Domestic Violence - Do You Know the Signs

Domestic Violence comes in many forms: physical, sexual, financial, emotional (verbal) or threats or violence. Domestic violence also includes behavior that can intimidate, hurt, humiliate, injure, blame, scare or harass someone. If you have been a victim get professional help via a counselor, therapist, pastor or psychiatrist.

Domestic violence can have a tremendous impact on your life and the life of your children. Getting help is the only way gain strength to prevent being abused again. Every 9 seconds a woman is assaulted. Most domestic violence cases are never reported to the police. Women ages 20-24 are at the greatest risk for domestic violence.

If you are someone you know has been a victim of domestic violence encourage them to leave their current situation and get help. Here are some financial tips to help former or current victims of domestic violence. According to the National Domestic Violence Hotline these are signs of domestic violence.

Emotional Abuse:

• Calls you names, insults you or continually criticizes you.
• Does not trust you and acts jealous or possessive.
• Tries to isolate you from family or friends.
• Monitors where you go, who you call and who you spend time with.
• Watches your time, how you long it takes you to go somewhere and come back.
• Does not want you to work.
• Controls finances or refuses to share money.
• Punishes you by withholding affection.
• Expects you to ask permission to do something.
• Threatens to hurt you, the children, your family or your pets.
• Humiliates you in any way.
• Yells at you and then later apologizes.

Physical Abuse:
• Damages property when angry (throws objects, punches walls, kicked doors, etc.).
• Pushed, slapped, bitten, kicked or chokes you.
• Abandoned you in a dangerous or unfamiliar place.
• Scared you by driving recklessly.
• Used a weapon to threaten or hurt you.
• Forced you to leave your home.
• Trapped you in your home or kept you from leaving.
• Prevented you from calling police or seeking medical attention.
• Hurt your children.
• Used physical force in sexual situations.

Sexual Abuse:
• Views women as objects and believes in rigid gender roles.
• Accuses you of cheating or is often jealous of your outside relationships.
• Wants you to dress in a sexual way.
• Insults you in sexual ways or calls you sexual names.
• Has ever forced or manipulated you into to having sex or performing sexual acts.
• Held you down during sex.
• Demanded sex when you were sick, tired or after beating you.
• Hurt you with weapons or objects during sex.
• Involved other people in sexual activities with you.
• Ignored your feelings regarding sex.

Here are 13 financial tips to help you get back on you recover.

1. Reduce spending
2. Open a savings account and open a checking account with overdraft protection
3. Pay bills online
4. Use direct deposit for paychecks
5. Update beneficiary paperwork for insurance
6. Open one new account in your name
7. Close any joint accounts and cancel the cards
8. Purchase life insurance
9. Remove your name as an authorized user from accounts
10. Start a retirement account
11. Create a will
12. Develop a support network to get advice, support and encouragement
13. Seek professional help

Here are 8 resources to help you get out of your current situation.
1. www.thehotline.org or call 800-799-7233
2. ncadv.org/resources/StateCoalitionList.php
3. ncadv.org/resources/OtherUSOrganizations.php
4. Berry, D.B. (1995) Domestic Violence Sourcebook. Los Angeles: RGA Publishing Groups, Inc.
5. Brewster, S. (2000) To Be An Anchor in the Storm: A Guide for Families and Friends of Abused Women. Seattle: Seal Press.
6. Browne, A. (1989) When Battered Women Kill. New York: Free Press.
7. Brownmiller, S. (1993) Against Our Will: Men, Women, and Rape. New York: Random House.
8. Davies, J., Lyon, E. & Monti-Catania, D. (1998) Safety Planning with Battered Women: Complex Lives/Difficult Choices. Thousand Oaks, CA: Sage Publications.

Retirement Tips

This is National Retirement Week. Have you saved enough for your retirement? If not, why? There are many ways to plan for retirement. Whatever method you choose it is a known fact that unless you are born in a wealthy family you will have to save for retirement. If you retire at age 65 you could live another 10-20 years which means you will need on average $1,000,000 to $1,600,000 depending on your salary.

This translates into contributing to a retirement account for a minimum of 20 years depending on your salary but more likely for 25 to 30 years or more on a consistent basis. The key to planning for retirement is to start planning as soon as your get your first job, planning early eliminates the need to play catch-up in your later years in life.

However, it is never too late to plan for retirement. No matter what your age you should put some money aside for your retirement even if you have to get a job after retirement which is better than having no money saved at all. Many people do not save enough and end up having to work well past their desired retirement age or have to get part-time jobs because social security is not enough to cover all of their expenses. Don't panic and get overwhelmed by the media, fear, anxiety and nervousness of those around you. Don’t let emotions cause you to make bad decisions. If it sounds too good to be true it is. Don’t let someone invest money for you that is not a licensed financial advisor.

How to Save for Retirement:
1. CDs/Bonds/Mutual Funds
2. Pay down debt
3. Contribute extra to your 401(k) or other retirement account
4. The motto is "buy low, sell high" is truly appropriate during an economic crisis. This is a great time to buy stocks or to invest in a mutual fund. When the market bounces back you will achieve great gains.
5. Sign up for matching employer contributions (free money)
6. Increase retirement contributions with each salary increase
7. Save at least 10-20% towards retirement
8. Scale back expenses within at least 1 to 5 years prior to your retirement date
9. Don't depend on your spouse's retirement account because your spouse may not have saved enough money for retirement
10. Review allocations yearly to make any necessary adjustments. Check your statement for any errors and notify your financial planner immediately.

Diversify at a minimum:
Pre-retirement invest 60% stocks, 40% bonds/cash; near retirement (5-10 years) invest 40% stocks, 60% bonds/cash; during retirement invest 20% stocks, 80% bonds/cash.

What to invest in:
1. Invest in emerging market funds (foreign markets)
2. Equities (mutual funds) or other items that return a dividend or capital gains
3. Pharmaceuticals
4. Oil and petroleum
5. Commodities (corn, soy, wheat, coffee beans, petroleum, copper, coal, salt, sugar, soy beans, aluminum, rice, gold, silver, palladium, platinum, electricity, gas, oil, etc.) when the prices are low.
6. Real estate, if the home’s value is low it can continue to decrease but over a long period of time you will gain equity and can make a profit
7. Defensive stocks don’t depend on economic prosperity such as the food and beverage industry, manufacturing companies such as Philip Morris, Proctor & Gamble and alcohol and tobacco
8. Under-priced stocks (offer price is lower than price of the first trade, however they carry a higher risk factor because they may not rise in the future) – IPO’s, airline stocks, small cap stocks, etc.
9. Utility stocks – water, gas, electric, telephone companies
10. Green technology and green energy stocks for long-term gains such as Canon, Green Mountain Coffee Roasters, Nike, Whole Foods, Google, etc.
11. Invest in Dividend Reinvestment Plan (DRIPs) to offset any losses you may have experienced or use it as an easy way to start investing.

The New Credit Score - Help or Hurt

Many consumers have been plagued with the never ending changing rules for calculating credit scores, it seems as soon as consumers understand the system it changes. Once again the FICO company is changing the credit score rules.

Due to the recession or one small transaction many consumers are on the line between good and bad credit, one small slip up could plunge their score in the bad credit zone, one debt payoff could boost their score to good credit and save them in interest and fees.

The new FICO8 credit score can potentially help consumers obtain higher credit scores or lower scores for others, some consumers score will not be affected at all. The FICO score ranges from 300-850, 850 being the highest score. FICO updates its scoring model every 2-3 years.

FICO claims the new scoring model is more precise because it considers more types of consumers. FICO8 rates people who have missed payments on small debts under $100 easier which could help millions of consumers improve their credit scores. These types of accounts will not have the same impact as a missed mortgage or credit card payment. The FICO 8 considers people with high credit utilization rates (credit card balances) to be higher risks than under the previous FICO model.

Major lenders have been slow to switch to the new scoring model. Three years after the actual release, most major lenders still have yet to adopt it and is absent in the mortgage industry.

In June 2011, Citibank implemented the new FICO8 credit scoring model. Bank of America is in the process of implementing the FICO8 scoring model. Fannie Mae and Freddie Mac continue to use the older FICO credit scoring model.

