One thing that always worried me was changing my address at the post office because I wasn’t sure if they’d get everything right. When you fill out a paper form, someone has to key that back into the system… and hopefully they don’t fat finger it. Well now the USPS has an online change of address form. The best part is that you still get all those coupons (I remember doing this a bunch to get a Lowes 10% coupon!) that were in the booklet, plus you avoid a trip to the post office.

There’s a $1 fee, just like the hold mail service, but I think it’s worth it.

USPS Online Change of Address Form from personal finance blog Bargaineering.com.

Sometimes, the cheapest option can be to buy used. When I bought a car my freshman year, I spent about $3,000 for a used Mercury Topaz. It was a five-speed (I learned to drive stick on an old Festiva), and it got great gas mileage. My car was cheap to own, and it didn’t need a lot of repairs. It was a great option for me. However, not everyone is willing to go through the used car lots in an effort to find a good deal. Here are some ideas for cheap cars from Forbes and CNN Money, with my thoughts thrown in. You just might find something that makes sense for the student in your life:

1. Ford Focus: I know a lot of students that drive this car. A new Focus can cost around $16,500 for a base model. However, if you’re willing to get something that is a few years older, you can cut that cost down to $6,000 or $7,000 for a used car. The latest Focus gets around 26 MPG city, and 36 highway. It’s a great car that can be serviced almost anywhere, and it’s usually relatively inexpensive to fix.
2. Nissan Versa: With a base MSRP of $11,770, this car, new, isn’t a bad bet. It offers a decent-sized back seat for your student’s friends, although strage space is somewhat limited. The Versa gets an estimated 27 MPG in the city and 36 on the highway. Of course, you can find it cheaper used.
3. Kia Soul: One of the great things about the Kia Soul, for many, is its SUV look. It has a little more storage space, and can be more comfortable for road trips. Additionally, many are surprised at the 27 MPG city and 35 MPG highway that the Kia Soul gets. You can get a new Soul for $14,650, but its high depreciation rate means that you can find used cars for less.
4. Fiat 500: If your student doesn’t mind something small, the Fiat 500, with its 38 MPG on the highway, can be a great gas saver. Even city driving results in 30 MPG. Not bad at all. The cost is a little higher for a new car: $15,500. However, it’s not horrible, and you might be able to find an older used Fiat that still gets decent gas mileage for less.
5. Chevrolet Cruze: There’s adequate trunk space for most college students in this car. It gets 26 MPG in the city, and 36 MPG on the highway. It starts at $16,525, but its draw for parents is the peace of mind: You can make sure your child gets roadside help with OnStar.
6. Hyundai Elantra: This car is reasonably roomy, and starts with a MSRP of $15,195. You can get 40 MPG on the highway, leading to substantial gas savings. And, since the depreciation is fairly large, it’s possible to get used versions for good deals.
7. Ford F-150: A truck probably had to be included on this list. You can start with $12,565 for a new F-150. But it’s possible to find a reliable used truck for less. The hauling capability is a draw for many, and the F-150 has tested well for safety for years. Plus, it’s a common truck so it’s easy to service. Gas can be spendy, though, with 16 MPG city and 21 highway.

(Photo: CC-BY-CarImages)

7 Best Cars for College Students from personal finance blog Bargaineering.com.

The Consumer Financial Protection Bureau is set to unveil some rules for prepaid products and is currently holding a hearing in Durham, North Carolina to discuss some of these changes. It’s said that the new rules wouldn’t involve controlling the fees, as one would expect, but institute similar credit protections that customers get on credit cards. For example, companies would have to reimburse customers for unauthorized charges and do better with security.

Why the scrutiny? Prepaid cards are exempt from the Durbin amendment, which put caps on merchant fees, and were overlooked by Dodd-Frank. As you can imagine, banks were pushing these more given less regulation.

I’d like to see some limits on fees. A lot of folks use prepaid debit cards because they’re part of the unbanked or they are low income. The fees may nominally look small, a few bucks here or there, but they’re enormous on a percentage basis.

CFPB Introducing New Prepaid Debit Card Rules from personal finance blog Bargaineering.com.

Looking back, I had no idea the underwriters were pimping out shares to their clients. I had no idea NASDAQ was having trouble processing orders. All the chaos that’s coming out in the news now was not known in real time, certainly not as well known anyway. I knew that things were not going in an orderly fashion and that almost always spells trouble.

