6 money dilemmas

If you sometimes have the feeling, you’re just « running the numbers » and that you wonder why, this can be an interesting article. It shows six common financial quandaries and the math is already done. The right answer may depend on things that you can never know for sure and at times, emotional considerations may tip the balance.

Pay off a credit card OR fund your 401(k)

You really should do both, but if that isn’t possible, pay off the plastic first. Good saving habits are also important. The bottom line is that if you have a big credit-card balance, you should wipe it out before you open a 401(k).

Save in a Roth 401(k) OR a regular 401(k)

With the arrival of the Roth 401(k), you may have a second chance at a tax-free income. Our advice: grab it. Unless you’re on the verge of retiring and know your income will drop, the Roth wins.

Lease a car OR buy a car

Buying a car costs less if you own your car till it drops, buying is the cheapest on the long term. But with leasing, you can always drive a shiny new car and your monthly payments are lower.

Prepay your mortgage OR invest

The feel-good choice isn’t necessarily the smart choice. By preparing your mortgage, you are reducing your liquid assets and if you can always pay off your mortgage later with the money you invest now.

Buy a home OR rent a house

Buying is the best as long as you’re confident you’ll be staying put for several years.

Take Social Security early OR late

If your healthy and don’t need the money, it’s best that you wait.

I think it’s an interesting article, certainly for people who haven’t seen this at school. There are so many questions to which people don’t have an answer to. This could really help them out, even though you should consider the answers by considering your own lifestyle.

Laura

Source: http://money.cnn.com/2007/12/11/pf/right_call.moneymag/index.htm?postversion=2007121111

CREDIT CRISIS SHOWS AN IMPACT ON HABITS OF PAYMENT

An investigation of credit insurer ‘Atradius’ shows a first impact of the international credit crisis on the habits of payment of European and Belgian traders. 1200 companies are sounded out about the habits of payment of their business relations in Belgium, Germany, France, Italy, the Netherlands and the United Kingdom. Belgian companies pay their foreign outstanding accounts after an average of 35 days. That’s six days faster then the premising terms of payment. To their Belgian suppliers is the average 41 days, that’s ten days faster than last year. The investigation shows that traders search for alternative and cheaper manners of financing. One of them is the decrease of terms of payment for customers. Belgium and France are the only countries who undertake more steps this year to protect themselves against risks of payment.

Companies have to perform these manners if they want to see their money in the future. If you give customers a lot of time to pay off your bill, they will be inclined to pay first other debts and maybe afterwards there is nothing or less left for you. It’s a nowadays problem that people can start too many credits even if they have the financial possibilities to pay them back.

Jan

http://www.standaard.be/Artikel/Detail.aspx?artikelId=DMF06122007_016&kanaalid=3

Know your home's future

Whether you're thinking of moving to a new city or are you just curious about your own neighbourhood, the Web let you see your town like you've never seen it before.

scoop out the houses: if you choose a town, you can see with satellite view a streetmap of the place. But you also can ask for the "Heat map", there you can see which places are most wanted and popular are, based on prices and sales. You also can ask questions about the area or read discussoins of it. There is also a website where you find the value and prices of your neighbour's houses. And ofcourse there are also internetsites where you can search for available and nearby shops.

check out the schools:there are sites where you can find the public schools testresults and information about private schools. Both sites have a parents review, so you can always follow the discussions.

meet the neighbours:through surfing on the wordwildweb you get a lot to know about your neighbours, you can read their blogs or find forums and discussions. There is also a website to get to know each other, so new habitants can meet and learn each other

It scares me a lot that you can find so much about other people and their way of life, just by typing some words on the internet. It's true that a lot of people put information themselves on he internet, but schoolresults and value of houses, must be something private. Not everybody wants that such a things are known.

Els

source:http://money.cnn.com/2007/11/29/pf/bestweb_home.moneymag/index.htm?postversion=2007120806

Makeover tips that can sell your home

People are going through the home like detectives. If the home doesn't flow, even if it doesn't smell right, they'll pass.

Here's what you should look for to avoid a home makeover misstep:

Pre-'60s homes:
Vintage homes do not have the ability to power modern appliances, upgrade the power.
Plumbing is your second priority.
Homes built before the 1960s often have hardwood floors. They are a hot commodity today.

'60s homes:
Single-pane windows are dated, upgrade those.
Change your kitchen by replacing cabinet hardware with stainless steel.
If you have termites, treat this annually.

'70s homes:
You can lose the time warp easily with a fresh coat of paint.
Sometimes the siding and brick can be painted to give the home a modern look

'80s homes:
If you want to replace your kitchen counters, look around your neighbourhood. If everyone has granite, then you're going to have granite, too.
Wallpaper is another '80s trend that may date your home. Pull it all off.

'90s homes:
home appliances wear out when they are 12 years old. items that may need replacement include the water heater, the stove/oven, the washer/dryer, the refrigerator and the dishwasher.
Don't hurry into a new roof. Have it inspected.
A clean carpet always says "welcome home" to prospective buyers.

I think it is good to make your house look better, because this way you might sell it at a higher price. But most people don’t know what they should replace or repaint, so they could use some tips from the article.

Kathleen

Source: http://finance.yahoo.com/real-estate/article/103990/Makeover-Tips-That-Can-Sell-Your-Home

THE PURCHASING POWER OF THE BELGIANS DROPS AGAIN FURTHER OFF

Belgium drops further off on the European classification concerning purchasing power. That shows an annual study that reckons with the local costs of living and the level of the social cash benefits. The available net income per person for this year has an average of 17.143 euro.
Belgium knows a little bit of a slump concerning the purchasing power because with this average we finish on the twelfth place on a total of forty European countries. In comparison with two years ago we have lost four places. Switzerland and Liechtenstein, Luxembourg and Norway represent the European top three. Their average amount is about 10.000 euro higher than ours.
The inhabitants of the central -and east-European countries have less purchasing power than the Belgians. Especially these countries dangle at the bottom of this list. Although emphasized the study that some regions in central –and east-Europe do it better than in the west. There are big regional ranges within western countries as well.

