A Roth IRA is a popular way to save for retirement. It acts like a savings account, but generates a much higher profit and is designed to compound and grow for many years until the owner reaches retirement age. The profit that is earned is reinvested in the Roth IRA account until it matures to a set date (when the person wants to retire).

Money contributed to a Roth IRA is done on an after-tax basis. This means that you won’t have to pay taxes on the earnings when you want to withdraw from the account. In comparison, a 401(k) retirement account receives contributions before taxes are paid, so you have to pay taxes on them when you withdraw funds.

Roth IRAs also offer more flexibility than a 401k because you can withdraw the funds without the huge penalties before retirement (if you meet their criteria), where as withdrawals from a 401k before retirement results in high penalties and income tax implications.

Roth IRAs do not require that you begin withdrawing your money by a certain age. You are able to keep contributing to it for as long as you want to. Even if you have no intention of ever withdrawing the money, your beneficiaries will inherit it with no penalties attached to the money. They are able to keep the Roth IRA to let it keep collecting interest, or withdraw the funds – tax free.

There are some restrictions on Roth IRAs though. If you are single and make more than $110,000 per year, or if you are married and file taxes jointly, and earn more than $160,000 per year (or more), you’re not able to contribute to a Roth IRA. This doesn’t mean you can’t save for retirement, there are many other options available for you to set up a retirement fund too, just not with a Roth IRA. On the other end, if you only make $3,000 per year, you are only able to contribute (at most) $3,000 per year to a Roth IRA. For everyone else, you are able to contribute a set amount (determined by age) annually.

Depending on your financial situation, a Roth IRA may be a great single, or additional retirement plan for your future. It is always best to get started saving money for retirement right away, and with compounding interest it will only help you save more if you start sooner. If you work at a place that matches or gives a percent on a 401(k) plan, it is always advised to do that too, who doesn’t like free money from their employer?

If you have lost your job or are looking for a change, don’t forget about the 401k account you have with your current employer. You are still entitled to take the funds with you when you leave a job but you need to manage the account the right way to get the maximum gain.

Many people make the mistake of taking the money out of the account. They end up paying much in penalties for early withdrawal and deplete their own accounts for retirement unnecessarily because they don’t know what else to do. So what should you do with the money you’ve been stocking away?

Rolling Over Your 401k
In order to keep the money you have in your retirement account, you can opt to rollover the funds into another account without having to pay taxes or penalties on the amount. You can choose from a number of options for rolling over your 401k account including your new employer’s 401k plan, IRAs, Roth IRAs, and Mutual Funds.

How to Rollover the Funds

Contact Old Provider
Check with your old 401k provider for eligibility rules. You’ll want to make sure there are no fees or requirements involved with rolling over your funds into a new account. You also need to make sure that your status is listed as a terminated employee because funds can not be released unless you are terminated. Sometimes an employer will fail to update the provider so knowing upfront that all is in order will help make the rollover process smoother.
 
Contact New Provider
You’ll need to contact the new provider of the account to find out the protocol for rolling over your money. Even if you are not rolling your money into another employee-sponsored account, there will still be paperwork to submit so you’ll need to know the rules of the new provider. Ask for the information you will need to give to your old provider to initiate the transfer of funds.

Fill Out the Forms
Your 401k provider should send you the paperwork necessary. Once you receive the documents fill them out completely and return them to your provider. Some providers will only require documentation from the new provider and you won’t have to do anything. You will also need to submit paperwork to the new provider. The key to a successful rollover is to fill out forms completely the first time to prevent delays. Provide accurate information about where the money is to be transferred.

Make Sure You Follow Up
Follow up by phone to find out the status of the transfer if you have not received correspondence from the provider within a few weeks. Never assume the money was transferred as scheduled. It is smart to confirm the funds are where they are supposed to be. It can be easy to forget about money that you virtually never see so check with the new provider to verify the money transfer has been completed.

If you have been struggling to keep up with your debt repayments and are considering a debt settlement to improve your financial situation, you should understand the potential affects to your FICO credit score.

What is a Debt Settlement?

A debt settlement allows you to pay less than the total amount owed on an account. This will help you get out of debt faster and make it possible to keep up with your living expenses. Typically with a debt settlement, if a creditor agrees to ‘settle’ and accept less than owed, you need to have the amount ready to send in a lump sum. Once the amount is sent, the account should then be closed and no further action can be taken from the creditor to collect the remaining amount of the debt.

What About Your Credit Score?

If you’re considering a debt settlement, chances are good that you’ve already experienced a drop in your credit score. Only people who are having extreme difficulty keeping up with their payments and living expenses should even consider a debt settlement. While it’s better than filing for bankruptcy, a debt settlement will be reported to the credit bureaus, show up on your credit report as a negative notation, and will cause your credit score to drop considerably – by as much as 125 points.

