Save more, spend smarter, and make your money go further
Last week I was in Athens, GA guest lecturing at the University of Georgia . I’m up there once a semester speaking with senior students who are about to graduate and go out into the “real” world. And while my agenda is to talk about credit reports, credit scores, and how the whole financial services system works, it usually ends up becoming a fairly lengthy Q&A session about how best to establish and build your credit. Here’s the deal…you have one chance to establish credit, that’s it. You can either do it the right way or the wrong way, but you can never have a mulligan. For those of you who’ve already built credit and managed it poorly (for whatever reason), you’re not going to have to build your credit; you’re going to have to re-build it. Here are some of the more common methods for each, and their pros and cons:
Opening A Secured Credit Card
A secured credit card is a legitimate credit card issued by a legitimate bank. You make a deposit at the bank and they will issue you a credit card with a credit limit equal to your deposit. Since you’ve essentially fully secured any purchases you’ll make with a cash deposit, banks are more willing to issue these cards to either new credit users or those who are trying to rebuild their credit. Additionally, you can open a secured card for as little as a $250 deposit, so it’s a nice option for people who have limited cash flow. Secured cards aren’t a good long-term option,however; the fees associated with these cards and the interest rates aren’t very good. But, you have to remember that you’re opening the card for a purpose and that purpose is to get something good on your credit reports. After a few years of paying the bills on time you may be able to convince the card issuer to convert the account to an unsecured credit card and refund your deposit. And because this is a credit building strategy, you’ll want to make sure you choose a card issuer who reports their secured card accounts to the credit reporting agencies. Otherwise, you’re just wasting your time.
Being Added as an Authorized User
An authorized user is someone who has been authorized to use a credit card issued to another person. Most of the time, parents will add their children to one of their existing credit cards, which allows them to have a card in their name but doesn’t convey any sort of liability for payment of the balance. The good news is that the account history is reported to the authorized user’s credit reports and can almost instantly establish them a solid credit history. This is my favorite option, as it really has no downside. I call the authorized user strategy “having a credit card with training wheels.” As long as the account is managed properly, then it’s a positive addition to your credit reports. And, this is a great option for consumers who have limited (or zero) cash flow or are already working hard to get out of debt. If the account is mismanaged by your parent (or spouse, as this is also common among spouses) then all you have to do is ask that your name be removed from the account and it will also be removed from your credit reports. In fact Experian, one of the major credit reporting agencies, will automatically remove the account history from the authorized user’s credit report if it becomes derogatory, “because an authorized user has no responsibility for repayment of the debt”, according to Rod Griffin, Experian’s Director of Public Education. “We will also remove the account at the request of the authorized user.” The good news for authorized users is that the FICO scoring system gives you full benefits for a properly managed authorized user account on your credit report, as long as you have a legitimate relationship with the primary cardholder. A few years ago, credit repair companies were trying to take advantage of the authorized user strategy to boost the credit scores of consumers who had bad credit. FICO figured out a way to filter out the consumers trying to game the system, so they won’t get the same benefit as a legitimate parent/child or husband/wife relationship.
Co-signing For a Loan
Co-signing for a loan is when you sign the promissory note (the promise to pay back the loan) and accept equal liability for payments on someone else’s loan. The newly opened loan will likely end up on your credit reports and will help you to establish or re-build your credit. Co-signed loans are normally auto loans, personal loans, or mortgages. That’s where the good news ends. I don’t like this option for three reasons:
1) It’s unnecessary. You don’t establish credit any faster by obligating yourself to a huge loan than you do by opening a $250 secured credit card. Choose the path of least resistance!
2) You can’t change your mind. There is no such thing as “co-signing for credit only” although some consumers have tried to challenge this in court, unsuccessfully. When you co-sign you’re just as liable for payments as anyone else on the loan. If the payments start being missed, it’s your problem. You have to be prepared to make all the payments if you choose this option.
3) Missed payments will go on your credit reports. If the payments on the loan are missed then anyone who has signed for the loan (yes, including you) will have a record of those missed payments reported on their credit reports. And, if the loan goes into default any aggressive collection actions, including litigation, it will be targeted at you. I’m not a fan of co-signing for a loan EVER, unless you need two incomes to qualify for a mortgage.
John Ulzheimer is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a contributor for the National Foundation for Credit Counseling. He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry. The opinions expressed in his articles are his and not of Mint.com or Intuit. Follow John on Twitter.
Save more, spend smarter, and make your money go further
Wells Fargo has finally admitted to errors involved in its foreclosure process, according to a company press release.
The top mortgage lender in the nation said it identified “instances where a final step in its processes relating to the execution of the foreclosure affidavits (including a final review of the affidavit, as well as some aspects of the notarization process) did not strictly adhere to the required procedures.”
But noted that the issues the company identified probably didn’t lead to any foreclosures that shouldn’t have occurred anyways.
As a result of the findings, Wells Fargo has elected to submit supplemental affidavits for approximately 55,000 foreclosures, which are pending in 23 judicial foreclosure states.
“The process of submitting supplemental affidavits will begin immediately with a goal of having this process completed by mid-November 2010, subject to state and local requirements,” the company said in a release.
“If the company is unable to complete an individual court filing by the designated court review date, it will request a court extension to assure the file contains a supplemental affidavit before the judge rules on the case.”
Wells Fargo also affirmed that it does not plan to institute a moratorium on foreclosure sales.