Almost half of consumers have FICO8 scores that are close to their scores from the previous version of the FICO score. The main ways to maintain a good credit score under the FICO8 model are: pay your bills on time, keep credit card balances low, and open a new credit account only when you need it.

The FICO8 will look at high credit card balances differently and maxed out credit cards will lower credit scores more. Isolated late payments will weigh less heavily on your credit score. Multiple late payments will weigh more and decrease your credit score. Authorized credit card accounts will be included when calculating your credit score. The FICO8 score will ignore collection accounts with balances less than $100. The five major actions that can greatly lower your credit score are: maxed out credit cards, foreclosure, bankruptcy, 30 day or more late payments, debt settlement or loan modification.

FICO says the new score will help consumers. We will just have to wait and see.

The History of Bank of America

Bank of America serves over 57 million customers with 5,900 banking centers and 18,000 ATMs in the U.S. Bank of America began in 1904 as the Bank of Italy in San Francisco by Amadeo Giannini to cater to immigrants who were denied service to other banks. In 1922, it was renamed as Bank of America and Bank of Italy branches. In 1927, Giannini consolidated Bank of Italy branches with Liberty Bank of America which was renamed Bank of Italy National Trust & Savings Association. In 1928, Giannini merged with Bank of America Los Angeles. In 1930, Bank of Italy was renamed Bank of America.

New technologies allowed credit cards to be linked to individual bank accounts. In 1958, the bank introduced the BankAmericard, which changed its name to Visa in 1975. Following the passage of the Bank Holding Company Act of 1956, BankAmerica Corporation was established to own Bank of America and its subsidiaries. BankAmerica expanded outside California in 1983 with its acquisition of Seafirst Corporation and its banking subsidiary, Seattle-First National Bank. BankAmerica continued to operate its new subsidiary as Seafirst until the 1998 merger with NationsBank.

BankAmerica's next acquisition occurred in 1992. The company acquired Security Pacific Corporation and its subsidiary Security Pacific National. At that time it was the largest bank acquisition in history. Federal regulators, however, forced the sale of approximately half of Security Pacific's Washington subsidiary, the former Rainier Bank. The combination of Seafirst and Security Pacific Washington would have given BankAmerica too large a share of the market in Washington state. The Washington branches were divided and sold off to West One Bancorp (now U.S. Bancorp) and KeyBank. Later that year, BankAmerica expanded into Nevada by acquiring Valley Bank of Nevada.

In 1994, BankAmerica acquired the Continental Illinois National Bank and Trust Company of Chicago. At the time, no bank had the resources to bail out Continental, so the federal government operated the bank for almost a decade. Illinois at that time regulated branch banking extremely heavily, so Bank of America Illinois was a single-unit bank until the 2000.

In 1997, BankAmerica acquired Robertson Stephens, a San Francisco-based investment bank. The bank was integrated into BancAmerica Securities and the combined subsidiary was renamed BancAmerica Robertson Stephens. BankAmerica was acquired by NationsBank in October 1998 and took the name Bank of America Corporation.

In 2004, Bank of America announced it would purchase Boston-based bank FleetBoston Financial. Also in 2004 Bank of America acquired Louisville from National City Corporation and rebranded it as BA Merchant Services. Bank of America also purchased FleetBoston Financial. On June 30, 2005, Bank of America announced it would purchase MBNA and was renamed FIA Card Services.

In August 2006 Banco Itaú agreed to purchase Bank of America's operations in Chile and Uruguay. On November 20, 2006, Bank of America announced the purchase of The United States Trust Company for $3.3 billion, from the Charles Schwab Corporation and the deal closed July 1, 2007.

On September 14, 2007, Bank of America won approval from the Federal Reserve to acquire LaSalle Bank Corporation from Netherlands's ABN AMRO North America and the deal closed on October 1, 2007.

On August 23, 2007 the company announced a $2 billion repurchase agreement for Countrywide Financial and the deal closed in July 2008. Countrywide Financial changed its name to Bank of America Home Loans. On September 14, 2008, Bank of America announced its intentions to purchase Merrill Lynch & Co., Inc. and the acquisition effectively saved Merrill from bankruptcy. This acquisition made Bank of America the largest financial services company in the world and the deal closed January 1, 2009.

Bank of America received Troubled Assets Relief Program (TARP) money twice as part of the deal of the merger with Merrill Lynch and repaid the $45 billion it had received from the TARP Program. On August 3, 2009, Bank of America agreed to pay a $33 million fine, without admission or denial of charges, to the SEC over the non-disclosure of an agreement to pay up to $5.8 billion of bonuses at Merrill Lynch. The bank approved the bonuses before the merger but did not disclose them to its shareholders when the shareholders were considering approving the Merrill acquisition.

In 2010, the bank was accused by the federal government of defrauding schools, hospitals, and some state and local government organizations due to misconduct and illegal activities involving the investment of proceeds from municipal bond sales. As a result, the bank agreed to pay $137.7 million, including $25 million to the IRS and $4.5 million to the state attorneys general, to the affected organizations to settle the allegations.

Former bank official Douglas Campbell pleaded guilty to conspiracy, antitrust and wire fraud charges. As of January 2011, other bankers and brokers are under indictment or investigation. Early in the year, the company conducted or announced personnel reductions of 36,000 people.

Bank of America provides services: personal banking, small business banking and corporate and institutional banking. Services provided in personal banking include: credit cards, mortgage, auto and personal loans, insurance, investment services, online banking, home equity and retirement. Small business services include: business checking and savings, credit cards, online banking services, automotive services and health insurance.

Why Athletes Need a Plan B

Recently in the news there have been countless stories of professional athletes who have filed bankruptcy or are broke, in some cases due to the NBA lockout. Many people have asked how is this possible, how can someone who makes millions of dollars a year be broke. The answer is – there is a difference between being rich and being wealthy. Many athletes get caught in the frenzied lifestyle of buying multiple cars, homes, jewelry and spending money without tracking it. When their career is over the money is gone and they are forced to file foreclosure or bankruptcy.

Nothing lasts forever and that includes money. They don’t realize that the money will eventually stop coming in if you don’t have a plan B. Many athletes are focused on their sport, put all of their trust in their support staff and don’t take the time to learn how to manage their money and make it grow. Based on the pension plans of many professional athletic organizations all athletes should have a plan B. As we have learned from other professional athletes who trusted their financial staff, sometimes you have to take control of your financial destiny. Sports pension plans are another reason why athletes should have a plan B.

The NFL offers full benefits at age of 55, with a minimum payout of $200 a month for each season played in the NFL for playing at least 3 years in the league after 1992 or 4 years prior to 1992. NBA
players receive a minimum of $200 a month up to a maximum of $306.34 per month for each season played regardless of performance.

NHL players pensions require at least 160 games played for eligibility and are determined by the length of a player's career. Players who played less than 400 games can receive $8,000 per year starting at age 45. Players who played more than 400 games can receive $12,500 per year starting at age 45 and can receive an additional $250,000 a year starting at age of 55. MLB players can receive a pension after 43 days and can receive full medical benefits after one day. PGA players receive a pension based on a complicated formula to determine earnings for retired players with benefits starting at age of 50. If they continue to play benefits start at age 60. NASCAR does not offer a pension plan. Here are 14 ways professional athletes can develop a plan B.

