1. Take your time and shop around. You should be able to compare prices and houses. If a lender or broker tells you they are your only chance to get a loan or owning a home, don’t do business with them.

2. Do not sign a sales contract or loan documents that are blank or that contain information which is not true.

3. Be certain that the costs and loan terms at closing are what you originally agreed to.

4. Do not be talked into lying about lie about your income, expenses, or cash available for downpayments in order to get a loan.

5. Watch out for higher-risk loans such as balloon loans, interest only payments, and steep pre-payment penalties.

6. Be careful about disclosing things like your need of cash due to medical, unemployment or debt problems. You are very vulnerable in these cases.

7. Don’t strip your home’s equity by refinancing again and again when there is no benefit to you.

8. Beware of false appraisals.

9. Do not let anyone convince you to borrow more money than you know you can afford to repay. If you get behind on your payments, you risk losing your house and all of the money you put into your property.

10. Get several quotes from multiple brokers or lenders so you know you’re being charged a fair interest rate based on your credit history, not your race or national origin.

You might need to pay for a down payment. You might need to pay off some credit card debt that’s nagging at you. You might want to ‘bugger off to Europe’ as Rick did some years ago. You know it’s not a good idea financially, but you do it anyway. Retirement savings are not designed to bail us out when we need this kind of short-term cash infusion but if it’s there…

As financial advisors, we have our ideals. Ideally, you should put retirement funds away and ‘leave it there’. Ideally you should never touch it at all, even when you retire! Why? Because it is the ‘earnings’ from the nest egg that you should be using, never the principal. As we heard one person suggest recently, your principal is like your ‘goose’, and you never kill the goose, because then you’re eliminating all those future ‘golden eggs’ (interest/earnings) it will lay.

As financial advisors, one way we try to prevent people from yanking out their retirement savings is by ensuring there are other ‘short-term’ funds available for emergencies. These are meant to act as a buffer zone against the yankers. It helps, but it doesn’t always work.

One problem is that a distant retirement will never be more urgent than the current cash demands you have. It’s impossible. How can long-term demands be more urgent than a current crisis? So what stops you from yanking out those retirement funds? Their convictions? Simple arithmetic? A more viable alternative?

When a client is bent on yanking out their retirement savings to pay off, for example, some credit card debt, telling them how much they’re going to lose in retirement income in 25 years time doesn’t seem to work. Even telling them how much the tax bill is going to be next year can pale in comparison to the relief the person is seeking from the anxiety over their current debt crisis.

So, the question is how can we provide ‘relief’ and still keep the retirement funds intact? Look at a debt consolidation loan? Review the person’s cash flow and create a debt repayment program? Maybe this will work for a minority of people. In the real world, when people are looking for relief, however, they are looking for relief NOW!!! The easiest way is to yank to retirement funds and be done with it.

So, in the moment, when you are in a cash crunch and seemingly have no other place to go, you will yank your retirement savings. Unless you have anticipated the problem and ‘pre-decided’ that under no circumstances will you access your retirement savings. In this way, you will do a pre-emptive strike on bad financial moves. Further, you will be cognizant of putting yourself into situations where you might risk those long term savings.

The alternative is to invest long-term, make progress, encounter a short-term cash crunch, yank out your retirement funds, survive the problem, invest long-term again, make progress, encounter yet another short-term cash crunch, yank out your retirement funds to get relief…

If you’re locked into an investment cycle like this, your retirement savings have not been growing consistently over the years, and it’s not just the market.

Getting a grip of your finances is paramount in surviving this current economical climate and daily luxuries need to be kept to a minimum, if needed at all. Families around the world will be buying in bulk, tweaking financial policies and generally cutting back on that they spend to save a bit of extra cash to get them through the storm.

If you are forced into needing extra cash then you should tread each step ever so carefully if you choose to borrow money as making one wrong decision could leave you hundreds, maybe thousands of pounds out of pocket. The commonest mistake made by the average person is that they opt for the first policy that they see, like a moth around a light bulb they get very excited and think it is easier to bag it straight away. The more sensible option is to compare whatever quote you get with its competitors, a good platform to do this, is online comparison websites.

