Archives for January 2013

Selling Old Bonds, Stocks, And Investments

Investments are a great way to build your personal capital. Usually you find something like property, stocks, art, or other things that will grow in value over time and you put money into it and then wait. But eventually it comes time to sell your investment, or get your money out. In some cases you may have even inherited the investment item and are wondering, now what?

Old Stock Certificates

From time to time you may run into actual stock certificates from a former investment, these are sometimes also referred to as bearer form stocks. Finding these may mean you found a treasure that has been steeping in value, or a piece of paper from a ‘once was’ company. To cash these in you need to find out the company they belong to by looking at the CUSIP number. With that you can do research at libraries, or sites like Yahoo Finance to find out more about the company, if it is still trading, and how you can connect with the transfer agent who can put the certificates in your name.

If you are able to do that, then you can sell your bearers for current market value, but if there is no information or the company no longer exists or trades, then you can shred the certificates because they are no longer valuable.

Time Shares

Time shares became popular in the mid 1980’s as a great way to enjoy a vacation and “second home” experience, without having to actually buy a second home. But after having the time share for a while, individuals could see it wasn’t always easy to sell or get out of. Stacy Johnson of MSN Money online gives some really good advice for selling:

Try to sell it back to the company you purchased it from.
Sell to other time share owners.
Use a nearby broker. They will charge a higher commission than when selling a house but they have resources you won’t.
Sell online at sites like RedWeek, Timeshare User’s Group, My Resort Network, and TransAction Realty.
Utilize popular selling sites like Craigslist, or even Ebay.

Selling Annuities

According to CNN Money annuities are popular insurance investment products for individuals, particularly as part of a retirement plan. The policy is made so that it pays out in incremental payments over a predetermined time period, or it can be paid out in one lump sum. Because of how they are set up, one way to sell them is by getting structured settlement quotes so you can get the money without having to wait. Integrity Funding states that this is actually very common because many people want the money to pay for college, purchase a house, or even start a small business or other costly adventure.

Getting Rid of Bonds

Bonds are basically IOU’s from companies who have a “debt security” with an investor who basically loans them money on the idea that it will be returned at some point in the long term future with some financial appreciation. When you are ready to sell your bond, you are wise to connect with a broker who can help you. You can also sell them on the open market, but unless you are a professional, it can be better to let a brokerage do it for you.

All too often selling investments isn’t as easy as buying them. Make sure to know when you buy an investment what you need to do on the other end so you are prepared when the time comes.

Do You Have To Quit Your Job To Be Financially Successful?

By Miranda Marquit 7 Comments

One of the themes that seems to circulate is that in order to find true financial success, you have to start your own business with the idea of eventually quitting your day job.

While many of us like the idea of working from home (often in our pajamas), a home business isn't for everyone. Indeed, there are plenty of people who are just fine working for “the man” — and that's ok.

Do You Really Want to Quit Your Job?

Do You Have To Quit Your Job To Get Ahead? My husband teaches a couple of online courses for a local university each semester. The reality is that, if he wanted to, he could teach all online courses. He could work from home, and make decent money doing it. However, while he enjoys teaching the online classes, he doesn't actually want to work from home. My husband enjoys interacting with others, and he likes going in to work. He wouldn't be happy going in from 9-5, but he likes his four-day workweek, and the flexibility in his schedule.

I also know others who like more traditional work hours. They like going in for eight hours a day, and clocking out at night. They like that they can forget about their jobs while they are at home, and they don't have to worry about whether or not they have enough freelance clients to cover all the bills each month. Other perks that people like from their jobs include health benefits, paid time off, bonuses, and other advantages, like on-site fitness and daycare.

There's nothing wrong with enjoying your job, and there's nothing wrong with climbing the career ladder for 20 to 30 years until you retire. As long as you live within your means, and contribute to your retirement accounts, you can become financially successful, and still live the lifestyle you want. There's no rule that says you have to work toward quitting your job in favor of a home business.

What about a Side Hustle?

If you like your job, but want extra money, though, there are options. You can start a side hustle and earn money on the side. Plenty of people start side hustles as a way to fund vacations and other fun activities, as well as a way to pay down debt faster, or build up retirement savings. But starting a side hustle doesn't mean that you have to let it take over your life, or replace your day job.

Indeed, for some, the idea of turning a side hustle into a full-fledged business is repellant. After all, it's one thing to make a little money off a hobby you enjoy, doing it when you want, and taking the extra cash as it comes. It's quite another thing to be required to make money from your hobby. For some, turning a side hustle into a business means the death of a fun hobby. Is it really fun anymore when you have to force yourself to do it, and when it has to be profitable?

For many, a home business is a great thing. I love working from home, and I love the control and flexibility it usually gives me. But not everyone likes to work from home, and not everyone is happy running a business. Figure out what works for you, and work toward your financial success in a way that makes you happy.

