Happy Veterans Day to all the veterans out there who served our country in the Armed Forces, and to those who supported veterans while they served – we couldn’t have done it without your support! Even though it may seem like some people only thank veterans once or twice a year on the major holidays, you should know  that your service is greatly appreciated year round!

Hopefully you can take some time today to relax and enjoy some of the Veterans Day deals and special offers that have been made available by many restaurants and businesses to thank veterans for their service.

2009 Veterans Day Discounts and Deals

There are a bunch of deals out there for veterans today – some are available nationally, and some are only available locally, so it pays to do a local search as well. For example, I was a few minutes late to work today because the car wash in between my house and office was offering free car washes for veterans. I’m glad I got there before my lunch break because I’m sure it will be crowded! I can’t list all the local deals, but I can share a few deals that should be available nationally. Feel free to add more in the comments section if you have additional information.

Nationally available Veterans Day deals:

• Golden Corral’s Free “Thank You” Dinner for Military – Monday, Nov. 16, 2009, 5 p.m. to 9 p.m. (note time and date!).
• Applebee’s Free Meal on Veterans Day – *Available during business hours on November 11, 2009 at participating Applebee’s only..
• Outback Steakhouse Veteran’s Day Deal.
• Free Admission to National Parks on Veteran’s Day.
• Lowe’s and Home Depot military discounts.
• Free Krispy Kreme for Veterans.
• More Veteran’s Day Discounts from Jarhead Online.

Be sure to check out more military discounts over at Military Finance Network for more military discounts and special offers. And thanks for your service to our great country!

Photo Credit: cliff1066™.

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If your company is one of the many companies currently going through annual open enrollment period, then you have probably read the term “eligible life events” or “qualifying life events” a couple dozen times by now. It’s important to know and understand which life events qualify, because many people only have one chance per year to elect their health benefits unless they have a qualifying life event, which gives them an opportunity to change their benefits elections.

Why do qualifying life events matter?

Most companies negotiate group health insurance costs once per year, and it’s more cost efficient for both the insurance company and the employer to keep a relatively steady number of people in the plan they elect at the beginning of the year. Insurance companies agree to lock in rates for the year in exchange for keeping people from switching plans at will. However, it wouldn’t be fair for the insurance companies not to allow people to change plans when they have a major life event that changes their needs. So there is a built in clause that allows people to change their health care coverage when they experience certain qualifying life events.

What are qualifying life events?

As mentioned above, qualifying life events are major events in your life that qualify you to change your health care coverage outside of the open enrollment period. Major life events include:

• Marriage, civil union, divorce, annulment, legal separation.
• Birth, adoption, taking in a foster child, or becoming a legal guardian.
• Change in spouse’s work status.
• Death of spouse or dependent.
• Change in status of dependent’s eligibility (e.g. change of student status or becoming too old for coverage).
• Possibly more, depending on plan.

These are common qualifying life events, so be sure to read the fine print in your benefits enrollment package. Also keep in mind that you usually only have 30 days from the date of the qualifying life event in which to make a change in your health insurance plan. Insurance companies or your Human Resources department may also require proof of the qualifying life event, so be ready to fax a copy of a birth or marriage certificate, death certificate, adoption papers, etc. Specifics vary from plan to plan, so be sure to read your plan thoroughly before electing your benefits plan.

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Related Articles:

1. What is COBRA Insurance?
2. What You Need to Know About Open Enrollment: Health Insurance Options
3. Shopping for Individual Health Insurance

Open Enrollment is currently in season for thousands of employees. For most people, this is the only time of the year when they can make benefits elections for their health, dental, vision, and other company sponsored insurance plans. Most companies only give a two week window to make changes, so let’s take a look at the most common health insurance coverage options available to most employees.

Open enrollment health insurance options

There are several types of medical insurance, and we will cover the most common types – keep in mind that your company may offer variations, combinations, or something completely different than these listed here. This is general information only, and you should examine your policy options closely before making a decision on which health plan option to choose.

Fee for service health care plans

Fee for Service health care plans are the most flexible healthcare insurance plans available, as you can visit any doctor at any time, without a referral required by the insurance company. You do not need to worry about in or out of network providers and you can visit any hospital in the country. You also pay for this flexibility.

