Your income and your ability to produce income is critical to making your dreams come true. Then why is it when the nonprofit Life Foundation conducted a survey asking "What was your greatest asset?", only one in six working Americans (16%) said their paycheck was.

Think about what would happen if tomorrow you became sick or injured and could not work. Your inability to work would be devastating to your life and your families.

If a 25 year old worker that earned $50,000 a year, were hurt or disabled, that worker would lose $3.8 million in future earnings. Yet fewer than one in three workers in the private sector have long-term disability coverage through work, according to the U.S. Department of Labor.

“Most people don’t realize that they have a three in 10 chance of suffering a disabling illness or injury that could keep them out of work for three months or more,” said Marvin H. Feldman, President and CEO of the LIFE Foundation.

What we forget to insure is our greatest asset, our income. Disability Insurance makes sure that financial hardship doesn’t follow the physical and emotional toll that comes along with disability. When you think about it, your most valuable asset isn’t your home, car or jewelry. It’s what allows you to pay for all these things—it is your paycheck.

How Much Does it Cost?

• Expect to pay between 1 percent and 3 percent of your annual salary for a good disability plan, according to DisabilityQuotes.com. That works out to $600-$1,800 for someone earning $60,000 a year.
• Disability insurance provides income to help pay your living expenses if you are unable to work for a significant length of time because of injury or illness. Generally benefit payments are 60 percent of your total salary.
• Short-term disability polices have a waiting period of 0-14 days and pay benefits for no more than two years. Long-term disability policies usually have a waiting period of several weeks to several months and benefits could be paid a few years up to the rest of your life, depending on the policy terms.
• States such as Hawaii, New Jersey, New York and Rhode Island requires employers to provide disability benefits for up to 26 weeks, according to the Insurance Information Institute. Some employers provide short-term disability insurance, although often the employees have to pay the premiums.

Discounts:

• Premiums are lower for policies with a longer waiting period before benefits begin and/or a shorter benefit period.

Shopping for disability insurance:

• The Federal Citizen Information Center gives a detailed overview of long term disability insurance, listing common terms and tips for buying.
• Insurance4USA.com provides online quotes.
• Your state insurance department can give you a list of registered disability insurance companies in your area. The National Association of Insurance Commissioners gives links to these state offices and has a database to search for financial details and complaint histories for specific companies.

Remember Disability Insurance will cost more than life insurance. Statistically you're more likely to file a claim for disability insurance than life insurance. Depending on the type of work you do, the rates will vary. The costs will vary greatly depending if you sit at a desk all day or work construction.

Medical Issues Can Ruin Good Credit

This is a guest post by Ed O’Brien. This is his third time writing for 50PlusFinance and we always appreciate his insightful perspective.

Many people mistakenly believe that paying doctor and hospital bills is not as important as paying other expenses. However, medical bills are typically reported to the credit bureaus just like any other debt. Unpaid medical debts can cause big problems in your financial life very quickly. Plus the stress of debt on top of poor health can be a dangerous combination.

Medical Bills Matter
Doctors and hospitals will report unpaid bills on your credit report which leaves black marks against your good credit. Unfortunately because medical bills will often pop up unexpectedly and can get quite expensive, debt can easily start spinning out of control. Add to the situation your inability to work and earn and income and a life-long struggle may be ahead to get back on financial track.

Consider also that medical debts you are not paying may eventually go to a debt collector who will be more aggressive in collection efforts and also add black marks to your credit score. Even with insurance, medical costs are high these days and are projected to only go higher in the future.

Staying Above Water with Medical Costs
In order to avoid major debts heading into your retirement years, it is better to prepare for the unexpected as soon as possible. The more you prioritize your plans for what may happen in the future, the more you are able to safely navigate the financial waters when your health makes a turn for the worse.

Here are some ways to get yourself in order before something should go wrong:

Understand Insurance Coverage
Most people will chose insurance coverage based more on price than benefits. Others who receive affordable insurance through their employers often have no clue what they even have. It is important for you to understand what kind of benefits you are paying for long before something happens. You will likely make wrong decisions concerning your health and treatment when you remain unsure about the financial side of things. Review your policy information and contact the insurance company for explanations on anything you don’t understand.

Contribute to an Emergency Fund

Financial experts urge consumers to sock away between 6-12 months worth of living expenses in a good interest-earning account. This money should be allowed to earn interest and should only be used during times of true emergencies, including health concerns. If you can’t work due to a work injury or medical illness, an emergency account may be your only viable resource. Contribute to the account monthly. You may even consider setting up automated deposits from your payroll department. What you do actually see will likely not be missed. It will allow you to build a significant stash of cash for when you need it.

Live a Better Life
Many health conditions that break us are actually of the preventable variety. Eating better and getting regular exercise is important. Sedentary lifestyles can trigger all kinds of expensive medical conditions including unhealthy weight, high blood pressure, depression, and heart problems among many other things.

Organize Your Life
If medical treatment requires you to be treated in a hospital for a period of time, other people will be relied on to get your important documents the hospital might need. Always keep relevant health information, including updated health insurance policy information in an accessible and clearly marked folder for easy retrieval.

Ask for Assistance
If you anticipate having issues paying your medical bills even if you have insurance, it is wise to contact your medical provider’s office right away and keep them informed of what is going on with your situation. Many will work with you on new payment arrangements that will keep you out of collections until the debt is satisfied. If you do not communicate, your bill will likely be expedited to the collection agency.

If you don’t have insurance or have a co-pay you can’t afford, speak with the medical provider’s office on the day of your visit and explain the situation. Many times doctors will allow for discounts or will waive service fees for their loyal patients. The worst that can happen is they turn you down with a ‘no’. At least you tried all available resources to save money.

