Financial Planning

By R. Firmin

If you’re like many Americans, the whole topic of financial planning is more than a little daunting. There are professionals for that, right? Well yes, and no. There is an entire profession devoted to financial planning and those in it want you to think that you need them. But do you?

All it takes to become a financial planner is a few business licenses, a short five-day course, a few fees, a test, some sales training and the ability to sell, sell, sell. Few financial planners are certified and even certification is no guarantee of competence.

To further complicate matters, there are some excellent financial planners who carry no certification. My financial planner isn’t certified but he leaves no stone unturned in being informed. Perhaps his best skill is that he listens to what his clients have to say. Most financial planners never really learn financial planning strategies. They don’t have time because they have to reach their sales quotas.

Most financial planners are actually insurance salesman. They get their biggest fees and commissions from selling insurance policies. Certainly, insurance has its place in a portfolio, but financial planners often recommend their clients put way too much of their money into insurance products. And many times the client doesn’t even realize that what he’s buying is actually a repackaged universal life or variable universal life policy.

One of the most important questions to ask a financial planner is how he or she is compensated. It’s certainly within your right to know if they’re working for your interest, or theirs. The incentives that financial planners receive to sell an insurance company’s policies are often so lucrative that the shine of gold can alter their judgment. Do you get excited when your financial planner wins a fantastic vacation to a beautiful resort because he was able to convince you to buy a product that may or may not be the best for you?

While no one objects to a professional being fairly compensated for services rendered, you can be sure that the less you understand and the less you are informed; the more it will cost you. You need to be sufficiently educated so that you can make responsible decisions with a financial planner and not leave the decision of how much and where to invest solely in their hands.

You don’t have to have an economics degree to learn the basics of money management and investing. If you spend most of your life working and earning money, doesn’t it make sense to spend some time learning how to manage it? That doesn’t mean you shouldn’t utilize the services of a financial planner, it means that if you choose to work with one, you have enough knowledge to know if what he’s offering is in your best interest.

Remember that a financial planner works for you. You hire him or her to execute your wishes and advise you. No one has more interest in the success of your retirement account or other investments than you do. You are the only person who has no conflict of interest in choosing your investments.

About the Author: Download a free financial worksheet and financial calculators at

ronfirmin.com

. Ron Firmin has been President & CEO for companies in the financial services, real estate and mortgage banking industry. He now runs 2 companies and coaches others on how to manage their money.

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By Jack Blacksmith

Did you know that you can deduct up to twenty five hundred dollars from your student loans interest? There are some rules to this however. Your loan is only eligible for the deduction if you took out the loan only for a higher education program that’s qualified by law. This can be not only for yourself, but your dependents and spouse as well.

The money for the loan must have been spent on expenses for college or vocational studies such as your tuition, textbooks, school supplies, any administrative fees, any type of equipment, your room and board, and transportation to and from school.

The student must be in a qualified degree program, and they must be a half-time student at least. As well, you’ll be obligated by law to repay the loan.

If someone else claims an exemption for the student, if you’re not allowed by law to get the loan, if the loan was obtained by a relative, or if the student is married to the receiver of the loan, but they are filing a separate return.

There are some limitations on what can be deducted and it’s best that you obtain all of that information ahead of time in order to save yourself from breaking any of the rules, ensuring that you get the most of your deduction.

As well, it’s important that the student is managing money efficiently. If debt is a major problem before going into the loan, then you may want to consolidate debt with a specific loan or program to do so. This will lower your monthly payments, and therefore lessen the burden on you in making your student loan payments.

Keep in mind that if you are paying your student loans after 2002, the “first 60 months” requirement on interest paid is discontinued, and deductions are permissible for voluntary interest payments, rather than only required payments as in the previous years. Also you take the deduction on either Form 1040 or Form 1040A.

It is a great benefit, and should be availed by all families, especially those families whose children aspire for higher education but cannot find sufficient funding. A tax deduction like this can help their parents cover a part of their requirements.

About the Author: Jack Blacksmith writes almost entirely for http://www.debtania.com , an online publication covering information on finance . You can find his abstracts on personal loan to consolidate debt over at http://www.debtania.com .