According to the study is the Belgian inhabitant not able to buy as much goods and services with an amount of money in comparison with other European countries. It’s still good to life in Belgium if we can keep up with the top fifteen in Europe. I think the high cost for the social system that other countries perhaps not have, has a big part to do with it.

Jan

http://www.standaard.be/Artikel/Detail.aspx?artikelId=MS1K3T0A&kanaalid=3

Divorce is negative for woman’s income

Men become financial better than women after a divorce. It appears after an inquiry from the University of Antwerp. It says that women lose almost 142 euro per month from their income and that the revenue of the men increases with 100 euro per month. It takes at least 5 years for the women to reestablish her income again. The reason for all that, we can find in their work- and family situation. Married women, with children mostly work part time. They also get often the custody after the divorce and that makes it harder to find more flexible work. This inquiry stirs up again the discussion on the new law, there they think that women get financial better out a divorce than men. What apparently isn’t!

A divorce is always a painful thing, but the financial side can be even tougher. I think it’s very important that these ex-lovers can’t bankrupt each other and have a normal life after their relationship. But if this inquiry shows that women are discriminated on that part, then the law certainly must be revised.

Els

Source: http://www.standaard.be/Artikel/Detail.aspx?artikelId=B20615741071129&kanaalid=3#

Person-to-person lending online gathers steam

Services match up borrowers with lenders, avoiding traditional banks.

Social lending has been around since the days when needy families turned to the richest man in town, but the Web is breathing new life into the practice. Loans on Prosper and Facebook’s LendingClub is rising. By 2010, the report forecasts $1 billion in peer-to-peer loan originations.

The idea behind the sites is that borrowers can find better rates than traditional banks offer, while lenders can earn higher returns than investment. Borrowers on Prosper post how much money they need, the purpose of the loan and what interest rate they can afford. Lenders bid on the loans of their choice, typically funding only partial amounts and diversifying their risk among hundreds of loans.

The opportunities for social connection appeal to users and lenders enjoy the satisfaction of seeing their money help someone in need. Each Prosper borrower is assigned a grade based on their credit score to help lenders evaluate their risk and the site verifies borrowers’ identities. Prosper reports late payments to credit bureaus, you have to keep up with these payments just as you would with any other financial obligation.

It are the borrowers who are crucial to the future success of peer-to-peer lending. As soon as you put $10,000 out there to 10 people and six do not pay you back, would you want to do it again?

I think this is very good for both lenders and borrowers and you can diversify your risk by funding little amounts to several different people.

Kathleen

Source : http://www.msnbc.msn.com/id/21993720/

Single? You need a plan of your own

The system just isn’t set up for households that consist of just one person. That means planning is even more important of you. The amount of singles has importantly increased in the last few years. Reasons are divorce and people are marrying later or aren’t marrying at all. Just as married couples, the older a single gets, the more assets he or she accumulates. And because they can’t rely on another for financial help in crisis, it’s even more important for them to put a plan in place.

Stash more cash:
Step one is to put a six to twelfth-month emergency cushion in place.
Get the right insurance:
↳ disability policy? Absolutely. Long-term-care Insurance? Maybe. Life insurance? That depends.
Singles have to protect their earning ability. They can do that with disability insurance.
Put the right documents, and people, in place:
As soon as you’ve accumulated assets that you want to end up in a particular place, get a will and a living trust. And even more important, you have to give someone power of attorney to make medical or financial decisions on your behalf.
Don’t forget the tax man.

I think it’s important for such an article to exist, nowadays they are a lot of single people and that number will increase even more. If you’re single you have to protect yourself a lot better against dangers and risks. Because you can’t rely on someone else. So I think it’s an interesting article, because it tells you what you have to consider if you’re single and you don’t want to face surprises.

Laura

Source: http://money.cnn.com/magazines/moneymag/moneymag_archive/2007/12/01/101187977/index.htm?postversion=2007112710

PODCAST 2

http://rapidshare.com/files/71506290/podcast_2.wav.html

Els, Laura, Kathleen & Jan

EIGHT LEADING BANKS INVEST UNETHICAL

“Netwerk Vlaanderen” has brought information together in a sizeable file: “Bank secrets. Eight banks and their alarming investments”. It’s denouncing the investments by Axa, ING, Fortis, ABN Amro, Citigroup, Dexia, KBC and Deutsche Bank. With that would “Netwerk Vlaanderen” bring up the failure of transparency and social responsibility of banks.
There goes money from these banks to AviChina, that sells military material to Myanmar and Sudan, although has the European Union raised a weapon release against these countries.
According to the Christian union of employees (LBC) should the financial organizations reckon with important environmental- and human rights standards in their investment decisions and they aim at an ethical lower limit. That’s why the union invites all his militants to start a discussion within the social consultation in the sector. Belgium has given the example to prevent investments in controversial weapons. Nowadays we could become the pioneers in excluding intolerable practices on the field of environment and human rights.

Companies, banks, the government,… has to keep ethical investments always in mind because it became an important item that has been forced by the community. I think that banks can’t exclude unethical investments because they earn a lot of money with them.

Jan

http://www.standaard.be/Artikel/Detail.aspx?artikelId=DMF13112007_040&kanaalid=3

Belgian Children receive 190 euros for their toys.

Last year parents have spent about 190 euros on toys for their children. If we calculate also the videogames, than it would be 302 euros. The import didn’t grow, but because the prices are stable, can we say that there is more sold. With those marks, the Belgian market scores better than the average in the 15 countries of Europe. It represents 2,4% of the Belgian market. Videogames are very wanted; almost 37% of the budget went to those games. But who decides on what the money is given? The OIVO inquired many people and what can we say? Almost 70% of the children decides themselves which toys they want to have. Until the age of twelve, toys are the most important, but when they become fourteen, almost 90% will choose videogames.

I can’t say that this article shocked me, not at all in fact. If you see how children are getting spoiled and how expensive toys have become, I think it is a normal evolution. Not that I think that it is a good evolution. There is a lot of social pressure and parents often want that their children get the best, although they should need the money for other things. Producers are also very clever. They produce expensive toys or games, but they make also a lot of extra, expensive things for it. Like for example the play station it’s very expensive, but you have to buy all the games separately, and you pay for those also a large amount of money.