The price comparison sites enable you to compare quotes from a range of providers for the same product in the same place, meaning you get the cheapest price out there.

Another common mistake people make is by choosing the wrong method to borrow money. There are essentially four different methods of lending money; secured loans, unsecured loans / personal loans, payday loans and credit cards with each one suiting different people in different circumstances.

If you are unaware of what method is best for you then you should seek professional advice, again, it is certain that the price comparison sites will provide some form of guidance as to which method is best for you whether it be a secured loan or personal loans.

Are you as good an investor as you think? Do you consider yourself a well-informed investor able to anticipate and avoid nearly all pitfalls associated with investing? Chances are, you are making one of the common errors that could cost you hundreds or even thousands of dollars, or worse yet, your financial independence, control and security.

“I see people making the same costly mistakes over and over,” says Scott Frush, CERTIFIED FINANCIAL PLANNER and author of Optimal Investing: How To Protect and Grow Your Wealth With Asset Allocation (Marshall Rand Publishing; available by calling 1-800-247-6553). ”But small leaks can sink great ships.”

Scott Frush is president of Frush Financial Group and editor of the Journal of Asset Allocation. Discover some of his investment secrets in the free report, 15 Golden Rules for Building Optimal Portfolios, available at www.AssetAllocationExpert.com.

Here Scott Frush shares eight common, yet costly, mistakes investors make when designing their investment portfolios and reveals how to avoid them.

1. OMITTING APPROPRIATE ASSET CLASSES AND ASSET SUBCLASSES. Numerous landmark studies have concluded that how you allocate your portfolio, rather than which investments you select or when you buy or sell them, determines the majority of your investment performance over time. As a result, make every effort to allocate your portfolio to all appropriate asset classes and asset subclasses.

2. SELECTING INAPPROPRIATE ASSET CLASS WEIGHTINGS. By selecting inappropriate asset class weightings a portfolio may earn a lower return and experience greater risk than expected. Consequently, be careful not to over or under weight any asset class, thus enhancing your portfolio’s risk and return trade-off profile.

3. UNDERESTIMATING THE IMPACT OF INFLATION. Inflation can erode the real value of your portfolio over time, thus placing your future financial security at risk. As a general rule, the longer your investment time horizon, the more you should allocate to equity investments. For shorter investment time horizons, emphasize fixed-income and cash and equivalent investments.

4. NEGLECTING THE EFFECTS OF PORTFOLIO MANAGEMENT EXPENSES. Over time, the compounding effect of portfolio management expenses can be quite large, thus depriving you of better returns. For this reason, you should focus on minimizing portfolio management expenses, specifically trading costs, advisory fees and taxes.

5. MAKING INACCURATE RETURN FORECASTS. Forecasting is the single most difficult task with designing portfolios. Although not a perfect solution, using historical returns rather than making forecasts is generally considered more appropriate for individual investors.

6. OVERESTIMATING THE LEVEL OF PORTFOLIO DIVERSIFICATION. Diversification is one of the ten cornerstone principles of asset allocation and is key to reducing risk, namely company-specific risk. To properly diversify, you should hold sufficient quantities of not-too-similar securities with comparable risk and return trade-off profiles. Consider broad-based index funds for a quick and easy solution.

7. MISJUDGING THE IMPACT TAXES HAVE ON NET RETURN. Taxes can have a severe negative impact on your net return. As a result, balance tax and investment considerations, but remember that suitability and appropriateness of an investment take precedence over tax consequences. Never hold an inappropriate investment.

8. CONFUSING DIVERSIFICATION WITH ASSET ALLOCATION. Many investors mistakenly believe that a properly diversified portfolio is a properly allocated portfolio. This is the leading misconception of asset allocation. Properly allocate your portfolio among the different asset classes first and then diversify the investments within each asset class.

By avoiding these biggest mistakes you will design an optimal portfolio that provides the best opportunity to achieve and protect your financial independence, control and security.