You are required to pay a health insurance deductible out of pocket before the insurance company will begin paying for any of your medical bills. Once you reach your deductible you pay coinsurance, which is when you share the health care costs with your insurance company, usually by a set percentage of the total bill. Some fee for service plans place a cap on the amount of out of pocket expenses you can incur within the course of a year. For example, in addition to your monthly premiums you may have a $500 deductible, and a $5,000 annual cap on your insurance. Be sure to read the plan thoroughly because there are often restrictions regarding which types of medical care are covered in this type of health insurance plan.

Pros and cons of fee for service health care plans:

• Pros: Freedom to choose health care provider, Cap on annual expenses.
• Cons: Restrictions on some plans, cost may be more than an HMO or PPO.

Health Maintenance Organization – HMO

With HMOs, health insurance companies negotiate fixed rates for health care with a select group of medical care specialists. Health care is limited to in-network health care providers who are a part of your HMO plan. To receive care, you are required to select a Primary Care Physician (PCP), usually a general care practitioner, who is your central point of contact for all medical care, including appointments, specialist referrals, and other medical care. You will need to visit your PCP for all medical inquiries or to get a referral to a specialist. You run the risk of paying out of pocket for using an out of network medical professional unless it is an emergency or your plan specifically gives permission. While there are limitations to HMO plans, they are often a low cost health insurance option because of the low rates the health insurance companies are able to negotiate.

Pros and cons of HMOs:

• Pros: Lower premiums and deductibles, and higher coverage rates.
• Cons: Required to select a PCP, must get specialist referrals, and are restricted to in-network health care providers.

Preferred Provider Prganization – PPO

Preferred Provider Organizations are generally a little more expensive than HMOs, but they offer more flexibility. PPOs have negotiated rates with their networks, but you are free to go out side the network for healthcare coverage, though you may have to pay more for it. Primary Care Physicians are not required and you can visit a specialist without a referral.

Pros and cons of PPOs:

• Pros: PCP is not required, referrals are not required for specialists, and out of network providers are covered.
• Cons: Premiums and deductibles are often higher than HMOs, percentage of coverage may vary.

Health Savings Accounts and High Deductible Health Insurance Plans

Health Savings Accounts (HSA) are gaining in popularity among both employers and employees – employers because they save money on group health insurance costs, and employees because they have more choice on how they use their medical coverage and they can save the money they don’t use in any given year and roll it over to the next year. HSAs are a tax-favored savings account that is combined with a high-deductible health insurance plan.

Contributions to your Health Savings Account are considered an “above the line” tax deduction and are considered a f ederal income tax deduction, regardless of whether or not you itemize your deductions. Some states also allow tax deductions for HSA contributions.

Pros and cons of HSAs and High-deductible plans:

• Pros: Low monthly payment, money grows in a tax-deferred savings account until withdrawn for health care needs. This may be a good plan for healthy individuals with few medical care needs.
• Cons: High deductibles and co-pays. limited coverage in some cases.

Other Health Savings Plans. There are several health savings plans available, including HSAs, Health Reimbursement Accounts (HRAs), and Flexible Spending Accounts (FSAs). You can read more to determine which Health Savings Plan is the best for your needs.

Terminology is important!

When comparing health insurance plans, it’s important to understand what you are getting. For example, “in-network” and “preferred providers” are often interchangeable. Co-pays are when you make a payment at the time of service, often a set rate that is clearly negotiated as part of you plan. Co-insurance is when you pay a percentage of the bill, usually in the 10-30% range. There is a HUGE difference in the meanings of co-pay and co-insurance when you are dealing with a major medical procedure!

Be sure to read your health coverage plan thoroughly, and call your Human Resources department or insurance company if you have any questions or if there is anything you are unsure of. Remember, cheap health insurance isn’t always the best health insurance. But with some research, you should be able to find affordable health insurance that meets your needs.

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Related Articles:

1. Shopping for Individual Health Insurance
2. What is COBRA Insurance?
3. What to do About Health Savings Accounts with High Fees

It seems like you can’t turn on the television or the radio without hearing a catchy jingle about your credit score. And if you listen to some of the personal finance gurus like Dave Ramsey or Clark Howard you will hear frequent references to checking your credit reports for accuracy. While these two items both deal with your credit, they are quite different, and quite important.