Els

source: http://www.demorgen.be/dm/nl/997/Ombudsman/article/detail/52769/2007/11/15/Belgische-kinderen-krijgen-voor-190-euro-speelgoed.dhtml

Young doctors in debt

Chris and Meg Reis are on their way to long medical careers. Now it’s time to deal with $500 000 in student loans.

The lives for medical residents aren’t easy: med school graduates getting years of on-the-job training, putting in brutal hours for salaries that, on an hourly basis, work out to a little more than they could earn stocking the shelves at Costco. But it will pay off, they say, once they become full-fledged doctors, they’ll have six-figure incomes, more reasonable hours, a respected occupation and work that they love.
But for this generation of doctors, financial security won’t come guaranteed with their medical licenses.

The couple’s work is rewarding, but not in the monetary sense. While they don’t have to make student-loan repayments yet, their low salaries qualify them for hardship deferrals the interest keeps accumulating, and the amount they owe keeps growing at the rate of about $17 000 a year!

The advice:
° ignore the usual advice
° get protected (insurance)
° deal with debt
° keep plugging away

In my opinion there is a serious problem in the US, student loans shouldn’t be as high as they’re at the moment. And it’s true that when people hear that you’re a doctor, they immediately associate it with high salaries and luxury lifestyle, but they seem to forget the accumulated debt and the hard work you put in it. The government should do something so that student don’t be discouraged to follow medicine in university.

Laura

Source: http://money.cnn.com/2007/11/16/pf/young_doctors.moneymag/index.htm?postversion=2007111611

Kicking the fund-trading habit

If you are not getting good results, and you are not even having fun, active investing is not for you.

There are people who spent five hours a week researching and tracking mutual funds, without any results.
You would certainly think that working hard and smart to pick the best mutual funds should result in better performance. But it rarely works out that way. That is because nearly all the research you can do is backward looking.

With thousands of mutual funds, the ones that have performed well over a short period, will show up at the top of your charts. But their good performance can usually be chalked up to luck. By the time you send the hot fund your money, you are set up for a few years of bad times.

A lot of people who research and track these funds, also buy and sell frequently. That triggers tax implications and opens you up to a whole lot of human error. Plus, actively managed funds charge far more in annual expenses. Those can really eat into the returns you get. So it really is much more effective to invest in the entire U.S. and international stock market using a handful of index funds. You can then forget about your portfolio, other than maybe rebalancing once a year. You save in expenses and taxes - not to mention what you save in stress.

I think lots of people can learn something of this article. It is not because you manage your portfolio actively, that you will earn more.

Kathleen

Source : http://money.cnn.com/2007/11/15/pf/funds/ask_the_mole.moneymag/index.htm?postversion=2007111513

A MOTORBIKE AS COMPANY VEHICLE

The company vehicles haven’t escaped to some unpleasant financial measures. The employer has to base his fiscal deduction on the CO2 discharge of the car. Earlier the costs of a company car could be reduced to 75 per cent, nowadays the per cent will be reduced progressive in proportion to the CO2 discharge. For environmentally friendly cars the deduction will be raised to 80 or 90 per cent. The measure becomes generalized to the complete fleet of cars in April 2008. Further on explains the article why we have to consider a company motorbike instead of a car.

If a motorbike is leased by an employer then count the next fiscal rules/advantages:
The employer receives monthly a leasing bill that’s fiscal deductible for 100 per cent. The paid V.A.T. is also 100 per cent deductible at his V.A.T. notification. Next to this he hasn’t to pay a CO2 tax.

An employee will be taxed on benefits in kind. Two factors are important for the calculation of the benefit:
Kilometers home to work travel: The advantage will be calculated on flat rate kilometers of 5000 a year when your home 25 or less kilometers from work is. Above 25 kilometers the flat rate kilometers will be 7500 a year.
Fiscal hp: The fiscal hp will be linked to a flat rate kilometer rate. If we keep that in mind is the taxable advantage of a motorbike smaller in comparison with a company car, because the fiscal hp of a motorbike is generally lower.

A motorbike as company vehicle is useful because of the fiscal advantages. It’s not recommended to use a motorbike as a private vehicle: the weather isn’t always good, not safe for children, high chance on injuries or death,…
A motorbike as company vehicle is debatable. The fiscal advantages can’t compensate to the disadvantages.

Jan

http://www.cash.be/articles/index.jsp?articleID=111401&sectionID=981&siteID=73

Text message charges soar

It is the communication method of choice these days, but texting can totally add up.

Although teenagers have been driving the trend, nearly everyone is texting.
But that convenience comes at a price. If you do not shell out for a texting package, which can cost $3 to $20 a month depending on the provider and the plan, most carriers will charge you for each message whether sent or received.
And the price per text is on the rise. Earlier this year, some providers raised their rates to 15 cents a text, while others upped the cost to 20 cents per text, and those prices get even higher across the board for international messaging.
That can really add up. Especially with incoming texts that you cannot control. Paying per text can exponentially impact your monthly bill.
To avoid getting hit with a huge bill, the best option is to explore cost-effective packages which can offer a few hundred texts per month for a few dollars extra.
Consumers can also track their messaging activity during the billing cycle by reviewing their account online. Once you near your limit, cutting down on texts will keep your bill under control.
But a sure-fire plan is to avoid texting completely, and stick with old fashioned calling.

There are people, especially teenagers, who cannot live without their sell phone anymore. I think the bill for these people will be very expensive, but if you only use your sell phone when it is really necessary I do not think there will be any problem.

Kathleen

Source: http://money.cnn.com/2007/11/08/pf/raw_deal_texting/index.htm?postversion=2007111213

Benefits from giving

It’s wonderful when you can go true life with the credo “it’s better to give than to receive”. But it’s probably better when you can give and receive at the same time. When you’re budgeting your charities you must reconsider everything twice. It’s also a nice thing when you can pass the methods to your family. Charity is a nice thing to do. On the website are already 2 allocations given: “charitable sweat equity” and “bigger charity spending by bigger earners”.