1. Budget. Track your money in addition to hiring an accountant, lawyer, financial advisor and other financial industry professionals. Create a budget and don’t spend than your budget allows. Track spending, daily, weekly or monthly. Use online tools such as mint.com or online banking to help track spending.
2. Checks. Sign your checks. You can set a dollar limit for checks that do not require your signature but still be aware of what the check is for and verify that check is being paid to a legitimate company.
3. Scams. Be aware of scams. If it sounds too good to be true it usually is. Do research on the latest “hot business or financial tip” you get from a friend or associate. There are no quick ways to make money. Growing your money takes time so be patient.
4. Spend Less. Always spend less than you earn. Create a balanced budget. Learn how to stretch your dollar. A balanced budget is based on income after taxes and consists of: housing 35%, debt 15% (excluding mortgage), savings 10% (minimum), transportation 15%, and other expenses 25%.
5. Gossip. Ignore gossip and comments from others about what you should or should not have or how you should spend your money. They usually don’t have any money or have bad spending habits.
6. Impress. Avoid keeping up with the Jones’. Newsflash – the Jones’ are broke too.
7. Value. Forget about impressing people with what you have on the outside, impress people with what you have on the inside. Realize that your self-worth cannot be defined by material possessions.
8. Void. You cannot fill a void in your life by buying things or spending money. If you have a void in your life, seek professional guidance on how to eliminate the void.
9. Change Your Thinking. Change the way you think about money, live like a wealthy person instead of a poor person. Wealthy people shop at Wal-Mart, are informed consumers, are financially savvy and find ways to make their money grow. They don’t purchase in excess or buy things that have no value.
10. Educate. Educate yourself about how to successfully manage your finances and make your money grow. Review your financial statements each month to check for errors and ask questions if you don’t understand something. Read self-help books or articles on how to manage your finances with books by experts such as: Warren Buffet, Donald Trump, Napoleon Hill or The Millionaire Next Door.
11. Protect. Protect your wealth. Create a will and trust, and get health, life, disability, long-term care insurance to protect your finances and prevent you from going into debt if you become ill.
12. Future. Plan for tomorrow instead of living just for today. Instead of buying a home that costs $1.5 million, buy a home that costs $750,000. Instead of paying for expenses for all of your friends and family members provide options for them to make their own money. If they are physically able to work there is no need to take care of adults unless it is your parent or grandparents.
13. Outlook. Read self-help books on how to find happiness within. People who manage their money and people who are happy are less likely to spend money frivolously or are less likely to be in debt. Don’t dwell on what you don’t have, focus on what you do have and pass on life lessons to help others.
14. Legacy. For every action there is a reaction. Create a reputation for yourself that shows you excel in every aspect of your life. Don’t be a question mark when you die. Ensure your reputation will be something people will remember and speak highly of; you don’t want to be remembered as he used to have money, or he made millions but lost it, he could have been this or he could have been that. Be exceptional.

Everyday Fixes for Credit Scores

Credit. Credit. Credit. Do you ever get tired of people talking about credit or asking for your credit score? Companies used to have IOUs and you would pay them back when you could. Credit has become an ugly monster in the world of finance. It has destroyed lives, caused suicide, caused health issues such as high blood pressure, depression, fear, anxiety and hopelessness. Is this the effect that credit card companies had in mind when they created credit in the 1950s? I don’t think so but greed has caused them to operate as a mafia.

Some owners, customer service representatives and collection agencies have no remorse, no feelings, and refuse to provide good customer service to help clients who are willing to pay back debt owed. Sometimes you feel as though you committed a crime based on how potential employers, current employers or companies treat you when they look at your credit score or when you owe a company money.

Credit is one of the most important aspects of your financial life. It is easy to create a credit history but can be hard to maintain. One you have bad credit it can take years to recover and establish good credit again. Here are 13 everyday tips on how to raise your credit score.

1. Pay bills on time
2. Get current on late payments
3. Pay more than the minimum monthly payment – pay multiple times per month
4. Pay late accounts in 3 installments
5. Re-age accounts
6. Get paid delinquent (negative) accounts removed from your credit report
7. Ask for a settlement or setup payment bills for late accounts
8. Ask a company not to report a late payment on your credit report if it is less than 90 days late
9. Open a secured credit card or a department store credit card to establish credit history or increase your credit score
10. Avoid cash advances, payday loans and home equity loans to pay down debt
11. Don’t open new accounts often
12. Don’t close old accounts that are 2 or more years old, this will lower your credit score
13. Keep credit card balances at 20% or less of the credit limit

Bank of America

In my article entitled, “Are Debit Cards Dead” on my blog on September 16, 2011, I mentioned that some banks would increase their ATM and other fees to $5 due to the changes from the Dodd-Frank Act. No matter how much money a company makes or losses they still find a way to pay their executives millions of dollars a year, so why can’t they pay their debt and manage their money better.

Free checking at some banks such as Bank of America will be eliminated. TD Bank still offer debit cards. Some banks have eliminated or reduced debit card rewards programs. Chase, SunTrust, Continental and United ended their debit card rewards program. Other banks charge business owners a fee when using a business debit card. Bank of America will begin charging customers that use debit cards a $5 monthly fee regardless of the number of purchases made starting early next year.

Debit cards are good because:
• Prevents consumers with bad credit from overspending
• Yu don't have to carry cash, a checkbook or traveler's checks with you
• They are accepted at many locations
• Is easier to obtain than a credit card
• You don’t have to show identification or give personal information at the time of the transaction
• Returning goods or canceling services treated the same as cash
• Avoid finance, interest charges and late fees
• May get perks such cash back rebates, airline miles, etc.
Debit cards are bad because:
• There is no grace period
• Some banks may charge a fee for using a check card as a debit card
• Transactions are verified to see if there are adequate funds
• Some banks process debit charges although insufficient funds are in the account and you will be charged $30 for every transaction that occurs when the account is overdrawn
• May not be accepted by some merchants unless it has a Visa or MasterCard logo
• May place a hold on your debit card for more than the cost of the purchase
• Provides less protection for purchases but you may dispute unauthorized charges or other mistakes within 60 days.

In my article entitled, “Do You Have Swipeitis” on my blog on July 7, 2011, I mentioned that we are addicted to using our debit cards. Here are 13 alternatives to make purchases without using a debit card.

1. Create a budget. Create a budget to track your spending daily or weekly. Set aside a specific amount for extra things you want. One reach that amount don’t spend anymore.
2. Pay your bills first. Pay your bills first. Put a portion of any extra money left over in a savings account.
3. Switch banks. Switch to another bank that has little to no fees.
4. Alternate payment. Write checks, get money orders or cashier’s checks, and use automatic paycheck deduction or online banking to pay bills.
5. Credit union. Switch to a credit union which generally offers the same products and charge lower fees.
6. Pay with cash. Go to the bank or ATM and take out the amount of cash you need for the week. Once you spend that amount don’t withdraw any additional money unless it is an emergency.
7. Use prepaid debit cards. Use prepaid debit cards to make purchases.
8. Local branch. Go to your local branch and make transactions.
9. Get a receipt. Get a receipt each time you make a purchase and keep it.
10. Track spending. Take all of your receipts from your debit card purchases and put them in an envelope. At the end of each week add up the receipts to see how much you spent. Use pen and paper, an Excel spreadsheet or Mint.com.
11. Wait. Wait a few days before making a purchase. Go back to the store to see if you still want the item. If you still want the item, comparison shop to see which store offers the best price.
12. Impulse Shopping. Avoid shopping when you are emotional. This will prevent you from spending more than you have or buying unnecessary items.
13. Leave at home. Leave your debit card at home unless you know you will make a purchase. This helps to reduce the temptation to make an unnecessary purchase.

The best way to send a message to Bank of America that you are not happy with the new debit card policy is by switching to another bank.

Starting Over is Not So Bad

“Ever tried. Ever failed. No matter. Try Again. Fail again. Fail better” by Samuel Beckett is a great way to explain why you should start over. Making a change is grueling and doesn’t happen overnight. If you want to make a change in your life you have to first change your thinking. Thoughts become feelings, feelings become words and words become actions. You may have to relocate, change your job, change your friends, change your diet or change every aspect of your life.

Change is scary but that is a part of life and growing. As a baby you totally depended on your parents to carry you around because you couldn’t walk. You began crawling then taking steps to walk. Babies are overcome with fear, once the overcome their fear they began walking, then running, then talking then talking and running all over the place.

Change is good. Over 1.5 million people filed for personal bankruptcy in 2010. Over fifty six thousand businesses filed bankruptcy y in 2010 (56,282). Henry Ford went broke five times before he started Ford Motor Company. R.H Macy failed seven times before opening his Macy’s store in New York City. Colonel Sanders (Harland David Sanders) of Kentucky Fried Chicken recipe was rejected 1,009 times before a restaurant accepted it. Thomas Edison made 1,000 unsuccessful attempts at inventing the light bulb.

