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The e-mail also contains language threatening recipients with contempt of court charges if they fail to appear. Recipients are also told the subpoena will remain in effect until the court grants a release. As with most spam, the content contains multiple spelling errors. If you receive this type of notification and are unsure of its authenticity, you should contact the issuing court for validation. Be aware; if you receive an unsolicited e-mail, especially from an unknown sender, it is recommended you do not open it. If you do open the e-mail, do not click any embedded links, as they may contain a virus or malware. If you have received an e-mail similar to this, please file a complaint at www.ic3.gov.
"We've very concerned that minority communities are bearing the brunt of declining market policies," stated Maria Kong, President and CEO of NAREB, the 35,000-member trade group, primarily comprised of African-American real estate professionals. "We're looking at the further destabilization of our communities with policies that serve to halt financing in the communities that most need resuscitation and focused assistance, Kong added. Declining markets policies are implemented by GSEs, lenders, and mortgage Insurance companies in areas where home values are declining, or where home values are difficult to determine. In cases where homes are in declining markets, GSEs, lenders, and mortgage insurance companies policies increase pricing to deliver home purchase and refinance loans to consumers. In most instances, the policies also require higher down payment requirements. The survey, conducted in mid-March of this year, including opinions from minority real estate agents, brokers, mortgage professionals and settlement service providers, revealed the following: * 62 percent of minority real estate professionals are concerned about declining market policies; 35 percent say minority and lower income areas have experienced a disparate impact of the policies; 27 percent are worried that some lenders may act too quickly to identify minority neighborhoods as being declining markets; * 55 percent say that 2 out of every 3 customers must be turned down because they owe more than their homes are worth; * 69 percent say that for every transaction they close, 2-4 customers are turned away who are unable to qualify for a mortgage under declining market guidelines; * 34 percent believe legislation aimed at modifying existing mortgage loans could be effective in curbing current foreclosures; * 48 percent favor creating a national foreclosure fund to help distressed borrowers with realistic loan modifications and workouts including the use of soft seconds; * 65 percent say they know at least five real estate professionals who had to find outside work due to a failed real estate or mortgage based business, and * 64 percent say these job losses will result in increasing barriers to homeownership for minorities. Out of the 1,135 survey respondents, 74 percent were realtors; 18 percent were mortgage lenders and 8 percent provided other services. Member opinions on current legislative proposals captured in a live audience poll at the legislative meetings will be published and issued in the coming weeks by the three groups. The three organizations introduced a 5-point plan to address these, and other issues related to the challenges in the real estate lending market. The plan includes: * Protect home ownership gains achieved by minority consumers over the last several years; * Reverse declining markets policies that threaten the ability of borrowers to qualify for loans to purchase and refinance their homes; * Increase multicultural counseling and outreach, and require that servicers provide loss mitigation options in the language in which the borrower is most proficient; * Restore the public's trust and confidence in the lending process by ensuring the highest ethical standards of service by real estate professionals, and * Protect the housing system and add Liquidity to the market by passing FHA and GSE reform bills.
One common issue exploited homeowners have run into is having to pay both the contractor and the subcontractors. The homeowner's financial obligations should only be to the contractor. Some dishonorable contractors are collecting large, upfront payments from residents. When the work has been completed, instead of paying the subcontractors, the dishonest business owner instead pays the interest on properties they have already purchased and can only re-sell below cost. This predictably leaves subcontractors without paychecks and forces them to establish mechanics' or materialmens' liens on their customers' properties. The subcontractors secure payment for their work, but this causes difficulties for homeowners, who then pay the same fee twice for one remodeling project. Since subcontractors have 90 days to file mechanics' liens, it could take months for homeowners to realize that they have been defrauded. Residents should note that these types of liens will pay the subcontractors before the homeowners if occupants sell their properties. Protect yourself To avoid these circumstances and ensure that you only pay the cost of a project once, NARI suggests you take the following steps: Be sure you hire an experienced remodeler and not a fly-by-nighter waiting for the building industry to pick up again. -Contact state or local licensing agencies to ensure a contractor meets all requirements. -Check with your local NARI chapter, the government Consumer Affairs Office or the Better Business Bureau to ensure the absence of any adverse files on-record for the contractor. -Ask to see a copy of the contractor's certification of insurance or for the name of his or her insurance agency to verify coverage. Most states require a contractor to carry worker's compensation, property damage and personal liability insurance. -Verify that the contractor's insurance coverage meets all the minimum requirements. If homeowners request estimates from several different contractors, they should confirm that they are bidding on the same scope and quality of work. Discuss any variations in bids and beware of any bid that is much lower than the others. -Draw up a contract before a remodeler begins work that includes the contractor's name, address, and phone and license numbers, if applicable. It should also include details about what the contractor will and will not do. -The agreement should offer a detailed list of materials for the project, with information such as size, color, model, brand name and product. The contract should include approximate start and completion dates. -Study the design plans carefully. Before any work begins, the homeowners should insist both that they approve the plans and that the contractor identifies the design plans in the written contract. -Known as the "Right of Recision," federal law requires a contractor to provide a homeowner with written notice of the resident's right to, without penalty, cancel a contract within three business days of signing it, provided it was solicited at some place other than the contractor's place of business or appropriate trade premises. -Verify that you share an understanding of financial terms with the contractor and that the contract explicitly states them. The total price, payment schedule and any cancellation penalty should be clear. -The contract should include a warranty covering materials and workmanship for a minimum of one year, and identify the warranty as either "full" or "limited." The contract must identify the name and address of the party that will honor the warranty, namely the contractor, distributor or manufacturer. Homeowners should make sure the document specifies the time period for the warranty. -In the event of a disagreement, a binding arbitration clause is useful. Arbitration may enable the homeowner to resolve disputes without costly litigation. -Before signing a contract, completely review it and confirm that you comprehend it. Consider the scope of the project and verify that the contract includes all requested items. If the agreement lacks mention of a specific, discussed item, consider it excluded. Never sign an incomplete contract, and always keep a copy of the final document for review.
"Never before have so many minority homeowners faced foreclosure. The ripple effect of this housing industry melt-down is staggering and minority communities are bearing a disproportionate share of the financial burden, "said Maria Kong, President and CEO of the 35,000-member NAREB, the African-American real estate trade association formed more than 60 years ago, and is the country's oldest minority trade group. "Joining with the Asian and Hispanic American trade professionals gives us all a stronger voice and compounds the need to find real solutions to the housing foreclosure crisis," Kong added. The disproportionate economic impact on minorities due to subprime mortgage foreclosures and the potential setback it will mean for minority neighborhoods sets the tone for the coalition's discussion. Real estate practitioners, business leaders and appointed government officials will exchange ideas about proposed policy and regulatory issues in a schedule that includes: · The announcement of a five-point plan by the Minority Coalition of Real Estate Professionals that addresses foreclosures, programs needed to drive recovery in the African American, Hispanic, Asian and communities; · "Economic Viewpoints from the Industry Regulators" (9 -10:30 am), a session that features open forum discussions with economists from Freddie Mac, the Federal Reserve and PMI and live audience polls including an introduction by Federal Reserve Board Governor Randall Kroszner; · "An Analysis of HMDA Data to Identify Future Patterns of Mortgage Default and Foreclosures in Minority Communities" (10:30-11 am) featuring fair lending expert Maurice Jourdain-Earl, Managing Director of Compliance Technologies. Jourdain-Earl, an emerging markets consultant, will offer insights on HMDA data trends relative to minorities and the current subprime mortgage crisis. · "Housing Issues Before the Banking and Finance Committees of the U.S. Senate and House" (11:15 am-12:45 pm) a town-hall forum featuring the heads of NAHREP, AREAA, NAREB and the National Council of La Raza and a live poll that will capture practitioners' opinions on the current bills before the House and Senate. U.S. Treasurer Anna Escobedo Cabral will offer comments at the outset of the session; · Keynote Speaker Alphonso Jackson (12:50-2:20 pm); · "Key Regulatory Issues Impacting Today's Real Estate Professionals" (2:30-4 pm); FDIC Director Sandra L. Thompson will make a presentation that will also include a live audience poll of practitioners. "Minority brokers are caught in the middle. On the one hand, we're business people trying to make a living in this upside-down economy. On the other, we see ourselves as guardians and protectors of our communities. Our own families and our communities are shattering so we must be a part of the public policy dialogue to ensure that sustainable homeownership is still a part of our American dream," Kong added.