You also want to be sure you follow the rules so you'll be able to easily and rapidly justify your donations should the IRS ever question them. Underneath are some guidelines:

• Plan your charity budget
  


• Sweep away street solicitations
  


• Relies receipts
  


• Say no to propped-up value
  

You can still maximize the cumulative amount that goes around you'll be able to give for the rest of your life by careful planning in light of the following tax facts and rules

• Outer limits
  


• Maximum and minimum hassle
  


• Unlock stock and barrel
  


• Know a benefits self-benefit

Of course there are still several others ways to look and invest at your charity budget. But when I look in the article those 2 are the most important and have probably the most impact.

Els

Source: http://www.forbes.com/personalfinance/philanthropy/2007/06/18/donations-charity-taxes-pf-education-in_af_0618soapbox_inl.html

How $ 100 oil would cost you

You should brace yourself for record gas prices before the holidays and higher airfares.

Its recent rise will soon start to bite, at the pump, the airline ticket counter and possibly in your home.

Drivers had gotten off easy, gas prices hadn’t kept up with the increase in oil prices. The main reason: Demand has been fairly tame.

The relative price of gasoline is low, and that’s unsustainable, says Norrish.

Expensive flights

Higher oil prices also mean higher airfare for travelers. Jet fuel has been going up consistently for the last 3 to 4 years to the point where it’s affecting the airlines bottom line. Any cost gets returned to the customer, so they’ve been bumping up ticket prices to make up the difference.

Heating up a bit

There will be higher heating bills for those who use oil with a 22 percent increase in bills from last year.

The bigger picture

Higher gas prices will lift the costs to transport all goods, and manufacturers will respond by raising prices for consumers. But this is just a fear, it isn’t certain yet.

I think it’s normal that prices are rising, but this don’t mean I find it a good thing. They should think about other resources in stead of gas. I don’t think raising the price is the right solution, we should do more research to green business and green methods.

Laura

Source: http://money.cnn.com/2007/11/09/news/economy/oil_pay/index.htm?postversion=2007110916

FINANCIAL RULES OF THUMB

There are some rules of thumb that can help you gauge your financial progress. The article informs us about five rules:

How much debt should you have?
Most experts agree that your total monthly debt payments shouldn’t exceed 36% of your gross monthly income and over time you have to reduce that number.

How much home should you buy?
You should start by calculating your debt-to-income ratio using the 36% guideline for the sum of your monthly debts. After subtracting your other debt, you are left with a monthly payment that should be appropriate.
Another rule of thumb for housing is that you should buy a house that costs no more than two and a half to three times your annual income.

How much money should you save?
One of the most widely used rules for saving is that you should save at least 10% of your income. This is typically assuming you are saving additional money into a retirement plan as well. This 10% rule applies to creating a savings cushion for unexpected expenses, a college education, or other goals.

How big should your emergency fund be?
Most experts suggest a household have between three and six months worth of expenses available in the event of an emergency.
example: monthly obligations = 1 729.75 EUR
emergency fund = between 4 844 EUR and 10 381.38 EUR

How much money will you need in retirement?
Many experts use the assumption that you will need to replace your pre-retirement income by 75-80%. If you make 55 361.15 EUR the year before you retire, you should expect to have a little over 41 519.93 EUR in income during retirement.

Everyone has a unique situation so I think it’s not really easy to keep up to this financial rules,
unexpected problems are never far away.

Jan

http://financialplan.about.com/od/personalfinance/a/rulesofthumb.htm?p=1

Wanna retire rich? Don't spend like Britney

Whether you’re worth $ 100 million like Britney Spears, or $ 100, the same simple strategies can help ensure a comfortable retirement.
Britney f.i. isn’t saving for retirement while she got a large income. Her excess may shock most of the people, but her saving habits are actually pretty normal. The overwhelming majority of American 20-somethings aren’t saving anything for their retirement either. This way they don’t take advantage of their biggest asset namely time.
You have to be able to set aside just a little each month; this can help to maintain your lifestyle in perpetuity. Hiring a team of people to handle your investments isn’t really necessary. You can just put your 8% in a so-called target-date retirement fond.
As time passes, and you get closer to retirement, the fund will automatically adjust that mix of stocks and bonds to more conservative levels. The best part with these funds is that you do nothing. You’ll never have to say, “Oops I did it again” when it comes to your retirement.

I think it’s an interesting article, because many young adults don’t really see their retirement coming closer. Most of them use their first salary to buy a car, a house, … Finally they own and gain their own money, and they can do whatever they want with it. But if only they would put aside just a little amount for their old days, they wouldn’t have to face problems in the future with it.

Laura

Source:
http://money.cnn.com/2007/11/06/pf/retirement/revell.moneymag/index.htm?postversion=2007110617

Time to get out of debt

When money was easy and housing was booming, piling on debt seemed to pose little risk. Now it is time to dig yourself out.

Not so long ago, living a little beyond your means was not necessary. Just live well, knowing you could always tap your equity once those credit-card balances got a bit too high. But that gamble is no longer paying off.
If you are in over your head, you have got to think strategically about managing your debt portfolio so that it does not crush you. The plan that follows can help you bear the burden.

Reset your priorities
Sometimes the best thing you can do is defer savings and instead put every available cent into paying off debt until you get your finances under control.

Stretch it out
If you own a house and you are now tapped out, lowering your payments with a 40-year loan could be a good move. You will spend more in interest charges, but if the alternative is falling behind in your bills and having to sell your house in a falling market, a longer mortgage is the lesser evil.

Shop like crazy
It is a reminder that you will need to shop around more than ever for the best deal.

I think this is a good plan to get your finances back under control. But if I was you, I would not let it get this far.

Kathleen

Source:
http://money.cnn.com/2007/11/02/pf/chatzky_november.moneymag/index.htm?postversion=2007110210

Working five more years really pays off

Research has shown that working 5 years longer after your 60, can increase your pension with 80%. The study is done because so many people want to stop early with working. And the age that people quit their job is an important key factor for the standards of their pension. To calculate how much you want to have when you are retired, they use “replacements ratios”. It gives the relationship between their earnings and what they want to receive in their pension.

There are tables made and they show the differences when you work 5 years longer. Also something you must be aware off is the fact that extras that you got from the company, like cars etc are not calculated in those ratios. There are a couple of strong reasons why you should work 5 years longer after your 60:
- Higher earnings
- A cheaper pension
- Extra contributions
- Compound interest

But these are not the only ones, your insurance will have to pay you more when you are retired and women have even more advantages of it, because they live most of the time longer. Also can you invest 5 years longer in other investment products.

