By Gregory Sessa

If you owned stocks or mutual funds at the start of the 21st century, you no doubt felt the financial pain of the market’s crash. Between the stock market’s peak in March 2000 to its subsequent bottom in October 2002, and then the drop again in 2008 and 2009, the combined market value of companies traded on the New York Stock Exchange and NASDAQ fell tremendously.

While the stock market has recovered to a degree, that’s little solace to those whose portfolios were decimated by the market’s drastic drop. Many consumers who are especially risk averse, such as retirees and those nearing retirement, are wary of ever returning to the stock market, given its inherent risk.

During the same time as the stock market freefall, nearly all consumers who purchased a relatively new type of fixed annuity, called an index annuity, did not lose a dime of their original principal. This prompts consumers to ask, “how is this possible?”

The reason index annuity owners can feel secure about not losing their principal is because 100 percent of the principal in an index annuity is backed by the financial strength of the issuing insurance company. Congress mandates that insurance companies back your money, dollar for dollar, in capital reserves. FDIC insurance in contrast has less that $2 in reserve for every $100.00 in your account! Index annuity owners earn a guaranteed minimum rate of return and potentially can earn more, depending on their annuity’s index linked rate of return.

The issuing insurance company links the index annuity’s interest rate to a select external index. Most index annuities have interest returns linked to the S&P 500 or the Dow Jones Industrial Average and some are linked to other indices. The index-linked interest rate earned is usually a percentage of the growth of the index. It is important to note that index annuities are not securities, nor should they be considered a direct alternative to securities.

Knowing that consumers may occasionally wish to tap the funds in their accounts for emergencies or other reasons, most index annuity issuers allow some sort of annual withdrawal, up to a set amount without assessing withdrawal charges. A feature in the newest annuities today can guarantee income that the client can never out live no matter how the market moves; up, down, or side ways. The income is guaranteed for life without annuitization and the amount left over in the contract value will pass to their heirs.

Annuities are sold in amounts as little as $2,000 to $5,000 and offered by some of the most highly ranked and financially sound companies in the insurance industry. Index annuities also are unique because purchasers do not pay any up-front sales charge.Your insurance agent is compensated solely by the issuing insurance company. When you buy an index annuity, 100 percent of your principal goes directly into the contract. Some even offer a bonus of up to 10% so 110% of your money is working for you from day one.

If you are interested in diversifying your assets with guarantees of safety and security, lifetime income you cannot out live, index linked gains with unique features, and peace of mind to let you sleep at night, the index annuity is right for you.

Can Index Annuities Offer Peace of Mind and Guarantee Income For Life? is a post from: Dough Defender

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I recently saw this cool video detailing how one person got his overdraft fees reversed. He took the bank to court and got it all back, including the fees to file the claim!

There is a remedy to overdraft fees after all!

Remedy for Overdraft? is a post from: Dough Defender

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Well, maybe not. I’ve been checking out some of the work-at-home job sites and postings and I’ve found that there are some legitimate options for those of us that would like to increase our income with extra work that we can do at home.

Participating in market research is one legitimate way to make money online while at home. Here is a list of paid survey sites that actually pay you cash!

• YourFreeSurveys (New – Pays $4 just for registering and $8 for first survey)
• Survey Savvy (Pays average $2 per completed survey and $1 for referrals completed surveys.)
• MySurvey (In addition to earning points redeemable for cash you can also win extra cash.)
• AC Nielsen (#1 research company. Pays in Instant Win cash and gift certificates. Everyone wins.)
• Opinion Outpost (Earn points then redeem them for cash.)
• Global Test Market (Earn points then redeem them for cash.)
• Acop (Pays between $4 and $25 for each completed survey.)
• Your 2 Cents (Earn $1 to $5 for each completed survey.)
• African American Voice (Earn points then redeem for cash. Pays $5 and $10 per survey.)
• E Poll (Pays in points redeemable for cash.)

Paid Surveys Actually Pay is a post from: Dough Defender

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Look out, Chase is getting sneaky!

The other day as I was going through my monthly process of paying bills, I noticed one of my credit cards (which I have had a 3.99% APR on an old balance transfer I’ve been slowly paying off) suddenly had an increase in the minimum payment by double. Additionally, I saw a “SERVICE CHARGE *FINANCE CHARGE” line item for $10! I immediately called the bank (Chase) and asked about both of these things.

Turns out, their latest policy changes include upping the minimum payment from 2% to 5% of the balance, and charging a monthly maintenance fee for “processing payment and statements.” So I asked if the fee would go away if I closed the account. The customer service representative said, no. Closing the account would make no difference. She did give me two options that would remove the charge:

• Give up the 3.99% APR and pay the normal APR (I forgot what she said specifically, but the consensus around the web is that they’re offering 7.99%)
• Pay off the entire balance within 30 days of when the $10 fee was first charged (which was about 20 days ago)

Great options.