Here are five lessons I learned from the Facebook IPO:

Beware Exuberance

I know the stock market is separated into two groups – institutional investors and retail investors. I know that retail investors, like myself, are the fish. I know that brokers cater to institutional investors because they handle vast sums of money. Do you want to answer to one boss that pays you $1,000,000 a year or 1000 bosses that pay you $1,000 a year? Easy answer.

Just this week, there was news that Morgan Stanley cut its revenue forecasts for Facebook a few days before the IPO. Who did they tell? Perhaps a few select clients… (a deeper look at this issue)

The number one thing that I learned from the economic crisis, and subsequently the Facebook IPO, is that one of the worst times to buy anything is when everyone is excited and positive. If you invested when the economic future looked bleaker, you did well as the market recovered. Too many people were too excited about the Facebook IPO and that worried me.

You Won’t Get Rich

When you look at the roulette table, do you think that’s your pathway to riches? Not “make a few extra dollars today” rich, I mean life changing rich. Probably not. So why would you look at any stock IPO as a pathway to that type of money? The only people making a lot off the stock IPO are those folks who were granted shares because they work at the company. Stories of administrative assistants at Microsoft and Google buying Ferraris are plentiful, but there were no stories of millionaire IPO participants after day one. It might be possible at day 1000, but certainly not day one.

Unless you work at the company or otherwise got shares before the IPO, like this brilliant painter, it’s not going to make you rich.

If you aren’t doing it for the quick hit of cash, and you’re buying it for the long haul, it’s best to wait. Wait until there are official SEC filings for a few quarters so things can shake themselves out. Wait until options can be traded, so the shorts can get in if they want to, or wait until the next slug of shares exit lockup. There are so many variables, outside of a company’s fundamentals, that have yet to be introduced… it’s dangerous to buy so early in the game. It’s like playing a sport where the rules change each inning/quarter/period.

You Shouldn’t Need to “Sell” an IPO

For all the horror stories you hear about boiler rooms, I’ve never met anyone who was offered shares by his broker… until this weekend. Granted, I know more working stiffs than jet set bazillionaires, but it’s still a telling fact. One of my friends got a call from his broker asking him if he wanted some Facebook shares. He did but since he worked at another brokerage, in a non-trading role, he was ineligible. While I’ve only heard one such story, there are plenty similar ones all over the place as underwriters scrambled to sell the shares they were allotted. Apparently, in the 11th hour, brokers were given more shares and had trouble getting them out.

When was the last time you heard anyone get a call from his or her broker about an IPO? Never! It’s always the other way. An IPO is supposed to be a gift that a broker gives to a client. It’s like being outside a nightclub and getting paid to go in… do you really want to be part of a party like that?

Do You Understand It?

How many people truly understand Facebook’s business model? Do you know how it makes money? You might point to the advertisements, and you’d be right, but the key is understanding how they can add revenue streams because the IPO price valued the company at a ridiculous multiple over their current income. When this happens, it means that people are either stupid and overpaying for a stock or they think the company is a growth story and can add additional streams of income.

I’m involved in the web and while I understand how it makes money now, I don’t know what they can do to justify such a high multiple. I know they have trouble monetizing mobile, which is where a lot of the traffic comes from, and that uncertainty, in my mind, makes it unattractive. I understand Facebook about as well as I understand Apple and Apple has a far far far lower multiple. And their products are tangible and in everyone’s pocket.

Missing Money Trains is OK

I think the big reason why so many people get involved in these big story stocks is because they don’t want to miss the money train. People are talking non-stop about the Facebook IPO. Unfortunately, they’re talking about how NASDAQ bungled up orders, how the underwriters mis-priced the stock and juiced up the supply, and how there might be class action lawsuits as the stock continues to drop. Flip it back a few years to when Google IPO’d in 2004 (it’s been nearly 8 years!) with a weird auction system – the stories after that were glowing. How many people missed Google and now didn’t want to miss Facebook? The answer is more than one.

It’s OK to miss the money train. It seems like every time I look up a stock ticker, there’s some big news the next day. I can wonder all I want about the “what ifs” but if I bought shares of every ticker I looked up, I’d be in bad shape. The key is to pick your spots deliberately and not trying to hit the home run.

Did you buy any shares? Did you avoid it? Did you learn anything by watching what happened the last few days?