Making a change takes time and effort. After failure comes success but may require that you fail multiple times before you become successful. Being successful is hard work. Anything worth achieving is worth working hard for. The difference between being a failure and being a success is your attitude. If you choose to remain a failure you will. If you choose to see the failure as a lesson and don’t repeat the same mistake you will become a success. Failure is the seed of success. Failure helps birth success as evidenced by successful people in the world today. Failure is a great lesson; it shows you what didn’t work and what you need to be do better next time. Failure helps you to develop a plan B, C, D or even E.

Failure happens so expect it but don’t dwell on it. I have been a failure several times in my life, in my career, relationships, and with money. I went to college and got my first credit card at age 17. By the time I graduated college I had 13 credit cards and racked up $19,000 in debt, one was a gas card and I didn’t even have a car or a driver’s license. When I got my first job I was only making $21,000 a year. I failed at using a credit card and continued to fail for 4 years. When I lost my job and realized that I was unable to pay my bills, the light bulb came on and I knew I could not continue to fail at using credit. I made a decision to get myself out of debt and never get into debt again and I did. The only debt I have is my mortgage. Here are 5 ways why starting over is not so bad.

1. Never say never. We don’t know what the future holds so don’t assume that your current state in any aspect of your life will remain that way, plan for the unexpected.
2. Be a winner. Decide you will be a winner and take steps to overcome your situation. Let go of your pride and ego. Humble yourself. Ignore advice from those who are not successful.
3. Future. Be a role model for your children, family and future generations to show them that failure is not a permanent option; it is merely one stop in the path of life.
4. Change is good. Sometimes change helps us to refocus on what is really important so don’t reject change, embrace it.
5. Outlook. Change your outlook on life. Eliminate negative behaviors, thoughts and people from your life. Read inspirational articles or books such as “The Secret” by Rhonda Byrne, “Think and Grow Rich” by Napoleon Hill or The Law of Attraction.

Top Notch Investing Tips

An economic recession is the best time to invest because companies are hurting for business and are eager to get new clients. In addition, stock prices are lower so you will get more for your buck by purchasing shares at lower prices.

You will need at least 70-80% of your income during retirement so contribute as much as you can each year. It is never too late to start investing, it’s better to have a small amount than nothing at all. Here are 9 beginner investing tips.

1. Sign up for your employer's retirement plan and use the matching contributions benefit.
2. Setup a separate IRA using automatic paycheck deduction to help reduce taxes and in the event your employer goes bankrupt. Invest with an established investment company or brokerage company such as Charles Schwab or Price Waterhouse Coopers and ask questions about your investments.
3. Invest in mutual funds if you are not knowledgeable about investing.
4. If you have some extra money to play around with you can invest in companies that never go out of business: grocery stores, oil companies, car repair shops, pharmaceutical companies, information technology companies, etc.
5. Diversify your portfolio to minimize losses. Put a portion of your money in stocks/mutual funds, a portion in low risk investments such as bonds and a portion in medium risk investments such as large cap funds, etc.
6. Review your retirement statement to check for any errors.
7. Educate yourself and know at least the basics about investing so you will know whether your financial advisor is providing you with correct advice.
8. Find an investing mentor or role model. Ask questions and get advice on investing and how to grow you money in the stock market.
9. Gain additional knowledge by reading books by investing experts and watching financial television shows or reading articles on financial websites.

Extraordinary Ways to Pay Off Debt

The recession is not over. Unemployment is still at 9.1%. Over 1,000,000 Americans have foreclosed on their homes last year. If you employed and are in debt, get out of debt as soon as possible. The future is unknown. Americans have to plan for their future which includes eliminating debt, saving and investing. It took a long time to get into debt and will take a long time to get out of debt – but with patience, sacrifice and dedication you can live a debt free life.

A budget is a critical component of paying down debt and determining how much money you earn, you owe and you spend. This can be done using a tool or pen and paper either daily, weekly or monthly. One critical component of getting out of and staying out of debt is creating an emergency fund.

A unique way to get out of debt is to follow the Voluntary Simplicity Movement which only allows for purchasing basic necessities. Pay down debt using online banking or automatic paycheck deductions. Here are 13 ways to pay down debt.

Car Loans

1. Shorten time. Get a car loan for 4 years or less. Then pay off the loan before the payoff date. Cars depreciate quickly and lose most of their value for loans that are extended beyond 5 years.
2. Interest. If your interest rate is higher than 6%, after six months refinance to get a lower interest rate.
3. Maintenance. Keep your car well maintained and visit a mechanic using the factory suggestions which helps saves money. Keep your car for at least 7 years instead of trading it in to get a new one.
4. Insurance. Keep your car properly insured with affordable deductibles. Paying high deductibles saves you money upfront but causes you to spend more money on accident repairs and delays getting much needed repairs.

Mortgage

1. ARMs. Avoid getting ARMs or balloon payments. These are risky options. If you must get an ARM or balloon payment get mortgage insurance that pays your mortgage payment if you become disabled or lose your job.
2. Refinance. If your interest rate is higher than 6%, after six months refinance to get a lower interest rate. This will reduce your monthly payment and save you money over the life of the loan.
3. Pay off. Send extra money towards your principal to pay your mortgage off faster. Don’t retire until your home is paid off. Once you have at least 20% equity in your home under a conventional loan you no longer have to pay PMI so ask your lender to re-assess your home to have it removed. This will save you money on your monthly payment.
4. Avoid borrowing equity. Avoid borrowing equity against your home to pay down credit card or other debt, go on vacation or pay for home repairs. If you default on the home equity loan or home line or credit you risk losing your home and this will lower your credit score.

Credit Cards

1. Pay more. Pay more than the minimum monthly payment. Pay the balance in full each month or pay multiple times a month by sending a payment each week or during each pay period.
2. Stay low. Keep credit card balances at 20% or less of the credit limit to keep debt low. Debt should be no more than 15% of your total monthly budget after taxes. Credit cards with balances at 30% or above the limit will lower your credit score.
3. Stop spending. Skip using your credit card like a debit card. Charges can add up quickly. Leave your credit cards at home. Use credit card for emergencies only. Pay for items with cash. If you don’t have the money to pay for it, don’t buy it.
4. Avoid quick fixes. Avoid getting a cash advance or balance transfers. Interest rates on cash advances are higher than the regular credit card interest rate and can cause your credit card balance to quickly increase. A balance transfer is just a band-aid solution and can cause you to go deeper into debt once the promotion expires.
5. Waive fees. If your account is in good standing call the credit card company and ask them to waive any late fees or other fees.

Why You Still Need Insurance

September is Life Insurance Awareness Month which reminds consumers of the benefits of having life insurance. The recent earthquakes and hurricanes that the east coast experienced last month are another reminder why consumers need insurance. Many homeowners and auto owners suffered loss or damages due to the earthquake and hurricanes. For those who did not have insurance, repairs will be costly.

Insurance is a form of protection against loss, damage or theft. Insurance should not be used as a form of investment or to get extra money. Insurance should provide enough to reimburse for loss or damages. Three benefits to having insurance are:

a. Can be used to reimburse for a loss that occurs
b. Protects against harm to something or someone
c. Saves you money in the future

There are several types of insurance available: life, health, auto, fire, home, dental, flood, disability (short-term and long-term), and many more. The three most important types of insurance everyone should have are: disability, life and health.

Get a free analysis of your existing coverage to see if you have enough or too little coverage. Many consumers have more coverage than needed. Many consumers get the coverage suggested by their insurance agent and don’t bother to answer questions or comparison shop.

When you purchase a new car, it is wise to get collision and comprehensive coverage but as your car gets older you may only need to have collision coverage. This step could save you anywhere from $50 to $200 a month. Collision coverage should be adjusted annually or every two years and should be based on the value of your car. Also, verify your liability coverage and adjust as needed. Here are 10 ways to save money on insurance.