Today's payment landscape has changed considerably. Debit cards, automatic deductions and electronic bill payment are rapidly replacing paper checks as the preferred payment method. And banks are offering a whole new crop of services - and related fees and penalties - you should know about. Here are a few tips for traversing the bill-payment landscape: Balance your accounts. Tracking your account's incoming and outgoing money is more important than ever. Checks used to take several days to clear so you'd have a little wiggle room. Now many transactions post immediately. Make sure you've got enough money in your account to cover a purchase or payment or it'll cost you. Get in the habit of checking your account balances every day at your bank's Website or toll-free number. It only takes a moment and can tell you when a deposit or automatic deduction has posted. It's also a great way to spot a check or debit payment you forgot to enter in your check register - and to notice any fraudulent activity on your account. ATM surcharges. Many banks charge a fee if you use another bank's ATM; and, they usually charge non-account holders to use their ATMs. A few suggestions: Choose a bank with ATMs convenient to where you live and work; join a credit union that waives fees for affiliated institutions' ATMs; or use your debit card to get cash back on shopping transactions. Just be sure to faithfully enter all transactions in your check register. Be aware of overdrafts. Overdraft protection is where your bank covers your check or transaction so it doesn't bounce. Formerly, that payment probably would have been denied unless you'd signed an overdraft protection agreement where funds would be transferred from a linked credit line, credit card or savings account. Increasingly, many banks will let such transactions go through automatically. This protection against bounced checks often comes with a price tag, however. You may be charged up to $35 per item - and an additional daily fee for being overdrawn. Consider signing up for overdraft protection linked to another account, which may come with a small annual fee. And try to maintain a small cushion in your account to protect against arithmetic errors you might make. Sign up for alerts. Ask if your bank provides free phone or email notices that alert you when your balance dips below a certain level, when a check or deposit clears, or when a payment is due. These alerts can help reduce what you pay in fees. Bankrate.com has posted numerous articles explaining how overdraft and other banking fees work, as well as advice for how to avoid or minimize them (www.bankrate.com). The site also includes a tool to compare fees and other checking account features at different banks. Another good resource for learning about managing your checking account and debit card is Visa Inc.'s free personal financial management site, Practical Money Skills for Life (www.practicalmoneyskills.com/banking). Consult a financial professional about which type of account best suits your particular situation. If you don't know one, www.plannersearch.org is a good place to start your search. Editor's Note: Jason Alderman directs Visa's financial education programs. To participate in a free, online Financial Literacy and Education Summit, go to www.practicalmoneyskills.com/summit2008.
All apartments are fully furnished with private bathroom, kitchenette, hardwood floors, a microwave, ceiling fan and air-conditioning. The building has a private garden, laundry facilities, community rooms and 24-hour reception/security. Eligible applicants must be single individuals earning a yearly gross income between $14,500 and $29,760. Rent is 30% of documented gross annual income, averaging $316 to $697 per month. Applications** may be requested in writing with a self-addressed, stamped envelope to: CHV 1247 Flatbush Avenue LP., 1013 Broadway, Brooklyn, NY 11221, Attn: Morris Manor Occupancy Dept. Completed applications must be returned by regular mail only to CHV 1247 Flatbush Avenue LP, 1446 Myrtle Avenue Box #199, Brooklyn, NY 11237. Applications received after postmark date March 24, 2008 will not be processed. Residents of Community District #14 are encouraged to apply. For more information please call 718-919-2623, Ext. 250 CAMBA Housing Ventures, Inc. works in partnership with prominent national organizations, local developers and community-based agencies, and city and state government to develop safe, high quality affordable housing. CAMBA is a community-based nonprofit agency that connects people with opportunities to achieve their own success. **Applications can also be obtained at one of the following locations: CAMBA Main office: 1720 Church Avenue (2nd floor) between East 17th/18th Streets, across from the Church Avenue B/Q Station. Applications are available from 9 am 5 pm, Monday - Friday. Office of State Senator Kevin Parker: 4515 Avenue D at E 45th Street. Applications are available from 10 am 4 pm, Monday - Friday. Office of State Senator Eric Adams: 572 Flatbush Avenue, between Maple & Midwood. Applications are available from 10 am 5 pm, Monday - Thursday. Office of Assembly Member Rhoda Jacobs: 2294 Nostrand Avenue at Avenue I. Applications are available Monday Thursday from 10 am 5 pm & Friday from 10-2 pm. Office of Assembly Member Jim Brennan: 1414 Cortelyou Road at Rugby Road. Applications are available from 10 am 5:30 pm, Monday - Thursday (closed on Friday). Also at 416 7th Avenue in Park Slope, from 10 am 5:30 pm Monday-Friday. Office of Councilmember Dr. Kendall Stewart: 1694 Flatbush Avenue, between Avenues I & J. Applications are available from 10 am 5 pm, Monday - Friday. Office of Councilmember Dr. Mathieu Eugene: 123 Linden Boulevard, between Bedford and Rogers. Applications are available from 10 am 5 pm, Monday - Friday.
If that sounds like you or someone you know, here are a few money-saving tips: Go generic. Unlike generic cereal or soup, where quality varies, generic drugs by law must conform to strict Food and Drug Administration guidelines for quality, strength, purity and stability. Generics usually cost a fraction of brand-name counterparts, and many insurance plans assign them significantly lower copayments. Ask your doctor or pharmacist if generic equivalents exist for your medications. Bulk up. Many insurers encourage ordering routinely taken drugs in larger quantities from mail-order pharmacies. For example, a 90-day supply of blood-pressure medication might have the same copayment as a 30- or 60-day supply. Multiply that by several drugs over a year and savings could really add up. Shop around. Because prices often vary widely, call or check Websites of several pharmacies, including online-only chains, to find the best deal. Two cautions: In addition to your doctor, make sure at least one pharmacist is aware of all medications you take (including over-the-counter) to prevent accidental drug interactions; and use only online pharmacies certified by the National Association of Boards of Pharmacy (http://vipps.nabp.net/verify.asp.) Pill splitting. Many drugs come in double-dosage tablets that cost close to or the same as a lower dosage. By splitting the larger dosage in half, you essentially get two doses for the price of one. Caution: Many pills should never be split, including time-release and coated medications, so always ask your doctor or pharmacist first. Drug assistance programs. Most pharmaceutical companies offer patient assistance programs (PAPs) that provide uninsured and low-income people access to prescription drugs they couldn't otherwise afford. There's lots of paperwork, but you can save hundreds or thousands of dollars if you meet their eligibility requirements. Ask your doctor, pharmacist or health clinic how to proceed, or visit Partnership for Prescription Assistance (www.pparx.org), which has enrollment information on over 475 public and private PAPs, including links to Medicaid programs. Also helpful are RxAssist (www.rxassist.org), NeedyMeds (www.needymeds.com) and Consumer Reports, which explains how PAPs work (at www.crbestbuydrugs.org, click on "Prescription Drug Assistance Programs"). Medicare. Medicare beneficiaries can sign up for Medicare Part D, which provides prescription drug coverage through dozens of plans offered by private insurers. Monthly premiums, copayment amounts, out-of-pocket limits and drugs covered under the plans vary considerably, so you'll need to be very careful when choosing the best plan for your situation. Read the information at www.medicare.gov/pdphome.asp for guidance on choosing the right plan. Another good resource is AARP's comprehensive guide to Medicare at www.aarp.org/health/medicare. Note that extra assistance with premium payments is available to low-income people. And, unless you turn 65 or otherwise become eligible for Medicare during the year (for example, through a qualifying disability), you'll need to wait for next year's open enrollment period in mid-November to join. Tax advantages. If your employer offers a health care flexible spending account (FSA), sign up. You can use pretax dollars to pay for prescription and over-the-counter medications, as well as other healthcare-related expenses, reducing your taxable income and thereby lowering your taxes substantially. To learn how FSAs work, visit Visa's free personal financial management site, Practical Money Skills for Life (www.practicalmoneyskills.com/benefits.) Bottom line: Don't let your health suffer because of high medication costs. Editor's Note: Jason Alderman directs Visa's financial education programs. To participate in a free, online Financial Literacy and Education Summit, go to www.practicalmoneyskills.com/summit2008.
