Family Finance from FiLife Contributors - FiLife

Is Your Bond Fund at Risk? Rising Interest Rates Could Wreak Havoc

Fri, 20 Nov 2009 14:22:40 -0500

Itâs been difficult to miss the stock marketâs spectacular rally from the lows of last March. But did you know many sectors of the bond market have also staged impressive returns in 2009?

According to research firm Morningstar, mutual funds that invest in high yield bonds are up 41% year-to-date through November 9. Emerging markets bond funds have soared 31%. As with stocks this year, the riskiest types of bonds have logged the biggest gains.

If youâre tempted to jump on the bond market bandwagon, however, now may be a particularly risky time to commit new money to bond funds. With interest rates currently at historically low levels, the Federal Open Markets Committee will likely raise short-term interest rates when the economy starts to improve. That usually causes long-term interest rates to rise as well. And when interest rates rise, bond prices fall. Thatâs bad news for bond fund investors, who will most likely see the net asset value of their shares decline in response to rising interest rates.

Read Full Story »

Help! I'm Only Earning 1% on My Savings

Wed, 18 Nov 2009 15:35:37 -0500

Like the rest of the world, you've watched the diving and stagnant interest rates on your savings and money market cash reserves over the last year with horror.

It wasn't long ago your funds earned about 3% in 2008 and cruised along in 2007 at 5.5%.

Everything else being equal, we all would love to be earning a safe and steady 5.5% in today's economic climate. But it is because everything else is not equal that your cash returns won’t end up much better, or worse, than the glory years of 2007. Or many other years, for that matter.

Read Full Story »

How to Be a Debt-Free Santa

Tue, 17 Nov 2009 15:42:00 -0500

We have all been affected by the economic downturn in America. We are checking our kid’s "Dear Santa" list, scratching our heads and wondering, "How am I going to afford the mortgage, let alone little Johnny's wish list?" I have been implementing several family traditions over the last five years and have found that theses tips will help take the emphasis off the money, and place it where it belongs, in the holiday spirit of Christmas and the holidays. Here are five practical and fun suggestions that any family can utilize for quality holiday time with family, without a quantity of bills come January.

1. Pass The Rubber Chicken, Please! A long-standing and treasured hilarious tradition in my family has been passing along the same Rubber Chicken, with special additions created by family members, which reflect the gift recipient's year. â¨â¨I believe every family with kids should have an inexpensive and preferably funny holiday tradition that the kids and adults look forward to experiencing annually. And even if you have a normal tradition such as exchanging ornaments, get creative in searching out that one-of-a-kind piece.

One great way to decide on your annual holiday tradition is to ask your kids what they most remember about Christmas last year. If it was going out and getting the Christmas tree, then perhaps your tradition is a tree-trimming party. If what was most memorable was going out to breakfast in new flannel pajamas on Christmas morning, perhaps there is now the annual Christmas Eve gift of new pajamas for everyone.

Read Full Story »

Unemployment: How High Will It Go?

Tue, 17 Nov 2009 13:22:50 -0500

The Bureau of Labor Statistics reported that unemployment passed 10% for the first time since 1983. Historically, it’s been worse. Unemployment topped 25% in 1932 at the peak of the Great Depression. In that light, today's statistics might not seem as bad.

However, if the number passes the 1983 peak of 10.8%, then we will have to look back to the Great Depression for a higher unemployment rate. The more disturbing thought is that this is just a continuation of a trend that has been going on for many months. Topping the 1983 peak looks likely.

How high will unemployment go? To take a guess we need to consider at least these four things:

Read Full Story »

Home Buyer Tax Credits Extended Through June 2010

Tue, 17 Nov 2009 11:54:33 -0500

The recent extension of the home buyer tax credit added a major incentive for any prospective home owner. The government extended the $8,000 first time home buyer credit and introduced a $6,500 credit for current homeowners through the middle of 2010.

Beverly Hills, Calif.-based certified public accountant and personal financial specialist Robert S. Seltzer helped FiLife review the criteria and major advantages of this tax credit extension.

First-time Home Buyers

Read Full Story »

The Flexible Way of Used Car Finance

Tue, 17 Nov 2009 11:14:19 -0500

It is not always possible to avail huge finances for purchasing a car, and this is the reason why people opt for the used car finance. If you dream of a car that does not fit into your finances, then it is better to go for the used cars. These cars are available at a cheap rate for which you can even avail finances easily. People arrange for the used car finances from their relatives and friends, but nowadays there are finance companies that are providing used car finance. The used car loans are disbursed on the basis of the usage value of the cars and no the original price. This means that the finance companies can provide loans by calculating the percentage of the car usage rather the original price.

