Alloy Silverstein - Resource - Financial Tips Archive

Archive 2007

12/1/2007 - Do some financial housekeeping for the new year

With the new year fast approaching, now's a great time to assess your household finances and prepare for new opportunities. To help you get started, here are a few suggestions.

11/1/2007 - Are zero interest credit cards a good deal?

Competition among credit card companies is making zero interest credit cards commonplace. But are these cards always a good deal for consumers? Remember that credit card companies aren't in the business of offering something for nothing. Statistically speaking, they know they'll make money on such offers. So those who apply for zero-interest cards need to understand the details behind that great low rate.

10/1/2007 - Avoid these 401(k) mistakes

With traditional pensions going the way of typewriters and eight-track tape players, it’s more important than ever to take charge of your retirement savings. If your employer offers a 401(k) plan, you have a ready-made tool for arriving at a financially secure retirement. Unfortunately, many people don’t contribute even a little to their company’s 401(k) plan. Or if they do contribute, they make mistakes — easily avoided mistakes — that can diminish the potential of this great retirement vehicle.

9/1/2007 - What's smarter? A rent-to-own plan or using your credit card

Should you buy that new washing machine or sofa using a rent-to-own plan? Or should you pay with a credit card?

8/1/2007 - Develop three habits to stay out of debt

Staying out of debt is simple, but it’s not easy. It requires fortitude. It means foregoing impulsive purchases in exchange for long-term financial freedom. Staying out of debt requires that you deny cravings, at least temporarily, for the “must-have” stuff that beckons from every mall, television advertisement, and slick magazine.

7/1/2007 - What you need to know about private mortgage insurance

If you’re in the market for a home, you’ve probably heard of private mortgage insurance or PMI. It’s insurance that protects lenders — not borrowers — if the mortgage goes into default. Lenders generally require PMI if you’re unwilling or unable to make a down payment of at least 20% of the home’s purchase price. Depending on your credit history, your income, the size of your mortgage and other factors, PMI can run from $50 to several hundred dollars a month. After building up equity in your home (in technical terms, when your loan-to-value ratio drops below 78% of the original loan balance), your PMI policy can be cancelled. But building up that much equity, especially with a conventional long-term mortgage, can take a decade or longer.

6/1/2007 - Paying mortgage points: A good idea for the borrower?

Typically, banks and other financial institutions offer borrowers the option of purchasing discount “points” in exchange for lower mortgage rates. Should you buy mortgage points? The answer, of course, depends on your situation. Here’s a primer:

5/1/2007 - Emergency savings � how much is enough?

We all need an emergency fund, but what’s considered “an emergency?” Any unexpected hit to your finances, including layoffs, unanticipated illnesses, and natural disasters. Car insurance premiums and regular home maintenance are (or should be) anticipated, so they’re not emergencies. The same is true of credit card bills for vacations and visits to the dentist’s office. An emergency fund is designed to keep your life intact during temporary setbacks and to help you avoid unnecessary debt.

4/1/2007 - Homeowners: Don't make these insurance mistakes

Catastrophes, thefts, natural disasters, accidents, fires — they happen. If such misfortunes strike, a well-researched and up-to-date homeowner’s insurance policy can keep your family’s finances afloat during trying times. Proceeds from a homeowner’s policy can provide necessary funds to replace your house and belongings. A good policy can also protect against unexpected liabilities. If you’re considering a new homeowner’s policy (or already have one), watch out for some common pitfalls, including the following:

3/1/2007 - Need more retirement income? Check out a reverse mortgage

The boom in housing markets across the country has made many older Americans house-rich and cash-poor. Reverse mortgages provide a way for seniors to tap their home equity for home improvements, health care expenses, and additional retirement income.

2/1/2007 - How to maintain a high credit score

Having a high credit score can save you thousands of dollars in interest costs, and can provide bargaining power when you deal with landlords, insurance companies, cell-phone providers, utilities, and other businesses.

1/1/2007 - Credit cards for college students? Be sure you know the risks

Should a freshman in college have a credit card? Opinions are divided, both among parents and financial advisers. It’s a situation that can work out really well or really badly, depending on the student and the parents.