Archives for December 2012

What Can You Put In Your IRA?

One of the great things about an IRA is that you can hold a number of different investments in the account. While you can hold bonds, stocks, and cash in your IRA, it's also possible to add even more asset classes to your IRA.

When you open a self-directed IRA, you have more options (since you aren't limited by the offerings of a brokerage). You can add real estate to the IRA, as well as certain (not all types of coins can be held in your IRA) gold and silver coins minted by the U.S. Treasury, limited partnerships, mortgages, notes, and even oil and gas royalties. You can also hold your stock options in an IRA.

Right now, there is a lot of interest in diversity, as well as finding ways to shield income from taxes. Putting assets in an IRA is one way to do that while saving up for retirement.

What CAN'T You Put In Your IRA?

Of course, even though many people see IRAs as flexible when it comes to retirement investing, the truth is that you can't just put anything into an IRA — even if you have a self-directed IRA. Some of the assets that can't be held in an IRA include:

Some derivative positions, such as naked call writing
Life insurance
Collectibles

However, even with the items that you can put in your IRA, there are often rules. For example, most coins are considered collectibles, and ineligible for an IRA. However, coins that can also be used as currency can be included in your IRA. You can hold American Eagle (gold and silver) and American Gold Buffalo coins in your IRA. It's also possible to hold Canadian Maple Leaf and Austrian Gold Philharmonics coins in your IRA.

And, even though you can hold real estate in your IRA, there are quite a few rules involved, including one that says that you can't hold property that you actively manage in your retirement account.

Should You Put Alternative Assets In Your IRA?

As always, just because you can do something doesn't mean that you should. It can get pretty tricky to make sure that you are doing everything right with these types of assets. Opening a self-directed IRA can help. Additionally, it's also possible to help keep things separate by opening different IRAs for your alternative investments, such as opening a self-directed IRA devoted just to your real estate holdings.

Remember, too, that some alternative investments come with hefty premiums. You might lose some advantage due to the high prices involved with some investments. That means that you could very well end up with real losses (or gains that aren't as great as expected), even though you feel better about your diversity. Carefully consider the regulations, as well as the costs, before you start adding unusual investments to your IRA. In some cases, you might be better off gaining diversity with the help of trusts, funds, and other more standard investments that are not gray areas for the IRS.

Boost Your Job Prospects For The New Year

By Miranda Marquit 2 Comments

A new year is coming, and with it a certain amount of hope. Many of us look forward to a new year as a fresh beginning. A way to make a new start that results in a better situation in life and in finances. One way that you can improve your quality of life, as well as your finances, is to work to improve your job prospects for the new year.

According Money magazine, 2013 will offer the best chance for you to get a new job — or a raise — since 2007. That means that next year could be a good one for you, as long as you are poised to take advantage of the potential opportunities provided for the climate.

Brush Up on Your Skills

Look at your skills. What do you have to offer an employer? Do you have marketable skills that others value? Evaluate your current skills, and see where you can brush up. Is there a certification that you can achieve in order to make yourself more desirable? Could you finish a degree that would qualify you for a new job, promotion, or raise?

It's not just about developing hard skills that are easily recognized, either. You should also make an effort to develop your soft skills. More and more, employers value someone who can communicate well in writing and in speech. Additionally, good leadership qualities and problem solving skills can go a long way. If it is clear that you are adding something to the company, you are more likely to be valued. Or hired on at a new company that values what you can bring to the table.

Find ways to build upon what you already know, and show that you are capable and that you add value. Brush up on all your skills so that you are ready to take things to the next level. Often, that's all it takes to get a better job that you like more than your current position, or land the raise you have been looking for.

Prepare Your Job Hunt Materials

Don't go into the new year unprepared. Now is a good time to prepare your job hunt materials. Even if you want to try for a promotion or a raise at your current work, it doesn't hurt to update your resume, cover letter, and network contacts. If you don't get what you had hoped for from your current employer, being ready for the job hunt can go a long way toward helping you land a new position in 2013.

If you are refreshing your networking contacts, make sure that you reach out now, and re-establish those old ties before you decide to look for work. You want to have a solid relationship in place before you start calling for help. And remember to return the favor if you can. Get everything up to date, and maybe even think about creating an online resume that's easy for others to find. Don't forget to clean up your social media profiles and make an effort to appear attractive to employers through the Internet. More and more, that matters.

This could be the year that you turn your career around. Prepare now to make those changes in 2013.

