Avoiding Shopping Temptations
by Takara Alexis
According to research from Stanford University, more than one in 20 adults are compulsive shoppers, buying objects they don't need, use, or even want. That's because shopping, once devoted to gaining necessities, has come to fill a lot of emotional needs-it's entertainment, a bonding activity, a sport, a way of self-expression, and, quite often, a means of comfort.
Using brain scans, researchers have shown that the nucleus accumbens, an area linked with pleasure and reward, lights up as people consider a purchase, while the insula, a structure that plays an important role in pain, is stimulated when they think about the cost. The two brain areas compete with one another to decide whether you will buy something.
Buying a lot in one store can lower your sensitivity to the pain of cost. You hit the what-the-heck effect: You've spent $200; what's another $20 for a T-shirt? Try going to various stores for different purchases.
A retail tactic we should be wise to, is buying something for $29.99 because we tend to discount it to $20 instead of $30. The anticipation of getting a good deal is what drives us toward the cash register, not the object itself-and as a result, we end up with stuff we don't particularly want. If paying for goods causes pain in the brain, credit cards are aspirin. Unfortunately, cards also create bigger headaches later on. Using cash is the number one antidote to overspending, according to experts. If you do pay with a credit card, beware of the trap I've already got this debt, so it doesn't matter if I add more on.
The mall has been blamed for killing America's main streets, taking business away from mom-and-pop shops. But now malls themselves could be on the endangered list. But with so many of us now depending on these places to socialize, de-stress, even exercise, what are we able to do when the local mall is shuttered?
When you see a range of prices, it's as if you were coming from a dimly lit room into a bright one; at first you're not used to the light, but you adjust fast. We don't think about how what money is worth to us; we just make a relative decision. If you're deciding on an item that comes in numerous models, give yourself a time limit. When you are down to the final two options, toss a coin, and while it's in midair, try to feel how you want it to fall-that's your answer.
Thursday, May 26, 2011
Monday, May 23, 2011
Estate Planning: Gifting
Estate Planning: Gifting
by Takara Alexis
If you're like most Americans, you like to give gifts nearly as much as you like to receive them. Luckily, if you're serious about estate planning there is a helpful technique called gifting that can potentially save your family, friends and heirs a lot of cash on estate taxes in the future.
Gifting is exactly what it sounds like: a gift. It's a gift that can be given to a spouse, a family member or a friend. It's a technique that has been used commonly by people to reduce the value of their estate and can be done in different ways.
Every person in the U.S. can give assets or property of up to $12,000 a year. That amount applies to each individual they gift to. This gift can be given to pretty much anyone without paying any gift taxes, as long as the amount gifted stays under the limit. You are able to give gifts, tax-free, to as many people as you wish. You can also gift an unlimited amount of property to charity and your spouse.
By law, you can gift a spouse unlimited amounts of property each year without paying any taxes. This isn't something that is suggested however, because it just moves the larger estate burden onto your spouse. One helpful technique is to team up with your spouse and gift to specific individuals, such as children and grandchildren. When you and a spouse get together and gift, which the IRS has termed "gift splitting," you can give up to $24,000 to each individual without paying any gift tax. This allows you to quickly reduce your estate by a large amount.
Gifting is also a really good way to give assets to your family that will end up appreciating in value. That way, you not only reduce the amount that may be taxed in your estate, but you lower the amount that your asset would have grown to by the time you passed away.
While estate planning is often put off because of the uncomfortable topic of death, it may be one of the most important financial planning tools available. It might also be one of the most crucial ways to save your family from heartache. In the end, gifting allows you to take advantage of tax savings and choose the way you want to be remembered, which is truly a gift that will keep on giving.
by Takara Alexis
If you're like most Americans, you like to give gifts nearly as much as you like to receive them. Luckily, if you're serious about estate planning there is a helpful technique called gifting that can potentially save your family, friends and heirs a lot of cash on estate taxes in the future.
Gifting is exactly what it sounds like: a gift. It's a gift that can be given to a spouse, a family member or a friend. It's a technique that has been used commonly by people to reduce the value of their estate and can be done in different ways.
Every person in the U.S. can give assets or property of up to $12,000 a year. That amount applies to each individual they gift to. This gift can be given to pretty much anyone without paying any gift taxes, as long as the amount gifted stays under the limit. You are able to give gifts, tax-free, to as many people as you wish. You can also gift an unlimited amount of property to charity and your spouse.
By law, you can gift a spouse unlimited amounts of property each year without paying any taxes. This isn't something that is suggested however, because it just moves the larger estate burden onto your spouse. One helpful technique is to team up with your spouse and gift to specific individuals, such as children and grandchildren. When you and a spouse get together and gift, which the IRS has termed "gift splitting," you can give up to $24,000 to each individual without paying any gift tax. This allows you to quickly reduce your estate by a large amount.
Gifting is also a really good way to give assets to your family that will end up appreciating in value. That way, you not only reduce the amount that may be taxed in your estate, but you lower the amount that your asset would have grown to by the time you passed away.