5 Lessons I Learned from the Facebook IPO from personal finance blog Bargaineering.com.

We’ll take a look at the income tax situation as it stands now and what will be changing once the bill is signed. Please let me know if I get anything wrong and I’ll fix it as soon as possible. If you just want to know the difference, basically if you make more than $100,000 (or are married filing jointly and make more than $150,000), your tax liability will go up.

2011 Maryland State Income Tax Brackets

Maryland has a lot of income tax brackets. There are six Federal income tax brackets, Maryland has seven. Seeing how they’re set up now will help you, and me, understand how the brackets are changing.

Single, married filing separately, dependent taxpayers or fiduciaries share one grouping, listed only as “single” below. Taxpayers with joint returns, head of household, and qualifying widows/widowers share another group, listed only as “married filing jointly.”

These are just the brackets, don’t use them to figure out taxes because there are a lot of rules regarding exemptions and the like.

Approved Changes for 2012

The 4.75% bracket is wide, spanning $3,000 to $150,000 and the new changes would break that up and expand it upward. Single filers making between $100,001 and $125,000 (joint filers $150,001 and $175,000) would see a 25 basis point increase in their taxes, from 4.75% to 5%. Single filers making $125,001 and $150,000 (joint filers $175,001 and $225,000) would see a 50 basis point increase, from 4.75% to 5.25%.

Expansion of 4.75% bracket:

That also pushes into the higher brackets, which also get an increase in taxes. Single filers who make between $150,001 and $250,000 (joint filers earning between $225,001 and $250,000) would see a 50 basis point increase, from 5% to 5.5%. Finally Anyone making more than $250,000 a year would pay 5.75%, which decreases that bracket from the current one of $500,000.

Here’s what the Maryland brackets would look like for 2013 if approved as described:

In addition to adjustments to the brackets, your exemptions will be reduced if you earn more than $100,000 ($150,000 for joint filers) and completely eliminated if you earned more than $200,000.

If you live in a state and would like to see a similar wrap up of your state’s income taxes, let me know in the comments and I’ll be happy to oblige.

Maryland State Income Tax Increase from personal finance blog Bargaineering.com.

The common rule of thumb is that you can withdraw 4% from your account each year if you expect the money to last indefinitely. This amount is used because it assumes that your investment portfolio will beat inflation and keep growing, and it is considered a conservative estimate. If your investment portfolio manages to return 7% annually, you are “safe” if the inflation rate is 3% annually and you are withdrawing 4%. It’s supposed to even out. (Of course, if your portfolio doesn’t return that each year, then you end up dipping into your capital.)

However, deciding how much you need annually — whether you use the 4% rule of thumb or not — depends on your individual needs. Here are two ways to look at it:

Building a Nest Egg

One of the most popular options is to build a nest egg that is large enough that you can live off the interest. In order to do this, you first need to figure out how much you expect to need during the year. Many people like to say that you are likely to only need 75% to 80% of what you spend now. This assumes that your home is paid off, along with other debt. Personally, I think you should plan for needing at least 100% of what you need now, in order to counter rising health care costs, and the possible expenses associated with travel and hobbies.

Look at your current expenses, including housing, utilities, food, entertainment, and other items. If you want to maintain the same quality of life, it’s a good idea to just assume you’ll spend at the same level (although what you spend your money on could change). If your expenses amount to $45,000 a year, you will need a nest egg that allows you to withdraw at 4% (earning at least 4% interest). You can find that as follows: 45,000 / 0.04 = $1.125 million.

Of course, that doesn’t include the cost of inflation. But, as long as you keep your costs to $45,000 a year, and your portfolio is earning 4% interest, then the money should last indefinitely. If you want to just make sure the money lasts 20 years, and you don’t care about what’s left over, you only need $900,000. Any extra you end up because of interest is just a bonus.

Creating Monthly Cash Flow

Another method is to create monthly income to help pay for your retirement. You still figure up how much you will spend, but you look at it on a monthly basis. In our example, you need $3,750 each month. You can work on building a nest egg that provides part of that, but you can also look for other ways to get that $3,750. Estimate your likely Social Security benefits. You can also build up passive sources of income, such as dividend stocks, web earnings, or some other business, to help you create cash flow. You can still use your nest egg for monthly income, too, but the need for a huge nest egg is smaller if you have cultivated income diversity.

Ultimately, what you need to retire depends on the lifestyle you want to lead, and how long you want to be able to lead it. The more you want to do, and the longer you expect to do it, the more money you need to retire.

(Photo: RambergMediaImages)

How Much Do I Need to Retire? from personal finance blog Bargaineering.com.