“From January 2009 through September 30, 2010, Wells Fargo has successfully completed 556,868 mortgage loan modifications, which includes $3.5 billion of principal forgiveness, and has refinanced approximately 1.9 million mortgage loans,” the company added.
Admittedly, Wells has been one of the more prudent mortgage lenders out there, and their loan portfolio reflects that.
Only two percent of their home loans were considered subprime at loan origination, and 92 percent of its mortgage servicing portfolio is current.
Earlier this week, Bank of America also admitted to foreclosure process failings, but expressed that things like misspelled names and incorrect addresses didn’t actually lead to “wrongful foreclosures.”
Stephanie Cornais found a cooking method that saved time and money, but it left her exhausted.
Stephanie, who blogs about parenthood and healthy living at Mama and Baby Love, would cook a month’s worth of meals in one day, then store them in the freezer.
It’s an idea that’s been around for awhile. In fact, J.D. wrote about it back in 2007. By batch cooking, not only do you have healthy, home-cooked meals when dinner time rolls around, but you also can save money by buying in bulk and not relying on convenience foods.
“I buy my beef and chicken straight from a local farmer, and buying beef in bulk saves me a good amount money,” says Stephanie. “And I save money by always having my freezer full of food and never having to rely on take out, fast food, or processed frozen foods from the grocery store.”
Once-a-Month Cooking Is a Lot of Work!
Stephanie was saving money and had a freezer-full of home-cooked meals, but once-a-month cooking was problematic.
For one thing, Stephanie experienced a lot of anxiety leading up to the big cooking day. “I was still learning how to cook, I was afraid of messing up, and I was afraid of feeling the emotions that came up in the kitchen,” she says. “My mother suffers from mental illness and being in the kitchen brought up a lot of painful memories of not having a mother who really took care of me and nourished me.” Also, the cooking marathons were physically exhausting. A once-a-month cooking session requires a lot of planning. “Between the juggling of cooking and childcare, the prep work, organization, and scheduling, it can be overwhelming,” she says.
And don’t forget, you’re doing a month’s worth of cooking in one day. “I would be making a bunch of all kinds of different meals (fajitas, meatloaf, casseroles, etc.) that all required chopping, assembling, cooking on the stovetop or oven, and then freezing,” she says. “So I would be in the kitchen all day long and have a huge variety of dinners to freeze.” Then there’s the cleanup and scrubbing of pans. No wonder it took more than 12 hours, even with a friend helping out. “My feet would kill me!” says Stephanie.
Make Once-a-Month Cooking a Snap With a Slow Cooker
About six years ago, Stephanie bought a slow cooker.
“No one taught me how to cook growing up, so I had to teach myself,” she says. “The slow cooker was the perfect beginning point. I never messed up anything in the slow cooker, it gave me confidence to try other things. I could just chop and dump and run the hell out of the kitchen.”
So after experiencing the drawbacks to once-a-month cooking, Stephanie tried a new method using her slow cooker. “Basically, all I was did was chop vegetables and assemble ingredients,” says Stephanie. “I just dumped the veggies into the gallon-sized Ziploc bags, then added the meat, then added the spices.”
She still enjoyed the money-saving benefits of once-a-month cooking, and because she was using her foolproof slow cooker, she had a lot less anxiety leading up to cooking day.
The new method also saved her a lot of time. “Now it takes about two hours,” she says. “Before there was lots of time spent coordinating grocery shopping and tasks, but now I probably spend about 15 minutes getting my grocery list ready. I simply chop and assemble, then immediately freeze. This way cuts the cooking down by 75%, but it’s only slow cooker meals.”
In fact, Stephanie got so efficient with this process that she wrote an ecookbook to show others how to do the same. “I group my recipes by three and include grocery lists in the beginning of the book,” she says.
“If you are making a fresh, made from scratch meal every night, this will blow your mind,” says Stephanie. “It will save so much time.”
How to Make a Freezer-to-Crockpot Meal
To see how freezer-to-crockpot meals work, check out Stephanie’s recipe for orange-beef stew.
Each bag makes about 6-8 servings.
Ingredients:
3 to 4 pounds of chuck roast (or any other kind of roast)
2 cups of beef broth
2 cups of orange juice
1 tablespoon of rapadura sugar
2 tablespoons of soy sauce
2 tablespoons of arrowroot powder/flour
2 tablespoons of minced garlic
1 bunch of scallions
2 sweet potatoes, cut into 1-inch cubes ( I scrub them good, but leave the skins on)
salt and pepper to taste
Directions
1. Label 1 one-gallon freezer bag.
2. Chop sweet potatoes and scallions, then add to freezer bag.
4. Mix well, then lay bag flat and place in freezer.
5. Day of cooking, add contents of freezer bag, roast, 2 cups of beef broth, salt, and pepper to slow cooker. Cook on low for 8 hours or high for 4 hours.
6. Serve with fresh salad and sourdough bread, if you have it.
Of course, this once-a-month method isn’t for everyone. “Some people don’t like to have slow cooker meals for most of the week,” she says. “So the other [once-a-month cooking method] is perfect for a wider variety of meals. But for me, this was a way to make a month’s worth of meals that were actually healthy in just two hours. I don’t use canned condensed soup or processed ingredients, so even though I am just chopping, assembling, and dumping into my slow cooker, I can say I made dinner from scratch!”