Ed O’Brien is a seasoned writer in personal finance, specializing in credit repair. You can find more of his articles located at CreditRepair.org.

Push the Easy Button For Brokerage Account Shopping

Image via CrunchBaseToday we have a lot of choices where we invest. Whether it's at work with a 401(K), local brokerage, IRA'S or online brokers. Even if you do it yourself and your happy with your broker it always is smart to see what the competition is offering, you may get a better deal and save money.

Bankrate.com just made it easier for you to compare brokerage deals.

You can now compare trading brokerage accounts for free at Bankrate, pitting one companies’ costs and features against another. At a glance, you can see each broker’s:

· Commissions, whether online, phone assisted or broker assisted.
· Initial deposit requirements.
· Maintenance fees.
· Balance to avoid.
· Services and features description.

With big name brokers like ING Direct, Scottrade, TD Ameritrade, Merrill Edge and Zecco holdings, you’re just a few clicks away from trading online.

Click here to go to Bankrate.com and check out the Brokerage Account Shopping.

Google Wallet - A Credit Card In Your Phone

Image via WikipediaGoogle, Inc. has debuted an new application called "Google Wallet". This application allows consumers to use their phones to pay for products and services. It would eliminate the use of credit or debit cards. Google Wallet is set to launch this summer and allow the company to join in on the lucrative business of digital credit cards.

All the major cell phone manufacturers are rolling out new handsets that will include the electronics to allow you to pay for groceries, movie tickets, and restaurants by a simple wave of your phone over a digital sensor.

Google is jumping in on this technology with both feet because the profits from handling credit transaction will be a big profit center for the company. Add to that the growing world of local offers and coupons. Services like Groupon and local coupon companies will have a better way to link their products to consumers. Businesses will be well poised to link purchases, digital coupons, and location based advertising to everyone with a smart-phone.

Google said by 2014, it expects purchases made on smart-phones to quadruple to $630 billion dollars. Don't feel bad for Visa and MasterCard, they still will process about $6 trillion worth of credit card transactions annually. But I wouldn't be surprised that they are looking over their shoulder to see an approaching competitor where there wasn't one before.

The way the phone works is that they have something called near-field communication (NFC). This is a radio technology that allows phones to talk to credit card terminals. Using built-in microchips, the phones can conduct digital conversations with credit card reading devices. The phones will allow consumers to use coupons or loyalty cards, pay for goods and receive a digital receipt all within a few seconds.

Thanks to this new service Google will streamline the whole consumer point-of-sale process. The process should benefit the consumer. What's the positives and negatives to this new product.

Positives

• This system carried out further would just about eliminate your purse or wallet completely. No need to carry anything but your phone to go shopping. Why not digitally store your drivers license, AAA card, and health insurance card all in your phone.
• Your coupons and loyalty cards could all be in your phone, eliminating the need to carry those things around.

Negatives

• Google will have your shopping information. Along with your location where you shop. Plus the frequency and time. They will know all your purchases no matter where or when they occur. Whatever you purchase, they will know.
• What if your phone is lost or stolen. You can't do your shopping, you will have to have a credit card or cash as a backup.
• If your battery dies your stranded with no way to pay.

This new technology will take a while to catch on. It seems like just a more difficult way to perform a simple task. Credit cards are just a piece of plastic with a magnetic strip on the back, real simple. It reminds me of the same battle 3-D TV still has, finding  a way to be as easy to watch as regular TV. Sometimes new tech just makes things more complicated.

The Consumer Financial Protection Bureau - What Does It Do? Will It Work?

Image by mdfriendofhillary via FlickrThis week the White House hosted a summit of financial writers and editors at the White House. This event gave 2 dozen financial journalists access to top Obama administration officials. The President even stopped by to give his views on his personal finance beliefs and a brief Q&A.

The meeting centered on the debt ceiling, the housing crisis and the job market. One of the focuses of the current administration is financial education. The recession has brought to the forefront the need for public education and protection from potentially damaging investment products.

President Obama, early in his term, assigned Elizabeth Warren as head of a new federal agency called the "Consumer Financial Protection Bureau"(CFPB). The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) established the consumer bureau. Since then, from scratch, she has been trying to lay out how the agency will function and what it will try to accomplish.

She described the CFPB's key principles as ensuring that when using financial products:

• Prices are clear.
• Risks are clear.
• The ability to compare like products is relatively easy.

If the agency can achieve that, then consumers can ask two key questions:

• Can I afford this product?
• Is it the best deal I can get?

The result of all this, Warren says, is a competitive marketplace -- which should be good for both consumers and businesses. She compares the CFPB with the FDA. Just as the FDA doesn't allow inferior medical products to be sold to the public, the CFPB will see to it that consumers are able to differentiate between good, safe loans and deceptive loans that charge lower prices by burying risk in the fine print. The agency aims to work with consumers and lenders to ensure that financial contracts are understandable, so that markets can work better.

The CFPB has it's own website at www.consumerfinance.gov. There they state the central Mission of the CFPB:

"The central mission of the Consumer Financial Protection Bureau (CFPB) is to make markets for consumer financial products and services work for Americans—whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products."

The 3 goals of the Consumer Financial Protection Bureau (CFPB) are:

Educate.

An informed consumer is the first line of defense against abusive practices. The CFPB will work to promote financial education.

Enforce.

Like a neighborhood cop on the beat, the CFPB will supervise banks, credit unions, and financial companies, and it will enforce Federal consumer financial laws.

Study.

The consumer bureau will gather and analyze available information to better understand consumers, financial services providers, and consumer financial markets. 

This new agency will take over all the functions from government agencies that used to perform this function before. The agency that did most of these functions before was the Federal Trade Commission(FTC). Their work in financial consumer protection will shut down and move to the CFPB.