HOW CAN I LOWER MY TAX BILL? CPAs recommend that you make tax-savvy choices such as participating in your company's 401(k) plan or contributing to an individual retirement account. Consider turning to a professional, such as a CPA, for the advice you need to make sound decisions designed to improve your financial situation. Your CPA may be able to help you reduce your tax bill by pointing out deductions you have missed. HOW CAN I MAKE THE MOST OF TAX SEASON? Although many people dread tax time, it does provide a great opportunity to get a perspective on your financial situation. Once you've done the hard work of gathering your financial records and receipts, all of that information provides a great snapshot of your financial situation. Are you making the right investments to meet your long-term goals? Are you getting the best mortgage rate? Now's the time to consider these and other important financial questions using the data you've put together to compile your tax return. WHAT INFORMATION DO I NEED? When you're gathering tax records, at a minimum you will need to have the W-2 forms you've received from your employer and any other form documenting your income (such as a 1099 interest or 1099 dividend form). You'll also need records of mortgage interest and property taxes you have paid and receipts for items that you plan to deduct, such as unreimbursed business expenses. You should also have information about deposits you've made in a traditional individual retirement plan so that you can report those on your return. WHAT IF I'M NOT READY ON TIME? It is possible to get an automatic six-month extension on filing your return. You will have to estimate what you might owe and pay any taxes due with the extension by the April 15, 2008, deadline. If the balance of the tax due is paid with the filing of your income tax return, no penalty for failure to pay will apply unless the unpaid amount is more than 10% of the total tax liability (unless you can show reasonable cause). You will have to pay interest on the balance due. However, the extension does give you and your CPA more time to review your situation and file an accurate return. WHAT IF I CAN'T PAY MY TAXES? A late filing penalty will not be imposed if you fail to make a payment with your extension provided you make a good-faith estimate of your tax liability based upon the available information at the time of filing. Of course, you will be subject to interest and possible penalties. You may request a monthly installment arrangement if you can't pay the full amount due on your tax return when you file by filing Form 9465. The IRS will usually tell you within 30 days if your payment plan is accepted. You will still have to pay interest and possibly a late payment penalty. Your CPA can advise you on how to use an extension and help you negotiate a payment agreement with the IRS. WHEN WILL I GET MY REFUND? If your return is complete and correct, you should receive your refund in about six to eight weeks from the time your return is received by the IRS. The wait should be about half that time for those who file electronically, according to the Service. For an update, you can go to the IRS Web site, www.irs.gov, and click on "Where's My Refund?," or call the toll-free IRS Automated Refund Information number 800-829-4477 or call the IRS at 800-829-1040. If you have further questions, or want more details on any of these topics, be sure to consult your local CPA for expert tax advice.
Customers save on the initial costs of home improvements with special financing as low as 1.99 percent or up to 25 percent cash back. Due to the improvements, customers will save for years to come through energy bills that are reduced by up to 40 percent through Home Performance with ENERGY STAR. "Making energy efficiency improvements in a home helps combat skyrocketing energy costs, creates a healthier living environment and reduces greenhouse gas emissions that contribute to global warming," said Paul D. Tonko, NYSERDA President and CEO. "Our enhanced incentives will help Con Ed customers save thousands of dollars on their initial efficiency investments, while also saving hundreds each year on their energy bills. Saving energy, being good stewards of the environment and investing in a strong societal commitment to future generations have never been a better investment." The first step toward achieving the array of benefits that accompanies making energy efficiency improvements is to schedule a Comprehensive Home Assessment with a Building Performance Institute (BPI) Accredited Home Performance contractor by calling 1-877-NY-SMART. The contractor will test the home and identify where energy-efficiency improvements can be made by evaluating heating and cooling equipment, insulation levels, and air leakage. Homeowners will receive a full report detailing recommended improvements, the cost of making those improvements, and available financial incentives. The contractor will also estimate monthly savings on energy bills as well as the length of time each improvement will take to pay for itself. The assessment will provide you information on the most cost-effective energy improvements. You decide which improvements to make on your home. Using the facts and recommendations of BPI contractors and the detailed evaluations, consumers can choose among the improvements with the greatest financial and environmental impact. When the contractor has completed all the selected measures, the home will be tested again to verify that the projected energy savings are actually occurring. "Customers can improve their home comfort from season to season and save energy through NYSERDA's Home Performance with ENERGY STAR Program. Now energy- efficient home heating equipment and weatherization is even more affordable with these special financial incentives for Con Edison customers," said Rebecca Craft, director, energy efficiency programs, Con Edison. For a limited time, Con Edison residential customers who make energy-efficiency improvements such as replacing their hot water heaters or heating equipment, installing insulation or having air sealing done, in addition to upgrading their windows and doors, appliances, lighting, or cooling equipment, are eligible for generous incentives. The financial incentives range from 1.99% to 5.99 % APR financing on up to $20,000, or 10% to 25% cash back (up to $6,500), depending on the work being done to the home. The financial incentives are determined for each consumer by the type of heating system being installed in the home and the energy-efficiency measures undertaken. Participating BPI Accredited Home Performance contractors will work with residents to identify financial incentives for which they may qualify for. Additional incentives are available to income-qualified customers through NYSERDA's Assisted Home Performance with ENERGY STAR Program, which covers up to 50 % of the costs associated with making energy-efficiency improvements, up to $5,000 per household and $10,000 for a two- to four-family building. NYSERDA uses innovation and technology to solve some of New York's most difficult energy and environmental problems in ways that improve the State's economy. Visit www.GetEnergySmart.org or call 1-877-NY-SMART (1-877-697-6278) to learn more ways to save energy.
"A smoke detector can only save lives if it has working batteries," said Allstate Spokesperson in New York Krista Conte. "Families, including small children, should know what the smoke detector sounds like and what to do if they hear it." Allstate offers some fire safety basics to discuss and practice at home with all family members: * Check the batteries in your smoke detectors often. Keep extra batteries on hand and replace them every six months. * Check your smoke detectors monthly. Replace any that are 10 years or older. Make sure everyone knows that the piercing sound means danger, and they should escape quickly. * Position detectors smartly. Place one on every level of your home and near areas where you and your family sleep. * Keep fire extinguishers handy. Make sure there's at least one on each floor especially near the kitchen, garage, laundry room and workshop. * Teach children that they should never hide in closets or under beds when there is a fire. Tell them firefighters may look scary when they're wearing their protective gear, but they are there to save you. * If your clothes are on fire, Stop, Drop & Roll until the fire is out. * Talk with your family and make sure everyone knows what to do in case a fire breaks out. Make sure you have two ways out of your house. Create a fire safety plan, with a designated meeting place. * Inventory your home. Take the time to complete an inventory record of your personal property. In addition to completing an inventory record, take photos or videotape your items it will make it easier to replace an item if you have a photo of it.
Although reverse mortgages make sense for some people - especially those on fixed incomes who want to remain in their homes as long as possible - they have complex rules and hefty upfront costs, so look carefully before you leap. Keep these considerations in mind: You may qualify for a reverse mortgage at age 62 if you've paid off your home and it's your primary residence. The loan amount is determined by a formula based on your home's appraised value, your age, current interest rates, mortgage insurance and applicable fees. Generally, the older you are and the more valuable your home, the greater the available loan. Unlike regular home equity loans/lines of credit, where you make monthly payments to repay the money you've borrowed, with reverse mortgages you don't need to repay until you move out permanently, sell the property or die. You or your heirs must then repay the borrowed amount or sell the house. Any leftover money goes to you or your estate. Other key differences from regular home equity loans/lines of credit: Reverse mortgages have no minimum income requirements; the repayment amount never exceeds the home's sale value, so you're never liable for more than you originally borrowed as with a traditional mortgage when the home's value decreases. You can take the money as a lump sum, a line of credit, fixed monthly payments or any combination. And because it's a loan, it's not considered taxable income so Social Security and Medicare benefits usually aren't impacted. Observe these cautions, however: * Reverse mortgage fees are quite high (up to 5 percent of the loan's value), so also consider other alternatives such as a home equity loan or line of credit, downsizing homes or selling your home and renting. * Reverse mortgages are a better deal over a longer period of time, so if you plan to move in a few years they're probably not your best solution. * Because you continue to own the home, you're responsible for any homeowner's fees, property taxes, insurance and repairs. Failure to meet those obligations could ultimately result in loan cancellation or even foreclosure. * The longer you carry a reverse mortgage, the more it will decrease your home equity, so the inheritance you leave behind will be smaller. However, weigh that and living in your own home against the expense and possible inconvenience of moving into assisted living. Be sure to consult a financial professional before applying for a reverse mortgage; if you don't know one, www.plannersearch.org is a good place to start your search. Note that federally insured reverse mortgages require you to meet with an approved independent counselor before applying for one. AARP provides a comprehensive overview of reverse mortgages, including a free online seminar and a loan calculator (www.aarp.org/money/revmort). Also, visit the U.S. Department of Housing and Urban Development's site and enter "reverse mortgage" in the search box (www.hud.gov). Another good information source for issues retirees often face is Visa's free personal financial management site, Practical Money Skills for Life (www.practicalmoneyskills.com/elder). Reverse mortgages aren't for everyone, but if staying in your home as long as possible is a goal, this kind of loan could be a good choice. Editor's Note: Jason Alderman directs Visa's financial education programs. To participate in a free, online Financial Literacy and Education Summit, go to www.practicalmoneyskills.com/summit2008.