I know that longer working isn’t such an attractive idea, but maybe we must consider it, certainly with now, when we must face the social problem of people who keep growing older. The more and more people retire but the less go working, and to solve this problem, we must work longer. So don’t look only on the negative side of the story, but do also think at the advantages you can take from it.

Els

source: http://www.persfin.co.za/index.php?fArticleId=4112108

FINANCIAL HINTS FOR A CARELESS FUTURE

The tax collectors office are able to help you with a deductible fiscal supplementary pension, but there are other possibilities to optimize your saved capital:

Let the tax collectors office pay for your supplementary pension
Through individual pension savings you can collect money for your pension on a friendly fiscal manner. In 2006 is an amount of 800 Euro savings (yearly indexed) fiscal deductible. That’s a profit of 240 to 320 Euro, dependent from your taxable wage and family situation. If you invest each year 800 Euro in a pension fund, you will receive around 90.000 Euro gross after 35 years.

Let your company pay for your pension
If your company pays the premiums for your retirement and old age pension insurance, the savings will be kept out your taxable wage and notional amount for your social cost.

Try to get the best out of your company
The money that stays in the company can on a friendly fiscal mode different directions out. A part can be used for current service pension. During several years you will have build up a nice capacity of money in your company.

Gain in clearness from an expert
Private secretaries: some of them are working totally independent and just offering objective advice, but they sell no financial products. There fee is a stable.
Specialized insurance brokers: There fees are commissions on premiums or an expendable fee for a financial plan.
Banks: Sometimes they figure out a financial plan for “good” customers, even completely free.

Visit your notary
A visit to you notary can produce highly decreases for yourself and the descendants. Is your marriage contract tuned to your professional situation? What happens when you or your partner dies? ...

Nowadays a legal pension wouldn’t suffice to guarantee a careless future. It’s obvious that we choose for a systematic current service pension.


Jan

http://www.tijd.be/geld_beleggen/vermogensbeheer/artikel.asp?Id=2188144

Plan the perfect party

You have to make sure that your party is THE party, everyone’s talking about. Host it in grand style and at a great price with following tips from pros.

You want to have a big blowout, and make sure that the party is truly memorable, the type where everyone has fun and guests are still talking about the details for weeks to come. You aren’t sure whether you know the right little touches that will take the event from ordinary to extraordinary without spending a small fortune for it.

· Choose the right place, it’s a key consideration, count 4 to 5 square feet for each person. Cost and convenience are also factors. But always remember: easy doesn’t come cheap! To keep the price down you can ask the manager if you can bring in your own wine and spirits.

· Hire help, a planner can be an ideal solution if you’re too busy to deal with all the party details. You can find him by asking advices from friends or contact the International Special Events Society’s online directory at www.ises.com. Waiters, catering, entertainers… can also be hired.

· Know where to splurge… But never skimp on food, people remember what they ate a lot more than fireworks or a hot-air balloon.

· …and know where to save. The surest way to cut the expense of throwing a big bash is to cut the guest list. Nor is there any need to go high-end on printed party material and other froufrou. And in terms of flowers and other decorations, simply almost always wins out over elaborate.

· Party like it’s $ 19,99: ° go back to school

° limit the libations

° don’t do dinner

I chose this article, because I think it’s interesting knowing how to throw a party, which costs are avoiable and how you can evoid them. It also shows where you can find party planners and other interesting things that I didn’t know. Many people would love to throw a part, but just don’t know where to start and how to do it in the right way. So most of the time, they underestimate expenses or just look over certain details, but these details can make a big change in appreciation for the guests.

Laura

Source: http://money.cnn.com/2007/10/19/pf/party_party.moneymag/index.htm?postversion=2007101911

Is marriage a dumb move?

Falling in love afters years of building wealth can make life complicated. Marrying can sometimes make it worse.

Michele Mann had launched a successful interior design business. And she had nearly paid off her condo.
Then Mann, met Charles Wally. And love changed the game plan.
Not getting married never crossed their minds. But had they simply opted to live together, they would not have had to deal with sorting out the ownership of two homes, deciding on a succession plan for Mann's business or protecting the inheritance for Wally's kids.
No wonder that over the past decade the number of unmarried partners over the age of 65 has increased by 70 percent.

be sure to ask yourself these questions first.

Will marrying lower your income?
if you are collecting alimony from your ex, you will give that up when you remarry. Remarry before age 60 and you will lose any Social Security income you are entitled to from a previous marriage.

Will marrying raise your taxes?
You can inherit all your spouse's assets tax-free, but an unmarried partner must pay federal estate taxes on any amount over $2 million through 2009.

Will marriage increase your liabilities?
As a married couple, you will pay lower auto insurance premiums. You may also do better by joining your new spouse's health insurance plan. But being married can obligate you to shoulder some big expenses, such as your spouse's loan payments or credit-card debts.

Will it disinherit your kids?
Adult children can pose a problem, because marriage would give your spouse first dibs on your estate. You will need to draft a new will to keep your kids' inheritance intact.

This only becomes a problem when you are already a bit older. Because, when you are still younger, you do not have so much wealth. I think this article gives you something to think about, because not everybody knows all of this.

Kathleen

Source: http://money.cnn.com/2007/10/24/pf/marriage.moneymag/index.htm?postversion=2007102506

Britons lending their friends £510m a year

Britons are handing more than £510 million a year to their friends and family. The average amount that is given is £116. Before you do this, you must concern all problems you can face. Almost 3.5 people have said that their friendship ended because of money. Those amounts don’t need to be this high. 29% says that is was an amount below £100.
Several reasons are revealed to declare this situation. The first one is that people just borrow the money to help their friends until pay day. So people don’t have to lend money at the bank and so they don’t have to pay rents. The second reason is to pay off personal debts, like holidays, home improvements… Also helping set up a business, buying presents and medical expenses are reasons to lend money from friends. Of course is the best thing to do when you need a large amount of money, to go to the bank. Yes, indeed, you must pay the rent, but isn’t that more worth than your friendship with other people? It’s a well-know fact that people split up for money and that friendships and for money. But I think that people ignore the fact that they can lose their friends, however it’s something very common.