On vs. Off Campus Living: The Pros And Cons

By Contributor 2 Comments

The first year of college is a milestone for many things, including individual freedoms, self-reliance, and personal development. It’s also a period of increase in frequent decision-making; suddenly, life comes with an abundance of choices – many of which don’t have black-or-white answers. Your course of study, your classes, your social circles, how you're going to pay for college and your extracurricular activities are of your own choosing. For many, so too is the decision of where to live: on or off campus.

Whether this choice arises your first or subsequent years (some schools have required on-campus living for freshmen), it’s an issue that deserves careful thought and consideration.

College Costs

Money

The first critical factor in your decision is cost. How much does it cost to live on campus, and how does that compare to living elsewhere in your city? While the price of campus housing may look expensive, many universities include meal plans and utilities in the overall cost. It’s important to calculate an off-campus budget that includes monthly bills and projected food expenses, and then to compare it your university’s housing packages.

You must also keep in mind that, if living off campus, you need to factor in commuting costs. Will you be driving a car to campus each day? Do you currently own a car, or do you need to purchase one? Make sure to calculate an estimated gas total for each month and determine if this amount fits in your budget for college.

Socialization & Community

One of the biggest pros to living on campus is the built-in social network around you at all times. Activities will regularly occur on or very near campus, and involvement is always easier when it’s at your fingertips. In fact, ease of access overall is a large advantage to living on campus. Classes will be closer, travel time will be shorter, and amenities (libraries, gyms, etc.) will be nearby.

On the other hand, living elsewhere in your city gives you the opportunity to become more involved with the community at large. Living on campus can keep you confined to a smaller microcosm within larger social networks. Especially for individuals who have chosen universities outside their home states, off-campus living might be the best way to take advantage of the whole city and gain more independence.

Opportunity

Your lifestyle and personality will act as strong determining forces when deciding on where to live. Do you see college life as incomplete if you don’t live on campus? Will you be missing out on a crucial collegiate experience? Would you rather live in a smaller, private apartment away from the chaos of student life, or do you like to be in the center of it all? Do you have specific living requirements, like a kitchen, or a specific roommate setup? Will you be working off campus or have a work-study on campus? The most important thing to consider is how your living situation will affect your ability to pursue opportunities and benefit your lifestyle. Considering all of these questions and weighing the pros and cons will lead you to the decision that’s right for you.

Angie Picardo is a staff writer for NerdWallet, a website dedicated to helping students find the best scholarships.

Long-Term Investing: Don’t Forget The Basics

By Miranda Marquit 2 Comments

One of my favorite shows is Downton Abbey.

My husband (who has a knack for keeping our DVR stocked with BBC period dramas) and I watch faithfully.

Whenever something financial crops up — from Thomas' ill-advised get rich quick scheme to general income inequities — I get a little more excited.

And boy, the Series Three premiere dropped a great big money problem on the Crawley family. Lord Grantham has made a huge investing mistake. He put a great deal of money in one stock, a Canadian railroad company, and that company tanked. Goodbye to the principal, to say nothing of the potential gains that have evaporated.

Watching that episode of Downton reminded me that, when it comes to long-term investing, it's important not to forget the basics — no matter what someone “in the know” tells you about the next hot thing.

Basics of Long-Term Investing

As you consider where to invest your money, it's important to think about making a plan, and then sticking with it. Here are some of the basics to remember when it comes to long-term investing:

Diversity: The main thing was that Lord Grantham put way too many of his eggs in one basket. When you invest, you want to make sure that you have adequate diversity. This includes investing in different asset classes, as well as making sure that there is some diversity across sectors, industries, and geographies. Diversity is one way to hedge risk to your investment portfolio.
Value: Look for value investments. Long-term value often means that you need to pay attention to the fundamentals. It's not about what's hot, and what's going up in price right now. It's what offers a good value for your investing dollar. Look to something that has solid underlying fundamentals, and you'll be more likely to choose an investment with staying power.
Don't panic: Long-term investing requires big-picture thinking. If you want to be successful, you can't panic and unload everything at the first sign of trouble. Volatility tends to smooth out a bit over the long-term. If you have decent diversity, and if you have invested in value, your portfolio will likely make it out of the latest crisis mostly intact for the long-term.
Consistency: You probably don't have a huge chunk of capital to invest, like Lord Grantham does, but you can still build your assets over time. This requires a certain amount of planning, and it requires you to stick to your plan. Dollar-cost averaging can be a way for you to consistently invest over time. You can consider investments like DRIPs, index funds, and ETFs that make it easy to buy partial shares and get started with a small amount of money. Invest consistently, and you'll increase your chances of doing well over the long haul.

The basics of successful long-term investing are generally rather boring. However, in many cases, a good plan and an adherence to the basics can help you build your wealth over time. Consider your plan, and resolve to stick to the basics, and you might be surprised at how positive the result can be.

The Real Cost Of Identity Theft

By Contributor 2 Comments

Approximately 15 million people a year are victims of identity scams. The financial toll from these victimizations is near $50 billion. Identity theft is a growing epidemic around the world, and people need to learn how to protect themselves before they become victims without even knowing it.