It’s not just me. There’s plenty of complaints from Chase card holders. But this is just one of the many changes that credit card companies are doing to accounts. Some people might suddenly see that their available balance got cut by half or more. Others will see these sort of “maintenance fees” pop up suddenly. Back in December, The Federal Reserve Board voted for new rules to protect credit card customers from exactly these types of fees, but the rules don’t take into effect until 2010. Unfortunately, with the current downturn, it looks like banks are seizing the opportunity to charge while they can.

For me, I’m looking into whether I can fight the fees (doesn’t look like it so far) or find another credit card that will allow me to transfer this balance (all my balance transfer offers that used to come by the truckload in the mail have all suddenly decided to honor my request for no more mail).

Has anyone else faced similar new “policy changes” from their credit cards?

Chase Runs Away With Your Money is a post from: Dough Defender

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Mint is a new online money management site in a similar vein to Yodlee and Wesabe, allowing users to visit one web portal to all of their accounts and financial information vs. logging in to a separate banking site for each account. This not only makes it easier for users to use the abundant online banking features available, it also facilitates easy viewing from anywhere there is an internet connection.

Unlike some of the traditional heavy hitters in the world of personal finance software like Quicken and Money the information in Mint is updated with ease and is truly an online platform for money management, monitoring user accounts constantly and sending alerts for low balances and credit limits. Mint allows users to take control of their current financial situation.

Mint just happens to have a great personal finance blog as well, handing out personal finance advice and resources for everyone. In fact, they have combed the internet to find the best personal finance resources in e-book format. According to Mint, you will reference these resources most.

Basics of Personal Finance

1. Building Wealth: A Beginner’s Guide to Securing Your Financial Future (1.2 MB 39 pg) – An excellent e-Book from the Federal Reserve Bank of Dallas (putting all the other Feds to shame), this guide helps individuals and families develop a plan for building personal wealth. It presents an overview of personal wealth-building strategies that includes setting financial goals, seeking guidance, budgeting, saving and investing, and managing debt.
2. Pathways to Getting Ahead (882 KB, 48 pg) – A very good booklet, this guide is targeted to young adults, and aims to spur thinking about the importance of asset building in their personal lives and about how larger policy decisions impact the choices they make.
3. Money Matters: Your Guide for Financial Security (24 MB, 32 pg) – Get helpful tips on how to set financial goals, organize your financial files, find a financial professional, understand your investment options and responsibilities, and be a wise borrower.
4. Banking Basics (721 KB, 44 pg) – From the Federal Reserve Bank of Boston, this e-Book provides an introduction to banking for young people that answers many basic questions: What is a bank? What makes one type of account different from another? Why do banks fail and what happens when they do?
5. Simple Strategies for Managing Your Money (7.5 MB, 12 pg) – From the FDIC. Use the helpful checklists to get financially fit, avoid bad deals and scams, insure all your deposits, and effectively resolve problems with financial institutions.
6. Taking Control of Your Finances (1.3 MB, 12 pg) – Another handy guide from the FDIC that’s geared toward young adults — from those still in school to just starting a career or a family. Learn the right ways to save and manage money, and how to avoid some common mistakes people make with their cash flow.

Consumer Awareness

1. Consumer Action Handbook (11 MB, 178 pg) – This is one of the most popular books published by the federal government (seriously). The 176 page e-Book is an easy-to-read guide offering general buying tips and ways to resolve marketplace problems (including sample complaint letters), as well as information on specific topics such as credit, cars, insurance, and travel. There are thousands of names, addresses, telephone numbers and websites for corporations, trade groups, state and local consumer protection offices and federal agencies.
2. Consumer’s Almanac (562 KB, 32 pg) – Organize your expenses, save for the future, and manage your credit with monthly calendars and worksheets.
3. Ten Questions to Ask When Choosing a Financial Planner (347 KB, 14 pg) – A straight-forward brochure from the Certified Financial Planners on 10 questions you should ask when you look for a financial planner — an important decision that should be accompanied by important questions.

Credit & Credit Cards

1. Building a Better Credit Report (235 KB, 24 pg) – Learn how to legally improve your credit report, how to deal with debt, how to spot credit-related scams, and more.
2. SHOP: The Credit Card You Pick Can Save You Money (213 KB, 13 pg) – This consumer awareness brochure provides tips on picking the right credit card that meets your spending and repayment habits. It focuses on key costs and terms to consider such as the annual percentage rate (APR), the cash advances, the annual fee, and the grace period, to name a few.
3. Healthy Credit (1.2 MB, 12 pg) – Learn more about how your credit report and credit score affect your ability to borrow money and stay healthy financially.