Others include:

Office of the Comptroller of the Currency (OCC)
Office of Thrift Supervision (OTS)
National Credit Union Administration (NCUA)
US Department of Housing and Urban Development(HUD)
Federal Deposit Insurance Corporation (FDIC)
The Federal Reserve System

When it's all said and done the CFPB will be a a regulatory agency with unprecedented powers with a broad reach across industries. We will have to wait and see how it will affect consumers and business. But we can be sure that the CFPB will do 3 things:

1. Consumers will be able to finally read the financial disclosure documents on their financial products. Whether it be credit card or mortgages, the terms and conditions will be in clear, easy-to-understand terms that allow consumers to compare offers.
2. The CFPB will examine consumer financial products, not the industries themselves. Previously, regulatory industry's were structured by individual industrys, now they will all be under one roof and the industry the product comes from will not be scrutinized, just the product.
3. Create a transparency on how credit scores affect the terms and conditions of the financial product like mortgages and credit cards. Lenders are required to disclose a score they used in all risk-based pricing notices and adverse action notices beginning July 21, 2011.

The future role of the Consumer Financial Protection Bureau will something to keep an eye on. 

Here's a video about the Consumer Financial Protection Bureau:

Fraud Alert - A Few Things to Watch Out For When Refinancing your Mortgage

With the recent economic meltdown, millions of people become victims of financial instability across the globe. People have been literally forced into debts and their financial lives have got stuck in the debt mire. Mortgage refinancing can save you from this danger. However, people who are carrying outstanding debt balance, their thought process often get paralyzed and desperation overrides good judgment. As a result, mortgage refinancing scams often take advantage of their desperate situation and put them into further debts. You must have heard the question "mortgage how much can I borrow", well, it is the most crucial question in the current scenario and you should be ready with the answer of this question in order to prevent yourself from mortgage refinancing scams. As, most mortgage refinancing scams are linked with home equity if you don’t pay enough attention to the refinancing procedure of mortgage you might run the risk of loosing your home in future. Read on to know about the most common mortgage refinancing scams and stay away from them in future.

Loan Application

• Mortgage refinancing scammers usually target consumers who have low incomes or bad credit rating or who rushes into signing the mortgage deal without being aware of its consequences. The most common mortgage refinancing scam comes through the application form you send in to a mortgage company. Sometimes, you are encouraged by the refinancing company to write down higher incomes than what you actually make, in order to get the loan amount sanctioned. Such unethical practice can lead you to loose your home because you won’t able to afford the high monthly charges on a month to month basis. As you have declared a higher income amount, you might have to pay different loan amount and rates based on what you declared. Remember, if you put on paper something that you do not really have, it is you who will end up paying for it as the application form does not count. 

Balloon Payment

• Another notorious mortgage refinancing scam is associated with the balloon payment. These Loans are used when an individual is no longer able to pay a mortgage. When you face a mortgage foreclosure you no longer think prudently and a scam lender take advantage of this to make his way to profits. He pretend to be compassionate individual offering mortgage refinancing and lower monthly payments to save you from foreclosure but the actual story is quite different. All you repay each month is the interest fee only and the principal amount is in store which you remain obligated to pay at the end of the loan term. It is referred to as a balloon payment and such refinancing scam is pretty hard to spot. If you fail to pay this amount within a stipulated period of time, you end up losing your home.

Many individuals are there who have been hit by mortgage refinancing scams. Stay alert, go through the mortgage deal thoroughly before signing it and evade falling into such scam traps in future.

How Much Do I Tip - 10 Ways To Tip Correctly

Image by juliejordanscott via FlickrI remember when I was just a young man my first job was delivering the daily paper that was my first exposure to tipping. Besides delivering the paper I had to go door to door collecting the money for the subscriptions. I met a lot of fine people and along the way I got myself some nice tips. 


Being on the receiving end of tips I never forgot how appreciative I felt when I received one. It made me appreciate the whole tipping process. If you ever go to dinner with someone who has work as a server in a restaurant, they are the first to speak up if they think you are under tipping.

Those days of my paper route are long gone but I never give it a second thought to include a nice tip when I am treated well by a hair stylist, server, or someone that you deal with on a regular basis. Remember when you tip, put yourself in the place of person you are tipping because it will give you a better perspective on the process.

You can get as many opinions on how much to tip as there are people. So I wanted to see if there were any guides to help in deciding how much is the proper amount to tip in different circumstances. At couponsherpa.com and itipping.com there are some great lists to get you started.

Here are a few tipping suggestions to get you going:

1. Take-Out Food: 10 percent when you pay. Tip based on total cost if you use coupons.

2. Chain Coffee Shops: 25 cents tossed in the tip jar.

3. Hair Stylist: 15 to 20 percent.

4. Taxi: 10 to 15 percent is standard, 20 percent if the driver helps you with heavy bags.

5. Grocery Baggers: $1 to $3, depending on the number of bags loaded into your car. (What if you bag your own groceries?)

6. Tattoo Artists: 10 to 20 percent, depending on complexity.

7. Movers: $10 to $20 per mover.

8. Dog Groomers: $10 per pet.

9. Hotel Housekeeper: $2 to $5 per night.

10. Gas attendant: No tip.

Looking through this short list and the more complete list at couponsherpa.com I realize that I have been over tipping in some categories and under tipping in others.

Tipping in our society is a pleasant way to show appreciation to someone who has served you well and maybe made you happy. To others it is the bane of our culture.

What's The Greek Debt Crisis and A Failing Business Have In Common?

Image by ClareMarie via FlickrThe owner of a small local business goes to friends and family and asks for a loan to see his business through some hard times. Within one year he burns through the cash and runs the business into the ground. He goes back to the friends and family and asks for another loan. What should they do cut him off and let the business fail or lend him more money?