Els

source: http://www.myfinances.co.uk/insurance/news/loans/unsecured-loan/britons-lending-their-friends-510m-year-$477180.htm

EIGHT MISTAKES OF FINANCIERS TO AVOID

Choose the strongest climber
Most of the financiers choose for popular, high stocks. You have to look up and study the losers of the past years. The losers has to prove them, but the combination between risk and gain is a lot advantageous.

Unknown investments
You have to choose two studies that consider to sell a stock and two with a positive advice. It’s possible to estimate the dis- and advantages.

Afraid to sell with loss
You can keep a stock when you know it very well and you’re abreast of the fact that the bad news is only expendable. But you better sell your stock immediate when the news is very bad. Example: An important product that catches a serious delay.

Sell the winners to fast
You have to make a difference between stable and secure values (ex: Unilever) and speculative and risky stocks (ex: Option). You can’t hesitate to carry in the profit when it’s 50% on speculative and risky stocks, because they are to dynamic.

Bet on one horse
It’s recommended to have ten, preferably twenty, different stocks in one portfolio from several sectors and to diversify between small, large and medium-sized concerns.

Search confirmation for your own opinion
You have to search elements that contradict your studies and investigations. The best investments were made by thinking in the opposite direction.

Unknown investments capacity
You have to make a decision that has a substantial influence on your investments portfolio, namely: how long would and could you miss your money?

to under-appreciate dividends
The half of the total benefit of stock investments on a long term comes from dividends. The importance of exchange profit is reducing as your investments term becomes longer.

Investments gain more and more importance. It’s possible to gain a lot of money but also to lose. It’s necessary to know useful, profitable things about the investments market. Investments are a very complex matter, it’s not enough to be the smartest.

Jan

http://www.trends.be/nl/moneytalk/acht-te-vermijden-beleggersfouten/site72-section83-article8498.html#articleContainer

You have to cover many bases when preparing a will

There are many practical issues that you should deal with to ensure that your affairs are in order. The first thing you should have is a valid will. Next, ask yourself if you are still happy with the beneficiaries you have named. Also consider whether your will is properly witnessed.

There are a number of things you should consider:

How you are married
If you are married in community of property, you and your spouse own all your assets and your debts. When you die, half of the joint estate will be that of your spouse.
If you are married out of community of property, you and your spouse each retain separate estates.

Appointing an executor
After you die, somebody needs to make sure your debts are paid and your assets transferred to the right people in terms of your will. That “somebody” is referred to as the executor of your estate.

Reducing executor fees
If you appoint anyone other than your spouse or a family member as the executor of your estate, your estate will have to pay the executor the fees set out by law. The maximum fee is 3.5 percent of the assets in your estate.

Cash for surviving spouse
Your surviving spouse will need cash to live on after they die while the estate is being wound up. once your bank gets wind of the fact that you are dead it will freeze your account. For this purpose, the spouse should have his or her own bank account.

Choosing your beneficiaries
If you belong to a retirement fund, you may nominate your spouse or children as beneficiaries of the fund.

Final wishes
Don’t forget to leave some instructions to your family about funeral arrangements after you die

I think that when you are a bit older and already have a familly, you should do this even when you don't think about dieing at all. You never know what could happen.

Kathleen Aps

Source : http://www.persfin.co.za/index.php?fSectionId=706&fArticleId=4070426

Why $5 million is the new $1 million

Who wants to be a millionaire? A lot of people I guess, but nowadays it isn’t longer a synonym for being rich. With the rising costs of living and with the long retirements, financial experts say that that the new benchmark is $5 million. Financial advisers say that the multimillionaire clients are the fastest-growing segment. Though we must ask our-selves the question why we need more money to survive. The answer is easily. Because we live longer, we spend longer money. Of course, as we see in the article isn’t money as much worth in one part of America as in the other part.
Most of the multimillionaires today made their wealth in three ways. The first one, the real estate market created an enormous wealth. The baby boomers have gained a lot of money with it. The next one is the business buyouts. The third one, the technology boom has created a lot of wealth, but it has left also a lot of millionaires in its wake.
But the latest trend with millionaires is that they use their money to try to effect the global change. They put also money in social causes, but they want a social return on investment for it.
Being a millionaire is a dream for many of us, but I think you may not underestimate the social pressure. People expect a lot of the wealthy people, but it’s indeed a fact, that they also must secure their future. As we see in the article, you can’t stop working after winning the big lot. So being a millionaire is nowadays not a security of a nice and wealthy life.

Els

source: http://www.msnbc.msn.com/id/20586948/

First boomer applies for Social Security

The retired teacher from New Jersey is the first of her generation to seek benefits. People call it ‘the Silver Tsunami’ and it is an appropriate name because the Social Security trust fund is projected to go broke in 2041. President Bush had proposed changes to create private accounts, but it went nowhere in Congress. Bush’s budget director calls this a ‘fiscal train wreck’. The three entitlement programs make up nearly half of all federal spending, a share that is expected to grow.
A combination of benefit cuts and tax increases will need to be considered to permanently fix the Social Security shortfall.

In my opinion they had to take actions sooner. It wasn’t a secret that one day these baby-boomers, as they are called, would apply for Social Security. I think it’s an interesting and serious problem, certainly because this phenomenon occurs in several countries, even ours. I don’t understand why they didn’t take actions sooner since then, the problem has grown to an unseen climax. The fact that they want to raise the taxes is a negative thing, in my opinion, they don’t do nothing but adding to the problem.

Laura

Source: http://money.cnn.com/2007/10/16/pf/retirement/bc.apfn.boomersocialsecu.ap/index.htm?postversion=2007101610

Podcast 1

http://rapidshare.com/files/62208876/Podcast.wav.html

Els, Jan, Laura & Kathleen

RUSSIAN MOB CRACKED BELGIAN INTERNET BANKING

Fifteen Belgians with an internet account at Argenta, Dexia and KBC reported that their bank account was cleared. Someone has gained access to their internet account. The amounts and which technique the hackers used is kept secret by the direction of financial criminality.