I understand the need to keep companies honest in advertising but if you purchased Nutella thinking it wasn’t “candy,” you’re a fool. Look at the nutrition facts on the label – two tbsp as 200 calories and 11g of fat (plus 21g of sugar). Skippy SuperChunk Peanut butter has similar statistics – 190 calories, 19 grams of fat but only 3g of sugar in two tbsp. The real question is how do you define healthy?

As for the settlement, there were two lawsuits – one for plaintiffs in California and one for everyone outside of California. All claims can be made at nutellaclassactionsettlement.com, the difference is in the eligible dates and size of settlement fund.

• Californian: The eligible dates are August 1, 2009 through January 23, 2012, settlement for $550,000.
• Non-Californian: The eligible dates are January 1, 2008 through February 3, 2012, settlement for $2,500,000.

You will need to fill out a claim form by July 5th, 2012. and no proof of purchase is required. Once a judge grants final approval, a hearing is scheduled for July 9th, the funds will be disbursed after fees. You can receive up to $4 per jar that you claim, with a maximum of 5 jars. If there are more claims than the fund can pay out, it’ll be pro-rated.

(Photo: amandacbb)

Nutella Class Action Settlement from personal finance blog Bargaineering.com.

My wife is doing the same thing around the house. She has bookshelves full of books that she hasn’t touched since we were married and finally, she’s getting rid of them. But what is the best way to do it? There are plenty of web companies who would love to be involved in selling your books so who is going to help my wife win the spa day?

College Students

Amazon.com is the winner when it comes getting the most money from your text books but that is, in part, because Amazon isn’t purchasing your book. Think of Amazon as the local consignment shop that will take a portion of your profits in exchange for connecting you with a buyer.

As I’ve learned with my textbooks, Amazon’s cut of the profits is high and now that I’m pretty far removed from college, I’ve noticed that it’s even higher. Plus, you have to take in to account shipping and price of the packing materials. (Make sure you ship books using the postal service’s media mail. It’s slower but cheaper.)

Other Books

If, back in the day, you read the entire Harry Potter series and now want to sell those books, expect it not to be worth your time. If your shelves are full of wildly popular books that everybody wants to unload, that $1.00 (or less) of profit probably isn’t worth the time and effort spent but some books, the books that aren’t as mainstream, may sell for enough to get them out of the house and make a few bucks in the process. My wife has found this to be true of some of her older books that are no longer in print but people still want them.

Other Ways to Sell

I’m not the person who will take the time to list all of my books online, buy shipping materials, pack them, go to the post office, stand in the line, and ship them all for a couple dollars in profit so I prefer to take them to Goodwill or give them to friends. I’ve also found over the years that I can strengthen client relationships by giving them old books based on mutual interests we have. Some libraries will take your old books as well as online book swapping sites.

The Contest

There are still a few weeks left in the contest and neither side is divulging their current totals. I guess a spa day is well worth the time but other than text books that can pull in a nice amount of money, I’m not so much the type to put that kind of work in to something for a few dollars. If you are, good for you. Those few dollars can certainly add up over time.

Where Can I Get the Best Price for my Used Books? from personal finance blog Bargaineering.com.

Why do credit cards offer balance transfers? Credit cards are in a constant battle to get a “share of your wallet.” They want to get into your wallet so that you’ll be more likely to use them when you make purchases, so all the cash back offers and reward programs exist to gain a piece of that share. They earn a percentage off each transaction, so having a large share is crucial to their business.

They have balance transfer offers because they know the longer you have the card, the more likely you are to use it. If you have a balance on your card, they’re playing the odds and thinking that you probably won’t be paying off that balance for a few months. Those are precious months they can sit in your wallet.

Why Balance Transfers Help

The appeal of a balance transfer is that you are essentially getting interest free money. Many balance transfers are 0% for twelve months, which gives you an additional year to pay back that debt. Balance transfers can help you get out of debt if you use them responsibly, but they can also enable your bad habits, at least for another year.

My favorite story about how a balance transfer helped reader involves those 0% financing deals you see in furniture stores. One tricky thing about 0% financing when it comes to furniture (and many other products) is that if you don’t pay off the loan before the 0% financing ends, they will charge you interest on the balance for the entire period. So if you had a 12 month 0% financing offer for a couch and you still had a balance after the 12th month, they immediately tack on 12 months of interest. It’s shady. So a reader used a balance transfer to get herself a few more months to pay off the couch (she had 12, she only really needed one or two).

