Happy 4th of July
July 4, 2008
I just wanted to wish all of you a Happy 4th of July. Today’s a day that we celebrate our freedoms. Please enjoy it. See you on Monday.
Bill
Don’t Mess With Your Nest Egg.
July 3, 2008
On this day before those of us in the U.S. celebrate our freedom, there’s a great threat out there to the foundation of our financial freedom - our nest eggs.
You see, a lot of us are digging into our nest eggs to help us through these bad times. And that’s not good.
This is the subject of a great article I read today by Robert Powell on MarketWatch.com.
Rob warns us against 3 common mistakes a lot of us make with the money that’s supposed to set us free and at least support us through retirement, if not also being left as a legacy to our heirs.
These mistakes include:
Retirement Accounts
Don’t stop contributing to your 401(k) and don’t cash-in any or all of it.
Life Settlements
Don’t cash-in your life insurance for a “life settlement”.
Reverse Mortgages
Don’t try to cash-out on your house with a reverse mortgage.
For each mistake, Rob looks at both sides of the issue and gives it to you straight. So, check it out. It could be the best thing you can do for your freedom this July 4th weekend.
Where Can You Put Your Cash Now?
July 2, 2008
Yesterday, the market dropped to such historic lows, we were “officially” in a bear market for a while. Plus, we just had the worst June since the Great Depression. And in the first half of this year, the Dow dropped 14.4%, the S&P dropped 12.8% and the NASDAQ dropped 13.5%.
So, where can you put your cash right now when the market is this bad? Well, according to an article by Kevin Baker on TheStreet.com, you might want to look at Tax-Free Money-Market Funds.
Yeah, I know that their returns aren’t great compared to what you were used to with stocks and mutual funds a few years ago. But when the market is in bear territory, you might want some of the security that these bond funds can offer.
The article talks about funds like Evergreen Institutional U.S. Government Money Market Fund (EGNXX) that’s returned 3.9% in the past year. I know that’s not something to write home about. But when you consider that it’s tax-free, now we’re talking a return that’s way better than a lot of stocks, mutual funds and ETFs, not to mention taxable savings accounts.
So, if you’re looking for a little more safety, you might want to check out this article and the bond funds that it features.
Help for Frozen HELOCs.
July 1, 2008
One of the most devastating consequences of the current mortgage crisis is the freezing of Home Equity Lines of Credit by their lenders.
Lately, a lot of homeowners – who usually use their HELOCs as ATMs – have discovered that their lenders have shutdown their lines of credit. Just at the time that these homeowners need money. And a lot of these borrowers don’t know what to do.
Well, according to a great article by Amy Hoak on MarketWatch.com, there are a few things that homeowners can do to help in these situations.
1. Call your lender
Find out why your available credit has been cut back and tell them why you think it shouldn’t have been reduced. Prepare yourself by knowing your credit score, loan-to-value ratio and debt-to-income value before you make the call.
2. Have your home reappraised
If you think that your home hasn’t dropped in value as much as others in your area, have it reappraised. It’ll cost a few hundred bucks, but it could be worth it.
3. Find another lender
If you have good credit and some equity built up in your home, you’ll probably be able to find another lender. Read more