1. Increase deductibles. Increase deductibles to lower your monthly premium. This will save you money and prevent you from filing minor claims which can increase your premium.
2. Assess. Assess the assess the replacement value of your insured items – car, home, health, etc. If you house is worth $200,000 or the cost to rebuild you home is $200,000 but you only have coverage for $100,000, you need to adjust.
3. Reputation. Research the insurance company on the Better Business Bureau website or the internet to gather information on any complaints or the quality of customer service.
4. Home. Consider waving payment of your homeowner’s insurance by your mortgage company and pay it on your own. This can save you anywhere from $50 to $300 a year.
5. Health. Many consumers file bankruptcy or have bad credit due to medical bills. The increasing high cost of health care services and prescriptions is the main reason why everyone should have health insurance including dental and vision insurance if you wear glasses.
6. Life. Adjust your life insurance policy as home environment changes. Update every 5 years and when your children become adults, your spouse retires, etc.
7. If you have multiple insurance products with different companies contact each company and get a quote for bundling your products to help you save money.
8. Companies always provide discounts or specials but do not always advertise them. Every 3-6 months call each service provider and ask if they are offering any specials and what discounts they have available for the services you currently have.
9. What If. List different scenarios that could happen and make sure you have enough insurance coverage for each scenario, i.e. job loss, sickness, death, new baby, loss of health insurance or other benefits, car repair, etc.
10. Research. Comparison shop for insurance with sites such as Bankrate, Progressive, AARP or ehealthinsurance.com to find the best insurance coverage.

Getting the right coverage will save you money in the future and help you get over any financial crisis you may experience.

NBA Players Welcome to the Real World

NBA Players make more than 90% of the U.S. population. They get to travel across the country for free by the NBA. You get paid for doing a job you love. Most Americans work a job that they hate and have no other options.

Many times players are lured into the NBA and believe that their lifestyle will last forever so they aren’t concerned with how much money they spend – but nothing lasts forever. Americans learned the hard lesson that nothing in life is guaranteed and that life can be hard.

NBA Players suffer from the Instant Gratification Syndrome, you want everything right now. You spend money that you earn in the future to buy things in the present. You have no right to complain that you can’t pay your bills. No one made you buy a multi-millionaire dollar home; spend money on partying, women, designer clothes, jewelry, and things that have no value. You made those choices.

You decided that living that lifestyle was what you wanted and more important than planning for your future. Don’t be like Chris McAlister of the Ravens.

Immigrants that were brought to this country or migrated to this country knew the value of hard work; they did whatever they had to do to make a living even if it meant making sacrifices or working multiple jobs. Americans are spoiled and have forgotten how to survive. If one option stops working, find another option.

Yes you should be treated fairly by your employer but you should always look for other options. You can use your celebrity status to create a radio show, a television show, a clothing line, a sneaker line, sunglasses, hats, become a speaker, become a board member or advisory committee member for a national company or start a business. So many options are available to you and are easier for you to attain because of your celebrity status and the people you have at your disposal.

NBA owners are denying players adequate pension plans and requesting stricter salary caps. You can’t have it both ways. You have to provide one option or other. This will continue to lead to future lockouts until owners realize they are nothing without the players. Here are 7 tips to plan for your future.

1. Save. Save. Save. Save at least 30-50% of your income each month.
2. Retirement. Sign up for the NBA Retirement Association. You only get a small amount of income but if you combine it with additional steams of income through endorsements or businesses you should be able to retire comfortably.
3. Downsize. Downsize your lifestyle. Who are you trying to impress with your ferrari, maybach, diamond watches, and millionaire dollar home. People may be fascinated by the things you have but no one really cares. When you retire what do you want people to remember about you, that you lived in a million dollar home that you couldn’t afford or that you helped your community.
4. Think About Tomorrow. You can get traded, released or hurt at any time. Plan for your future so that you don’t have to file for bankruptcy or foreclosure.
5. Role Model. Be the best person you can be and serve as a role model for youth and younger players to prevent them from making the mistakes you made.
6. Give. Donate to charities or start your own foundation. This helps to reduce your tax liability and provides greatly needed assistance to social organizations that have been affected by the recession.
7. Say No. Learn how to say no to friends, strangers, relatives who ask to borrow money or ask you to buy something. If you always lend money you only enable that person to be dependent on you forever. Show them how to earn their own money so they don’t have to ask you for money.

You determined your self-worth by the things you own instead of realizing that your self-worth comes from within. No matter how much money you have it cannot make you happy and cannot fill a void in your life.

Think how different your life would be during the lockout if you saved at least one year’s salary, if you only bought one car or if you lived in smaller house. When you experience a financial crisis, your true character is tested. You either become a winner or loser.

Determine that you will always be a winner. Don’t let anyone determine your destiny, determine your own destiny. Money can generate wealth or generate debt you make the choice.

Are Debit Cards Dead

The Credit CARD Act of 2009, as well as the Dodd-Frank Act Financial Reform Act and interchange and overdraft fee reform, have reduced revenue banks earned from the credit and debit cards consumers. Banks have responded by reducing or eliminating rewards programs and other perks and increasing ATM fees to $5 and increasing other bank fees.

Some reward cards program will be funded by retailers where you use your card instead of the banks. If frequently shop at specific businesses your bank may request that the retailer offer discounts.

This however can work against consumers because it will force consumers to spend more money to get fewer discounts. Retailer claims consumers will get more discounts and offers based on their shopping history. Consumers can still get rewards with airlines, hotels and credit cards.

Wells Fargo ended it's debit rewards card program and is currently testing a $3 monthly fee for debit card users in four states. Chase, SunTrust, Continental and United ended their debit card rewards program in July 2011. Free checking at some banks such as Bank of America will also be eliminated. TD Bank still offer debit cards.

Ally Bank offers a debit card reward program that puts cash into a consumer’s account. However, consumers do not earn points or miles with every purchase. The cash is used for making purchases through partner retailers.

Perk Street Financial offers an online checking account that provides rewards for any checkcard card credit transactions. You can earn 2% cash back if your balance is over $5,000 up to 90 days.

If your balance is under $5,000 after the 90 days introductory period, you will earn 1% rewards. The bank doesn’t charge monthly maintenance fees and offer 5% cash back with partner vendors which change each month. Use financial site like bankrate.com to comparison shop for debit card reward programs to find the best deal.

Self Publishing Seminar

Self Publish Your Way to the Top Seminar on 9/29/11 in Silver Spring, MD.

If you always wanted to write a book but don't know how or if you already wrote a book and want to know how to get it into bookstores, this seminar is for you. Registration is required http://selfpublishyourway.eventbrite.com/.

Learn how to:
1. Get Started
2. Titles That Sell
3. Editing
4. Marketing
5. Booking Interviews
6. Organizing Your Book
7. Cover Design Tips
8. Pricing
and more!

Beware of Prepaid Cards

Prepaid cards are reloadable and can be used for purchases at businesses that accept credit cards and can sometimes be used for ATM withdrawals. A prepaid card should be used in addition to having a traditional bank account but should not solely for money transactions.

There are many advantages to using prepaid cards but there are also many disadvantages. Prepaid cards work similar to debit cards for making payments or purchasing items.

Prepaid cards are helpful for those who cannot get a credit card or open a bank account due to bad credit. Prepaid cards are also helpful if you don’t want to carry large amounts of cash but should only be used as a temporary measure until your financial situation improves.

Prepaid cards have activation fees, monthly fees and other hidden fees. Some prepaid cards have activation fees up to $39.95 but most fees range from $2.95 - $9.95. They also have less protection against loss or theft. Be sure that the bank prepaid card you use is FDIC insured. Prepaid cards are not reported on your credit report and cannot help rebuild your credit.

Some consumers have been scammed by companies regarding prepaid cards. Over 100,000 consumers who paid for payday loans online were tricked into paying for prepaid cards instead. Consumers signed up for payday loans but were tricked into signing up for prepaid cards with a zero balance. Consumers paid up to $54.95 for the cards. However, the Federal Trade Commission sued the company Epiq Systems and required a refund of $1.9 million dollars for refunds ranging from $10-$15 each.

Many non-financial companies also offer prepaid cards such as Facebook which is available at Target and Wal-Mart. The cards can be used to purchase Facebook credits which are applied to purchase games or other applications. Comparison shop and read all the fine print before choosing a prepaid card.

Homeowner Refinance Proposal

A new proposal by federal regulators will require homeowners who want to refinance a home provide a 10-20% down payment or have 25-30% in equity. This rule was developed to comply with the Dodd-Frank Bill to overhaul the mortgage industry.