The difference between credit reports and credit scores

Your credit score is a numeric value based on a weighted formula and your credit history is just that – a list of your credit accounts, payment history and more. These two items are often used to determine your credit worthiness and the likelihood you will repay your loan.

What you need to know about your credit report

Your credit report, sometimes called credit history, tracks your credit reliability based on your history of making payments on your loans and other debts. Your credit report usually goes back 7 years, or up to 10 years in the case of a bankruptcy. Your credit history is tracked by the Credit Reporting Agencies such as Equifax, Experian, and TransUnion, which maintain records of your current and past lines of credit, payment history, age of your credit accounts, collections or settlements on your loans, credit utilization, bankruptcies, and other information. Your credit report will also list credit pulls, or inquiries made against your credit (what is the difference between a soft and hard credit pull?).

Why is your credit report important? Your credit report is considered the definitive record for your credit history and is used to judge your credit worthiness. Your credit score is based from the information contained within your credit report. You should check your credit report at least once a year to ensure accuracy, or before applying for a loan. You can get a copy of your free annual credit report at www.annualcreditreport.com.

Note: Your credit score is not contained within your credit report. You usually need to pay to receive your credit score.

What you need to know about your credit score

There are several credit scoring systems out there, but the most widely used is the FICO credit score, which is a proprietary formula from the Fair Isaac Company (FICO). (find more information at the MyFICO website). You credit score is a numeric value used to rate your credit risk at the time the score is reported. The FICO credit score system ranges from 300 to 850, with a higher score representing a lower perceived credit risk.

This graphic shows the factors used to determine your credit score.

Credit score uses. Your credit score is used to judge your credit risk and is referenced by lenders when you apply for a loan, landlords, and some employers when you apply for a job. The lower your score, the higher your perceived credit risk, which will result in a higher interest rate or the inability to secure a loan. Low scores may also prevent you from being able to rent property, apply for some jobs, or get a security clearance.

How can you improve your credit score? The best way to improve your credit score is through on time payments and maintaining a clean credit history. Here is more information about how your credit score is determined and how to improve your credit score.

Ensuring accuracy in your credit report is important

Your credit score is based upon your credit report so you should check your credit report for accuracy at least once a year to ensure everything is as it should be. You should contact the 3 major credit reporting bureaus if you find information that appears erroneous. Another benefit to checking your credit report is to verify you have not become a victim of identity theft, as any new lines of credit will show up on you credit score. You should file a police report and contact the credit bureaus if you discover you have become a victim of identity theft.

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Related Articles:

1. How to Improve Your Credit Score
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Warren Buffett recently announced that the Class B shares of Berkshire Hathaway are going through a 50 to 1 stock split, which is the first time he has split Berkshire stock – something he has claimed for years he wouldn’t do. Buffett has stated multiple times that he prefers not to split stocks because the higher prices make it less likely that day traders will cause major price fluctuations. He changed his mind this week though, after Berkshire’s acquisition railroad company Burlington Northern Santa Fe for a mix of cash and stock. Splitting the stock was a byproduct of the deal and was done for tax reasons.

What is a stock split?

A stock split is just what it sounds like – the stock is split into multiple parts. It actually doesn’t change the overall value of the stock, just the number of shares. For example, if you have a $100 stock and the company does a 2 to 1 stock split, then the original share is now two shares valued at $50 each, which still equals $100. But in the case of  the BRK.B stock, it is a $3,425 stock (Friday’s closing price) being split into 50 shares, valued at $68.50 each. (As an interesting note, the Class A share of Berkshire trades for over $100,000).

This shouldn’t change the overall value of the shares, but it will make it much easier for the average investor to purchase shares of the Berkshire B stock, as not everyone can come up with $3,400 to purchase one share. But when the stock splits on Tuesday, people will be able to pick up shares for less than $100, which makes it easier for the average investor to purchase shares.*

*Partial share investing. Some online brokers, including ShareBuilder and a few others, offer investors the opportunity to purchase partial shares of stock, so in the case of BRKB, one could have already been making purchases of partial shares before the stock split. However, not all brokerages offer this.