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By Felicia Glassmyre

When comparing your homeowner’s insurance quotes in Connecticut, be sure to compare policy terms and conditions with like terms and conditions. If you find a major disparity in insurance quotes, it might be a result of different property valuation clauses.

With homeowner’s policies, insurance companies normally use one of two types of valuation when determining the amount they will pay at the time of a loss. Check your policy to see which of the valuations is used because it will make a difference in your insurance premiums and your claim reimbursement check. The valuations are as follows:

–Actual Cash Value (ACV): With this type of valuation, the insurance company will take the current replacement cost of your home and deduct your home’s depreciation value. If you’re living in an older home, the depreciated value of your home may differ greatly from the current market value.

–Replacement Cost: With replacement cost, the insurance company will reimburse the amount it costs to rebuild or replace your home using materials of the same kind and/or quality to that used in the house prior to the loss. Depending on the age of the home, certain materials may no longer be available, so the insurance company will pay for comparable building materials. Because they do not deduct for depreciation, you will fare better than if the actual cash value was used.

Replacement cost valuation will cost more in annual policy premiums, but it is well worth the additional cost to be made whole again in the event of a loss. Your home is a major investment; do not scrimp on its protection.

When shopping around for your homeowner’s insurance, be sure to place the policies side by side and analyze the various terms and clauses. A simple difference in valuation can make a huge difference in the value and cost of your insurance policy.

About the Author: Recommended sites for low rate insurance

Lowest Cost Homeowner’s Insurance in ConnecticutBest Rate Homeowner’s Insurance in Connecticut

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By Bernard Pragides

Are you thinking of subscribing to an Identity Theft Protection company? Given the growing crime rate of identity theft, it is definitely wise to take this particular action in protecting yourself from identity theft. Here’s what you should know before subscribing to an Identity Theft Protection company.

An Identity Theft Protection company usually offers the following services:

1. Tracking of credit report, police report and medical records. Whenever your credit card is used or whenever your social security number is included in an application form, your Identity Theft Protection company will notify you. If the transaction was unauthorized, the company would then make a trace to find out who tried to use your identity. The company will also track down any unknown addresses that are affiliated with your name and will also take a look at the DMV records in your state.

2. Alerts in case of any suspicious activity. Once detected, your account will be frozen and you will have to confirm if it is indeed unauthorized. If it is unauthorized, your account will continue be frozen and the company will notify the authorities. If it is authorized however, your account will be reactivated immediately. This is very helpful as normally the only way you would know of this is if you are already harassed by collection agencies or when you try to get credit only to find your credit rating has been thrashed.

3. Assistance in the process of clearing credit. Should the thieves be successful in using your identity, the company will help you with the police regarding warrants, as well as assist you in getting collection agencies to stop harassing you for debts that aren’t yours.

An Identity Theft Protection company offers various plans:

The basic plan usually covers tracking of your credit report and alerts in case of suspicious transactions. You will also receive notifications every time a new account is opened or a new inquiry appears on your report. Given the rise of competition in lending, note that many lenders offer this basic plan for free.

Meanwhile, in a more detailed plan, you can receive monthly reports (as compared to yearly reports in a basic plan) and counseling services. Some Identity Theft Protection companies also cover out-of-pocket fees in case you become an identity theft victim. This detailed plan usually charges a reasonable fee of $100 per individual or $150 per household annually.

There are also comprehensive plans available which covers each and every cost the consumer incurs through identity theft. Obviously, this service would warrant higher fees.

A few examples of top-notch Identity Theft Protection Companies include LifeLock Identity Theft Protection and Equifax Credit Monitoring Service. Note that LifeLock offers $1,000,000 Identity Theft Protection Service Guarantee.

Subscribing to an Identity Theft Protection company is just one of the ways you can protect yourself from identity theft. There are other simple steps you can take like being more cautious in all your transactions and being more careful with regards to your personal information. You certainly can’t go wrong with taking extra precautions when it comes to protecting yourself from identity theft.

About the Author: Author and internet entrepreneur Bernard Pragides offers expert advice and tips regarding identity theft. Learn more about identity theft and fraud by visiting his

identity theft blog

at http://www.LifeLockBlog.com for more helpful information.

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