The Greek Debt crisis is a lot like our businessman. The EU's single monetary policy rules required them to help it's member states. When Greece came into the European Union in 2001, it wasn't doing anything different than it's doing now. Only difference the economy was coming off a 10 year boom and money flowed freely. When money flows freely misjudgment and bad decisions are covered over.

Last Year

Fast forward to 2010, the IMF and EU loaned Athens 110 billion euros. Greece burned through it. One year later, the country is still facing ruin and still begging for cash. For the EU's central powers, Germany and France, there's no good way out of this. Again I ask the question, as in the businessman's predicament. What should the EU do with Greece let it fail or lend more money?

What is Greece doing wrong? Answer: Like the businessman no foundational change has occurred in thinking and planning. The borrowed money was just to fill the financial gas tank to get the the same broken down car down the road a little further. The money was wasted by the businessman and Greece.

If you want to help someone who is bad with money giving them a loan without a plan for them to change direction in behavior and thinking is doomed for failure. The Greek government has not done enough to implement austerity changes to its basic government planning. Like the Acropolis, Greece's economy is turning to rubble.

Bailout Time, Again!

Most likely, Greece will get another loan or restructuring of it's debts. Only this time, the other European governments will not take no for an answer when demands are made for deep cuts in the government's budget and fiscal policy. The citizens of the European country's who are going to help Greece, will not stand for their government to help a bad risk like Greece. When Greece gets it's new loan and then they default again it could trigger a bank crisis worse than Lehman.

Like Greece and the businessman, the United States government is also going down the road of misjudgment and bad decisions. They are out of control with the insane national debt and yearly deficits. In Washington, it's business as usual. The economy is crippled by this debt and until it is turned around we will continue to see this painful unemployment. It's time to cut Greece, the businessman, and the United States off till they realize our financial problems are symptoms of a greater problem.

Check Out Your Neighbor's Open House, Your Not Nosey, Your Smart

An open house attracts many people who come for different reasons. They may be buyers looking in your neighborhood, real estate brokers looking to list your home, or even the guy down the block who is curious. In my neighborhood if there is an open house you are sure to see me there. You may call me nosy, but I believe that taking a look provides me with a lot of good information if someday I decide to sell my own home.

The first thing I look for in a neighbors home is what home improvements or upgrades they have made. This information can be help you decide what home improvements you should maybe do first. One improvement may be your roof, if your neighbors mostly have all new roofs and yours is showing it's age, maybe that is one of the first things you change. When selling your home, a new roof verse an old roof may make all the difference in which house gets sold first. Seeing the upgrades your neighbors have made will keep you from overdoing it on your own upgrades. You don't want to over build or over upgrade in your neighborhood. Also seeing other homes will also give you ideas on things you never thought of to help improve your own home.

If you are planning to move in the near future, seeing other homes for sale will give you close view of your competition. You are competing for buyers when your neighbors house is also for sale. You will see what their homes appeal is and you can compare their home value with your own home. Looking at other home improvements can also let you know what features to advertise in your own home when you are ready to put your home for sale. Checking out a open house will give you ideas how to make your home stand out above the competition.

At these open house Realtors and real estate agents will be present. You will be able to ask questions and pick their brains and maybe learn a thing or two. See if the Realtor is actively marketing the home, being active in engaging prospective buyers. Some Realtors use your open house to market other homes they have for sale and not yours. This will help you weed out the bad ones and zero in on the good ones.

You may feel embarrassed at going to a neighbors open house, don't feel bad. The more people that see an open house is good for the seller, because it helps the word get out and helps sell the home. If the sellers are there they may appreciate some honest feedback about the house. So it's a good thing for you and the seller that you are there.

Next time there is an open house on your street be sure sure to stop by. You are going to learn something that will help you, when it's time to sell your house.

What Economic Slowdown? $43.5 Million Dollars Worth Of Rubble

Many people are still deeply hurting, from our current economic situation, yours truly included. Income is down and expenses are rising. But not all of us are suffering. There are a few people doing pretty well.

With real estate prices at an all time low it's time to do some buying. Thats what one hedge fund billionaire David Tepper did. He bought a little fixer upper in Sagaponack, Long Island. He paid $43.5 million dollars for the 6,000 square foot ocean front estate on 6.5 sandy acres.

What's the first thing you do? Well, if you're hedge fund billionaire David Tepper, you tear the thing down -- along with the guesthouse, swimming pool and tennis court -- to build an even bigger mansion.

According to Southampton Patch, Tepper bought the home last year from ex-wife of former New Jersey governor Jon Corzine, in the area's most expensive transaction of 2010. In April, he got a permit for the demolition, and yesterday, the site was finally cleared.

The new house will be about twice the size, with ocean views from every room, "a sunken tennis court, three-car garage, a widow's walk, second-floor decks including one with a Jacuzzi, and a covered porch," reports Hamptons Curbed, quoting the minutes from a recent town board meeting at which the construction was reviewed.

Is Cosigning A Car Loan Really So Bad?

Image by roger4336 via FlickrWe all know that cosigning a loan is just asking for trouble. Your taking a big risk that the person you are cosigning for will leave you holding the bag. When the bank doesn't approve an individual for a loan the bank is saying plainly that they believe the person is not financially or personally able to pay it back. Why can't people who are tempted to cosign a loan, for a freind or relative, be as calculating as that?

I have written before about my daughters car problems and need for replacing her car. The car has 210,000 miles on it and it's time. Yet the car continues to live on and won't die. She and her boyfriend have purchased a 2006 Chevy Cobalt. It's in great shape and has low mileage. It was a really great choice.