If you've recently been laid off or fear one is around the corner, here are a few ways to cope with what lies ahead: Rein in expenses. It may take months to find another job, which could wipe out your savings. If you don't already have one, create a budget and stick to it like glue. Know exactly how much money you have and track all expenses. Postpone major purchases (car, vacation, new clothes) and trim smaller expenses: Avoid restaurants and cook at home; cancel cable TV; wear a sweater and turn down the thermostat - there are hundreds of ways to save money. Have a rainy-day fund you could live off for at least three months. Curtail retirement savings. If you're still employed but fear the worst, this may be the one and only time it makes sense to temporarily halt your 401(k) plan contributions. You may need that money to survive the next few months and early 401(k) withdrawals come with steep penalties. Besides, you may be able to make a lump-sum contribution later if it was a false alarm. Consult a financial professional about your particular situation and if you don't know one, www.plannersearch.org is a good place to start your search. Ask about severance benefits. If you're laid off, find out what benefits are available. Many employers offer severance pay or help with COBRA health insurance premiums; however, they have no legal obligation to do so. Many companies also provide outplacement counseling, which may include professional assistance with resume writing, interview skills and job searches, or even office equipment usage. If your company doesn't offer outplacement, visit www.careeronestop.org, a U.S. Department of Labor-sponsored website featuring career resources and connections to local career centers that provide employment and training opportunities. AARP also has a comprehensive guide to surviving job loss, including discussions about age discrimination and employee rights (www.aarp.org/money/careers/jobloss). Apply for unemployment benefits. If you become unemployed and meet certain eligibility requirements, you may qualify for unemployment insurance while looking for a new job. Go to www.servicelocator.org/OWSLinks.asp for details. Polish your resume. You may be competing against hundreds of other job applicants, so make sure your resume stands out from the crowd. It should accurately reflect your accomplishments and show potential employers you have the experience and qualifications they seek. Use concise, strong language and an organized appearance. It's a good idea to update your resume regularly, especially after a promotion or changed job responsibilities. Alert your network. Let family and friends know you're looking; they may know about opportunities or spread the word on your behalf. Seek out networking events sponsored by the Chamber of Commerce, local colleges, trade associations or other business and social organizations - even volunteer work. Track job-search expenses. If you itemize income tax deductions, many job-search-related expenses are deductible, including resumes, business cards, phone calls, unreimbursed job interview trips and career counseling. For more tips on what to do if you lose your job or during other unexpected life events, visit Practical Money Skills for Life, Visa's free personal financial management site (www.practicalmoneyskills.com/unexpected). Being laid off can be very stressful, but if you're prepared with a good game plan, you can minimize the time you are out of work - and the pain that goes with it.
There might not seem to be an obvious connection, but Trudeau is the infomercial hotshot behind the multimillion seller "Natural Cures 'They' Don't Want You to Know About," a book that posits -- among other things -- that sunscreen causes skin cancer. Trudeau has now turned his considerable marketing talents to tackling America's debt problems with his new book "Debt Cures 'They' Don't Want You to Know About," supported by a 30-minute infomercial designed to look like an independent talk show. In the show, Trudeau's story boils down to this: "The man is keeping you down." It's not your fault you have all that debt, it's the fault of those big banks that gave you credit in the first place. People don't cause their own debts, banks do. The infomercial has that slightly greasy feel -- kind of like sunscreen -- so I had to check out the book. It's not some cheap book. "Debt Cures" costs $29.95 plus $11.95 for shipping and handling. That struck me as odd, if only because Trudeau says in his infomercial that banks should simply include fees -- charged on late payments or exceeding the credit limit -- as part of "interest." By that logic, Trudeau should call the shipping charges "part of the price" and say his book sells for $41.90. But if you call for the book, you will be offered a whole lot of other goods and services, and you'll be expected to subscribe to the monthly Debt Cures newsletter for $9.95 per month. By the time you get off the phone, if you fall for the wide range of sales pitches, you'll be about $250 deeper in debt and will add to that debt every succeeding month. Thankfully, if buying "Debt Cures" doesn't kill you (financially speaking) it can save you, as the information it contains is fine. Alas, there are no easy "cures" to an individual's debt problems. Truth be told, most of the information is readily available in personal finance columns you can find online or in books that are readily available in your local library. What's more, some of Trudeau's cures have actually reached their expiration date, such as his first suggestion for rebuilding credit: "piggybacking." That's when someone with a good credit score makes someone with a bad score an "authorized user" on an account. The piggybacker never uses the card, but gets the benefit of the regular payments from the person with good credit; the problem is that the credit-scoring industry pretty much wiped out the practice in September, when it stopped considering accounts on which the borrower is an authorized user. If I could have reached Trudeau to discuss the book -- and I tried but no one answering the phones seemed able or interested to track him down once they learned it wasn't a sales call -- I would have expected him to take the position of his infomercial, namely that this is just one more case of the man keeping consumers down. No easy way out "There's no secret loopholes, no magic formulas, no way to wiggle out of legitimate debt other than the things we already know about," says Gerri Detweiler, author of "The Ultimate Credit Handbook," one of the classics for helping consumers learn how to properly handle debt. "Package it any way you want, it's still the same basic advice ... and it's nothing you need to get a monthly newsletter to learn." That's not stopping Trudeau, who relishes in calling himself the "most feared man in Corporate America" and who says in the infomercial that he's the "messiah" for consumers. It's hard to believe that any "messiah" will arrive in the form of a guy who was banned by the Federal Trade Commission "from appearing in, producing, or disseminating future infomercials that advertise any type of product, service, or program to the public, except for truthful infomercials for informational publications." (This is why he moved from selling health-care products to selling information to fix problems, although the FTC went after him again in September on claims made supporting his "weight-loss cures.") Moreover, the would-be credit savior telling you how "to turn the tables" on the banks also has a 1990s conviction on his record for credit-card fraud. He's hardly the next Ralph Nader he fashions on television. "A consumer advocate is supposed to be somebody who gets as much information as possible out to the maximum number of people who need it, at the lowest possible cost ... if any," says Marc Eisenson of Good Advice Press, author of the 1980s classic "The Banker's Secret," the book which first taught Americans the value of prepaying mortgages and auto loans. "If you want good advice on debt, you can find it from a number of different books, all available for free from your local library. ... If you're paying a lot of money to get fancy ideas on how to cure debt problems, it's a sign of how you got those debt problems to begin with. Skip the book, visit the library, and use your savings to pay one of your bills; that'll be a good first step."
Information obtained during the FBI investigation has been provided to the Department of Homeland Security (DHS). DHS has taken steps to alert their public and private sector partners with the release of a Critical Infrastructure Information Notice (CIIN). The e-mails are intended to appear as legitimate messages from the above departments, and they address the recipients by name, and other personal information may be contained within the e-mail. Consistent with previous efforts, the scam will likely be an effort to secure Personally Identifiable Information. The nature of these types of scams is to create a sense of urgency for the recipient to provide a response through clicking on a hyperlink, opening an attachment, or initiating a telephone call. It is believed this e-mail refers to a complaint that is in the form of an attachment, which actually contains virus software designed to steal passwords from the recipient. The virus is wrapped in a screensaver file wherein most anti-virus programs are unable to detect its malicious intent. Once downloaded, the virus is designed to monitor username and password logins, and record the activity, as well as other password-type information, entered on the compromised machine. "Through FBI investigations we frequently uncover information about ongoing cyber attacks and scams. We share this information through our partnership with DHS to alert the public and the private sector," noted James E. Finch, Assistant Director of the FBI's Cyber Division. Be wary of any e-mail received from an unknown sender. Do not open any unsolicited e-mail and do not click on any links provided. To receive the latest information about cyber scams please go to the FBI website and sign up for e-mail alerts by clicking on one of the red envelopes. If you have received a scam e-mail please notify the IC3 by filing a complaint at www.ic3.gov. For more information on e-scams, please visit the FBI's New E-Scams and Warnings webpage.