The central system of the banks wasn’t cracked by the mob. The hackers have acquired the personal access code of the customers on their personal computer. It’s a new technique for the investigators because they are more conversant with “phishing technique”: the website of a bank is copied so well that customers are willing to trust their personal information to it.

The Russian mob has the ability to crack personal computers, bank systems, etc. Early 2007 hundreds of customers of Nordea (Swedish bank) were the victim of computer fraud through e-mails. Nordea blames the customers because they hadn’t installed the necessary anti-virus software.

The affected customers in the Belgian case are already repaid by their banks. In the mean time they have forced up the security to their sites and there weren’t any new reports.

In the Belgian case it’s the fault of the banks that some customers are hacked on their internet account. They have to anticipate to the highest security level so they don’t violate the faith of the customers. It’s not normal that they can force up their security after they were hacked. You give computer criminals the opportunity and time to crack your system. Banks have to recruit people who are specialized in internet security and they are obliged to follow the newest innovations.

Jan


http://www.standaard.be/Artikel/Detail.aspx?artikelid=B19545972071006

Debtors pay millions in illegal fees

Some debt administrators are profiteering from debtors' repayments by charging fees that far exceed the legal limits.

Low-income earners who are unable to keep up their debt repayments seek the help of debt administrators to reschedule their repayments to affordable levels. But a lawyer has found that most of these administrators are exploiting the people they are supposed to be helping and trapping them further in debt. Administrators are charging fees of about 23 percent to 50 percent of the amounts they collect, while they may legally take a maximum fee of 12,5 percent.

lawyer Eduan Matthee, who has been taking on debt administrators that are over-charging, started his own debt administration company. He says debtors often do not see these liquidation accounts. Thus they have no idea where they are in the cycle of repaying their debts.

Five years ago, the Banking Council commissioned independent auditors to research 20 large debt administration companies. The Banking Council's 2002 report said at that time some 650 000 people were under debt administration, and between 100 000 and 120 000 people were being placed under administration each year.

Matthee says all he has succeeded in doing by taking to court administrators who charge more than 12,5 percent of the amounts they collect is removing a single client from that administrator. The administrator is free to continue charging its other clients more than 12,5 percent, although found unfit to be an administrator in one case, is appointed soon after as an administrator in another case, Matthee says.

I think the government should do more to help those debtors. They already have many problems and keep getting more.

Kathleen

How to borrow from those you know and not ruin the relationship

As the mortgage market melted down this summer and the credit markets became chaotic, the stockbrokers noticed a new evolution. Although they thought that the lenders would reschedule their buyings, they just moved on. The reason of this is that the lenders had found a new way to get a mortgage. It’s not uncommon or new that people lend from their family or their friends, but often it’s associated with family problems and irresolvable arguing. The term that people use for this phenomenon is “circle lending”.

It’s not uncommon or new that people lend from their family or their friends, but often it’s associated with family problems and irresolvable arguing. The term that people use for this phenomenon is “circle lending”.

Personal I wouldn’t even consider this type of lending. Money often creates problems among people. And I don’t think it’s worth “to lose” your family over it. As a matter of fact they should forbid it. Of course you can use the argument that everything can be written down, but we all know that people count on each other. And if you propose that document, people would ask if you do not trust them. Future lenders must also look at the future, what if something happens and they can’t pay back everything, or maybe something happens with your loaners, what to do than?

Els

source:http://www.msnbc.msn.com/id/20834718/

The death of the chequebook

There has been a 40% decline in cheque payments since 1990. The crucial reason for the disappearing is that it’s a far less convenient, more time-consuming method of payment. Nowadays everything is about high speed (f.i. credit cards) so the chequebook dates from the past, when commerce was less speed conscious. There’s also the notion of increased tisk of fraud compared to credit cards and other methods of payments. Cheques are also not eco-conscious and we should be moving towards no-paper methods of payment. The process of completely phasing them out will probably a slow one, the objection will likely to be around 2025.

I think that the chequebook is indeed an outdated method of payment. Nowadays there are excellent and more effective ways to pay for something. The argument for the provisional survival of the cheque is that elderly people wouldn’t be able to comprehend the modern mode of operation of f.i. credit cards and others… But I think that they have underestimated them, it isn’t as difficult to learn it as they want us to believe. I honestly believe that the cheques days are counted, and his existence will soon be over.

Laura

Source: http://www.myfinances.co.uk/associate-article/popular-stories/the-death-chequebook-$477632.htm

FLEMING IS VERY GENEROUS FOR THE GOOD CAUSE.

Eighty per cent of the families gives money to a good cause. The amount has increased noticeable after the tsunami of 2004. Every year collects the Flemish league against cancer more and more money because most of the people know someone in their environment with cancer. Every Non-Governmental Organization (NGO) sees his account rising but there are different ways to reach that goal:

Some non-profit organizations like Child focus, Unicef, 11.11.11, Vredeseilanden, Oxfam Solidariteit,… are making an appeal to DDF (Direct Dialogue Fundraising). It’s a concern with professional fundraisers who are specialized in professional recruitment of donaters and members of non-governmental and charitable organizations. The donater has to pay monthly a small amount (5 €) in stead of one large amount (60€).

Another way to collect money is based on single persons without direct family. If you leave your savings for example to your neighbour, he has to pay 45 till 65 per cent death duties. But you can also leave your savings to the Red Cross. This organization pays only 8,8 per cent death duties. It’s possible to agree with the Red Cross that they have to pay the death duty and further the neighbour. The difference between the death duties of the neighbour and the limited percentage of the Red Cross may the organization keep for themselves. Everybody wins except the tax authorities.

The existence of Non-Governmental Organizations is necessary because otherwise some Third World countries wouldn’t survive without our support, medication,… Everyone has the right to enjoy the common good and prosperity. The fiscal deduction for donations from 30 euro is a good initiative of the government. It’s persuading a lot of firms,… to donate money for the good cause.


Jan

Source: http://www.standaard.be/Artikel/Detail.aspx?artikelId=GS1HN9J6&kanaalid=3

Do Student Loans Affect a Mortgage Application?

