Safe Smart Phone Banking

Smart phones allow you access to your bank account at any time, which is very convenient for our modern busy lifestyles. It is, however, crucial to make sure that no one else can obtain your personal information. Account update options via text message are low risk because they contain limited information and no access to your account. 

Banks provide money management apps and some banks provide options to log into their internet banking site from a smart phone. Smart phone banking is relatively safe providing that security precautions are taken. Phones which provide simultaneous multi-app access such as the iPhone4 carry the greatest risk, because they provide more opportunity for malicious software to be running at the same time undetected.

Banks make their apps safer by using a secure data centre so that bank details are not stored on your phone. Anti-virus software is recommended if you use your smart phone for banking regularly. Barclays offer free Mobile Security Software with their banking app, which protects against virus or Trojan attack. Most UK banks refund losses to victims of mobile fraud as long as reasonable care has been taken.

Contact your network provider as soon as possible if your mobile phone is lost or stolen so that they can block it. Keeping your log in details secure will make it difficult for anyone to access your bank account.

Smart phone banking online will be more secure if apps are downloaded directly from your bank along with any security software the bank provides. Quality security software often includes a remote deletion option which deletes any data stored on the phone if the phone has been lost or stolen. Use a PIN or password to lock your phone when it’s not in use. Ensure that your phone’s browser doesn’t automatically input passwords and usernames. Switch off your mobile Bluetooth when it’s not in use. Avoid logging into your bank account from public networks. Don’t modify your iPhone to permit the installation of unofficial apps that haven’t been provider approved as this takes away some security features. Delete bank text messages when they are no longer required. Banks don’t ask for passwords or log in details via email. Be suspicious of any such email.

Keeping informed and following good advice will help us to be safe smart phone users.

Making a Budget… and Beating It!

A lot of people who do not earn great amounts of money know what it is like to calculate every buck they spend. Of course, the best way to make sure their finances are balanced at the end of every month is to make a budget. First, they have to plan for their common, fixed expenses such as their apartment rent or their car payment. In order just to do that, they must put the same amount of money aside month after month in order to meet these unavoidable expenses whose cost do not change over time. But then come what I call the variable or elastic expenses: it is in this column that people can contrive to yield some unspent money and invest it elsewhere.

Examples of elastic household expenses

Variable or elastic household expenses can represent a significant proportion of a given family’s budget. It is indeed not unimaginable that this kind of expenses can make up half, if not more of many households’ budget. If I had to explain in very simple terms what these variable expenses actually are, I would put it that way: variable or elastic household expenses are those expenses which do not cost the same amount of money month after month and for which cheaper or more expensive alternatives actually exist.

Food, for instance, is a variable expense. Although buying food is unavoidable, groceries actually do not cost you the exact same amount of money from one month to another. Buying different kinds of foods in order to squeeze some extra bucks is possible: you could indeed decide to buy the kind of meat that is on sale instead of going for another one that costs more. Making your own lunch instead of eating at a fast food restaurant is another choice you could make and that could save you money.

But food is not the only elastic household expense that exists. Gas, for instance, can also be considered a variable expense, especially if you live in an area where transportation means other than your own car are available. Of course, you can opt for a cheaper or for a more costly option at the pump when filling your gas tank. Yet, I consider gas to be an elastic expense because you could also opt for carpooling, for biking or for public transit when these cheaper options are realistic, adapted to your needs and available.

Entertainment, clothing, home energy, gifts, and the likes also are variable expenses. Since this kind of expenses is likely to be the only place where saving money is possible, this is where you ought to concentrate your efforts if you want to save money. I can already hear you say: “But I have planned some monthly savings in my budget and I have already allowed as little money as possible for food, clothing, entertainment, etc.” This is fine if you want to balance your budget exactly the way you planned it. But if your goal is to yield some extra savings – in order to invest that money elsewhere – you ought to consider the cheapest alternatives that are available when spending money for elastic expenses.

How can this be profitable?

By beating your budget and saving a little more money here and there, you can end up yielding even greater amounts of extra money in the long run. Indeed, if you already are investing in mutual funds, for instance, or in other financing strategies towards your retirement by budgeting a fixed amount of money every month, investing the extra money you save by squeezing your elastic expenses could be profitable in the long run if you invest it in your old days too.