While estate planning is often put off because of the uncomfortable topic of death, it may be one of the most important financial planning tools available. It might also be one of the most crucial ways to save your family from heartache. In the end, gifting allows you to take advantage of tax savings and choose the way you want to be remembered, which is truly a gift that will keep on giving.
Thursday, May 19, 2011
Pet Health Insurance
Pet Health Insurance
by Takara Alexis
For most of us, going without health insurance is unimaginable. We wouldn't even think about risking our families' well being without it. So, why not protect other family members-our pets?
Pet health insurance policies are pretty much like human health insurance policies, protecting against illnesses, accidents and emergencies. They offer various plans based on desired coverage. Premiums can be paid each month, some as low as $20 a month. Benefit limits, deductibles, and the amount of coverage will vary based on the policy premium you decide on.
Many policies include coverage for medical treatments such as lab fees, x-rays, pet medications, and surgeries. More exclusive policies cover a bigger range of average services such as physical exams, teeth cleaning, vaccinations, spay/neuter surgeries, and more.
Unlike your HMO, pet health insurance differs from your common human health insurance in its simplicity. You see a licensed veterinarian of your choice. His or her veterinary staff fills out the proper insurance form. You then pay for service at the time of your visit (no-co pays). Soon after, you are reimbursed by your insurance provider.
There are a couple of things to consider when choosing the best pet insurance plan. Just like with various other insurance products, all insurers aren't created equal. In addition to affordability it's important to choose a quality company that will be around to provide the promised coverage should an emergency arise.
When the price of care gets too expensive all too often the choice is euthanasia. Thanks to the affordability that pet health insurance allows, it no longer has to be that way. For those insured who aren't forced to make that choice, it's well worth it. After all, if something were to happen to your cat or dog, it is nice to be secure in the knowledge that you have provided the best of care, not having based your decision on how much you would have to spend.
by Takara Alexis
For most of us, going without health insurance is unimaginable. We wouldn't even think about risking our families' well being without it. So, why not protect other family members-our pets?
Pet health insurance policies are pretty much like human health insurance policies, protecting against illnesses, accidents and emergencies. They offer various plans based on desired coverage. Premiums can be paid each month, some as low as $20 a month. Benefit limits, deductibles, and the amount of coverage will vary based on the policy premium you decide on.
Many policies include coverage for medical treatments such as lab fees, x-rays, pet medications, and surgeries. More exclusive policies cover a bigger range of average services such as physical exams, teeth cleaning, vaccinations, spay/neuter surgeries, and more.
Unlike your HMO, pet health insurance differs from your common human health insurance in its simplicity. You see a licensed veterinarian of your choice. His or her veterinary staff fills out the proper insurance form. You then pay for service at the time of your visit (no-co pays). Soon after, you are reimbursed by your insurance provider.
There are a couple of things to consider when choosing the best pet insurance plan. Just like with various other insurance products, all insurers aren't created equal. In addition to affordability it's important to choose a quality company that will be around to provide the promised coverage should an emergency arise.
When the price of care gets too expensive all too often the choice is euthanasia. Thanks to the affordability that pet health insurance allows, it no longer has to be that way. For those insured who aren't forced to make that choice, it's well worth it. After all, if something were to happen to your cat or dog, it is nice to be secure in the knowledge that you have provided the best of care, not having based your decision on how much you would have to spend.
Tuesday, May 10, 2011
Are Index Funds For You?
Are Index Funds For You?
by Takara Alexis
Index funds, are a type of mutual fund, and they are a pretty simple concept in the world of investments. In an index fund, stocks are grouped together from companies included within an index, for instance the S&P 500 or the Dow Jones Industrial Average. The percentage of stock is kept the same as the indexes themselves in an attempt to copy the index. While it's a rather basic concept, it's one that for many has proven to work over time.
The Dow Jones Industrial Average (DIJA) is a price weighted index of 30 of the largest, most widely held stocks traded on the New York Stock Exchange. The S&P 500 is an unmanaged group of securities considered to be representative of the stock market in general.
Whether or not you want to invest in an index fund depends on the type of investor you are. Each person has a distinct style and keep in mind that index funds are different from other mutual funds.
Most mutual funds are actively managed so a fund manager is constantly picking new or different stocks to go into the fund. This active attempt to beat the market is based mostly on timing and choosing the correct stocks and bonds. This could sometimes pay off. Other times it does not. Index funds, on the other hand, are a passive investment meaning they aren't actively managed.
But one of the most attractive parts of index funds comes from the lack of active management. Because they don't demand the same constant administration and attention as an actively managed mutual fund, their expense ratios are usually lower.
Some say if you can not beat a market, join it which is one of the biggest attributes of an index fund. The funds are great for people who wish to follow the market.