Then why am I bringing all this up? Well, they have bad credit, when they financed it they got a very high interest rate. It's 18% interest. The payments are high and a lot of money is going to interest. I want to help.

I feel if I refinance the car as a cosigner I could get their rate down to 5%. It would be a big help in getting the payment way down. But then that would go against the no cosigning rule.

If I did do it, would there be a chance they wouldn't pay it. Yes, there always is a they could lose their income and be unable to pay and also by their track record not pay their debts. I would then be on the hook for the note. Is it worth it to take the chance? Would it destroy the relationship?

What are the odds they would default. According to the FTC, depending on the type of the loan, as many as three out of four primary borrowers default on their obligations, leaving the cosigner to pay. This is, after all, why they need a cosigner: they're not good credit risks, either because they have too much debt already, or because they don't pay their bills on time.

This is their first real excursion into the world of credit for almost 10 years. They are learning first hand the result of messing up your credit. Sure the downside of bad credit is having the worst possible interest rates when borrowing money. But this is a great lesson and it will leave a bad taste in the mouth for many years to come. It's something they will never forget and hopefully never repeat. My intervention may circumvent this life lesson and postpone learning a hard truth.

You're not really helping someone if you assist them to take on a large car loan when they have had historical trouble paying their bills, or to refinance their debt without attacking the spending that brought on the debt in the first place. "Helping" people to avoid dealing with their problems isn't much help at all. It feels terrible to say no, and the person will probably be hurt when you do. It may sour the relationship. But keep in mind that however bad it feels, and however much the relationship suffers, this is nothing compared to the bad feelings and relationship problems that you will encounter if you become their chief creditor.

Five Reasons A Mortgage May Be Declined By A Lender

Preparing and filing all of the required paperwork in an effort to get a mortgage for your family’s new home is an enormous task, only to wait for some banker to call you to inform that the financial institution has decided to turn you down. It might seem flat out unfair and difficult to understand why you’ve been denied. As time has passed by, financial institutions seem to have become increasingly strict on who they are willing to lend their money to. Because of this, consumers need to be prepared. You need to understand how the lending process works and how you can best put yourself in a position to be approved for your mortgage. Here are five tips how.

1) Too much credit already used

It’s important to understand how financial institutions view existing consumer debt when considering a mortgage. A general rule of thumb is that an individual’s housing costs should account for no more than 33% of their gross income. Consumer debt should account for no more than 5% on top of that. When an individual’s consumer debt exceeds the 5% figure, it cuts into the 33% that is allowed on housing costs. For example, if your consumer debt accounts for 9% of your gross income, a financial institution may only approve a mortgage that account for no more than 29% of your gross income. So what does this all mean? Keep your credit cards under control to keep that consumer debt down.

2) Change of Employment

Changing jobs can increase the difficulty in getting your mortgage approved. The reason for this is that financial institutions are looking for consistency in your earnings. Specifically, they would like to see 2+ years of financial consistency. There are exceptions to this, however, such as individuals who are moving to higher paying positions in the same or a very similar field. Perhaps the most fatal job change mistake people can make during the mortgage process is transitioning from a salaried position to self employment as they now have zero financial consistency to offer on the loan application. Not surprisingly, the self-employed and those who work sales based jobs that rely heavily on commission are those who find it the most difficult to get accepted for a mortgage.

3) Your credit score is fluctuating

Because of the length of time is can take while shopping the housing market, it may be a matter of several months between filling out your credit application and finalizing the loan. Because of this it’s natural to expect that the financial institution may perform several checks on your credit. You want to be sure nothing happens that might cause it to go down during the process, causing you stress and complications. Make sure all of your payments are made on time during the application time period and also avoid opening any further lines of credit. For good measure, also be sure to request your credit report from all of the refutable agencies and check for any inaccuracies before beginning the mortgage process.

4) Mortgage payments are missed

To piggy back off of reason 3 a bit, it is extremely crucial that you do not miss any of your significant payments while applying for your new mortgage. The last thing you want to do is make the financial institutions start viewing you as a credit risk. If you have a current mortgage it is imperative that you pay it on time. If you are having issues paying your current mortgage you should discuss options with the mortgage holder to have it amended.

5) Missing the obvious

Lastly, be sure not to miss the obvious. When going through the application process be sure you read every form intently and understand what you are filling out. Make sure all of your information is accurate and complete. Double check and then triple check your work. This is an extremely important process so you will need to pay extra attention to detail.

Bio

This author of this guest post is Andrew Potter who is the director of My Online Estate Agent. My Online Estate Agent is a UK based low cost estate agent which allows sellers to advertise on Rightmove, Zoopla, Primelocation and Find a Property.

The Best Student Credit Cards Reviewed & Tips For Using Them Right

A students first credit card is not something to be taken lightly by a student or their parents. Students need to realize that credit cards are a form of money and you should not spend money you don't have. 

There is a place for credit cards in peoples lives but being responsible with them is the most important thing. The number one rule when being responsibly with credit cards is only spending what you have the ability to pay back, every month. 

Rule number two is never carry a balance. If you don't know if you can do that, then stay away from credit cards, your headed for trouble.

Here are a few credit card tips:

• Simply, don't use a credit card if you don't have the cash to pay it off when the bill is due. If your at the gas station and spend $20, when the bill comes in and you only make the the minimum payment, that $20 for gas can turn into $60 in the long run. DUMB. If you must use a credit card pay it off the same month and bank the rewards. 
• Never carry a balance. Your a student with little or no income. You have to be very careful with money. That balance will grow and grow over time. That $100 balance will work its way up to $1,000's before you know it. 
• Remember you have a credit limit. If you go over your limit you will be charged a large fee. Also remember your ability to pay off your monthly bill is in direct relation to your monthly income. 
• Annual fees are a no-no. It's very import to not pay a annual fee. It's also not necessary. There are many credit cards that have no annual fee. Stay away from them. 
• Avoid extra fees. Making a late payment or going over your credit limit will earn you a nice penalty fee. These are unnecessary costs you have to pay. It may be a sign your not ready for the responsibilities of credit cards. 
• Get the best deal on credit card offers. Today there are many companies offering credit cards. Shop around and compare their rates and reward points.