Although you may not be able to personally influence the global supply and cost of oil, there are many steps you can take to lessen your own home energy expenditures. For example: Turn down the heat. You can trim your heating bill by 3 to 5 percent for every degree you lower your thermostat in the winter (or raise it in summer). Try lowering it further when you go to bed for even bigger savings. Insulate your home. Up to 30 percent of heated or cooled air can be lost through leaks, so add weather stripping around windows and doors and caulking around ducts, plumbing bypasses and other wall, floor and ceiling openings. Consult a contractor about insulating your attic, exterior walls, floors and crawl spaces. Lower the water temperature. Heating water is the third-largest home energy expense, after heating/air conditioning and electrical appliances. Try lowering your water heater temperature to 120° F or lower - no sense running scalding tap water 24 hours a day. Just make sure your dishwasher's manual says that's okay. Many hot water heaters work more efficiently with insulating blankets; however, be sure not to cover the thermostat. Other energy-saving tips: * Buy a programmable thermostat so you can lower the temperature when you're not home and heat things up shortly before you return. (The reverse works in summer.) * Use Energy Star products, which consume up to 50 percent less energy and water than standard models. Go to www.energystar.gov for information on finding local retailers, rebates offered by Energy Star partners and utilities, federal tax credits, home improvement suggestions, and much more. * Close off unused rooms and shut their heating vents. * Clean or replace furnace filters monthly during the winter and dust refrigerator coils every few months to ensure more efficient operation. Also, clean the dryer lint trap after each use. * Install tempered glass doors and a heat-air exchange system to your fireplace to re-circulate warmed air; and always close the damper when not in use. * Replace old windows with new high-performance, dual-pane windows. * Open blinds or curtains on sunny days to help warm the house; close them at night to retain heat. * Compact fluorescent lamps use 75 percent less energy than incandescent bulbs, last 10 times longer and save $30 or more over the lifetime of each bulb. * Use dimmer switches, timers or motion sensors on incandescent lights. * Run full loads in your washer and dryer and use cold or warm water whenever possible. Most detergents are formulated accordingly. * Run full dishwasher loads and use the unheated drying cycle if it has one. * Don't preheat the oven and limit opening the door - the temperature drops about 25 degrees each time you do. * Turn off lights, computers, televisions and other electronic equipment when not in use. Remember, besides being good for the environment, the less energy you use the lower your utility bills will be.
The bright, red words: "Free Money!" fill the screen. It's an old story, and one that makes small-business consultants, counselors, and advice columnists (this one included) cringe. Whenever such ads run, we brace ourselves for calls and e-mail from entrepreneurs and would-be entrepreneurs who can't wait to get their hands on that free government money - which doesn't exist. Why are people who supposedly want to be hard-headed, no-nonsense business types so gullible? This is a subject the Smart Answers column has addressed before, but I periodically revisit it. That's because these aren't harmless hoaxes. Seminar sellers and book hucksters routinely con people into shelling out hundreds of dollars to hear lectures or purchase directories that contain information readily available (yes, really for free!) in any public library or on the Internet. "I've been working in small-business development for 16 years, and this urban legend never goes away," sighs John Rooney, a professor at the Lloyd Greif Center for Entrepreneurial Studies at the University of Southern California. "Interest and calls peak when some new book or ad kicks in." "BRIGHTEST TECH MINDS." Common sense and the most basic awareness of business principles should tell entrepreneurs that no one besides Mom and Dad (maybe) will give you no-strings money to start a for-profit business. "If the government was in the position of providing all of the funds for free to people who start their own businesses, we wouldn't last long," says Mike Stamler, a spokesman for the U.S. Small Business Administration in Washington, D.C. "Not to mention that the American people would never stand for the government setting individuals up in business at no cost, and all at taxpayer risk." Yet, the myth persists. Like most con artists, the free-money hucksters take a grain of truth and distort it. There are a few highly specific grants for small businesses. A look at the details shows the money is hardly free. It comes with a host of restrictions and quid pro quos. For example, some local agencies give small grants to businesses that locate in poor areas and guarantee jobs to people in an underemployed community, says Phil Borden, director of the Women's Enterprise Development Corp., a Long Beach (Calif.) nonprofit business assistance center. There are also some very restrictive, difficult-to-obtain grants given to small businesses to research new technologies for the government. "There is something called the Small Business Innovative Research (SBIR) program that gives entrepreneurs up to $100,000 to research an idea that's considered promising and up to $1 million to create products from it, if the research pans out," Borden explains. "The problem is, the promising ideas have to do with things like how to capture a satellite in orbit and repair it. The people who compete with intricate, detailed proposals for these grants are experts in engineering and science and have the brightest technology minds in the country. The notion that this kind of money is available to folks off the street is a joke." READY VICTIMS. Still, the free-money hucksters find ready victims because people want to believe there's a way around the hard work of raising capital. "So many people say they heard it from a friend or saw it on TV. Of course, they've never actually met anyone who got any free money. It becomes like the Holy Grail of small business, and a lot of entrepreneurs get caught up in this idea that it's out there," Rooney says. The true believers are amazingly persistent. "About six or eight years ago, there was a scam like this that produced a run of calls," says the SBA's Stamler. "The huckster at the heart of it implied that these grants were there, but the government didn't want to let everyone know about them," Stamler recalls. "He told people not to take 'no' for an answer when they called us." Rooney says he once ordered a "free-money" book advertised on television.The author claimed every entrepreneur was entitled to a government grant. Rooney received a directory of farmer's subsidies, Housing & Urban Development programs, and government-loan applications. What about those testimonials from happy entrepreneurs? Listen closely, Stamler says. They usually say they "got" so much government money for their small business - they don't say how. Most of those featured entrepreneurs have gotten small-business loans, he says. The SBA guaranteed more than $16 billion in loans during fiscal 1999 through its three major financing programs. LEGITIMATE SOURCES. The irony is that in this boom time for small business, there are many sources of loans or equity financing for startups. "Money's not that hard to get from friends and family if you've got a really good idea," says Rooney. "I've seen college students raise millions with their dot.com ideas. Why waste your time with the snake-oil salesmen when you could be talking to professionals who know what they're doing?" After all, it's not as though the average startup needs many millions to get off the ground. As Jim Weidman, spokesman for the National Federation of Independent Business points out: "Most new businesses are started with a very small amount of money, around $5,000. So people come up with it out of their personal savings or borrowing from their relatives, unless they are buying an ongoing enterprise or starting a business that needs a lot of initial funding for inventory, working capital, or buying or leasing a building." For more information on funding for startups, visit the SBA's Web site at www.sba.gov . It features extensive information on small-business loans and startup funding. For information on venture capital, visit the Venture Capital Resource Library, www.vfinance.com , the Capital Network, www.thecapitalnetwork.com , or Garage.com, www.garage.com .
House of Representatives Speaker Nancy Pelosi said Congress would act on the deal "at the earliest date, so those rebate cheques will be in the mail." Some 117 million US homes will receive a rebate of up to $600 for individuals and up to $1,200 for married couples. Washington is moving fast to try to avoid the US falling into a recession. Couples with children will also get an extra $300 per child. The tax rebates for households should total US$100 billion, while businesses will benefit from up to US$50 billion of tax cuts. Property slump The agreement comes two days after the US central bank, the Federal Reserve, slashed US interest rates to 3.5 per cent from 4.25 per cent, its biggest cut in 25 years. Economists say the package needs to be put into action as soon as possible, before it is too late to help the economy. "I can't say that I'm totally pleased with the package, but I do know that it will help stimulate the economy," said the Democratic Party's Pelosi. "But if it does not, then there will be more to come." House Republican leader John Boehner, Pelosi and Treasury Secretary Henry Paulson met for more than five hours on Wednesday to forge the agreement. The US has been hit by a slump in the property market and a credit crisis caused by banks investing in assets backed by subprime mortgages. Some politicians are worried about the damage the plan will do to government finances. It could potentially double last year's budget deficit of US$163 billion. "I am concerned that in our rush to help, we talk ourselves into a quick, feel-good hit today that will leave us with a bigger budgetary hangover tomorrow," said Rep Paul Ryan of Wisconsin, the senior Republican on the House Budget Committee.