Recommended financial and career articles:

• Flipping a coin to divide a billion dollar empire. Not all business deals involve teams of lawyers and years to accomplish.
• Never Call In Sick On Friday, Slacker!. An interesting take on a common problem. Be sure to read the comments.
• My Store-Brand vs. Name-Brand Blind Taste-Test Experiment. Great article. My wife and I purchase a mix of name brand and generic products depending on the item, taste, value, etc.
• Be Your Own Part-Time Boss: The Pros & Cons. Great article for entrepreneurs.
• Great News! I Just “Fired” Myself! (Who’s Next?). Another great article for entrepreneurs. It is important to know when to outsource business tasks.
• Your Estate Planning Checklist. Essential reading.
• When Money Doesn’t Matter. You cannot place a price on life, and this article is an very good read about doing what it takes to save a life.
• Living Paycheck to Paycheck Could Cost you Your Life.
• Blockbuster employee stabs himself to avoid getting fired. Desperation as unemployment hits 10%.

This week’s carnivals:

• The Best of the Best in Money and Personal Finance #8 @ LenPenzo.com.
• Carnival of Debt Reduction @ Mighty Bargain Hunter.
• Carnival of Personal Finance #229: candy edition @ the centsible life.
• The Best of Money Carnival #23 @ Provident Planning.
• Carnival of Money Stories @ Christian Personal Finance.
• Carnival of Money Hackers #89 – My Favourite Coffee Edition @ The Financial Blogger.
• Financial Planning and Personal Investment Articles this Week @ The Skilled Investor.

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If you have high interest credit card debt, balance transfers can be a great way to save some money and pay off your credit cards more quickly. Basically, a balance transfer is a way to consolidate your debt on a credit card at a lower interest rate than what you are currently paying. Instead of paying interest rates of 20% or higher, you may be able to transfer your credit card debt to a credit card with a lower fixed interest rate than what you are currently paying; possibly as low as 0% if you qualify for a 0% balance transfer credit card.

Determine how much you can save with a balance transfer

The first thing you will need to do is gather all your credit card bills and add up how much you owe and the interest rates on each card. If you haven’t done this before you may be shocked at how much interest you are paying! You may get angry once you see how much of your payment reduces your debt and how much goes straight to the lender. Use that as motivation to get out of debt more quickly!

After you determine how much you owe and the interest rates, you need to look at various balance transfer options and try to determine what your interest rates would be if you complete a balance transfer. Keep in mind that some credit card companies charge a balance transfer fee, so don’t forget to add that in your calculations. Then use to an amortization calculator and put in your new interest rate and the loan duration to calculate how much interest you will pay after you make the balance transfer. The difference is your savings.

For example, you can transfer a credit card balance from 20% to 0%, and pay a 5% balance transfer fee. You can either add the balance transfer fee to your balance or pay it when you do the balance transfer. Either way, your new interest rate would be 0% and all payments would go toward reducing the principal of the loan. If you direct the interest savings toward your monthly payments you will reduce your credit card debt much more quickly than you otherwise would have. They key is not to add new debt as you go.

Comparing balance transfer credit cards

There are a couple different balance transfer options – a 0% balance transfer if you qualify, or a low interest rate credit card, which may be easier to qualify for. Some examples of each are listed below.

The most popular 0% balance transfer credit cards

0% balance transfer cards often seem like the best way to go, but there are usually fees attached to them. To determine how much you will actually save on a balance transfer you need to consider the balance transfer fees in your calculation. Take a look at the top three 0% balance transfer cards:

• Discover More American Flag Card: 0% balance transfer for 12 months, 5% transfer fee.
• Discover® More(SM) Card: 0% balance transfer for 6 months, 3% balance transfer fee.
• Citi® Platinum Select® MasterCard®: 0% balance transfer for 6 months, 3% balance transfer fee.

Based on these three cards, it is easy to see that you will save the most money if you can pay the card off within 6 months. That may not be realistic for everyone, so the 12 month option is a better deal for many people, even though the transfer fee is 5%. That still beats most credit card interest rates which hover in the 20%+ range.

