Financial Planning

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Election 2008: the day after

Wednesday, November 5th, 2008

The day after Election 2008: So now what?
That’s what a lot of people are asking themselves this morning, now that the uncertainties of the election is out of the way, Obama is the Preseident Elect, and the Obama’s and Bush’s transition teams are working together to assure a smooth transition, and the Obama-Biden team are recruiting additional team members to lead and manage this wonderful country.
What about you and your situation? You surely cannot ask for help directly to either G.W. Bush, or to Barack Obama. They actually need your help, they need your help keeping the morale up, trust the political and financial institutions that once again prosperity will return to the US soil. If there something that most people have learned is that things are back to basic, wise use of credit, well thought out plans for important decisions like buying a home, a car, or a major appliance; carefully screening of financial advisors and more realistic investment strategies and expected returns.

If you have consumer debt: have a plan to pay it off as soon as possible.
If you have a house with a mortgage: have a plan to pay the mortgage off, sooner or later. If you need to refinance, do so, a home is a long term asset, and a necessary one if you can afford it. Make a plan to eventually pay off the mortgage.
If your financial situation is challenged, take matters into your own hands with a two-prong strategy:

Cut your expenses.
Increase your revenue: get a second job if you have to, or a third one. Clean up your attic and basement and sell all the stuff that you have and no longer use. If you don’t have time, and if eBay or Craigslist is not for you, consider donating your items to charity, and take the tax write off. Consult your tax advisor on that, and remember to get a receipt from the charity for your non-cash donation.

Start or continue saving: no matter how little you think you make, someone else down the street makes do with less than you have: simplify your life, eliminate expenses, cut down on your spending. There’s no alchemy math: living within your means is the new luxury.
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Why is the Stock Market and the US Economy in this state? Whose explanation can we trust?

Thursday, October 16th, 2008

We are receiving a good deal of inquiries asking us to cover the happenings in the Stock Markets and the economy at large. It’s not easy to address those questions, and in reality, nobody really knows. The “experts” are divided on what caused these events, and what measures should be taken to correct these events in the short term, and how to set up the course for the long term.

Something that we look at when reading press releases or listening to interviews, is “Do these people have a conflict of interest in what they are saying?”. And most time the answer is YES.

When it comes to the stock market, one of the major components of a healthy market is “confidence”, and everyone agrees that the average investor’s confidence is at a low point. Wall Street insiders have a self interest in saying that everything is fine, and people should remain invested and buy buy buy some more stocks, bonds, ETF, Mutual Funds, and any and all financial instruments.
There are a handful of people that we like to listen to, one of then is George Soros (see: Financial crisis: how to make sense of how we got here, and what’s ahead? ), another one is Carl Icahn, the 46th richest man in the world with a net worth of $14 billion (source: Forbes.com), and he got so rich by buying and selling companies that were undervalued or underperforming and turning them around: he knows his stuff.

He is starting to appear in the financial circles, so you can catch him on CNBC and other channels, and you can also read his very insightful blog: The Icahn Report.
If you can get a hold on his interview on CNBC with Larry Kudlow on October 15 (yesterday), watch it and take note.
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Are you ready for life’s challenges? PaymentAid Plus by Citibank might be for you.

Monday, August 18th, 2008

Financial Planning: love it, hate it? It’s a necessity, and it is a way for you to stay in the driver’s seat and be in control no matter what life will deal you in the future.

Citi has put together an interesting package, the PaymentAid Plus that gives people financial relief during tough times in life.

Death, Disability and Income Loss Benefits
When faced with some of life’s biggest challenges, the last thing you and your family should have to worry about is your credit card account. PaymentAid Plus gives you help when you need it most.

In the event of a job loss or short-term disability
Your account will be credited your minimum monthly payment (excluding past due amounts, over credit limit or credit line amounts and fees) for up to 12 months.
Note: You may continue charging purchases, but not cash advances, on your account while these benefits are activated.
In the event of long-term disability or death
Citi will cancel up to $10,000 of your New Balance.

Life and Family Benefits
Changes at home or in your health can have a big impact on your financial situation. PaymentAid Plus can help you with your expenses so you can focus on what’s important.

If you get married or divorced, buy a home, move, welcome a child into your family or enter college for the first time
Citi will credit 1 minimum monthly payment to your account (excluding past due amounts, over credit limit or credit line amounts and fees) once a calendar year.
If you’re a victim of a national disaster
Citi will credit 6 minimum monthly payments to your account (excluding past due amounts, over credit limit or credit line amounts and fees).
If you need to take leave to care for an ill family member
Citi will credit up to 9 minimum monthly payments to your account (excluding past due amounts, over credit limit or credit line amounts and fees).
Receive up to a $500 credit
For a deductible paid on Auto, Homeowners or Renters insurance per calendar year.

What’s more, PaymentAid Plus helps support you in your time of need:

Citi will credit 1 monthly minimum payment (excluding past due amounts, over credit limit or credit line amounts and fees) if you or any member of your household spends at least one night in a hospital.
Citi will credit 1 monthly minimum payment (excluding past due amounts, over credit limit or credit line amounts and fees) if you or any member of your household receive medical treatment in the Emergency Room of a hospital.

Payment Credit Benefit
PaymentAid Plus also provides valuable extra benefits for you to use as needed.
Once a year, if you incur expenses of at least $25 (for education, medical, household, transportation or IRS taxes), PaymentAid Plus will allow you to credit one minimum monthly payment. Or, you can request a credit of one minimum monthly payment for one of three federal holidays-New Year’s Day, Memorial Day or Labor Day (The account credit does not include past due amounts, over credit limit or credit line amounts and fees).

Your membership also includes these valuable Add-on benefits:

Personal/Professional Resources through LifeWorks®
Starting a new career? Trying to get on track financially? LifeWorks can help.
You spend every day trying to make time for the things that are important to you—your work, your family, your personal life. With so much to balance, let LifeWorks help. Just call or go online to obtain the advice of trained consultants on a wide range of relevant issues, including:

Budgeting and money management
Planning for retirement
Estate planning
Furthering your education
Parenting and child care
Setting up a will or living will
Updating your work skills/computer skills
Getting assistance for older family members

Daily Credit Monitoring at the 3 National Credit Repositories & More
Identity theft can destroy the credit history you’ve spent years building.
It can happen when new accounts are opened in your name or your existing credit accounts are somehow taken over. Cases of identity theft can take months, sometimes years, to resolve. You can help protect yourself from identity theft through the daily monitoring of your credit files.

With PaymentAid Plus you have the automatic benefit of:

Daily Monitoring of your credit files at the 3 national credit repositories
E-mail Alerts to notify you of certain changes to your credit bureau files (So, be sure to provide your email address when you enroll)
Dispute Resolution Assistance should you find changes to your credit files that you do not recognize.