Debt settlements remain on your credit report for 7 years after the original delinquency date of the debt. You will have trouble obtaining credit while this remains on your report.

On the plus side, however, if a settlement makes it possible for you to begin paying your other debts and expenses on time, every time, where as you couldn’t before the settlement, you can quickly begin increasing your credit score by making on time payments on the remaining debts you still have after the settlement.

Debt Settlement and Income Taxes

What many people don’t realize is that debt settlements may also affect your income taxes. When you file your income taxes after a debt settlement, you are required to pay income tax on the difference between what you owed and what you actually paid as “income”, with a few exceptions to the rule. If you owed $16,000 but settled the debt for $8,000 – at income tax time you have to report the other $8,000 as income and pay taxes on that amount unless you meet criteria for the exceptions. This is something you will want to look into before agreeing to settle your debts.

If you’ve discovered you no longer qualify for traditional credit cards due to a low credit score, there are some other credit card options you might want to consider to start rebuilding your credit:

Prepaid Credit Option

Some companies issue prepaid credit cards and report your payments to the credit bureaus. The prepaid nature of the cards makes it possible for people with poor or bad credit scores to qualify; and the fact that some will report to the credit bureaus means you have the opportunity to begin rebuilding your credit again.
Since you’ve prepaid, there are no interest charges on purchases and no billing statements to worry about. Most prepaid cards have fees, however. From an opening fee (around $10) to monthly maintenance fees (usually another $9.99 a month) to per-transaction fees and fees when you add money to your card – the prepaid cards can end up costing you a fortune.

If your goal is to rebuild credit, make sure you choose a prepaid card that reports to credit bureaus otherwise you’re paying a lot of fees for no benefit. A prepaid card with the Mastercard or Visa logo can come in handy if you need to rent a car or reserve a hotel or flight and you don’t have any other credit card options available to you.

Secured Credit Card Options

A secured credit card is a step up from the prepaid card. They almost always report your payments to the credit bureaus and can work in your favor to rebuilding your credit. Basically, you make a deposit to the issuing bank (around $500 usually). Your credit line will usually start out at the amount of your deposit, but with on time payments they will often increase your credit line.

Credit Union Credit Card Options

If your score is in the fair or better range, you might check with a local credit union before exploring other options. Credit unions are less likely to charge the high fees and penalties that traditional credit cards charge, have lower or no annual fees and longer grace periods for making payments. If you qualify for credit union membership, you should look into opening an account with them (savings or checking) and then consider them for your credit or loan needs, too.

You can find credit unions by visiting www.creditunion.coop or calling (800)358-5710.

When you live in and oversee a busy household, it can be chaotic in the best of times. With several people living in one space, there are probably 100 things each day that can be left on, left open, knocked over, or broken that costs money. For instance, in an average morning a family getting ready for work and school will likely waste water, burn unnecessary lights, let the heat escape through an open door, or let the cold air escape from the refrigerator. With everyone so busy, it is very easy to overlook some efficiency problems that cost extra money.

How To Fix The Problem
It is easy to say ‘slow down a little; but much harder for a family to accomplish the task. Here are some ideas to help conquer the wastefulness of a busy family.

Schedule a Family Meeting
It may be worth it to schedule a family sit-down were parents can voice their concerns and ask for better cooperation amongst the kids. Of course, parents are just as guilty of wasting energy and other things so it is important to get all family members on board with the idea of being more efficient. Everyone must cooperate to find success. Allow all family members the opportunity to consider ways they can help save on electricity bills, grocery bills, and other costs then create a concrete list of the ideas and ways to incorporate changes into the busy household.

Dole Out Responsibilities
Make each child responsible for energy-saving tasks. For instance, have one child ensure all lights are turned off when no one is in the room or as the family is leaving the house. Each family member can be assigned a task based on the efficiency ideas developed in the family meeting.

Make a Chart
Having a visible reminder of duties can certainly help keep people on task until the new habits become like second nature. List the efficiency tasks for each child for the week and then rotate jobs throughout the month so everyone gets experience in the new habits.

Really, Slow Down
If your house is always on the go and you find you spend more at the fast food joints then you do at the grocery store, it may be time to schedule some down time into your routine. Consider appointing one day as family time where everyone can catch up and catch their breath. Review the list of activities both kids and parents have each week and see if there is anything that can be cut out or modified.

Plan Early
Everything from meals to chores to other details of regular life can be molded into a plan. If everyone is on the same page and feeling not so rush, the family as a whole will be more aware of their surroundings and their part of an effective family. Without all the pressure since everything is laid out in advance, families can reduce the amount of waste they produce, the amount of bad decisions they have made, and the increased health risks of always being on the go.