Some Student Credit Cards Available

The best of the bunch is the Discover Student card. It has some good cash back rewards and has no annual fee. The rewards are up to 5% in categories that change like travel, department stores, gas, restaurants, groceries, and more. There is a o% APR for the first 9 months. Also a 1% unlimited cashback bonus on everything else.

Another good choice in credit cards is the Citi Forward Card for College Students it offers all the cashback enticements of the mtvU card (5% at restaurants, movies, books) and 1% on everything else. You earn ThankYou Points with every purchase. Also you can earn an extra 10 points per month for staying under your credit limit and paying on time.

Are You Planning For Your Retirement Or Are You A Retirement Ostrich?

Image by Ginger Me via FlickrIn an age of faltering retirement plans and a Social Security system that is becoming insolvent, American are waking up to a new paradigm. In the old days, your savings, Social Security, and a part time job was all you needed. Today, some Americans don't give their retirement a lot of thought. They are dependent on Social Security and don't worry. They don't pay attention to their retirement because they think Social Security will always be there to take care of them.

When you feel someone is going to take care of you, you lose the ability or need to take care of yourself. A survey sponsored by ING, reveals that 55% of Americans do not know how to achieve their retirement goal.

Americans are realizing the fact that they are responsible and accountable for providing for their retirement. The stakes are higher today, retirees are facing a perfect storm of a faltering retirement systems, rising prices, a world recession, and global instability. We can no longer bury are heads in the sand any more.

According to a survey by HSBC, there are four categories of financial preparedness:

• Disengaged non-planners (35 per cent of the population) who are doing nothing, with the primary reason being a belief that they lack the necessary income.
• Advice-seeking non-planners (25 per cent) do not have a plan but do take occasional financial advice.
• Self-guided planners (13 per cent) have a plan in place but do not seek professional advice. Tend to be younger, mid to high income and internet savvy.
• Advice-seeking planners (26 per cent) have a plan and take professional advice to help manage their finances.

The worse off and most in need of help is the "Disengaged non-planners". They definitely believe they lack the money to prepare for retirement. They live paycheck to paycheck and are on a collision course with their retirement years. For them most of their working life is concerned for the present day. By choice or lack of money they will never attain a comfortable retirement.

The "Advice-seeking non-planners" are a lot better off. They are doing something for their retirement and do take financial advice. They have retirement accounts, though smaller than needed, it is still a good start. This group is able to improve their situation and address their future needs.

The "Self-guided planners" have a plan but do things on their own without professional advice. They are more aware of their future retirement needs and are taking action. They do their own investment planning and educate themselves to the financial world.

The "Advice-seeking planners" have a plan and seek professional help to help implement it. This group is the best of the 4 groups because they have the money, knowledge, and professional help to succeed.

If you are one of those that know they need to plan and save for retirement, yet are not turning this knowledge into action, you are part of the "Ostrich Generation". People need to look around and take stock of what they need to do; they can no longer rely on the state or their employers to provide for them. It's all part of taking resposibility for yourself.

The ING survey also reveals that 48% of non-planners associate retirement with financial hardship. While 23% of planners say this is a concern. Peace of mind is a side effect of proper retirement planning

Debit Cards Vs. Credit Cards - How do They Compare?

Image by MoneyBlogNewz via FlickrGetting and staying out of debt requires you to stop using your credit cards. You are so determined to avoid credit card debt, you have cut up your credit cards and have gone to exclusively using a debit card instead. You feel good about not using the credit card anymore. All is well.

But wait are there any downsides to using your debit card as your exclusive plastic? It's time to find out what's the difference between a credit card and a debit card.

Lets say your debit card number is used for some fraudulent transactions. A bad guy buys himself a nice new Rolex with your debit card number. This transaction wipes out your bank account. Your checks bounce because there isn't enough money in your checking account. By the time you find out about the illegal charges your money is gone, you have over draft fees, your bills have late fees now because the checks bounced, and your money is gone.

What can you do about all this. Does your bank take off these extra charges.? Will they put your money back into your account? How long will all this take for your account to be put back in order? What are the responsibilities of the bank? Whats the time frame for the money being put back?

Here are a few Debit card facts:

•  With a credit card, your maximum liability guaranteed under federal law in case of fraud or errors is limited to $50 if you notify the card issuer within 60 days after the statement listing the transaction is mailed. With a debit card, the $50 liability limit expires two days after the fraud, and then your liability goes up to $500. And you don't necessarily have protection against errors.
• Banks' "zero liability" promises are voluntary and squishy; they're not the law and they're not immediate.
• If you use a debit card and a fraudulent charge or a billing error causes other payments to bounce (like your mortgage or cell phone payment), you will be hit with hefty overdraft fees and will probably have difficulty getting the fees refunded.
• Credit cards offer protection under the federal Fair Credit Billing Act, meaning you can refuse to pay for products or services that you didn't get or are defective. There's no such protection with a debit card.
• Debit card authorizations can tie up your money. A merchant such as a gas station or hotel may put a three-day hold on more money than you're spending. You won't be able to use that money until the hold ends. That could cause other payments to bounce even though you have enough money in your account.
• If you buy something with a credit card and the merchant makes a mistake, say by billing you twice, the bank will fix it.
• With a debit card, however, banks are really sketchy about what protection they offer if the merchant goofs. You're protected against "unauthorized use," but many banks don't consider errors to be "unauthorized use." They say because you authorized the merchant to debit your checking account, the matter is a "billing dispute" that you need to work out with the merchant.
• If you do have a problem with a credit card transaction, you don't have to pay the amount in dispute while it's being investigated. With a debit card, the money is already gone.