Given the importance of personal savings to retirement income, this can be a costly mistake. Minus a rich uncle's fortune, the only way most Americans can ensure a secure retirement is by saving aggressively. That's why Congress passed the Pension Protection Act (PPA), which, among other reforms, made it easier for employers to automatically enroll employees in their 401(k) plans. Previously, you had to actively opt-in to participate in your company's 401(k). More companies will likely begin offering automatic 401(k) enrollment thanks to newly finalized PPA regulations: Employers who follow strict guidelines about funds where they should direct employee default contributions will be protected from legal liability should market fluctuations impact account values. If your employer adopts automatic enrollment, you'll be given ample advance notice before being signed up. You can always opt out, increase your contribution or change how your funds are invested - it's your money. But the hope is human nature will kick in (see "procrastination" above) and you'll embrace the wisdom of setting aside money for retirement in these tax-advantaged plans. A few other considerations to make the most of your 401(k): Matching contributions: Many employers match a portion of your savings. You're passing up free money if you don't participate, so always contribute at least enough to get the full match. Say your employer matches 50 percent of the first 6 percent of pay you save: If your salary is $40,000 and you contribute 6 percent ($2,400), you'd receive another $1,200 in matching contributions. Where else could you find a 50 percent investment return? Investment options: Starting contributions is only the first step: You also need to manage how your account is invested. When faced with numerous or confusing investment options, many people opt for money market or cash funds, which, although less risky, are also less likely than stock or bond funds to outperform inflation over time. That may be a good strategy if you're close to retirement, but younger workers often have decades to weather stock market ups and downs. One increasingly common option is the lifecycle (or target-date) fund, whose investment mixture varies based on your age and expected retirement date, becoming more conservative over time. Some employers also offer asset allocation or managed funds, where a mixture of investments is designed based on your individual needs. As always, consult a financial professional for questions about your particular situation. Fees: Another important consideration when choosing investment funds is the plan administrator's various fees and expenses. Fees are usually expressed as a percentage of your plan assets and are typically deducted directly from your investment returns. It may take a little digging to uncover these fees, but it's worth the effort: A 1 percent difference in fees - say 1.5 percent vs. 0.5 percent - could decrease your account balance by thousands of dollars by retirement. Ask your benefits department where you can find the plans' fees, and to learn more about 401(k) fees, visit www.dol.gov and enter "A Look at 401(k) Plan fees." Another good resource on 401(k) plans is Visa's free personal financial management site, Practical Money Skills for Life (www.practicalmoneyskills.com/benefits). Get involved in actively managing your retirement savings - it's your future and your responsibility.
Here's what you need to do: First, stop using credit cards. Use debit cards instead. Credit card companies want you to go into debt. Ever notice how they hand out so many gifts and rewards? It's so profitable to get you into debt that they're actually willing to bribe you to spend. It's pure gravy when you don't pay your balance in full or miss a minimum payment. Unsurprisingly, credit card companies are good at getting people to spend beyond their means. In 1996, the average U.S. household had $5,875 in credit card debt. By 2006, that figure had climbed to nearly $10,000. With debit cards, you're spending your own money. So you can't be lured into debt. Next, you should avoid fees and earn interest on all your money. Most people use banks that pay virtually no interest on deposits and have a slew of hidden charges and complex fees. Take overdraft fees. It is estimated that banks make a whopping $17.5 billion annually through these charges. The reason this is so profitable is twofold. First, the average overdraft fee has climbed to $29. And second, banks apply it liberally. Say you start your Saturday morning with $1,143 in your account -- and then send $900 to your landlord, $50 to your electric company, $150 to your cable and internet provider, and $10 to your favorite charity. Each recipient deposits the checks four days later. Unfortunately, that same day, your nephew cashes the $250 you gave him for his wedding six months ago. By the time he returned from his honeymoon, you'd forgotten about it. Because most banks process daily transactions from the largest to the smallest dollar amount, you're looking at four separate overdraft fees. So if your bank charges the industry average, that's $136 in penalties. A similar fleecing happens at the ATM. When your bank charges you to use another bank's cash machine, you get socked with two separate fees -- one at the ATM and one on your statement. So instead of just paying what you see on the screen, you're actually paying double that amount -- to access to your own money! When this double charge is factored in, the average ATM fee is $2.91. On a $50 withdrawal, that's a 5.8% charge. Banking customers shouldn't have to navigate a minefield to avoid hidden fees. So find a bank that offers a free overdraft line of credit with a competitive interest rate instead of charging overdraft fees. That way, whenever your checking account goes negative, you automatically borrow the cash you need at a reasonable cost rather than a lump sum fee. The "overdraft" simply shows up as a charge on your credit card, and there's no penalty fee. Banks also shouldn't charge you to use another bank's ATM. Finally, find a bank that pays high interest on all your money. These days, there's no reason to do business with a bank where you'll lose money over time. According to Bankrate.com, the average savings bank pays less than half a percent of interest - well under the rate of inflation. The annual percentage yield on the average checking account is even worse. A number of direct banks are now offering savings and checking accounts that pay three percent or more. Millions of Americans use big banks because they assume that if a bank is well-known and popular, it must be offering its customers a good deal. But this clearly isn't the case. Making this mistake could be costing you a fortune. In 2008, fixing this mistake could save you thousands. Editor's Note: Arkadi Kuhlmann is president and CEO of ING Direct.
On the flip side, those same rising interest rates, combined with increasingly stringent lending requirements, have left many potential homebuyers out in the cold. If that's your story, here are a few steps that can get you back in the real estate game: Boost your savings. Many people are in financial hot water today because they bought homes they really couldn't afford using risky loans with features like 0 percent down, negative amortization (where your monthly payment doesn't cover interest owed and unpaid interest gets tacked onto the loan amount) or balloon payments due after a few years. To avoid those traps, you should save enough for at least a 10 percent down payment. Also, when calculating how much you can afford to spend each month, don't forget other home-related expenses like property taxes, homeowner's insurance, private mortgage insurance (for down payments under 20 percent), repairs and utilities. Some experts suggest allocating up to an extra 40 percent of your monthly mortgage payment in your budget for related expenses. Develop a budget. Step one to meeting any long-term savings goal is to create a detailed budget so you know exactly what's coming in, what's going out, how much you need to save and how long it will take. Practical Money Skills for Life, a free personal financial management site created by Visa, features a complete guide to creating a livable budget, along with interactive budgeting tools and calculators (www.practicalmoneyskills.com/budgeting). The site also contains a nine-step guide to homeownership, including preparations to qualify for financing and how different mortgages work (www.practicalmoneyskills.com/homeowner). As always, consult a financial professional for questions about your particular situation. Improve your credit score. Even with thousands of dollars banked for a down payment, you may find it's difficult to qualify for a mortgage if you can't demonstrate a solid track record of obtaining and paying loans - or worse, if you have a history of late payments or exceeding credit card limits. The three major credit bureaus - Equifax (www.equifax.com), Experian (www.experian.com) and TransUnion (www.transunion.com) - track your credit history and use the information to compile credit reports. This credit history is also used to create three-digit credit scores that lenders employ to determine whether you're a suitable credit risk. Poor scores could either prevent you from qualifying for a mortgage or dramatically increase the interest rate you'd have to pay. To know where you stand, order your credit reports and review them carefully for errors or fraudulent activity. You can order one free credit report per year from each bureau through www.annualcreditreport.com. If you go through the credit bureaus' own sites, you'll be charged a small fee. To learn more about credit reports and credit scores and how to improve them, visit the Federal Trade Commission's website (www.ftc.gov/credit), www.myfico.com run by Fair Isaac, or Visa's free www.WhatsMyScore.org, site, where you can get a free estimate of your credit score. The only silver lining in the current real estate crisis is that tougher credit standards may prevent you from inadvertently getting in over your head. Take advantage of that warning and get your own finances on a firm foundation before you build a house on it. Credit USA: Protecting Your Identity is a Must in 2008
MIAMI, FLORIDA (January 7, 2007) One of the resolutions every American should make this year is to do everything they can to protect their identity. According to the Federal Trade Commission (FTC), just in 2005 alone there were 8.3 million U.S. adults who found they were victims of identity (ID) theft. For those whose ID is compromised, it can mean economical losses, hours lost trying to fix the problem and credit score that sink, thus leading to further financial loss.
"It's imperative that people start the year off right and do everything they can to protect their ID. There's no better time than now to take some steps that can help prevent theft from happening," explains Dr. Terrel Alexander, founder and CEO of Credit USA, Inc. (http://www.a1creditusa.com), the first African-American owned network marketing company in the credit industry.
Here are some steps that can be taken to help prevent ID theft: * Protecting your social security number as much as possible.