Comparing low interest balance transfer credit cards

Low interest cards offer another solution to paying outrageous interest rates. Some low interest balance transfer credit cards don’t come with a balance transfer fee. Their interest rates may not be quite as good as a 0% balance transfer card, but the difference often isn’t very far off when you consider the fees that often come with a 0% balance transfer card. Check out these low interest balance transfer options:

• Simmons First Visa® Platinum. 7.25% interest rate, no balance transfer fee.
• IberiaBank Visa Classic. 12-month balance transfer at 8.75%. After that, the interest rate adjusts to the prime rate + 5.5%. No balance transfer fee.

These two cards are great options for those looking for a good low interest credit card to reduce their current interest rates, or for people who are searching for a credit card with low interest rates for making new purchases.

Other balance transfer options or debt consolidation options

You may be able to find a quality balance transfer credit card with your local credit union or bank, or through a job or organization to which you belong. Other options to help consolidate your debt at a lower interest rate are a Home Equity Line of Credit (HELOC), or by getting a peer to peer loan from a company like Lending Club or Prosper. P2P loans allow you to borrow money from individuals instead of a bank. If you have good credit you can often consolidate your loans at a much lower interest rate than many credit card interest rates, though not as good as a 0% balance transfer offer.

Which balance transfer option is best?

It depends on your situation – specifically how much debt you currently have, how quickly you can repay your debt, whether or not you can qualify for balance transfer credit cards, etc. But in most cases, it is well worth consolidating your credit card debt at a lower interest rate as long as you make the commitment to changing your spending habits and paying off your debt.

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Related Articles:

1. How to do a 0% Balance Transfer
2. Best Zero Percent Balance Transfer Credit Card Offers
3. What Should I do About Increased Credit Card Interest Rates?

Auto insurance is one of those necessary expenses in life that many people don’t pay much attention to. Once you purchase your auto insurance policy inertia sets in and it is easier to simply renew your policy every 6-12 months than it is to shop for better insurance rates. But you may be able to save 30% or more on your annual bill by shopping for cheaper car insurance rates, making it well worth the effort.

How to shop for affordable auto insurance

The first thing you need to do is grab a copy of your current car insurance policy and write down your coverage and rates. Next, get car insurance rate quotes from other automobile insurance companies. You can call or visit an independent insurance agent, visit individual websites, and check online comparison sites for multiple auto insurance quotes. Be sure to check the major companies as well as some of the smaller companies – you never know which company will have the best rates until you get a quote. It’s also a good idea to read customer reviews to make sure you are going with a reputable company – the cheapest car insurance doesn’t do you any good if you can’t file a claim.

Be sure to double check your current insurance policy when making comparisons between auto insurance companies to ensure you are comparing apples to apples because a small difference in the language of the policy can have a big influence on the price.

Get multiple auto insurance quotes

Ideally you want to compare 3-5 car insurance quotes before deciding to switch companies. The following list is a good place to start. Some of these websites in this list are insurance companies and a few are insurance aggregators that will give you multiple quotes from various auto insurance companies. There may be some overlap if you get quotes from more than one aggregator, but you will need multiple quotes to do a car insurance comparison anyway.

• Geico.
• AllState.
• Esurance.
• InsWeb.
• Fast Policy Quotes.
• InsureMe.
• 21st Century Insurance.
• EInsurance.

Get new quotes for major life events. Your insurance rates may drop when you turn age 25, get married, move to another city or state, have a shorter commute, change jobs (certain occupations may qualify for discounts), or for other major life events. It is always a good idea to get a new car insurance quote for any of these events.

How to lower your auto insurance premiums

Mitigate your risk profile

Your insurance rates are often based on the perceived risk you pose. Factors such as your age, marital status, how many miles you drive, where you live, your credit score, driving record, claims history, auto insurance coverage history, occupation, and other factors can affect your auto insurance rates.

Increase your deductible and drop unnecessary coverage.

Raising your deductible can save you up to 30% on your auto insurance premiums. Increase your deductible to $500 or $1,000 if you can afford that much for repairs. With an older car, drop collision and comprehensive coverage when the car is worth less than 10 times what you pay for the insurance (check Kelly Blue Book for used vehicle values). You can also consider dropping comprehensive coverage if you have fully paid any outstanding loans or if you can afford repairs if you are at fault.

