Finance & Loans

How much to withdraw from your retirement fund?

Now that you work hard and saved for your retirement, here comes a big decision. How much you can withdraw every month from your 401(k) or 457 retirement plan?

Conventional wisdom says that you can withdraw 3% to 5% from your fund. Some even suggest withdrawing 4% a year. But you need to consider several factors before you decide on an amount.

Look at the total available amount in your retirement fund. Yes, it is going to earn interest and based on your allocation your available balance may appreciate or decrease. Also, keep in mind that the inflation may require you to withdraw more or less over time. So, don’t withdraw an amount that is going to deplete the account long before your death.

Consider how long you can expect to live. There are lots of ways to calculate your life expectancy and calculators are available online. On average, you can expect to live 20 – 30 years after you retire at the age of 65.

Consider the method of withdrawal. If you withdraw a lump sum at the begging of the year, that money is not there anymore to earn an interest. Withdrawing an equal amount every month may work for you.

How Does Internet Credit Card Processing Work?

Internet credit card processing is something that some people find very complex. However, the way the stores that accept credit cards have it set up it is something that is very easy when it takes place. You simply just have to enter in your credit card number and other details relevant to the account and it charges you card. However, you should be sure that you are going through legit online merchant account services to insure that no one will be taking your credit card information and using it themselves. This is something that a lot of people worry about.

People worry about this due to the fact that it is so easy for someone’s identity to get stolen via the internet. If the system is not secure or someone hacks into it they can find out basically everything that they want to know. They can use the cards to purchase items due to the fact that they have all of your information and sometimes it can be very hard to prove that you did not use your card to make the purchase. This can be extremely difficult to prove it the person who uses your card makes purchases at stores that you usually shop at and has the items delivered to your home – some people will do this as a joke. However, when they do this they will make sure that it is items that cannot be returned for a refund or store credit.

How a loan can help repair bad credit

Being in debt is not a good situation to be in. But there are instances where getting another loan could be the way to get out of the situation and begin building your credit score again. This can be done through debt consolidation and credit restructuring.

Debt consolidation

You combine all your debt and get another loan from a third party and pay off all the debts and have only one repayment to make. You can also negotiate with the creditors and settle to pay a lesser amount or have the interest waived off since you are repaying in one payment.

Consolidation can also repair your credit rating since all the debts you settled will be reflected as “paid” which will improve the score and also making the consolidation loan repayments on time every month will add further to your credit rating.

One thing you need to keep in mind is that this kind of loan will be costly since you are getting the loan as a person with bad credit and a higher rate of interest will be charged from you but on the positive side the rate will be lesser than the interest charged on your credit card debt.

Why Accept Credit Cards?

It is very important for merchants to accept credit cards these days. Many people do not carry cash on them because they fear that they may be robbed or lose the money. Credit cards are the smarter way to spend however because many people will spend cash a lot faster and easier than they will their credit card. No one really knows why this occurs it may just be a simple mind thing yet it does happen. However, sometimes things can turn out to be the total opposite.

Some merchants offer free credit card terminals while other online merchant credit card processing will require a fee. Many people are amazed at the fact that people are willing to pay interest on credit cards while others see it as something that is perfectly normal. We all know that credit cards can help your credit so this may be a reason as to why people do not use cash as well.

Overall, when buying something offline people feel secure using their credit cards while others will not make the purchase online they are able to check out with other sources such as PayPal or alert pay. However, over time many merchants have updated their payment methods and allow customers to check out this way which in return helps the customers feel more secure and the merchant is still getting paid – sometimes faster. So, in the end both the customer and the merchant ends up happy and doesn’t run into any problems down the line.

Secure credit card v Prepaid credit card

They both appear to be the same as they both need funds to be deposited before they can be used. But there are many differences between the two and each will be suited to people with different needs. So what are the key differences between the two?

A secure credit card requires a deposit to be made as security . Your credit limit will be determined on the amount of the deposit with the limit usually being a little over the value of the deposit. You pay your bills after making the purchases as you would with a regular credit card. These report to the major credit bureaus, therefore if you are seeking to rebuild your credit history this is a good option.

If you are not disciplined you can exceed the credit limit and if unable to pay back on time, will adversely affect your credit score.

A prepaid credit card requires a deposit to be made and you can make purchases against that amount. This will prevent you from over spending since you are spending your own money, therefore reducing the risk of debt. But these do not report to the credit bureaus and thereby not suitable for building up your credit score.

Extended hours In the Stock Market

With the economy not being the best, people worrying about jobs, and saving for retirement, stock trading is something that is attracting more people. While keeping in mind stock trading is a gamble, knowing what you are doing, and educating yourself is crucial. There are many types of stocks to purchase and because the stock market is complicated, knowledge is important. There are many sites available and finding someone you can trust can be a crapshoot.