What to Watch Out For

Purchases accrue interest at regular rates. When you initiate a balance transfer, the amount you transfer onto your card will enjoy the favorable 0% interest rate for the promotional period. If you make any additional purchases with that card, those purchases will accrue interest at whatever the regular rate is, which can be in the double digits. All of your payments to the card will apply to the 0% balance, not the “other” balance being charged regular interest rates.

After the promotional period, your interest rate goes up. It’s important to look at the card’s regular interest rate because the moment your promotional period ends, that’s the interest rate you will be charged. If you want to transfer a balance, compare your current interest rate against the regular interest rate of the new card to see if it makes sense. If you can pay off your balance within the promotional period, then this is less of a concern.

Review balance transfer fees. The days when you could transfer a credit card balance for free are long gone, credit cards now charge an up front fee on the balance amount that ranges anywhere from 3-5%, with a minimum dollar amount. Run the numbers to see if the transfer makes sense and can help you get out of debt faster.

I long for the good ole days when you could get 5% interest from a high yield savings account and we played the balance transfer arbitrage game – get a balance transfer, put it into a savings account, collect interest, and then pay back the transfer. Those were fun ways to make a few bucks, at the cost of a few points on your credit score, and perfectly safe.

(Photo: andresrueda)

How Does a Balance Transfer Work? from personal finance blog Bargaineering.com.

Will you buy any shares?

I won’t. When you buy into an IPO, you’re gambling. I’d rather lean over a craps table and foolishly put money on the pass line. At least I think I’m having fun while the dice are flying. I don’t want to gamble with shares of an IPO, in any industry, because it’s really a crap shoot. If you get shares before they trade publicly, you might have an edge. If you get shares after, you lose any edge you have. You are betting you can sell your shares to someone else who is willing to pay more. Sometimes it works out, sometimes it doesn’t.

If it trades at $35, that’s 70 times it’s projected 2012 earnings. Apple trades at a price to earnings ratio of 13.61. Google trades at 18.31. While they aren’t the same types of companies, in terms of growth prospects, do you think you can sell Facebook to someone at 90 times earnings? Think Facebook can find a way to increase profits? The answer might be yes but you have to recognize that you’re basically gambling.

That said, sometimes it’s fun to gamble. It’s fun to get caught up in the excitement… that’s why I put money on the pass line at a craps table. I know it’s entertainment.

Your Take: Are You Buying the Facebook IPO? from personal finance blog Bargaineering.com.

One of the ways you can keep tabs on your general creditworthiness is by signing up for a web site like Credit Sesame. Credit Sesame offers you access to a general idea of your credit score — at least the Experian version of it — and provides you with information about how you can save money with different credit offers. Recently, Credit Sesame launched an online app designed to let you take advantage of Credit Sesame on the go.

iPhone App from Credit Sesame

The iPhone app from Credit Sesame allows you to access the basic features of the Credit Sesame web site. You can do all of the following:

• Sign up for an account
• Access your information
• Look at your available credit
• See what debt payments you have
• Check a version of your Experian credit score
• Monitor different products that might fit with your financial situation

The Credit Sesame app is free, as is signing up for the service. Additionally, it is intuitive, attractive, and easy to use. You are protected using bank-grade security, so your information is as safe as it can be in a world where identity theft is a growing crime. It’s also worth noting that you will set up a PIN, and you can remotely turn off mobile access in the event that you lose your phone. Also, understand that your Social Security number is not stored on the phone, even though you need it to sign up for Credit Sesame (it’s used to pull your credit information). Credit Sesame makes money when you sign up for offers — not from lead generation — so you don’t have to worry about the company selling your information to the highest bidder.

For the most part, the Credit Sesame iPhone app is a lot like interacting with the web site. You can see where you stand, and get an idea of what might be available for you going forward. The information you can get is likely to eventually be even more targeted and personalized.

Understand You’re Not Getting a FICO Score

It is important to understand that you aren’t getting a FICO score when you sign up for a service like Credit Sesame. While the web site, and the app, can be useful for spotting general credit trends in your life, and giving you a general idea of where you stand, you aren’t getting a FICO score. Instead, you are getting a consumer version of your Experian score. While this can be useful in general terms for tracking your progress, it still isn’t “official” in terms of what lenders use to determine your credit worthiness.