Maintain a good driving record.

One ticket or accident may not increase your auto insurance payment, but then again, it may. Your best bet is not to find out! Drive defensively and observe traffic laws to avoid traffic tickets and possible increases to your insurance premiums. Defensive driving is not only safer, but you will probably save money on gas and maintenance costs as well. Win-win situation.

Pay your premium up front.

Many companies offer a discount on your auto insurance premiums if you are willing to pay your entire premium in advance instead of paying each month. Be sure to ask your company if they offer this type of auto insurance discount – you could save up to 10% or more.

Get good grades.

Many auto insurance companies offer discounts of 10-15% for students who maintain good grades. These discounts are often available for high school and college students. Check with your insurance agency for more details.

Join an association or club.

Many large associations and clubs are able to negotiate group discounts for auto insurance. Examples include AARP, Costco, AAA, military organizations, trade groups, unions, and more.

The type of vehicle affects insurance rates.

Vehicles with higher safety ratings, lower maintenance costs, or lower purchase prices may be cheaper to insure than expensive vehicles or those with low safety ratings. Ask about discounts for day time running lights, multiple airbags, anti-lock breaks, and other safety features. It’s a good idea to get an auto insurance quote when shopping for new cars so you have an idea of how much it will cost to insure your new vehicle.

Combine insurance policies under one roof

Some insurance companies will give you a multi-line discount when you have multiple insurance policies through their company. This can include a multiple car discount, but also for combining other insurance policies such as your homeowner’s insurance policy, renter’s insurance, etc.

Other discounts to ask about:

Defensive driving discounts, low annual mileage discounts, no accidents or moving violations, policy renewal discounts, etc.

Car insurance may be a requirement, but that doesn’t mean you should pay too much

You now have the information you need to search for lower auto insurance rates. Take the time to run some quotes and you may save yorself a couple hundred dollars per year – money that can certainly be put to better use.

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Related Articles:

1. How to Save Money on Your Homeowner’s Insurance Rates
2. Hurricane Season – Time to Review Your Flood Insurance Policy
3. How to Lower Your Cell Phone Bill

Right now savings account rates are relatively low, which leaves a lot of people looking for a better return on their money. While many people prefer leaving their money in a standard savings account, there are some options where you may be able to earn a little more interest. These tips are primarily for people who have an established emergency fund and are looking for a better return on investment for money they do not need immediately.

High yield money market accounts & high yield checking accounts

Many banks offer high yield savings accounts, high yield money market accounts, and high yield checking accounts, each of which may offer different interest rates or benefits. Be sure to check with your local bank or credit union, which may have better offers than you can find online – particularly for high yield checking accounts. Also be sure to read the fine print before opening an account because money market accounts and high yield checking accounts often have a list of requirements that must be met to achieve the highest interest rates. High yield checking accounts often have a long list of requirements, such as maintaining a minimum balance, completing a certain number of debit card transactions per month, a maximum deposit for the highest interest rate and more. In some cases they are more hassle than they are worth.

Certificates of Deposit (CDs)

Certificates of deposit are term deposits that customers deposit with a bank for a set period of time. The amount of money banks can lend is tied to their deposits, so having a customer deposit locked in allows banks to offer better interest rates than a standard savings account. Most banks will charge a penalty if you end your CD before it has matured, so be careful not to put your money in a CD if you think you will need it soon.

How to avoid breaking CDs. The two best ways to avoid breaking CDs are to build a CD ladder or use a no-penalty CD. CD Ladders stagger your CDs on a monthly or annual basis, giving you access to a portion of your funds with more frequency. No-penalty CDs allow you to withdraw your funds without incurring a penalty. These often come with shorter terms and potentially lower interest rates than other CDs, but often beat high yield savings account rates. You can find no-penalty CDs at Ally Bank.

Purchase Bonds

Bonds are essentially loans that you give to the government or a business in return for a promise of payment at a future date. not all bonds are guaranteed, so be sure to investigate the risks before investing. You can purchase guaranteed savings bonds from the US government which are exempt from state and local taxes. Many states, cities, counties, and towns issue Municipal Bonds to pay for public projects and other activities, such as building schools or repairing roads. The majority of municipal bonds are exempt from federal, state, and local taxes, which, depending on your tax bracket, can raise the effective yield above other types of bonds or above savings accounts.