This requires being cautious of who you hand it out to and finding
out what it will be used for. A social security number should
never be carried in a wallet, or be put on a license or check. "Taking just a few of these steps will help safeguard an identity," says Dr. Alexander. "The public needs to be proactive in protecting their ID. If they don't, it can mean years of headaches and poor credit."
If someone suspects they are the victim of ID theft they should immediately place a fraud alert on their credit report by contacting the credit agencies. They should also close any accounts that they believe have been tampered with. Additionally, consumers should file a report with the FTC and their local police department. NEW YORK, NY (January 7, 2008) - Attorney General Andrew M.
Cuomo Attorney General Cuomo urged consumers across the state who
incurred "This settlement with PeoplePC provides relief to consumers
misled into
The Attorney General's investigation found that while PeoplePC According to the Attorney General's findings, PeoplePC claimed
in its Under the terms of the settlement with the Attorney General's
office, Åú Clearly and conspicuously disclose any hidden
charges consumers Åú Provide refunds to customers across New York
State who incurred Åú Pay to the State of New York $20,000 in penalties and costs. New York customers who incurred charges by using telephone
access The case was handled by Assistant Attorney General Karen Geduldig
of To download a copy of the Refund Claim Form click here: To view a copy of the Assurance of Discontinuance (AOD) click
here:
One good way to lower your tax bill is to take advantage of favorable annual IRS tax code changes, such as cost-of-living adjustments to various personal exemption amounts, allowable tax deductions and rising income limits for retirement savings plan contributions. Here are a few 2008 tax code amounts to keep in mind: Defined contribution plan limits. After regularly increasing since 2001, the maximum individual contribution for 401(k), 403(b) and 457 plans remains unchanged at $15,500. If you're over age 50 you can also contribute up to another $5,000 per year. The annual limit for combined employee and employer contributions to these plans rises from $45,000 to $46,000 in 2008. Remember, making pretax contributions to these plans reduces your taxable income, which in turn lowers your taxes. To learn more about how 401(k) plans work, go to Practical Money Skills for Life, a free personal financial management site created by Visa USA (www.practicalmoneyskills.com/benefits). Defined benefit plan limits. The annual limit on how much employees can receive from a defined benefit (pension) plan increases from $180,000 to $185,000 in 2008. Individual Retirement Accounts (IRAs). The maximum amount you can contribute to a regular or Roth IRA increases from $4,000 to $5,000 in 2008 (and from $5,000 to $6,000 for those aged 50 and older). Savers credit. Low- and moderate-income workers who contribute to an IRA or company-sponsored plan may be eligible for an additional savers credit of up to $1,000 ($2,000 if filing jointly). Qualifying income ceiling limits rise to $53,000 for joint filers, $39,750 for heads of household, and $26,500 for singles or married persons filing separately. Read Form 8880 at www.irs.gov for more information. SIMPLE plan contributions. The employee contribution limit for these small-employer plans, which resemble 401(k) plans, remains unchanged at $10,500. Maximum catch-up contributions for those over age 50 remain at $2,500. Simplified Employee Pension (SEP) IRA plans. In these plans, your employer (or you, if self-employed) contributes directly to an IRA on your behalf. The annual minimum wage you must earn to participate remains at $500, the 2007 level. The maximum contribution allowed is a percentage of pay (25 percent if the company is incorporated; 20 percent if not) up to an annual pay limit of $230,000 - a $5,000 increase from 2007. College tax credit. You may be able to claim a Hope credit of up to $1,800 (increased from $1,650 in 2007) for qualified education expenses paid for each eligible student during their first two years of post-secondary education. Read Publication 970 at www.irs.gov for details. Social Security wage base. The maximum earnings amount subject to Social Security tax has increased to $102,000, from $97,500 in 2007. Reexamine your filing status options each year, particularly if your income or living situation has changed. And, if you held two or more jobs during the year, make sure you haven't overpaid Social Security. As always, consult a financial advisor for your particular situation. Be a wise consumer when it comes to paying your taxes: You'll have more money to save for your future - or to spend on the things you want.
"We have discovered that the average calling card delivers only 60% of the minutes promised," explained Gus West, president of the Hispanic Institute. "American consumers lose up to a million dollars a day because of fraudulent phone cards." The Hispanic Institute, in conjunction with independent telecommunications expert Network Analytics, tested 45 different international pre-paid calling cards for efficacy and value to see whether they lived up to the promises of their advertising. Here are just a few of the study's shocking findings: * Only one-third of the 45 cards tested delivered the full call-time promised. * Seven of the 45 cards (15.6 percent) tested didn't work at all. * Eight of the cards tested had call completion rates of 50 percent or less. Three cards provided less than 20 percent of the minutes promised. Dropped calls, poor listening quality and post-dial delays of up to 50 seconds were hallmarks of the majority of cards tested. Fifteen cards did allow for the caller to utilize the entire time balance. Pre-paid phone cards have emerged as a cost-effective option for those calling abroad. They are especially popular among recent immigrants who use calling cards to keep in touch with friends and family abroad. According to West, many calling-card firms employ scams that involve deceptive advertising, publicizing a certain number of minutes but delivering far fewer. West says that Hispanics are hit particularly hard. "Our findings quantify the unfortunately widespread nature of these scams," said West. Prepaid phone cards have grown into a $4 billion industry, responsible for 11 billion calls in 2004. "Fraudulent companies need to get the message that we will not stand for this sort of double-dealing," West said. "Armed with the findings of our new study, I'm hopeful that we'll be able to affect change on this important consumer issue."
Earlier this fall, the FTC announced that millions of numbers would begin dropping off the list next year when a five-year expiration date kicks in - meaning people would have to reregister their numbers or risk being bombarded by telemarketer calls once again. Fortunately, Congress is working on legislation to make opting out permanent, unless you want to remove your number from the list. If you haven't already registered, it's easy: Go to www.donotcall.gov, or call 1-888-382-1222. You can register all phones in your household. The Do Not Call Website and phone number are also where you can file complaints if telemarketers violate registry rules by contacting you against your wishes. Such violators have paid millions of dollars in penalties since the list's inception. Note that certain organizations are exempt from the Do Not Call regulations barring contact: Charities, political causes and candidates, companies conducting surveys and companies with which you've done business in the last 18 months are still allowed to contact you unless you specifically request to be removed from their lists. Also, telemarketers have up to 31 days to update their lists, so if you're not currently registered it could take that long for calls to cease. Be aware that the FTC doesn't allow third-party companies to register people on the list, so if someone offers to act on your behalf, hang up or take their information and report it to the FTC. These crooks will try to collect a fee for this free service - or worse, steal your personal information. Unfortunately, as anyone with a mailbox or email account knows, telemarketing is not the only way people are inundated with unsolicited marketing offers. In 2006, $166.5 billion was spent on direct marketing in the U.S. alone, and close to 100 billion spam email messages are sent each day. Here are a few things you can do to slow the flow of junk mail and email spam: Register for the Direct Marketing Association's Mail Preference Service. For $1, they'll remove your name from their prospect mailing lists (www.dmachoice.org). Not all companies belong to DMA, so it's not 100 percent effective, but you should see a big drop-off after 30 to 90 days. If you're overwhelmed by catalogs or other solicitations from retailers, you can either call their toll-free numbers or send in the mailing label containing your address and ask to be removed from their mailing lists. The same DMA Website above contains instructions for getting off commercial email lists, removing deceased individuals or others in your care from marketing lists, and precautions for preventing identity theft. Screen your emails. Be very cautious about opening unsolicited emails and never open attachments or click on links unless you know the source. Also, make sure your Internet Service Provider's spam and virus protection software is up-to-date. Ensure your kids understand these dangers as well. These precautions may be a minor pain, but they're well worth the effort for the peace and quiet they bring.