If money is stolen from your checking account by the use a stolen debit card number it can take up to 2 weeks to be put back. This is frustrating for the consumer and this would not happen with a credit card.

But if it is your choice to use a debit card and not a credit card. To be on the safe side it's not smart to have a debit card linked with an account that has a lot of money in it. Or get just an ATM card with no charge card features.

Memorial Day - The Day We Remember Our Fallen Soldiers

Image via Wikipedia

Today, Memorial Day, we take time to remember the soldiers that gave the ultimate sacrifice in American wars. Millions of families will gather together to eat a meal and spend some time together. Yet many families will have an empty chair at their table because their loved one sacrificed for our country. We can 't ever forget these men and women who left friends and family behind and never returned. Let's also keep in our hearts and prayers the families that must go on in anguish because of their loss.


Here are 10 facts about the last Monday in May.

10. Memorial Day was originally known as Decoration Day.

9. It was first widely observed on May 30, 1868.

8. Originally, the day was to honor soldiers killed in the Civil War.

7. After World War I, people began to observe and honor those who were killed in all of America's wars.

6. The day was declared a national holiday by Congress in 1971.

5. The birthplace of Memorial Day is Waterloo, New York. The town first celebrated the day on May 5, 1866, by closing businesses, and residents decorated soldiers' graves with flowers.

4. Waterloo was declared Memorial Day's birthplace by President Lyndon Johnson.

3. About 5,000 people attend the Memorial Day ceremony every year at Arlington National Cemetery.

2. Some southern states set aside a special day for honoring the Confederate dead. It's known as (surprise) Confederate Memorial Day.

1. On Memorial Day, a wreath is typically laid at the Tomb of the Unknown Soldier by the president or vice president.


A video tribute to the fallen heroes:

Today we will be enjoying the freedom that has been paid for in the blood of our fallen sons and daughters. Let's remember them today and everyday.

A Flood Of Financial Risk For Homeowners

A guest post by Mike Bowman of TheQuarterRoll.com

When you review your monthly budget you may be putting money aside for items such as groceries, rent, clothing, and your gym membership, but have you ever listed flood damage on your budget? According to a spring 2010 edition of the Western Pennsylvania AAA Motorist magazine, flooding is the most prevalent natural disaster and you are 3 times more likely to be affected by flooding then fire. We certainly hear about the overwhelming flooding troubles in Tennessee, Kentucky, and Mississippi, but flooding comes in all sorts of intensities.

Except for vehicles with "comprehensive" insurance in their policy, flood damage is not part of any typical insurance coverage, and everyone is at some level of risk of financial loss due to flood damage. You can be the most financially conservative person, but one flash flood could severely harm you, financially speaking, when you consider that the average flood damage claim is $33,000.00. Most people will not have that much money set aside, even before a natural disaster hits. Also, nearly all disaster relief money is considered a loan and must be paid back to the issuing authority. Flood insurance, purchased through the National Flood Insurance Program is one of the best ways to insure yourself against the financial risk that flooding presents.

Why should you be concerned about flooding? Here are facts found from FEMA's and the CDC's websites:

-Only flood insurance will cover flood damage.

-25% of all flooding claims come from moderate to low risk areas.

-You do not need to be next to a body of water for flooding to occur on your property.

-Melting snow / poor drainage / deteriorating natural or man-made barriers are just a few of the least expected sources of flooding.

-All 50 states have been affected by flooding.

-While risks vary, we all live in a flood zone, according to www.FloodSmart.gov.


Considering buying flood insurance? Keep an eye on what is going on with this program. Flood insurance is issued by the National Flood Insurance Program and funding must be approved by Congress. Currently, funding for the National Flood Insurance Program is scheduled to stop in September 2011.

From the Insurance Information Institute

In the absence of any legislative agreement between the House and the Senate on funding the program for the long term, the NFIP was reauthorized for short periods of time under a series of continuing resolutions that extended funding for many different programs. After allowing the program to lapse four times, during which new policies could not be issued, leaving homeowners without the option of buying coverage and delaying thousands of real estate closing per day in flood-prone regions, in September 2010, as the last extension was close to its expiration date, both the House and the Senate extended the program for one year to September 30, 2011. Insurers hope that during this longer extension period Congress will take time to make significant and long-term changes in the program. http://www.iii.org/issues_updates/flood-insurance.html

About The Quarter Roll

Mike Bowman writes for TheQuarterRoll.com, whose website and magazine help readers get a quarter more for every dollar by providing personal finance tips, advice, and stories in an easy to understand and entertaining format. The tips and stories found in TheQuarterRoll.com are designed to give readers the ability to earn more, save more, and get more value for their money.

What Are The Different Types Of Mortgage Loans

Image via WikipediaIf your about to make a home purchase, the biggest factor in the process is finding financing. There are a large number of possible choices in the financial market today. You need to know as a consumer what they are and how they work. So you can find the best possible loan for your circumstances.

Basic Home Mortgage.

The most popular home financing option is the fixed rate mortgage. Nearly 70 percent of people chose this type of loan. Why people like this type of loan is that it is stable. Every month you make the same payment. It never changes. Also the interest rate will never change, it will always remain the same.

Adjustable Rate Mortgages.