And even Stephanie doesn’t eat crockpot meals every day. “I usually make one dinner a week fresh, based on what’s in season and inspires me,” she says. “Then we usually go out to eat once a week, too.” Personally, I could see myself having a few of these frozen meals in the freezer, just for those days when I don’t feel like cooking. But what do you think? Is this something you would try?
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Do you enjoy spending your hours at work in the office, or do you like to be outside? Do you find it fun and exciting when a deal is done, or are deals just more busy work for your day?
If any of those questions have got stuck on repeat in your head, then these real estate investment trusts might be a good career path for you.
The short answer: Real estate investment opportunities are plentiful and they come with varying degrees of risk and reward depending on what you’re looking for.
I know from experience that real estate investment trusts can be a good career path.
So if real estate investing sounds like something that might be right up your alley, keep reading!
What are Real Estate Investment Trusts?
Real Estate Investment Trusts, or REITs, are a type of investment that receive tax concessions from the government. This is because they are designed to promote the development and growth of the real estate industry.
Investors can put their money into diverse projects, such as hospitals, schools, warehouses, and hotels.
In addition, REITs are publicly traded companies that buy, sell, and operate cash flow-producing commercial real estate. There are some privately traded REITs as well.
Why REITs as an Investment?
REITs have many investors who make up their stock portfolio. These can be individuals such as retail investors like you and me or other businesses.
What’s more, is that REITs are trusts similar to mutual funds which offer stability for both short-term and long-term investments in property assets.
Finally, REITs offer investors a reasonable return on investment.
What are the different types of real estate investment trusts (REITs)?
Real estate investment trusts, or REITs, are a type of security that allows people to invest in real estate without actually having to own any property. They are similar to mutual funds, with the exception of their working procedure.
There are two major types of REIT: equity and mortgage. Each type has its own specific benefits and drawbacks.
Equity REITs
Equity REITs are the most common type of REIT and they generate their revenue primarily through rents, not by reselling properties. This makes them a relatively stable investment option and they are often used as a way to diversify an investor’s portfolio.
Mortgage REITs
Mortgage REITs are a type of real estate investment trust (REIT) that invests in mortgage-backed securities. They are similar to other types of REITs, but they tend to have a higher yield as they earn their income from the interest margin on the mortgages they own.
This makes them potentially sensitive to interest rate increases as it could reduce the spread between what they earn on loans and what they pay out in funding costs.
Hybrid REITs
Hybrid REITs use a combination of the two strategies. They own properties like equity REITS and use the money from investors to purchase mortgages like mortgage REITs.
How to Buy Real Estate Investment Trust
Real estate investment trusts, or REITs, are a type of security that allows investors to purchase shares in a company that owns and manages income-producing real estate.
There are three types of REITs: publicly traded, public non-traded, and private.
Publicly traded REITs are the most common and are listed on major stock exchanges. They offer liquidity and transparency but also come with higher risk.
Public non-traded REITs are not listed on exchanges but offer more liquidity than private REITs.
Private REITs are not available to the general public and have less liquidity than both publicly traded and public non-traded REITs. Private REITs can be sold only to institutional or accredited investors.
Pros and Cons of Investing in Real Estate Investment Trusts
When it comes to making money, real estate is always a sound investment. And with the popularity of real estate investment trusts (REITs), you no longer have to be a landlord or developer to invest in properties.
REITs are becoming increasingly popular because they offer investors diversification and liquidity- two key features that any good investment should have.
But like anything else, there are pros and cons to investing in REITs. Here are some things you should consider before you put your money into this type of trust:
Pros of REITs:
1) Diversification: Real estate is a very diverse asset class, and by investing in a REIT, you’re automatically spreading your risk across many different properties. This helps reduce the volatility associated with stock market fluctuations.
2) Liquidity: A key advantage of REITs is that they’re highly liquid- meaning you can sell your shares at any time without penalty. This gives you the freedom to take profits when the market is doing well or reinvest them when prices are down.
3) Professional Management: When you invest in a REIT, you’re essentially hiring professional property developers and managers to do all the hard work for you. This takes away the hassle of dealing with tenants, repairs, and other day-to-day tasks associated with owning property.
Cons on REITs:
1) No Say in Management: Unlike directly owning property, you have no say in how the REIT is managed. If you don’t agree with the way the managers are running things, there’s not much you can do about it.
2) Taxation: The tax laws surrounding REITs are a bit complicated, so make sure you consult an accountant before investing. In general, taxation is much easier than owning the property yourself, but it’s still something to keep in mind.
3) Fluctuating Values: Just like stocks, real estate prices can go up and down quickly. So if you’re looking for a stable investment that will always give you a return on your money, REITs might not be right for you.
How successful are real estate investors?
Real estate investment is a popular way to make money, but it’s not without its risks.
Those who are successful in this field often have a lot of money or access to money (private money, hard money, bank financing, self-directed IRA).
It can be a career if you’re willing to put in the work, but it’s important to think carefully before making that decision.
Real Estate Career Path
Many different real estate jobs offer high salaries and great opportunities for career growth. Plus you can match your experience to find the best real estate career path.
These jobs offer a variety of opportunities and allow you to work in a wide range of settings.
What are the Requirements of Managing a REITs?
Real estate investment trusts, or REITs, are a type of mutual fund that allow both big and small investors to pool their money together and invest in real estate. REITs offer a variety of benefits to investors, including an opportunity for capital appreciation as well as a strong income stream.
In order to qualify as a REIT, they must be registered with the SEC and meet certain other requirements.