The current trend in brokerage houses is to offer rock bottom commissions on round turns, but very little in the way of information or support services for their customer base. Although this option is good to have, there are certain issues to consider when looking at these types of brokers. The first realization you should have is an old adage that still holds true, you get what you pay for. Though some traders are experienced enough, and pay for enough outside research to make use of these discount services, most of us will need a lot more help from a professional to be successful long term. With most discount brokerage services, you are on your own.

So then, what is the alternative? Full-service brokers can be a good alternative for the novice or intermediate level trader. The basic idea of the full service broker is relatively simple, he or she should be a person who is well informed, accessible to you, and able to help you avoid some of the common mistakes made while trading. Additionally, a broker who is good for you should be well informed on the markets you are trading, and able to give you recommendations when you’re struggling with market strategy. If you have traded before, you probably also know the value of having someone reliable to resolve issues dealing with problems with your equity statements, margin, or any other possible office error. The full-service broker should take care of details and problems, leaving your mind free to focus on trading.

The question of commission is the last issue to address when evaluating the full-service broker. What is a fair rate? This is a very relative question. Although you should obviously price a few different brokers, to see what others in the field are charging, this question boils down to what kinds of assistance you think you will need to trade effectively. Two questions to ask yourself when negotiating your round turn rate are: A: What is a fair price for the expertise and assistance this broker is offering? B: Is the cost of using this broker an expense that you can cover, and still be profitable, on a per trade basis?

Comprehensive financial planning should involve these areas and these specific questions.

ESTATE PLANNING
How can you accumulate a sizable estate to pass on as a family legacy?
How will your hard-earned assets be distributed after your death?
How can you minimize federal estate taxes and state inheritance taxes?
How can you best provide for your surviving spouse and children?
Whom do you want to carry out your wishes?

RETIREMENT PLANNING
How can you accumulate enough in retirement savings and pension benefits to enjoy a comfortable retirement free of financial worry and not be a burden to your family?
How much (or little) can you expect to receive from Social Security?
How can you coordinate your IRA, 401k, pension, Social Security, and other retirement benefits for maximum effectiveness?
At what age can you really afford to retire, especially if you have children to send to college?

TAX PLANNING
Are you taking full advantage of the tax laws so that you are not paying more than necessary?
Are there changes you could make in your business structure that would reduce your income taxes?
Do you have access to changes in tax law that affect you?

RISK MANAGEMENT
How are you protected against the unpleasant and potentially catastrophic losses associated with natural disasters, illness or accident, disability, property loss, personal liability, and premature death?
Is your business protected against these potential losses?
How would your business be affected if your key people were no longer able to function?

INVESTMENT STRATEGY
Do you really have a structured investment strategy or do you just invest haphazardly in the latest investment fad?
Do you know how to increase your investment returns and lower your investment risk through the use of the principles of the Modern Portfolio Theory of Asset Allocation?
Is your asset mix appropriate for your short-term needs as well as your long-term goals?
Do you adjust your investment strategy as your investment objectives change?
Are your investments effectively overcoming the ravages of inflation and taxation?
Do your investments accurately reflect your risk/reward profile?

Answers to these questions should be incorporated into a customized personal financial plan tailor made just for you.

A Financial Plan is specific to your unique needs and will include the following:

• Current and projected financial statements
• “What if” scenarios with different assumptions
• Cash flow objectives
• Retirement goals and tax-efficient ways to achieve them
• Funding children’s education
• Protecting against the financial impact of premature death or disability
• Implementation schedule with a time frame to follow.

Expect this process to be an eye-opening experience. You should be able to see all the disparate areas of your financial life come together into a comprehensive, meaningful, integrated whole.

All parts will work together like a well-oiled machine. You will see exactly where you are now, where you want to go, and most importantly, how to get there. Any obstacles you face will be clearly identified.

Your personal financial plan is a living document that should be reviewed on a regular schedule and altered to meet your changing circumstances.

Developing your financial plan is only the first step in a life-long process of wealth accumulation and financial security. Free financial planning resources are available at flanancialplanninginfo4u.com when you are ready to begin.