The used car finance is suitable for the people who are looking to buy cars by availing smaller loans or who are running a little low on the budget. One needs to pay a fixed amount as the down payment and this is generally the difference between the original cost of the car and the loan amount. This is generally a small amount in comparison to what one has to pay as down payment while getting new car finance. The used car finance is available for the cars that are below the 5 year usage mark. The loan repayment period can range anything between two to five years.

There are two types of used car financing available in the market: secured and unsecured. In case of the secured used car loans, you need to provide some collateral as security for the loan amount. The borrowers generally use their car as the security and probably this is the best security that one can provide, but one can also use real estate, jewelry etc. For availing the secured loans you do not even have to pay a high rate of interest and this is the reason why people prefer to avail these loans. Apart from the above details one must remember that the assets that one pledges can be confiscated by the finance companies if the loans are not repaid.

Read Full Story »

How to Survive Black Friday Sales

Mon, 16 Nov 2009 17:32:34 -0500

It takes more than a strong cup of coffee to prepare yourself for Black Friday sales.

You’ll need a hefty dose of money smarts and self-discipline to resist the fabulous deals merchants will unveil on one of the biggest shopping days of the year.

I've been a bargain hunter for a long time, so I’ve learned a few tricks for surviving Black Friday.

Read Full Story »

Natural Beauty Booty That Doesn't Cost a Lot of Green

Fri, 13 Nov 2009 15:09:38 -0500

Most people want to look their best, but some beauty product quick-fixes can cost a small fortune. If you’re tired of going broke every time you want to impress a special someone, you’re in luck. Read on for the best budget beauty booty and look fabulous on a dime.

You want: Gorgeous HairInstead of: Phyto's Phytojoba Intense Hydrating Mask ($38)Use: Pure Jojoba Oil ($7)

Often the star player in expensive conditioners and hair masks, this moisturizing miracle can be used on its own as a quick hydrating lotion or mixed into deep conditioners and hot oil treatments to soothe tired tresses. Use often and sparingly.Amount Saved: $31

Read Full Story »

5 Healthy Habits to Help You Save

Thu, 12 Nov 2009 14:49:59 -0500

While the debate over universal healthcare in the U.S. continues, there’s one thing everyone can agree on: When it comes to medical coverage, the costs are just going to keep going up. But if you’d like to spend less time in your doctor’s office (and paying the co-pays and prescription drug costs that often come with it), there are some surprising habits that will keep you healthier.

Scrape your tongue. Sure, you take time to brush your teeth (maybe even floss), but do you ever give your tongue a thorough cleaning? According to Margaret Lewin, M.D., the Chief Medical Director of Cinergy Health in Florida, your tongue harbors plenty of germs that are easy to wash away if you make the effort. Dr. Lewin says you can simply use your toothbrush to get the job done, or even better purchase a toothbrush with a scraper on the end. Not only will keeping your tongue clean keep bacteria at bay, it will make your breath fresher too.

Read Full Story »

How to Help Your Children Understand and Get Through the Recession

Wed, 11 Nov 2009 15:25:55 -0500

I know, many of you might be saying, "the recession is over." And you're right. Technically it is, but that hasn't stemmed the tide of growing unemployment. Despite Gross Domestic Product growth quarter over quarter signaling an end to the recession, many families in America find themselves with members who are still unemployed or the victims of new rounds of layoffs. If you don't think that the recession is affecting your children as much as it is affecting you, I am sad to say that you are greatly mistaken.

For the first time, the American Psychological Association included young people ages 8 to 17 in its recently released annual "Stress in America" survey. Children's worries about their family's finances ranked second only to doing well in school. The Wall Street Journal has even reported that a parent’s job loss increases the probability that a child repeats a grade in school by roughly 15%. The WSJ credits the finding to a new study from two economics professors at the University of California at Davis. Lets face it, we are worried, and our children are subsequently worried about the state of our economy and their own slice of the microeconomic world. But, there are things that you can do to help your children understand the situation and to shield them from unnecessary pain.

How to Help Your Kids Understand:

Read Full Story »