1. Managed by Board of Directors or Trustees
In order to be a REIT, the company has to appoint a board of directors or trustees. The board is responsible for making sure the REITs comply with the regulations set by law and also exercise their fiduciary duties. Furthermore, the board approves important decisions such as changes in investment strategies, acquisitions, and dispositions.
2. Taxable Income Paid to Investors
One of the key requirements for managing a REITs is paying out at least 90% of its taxable income to the investors. This leaves limited room for the manager to use the REITs’ income for their own benefit and also minimizes taxes. As a result, it is crucial that a REITs manager has a strong understanding of tax laws and can effectively communicate with the investors.
3. Gross Income Generated from Real Estate Investments
In order to be a REIT, an organization’s income must come from at least 75% of its total assets in real estate. The other 25% may be invested in cash, securities, and other assets. This allows the company to grow without having to worry about being classified as a security corporation.
4. Number of Shareholders or Investors
Another requirement for managing a REIT is that there must be at least 100 investors and shareholders. In addition, no one shareholder can hold more than 50% of the shares (at least). This protects the interest of all shareholders and ensures that no one person or entity can control the REIT.
How to get started in the real estate investment trusts industry
There are many different ways to get started in the real estate investment trusts industry.
There is no one-size-fits-all answer when it comes to starting a career in this field. Every individual has their own strengths and weaknesses that they need to take into account.
One way is to start as an intern or apprentice and then work your way up the ladder.
You could get your business degree and find a career in REITs.
Another option is to become a real estate agent and specialize in commercial real estate.
There are many online courses and programs that can teach you about the industry, and there are also many books on the subject.
Whatever route you decide to take, remember that it’s important to do your research and learn as much as you can about the real estate investment trusts industry before jumping in headfirst.
How to Get Started as an Investor in the Real Estate Investment Trust industry
Real estate investment trusts, or REITs, can be a great way to invest in property and achieve your financial goals. However, in order to be successful, you will need cash to be able to invest in the REIT.
In addition, the cash must not be needed in the recent timeframe.
My favorite REIT platforms are:
What skills do you need to be successful in real estate investment trusts?
This section is specifically for those wanting to know… is real estate investment trusts a good career path?
First and foremost, you will need to have a degree in finance or another relevant discipline. This qualification will give you the basic analytical skills required for success.
In addition, experience in real estate is essential; it is one of the most complex and fast-paced industries around.
You will also need strong marketing skills. REITs are all about generating income through rent or capital gains, so you need to know how to market properties effectively.
Finally, good communication and people skills are important too; after all, you’ll be dealing with clients and tenants on a regular basis.
If you possess these skills, then real estate investment trusts could be the perfect career path for you!
In fact, if you keep using these good excuses to miss work, then a job change is probably needed.
The future of the real estate investment trusts industry
The real estate investment trusts (REITs) industry is rapidly growing and changing. In fact, REITS account for 2.9 million direct jobs (source).
As the world progresses, so does this industry, with new opportunities and challenges arising constantly. REITs offer a unique career path for those who are passionate about real estate and interested in making money.
Money should not be an issue in this sector, as REITs offer a rewarding career path for those who are willing to invest in it.
Check out the best paying jobs in real estate investment trusts.
Career Options within REITs
REITs offer the opportunity to be paid as an investor or career within the industry. Pay can vary depending on the company and its structure; however, most companies within this sector pay well.
If you work for a REIT, you can learn about investing in the real estate industry by being a part of it–an invaluable experience if you’re looking to invest personally into real estate yourself one day.
As the industry grows, so does the need for new people to enter it; companies are constantly looking for new people. In fact, they typically add 555,000 jobs per month (source).
Within the real estate investment trusts industry, there are various career paths that one can take.
Acquisitions
One common job within the REIT industry is acquisitions; which involves buying or selling real estate assets. This position requires a good understanding of the market and the ability to make quick decisions.
Analysts
In the real estate investment trusts (REITs) industry, analysts typically start out earning a salary of around $80,000 per year. With experience, they can move up to a management or executive role and earn a six-figure salary. Additionally, there are many opportunities for career growth in the REITs industry as it continues to grow.
Property Developer
In the real estate investment trusts (REITs) industry, the developers are the team responsible for building new projects from scratch. They identify potential investments, obtain the necessary permits and funding, and manage construction until completion.
This is an important role in the REITs industry as it drives expansion and innovation.
Property Managers
Property managers are famous for getting things done, and they are essential members of any REIT team.
There is no standard education background necessary for becoming a property manager; however, you need skills in project management and construction management.
Real Estate Agents
Agents typically earn more in commissions than their peers working in traditional real estate brokerages, making this a lucrative career path to consider.
Which real estate career makes the most money?
Real estate is a great way to invest and grow your money.
There are a variety of different ways to get involved in real estate, but one of the most popular ways is through real estate investment trusts (REITs).
REITs allow you to invest in a portfolio of properties without having to go out and find them yourself. This can be a great way to get started in real estate investing and build your wealth over time without day-to-day management.
Turn to Real Estate Career Pathway
Real estate investment trusts (REITs) are a good career pathway if you want to come up with better investment strategies. They can provide opportunities to learn about the market, make contacts and develop skills. However, it is important that you reflect on what skills you have, your resources, and where you align before entering this field.
There is a lot to consider when making the decision whether or not to pursue a career in real estate.
It is important to do your research, reach out to people in the industry, and reflect on what you’ve learned. Only then can you make an informed decision about your future.