CBS published an article about a retired Connecticut US Army soldier named John Harrison. A few years prior to his retirement a man named Jerry Wayne Phillips stole his military I.D. and went on a shopping spree. He shopped at major home repair stores, bought high ticket electronics and even purchased new cars. Over 65 different accounts were created in Harrison’s name.

Within just four months Phillips had run up a tab of around $265,000 under Harrison’s name. Today Harrison still has $140,000 in debt he cannot clear which prevents him from personal purchasing, borrowing, and even opening a checking account.

Protecting Yourself From Identity Theft

Cost Of Identity Theft As overwhelming as it may seem, there are some simple things you can do to protect yourself from identity theft. One thing you can do is to put a fraud alert or credit freeze on your credit cards with all three major credit bureaus. There are three different types of fraud alerts that can be used to warn your creditors of potential crimes against your identity.

90 day fraud alert.
Extended fraud alert.
Active military duty alert.

With a credit freeze you can control who can have access to your credit report and when, which allows you to block potential thieves from gaining access to it.

Contacting The 3 Credit Bureaus

You can contact the 3 credit agencies to put a freeze on your account at the numbers or websites below.

Equifax: 800-525-6285 or www.equifax.com
Experian: 888-397-3742 or www.experian.com
TransUnion: 800-680-7289 or www.transunion.com

You can also ask to add a victim’s statement to each of your credit bureau reports asking creditors to call you personally to verify all credit applications made in your name.

Use Third Party Services To Protect Yourself

Another smart thing you can do is to work with professional services like LexisNexis identity management. They have the tools, staff, and expertise to work with credit services and watch your accounts. They also help by preventing fraudulent payments, and work with government agencies to reduce abuse.

Identity theft insurance is also now available to help with prevention and protection for consumers. Because these are fairly new services however, it is warned that customers take the time to make sure the insurance being offered will appropriately cover the type of loss you may have as a customer. You may also want to check with your existing insurance agencies as they may already have some kind of policy in place as a part of your current agreement.

Others Dealing With ID Theft

Identity theft can affect you in many ways, just like it did Malcolm Byrd:

I.D. was stolen by a drug dealer with a record.
Pulled over, handcuffed by police.
Lost his part-time and full-time jobs for not having disclosed a criminal record (which wasn’t his).
Denied unemployment because of criminal record.
His driver’s license was suspended for not paying fines (racked up by thief).
Loaned niece his car- she was pulled over and questioned.
Arrested at his home and jailed for 2 days.

Identity theft is a crime that can cripple you for life. It can have a ripple affect with your finances and personal identification that can cause you endless problems. Take the time and make sure your take some of these simple steps to protect yourself and your I.D.

Have you ever had to deal with identity theft? Tell us about it in the comments!

What’s Your Relationship With Money?

By Miranda Marquit 1 Comment

One of the things to consider with a new year is your relationship with money. We all have a relationship with money, and it's a good idea to pinpoint how you feel about money, and how you interact with money. Understanding your relationship with money can be a big help as you work to figure out how to create a spending plan for the coming year.

Are You In Control Of Your Money?

Ask yourself whether or not you are actually in control of your money. It seems obvious that money is an inanimate object and can't control you, but if you consider your situation again, it's possible to see how your money could be in charge of you.

Relationship With Money The easiest way to figure out whether your money is control of you is to look at what you have accomplished at the end of each month. Are you living paycheck to paycheck? Do you frequently have to pull out the credit card to make ends meet? If so, your money is probably in control of you. Rather than directing you financial resources, you are trying to keep up with your spending.

A new year is a good time to create a plan to take back control of your money. Think about how you are using your money to your advantage. Are you using your money as a means to an end? Think of your money as a tool, and you will be more likely to be in control. Look at your spending priorities, and consider what you might be spending money on that you don't actually need — or perhaps even want.

If you find yourself unhappy at the end of the month, wondering where all the money went, there is a good chance that your money is controlling you. Take back control by prioritizing your spending, and then dropping the unimportant items off your list.

How Do You Feel About Wealth?

Another consideration is how you feel about wealth. Think about how you feel about making money, and what you would do about wealth. There are a number of people who are frightened of making more money, due in large part to the possibility of lifestyle inflation, as well as concerns about what they would do with that extra money.

But your feelings about wealth aren't just about how you feel about making more money. Sometimes it has to do with your definition of wealth itself. For some people, “wealth” is having enough for their needs, and some of their wants, and being able to be financial free — while still having plenty of time to spend with their loved ones. Wealth isn't always just about making more money.

Think about how you define wealth, and then make a plan to live so that your values are in line with your spending. Really think about how you feel about money, and wealth, and what's next in your life. Working out your relationship with money can help you make better decisions in the long term and in the short term, and help you achieve the lifestyle you want.

Main Menu