How To Avoid Paying 3 Common Fees

By Miranda Marquit 3 Comments

No one likes to pay extra money. However, there are a number of fees that you end up paying as you go through life. Indeed, it seems as though there are always new fees cropping up everywhere you turn, whether it's an increase in ATM fees, or whether you discover that you can no longer check even one bag for free when you fly.

If you want to avoid some of the more common fees, it is possible, with a little planning.

1. ATM Fees

avoid paying fees One of the ways that you can avoid ATM fees is to look for a bank that doesn't charge you for using the ATM. At the very least, your bank shouldn't charge you when you use one of its own machines. There are also financial institutions that will reimburse you for fees you incur at other banks' ATMs. But if you don't want to switch banks, and you are tired of trying to find the “right” ATM because you aren't reimbursed, you can follow another path.

Many stores will give you cash back when you use your debit card. If you can get cash back at the grocery store, or while you are running other errands, just by using your debit card, you might as well get cash back. Then you'll have the cash you need — and you won't even have to make an extra trip to the ATM, and you won't have to worry about fees.

2. Airline Bag Fees

Among the more recent additions to the world of annoying fees is the airline bag fee. You used to be able to bring two bags for free, then it was one bag. Now there are some airlines that charge for your first checked bag. However, there are still some airlines (like Southwest) that have more generous checked bag policies.

Another option is to join an airline loyalty program. Some programs provide you the opportunity to check your bags for free if you obtain “premier” or “elite” status. Many airline branded rewards cards also help you avoid airline bag fees (but then you have to be on the watch for offsetting your savings with interest and other credit card fees).

3. Shipping Fees

More and more, if you want to avoid shipping fees, many online retailers are obliging. However, the catch is that you often have to purchase a minimum dollar amount. If you are making numerous purchases, or are planning one big purchase, this can be helpful. We used to plan our Amazon.com purchases waiting until we had enough to qualify for free “super saver” shipping. However, since we signed up for a Prime account, we get two-day shipping on much of what we buy.

Other ways to avoid shipping include going to FreeShipping.org, as well as looking at other rebate and promo web sites for codes that can help you get free shipping.

With a little planning, you can find good deals, and you can avoid paying some common fees. Spend a few minutes looking around for other options; you might be surprised at what's out there.

5 Tips for a Successful Homemade Christmas

By Miranda Marquit 1 Comment

This time of year is often rather expensive. It's hard to stay on budget, even with the help of tools like layaway, and careful used credit cards.

One way to reduce your costs during the holiday season is to go for a homemade Christmas. Not only can you save money, but you can also produce unique gifts that are personal for the recipient. Here are some tips for making your homemade Christmas a little more successful:

1. Be Thoughtful

homemade christmas Your first priority with any gift is to be thoughtful. Think about the recipient might enjoy, and use. Consider favorite colors, as well as the function of the gift. In some cases, it makes sense to make a favorite treat, or create something in a particular style. Really consider what makes the recipient tick, and what he or she would appreciate.

2. Encourage Others to Participate

I know families that make it a tradition to do a homemade Christmas. This includes extended families in some cases. If everyone participates in the homemade Christmas, then it is more likely to be acceptable to everyone. It's a fun tradition to have, and even the kids can get involved. Encourage everyone to create homemade gifts, and it might surprise you to discover others' talents.

3. Play to Your Strengths

I'm terrible at crafts. I just don't have that artistic bent. I can do some simple things (I crocheted a scarf for my son), but, for the most part, those types of projects aren't going to be a success. I do, on the other hand, enjoy baking and making candy. I usually make chocolate truffles for Christmas gifts, as well as making other baked goods. Think about your strengths, and what you are good at. Then, create a gift based on what you are good at.

4. Consider Services

Perhaps you don't have a penchant for actually making something. But maybe you have a skill or a talent that others could use. One fun idea for Christmas is to encourage everyone to exchange gifts of service. You can offer to babysit your sister's kids while she enjoys a night out with her husband. Offer to wash a car, clean a house, or edit a school paper. I know a family that, instead of exchanging physical gifts, chooses to each offer some small service as a gift. They write the service neatly on a pretty piece of paper, and wrap it in a small box. It's fun to open, and everyone enjoys the feelings that come with providing service.

5. Be Gracious

Finally, if you want a truly successful homemade Christmas, you need to be a gracious recipient. Whether you give homemade gifts or not, you should be thankful, and show your gratitude, when you receive a homemade gift from someone else. Be a gracious recipient, no matter the circumstance. You'll feel better because your graciousness will cheer the giver. Remember that part of a good holiday is being kind and thoughtful to those who have been good enough to remember you with a gift.

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