It ultimately comes down to what you want and what you’re willing to do.
If real estate is your passion, then go for it!
But make sure you do your research and understand the risks involved. There’s no right or wrong answer, but be sure to weigh all of your options before making a decision.
Know someone else that needs this, too? Then, please share!!
FHA loans were used to close 38 percent of all home purchase mortgages, including 60 percent of all African-American and Hispanic home purchases, during the nine-month period ending in June 2010.
The FHA’s single-family insurance program also accounted for nine percent of all refinance loans during that time period.
And recently originated loans actually boosted the FHA’s capital resources by $1.5 billion since last year to $33.3 billion, their highest level ever.
Unfortunately, loans originated prior to 2009 continue to be the downfall of the FHA, namely so-called “seller-financed down payment assistance loans,” which have already chalked $6.6 billion in losses.
They’re ultimately expected to cost the FHA $13.6 billion, which is why they were eventually banned.
In fact, without these loans, the FHA’s capital ratio would have remained above the congressionally mandated two percent threshold.
Now the FHA’s capital ratio is around .50 percent, and is expected to near two percent in 2014 and finally exceed the statutory requirement in 2015.
Recent Changes Should Save the FHA
That’s due in part to recent changes made at the FHA, including the introduction of a minimum credit score (500) and higher insurance premiums.
Over the past year, the FHA insured $319 billion in single-family mortgages for 1.75 million households, including 882,000 first-time homebuyers.
Additionally, it helped 450,000 borrowers avoid foreclosure through loss mitigation actions, and provided refinance loans to 556,000 borrowers, savings households an average of $140 a month on mortgage payments.
An FHA loan allows borrowers to put down as little as 3.5 percent to obtain financing, making it a popular choice for prospective homeowners these days.
As part of an agreement between HSBC and the Justice Department, HUD, the CFPB, and 49 state attorneys general (and DC’s), $470 million will be paid out to settle mortgage origination and servicing/foreclosure abuses.
The Justice Department noted that the settlement mirrors the $25 billion National Mortgage Settlement (NMS) agreed upon back in February 2012. The five largest mortgage servicers were part of that settlement, but HSBC was not.
This settlement is the result of negotiations that took place after the announcement of the NMS in which HSBC was presumably found to have taken part in similar abusive mortgage practices.
The agreement resolves violations related to HSBC’s so-called “deficient mortgage loan origination and servicing activities.”
The settlement will be overseen by Joseph A. Smith Jr., who is also the independent monitor of the NMS.
Like many other large banks at the time, HSBC was likely accused of underwriting faulty mortgages and then quickly foreclosing on the very same borrowers.
The bank shut its wholesale subprime lending arm Decision One in 2007, ceased wholesale and correspondent lending in 2008, and shuttered its retail brands HFC and Beneficial in 2009.
Nearly $60 Million in Cash Payouts to Affected Borrowers
Some $40.5 million of the proceeds will go to the settling federal parties, while another $59.3 million will be deposited into an escrow fund managed by the states in order to make payments to borrowers who lost their homes to foreclosure from 2008 to 2012.
It appears that homeowners in New York State were most affected by HSBC’s actions, with an estimated 136,000 mortgages accounting for 31% of HSBC’s overall loan portfolio.
In California, roughly 7,500 borrowers whose mortgages were serviced by HSBC and eventually lost to foreclosure will be eligible for a payment.
In a press release, California Attorney General Kamala Harris said eligible borrowers would be contacted about how to qualify for payments (e.g. claim forms in the mail), though it may not hurt to be proactive and reach out as well.
The amount of the payment will be dependent on how many borrowers actually file claims. California borrowers are expected to be eligible for around 10% of the funds.
$370 Million in Relief for Existing Homeowners
The bulk of the money, $370 million, will be allocated to consumers affected by the bank’s lending practices during the housing boom and subsequent bust that still own their homes.
By July of this year, HSBC will complete the relief by taking the following actions:
– Reducing the principal balance on mortgages for borrowers who are at risk of default – Reducing mortgage interest rates – Refinancing of underwater mortgages – Forgiving forbearance – Other non-specified forms of relief
Additionally, HSBC will be required to improve their servicing standards by doing the following:
– Making sure a foreclosure is a last resort – Restricting foreclosure while considering a loan modification – Implementing procedures and timelines for loan mods – Providing homeowners the opportunity to appeal denials – Creating a single point of contact for borrowers seeking information
Per usual, this agreement doesn’t preclude borrowers from pursuing their own lawsuit against the bank, nor does it prevent state and federal authorities from pursuing criminal enforcement actions.
A year may seem like a short period of time, but you can accomplish a lot, including developing a one-year savings plan that can help you hit some significant financial goals. A plan that lasts 365 days can give you, as an earner, the opportunity to save and feel a sense of accomplishment.
In other words, a year from today, you could be richer than you are now, or potentially have a better emergency fund. Or, if you are diligent, you may be on your way to funding a European vacation or finally redoing that dated bathroom.
Of course, creating a plan that will work for your unique situation does require a bit of upfront effort. That’s exactly what you’ll learn when you read on.
Decide What are You Saving For
Before you even glance at your budget, it’s important to get clear about exactly what you’re saving for. Creating a specific objective can give you the information you need to create a solid plan to make it happen — it might also help motivate you to stick to that plan once you’ve made it.
cost of living to settle on something that will likely be achievable in just a year. For instance, maybe this year you want to stash cash for one of the following:
• A vacation you’ve been dreaming of for years (pending pandemic complications, of course).