Unfortunately, this requirement will prevent many homeowners from refinancing their homes that have ARMs, balloon payment or high interest rates. This requirement would affect 25 million homeowners who will have to pay higher costs to refinance. Due to the recession many homeowners have less than 25% equity in their homes or no equity at all.

Homeowners who do not meet the requirements will have to pay 0.8 – 1.85% more in the interest rate. This proposed requirement also penalizes homeowners who have good credit who will be forced into less than favorable refinancing options.

This new proposal ignores the benefit of homeowners refinancing which would reduce the number of foreclosures and mortgage default rate. This will also slow the growth of the economy and middle class by stalling the housing market and reducing additional revenue that could be generated for mortgage industry companies.
Write your congressman to submit your comments about this proposed legislation.

The Debt Ceiling and Student Loans

The passage of the debt ceiling includes a $17 billion increase in spending for Pell grants and scholarships for low-income undergraduate college students and would protect cuts from the programs until 2013. Approximately 19 million students are eligible for the funds.

However, it would eliminate federally subsidized student loans for graduate and professional students (doctors, lawyers, dentists, etc.) which would affect approximately 6 million students seeking advanced degrees. It also eliminates usage of Pell grants for summer undergraduate programs.

The maximum amount of money a graduate student can borrow from the federal government is $20,500 a year, including $8,500 from subsidized loans. Currently students don't have to start paying interest on subsidized student loan loans until six months after graduation. During that time the government pays the interest.

The debt ceiling eliminates this and eliminates a credit on the origination loan fee provided to students who make 12 months of on-time payment. Students currently get half of the money paid for the origination loan fee which is 1% of the loan back. These changes go into effect beginning July 1, 2012. At that time graduate students would begin accruing interest on student loans while in school. Students have the option to pay on the interest while in school but don’t have to make payments until after graduation.

Student can use the Income Based Repayment (IBR) plan which does not require students to make payments on the federal loans until their incomes exceed 150% of the poverty line and payments are a percentage of the amount their incomes exceed this level. This protects students if their incomes are not enough to make the loan payments. The 2011 poverty line for one person is $10,830 except for Alaska and Hawaii where the poverty lines are slightly higher.

Under the new laws starting July 1, 2012, if a student with no children has an income of $30,000 per year and has monthly loan payments of $350, their $30,000 income exceeds 150% of the poverty line (($10,830 x 150% )+ $10, 830) = $27,075. The student would be required to pay no more than 10% of the amount their income exceeds the poverty line $2,925 ($30,000 - $27,075 x 10%) or $292.50. Currently the student has to pay no more than 15%.

Students who are voter age must voice their concerns with their congressman and during elections to preserve funding for undergraduate and graduate grant and scholarship programs.

9 Ways to Save on Back to School Supplies

This is the time of year that children become sad because summer is coming to an end. Children can no longer stay up late at night watching television or playing games. Parents have to plan their weeks sometimes having to be in two places at once. Parents have to buy school supplies and clothes.

Buying clothes and school supplies for your children can be a stressful and pricey task. Children want the latest electronics, gadgets and fads their friends have so they don't feel left out. Don't let your children pressure you into buying the latest fads or things they don't really need. Stick to your guns and only buy things that they absolutely need for school. This will save you money which we all need these days because the future in unknown.

Talk with your children before going clothes and school shopping and set expectations. Let them know about your finances and what you are going to buy and what you are not going to buy. Explain to them about needs and wants, designer clothes are not needs.

Ask your children to create a list of mandatory supplies they need for school. Determine what clothes your children can still fit comfortably and make a list of things they need. Prioritize the list in four categories: Need Now, Need in 2-4 months, Need in 5-7 months, Need When School Ends. This will also help budget and stretch your money if you don't have the cash to get everything you need. Here are 9 tips to save money when shopping for back to school supplies and clothing.

1. Plan Ahead. Don’t wait until the last minute to buy school supplies. The best store sales start early so plan ahead to take advantage of them and get the best choices.
2. Barter. If you know a parent who provides services that you need and you have clothes or toys your kids are not using consider bartering.
3. Sales. Go to yard sales and dollar stores to find great bargains on school supplies.
4. Clothes. You can buy clothes from a thrift store, consignment shop or discount store such as Old Navy, Kmart, Wal-Mart or Target. Kids grow quickly and their clothes generally don't last or fit them throughout the entire school year. This will save you money and you kids will still remain fashionable. Buy clothes and shoes if possible at least one size too big so your kids can get more wear out of them.
5. Network. Mention to family, friends, co-workers and neighbors that you are going school shopping. They may be able to provide money savings tips for buying school supplies or may have extra supplies they can give to you for free.
6. Comparison Shop. Search the internet for reputable website that sells school supplies at a discount price and purchase items before school starts to get the best deals. Every few minutes of comparison shopping can save you $1-$9. Also shop at stores that honor competitor prices and coupons.
7. Budget. Create a budget for necessary school supplies (pens, paper, pencils, erasers, notebooks, composition notebooks, rulers, compass, etc.) and save some additional money for unexpected school expenses that may pop-up after school starts such as additional supplies need for classes, school trips, additional school supplies, etc. Buy only what you need if you don’t have enough money to buy extra supplies. Look around the house to see if you have any leftover supplies from the previous school year.
8. Internet. Search the internet for reputable websites that sell school supplies at a discount price.
9. Gather Information. Towards the end of the school year ask the teacher for a list of required school supplies that will be needed and buy supplies throughout the summer. This will spread the costs out over a period of time and ensure that you budget will not be greatly affected by waiting until the last minute to go back to school shopping. This will prevent rushing to buy unnecessary items because you didn't create a list to buy only the things needed.

Emergency Preparedness Must Have Items

Natural disasters such as hurricanes, earthquakes, tornadoes, tsunamis etc. can occur at any time but are less likely to occur on the east coast. Hurricanes are one of the most destructive natural disasters that can occur. Hurricane season runs from June 1 to November 30 and usually occurs in warm weather areas. On average 5-6 hurricanes occur during the hurricane season. Hurricanes are classified into 5 different categories:

Category 1 - winds 74-95 miles per hour
Category 2 - winds 96-110 miles per hour
Category 3 - winds 111-130 miles per hour
Category 4 - winds 131-155 miles per hour
Category 5 - winds greater than 155 miles per hour

Tropical storms have winds ranging from 39-73 miles per hour. A tropical depression has winds up to 38 miles per hour and look like individual thunderstorms grouped together. When a natural disaster transpires you can never be fully equipped for what materializes but there are some things you can do to help make the experience go smoother. The east coast has recently experienced multiple natural disasters it a short period of time. Here are 22 emergency preparedness tips to help when experiencing a natural disaster:

1. Relax. Don’t let your emotions overwhelm you. Don’t let media coverage, family or friends cause you to overreact.
2. Outside items. Bring in all outside furniture and items that can easily blow away or tie them down tightly.
3. Cover. Keep blinds, shades and curtains drawn. Avoid staring out the window.
4. Lighting. Use kerosene lights or keep candles and flashlights near in case your power goes out. Buy matches or lighters to light candles as needed.
5. Heating. Keep lots of blankets. Wear extra clothes to stay warm. Buy hot water heater insulators to keep the hot water warm even if the power goes out.
6. Cooking. If you don’t want to use your gas stove or have an electric stove, cook food outside on a grill and store leftovers on ice. If you have a gas stove, you can still cook by lighting the pilot manually.
7. Ice. Buy 1 - 5lb bag of ice per every 3 days to use if you want to drink your beverages cold. If you have an automatic ice maker, make several trays of ice and store in the freezer to use if the power goes out.
8. Drinks. Drink more water to help stay hydrated. Try drinking beverages at room temperature to save ice. Buy bottled water or fill water pitchers with filtered water and store in your refrigerator if you are unable to drink tap water.
9. Snacks. Buy snacks to eat in between meals.
10. Food. Buy canned fruits and vegetables and other non-perishable items such as nuts, powered milk, beef jerky, spam, tuna fish, dried fruit, crackers, peanut butter, granola or protein bars, juice boxes, etc.
11. Water. Fill your bath tub and use the water to flush your toilet or use to wash up if the power goes out.
12. Cleaning. Fill a large trash can full of water to use if you are unable to take a shower. Keep moist towelettes, alcohol pads and disposable bathing clothes or wash clothes on hand. Use bleach as a disinfectant.
13. Health. Make sure you have enough prescriptions, aspirin or pain reliever, anti-diarrheal medicine, and multiple first aid kits.
14. Power. Buy a generator or get batteries to use for portable tv’s, radios or dvd players. You can also charge cell phones or other electronic devices in your car. Make sure you have lots of batteries.
15. Fun. Pull out the board games to play with your family. Do fun activities such as tell stories, crossword puzzles, etc.
16. Leisure. Read books or play battery powered games. Catch up on activities and reconnect with family.
17. Breathing. When the disaster has ended, use dust masks if needed to filter contaminated air. If the air is not contaminated open windows to get fresh air.
18. Cell phones. Make sure cell phones are fully charged and minimize use prior to the natural disaster.
19. Babies. Keep plenty of baby formula, food and diapers on hand as well as medicine, and other supplies.
20. Money. Keep extra cash or travelers’ check on hand in case you need to make unexpected purchases.
21. Smoke detectors. Check to make sure smoke and carbon monoxide detectors are working properly.
22. Disposable. Keep disposable items on hand such as paper plates, cups, utensils, paper towels, toilet paper and other toiletries or recycled paper products.

What's Your Cell Phone Backup Plan

In 2006 Congress passed legislation under the Warning Alert and Response Network Act (WARN) allowing the Federal government access to private cell phones to issue emergency warnings and alerts which resulted in the Personal Localized Alerting Network (PLAN). WARN requires cell phone provides to activate PLAN technology by April 2012. Participants that will offer PLAN prior to the deadline include Sprint, AT&T, Verizon, and T-Mobile.

PLAN allows authorized national, state or local government officials to send alerts via cell phone providers regarding public safety emergencies, such as a tornado or a terrorist threat. Cell phone providers push the alerts from cell towers to cell phones in the affected area. This technology ensures that emergency alerts do not get stuck in highly congested user areas.

PLAN enables government officials to target emergency alerts to specific geographic areas through cell towers which pushes the information to dedicated receivers in PLAN enabled cell phones. PLAN complements the existing Emergency Alert System implemented by the FCC and FEMA via media service providers.

Customers can opt out of the service but will still receive Presidential alerts even if their GPS locator is turned off. The PLAN technology will allow the messages to take precedence over regular phone calls or text messages so the alerts can get through. Messages will show up on the phone’s front screen, and arrive with a distinct ringtone or vibration. Three types of messages are included in PLAN: level 1 - messages from the President, level 2 - looming threats to safety, and level 3 - amber alerts about missing or abducted children. As of October 2010 the following cell phone providers participate in PLAN www.fcc.gov/pshs/docs/servcies/cmas/MasterCMASRegistry.xls

During a natural disaster cell phone networks quickly get jammed and subscribers are unable to make phone calls. This happened recently with the earthquake that struck the east coast. During a disaster many people rely on cell phones or the internet. If your power is out your only other option is your cell phone. Government agencies are urging subscribers to send text messages instead of making phone calls during a natural disaster.

Using social media and text messages cannot replace voice communications and does not address the cell phone network load problems. If everyone is sending text messages that causes another increase in load and can cause delays in sending and receiving text messages. For people who don’t use social media or cell phones or people who live in rural areas where cell phone coverage is not available there is no way other for them to communicate. The U.S. needs to invest more money in technology to compete with other countries. Japan is working to use renewable energy for its cellphone tower network s with solar, wind or biomass which protects against power grid outages. Japan has also created a cooking pot that can cook food over a campfire and charge a cell phone at the same time which costs $300.

If cell phone companies can provide their executives with million dollar salaries, bonus and perks each year, saved money by transferring their customer services departments to India and other countries, decreased their level of customer service, and made some staff reductions, why can’t they spend more money to upgrade their networks to provide better service to subscribers and handle increased loads during a natural disaster.

Here are 6 tips to prepare for phone interruptions during a natural disaster:
1. Disaster Plan. Create a disaster plan and test it periodically.
2. Don’t wait. Don’t wait until the last minute to take action. Prepare in advance and stay calm. Execute your disaster plan to minimize further damages and safety issues.
3. Communication Plan. Develop a communication plan to contact friends and family and test periodically.
4. Satellite phone. If you live areas that experience frequent natural disasters consider purchasing or renting a satellite phone which connects to satellites in space. They provide functionality similar to cell phones such as voice, paging alerts, messaging service and internet access. Coverage can include the world or specific regions. Prices ranges from $200 to $5,000 for the phone plus talk time ranging from $0.15 to $2.00 per minute.
5. Smartphones Apps. Use emergency communication smartphone applications such as Life360, Guardly, Emergency Distresss Beacon and Quake SOS to connect to family and friends or emergency service providers to identify your location and confirm your safety.
6. Emergency Alerts. Sign up to receive emergency alerts with your city or state government, local school or university, utility company or weather service. You can also sign up for the Emergency Email and Wireless Network to receive alerts from local, state and federal government agencies.

Earthquakes and Your Finances

Recently many states on the east coast experienced an earthquake ranging from 5.7 to 6.0. Aftershocks were felt in the Washington DC area of 4.6. Only minor injuries were reported, however many homes have cracks and other structural damages. When I arrived home from work small pieces of plaster were on my floors, cracks in various places in my home, my business phone fell on the floor and was off the hook, my office was a disaster, books and pieces of paper strewn all over the floor, and contents of my medicine cabinets and closets were on the floor.

Many people tried to use their cell phones but the networks were jammed. Many others just sat in disbelief. A friend from LA told me she didn’t know the east coast had earthquakes. Washington DC had one last year which was approximately 3.6 but it is rare to have them on the east coast. After the initial shock and fear has worn off people want to know what do I do now? Some questions must be considered when experiencing a natural disaster. Here are 10 financial tips to help survive a natural disaster.

1. Insurance. If you are a homeowner review your homeowner’s insurance policy to see if you are covered for natural disasters such as an earthquake. Contact your insurance company and report any damage. Contact a lawyer to get legal advice and protection in the event your insurance company becomes difficult with reimbursing you for your loss.

2. Notify. Contact all of your family and friends and employer and let them know what happened and if you need any assistance.

3. Inventory. Make a list of all the companies you do business with. Include the name of the company, mailing address, payment address, phone number, type of account and website and keep in a dry water proof location such as a waterproof and fireproof safe.

4. Identification. Make duplicate copies of your driver’s license, SSN and passport and birth certificate and store in waterproof and fireproof safe.

5. Disaster Kit. Make sure you have enough dry and canned food for a week including bottled water. Have enough clean clothes for at least 2-3 days. Keep an emergency kit in your car to include bottled water, canned food, blankets, a radio, batteries, 2 flashlights and a first aid kit.

6. Supplies. Purchase batteries, a portable radio/tv radio, extra blankets if needed, pillows, candles, matches, fire extinguisher, smoke detectors, paper towels, paper plates and napkins, plastic utensils, disposable cups, toiletries, etc., and store in dry cool location.

7. Service Providers. Make a list of any other service providers that you do business with: mechanic, plumber, electrician, handyman, painter, roofing company, HVAC, drywall expert, home structural repair company, lawyer, psychologist, marriage counselor, plumber, lawn care professional, etc. Include the name of the company, mailing address, payment address, phone number, and website which you may need to use after the disaster.

8. Budget. Create a budget to determine how much money you earn after taxes, monthly bills and expenses and how much you will need to replace basic necessities and contents in your home if lost or damaged.

9. Spend Wisely. Replace damaged or missing items by shopping at discount or outlet stores, buying in bulk and buying items on sale.

10. Live for Tomorrow. Document what you learned from this experience and steps to take if you ever have this type of experience in the future.

Consumers Can Now Get Free Credit Score

Effective July 21, 2011, the Federal Trade Commission consumers can now receive free credit scores if they apply for a loan or credit and are denied as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Previously consumers could receive a free copy of their credit report but in some cases it is hard for consumers to determine if they had good or bad credit.