Saving & Investing

1. 66 Ways to Save Money (78 KB) – One of the classic publications with over two million copies distributed. It details practical ways to cut everyday costs on transportation, insurance, banking, credit, housing, utilities, food, and more.
2. Get the Facts on Saving and Investing (5.7 MB, 32 pg) – From the SEC. A road map to start you on a journey to financial security through saving and investing. Use this guide helpful tips and worksheets for calculating net worth, income, and expenses.
3. How SIPC Protects You (3.3 MB, 10 pg) – If your brokerage firm closes due to bankruptcy or other financial difficulties, the Securities Investor Protection Corporation (SIPC) works to return your assets. Find out what SIPC does and does not cover.
4. All About… The Foreign Exchange Market in the United States (assorted PDF) – Discusses in detail the operations, participants and instruments in the U.S. segment of the global foreign exchange market.
5. Tools of the Trade: A Basic Guide to Financial Derivatives (2.1 MB, 15 pg) – This guide offers insight into when and how derivatives can be valuable tools for managing financial risk and focuses on pertinent questions to ask yourself and others before you or your company invests.

Mortgages

1. Know Before You Go… To Get a Mortgage (684 KB, 16 pg) – The purpose of this guide is to provide general mortgage information to consumers and to shed some light on the risks associated with today’s more complex mortgage offerings. It is by no means meant to counsel consumers to avoid certain products, but rather to alert them to potential risks, and encourage them to make informed decisions and to be aware that certain products may be appropriate for some borrowers but not for others.
2. Interest-Only Mortgage Payments and Payment-Option ARM’s: Are they for you? – Information to help you decide if an interest-only mortgage payment is right for you (Note: In Mint’s opinion, they’re likely not).

Retirement Planning

1. Savings Fitness: A Guide to Your Money and Your Financial Future (3.2 MB, 16 pg) – Create your personal savings plan and prepare for retirement with this step-by-step guide.
2. 401(k) Plans (41 KB, 7 pg) – Explains what these plans are, what happens when you change employers, and what to do if you need the money before retirement.
3. Variable Annuities: What You Should Know (11.3 MB, 24 pg) – Explains what they are, how they work, what you have to pay, and questions to ask before you invest.

Estate Planning & Insurance

1. Estate Planning (48 kb, 9 pg) – Covers why a will is important and how to prepare one; how to estimate the size of your estate and minimize taxes; and how to set up powers of attorney and advance medical directives.
2. Living Trust Offers (132 KB, 4 pg) – From the Federal Trade Commission, a small pamphlet to find out if living trusts are right for you and how to protect yourself from scams when planning your estate.
3. What You Should Know About Buying Life Insurance (312 KB, 28 pg) – A quick 28 page pamphlet that describes various types of life insurance, with tips on choosing a company, an agent, and a policy that meets your needs.

Privacy & Security

1. ID Theft: What It’s All About (711 KB, 36 pg) – A small information pamphlet from the FTC that details how thieves can steal your personal information and use it to commit fraud for long periods without your knowledge. Here’s how to protect yourself, and what to do if you are a victim.
2. Identity Theft (452 KB, 22 pg) – This booklet is designed to help you understand what identity theft is, how it happens, how to protect yourself, and what steps to take if your identity is stolen. There is a companion video along with the booklet, available here.
3. Privacy Choices for Your Personal Financial Information (77 KB, 6 pg) – A small booklet that explains your right to opt out of sharing some of your personal information and lists the types of information that financial companies can share about you.
4. Identity Theft and Your Social Security Number (218 KB, 8 pg) – Someone illegally using your Social Security number can steal your financial identity and your money. Find out how to prevent identify theft, how to report it if you suspect it, and if you can get a new Social Security number if you are a victim.
5. Phishing and Pharming: Helping Consumers Avoid Internet Fraud (387 KB, 8 pg) – The increase in online transactions has been accompanied by an increase in online identity theft. Fraudulent access to personal information over the Internet is increasingly prevalent and sophisticated. Two forms of identity theft are at the forefront of this Internet piracy: phishing and pharming.

Bonus e-Book from Awesome Readers:

1. What Women Need to Know About Retirement (300 KB, 78 pg) – A project from the Heinz Family Philanthropies and The Women’s Institute for a Secure Retirement, this 78 page e-Book covers the why, where, and what of retirement (and it’s not just for women!). Topics include: stocks, bonds, social security, and health care. A very decent can’t miss e-Book!

Mint and 30 Free eBooks About Personal Finance! is a post from: Dough Defender

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