• A down payment for a new car.
• A down payment (or significant portion thereof) for a new home.
• Long-awaited home improvements.
• Putting extra money away for retirement.
You may be familiar with the idea of SMART goals — that objectives are most easily met when they’re Specific, Measurable, Achievable, Relevant and Time-bound.
In the world of one-year savings plans, that means coming up with a specific dollar figure for your goal and making sure it’s relevant enough to your life to keep you motivated.
You probably also want to consult your earnings and expenses to ensure that it’s a realistic goal; it’s going to be a lot harder to save up $5,000 if you’re making $30,000 than it is if you’re making $60,000. (You’ll learn more about budgeting and cuts in just a second.) Divide your total goal by 12 to see how much it would require you to set aside each month, which will give you better insight as to how achievable it really is.
Once you’ve got your goal worked out, write it down and post it in a prominent place in your home, like on your refrigerator. Studies have shown that you’re more likely to reach your financial goals if you take this simple action, so it’s worth picking up your pen!
How To Create a One-Year Saving Plan You’ll Stick To
Now that you’ve got a goal in mind, you still need to figure out how to turn it into a reality. Here are some ideas on how you could do it..
Start with Your Existing Budget
You can’t make any big changes to your finances if you don’t know what they look like in the first place. And that means the first step toward revamping your budget is to take a closer look at how it looks right now.
If you don’t have a budget yet, take a month to track exactly where all your money is going. Be sure to include both regular, fixed expenses, like rent and insurance, as well as more flexible, discretionary spending like food and transportation. Be brutally honest. Tacking every cent of fixed vs. variable expenses will give you the best chance at figuring out how to spend less.
Which leads us to our next step…
Get Creative with Budget Cuts
There are really only two ways to save money: make more of it, or spend less of it. And while asking for a raise or starting a side-hustle might be smart moves, you only have so much leeway with your boss and time in your day. In other words, you likely have more control of how much you spend than how much you earn.
Since this is an elevated, short-term savings goal, you might be able to make more substantial cuts than you would if you were planning on implementing this savings strategy for the rest of your life. There are simple ways to cut down monthly expenses and save money daily. For instance, could living without streaming services be possible? Or could you quit dining out for one month and then vow not to buy any new clothes the next? A challenge like that can engage some people’s competitive spirit.
Even without these measures, how can you dial down your own living expenses? You might quit buying overpriced, pre-packaged convenience foods or find ways to get creative with ramen. Maybe you can start doing your own oil changes rather than taking the car in for service. Think of this as an opportunity to learn some new life skills while also stashing some extra cash!
Recommended: How to Save Money on Gas
Regardless of how you get there, your goal is to be able to set aside the monthly amount you’ll need to meet the one-year savings goal you wrote down and pinned to your bulletin board. So get out your calculator, and don’t be afraid to get creative.
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Make a Plan for Your Investments
No matter how much money you save, it won’t go as far as it could if you just stash it under your mattress. Figuring out where to put your savings is an important step in your planning.
Different kinds of savings accounts are used to help individuals save for different goals.
• For example, a long-term goal like retirement may be best suited for an investment vehicle like a Roth IRA, which offers some tax advantages.
• For shorter term goals like starting an emergency fund, an account that offers more flexibility and has less restrictions, like a high yield savings account, may be a better option.
Keep it Simple
Having a plan is one thing. Sticking to it is another. But if you keep a simple savings plan, you’ll stand a much better chance of actually making it work.
automating your finances by setting up recurring transfers can direct a portion of each paycheck into your savings account. This makes saving seamless — and ensures you don’t get stuck in that all-too-familiar situation at the end of the month where you accidentally spent what you intended to set aside.
And building in systemic cuts that you don’t have to think about (like ditching that monthly subscription box, for example) is a lot easier than poring over the coupon book every Sunday.
Recommended: Money Management and Setting Financial Goals
The Takeaway
Like any money goal, your one-year savings plan is going to take some grit to get to. But having the right tools at your disposal does make the process a whole lot less painful. Whether that means choosing one of the many budgets out there to find one that suits your style or using an app your financial institution provides, there are ways to enhance your money management.
A SoFi Checking and Savings Account offers you an easy birds’-eye view of your finances, and its Vaults feature allows you to set aside savings for specific goals and purposes.
Best of all, there are no account fees, you’ll benefit from a competitive annual percentage yield (APY), which can help your money grow faster.
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Save more, spend smarter, and make your money go further
Many Americans are living paycheck to paycheck and struggling to make ends meet. A paycheck has much more information than simply take home pay, and understanding your pay stub is the first step to good money management. Get familiar with what a pay stub means so you can take control of your finances.
Save more, spend smarter, and make your money go further
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Investment advisors help investors figure out their goals, create financial plans, and put those plans into action. There are a lot of them out there, too, meaning that finding the right professional for you or your family may seem daunting. But finding the best investment advisor for you can be a fairly painless process.
You’ll need to start with some basics, though, by learning the difference between an investment advisor and a registered investment advisor, what to look for when you hire an advisor, and more.
What Is an Investment Advisor?
An investment advisor is an individual or company that offers advice on investments for a fee. The term itself — “investment advisor” — is a legal term that appears in the Investment Advisers Act of 1940. It may be spelled either “advisor” or “adviser.”