Although making resolutions to improve your financial situation is a good thing to do at any time of year, many people find it easier at the beginning of a new year. Regardless of when you begin, the basics remain the same. Here are my top ten keys to getting ahead financially.

1. Get Paid What You’re Worth and Spend Less Than You Earn

It sounds simplistic, but many people struggle with this first basic rule. Make sure you know what your job is worth in the marketplace, by conducting an evaluation of your skills, productivity, job tasks, contribution to the company, and the going rate, both inside and outside the company, for what you do. Being underpaid even a thousand dollars a year can have a significant cumulative effect over the course of your working life.

No matter how much or how little you’re paid, you’ll never get ahead if you spend more than you earn. Often it’s easier to spend less than it is to earn more, and a little cost-cutting effort in a number of areas can result in big savings. It doesn’t always have to involve making big sacrifices.

2. Stick to a Budget

One of my favorite subjects: budgeting. It’s not a four-letter word. How can you know where your money is going if you don’t budget? How can you set spending and saving goals if you don’t know where your money is going? You need a budget whether you make thousands or hundreds of thousands of dollars a year.

3. Pay Off Credit Card Debt

Credit card debt is the number one obstacle to getting ahead financially. Those little pieces of plastic are so easy to use, and it’s so easy to forget that it’s real money we’re dealing with when we whip them out to pay for a purchase, large or small. Despite our good resolves to pay the balance off quickly, the reality is that we often don’t, and end up paying far more for things than we would have paid if we had used cash.

4. Contribute to a Retirement Plan

If your employer has a 401(k) plan and you don’t contribute to it, you’re walking away from one of the best deals out there. Ask your employer if they have a 401(k) plan (or similar plan), and sign up today. If you’re already contributing, try to increase your contribution. If your employer doesn’t offer a retirement plan, consider an IRA.

5. Have a Savings Plan

You’ve heard it before: Pay yourself first! If you wait until you’ve met all your other financial obligations before seeing what’s left over for saving, chances are you’ll never have a healthy savings account or investments. Resolve to set aside a minimum of 5% to 10% of your salary for savings BEFORE you start paying your bills. Better yet, have money automatically deducted from your paycheck and deposited into a separate account.

6. Invest!

If you’re contributing to a retirement plan and a savings account and you can still manage to put some money into other investments, all the better.

7. Maximize Your Employment Benefits

Employment benefits like a 401(k) plan, flexible spending accounts, medical and dental insurance, etc., are worth big bucks. Make sure you’re maximizing yours and taking advantage of the ones that can save you money by reducing taxes or out-of-pocket expenses.

8. Review Your Insurance Coverages

Too many people are talked into paying too much for life and disability insurance, whether it’s by adding these coverages to car loans, buying whole-life insurance policies when term-life makes more sense, or buying life insurance when you have no dependents. On the other hand, it’s important that you have enough insurance to protect your dependents and your income in the case of death or disability.

9. Update Your Will

70% of Americans don’t have a will. If you have dependents, no matter how little or how much you own, you need a will. If your situation isn’t too complicated you can even do your own with software like WillMaker from Nolo Press. Protect your loved ones. Write a will.

10. Keep Good Records

If you don’t keep good records, you’re probably not claiming all your allowable income tax deductions and credits. Set up a system now and use it all year. It’s much easier than scrambling to find everything at tax time, only to miss items that might have saved you money.

Reality Check

How are you doing on the top ten list? If you’re not doing at least six of the ten, resolve to make improvements. Choose one area at a time and set a goal for incorporating all ten into your lifestyle.

Neglecting your financial obligation with your credit card greatly affects your credit score which may hinder you from making transactions in the future such as getting a loan. Instead of running away from these debts, there are many companies consolidate credit debt that you can choose from. If you have good credit rating, then you should consider getting a balance transfer credit card to consolidate your balances. This way, you can still enjoy the convenience of cashless shopping without having to worry about multiple debts. Usually, balance transfers offer a starting interest rate of zero percent.

You can also select other debt settlement programs to get out of debt fast
with various payment schemes. These companies provide you with a debt counselor who will negotiate with your credit card company as to the best settlement program for you.