Loan providers and companies that offer credit must provide details of the credit score and why the consumer was denied. Bad credit and low credit scores mean consumers will get higher interest rates, possibly pay upfront fees and have less than favorable credit or loan terms. The credit score will include the factors that impacted the consumers’ credit score such as late payments or maxed out credit cards.

Under this new law, banks can no longer keep their in-house credit scoring models secret and must share these with consumers who are denied credit. The new law does not apply to telecommunication and insurance companies.

Allowing consumers to receive credit score will give them the ability to quickly see if they have good or bad credit and create a plan to increase their credit score.

Not all consumers can receive a free credit score. If you were approved for loan with less than favorable terms or if your loan or credit application is rejected you can get a copy of your credit score. If you have good credit you may not get a copy of your credit score. Here are 7 tips to increase your credit score:

1. Get current. Pay delinquent accounts such as judgments, tax liens, foreclosures, repossessions and collection accounts first. Then pay all other late accounts such as medical bills.
2. Pay down debt. Keep balances at 10-20% or less of the credit limit. Having credit cards with balances of 30% or more of the limit decreases your credit score.
3. Pay on time. Pay bills at least 7-10 days before the due date to avoid late fees and penalties.
4. New accounts. Opening more than one new account per year will lower your credit score.
5. Avoid closing accounts. Closing accounts that have been open for 2 years or more can decrease your credit score.
6. Negotiate. Setup payment plans to pay down debt if you cannot pay the full amount owed. Stick to the agreement until the account is paid in full.
7. Avoid risky solutions. Avoid filing for bankruptcy. Use bankruptcy, debt consolidation, credit repair counseling or debt settlement as a last resort. These are reported on your credit report and lower your credit score.

General Retirement Advice

It is estimated you will need a minimum of $1,000,000 to cover your monthly expenses during your retirement years. The average Americans live 10-20 years after retirement. You will need at least 80% of your income during retirement.

If you are stressed and anxious reduce your investments in stocks and bonds, however when the market returns you will lose money when moving your investments back to stocks and bonds because the prices will be higher. Investing in individual stocks on your own is risky. Consult a financial advisor to ensure you minimize losses and maximize gains. Here are some general retirement tips to ensure you enjoy your retirement.

Diversify at a minimum:
Pre-retirement invest 60% stocks, 40% bonds/cash; near retirement (5-10 years) invest 40% stocks, 60% bonds/cash; during retirement invest 20% stocks, 80% bonds/cash.

What to invest in:
1. Invest in emerging market funds (foreign markets)
2. Equities (mutual funds) or other items that return a dividend or capital gains
3. Pharmaceuticals
4. Oil and petroleum
5. Commodities (corn, soy, wheat, coffee beans, petroleum, copper, coal, salt, sugar, soy beans, aluminum, rice, gold, silver, palladium, platinum, electricity, gas, oil, etc.). However some commodities are overpriced right now and should only be invested in when the prices are low.
6. Bonds (corporate or treasury)
7. Real estate, however keep in mind if the price is low it can continue to decrease but over a long period of time you will gain equity and can make a profit
8. Defensive stocks (don’t depend on economic prosperity) - food and beverage industry, manufacturing companies such as Philip Morris, Proctor & Gamble, alcohol and tobacco
9. Under-priced stocks (offer price is lower than price of the first trade, however they carry a higher risk factor because they may not rise in the future) – IPO’s, airline stocks, small cap stocks, etc.
10. Money Market Accounts/CDs – use these for an emergency fund savings account for unexpected expenses
11. Utility stocks – water, gas, electric, telephone companies
12. Green technology and green energy stocks for long-term gains such as Canon, Green Mountain Coffee Roasters, Nike, Whole Foods, Google, etc.

How to Save:
1. CDs
2. Money Market Accounts (MMAs)
3. Bonds
4. Online Savings Accounts
a. CD current interest rates nationwide go up to 1.27% (AloStar Bank of Commerce NR for $1,000 minimum balance) and Money Market Accounts rates nationwide go up to 1.05% (First Trade Union Bank for $1,000 minimum balance). Online Savings account interest rates go up to 1.15% (Discover Bank High Yield Savings Account for $500 minimum balance).
5. Create an emergency fund to cover monthly bills and expenses for nine to twelve months.
6. Pay down debt
7. If you receive government benefits/checks think of at least 1 additional way to generate additional income if your check is last or does not arrive at all due to the debt ceiling
8. Contribute extra to your 401(k) or other retirement type account now. Money you invest now can buy more fund shares which will provide you with additional gains when the market goes back up

How the Verizon Strike Will Affect You

I found out about the Verizon strike when I called last week to ask a question about my landline bill. A message stated that the wait time could take up to 15 minutes due to the strike. I got tired of waiting and decided to call back later. I asked a few friends if they heard about the strike and they had not.

This is Verizon’s’ first strike in 11 years. The Verizon strike begun due to talks with union workers that failed on August 6, 2011. Verizon has 195,500 employees and approximately 135,000 are non-union employees.

Union employees do not pay for health insurance premiums. Verizon is proposing: union employees pay a portion of their health insurance premiums similar to the plan for non-union employees, tie pay increases to performance reviews, eliminate the sickness and death benefit program, cut in half the sickness disability benefits from 52 weeks to 26 weeks and reduce sick time.

Verizon is proposing the new terms for employees due to the continued decline in revenue in landline services and increased use of cell phones. Union employees state that Verizon wants to eliminate their pension plans, health insurance and reduce their pay.

The strike affects all landline customers, FIOS and internet customers but does not affect its wireless customers. Verizon makes some of its revenue from its non-wireless customers since landlines are still largely used throughout the country. To compensate for the strike, Verizon may raise rates for existing customers to offset any losses. Local phone service is still one of the most profitable services in America. Verizon overall is performing well and earns a profit every year.

Verizon has not addressed the continued decline in customer service over the past few years. Verizon has reduced spending in construction, networks and staff but has not increased funding in customer service. However, Verizon has continued to pay high compensation to executive staff who are paid hundreds of millions of dollars each year plus perks.

In some states Verizon offices are closed on Sundays. Verizon uses a third party company to accept customer credit card payments. FIOS and DSL are not available to every customer that requests it, although Verizon promised the government that it would upgrade all of its customers to fiber optic service.

The reduced spending affects Verizon’s network, maintenance needs, work orders and monitoring of existing customer services and infrastructure. The reduced spending affects customers by:

1. Possible network outages to public safety services such as 911 and local non-emergency services such as 311, 511 or 611. This would result in delays for public health, safety and security requests and customer services.

2. Decline in the quality of phone and internet services provided to customers.

3. Decrease in competition and revenue for Verizon competitors and resellers.

4. Possible reduction in community outreach efforts and initiatives to help low-income customers and small businesses.

5. Delays in fulfilling work orders due to reduced staff and aging infrastructure.

Verizon is pitting non-union employees against union employees causing a rift. According to union workers, some non-union employees tried to run their cars over union employees protesting. Some employees picketing stated the strike could last months.

Customers should demand that service for Verizon customers in America should be provided by Americans workers, demand upgrades to Verizon networks, improve customer service, provide cost effective services for individuals and businesses, stop increasing rates, hire additional staff, eliminate deregulation to allow competition with other companies and provide 24 x 7 service.

It appears that Verizon does not have the ability to remain competitive and reinvest itself by revising its company business model like McDonalds, Nike, Apple and other companies who saw the market changing and were able to adjust.

Who Will Cry for the Poor

                    

Who will cry for the poor?

Lost and all alone.

Who will cry for the poor?

Abandoned and confused.



Who will cry for the poor?

They have no food to eat.

They cried for relief but none came.



Who will cry for the poor?

They are hungry.

They have no clothes.



Who will cry for the poor?

They are cold and abandoned.

They just need a little help.



Who will cry for the poor?

They did the best they could.

They worked hard for a few dollars.



Who will cry for the poor?

They are hurting and afraid.

They don’t know what to do.

Can anybody help them?

Who will cry for the poor in America?

Will you?

 @ Copyright 2011 Harrine Freeman