Adjustable rate mortgages are a popular choice among home buyers. Their interest rate is tied to an index that change according to prevailing market rates. The intervals are specified in the mortgage documents and the interval of adjustment can be anywhere from one year to seven years. When the adjustment time arrives, according to the prevailing market rate, your payment will rise or fall. This doesn't happen once, it happens again when the interval comes around again.

Government Guaranteed Mortgage Loans.

The FHA loan is a fixed rate mortgage that is designed for the first time home buyer of moderate or low income. Guaranteed by the Federal Housing Administration, these loans can be easier to qualify for than a traditional FRM and allow a smaller down payment than most other home loans, generally about 3 percent. Interest rate are usually lower than standard fixed rate loans, and programs are available for the purchase of single family homes or multi family ones, as long as they are to be owner occupied.

Veterans Administration Loans(VA).

VA loans are another government guaranteed mortgage. To be eligible for a VA loan, one must have a history of active military service or be the surviving spouse of an active service member. Often, a veteran can obtain a VA loan with little or no down payment, but must demonstrate the ability to make monthly payments.

USDA Rural Development Guaranteed Housing Loan.

The USDA Rural Development Guaranteed Housing Loan is another government guaranteed home loan option. This type of home mortgage loan is provided to low and moderate income individuals who are purchasing a home in an area designated as a Rural Development eligible area. No down payment or mortgage insurance is required with this loan program, and qualification can be much easier than your average home loan, allowing consumers with less than perfect credit to obtain financing for home purchases.

Option ARMs

Also referred to as flexible payment ARMs, Option adjustable rate loans have an interest rate that adjusts every month with no adjustment caps. These loans allow borrowers to make very low mortgage payments initially, but these monthly payments will rise over time, often quite steeply.

Balloon Mortgages

Balloon mortgages are structured with a payment schedule similar to that of a thirty year fixed rate loan, although the term of the balloon loan is shorter, most often spanning five to seven years. At the end of the loan term, the outstanding balance must be paid in one lump sum, either out of pocket or by refinancing the home.

Interest Only Mortgages

Interest only mortgages are loans that allow the borrower to pay only the interest on the loan for a predetermined period of time. The principle of the loan is not paid down during this period at all, leaving the homeowner a lower monthly payment to meet over the short term. However, once this initial interest only period expires the payments increase to include repayment of the principle and are steeper than a standard loan, as the principle must be paid over a shorter time period. The longer the interest only period, the higher the payments will rise after its expiration.

Biweekly Mortgages

Biweekly mortgages are loans in which the borrower makes payments every two weeks instead of the typical monthly payment arrangement. The result of this practice is a slightly shorter repayment term. Paying biweekly results in 26 payments a year, which is equivalent to thirteen monthly payments, rather than the twelve payments made with a standard monthly mortgage payment.

Bimonthly Mortgages

Bimonthly mortgage plans do not require any extra payments, but save slightly on interest by advancing the payment by half the month. On average, these types of arrangements only shorten the loan term by approximately one month on a thirty year mortgage.

While each option may prove itself best for a segment of loan seeking consumers, none will be a perfect fit for everyone. Depending upon personal finances, the length of time one intends to reside in the home to be purchased, and many other factors, the perfect home loan option will vary widely from one consumer to another.

Big Bird Wants To Teach Your Children About Money

Image by LR_PTY via FlickrBecause of our current economic climate, financial literacy, or lack of it, is in the forefront. Teaching of these vital skills have been put on the back burner at many schools. Researchers and educators think it's time to bring financial education back to the schools and even to the very youngest of children. Even without a basic organized education, children are being educated by their parents whenever Mom and Dad use a credit card or use an ATM. Through observation of their parents behaviors in life, children are learning behaviors, both good and bad.

There is a lack of educational materials to help teachers in the classroom. To combat this lack of educational materials for children to use to learn about money, Sesame Workshop has started a program called "For Me, for You, for Later: First Steps to Spending, Sharing, and Saving". With a 100 million dollar program, over a ten year period, Sesame Workshop has developed a learning experience for children. This program is being paid for by PNC Bank.

All this is happening at sesamestreet.org/save and pncgrowupgreat.com. Also more video content is available at Itunes and Amazon.com VOD. The titles to search for are called "Learn Along with Sesame".

At Sesamestreet.org/save there is a large amount of teaching materials amount money lessons. There are games to play, videos to watch, and printable items for fun and learning. All the Sesame characters are used in the videos to teach about money and the proper ways to use your money.
What's Being Taught?

The foundational teaching is concerned with showing the children to properly use their personal money. They are taught that you divide your money up three ways. In three separate piggy bank jars you label each jar "Saving, Giving, and Spending". The saving jar is to teach how you must save for future wants and needs. The Spending jar is for current purchases, and the giving jar is used to help others. In the videos, children are shown with their parents shopping with their spending jar, at the toy store. Also the children use their savings jar to save money to buy a more expensive item, sometime in the future. There are videos showing how the giving jar is used to buy cat food for abandoned cats at a shelter.

These videos are at the perfect level for small children. There are no religious subjects mentioned. Also purchases by a small child is are mainly things a 8 year old would like to buy. All the materials are politically correct and do not step on anyones toes. It's nice to see how basic moral values could be taught without bringing in any specific religion.

The website has many things to explore. Your child's favorite characters like the Count, Elmo, Cookie Monster, and others also appear. There is a mobile site if needed. Also there are parent-educator materials to help in implementing the great content. Also on the site are more links to Sesame Streets interesting educational websites.

I liked the idea of using Sesame Streets well known characters to teach a basic foundation on money. The three jar system is a great stepping stone to more mature teachings in the future. I was surprised at the section on the teaching of "Giving". That was the hook that got me interested in the program. They could of just of taught about saving and spending, but the giving part, helps you teach on being unselfish. A hard concept for to teach a 5 year old.