Beating your planned elastic household expenses could also be profitable if you used that extra money in order to pay off your personal debt. Whether it is by redirecting that money towards your mortgage or towards your car loan, you could reduce your total interest costs significantly if you made periodic lump-sum payments, which most financial institutions allow. You could also think of using your budget surplus to pay off credit card debt – in you have any – since it is often considered the worst kind of debt to have due to the skyrocketing interest rates that credit cards carry.

And of course, you could even think of reinvesting your elastic expenses monthly savings in a personal project such as a trip, a new computer or any other thing that is important to you. After all, your efforts to beat a budget that is already tight should be rewarded. Now, it is for you to decide how you want to benefit from your efforts. It could be immediately, by purchasing a new espresso machine or it could be more long-term oriented, by saving for your retirement or by amortizing your mortgage on a shorter period. In both cases, however, the benefits of being thrifty when it comes to your elastic household expenses are quite blatant and inviting and yet, they will only come at the expense of sustained efforts to beat your budget.

About the author: Alexandre Duval is a blogger for Standard Life, a company that offers a wide range of financial products and services.

Summer Getaway? How to Protect Your Home Before You Leave

According to the Bureau of Justice Statistics, every 15 seconds a home in America is burglarized. The Bureau also tells us a burglar can break into a typical home in just 60 seconds. Information like this is disheartening. Especially for those who are looking to travel and leave their home this summer. So, how do you depart for your planned getaway with great peace of mind? These tips will help deter burglars and keep your home safe.

Replace Old Locks

Home locks don't always operate correctly or are poorly constructed. Professional burglars can drill or pick these old-fashion locks in just seconds. That’s why it makes sense to install a new high-security lock that will do the job. According to Consumer Reports, the Weslock 671 and Emteck Low Profile 8455 prove to be the best keyed locks on the market. They are both under $50.00. Medeco sells a high-security lock that is burglar proof and is around $175.00. It’s a great solution with very little investment of time or funds. Install locks on your own or hire a locksmith.

Your Neighbors are Your Allies

The National Sheriffs' Association has created a website that can help you develop a strong home watch plan with your neighbors. This can be your greatest asset. Create a plan and follow through with it.

Let neighbors know what to expect while you are away. Is your daughter dropping by? Will any vehicles visit the home? Give them your time frame and a phone number where you can be reached in case of a home emergency. Return the favor when they are away.

Invest in a Security System

The peace of mind that a home security system can provide clearly outweighs its cost, providing backup assistance for the times when you're unable to defend your property on your own. There are nearly 5,000 home security providers available, according to Securitycompanies.com. With features like video surveillance, remote usage and motion sensors, there's an option to suit the needs of every home owner. 

Bright is Better

Light up your home. Illuminate different areas while you are out of town. Key areas are doorways, windows and any spots that are hidden from public view. Purchase motion lights that alert neighbors to be on the watch if something suspicious is taking place.

Save money while protecting your home. Buy easy to install energy saving light bulbs. Light is a huge deterrent to a burglar and can easily help protect the place you love. The brighter the better.

Keep it Quiet

Use technology wisely. Social media makes communicating easier than any other time in history. But one downfall is simply that sometimes information can fall into the wrong ears. While it is normal to want to share your excitement and timeline for your upcoming travels, be careful with whom and how you share this important information.

Wait to share pictures of your exciting adventures on social media sites. Do this once you are home. Never give exact dates of your vacation to other people unless needed. Be sure to stop your mail and newspaper so people driving by aren’t alerted to your absence. Think through what you say and what you do so you know your home is safe and sound.

The Advantages of Buying From a Reputed Gold Dealer

It is an accepted fact that the value of the currency can vacillate even under a robust economy. At times, such value may become so low that the total valuation of the investment may become negligible. On the contrary, the value of precious metals such as gold and silver remain steady even at times of national emergency. That is why people have started investing more in metals such as gold or silver than in currency. 

However, to get proper return on the investment, one needs to invest wisely. Unfortunately, very few are aware of the practical details of such investments. 

In such cases, one should always transact the businesses through a reputed gold dealer. They not only help to acquire gold, but if the investor decides to sell it, they also take to upon themselves to find a buyer. Moreover, more reputed dealers also offer proper advices in case one is interested in that. 