"While you should keep your vehicle in top operating condition all year round, it is especially important to get it winterized to avoid dangerous situations while traveling in frigid weather," state Krista Conte, Allstate Spokesperson for New York. It is very important to give your vehicle a once-over. Check your battery, engine, brakes, tire pressure, coolant, transmission and windshield washer fluids before driving. Also, make sure mirrors and seats are adjusted and seat belts are working properly. Allstate Insurance Company and Road and Travel Magazine offer the following vehicle winterizing tips: · Get a basic tune-up. Hoses, belts, spark plugs and wires should be checked and changed if necessary. · Protect against freeze ups. Antifreeze/coolant is extremely important in colder temperatures. If there is too much water and not enough antifreeze/coolant in the system, it can freeze up, expand and crack key engine components. Motorists should check fluid levels and top them off with a ready-to-use formula before temperatures plummet. · Check tire tread. Bald tires are not only unsafe, but can potentially lead to a disaster on slick, wet roadways. Tires connect the car to the road, so traction is utterly imperative during winter. In areas with high snow accumulation, four winter tires are a solid investment. They offer more traction when accelerating, braking and turning. · Replace worn brake pads and shoes. Having maximum stopping power is essential. · Use a winter-formulated washer fluid. Regular blue washer fluids can freeze in the washer reservoir or on the windshield while driving. Special de-icer formulas will stay liquid in the washer reservoir at temperatures as low as -34°F. · Check windshield wipers. If they streak or cause problems, motorists should buy blades especially made for winter conditions. Visibility is crucial this time of year. · Prevent gas line freeze. Using a winter fuel system cleaner helps prevent gas line freeze in extremely cold weather conditions. Prestone R&D engineers recommend adding a bottle of fuel de-icer at every fill up to keep moisture from freezing in the fuel line.
* Loan Originator-Whether consumers work with a mortgage broker or with their local bank, the loan originator's responsibility is to discuss loan program options, which should be based on the consumer's individual financial circumstances. The loan originator will take the initial application, review the consumer's credit history and collect personal information such as payroll, tax records, bank statements and the buyer's purchase contract. Loan originators working for a bank will offer programs specific to the bank. However, when working with a mortgage broker, the broker will review the programs of several lenders to determine which loan program will best suit the consumer's financial circumstances. The loan originator and/or the processor in their office will work with the consumer to complete all paperwork needed to arrange for the loan closing. * Processor- A mortgage processor verifies the information provided on the application and assembles the documents and verifications needed by the lender or bank. The documents are then sent to the lender's loan underwriter and once approved a pre-approval letter is issued. This pre-approval letter generally requires that additional items be completed prior to closing. The processor secures the items and sends the completed loan file back to the lender for closing. * Appraiser-Prior to releasing funds for a mortgage, the lender will hire a licensed appraiser to assess the value of the property. The actual loan amount provided will be based on the appraised value or the sales price of the home, whichever is lower. * Home Inspector-Once a consumer decides on a home that he/she would like to purchase, many will retain the services of a professional home inspector, whose job is to look at the home from top to bottom and provide a written report of any defects that might require repair. At that point, it is up to the seller and buyer to determine how the issues will be addressed. * Attorney-Many consumers choose to hire an attorney to represent them at closing. The role of the attorney is to review all documents related to the loan, and if any changes are warranted, to consult with the other parties involved. * Real Estate Agent-The role of the real estate agent is to work with homebuyers and home sellers throughout the process and guide them on appropriate sale price, negotiations and local area information. * Title Company-The title company is responsible for insuring that no liens exist on a property. They will insure the loan for the lender and offer the new owner an owner's title policy. Owner's insurance protects the owners against any claims the previous owners might have to the property. The title company arranges for the closing and signing of all documents, handles the disbursement of all funds and records all documents that are required. These are the most simplified of definitions and the professionals in each of the fields represented here will be able to give anyone asking a more detailed and specific explanation of their role in the home buying process. This is for your quick and easy reference.
2. If a tanker truck is filling the station's tank at the time you want to buy gas, do not fill up; most likely dirt and sludge in the tank is being stirred up when gas is being delivered, and you might be transferring that dirt from the bottom of their tank into your car's tank. 3. Fill up when your gas tank is half-full (or half-empty), because the more gas you have in your tank the less air there is and gasoline evaporates rapidly, especially when it's warm. (Gasoline storage tanks have an internal floating 'roof' membrane to act as a barrier between the gas and the atmosphere, thereby minimizing evaporation.) 4. If you look at the trigger you'll see that it has three delivery settings: slow, medium and high. When you're filling up do not squeeze the trigger of the nozzle to the high setting. You should be pumping at the slow setting, thereby minimizing vapors created while you are pumping. Hoses at the pump are corrugated; the corrugations act as a return path for vapor recovery from gas that already has been metered. If you are pumping at the high setting, the agitated gasoline contains more vapor, which is being sucked back into the underground tank, so you're getting less gas for more money.
Before getting caught up in the holiday rush, take a moment to review your employer-provided benefits and see if these year-end tips apply: Maximize 401(k) savings. Many employers offer 401(k), 403(b) or 457 plans that let you set aside money for retirement on a tax-deferred basis; that is, where you don't pay federal or state income taxes on your savings or their investment earnings until you withdraw them at retirement. These plans often match a percentage of your savings - commonly 50 percent or more on up to 6 percent of income saved. That's like a 50 percent return on your investment. If you're not contributing at least enough to take advantage of this match, you may be leaving hundreds of dollars on the table. There still may be enough time to catch up for 2007: Ask your Benefits department if you can make a one-time increase to your December 401(k) paycheck deduction. Or better yet, try to permanently increase the percentage saved going forward. While you're at it, examine your investment fund mixture to ensure it still matches your needs. For example, people approaching retirement sometimes move to more conservative funds. Ask a financial professional for help determining your tolerance for investment risk and which fund options you should choose. Use up Flexible Spending Account (FSA) balances. Health care and dependent care FSAs (also known as reimbursement accounts) let you use pretax dollars for expenses you would have had anyway - thereby lowering your taxable income and thus, your taxes. But factor in your plan's 2007 spending deadlines so you don't forfeit any leftover dollars. Many employers now allow a grace period of up to 75 days to use up 2007 account balances; ask your Benefits department to be sure. If there's money left in your Health Care FSA, consider qualified purchases you could make before the deadline, such as new eye glasses, contact lenses, braces, or over-the-counter medicines. Check IRS Publication 502 for a complete list of allowable expenses at www.irs.gov. On the other hand, if you've already used up your 2007 FSA account balance, think about which elective expenses you could postpone until early 2008. To learn more about 401(k) plans and FSAs, go to Practical Money Skills for Life, a free personal financial management site sponsored by Visa (www.practicalmoneyskills.com/benefits). Check deductibles and annual plan limits. Health plans often have calendar year-based restrictions so plot out your expenses carefully. For example, if your dental plan has an annual dollar limit for crowns and you know you need two replaced, ask your dentist about possibly doing one this year and one after January 1. And, if orthodontia for the kids is looming, ask your dental office for help scheduling the work so you can reap maximum advantage from your plan. Similarly, if your vision plan only pays for new frames every other year, figure out if you should buy a new set this year or wait until next year. It may be better to replace only the lenses now. It's easy to just sign up for benefit plans once a year and then forget about them, but it can really pay to stay on top of how they work and plan your expenses strategically.
The measures are designed to keep more people from sinking into the current mortgage crisis, where prospective home owners with shaky credit got mortgages with low interest rates only to see the rates rise and bring monthly mortgages up to prices they cannot afford. More than 2 million adjustable rate mortgages are scheduled to reset by the end of 2008. Many American homeowners are expected to go spiraling into debt, with the number of homes involved in foreclosure proceedings nationwide almost doubling in the third quarter of this year when compared with 2006, according to RealtyTrac Inc. "What we have today is a bill that cannot undo what happened, but makes it much less likely it will happen in the future," said Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee. But Republicans and the White House warned that congressional meddling with mortgage markets could make things even worse. Many Republicans argued the bill would make it harder for borrowers to refinance loans due to reset at higher interest rates, and make it almost impossible for poor people to get loans to buy a house. "Congress does two things very well: one is nothing and two is overreact," said Rep. Tom Price, R-Ga. "While we have had a period here where some credit, some loans, were unwisely given, but allowing individuals, allowing Americans to purchase homes and realize their American dream is a good thing." But Democrats said the subprime market needs to change to ensure that people get loans that are beneficial to them, not just good for the bottom line of some corporation. "This bill is not designed to harm the subprime market, it's designed to reform and correct it and make it work properly," said Rep. Keith Ellison, D-Minn. The bill passed 291-127. It now goes to the Senate, where a similar bill has been stalled for weeks. The White House did not threaten to veto the bill. "But the administration has concerns with the bill as drafted because it includes provisions that unduly restrict access to credit for potential homebuyers and reduce re-financing opportunities for current homeowners," the administration said in a statement. Included in the legislation are provisions that would: * Ban lenders from making loans that borrowers don't have the ability to repay; * Prohibit lenders from steering homeowners into refinanced mortgages that don't provide any benefit and create fines of triple the broker fee and costs; * Make Wall Street banks that package mortgage securities into investments liable for violations of lending laws; |