Retirement contributions

If you have extra cash in your savings accounts, you can consider increasing your retirement contributions above what you are currently making. You can contribute up to $5,000 in a Roth or Traditional IRA, and you can contribute up to $16,500 to your 401k in 2009. One way to max out your 401k contributions this year is to increase your payroll withholding and make withdrawals from your savings account to make up for the difference in cash flow. Only do this if you have a buffer in savings and don’t forget to reset your contribution levels after you max out your 401k.

Peer to peer lending

Before reading further you should realize the P2P lending is not a guaranteed investment and is not backed by the FDIC. So if you are looking for a place to stash your short term reserves without risk, then this is not an option for you. But if you are looking at a short term investment with potential returns better than a standard savings account, then you may consider purchasing loans through Lending Club or Prosper, two of the leading P2P lending institutions. While these loans are not guaranteed, there is an opportunity to return much more than a standard savings account or other investments, with Lending Club loans recently returning an average of over 9%.

Pay off debt

If you have extra cash sitting around your savings account and want to get a better return than current interest rates, then consider making additional payments on any outstanding loans, including your mortgage. Chances are you will receive about a 5% return on investment or higher, which is much better than the sub 2% interest rates offered by most banks right now.

Where is the best place to stash your cash?

The best place to stash your cash depends entirely on your financial situation and risk tolerance. You should maintain your emergency fund and as much additional cash as you deem necessary. If you have extra cash after that then it doesn’t hurt to look for a better return on your investment.

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Related Articles:

1. Looking for New Checking Account? 4.25% at Charles Schwab
2. The Best Online High Yield Savings Accounts
3. High Yield Savings Account Rates – Updated Oct. 2, 2009

The calendar just flipped to November, which means the holidays are fast approaching. I don’t know about you, but for me it seems like the year is practically over once Thanksgiving hits. My holiday season will be full with travel and a newborn at home, so I thought now would be a good idea to look at some end of year tax planning.

End of year tax planning

There are several new ways to save on taxes this year due to the personal tax breaks in the economic stimulus packages passed by Congress earlier this year. Some of these include exemption from the first $2,400 of federal unemployment compensation benefits, extended COBRA benefits, AMT relief, and more.

Retirement contributions.

You can make tax deductible retirement contributions that will lower your taxable income.

• Maximize 401k contributions. Calculate how much you have left under your 2009 401k contribution limits and determine if you can increase your contribution through work. This scan be a great move if you can work it into your budget.
• Traditional IRA contributions. You can deduct up to $5000 if you qualify. Here is more information about 2009 IRA contribution limits.
• Self employed retirement plan contributions. Several self-employed retirement plans are tax deductible, including SEP IRA, Solo 401k, SIMPLE Plan, and Keogh Plan.

Of these plans, you can contribute to the Traditional IRA, SEP IRA, SIMPLE Plan or Solo 401k after January 1st. So you should focus your contributions toward maxing out your retirement plans that must be funded by the end of the year, such as your 401k, 403b, Thrift Savings Plan (TSP), or similar retirement plans. Then focus your retirement contributions on any retirement plans that allow you to max out your retirement contributions in the following calendar year. Here are more year end retirement plan tips.

First Time Home Buyer Credit.

Earlier this year Congress passed a credit for first time home buyers good for up to $8,000. To be eligible for the credit in 2009 you must not have purchased a home within the previous three years and you must meet income requirements (the credit phases out for some high income earners). The credit does not have to be paid back, but the home must be your principal residence and you must close on the purchase before December 1, 2009. There have been talks in Congress regarding extending the first time home buyer credit, but nothing is official at the time of this publication.

New-car sales tax deduction.

New car buyers may be eligible to write off state and local sales tax from a new car purchased in 2009. Single tax filers who earn less than $125,000 and joint filers who earn less than $250,000 are eligible. This is an above the line tax deduction which means you don’t even need to itemize your taxes to take advantage of this tax deduction. Eligible vehicles include new cars, motorcycles, light vehicles, and RV’s.