Self-control is probably one of the most effective solutions in credit card debt relief. If you seem to be an impulsive shopper, then better stop the use of your credit cards to keep you from unwanted debts.

Once you have completed the application and you have submitted all the necessary requirements, you can expect your requested money to be deposited into your bank account in no time.

Like any other financial resource, a quick payday loan can also be a big burden. Despite the fact that it is only a short term loan that provides only small amounts of money, a mismanaged payday loan can result to a very huge debt. In order to prevent such unfortunate event, the aspiring borrower should be careful with his transactions. Below are some of the common mistakes that aspiring payday lenders should avoid committing.

Mistake No. 1: Not comparing payday loan offers

The reason why many people end up having huge payday loan debts is because they acquired the wrong type of payday loan. They might have availed of a fast-cash-advance that does not suit their needs and financial capabilities.

Each of these types is made to cater to particular types of borrowers. Some provide low fees while others do not. Some provide long maturity periods while others only offer short terms like seven days. Some require their clients to allow automatic debiting in bank checking accounts while other payday lenders will just settle for savings accounts. Some do not allow loan roll-overs while others permit the borrower to roll-over their loan up to four times. There are a multitude of varieties and aspiring borrowers should choose wisely for the best option.

Mistake No. 2: Being unaware of the process

If you want to avail of a quick payday loan, you have to be aware of all the processes involved in it. You have to know how to apply for it, how you can get your requested money, and how you repay the loan. You have to know the rules and regulations that are proposed by the payday lending company. You have to understand everything that is stipulated in your loan agreement. Being ignorant of these things will often lead to misunderstandings and magnified debts.

Mistake No. 3: Being ignorant of the law

Aside from the rules stated in the quick payday loan contract, the aspiring borrower should also be aware of the state laws that govern payday lending businesses. Note that not all states in the USA allow cash advance lenders . In fact, there are only thirty seven states that legitimized payday lending businesses. In these states, payday lending is regulated.

Before getting a payday loan, you have to know if there are any state laws that limit the maximum loan amount, the interest rate, the maturity period, the number of allowable loan extensions, and the maximum number of outstanding payday loans that an aspiring borrower can avail of. Being ignorant can lead to serious consequences.

Becoming a successful trader in the Forex market is not something that happens overnight. There is a certain process to it and these things do take time. Yes, you may feel anxiety at times, and even fear. However, it all boils down to your capability to act despite the fact that you are afraid. This is what distinguishes a successful Forex trader from the ones who are not too successful in the arena. So, what then can you do to be that successful Forex trader? Visit www.ForexTradingPal.com for the best brokers and extended information concerning the market for Foreign Exchanges.

Control your fear when trading Forex

First, you must learn to control your fear. The online Forex market is quite exciting, don’t let is get you. This is made easier by practicing as much as you can. Just like acting on stage, there will always be moments of stage fright just before you go onstage and recite your lines. However, this does not stop you from carrying out your lines, right? This is because in time, you will have had mastered the art of controlling your fear already. But this does not mean you have free reign to become overconfident as well. overconfidence leads to lack of focus, which is also hazardous to any trade being made.

Analyze yourself as a Forex trader

You need to look inside yourself and gauge what type of trader you are. You can do this by first gauging what type of person you are and then you can move on from there to being the trader that you are. Look at yourself; are you the type who is able to control his or her emotions even when faced with a difficult situation or problem? Are you the type that shows grace under pressure? What is your perspective on taking risks? Are you the type that just might take more risk than what is needed? Make sure to analyze what type of person you are so that you can plot these observations out onto the context of Forex trading.

Be the personification of patience when doing online Forex trading

Many Forex traders, especially the novice ones, make the wrong assumption that successful trading in the foreign exchange market entails making fast trades. This is not true at all. Although the market does move at a fast pace, this does not mean you should just go with the flow here. As a novice, you have to be patient when studying the market. Focus on the different aspects that you should focus on, such as charts and technical indicators.

By keeping in mind all the discussed elements above, you should be on your way to becoming quite the successful Forex trader in the market today.

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