Will a students-loan hurt the chances of getting a mortgage? This column replies and gives answers on this problem. At first, lenders do not only look at what you owe, but also at your income. On the basis of your income they determine how much you can loan. Of course they do not only look at your repayment of the mortgage, but also at the taxes and other debts. So you won’t have too many money problems.
Another important factor: the more money you can put down, the bigger your chance will become you will get a mortgage. That’s because the lenders don’t want to take too many risks. Also important is your credit score, and in this part the student loan could be a problem, but not necessarily. And that is because a student loan is more favourably than a credit-card debt.

Owing a lot of money in instalment debt isn't going to hurt your credit score as much as maxing out your credit cards. And now we arrive at the important part of the column. “Young people get often problems, because they blow off their student loans” !!!! And that while you have more support by the government when you have a student loan than when you owe a current mortgage.

To help out the students with their loan-problems they can also do this:
-if you can’t find an income, ask your lender to spread the repayment.
-if you have an income, but it is too low, you can ask too the lender to repay the loan by proportion of your income.

It’s nice to know that there are several options to lend money or get a mortgage for young families. Often are these aids not well-known and aren’t there a lot of people who can use it. That’s I think also a problem in Belgium. The reason of this silence is to make sure that the mortgage companies and banks, won’t lose to much money.

Els

source:http://www.kiplinger.com/columns/drt/archive/2007/dt070926.html

Mortgage meltdown : vulture investors

Real estate investors find a good lure in depressed markets, they think that the markets are ready to bounce back.
Many housing markets in Florida are looking at double-digits drops in housing prices.

Vulture investors are putting their money in this targets, they buy cheap in the hope that prices will rebound. More specific: local housing markets that have fallen far, but still have potential to recover soon.
They believe in the long-term viability of the real estate market in Florida, but they are buying on rental economics. In former times people had purchased on condo economics, but nowadays these numbers no longer apply.
Demand for rental housing has grown, due to the mortgage meltdown mess and vulture investors react to this fact. They are looking for discounts off previous condo prices to make their purchases viable, then they convert the apartments back into rental units.

In first instance I think it’s good that they are doing something to the whole housing problem in America. Many Americans live above their standards, and this phenomenon also appears on their housing lifestyle. People look at their houses as if they were symbols of status. Nowadays home ownership has reduced and the demand for rental housing has grown, this should provide a price-safety net.
But vulture investors don’t buy houses because it’s a solution to Americas problem. They do it for the return of it. People don’t call them “vultures” for nothing. As a fact they contribute to the matter, in short term it’s a good thing for the citizens. They receive a nice amount of money, but they don’t own a house anymore. At long term, they have to pay more and still don’t own a place of their own.
In my opinion, the government should be the first to react to the matter. The vulture investors look to areas with job growth and low unemployment, but what about the other zones, who struggle even more with debts?!?

Laura

Source: http://money.cnn.com/2007/09/24/real_estate/vultures_circling/index.htm?postversion=2007092718

Solar finally pays off

Solar panels catch enough rays to power your home and sell electricity back to the utility. Some people already have solar panels and they say that it gives them immense satisfaction, there is no easier way to make money than to sit out there and enjoy the sunshine.

Research shows that most Americans would be very interested in having a solar system, but do not realize solar can power a house economically.
Another thing most people do not realize is that the economics for solar do not depend solely on how many hours the sun shines, but whether your state offers a financial encouragement.

You can also sell power back to the utility, this makes them into power banks. If you feed more power in than you take out, you store up credits for future use.
Another benefit of solar panels is the insurance against rising energy prices.

As the price of generating conventional power has risen, the costs associated with solar power have fallen dramatically. Solar panels now cost 80% less than they did in the early 1980s.

Of course, solar power is not all about economics. There is a certain set of the population who will pay a substantial sum to do the right thing.

I think solar panels are a very good investment. You can save money with it and it helps the environment. I can imagine some people do not like the way your house will look with solar panels on your roof, but to me that is not important.

Kathleen

Source: http://www.kiplinger.com/magazine/archives/2007/10/solar2.html?kipad_id=2

Fleming satisfied with their wages

About 85 percent of the Flemish families are satisfied with their income, yet one on three families with young children has difficulties to reach the end of a month. Traders lead the field with 92 per cent. The result drops to 66 percent at the in actives and one single person on five isn’t satisfied at all. Almost four Flemings on ten describes his financial state as comfortable.

Wages rise more than benefits
To keep in step with the prosperity introduced the Belgium government a “health index”, an index without cigarettes and fuel. The wages are rising -in contrast with benefits- with more than just that index. Owing to the generation pact the benefits will rise each 2 years. That’s the reason why at New Year 2008 the unemployment benefit rises with 2 per cent.

Employees happier than workmen
46 per cent of the employees says he has it comfortable, for workmen is it just 30 per cent. You have to divide the employees in two groups. On the one hand the managers and executives who earn a lot of money and on the other a group of employees with modest wages.
I find 85 per cent a high result because there are a lot of people who grumble about the proportion wages and work or they have to pay to much taxes… Also the fact to rise the unemployment benefit isn’t a good idea because there are people who resign form their jobs because they earn about the same wages in benefits. The active people are the victims of the system because they have to pay for the unemployed

Jan

source:
http://www.standaard.be/Artikel/Detail.aspx?artikelId=G5P1HF6AL&kanaalid=3

why short-term savings?

In this article we will talk about short-term savings. By "short-term savings," we mean the money you will need for emergencies and for big expenses such as a wedding, vacations, a new car, or when you lose your job.

What could happen if you don't have short-term savings?

- Emergencies or even expenses will spring a credit card trap on you that can take years to escape from.

- To cover a sudden expense, you may have to sell assets, such as stocks, that were intended to cover long-term goals. Unfortunately, this happens during a time when the market is down, and you have to sell your stocks at a loss. Plus, that money is no longer invested, so you will miss out on future growth.

You have got several options on where to keep your short-term stash. But first you need to determine how much short-term savings you need.

How much you set aside depends on the following factors:

- your willingness to take risk

- your needs

- your upcoming expense

I don’t think you need to have to much short-term savings, because your profit will be bigger when you have long-term savings. But, it is very important to have some money you can use in case of an emergency.

Kathleen

source: http://www.fool.com/savings/shortterm/01.htm?ref=smp