Buy an energy star appliance.

This year there are special rebates for Energy Star rated appliances. These programs are federally funded, but the money and rebates are being handled by the states, so the details may vary. Eligible appliances include heat pumps, furnaces, central and window air conditioners, refrigerators, freezers, dishwashers, washing Machines, and water heaters. The amount of the rebates varies between $50 – $200 per item and you do not have to turn in an old appliance like one had to turn in an old car with the Cash for Clunkers program.

Business deductions

If you own a business, you may be able to deduct eligible expenses.  If you haven’t been categorizing your expenses, now is a good time to go through your receipts and categorize them based on type of expenditure. You can also look at your expense forecast to see if there are any purchases you can make before the year end to  increase the amount of deductions you can take. You should also look at depreciation schedules, some of which have changed for this tax year. This is an area where hiring an accountant can really pay off.

Other year end tax deductions and tips

• Harvest tax losses. You can write off investment losses
• Donations. You can make tax deductible donations to eligible charities and non-profit organizations. Be sure to avoid charity scams and determine which charities are legitimate before giving your hard earned money.
• Avoid capital gains taxes. Wait until after the New Year to sell investments for gains – postponing your taxes for a full calendar year.

Every tax situation is unique

The focus of this article is to share a few ways you can prepare for your taxes before December 31st rolls around. This article isn’t designed to be a full blueprint for tax planning as it only covers a small percentage of the available tax deductions. Most tax software programs, such as TurboTax and TaxCut should include these deductions when you file next year, but it also doesn’t hurt to start now. You may also consider meeting with a tax professional for more advanced tax planning.

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Related Articles:

1. Year End Tax Moves
2. Year End Retirement Plan Moves
3. 2009 Traditional and Roth IRA Contribution Limits

There are a lot of great deals going on in the financial world right now, so if you are looking for some free stock trades at one of the leading online brokerage firms, discounts on financial management software, or a $50 sign up bonus for TradeKing or the Chase Freedom credit card, then you are in luck.

Free stock trades, bonus money, and financial management software discounts

• TradeKing $50 sign up bonus extended until November 30th.
• OptionsHouse 100 free stock trades. Expires December 31.
• E*Trade 100 free trades when you open an IRA. Ongoing.
• Quicken WillMaker free with purchase or Quicken software. Expires today!
• Chase Freedom $50 bonus for opening a new credit account. Ongoing.
• YNAB coupon code – save 10% on You Need a Budget with coupon code CASHMONEYLIFE. Expires in December.

For more freebies and coupons, check out the Free Money page and the Money Saving Deals section of this site.

Recommended financial and career articles:

• Financial Samurai $1,000 Giveaway & Your Chance To Make Millions Over Your Career! To MBA or not to MBA? That is the question. Now you can win a consulting package valued at $1,000 to help you put together an MBA application package to help you get into the B-School of your choice. Good luck!
• Tips For Budgeting When You Are Self-Employed. Tips for setting a budget on irregular income.
• Financial Fright Night: 13 Loans That Scare Me To Death. Great tips on which types of loans to avoid.
• ING’s Fate: From Bank Deposits to Marathons. Popular online savings institution, ING Direct will be forced to break up its banking and insurance divisions in order to receive aid from the Dutch government. They have until 2013 to sell or break off ING, so no word on what exactly will happen.
• 2009 Veterans Day Discounts. Be sure to forward this article to any military members and veterans you know to thank them for their service.
• When you have a bad boss. Tips on how to handle a bad boss without putting yourself in the hot seat!

This week’s carnivals:

• 215th Edition of the Carnival of Debt Reduction @ My Journey to Millions.
• Festival of Frugality #201 – Life Stages & Home Ownership Lesson Edition @ Gather Little by Little.
• The Carnival of Personal Finance #228: Halloween 2009 Edition @ Money Crashers.
• “Carnival of Financial Planning – October 30, 2009 Edition” @ Simple Trading System.

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Related Articles:

1. 20 Free Stock Trades at Zecco
2. Get 100 FREE Trades With New OptionsHouse Brokerage Account
3. Zecco Changes Requirements for Free Trades