The best debt advice is never to incur any debt.  However, we are surrounded by debts everywhere – mortgages, student loans, credit cards, utility bills. According to “Credit action” report average amount of debt owed by every UK adult is ~ £30,000 (including mortgages). In the current time of economic recession it becomes very difficult to manage debts.  Figures released by “Credit Action” are striking – 1, 900 people are made redundant every day in the UK.  Debt problems can have a significant impact on your life – financial difficulties are leading to constant stress, which on its own can cause various health problems such as severe depression, anxiety and migraines to name just few. Excessive stress can throw your private life (relationship with family and friends) into disorder. Debt problems can have a negative impact on your workplace performance and productivity as well.

If you have debt problems it is essential not to panic. But don`t ignore the problem – it won`t disappear either.  If you are struggling with debt it may seems impossible to manage.  However, we will offer simple guidelines, following which you should be able to get your life back on track.

• Work out your personal budget, analyzing where your money goes.
• Find out how you can cut out your expenditures. Be realistic.
• Sort out how big is your debt.
• Prioritize any urgent debts (such as utility bills and rent).
• Find out if you can pay your debts off, if so, how much.
• If you are unable to pay your debts off with your current income, find out if you can increase your income.( You may want to think about renting out a spare room in your house or applying for the benefits you`re entitled to)

If you worked out all possible options and are still unable to pay your debts off, you can get free and independent debt advice from organizations like Citizens Advice or National Debtline (the list of those and similar organizations is given in the end of the article).  You can get help either online, by telephone or face to face.  Trained advisors will discuss your circumstances with you and offer the best solution.

If your debt is between £3,000 and £15,000 you may want to consider Debt Management Plan (also known as DMP) – an agreement between you and your creditor to make monthly payment. It can be managed by yourself or by a third party (DMP `operator`) which can negotiate with your creditors on your behalf.  If you have surplus income (£200+ after essential living expenses) you will make one monthly payment, which then will be distributed between your creditors.  Most companies will charge for this service, but there are some organizations like National Debtline or Consumer Credit Counseling Service which will do it free of charge.

If you have a debt over £15, 000 you may want to consider Individual Voluntary Agreement.      This solution offers you an ability to pay off one portion of your debts and write off the debts you cannot afford to pay.  If you go for IVA your interest fees and debts will be frozen.

Options like Administration Orders, Informal Arrangements, Consolidating Debts are also available among others.  There are many ways of resolving debt problem and it is often confusing to choose between them. The best way is to use free and independent advice available to you through various organizations all over the UK.  Don`t neglect this opportunity and sort out your debt problems now.

The cost of a family outing is sometimes very expensive, especially for a family on a strict budget. Below are some suggestions for going out on the “cheap.”

Movies

Many cities and towns offer newly released movies at a discounted rate (less then half the price of a regular ticket) on certain days of the week. All that is required is that you sign up for a FREE movie card. In my city, there are several theaters that also offer a free popcorn along with the discounted movies on certain nights. My movie card keeps track of how many times I’ve visited the theater and I also receive other discounts – such as free drinks, free snacks and sometimes a free movie ticket. With the skyrocketing price of movies today, this really is a winner if you’re on a budget.

Meals

Pay attention to those coupon magazines and flyers you receive in the mail. Many times they offer big discounts on meals in your area. Restaurants often offer buy one/get one free coupons for lunch and dinner as well as a full breakfast for under $3.00 or $4.00. This could also be a great add-on to the discounted movie night with the family.

Bowling

After not having been to a bowling alley in a quite a while, I was surprised to see how much the price of this activity had gone up. However, I did discover that many alleys offer a free “birthday club” that you can sign your child up for and in some cases, even adults can participate in this. The alley will send you coupons for several free games of bowling during your birthday month. Many times coupons for bowling are also offered in those coupon magazines and flyers. You can also check out the bowling alley’s website, if they have one, for printable coupons that offer great discounts.

Nature Centers, Parks, Etc.

Nature centers offer children a free look at the way our wildlife lives. Children can often pet the smaller animals and feed them and free programs to learn about wildlife are offered. Our city’s parks seem to be expanding nowadays as well. Many of them provide a wide variety of things for children to play on and many parks have small “water areas” for the children to run through on hot days and full sized swimming pools. It might be an extra treat to follow that $3.00 breakfast with a trip to the park!

Cycdor, a company that offers outsourced sales teams to companies, has made a donation to Haiti Gospel Mission in Despinos, Haiti, which reminds us the importance of continuing to send aid to the country. Cycdor has sent twenty-five large boxes of items including first aid supplies, clothing and shoes.

Although the Haitian earthquake is several months behind us, there is still substantial long term need for the country of Haiti. Thousands upon thousands are homeless and the country’s infrastructure has been strained. Orphanages are now seeing double and triple their previous numbers. The gift from Cycdor reminds us that the country of Haiti will need charitable aid during the next several months and years.