Extended hours stock trading is another type of trading. Once only available for high profile players, extended hours stock trading is becoming popular to a wider range of investors. The regular hours for a traditional buyers and sellers were 9:30 am until 4:30 pm; however, the advent of extended hours has changed the way we buy and sell stocks. ECN’S have made it possible for anyone with a computer to trade stocks after hours. ECN is an acronym for “electronic communications network” and any company you work with must have this or have access to this service. It is important to know that some ECN’S have limits and the rules are different from traditional stock trading. You may also not be able to see quotes on other networks. These transactions may also be available only in the extended hours and may not transfer to regular hours. This may not be in every case and is something you should discuss with your broker. Stock trading is a risk, but one that can do well for your future investments.

Prepaid Debit Cards Are Great For College Students

Have you received that telephone call yet from your college student who is four hours away, “Mom and Dad, can you send me some money?” It’s inevitable. One way to make sure that your child has money, but has a limit on the money you provide to them, is by getting prepaid debit cards for them. Generally these cards will be a MasterCard or Visa and issued by a particular company, such as the Green Dot card. With checks, your child has to find a bank that will cash the check. With credit cards, you run the risk of your child overspending. But with prepaid debit cards, you control the amount of money preloaded onto the card.

You can buy prepaid debit cards at thousands of retail stores like Walgreens, CVS, RadioShack and Wal-Mart. Unlike the usual debit cards that are linked to a bank account, these cards are preloaded with a specific amount of money. Each time your college student swipes the card, it deducts from the balance.

Prepaid debit cards like the ones you buy in retail stores aren’t reloadable, but you can get personalized cards with your child’s name on it, like the Green Dot card, and you can reload it in any denominations at any intervals that you desire. They are a great way to provide your college student with some spending cash without breaking the bank. It also is a way to teach them responsibility and budgeting if you tell them that you’re only going to load $50 onto the card each month and they have to make it last the whole month.

Information on Cards for Bad Credit

When you have bad credit a lot of things in your life can get a little complicated. It will be much harder to be approved for a loan on a house which can be disappointing to someone who is trying to start a family. It will definitely be much harder to find credit card companies that will give you good deals as they see you as a very large risk. You will also find it a little bit difficult to get a new car because of your bad credit.

Don’t be too concerned – although undesirable there are plenty of options to get cards for bad credit. Your rates will be a little bit higher because the companies need insurance that, over the course of all the people that they give these types of cards to, they will make a profit. This is because a lot of people will declare bankruptcy and get out of what they owe. An unsecured credit card can be good for people looking to improve their credit.

So if you happen to find yourself in the market for a poor credit credit card then you should take a look around the internet. You will generally find better rates when you compare the different companies online than when you contact a particular company. With multiple offers to compare you know you are finding the best deal possible for your particular situation.

Common credit card traps you should avoid

Credit cards have become an essential part of day to day life. When used wisely it can give you many benefits and the misuse of it can lead you to credit card debt. Credit card companies make profits from the interest they earn when you are unable to pay your monthly balance. There are many traps used by t companies to lure you in to parting with your money.

Minimum charge

You will be required to pay a minimum amount every month, you will pay only that and you will be charged interest up to 25% on the balance amount due. Always pay the full amount due.

Tempting deals

Cardholders will be lured in to spending more than they could afford by offering by very tempting deals. The more you spend the more likely you will end up with credit card debt for which you will pay a high interest.

Privilege membership offers and upgrades to gold or platinum cards

The membership will have an annual fee and the upgraded card will have a higher annual subscription fee for benefits you may never use.

Cash withdrawal from ATM

An interest free period does not apply to cash withdrawals and charges very high interest.

Stipulations of Auto Loans for Bad Credit

Almost everyone has done it, and usually by accident. Forgetting to pay a bill here and there seems like not a huge deal but, unfortunately, one bill can stay on your credit for a longtime. The worst part is that companies charge hefty fees to even find out what your credit is and often it’s too late to even think about fixing it. Let’s be honest though – most people in this day and age who have bad credit have it because of a lot more than just one bill that wasn’t paid. Fortunately there are companies that offer bad credit car loans to help you get started – they simply come with certain stipulations.

There are so many companies that offer auto loans for bad credit but the question is – what’s the fine print? More often then not these companies are going to force you to put some type of collateral on your loan. Essentially this means that if you do not pay in time you will be forced to give up something valuable to make up for it. They will almost certainly have very bad interest rates as well which can really hurt you if you get behind on your payments.

These same companies offer a poor credit credit card with similar stipulations as the auto loans. Although collateral is much less likely they will almost certainly have terrible interest rates which will leave you in considerable debt if you do not pay them.

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