Investment advisors might also be known as asset managers, investment counselors, investment managers, portfolio managers, or wealth managers. Investment advisor representatives are people who work for and offer advice on behalf of registered investment advisors (RIAs).
What Is a Registered Investment Advisor (RIA)?
A registered investment advisor, or RIA, is a financial firm that advises clients about investing in securities, and is registered with the Securities and Exchange Commission (SEC), or other financial regulator. While you may think of RIAs as people, an RIA is actually a company, and an investment advisor representative (IAR) is a financial professional who works for the RIA.
That said, an RIA might be a large financial planning firm, or it could be a single financial professional operating their own RIA.
An RIA has a fiduciary duty to its clients, which means they must put their clients’ interests above their own. The SEC describes this as “undivided loyalty.” This is different from non-RIA companies whose advisors are often held only to a suitability standard, meaning their recommendations must be suitable for a client’s situation. Under a suitability standard, an advisor might sell a client products that are suitable for their portfolio but which also result in a sales commission for the advisor.
RIAs generally offer a range of investment advice, from your portfolio mix to your retirement and estate planning.
What’s Required to Become a Registered Investment Advisor?
The following steps are required to become a registered investment advisor (RIA).
• Pass the Series 65 exam, or the Uniform Investment Adviser Law Exam, which is administered by the Financial Industry Regulatory Authority (FINRA). Some states waive the requirement for this exam if applicants already hold an advanced certification like the CFP® (CERTIFIED FINANCIAL PLANNER™) or CFA (Chartered Financial Analyst).
• Register with the state or SEC. If an RIA has $100 million in assets under management (AUM), they must register with the SEC — though there are sometimes exceptions to this requirement. If they hold less in AUM, they must register with the state of their principal place of business. This requires filing Form ADV.
• Set up the business. These steps require making a variety of decisions about company legal structure, compliance, logistics and operations, insurance, and policies and procedures.
How to Choose an Investment Advisor
Finding the right investment advisor is about finding the right fit for you. While personal preference plays a part, there are a variety of other things you might consider when you’re searching:
Start Local
Look to helpful databases of financial professionals that can help you pinpoint some advisors in your area. Here are a few to consider:
• Financial Planning Association. Advisors in this network are CERTIFIED FINANCIAL PLANNERS™ (CFP®s) and you can search by location, area of specialty, how they’re paid and any asset minimums that may exist.
• National Association of Personal Financial Advisors. All advisors in this database are fee-only financial planners, meaning they receive no commissions for selling products.
• Garrett Planning Network. All advisors in this network charge hourly.
Get Referrals
One of the best ways to find a financial professional is to ask friends, family, and acquaintances if they’ve worked with someone they can recommend. While there are ways to build wealth at any age, it may be beneficial to ask people who are in a similar financial situation or stage of life. For instance, if you’re relatively young with a lot of debt and very little savings, you may not want the same investment advisor who’s working with wealthy retirees.
Ask About Credentials
Ask investment advisors what certifications they have, what was required to get the certification, and whether any ongoing education is necessary to keep it. Some certifications require thousands of hours of professional experience or passing a rigorous exam, while others may only require a few hours of classroom time.
Other certifications are geared toward investors at a specific life stage or with specific questions. The Retirement Income Certified Professional (RIPC) certification, for instance, focuses on retirement financial planning. Those with a Certified Public Accountant (CPA) certification are probably good sources for tax planning.
Check Complaint History
Depending on who oversees the advisor or the firm, you should be able to check whether there are complaints on record. If FINRA provides oversight, you can research them on FINRA’s BrokerCheck tool. If the SEC oversees them, the SEC has an investment advisor search feature to find information on the advisor and the company. Remember: One complaint might not be a red flag, but multiple complaints might give you pause.
Find Out About Fees
Investment advisors may be paid, or charge fees, several different ways. They may charge a percentage of assets under management, meaning that the fee will depend on the assets they’re managing for you. For example, if the fee is 1% of assets under management and you’re having them manage $500,000, you’d pay $5,000 annually for their services.
Others may charge an hourly fee or a flat project fee for specific services. There are also advisors that are paid commissions from the products that they sell to clients. It’s important to understand how an investment advisor makes money and how much you’ll pay in fees each year, and then decide what you’re comfortable with.
Get Details on Their Work Style
Communication and working style may be just as important as credentials and expertise. For instance, how often do they want to meet with you? Would you be working with them directly or with a wider team of people? Do they like to communicate via phone call, email, or text? This is something else to consider.
Take a Test Drive
Many advisors will offer a phone consultation or in-person visit to see if you’re a good fit. You may want to take them up on it. Finding the right investment advisor is as much a matter of chemistry as credentials.
Questions to Ask an Investment Advisor Before Hiring Them
It can be a good idea to find out as much as possible about an investment advisor so you can make an informed decision. Here’s a list of questions you might want to ask:
• What are your qualifications?
• What type of clients do you typically work with?
• Are you a fiduciary?
• How are you paid? And how much will I be charged?
• Do you have any minimum asset requirements?
• Will you work with me, or will members of your team work with me?
• How (and how often) do you prefer to communicate? (Phone, email, text?)
• How often will we meet?
• What’s your investment philosophy?
• What services do you provide for your clients?
• How do you quantify success?
• Why would your clients say they like working with you?
The Takeaway
An investment advisor can help you think about investing for the future, plan to save enough for all your goals, and understand how to get it all done. Finding one isn’t hard, but it does take time and some research to connect with an investment advisor that meets your expectations and feels like a good match.