The main appeal to the Credit Sesame app is that you have the opportunity to check on your situation no matter where you are. You can see your accounts, and hold the information in the palm of your hand. It’s convenient for those who prefer mobile financial information.

Credit Sesame’s New iPhone App Review from personal finance blog Bargaineering.com.

There is one large downside to automatic dividend reinvestment, it can be a pain whenever you sell the stock because you have to keep track of the various lots. And it really stinks to have to spend that time when the lots are a share or two (or fractional). There are a few smaller ones, like how you have to pay capital gains taxes on the dividend even though you didn’t take any cash out, but for the most part it’s a good deal for someone in a similar financial situation.

The following brokers offer free dividend reinvestment programs, ordered in least to most expensive trade commissions:

OptionsHouse

OptionsHouse offers dividend reinvestment as long as it’s a marginable security priced greater than $5, is a US equity or US traded foreign equity, closed end mutual funds not listed on the MSDI “H” exchange, OTC, Pinksheet, or Bulletin Board, or is a Unit Trust with mandatory reinvestment CUSIPs. There are no fees to enroll in the reinvestment plan and you just need to email customerservice@optionshouse.com with your email on file. Include the name of the account holder, last four digits of the social security number, date of birth, and your OptionsHouse account number.

Stock trades at OptionsHouse cost $2.95 per trade.

TradeKing

TradeKing offers dividend reinvestment for securities with an average volume of 50,000 shares traded daily, are DTC (depository trust company) eligible, and have a price of $5+. Dividends are reinvested on the dividend payable date at the market price when the ordered is entered, with fractional shares being issued if necessary. In addition, you can also tell TradeKing to reinvest dividends for your entire account, rather than on a stock by stock basis. If set that up, then any future stocks you buy will have their dividends automatically reinvested.

You can set this up by emailing service@tradeking.com or calling 877-495-5464. Stock trades at TradeKing cost $4.95.

Sharebuilder

Sharebuilder offers free dividend reinvestment and fractional shares at no extra charge. You can change your preferences by logging into your account, clicking on the Accounts Tab, then Portfolio, and then the Dividend Reinvestment tab. From here you can set the preferences for each stock or ETF holding you have. You can read the full instructions here. Market orders are $9.99 and scheduled purchases are $4.

TD Ameritrade

TD Ameritrade offers dividend reinvestment through their cleverly named TD Ameritrade Dividend Reinvestment Program. You can read the legalese enrollment form but the gist of it is the same as most other DRIPs – you have the option of picking individual stocks for dividend reinvestment or have every stock in your portfolio selected. Dividend reinvestment is free (though they put language in the agreement that lets the charge for it in the future, though they don’t intend to), the trade is executed the day they receive funds (typically the next business day), and they offer fractional shares.

You can set it up by calling client services at 800-669-3900. TD Ameritrade charges $9.99 per stock trade.

Charles Schwab

Charles Schwab doesn’t have a lot of information on its website about their dividend reinvestment plan, but other sites explain a system that is like many others on this list. Free dividend reinvestment on eligible stocks and offering fractional shares.

Charles Schwab charges $12.95 per stock trade.

Scottrade

Scottrade does not offer dividend reinvestment nor does it offer fractional share buying. If you want to reinvest any stock dividends, you’ll have to make a regular trade using the cash proceeds. Stock trades at Scottrade cost $7, so manual dividend reinvestment is probably not going to be a financially prudent option.

I only really looked at the discount brokers out there, I’m sure plenty of the full service ones offer the same.

Brokers with Free Dividend Reinvestment Programs from personal finance blog Bargaineering.com.

Unemployment benefits have been extended a few times in an effort to help those who are unable to find work. If you lose our job, unemployment benefits can help you through the tough times, but you do need to be aware of the requirements that might be placed upon you to qualify.

Are You Eligible to File for Unemployment Benefits?

Your first step is to figure out whether or not the way you left your job qualifies you for unemployment benefits. In order to qualify, you have to meet wage and time period requirements. Most states have an unemployment office, or you can get information from your state’s Department of Labor. In either case, find out what qualifications you have to meet in order to receive unemployment benefits.

Realize, too, that the way you leave your job matters. For the most part, you need to be laid off in order qualify to receive unemployment benefits. Generally, you are not entitled to unemployment benefits if you quit your job. Quitting for school, marriage, self-employment, or even illness are not considered good enough reasons for quitting and collecting unemployment benefits. Additionally, if you are fired for misconduct, or if you are involved in some other dispute, you probably won’t qualify for unemployment benefits.