There may be many dealers of gold but an investor should learn be cautious about their selection. While we do not mean to say that lesser known dealers are all fraud, it is always wiser to move through reputed names. There are plenty of advantages in working with them. 

Firstly, they can be trusted to offer quality gold. Indeed, to keep their goodwill intact, they will never resort to cheating. 

Secondly, one can expect them to quote the exact price. Most customers are unaware of the exact price of gold. As has been already pointed out, reputed dealers can be trusted to work with full ethics and they will certainly not cheat their customers. Thirdly, even in the time of shortage, established dealers will surely have enough stock to carry on their business. 

Anyone looking to buy gold, there are plenty of options. However, for investment purpose, it is always better to opt for bullion gold. They may cost a little more; but since they are guaranteed by sovereign governments worldwide, one can be sure of their quality. Another important point is that one must keep his/her brain cool while purchasing gold. Some dealers often try to cajole their clients into buying gold immediately; one should never succumb to such pressure. It is important to realize that such dealers may have some ulterior motive behind such persuasion. 

Other than gold, silver is another precious metal one can always consider investing. Here too, moving through a renowned silver dealer is the best step forward. Moreover, dealing in silver is tougher than dealing in gold. For example, the value of old silver coin is ascertained on the quantity of silver present. In such a case, making proper valuation is virtually impossible for an amateur. Experienced names can be trusted to do the job in an ethical way and guide the customer properly on such matters. 

The bullion silver coins are another area of discord. Determining their price is not easy because along with the price of silver, one also has to pay the price of bullion. Besides, being aware of the current price of silver is also not very easy. 

That is because price of silver in the international markets varies from time to time. Here too, experienced firms can be trusted to guide their customers ethically. 

A serious investor in gold or silver must have heard about gold information kit. Many reputed firms offer them free. These kits include all the issues one must be aware of while purchasing these precious metals. 

The kits also offer information on the benefits and opportunities such investments can generate. However, some of these firms may have issues on the minimum quantity one may have to buy; but in reality, there is no hard fast rule and it is definitely adjustable. They even provide options for online purchases. They will provide shipping options but whether it is free or not depends upon the policies of that individual dealer. The purchase volume and shipping destination have a say in such matters.

What is a Reverse Mortgage?

You heard the term reverse mortgage but do you really know what it is? A reverse mortgage is just an equity loan secured by your home, which is designed to defer mortgage interest. 

In 1989, the Federal Housing Administration created a product called the Home Equity Conversion Mortgage(HECM). This was the beginning of reverse mortgages. Rules and regulations from the U.S. Department of Housing and Urban Development(HUD) insure lenders follow strict rules and regulations. FHA and HUD reverse mortgages protect consumers and help you to search for FHA approved lenders.

With a regular mortgage, the homeowner makes monthly payments over a specific period of time, usually 30 years. With a reverse mortgage the interest is not due till the loan reaches maturity. As the homeowner, your responsibility is to reside in the home while paying the property taxes and insurance. You never make a payment on the money you have borrowed. 

You still own your home

You may still reside in your home during the term as long as you continue to pay taxes and insurance. Every month you will receive a monthly statement which will outline all interest charges and balance information. What you won't find on the statement is a coupon to make a payment, because none is due.

What are the qualifications?

If you are a U.S. citizen and a permanent resident, are 62 years or older, and have substantial equity in your home, you qualify. The loan amount you qualify for depends on your age, interest rates, and the homes value. There are no income requirements or credit scores involved. All you have to do is continue to live in the loan.

Do I Have the Option to Pay the Loan Back?

If you want you can make voluntary repayments of the interest in full or in part you can, without penalty. Plus, the interest you pay is deductible just like with a regular mortgage. You also can pay off the entire loan at any time with cash, by refinancing or by selling the home. 

How is the Loan Repaid?

The reverse mortgage is not due until the owner passes away or the property is not occupied. Upon passing away the heirs have time to sell the house or refinance it to pay back the balance of the loan. Usually you have up to a year to do this. If your heirs do not act, the reverse mortgage lender moves to foreclose on the property. If the sale of the property does not provide ample funds to satisfy the reverse mortgage, the mortgage insurance fund will make up the difference. Paying for this insurance is part of the costs of a reverse mortgage.

Pros

• You can stay in your home and not worry about making mortgage payments.
• You have money to live on and spend on retirement activities.
• Cash you receive from the mortgage is not considered income and not taxable.