With that in mind, getting the right advice can be critical even before you start investing. Someone with experience in the markets helping guide you can be invaluable.
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From arts to entertainment, these college towns in Iowa are the ideal place for students and recent grads alike to call home.
Known as the Hawkeye State, Iowa is home to some of the best college towns in the United States. These towns provide students with an excellent mix of academics, social life and entertainment options. In this article, we will explore the best college towns in Iowa and discuss what makes them so unique. Let’s embark on a journey through these scholastic sweet spots and see what makes them stand out from the crowd.
The quintessential college town, Iowa City is home to the University of Iowa, a prestigious institution known for its Writers’ Workshop. Students and literature enthusiasts alike can appreciate the rich literary history and vibrant creative community that surrounds the campus.
The city boasts several events and attractions, including the Iowa City Book Festival, the Iowa Avenue Literary Walk and the UNESCO City of Literature designation. Outside of academics, Iowa City offers an array of entertainment options, including live music, eclectic eateries and a bustling downtown area.
Hancher Auditorium, Englert Theatre and FilmScene are popular venues for performances, while the pedestrian-friendly downtown is perfect for students looking to unwind via shopping, dining and hitting the town with friends for a full weekend of fun under the Iowa sun.
Ames is another one of the best college towns in Iowa, home to Iowa State University, a prominent research institution. Students at Iowa State enjoy a picturesque campus with ample green spaces and a touch of nature that set it apart from other college towns in the state.
The vibrant Main Street provides plenty of shopping and dining opportunities, while the historic Campustown district is home to a lively social scene for students. In addition, the university’s Reiman Gardens and the nearby Ledges State Park make Ames an ideal destination for those who need a little time outdoors each week to stay sane.
For art enthusiasts, the Octagon Center for the Arts and the Brunnier Art Museum provide an ample dose of culture. Sports fans can catch a game at Jack Trice Stadium or Hilton Coliseum, where Cyclone pride is always on full display.
Des Moines, the capital of Iowa, is home to several colleges and universities, including Drake University, Grand View University and Des Moines University. This bustling urban hub offers students a unique blend of modern metropolitan life and classic college town charm.
Des Moines has a thriving culture, with attractions like Pappajohn Sculpture Park and the Des Moines Performing Arts Center. The city also offers plenty of entertainment options, including the Downtown Farmers’ Market, the lively East Village district and the historic Court District, which hosts events like the World Food & Music Festival.
Students in Des Moines have access to an extensive network of bike trails, making it easy to explore the city and its picturesque parks. Furthermore, the city’s affordable cost of living and internship opportunities make it an attractive option for college students and recent grads.
Cedar Falls is home to the University of Northern Iowa, a comprehensive institution that offers a wide range of academic programs. The picturesque college town has a charming downtown area and a close-knit community that makes students feel right at home from day one.
Main Street is lined with historic buildings, boutique shops and cozy cafes, while College Hill offers a bustling nightlife for students. The Gallagher Bluedorn Performing Arts Center showcases a variety of performances and the Hearst Center for the Arts provides a creative outlet for art enthusiasts.
Outdoor enthusiasts can enjoy the Cedar Valley Trails, a network of more than 100 miles of paved trails perfect for biking, walking or jogging. Additionally, the nearby George Wyth State Park and Hartman Reserve Nature Center offer ample opportunities for hiking, canoeing and reconnecting with your wild side.
Located along the Mississippi River, Dubuque is home to three institutions of higher learning: Loras College, Clarke University and the University of Dubuque. This historic riverfront city offers students a unique blend of natural beauty, cultural attractions and a rich history.
The city’s revitalized downtown area, known as the Millwork District, features a variety of shops, art galleries and restaurants. Five Flags Center and The Grand Opera House are popular venues for live performances and events. In addition, students can explore Dubuque’s history at the National Mississippi River Museum & Aquarium and the Dubuque Museum of Art when they need a little extra inspiration.
Grinnell, home to the prestigious Grinnell College, is a small college town with big charm. The close-knit community provides a welcoming atmosphere, making it an ideal place for students seeking a more intimate college experience.
Downtown Grinnell offers a variety of unique shops, restaurants and cafes, as well as the historic Strand Theatre, which screens classic and independent films as well as new releases. The Grinnell Arts Center and Faulconer Gallery on the college campus showcase a variety of art exhibitions from seasoned professionals and students alike.
Nature lovers will appreciate the town’s extensive trail system, including the Rock Creek State Park and Ahrens Park, perfect for hiking, biking and so much more.
Cedar Rapids, Iowa’s second-largest city, is home to Coe College, Mount Mercy University and Kirkwood Community College. This thriving cultural center offers students a diverse range of entertainment and educational opportunities.
The downtown area is buzzing with activity, from the NewBo City Market and the Czech Village to the vibrant arts scene found in the Cedar Rapids Museum of Art. Theatre Cedar Rapids hosts exceptional live performances, while the National Czech & Slovak Museum & Library offers a glimpse into the city’s rich heritage.
These Iowa college towns are where it’s at
Iowa’s college towns provide students with a rich variety of experiences, ranging from intimate small-town settings to bustling urban hubs. Each town offers a unique blend of academics, culture and entertainment, making them some of the best college towns in Iowa. No matter which city you choose, you’re sure to find a thriving community and memorable college experience in the Hawkeye State.