There are exceptions to this rule, though, if you can prove that you quit for a “good cause.” This usually includes situations of a hostile work environment, or for some other reason. Your state’s unemployment office will decide what constitutes a good cause, and you can usually plead your case.

How Do You Maintain Unemployment Benefits?

Once you begin receiving unemployment benefits, you generally don’t continue to just receive them by virtue of the fact that you are out of work. Indeed, most states require that you meet certain qualifications to receive continued benefits. Generally, you need to be reading, willing, available, and able to work. You are expected to be ready to accept a job, and be physically able to perform work.

Many states also require that you check in with a case worker periodically to ensure that you are actively looking for a job. You may be required to update your resume, and submit it to various jobs. You may be asked to account for which job openings you applied for, as well as other actions you are taking in order to look for a job. Some states even set certain standards for work, and require that you accept jobs that meet those qualifications. If you balk at trying to find a job, or if your contact doesn’t think you are doing enough to find a new job, you might not be able to receive your unemployment benefits, or the amount you receive might be cut.

As you receive unemployment benefits, it’s also important to remember that you are taxed on them. You will need to figure that into your plans; in many cases, it’s important to get off the unemployment rolls as quickly as possible.

(Photo: Sean MacEntee)

Do You Qualify for Unemployment Benefits? from personal finance blog Bargaineering.com.

Qualified dividends also enjoy favorable tax rates, with the income taxed at long term capital gains, which make them especially appealing to those on fixed income, such as retirees. As long as the dividend is considered a qualified dividend, you can enjoy the lower rates.

So what are the capital gains tax rates for 2012?

Capital Gains Tax Rates

The capital gains rate you pay will depend on your ordinary income tax rate.

Unless something changes, capital gains rates are set to increase, along with ordinary income tax rates, after this year. Long term capital gains rates would increase to 10% for those in the 15% bracket and 20% for those taxpayers in higher brackets.

Primary Home Exclusion

There is one huge exception to the capital gains rule and it’s for your primary residence. If you sell your primary residence, defined as a place you lived in for two of the last five years, then you can exclude $250,000 of capital gains from your tax return. You simply don’t report it on your return and so you pay no tax. If you are married, the exclusion increases to $500,000 ($250k a piece). This can be a huge tax break depending on how much you gained on the sale of your home and makes owning a home so favorable (not including the mortgage interest rate tax deduction) compared to similar investments.

If you want to pay lower tax rates, then you need more capital gains. Easier said than done, huh?

(Photo: epicharmus)

How Capital Gains Taxes Work from personal finance blog Bargaineering.com.

How do you plan to pay for your child’s college education? Maybe a large portion of their tuition is covered by academic or athletic scholarships but for the average family, that isn’t the case. Needs based grants will only pay for a portion of the tuition making student loans a reality for many. A recent study by the Associated Press found that one out of every two college graduates either can’t find a job or they’re underemployed working in a field unrelated to their college major. This makes graduating with as little debt as possible a priority.

The 529 plan is the best answer to this problem. Although many plans used to allow for the purchase of years of college at today’s prices, most plans now work like a 401(k) where you invest money in to the plan and choose the mutual funds that fit your objectives. If you start contributing early, the tax advantages allow you to build up enough money to keep applying for student loans and many allow family and friends to contribute to the fund too.

The Best 529 Plans

529 plans are state sponsored but you don’t have to live in that state to enroll in their program. Some states offer tax advantages to residents who enroll in their state’s program. If that’s true of your state, take in to account your tax advantages when evaluating fees and investment return. The general rule is that states with no state tax will not offer a tax break and most states that do, provide deductions or credits for contributions.

To find the best 529 plans, start by going to savingforcollege.com and researching the plan in your state. Evaluate a 529 plan just as you would a 401(k). Keep the fees as low as possible and stick with low cost index funds unless there’s a reason to pay the extra fees for an actively managed fund.

Next, many of the major financial media outlets publish yearly articles where they compile a list of the best 529 plans. States like Nevada, Alaska, Utah, Ohio, and Virginia make the list each year because of low fees and great return. CBS, as well as Kiplinger and MSN publish lists to get you started.

Bottom Line

If you have a young child, you’re in the best position to start a college savings account now and some of the best 529 plans are the best tools for assuring that your child doesn’t have to graduate with debt.

Best 529 Plans from personal finance blog Bargaineering.com.