“We were all humbled by the terrible tragedy in Haiti and wanted to help out in any way possible,” said Vera Quinn, senior vice president of operations of Cydcor. “We’re happy to be able to send items that will go to men, women, and children who lost everything in the earthquake.”

The company first learned about Haiti Gospel Mission (HGM) through the owner of the of the company’s sales offices. The owner of one of the offices does work through HGM and made the national organization aware of Cycdor about the needs of Haiti Gospel Mission. The company as a whole has made Haiti Gospel Mission as part of its community and plans to stay in touch with the organization so that future support and donations can be made.

Cycdor is a provider of face-to-face outsourced sales teams which offer services in a range of industries including telecommunications, office products, retail energy, and financial services. The company works with a network of independently owned sales offices with clients that have access to more than 2,700 sales professionals.

Free savings accounts do still exist.  A free savings account should be a standard feature offered by your financial institution.  A savings account is a specific account that is maintained by a bank or other financial institution. It is set up for the purpose of saving money not spending it.  Savings accounts also entitle the owner of the account to earn interest from this account.  The amount of interest earned is based on the amount that is in the account.  A savings account is different than a checking account in that the money in the savings account is not to be used for routine spending such as that of a checking account.  A savings account is set up to encourage the account holder to save and earn interest based on those savings.

The good news is that most financial institutions, especially traditional banks, offer free savings accounts.  Beware that even though they are advertised as free,  there are usually some stipulations or potential fees that go along with an account; even a free one.  There may be fees associated with the account down the line if you fail to adhere to the rules and regulations that govern the account.

Typically opening up a savings account at any financial institution requires a certain minimum amount to open the account.  Even though the account itself may be free, charges may apply if you do not maintain a certain amount in your account. To open up a savings account and make the minimum deposit requires little more than signing on the dotted line and making your first deposit.

The following points can offer some guidance to finding and locating the best free savings account.

• If you currently have a bank or credit union that you do business with, the best option is to start there.  Many times the relationship you have with an existing financial institution allows you some perks and benefits that are not often offered to the general public.

• Talk with your lender about what you are looking for from your savings account.  You want to get the best return from your money.

• If you are starting from scratch to locate a free savings account, start by calling around to banks or look online to shop for free savings accounts.  Once you have located two or three options, start making calls to talk with the lender about what these accounts entail and what you may need from a savings account.

• Ask if there are fees and costs associated with opening and maintaining the savings account.  Be sure to ask about any hidden or less than obvious rules or stipulations to maintain this account.

• Research and compare the interest rates, amount of investment necessary to avoid the opening fee and the penalties associated with withdrawing funds from the savings account.

• Identify the best account for yourself and arrange to save the amount of money necessary for the initial deposit.  When you are searching for a free savings account, ensure that you read the fine print to avoid unnecessary costs that may be incurred down the line.  Speaking with a representative is the best way to ensure that you are getting the best account for your needs.  Saving for a home is different than saving for a vacation.  You want to ensure that you are getting the best return rates for an account that meets your specific needs.

With the average consumer showing a renewed interest in growing their savings in a low risk environment, high yield savings accounts are becoming more popular. High yield savings accounts, also referred to as high interest savings accounts are a great option for savers who want the opportunity for growth but lack a higher risk tolerance. High yield savings accounts also address liquidity issues that are present with other savings vehicles such as a certificate of deposit. If this type of savings account meets your savings goals you are in luck. There are literally hundreds of accounts across the nation offering a wide variety of benefits as well as varying savings rates. While having so many options to choose from promotes a more competitive environment for the banks offering high yield savings accounts, this can also work against the average consumer looking for the best account to reach their financial goals. Here we offer basic tips on how to find the best high yield savings account to meet your needs.

• Find the best rate- Obviously one of the first things you will look for is the best interest rate available. Fortunately this can be done with relative ease using the Internet. There are many websites that do the work for you, narrowing down the list of potential accounts by comparing rates and other benefits, eliminating much of the leg work needed to find the best account. Remember that interest rates do change, therefore it is important to base your decision on other factors besides the interest rate alone.
• Online versus brick and mortar- There are benefits and drawbacks to each type of banking. With online banking you often find better (higher) interest rates due to the fact that online banks do not have the same overhead as brick and mortar banks. Conversely online banks do not always offer the same range of services and convenience that you might find at a local branch. Which account is best for you depends largely on your own unique banking needs.
• Security- Your savings are not automatically safe simply because they are in a bank. Do your research first to ensure your account is FDIC insured and the bank with which you are dealing is reputable and trustworthy.

High yield savings accounts are a great way to save money with a decent interest rate that allows for some grow opportunity while giving the account holder access to their cash without fear of fees or penalties. Any effort made to increase savings will improve both your short and long term financial health.