So are index funds for you? That relies on your investment style. You should check with a financial professional before investing, and make a decision if index funds fit in with your overall investment strategy. But in the end, index funds offer an alternative way to possibly increase your wealth and achieve your financial goals.
by Takara Alexis
Index funds, are a type of mutual fund, and they are a pretty simple concept in the world of investments. In an index fund, stocks are grouped together from companies included within an index, for instance the S&P 500 or the Dow Jones Industrial Average. The percentage of stock is kept the same as the indexes themselves in an attempt to copy the index. While it's a rather basic concept, it's one that for many has proven to work over time.
The Dow Jones Industrial Average (DIJA) is a price weighted index of 30 of the largest, most widely held stocks traded on the New York Stock Exchange. The S&P 500 is an unmanaged group of securities considered to be representative of the stock market in general.
Whether or not you want to invest in an index fund depends on the type of investor you are. Each person has a distinct style and keep in mind that index funds are different from other mutual funds.
Most mutual funds are actively managed so a fund manager is constantly picking new or different stocks to go into the fund. This active attempt to beat the market is based mostly on timing and choosing the correct stocks and bonds. This could sometimes pay off. Other times it does not. Index funds, on the other hand, are a passive investment meaning they aren't actively managed.
But one of the most attractive parts of index funds comes from the lack of active management. Because they don't demand the same constant administration and attention as an actively managed mutual fund, their expense ratios are usually lower.
Some say if you can not beat a market, join it which is one of the biggest attributes of an index fund. The funds are great for people who wish to follow the market.
So are index funds for you? That relies on your investment style. You should check with a financial professional before investing, and make a decision if index funds fit in with your overall investment strategy. But in the end, index funds offer an alternative way to possibly increase your wealth and achieve your financial goals.
Wednesday, May 4, 2011
Anti-Scam Tips
Anti-Scam Tips
by Takara Alexis
Newspaper obituaries notify a large number of people in a short period of time about the death of a community member. Unfortunately, they also provide a list of potential victims to scam artists and thieves seeking emotionally vulnerable and, during memorial services, physically absent targets.
In the pain and confusion following a spouse's death, you can't be expected to remember websites and phone numbers for organizations that help uncover the unscrupulous. A couple of simple guidelines, however, could help you avoid most of the typical scams.
The most immediate vulnerability will be an empty house. Through an obituary, a thief can ascertain when the family will be away, and with friends and relatives coming and going, neighbors may assume the person going in while the family is gone has permission to do so.
Treat anything from an unknown source with suspicion. Invoices, calls regarding orders for products or services, investment opportunities and claims for money owed might all be scams seeking to part distracted grieving survivors with their money. Pay those bills you know to be legitimate - mortgage, utilities, credit cards, car payments. Place everything else aside. And do not forget that companies that pressure you to make decisions or send cash during a difficult time probably do not have good reasons for doing so.
Consider a checks-and-balances path to decision making, especially with it comes to finances. Ask a family member, friend or trusted advisor such as an accountant, attorney or financial professional to take a look at invoices and other claims before you send money. You will still have power over your money, and you'll have a second opinion from someone you trust.
If you and your spouse did not have existing relationships with an attorney, accountant or financial advisor, do your homework before selecting someone during a time of crisis. Your best source will be referrals from friends, family members and associates. Interview at least two or three before deciding on a professional.
Many experts who work with widows and widowers recommend waiting at least a year to make major, irrevocable decisions such as selling or purchasing a house. Avoid anyone pressuring you to make such a decision within months of your spouse's death.
by Takara Alexis
Newspaper obituaries notify a large number of people in a short period of time about the death of a community member. Unfortunately, they also provide a list of potential victims to scam artists and thieves seeking emotionally vulnerable and, during memorial services, physically absent targets.
In the pain and confusion following a spouse's death, you can't be expected to remember websites and phone numbers for organizations that help uncover the unscrupulous. A couple of simple guidelines, however, could help you avoid most of the typical scams.
The most immediate vulnerability will be an empty house. Through an obituary, a thief can ascertain when the family will be away, and with friends and relatives coming and going, neighbors may assume the person going in while the family is gone has permission to do so.
Treat anything from an unknown source with suspicion. Invoices, calls regarding orders for products or services, investment opportunities and claims for money owed might all be scams seeking to part distracted grieving survivors with their money. Pay those bills you know to be legitimate - mortgage, utilities, credit cards, car payments. Place everything else aside. And do not forget that companies that pressure you to make decisions or send cash during a difficult time probably do not have good reasons for doing so.
Consider a checks-and-balances path to decision making, especially with it comes to finances. Ask a family member, friend or trusted advisor such as an accountant, attorney or financial professional to take a look at invoices and other claims before you send money. You will still have power over your money, and you'll have a second opinion from someone you trust.
If you and your spouse did not have existing relationships with an attorney, accountant or financial advisor, do your homework before selecting someone during a time of crisis. Your best source will be referrals from friends, family members and associates. Interview at least two or three before deciding on a professional.
Many experts who work with widows and widowers recommend waiting at least a year to make major, irrevocable decisions such as selling or purchasing a house. Avoid anyone pressuring you to make such a decision within months of your spouse's death.
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