Cons

• Reverse mortgages are not for living in your home for a short, to be financially feasible you need to stay in your home for an extended period of years.
• You still are responsible for taxes and insurance, these may not be affordable on a retirement budget.
• Fees and insurance, depending on the state you reside can be high. Check before you proceed with a reverse mortgage.
• Cash proceeds can impact eligibility for those receiving "needs" based state and local assistance.

As with any financial product involving large amounts of money and contracts it benefits you to seek out a reputable lenders. You should compare offers from multiple banks and brokers. Remember all reverse mortgages carry the same protections and laws established by the FHA. There is only one HECM so make sure you don't pay extra fees and gotchas.

Source: ALLRMC.COM "Reverse Mortgages Explained in Plain English"

Baby Boomers and Their Effect on how Others Retire

Between 1945 and 1964, there were 76 million children born in the US, a temporary increase which has become known as the Baby Boomer generation. 

Freed from the tight restrictions of World War II that their parents had to endure, Baby Boomers are the first generation who were able to fully embrace the freedom of the modern world. 

However as many reach retirement, once again they are breaking the mold and creating a whole new set of rules and way of life. 

We take a look at the Baby Boomer generation who are nearing the end of their working life and how their choices are influencing others around them. 

An image showing the years covered by the various identified generations

Redefining a lifestyle 

When it comes to retirement, many people may envisage a quieter life but Baby Boomers are not yet ready to eschew their rebellious streak.

Very different to generation who have gone before, these 60-somethings are much fitter, still able to run marathons and enjoy exotic holidays filled with activities. A sedate pace of life filled with a spot of gardening and hours in front of daytime TV simply isn't for them. 

With a different mentality and still brimming over with a zest for life, many are opting to deliberately avoid the traditional retirement complexes which have sprung up. Although moving remains one of the top priorities for Baby Boomers, like many who have retired before them, they are choosing to move to urban areas where there are plenty of cultural and diverse activities to enjoy, where a buzzing social life can still be found. 

Working life

Another aspect which is worth considering is the age of retirement: many Baby Boomers are opting to continue working beyond the basic retirement age. Even those who leave their old employer go on to find an alternative job, either setting up their own business or getting something with fewer hours.

 "Many employees are working well into their 70’s and even 80’s "

This leaves employers with a real dilemma; continuing to pay experienced staff a higher rate of pay may not have been in their business plan but failing to extend their contract could leave them open to either set up in direct competition in their own business or going to a rival firm. 

Although many retirees are choosing to work for themselves, finally having the freedom to set up their own business doing something they are passionate about, many are taking part-time jobs. 

Whether they opt to stay in their previous role or take a part-time job, there is a negative impact on the rest of the labor force. Youngsters have fewer opportunities to find work as companies are not recruiting to fill the vacancy whilst topping up pocket money with part-time work is much harder. For those already on the career ladder, the opportunity to move up takes far longer with senior members of staff remaining in their position for much longer than expected. 

Financial restrictions

However, whilst the Baby Boomer generation may seem to have it all at first glance, in some ways they have it far harder than their parents and grandparents, at least financially.

For many, their planned nest egg has not come to fruition, especially with the crashes in the stock market, leaving them with substantially less than they thought they would have.

A survey recently carried out by TD Ameritrade showed that a typical Baby Boomer will find their nest egg around $500,000 lower than what they need in order to be able to retire without a worry. Out of the participants, 13% said they would like to be able to fully retire but had financial commitments which meant they were forced to continue working at present.

Downsizing in the property market remains a possibility for some to raise cash, and with the price of real estate finally starting to rise again after the sub-prime mortgage crash of 2008, equity in property is once more starting to emerge. However, those who find they can't scrape together enough dollars to lead a comfortable lifestyle are moving in with their families.

The desire to move home once retirement is reached certainly has an impact on the housing market, with a boom created every time there is a surge of retirees.

Conclusion

The Baby Boomer generation is the first of its kind in many ways. Forging new paths after the hardship faced by their parents, they are creating a whole new lifestyle and showing future retirees that stopping work doesn't have to mean knitting and blue rinses.

About the author: Sarah Lynch, Mercer and Hole consultant helping personal finance advisers and accountant in St Albans and Milton Keynes to satisfy their clients needs.