indexfoundation.nu » Creating and maintaining wealth

Why Credit Card Repayment is an Investment

KS — Sun, 24 May 2009 12:00:10 +0000

You might get a very sour feeling in the pit of your stomach when you repay your credit cards. However, here’s the truth: you’re investing in your future when you’re repaying your debts. The reason for this is simple. Since most credit cards are operating at interest rates beyond 12%, you’re losing more money by not paying for something that you used yourself.

Let’s say you owe $28,000. How much would your debt be in a year? More than $70,000. Imagine saving that kind of money if you pay for the $28,000 as quickly as possible. When money is involved, keep a close fist. The closed fist in itself is an investment.

A Wonderful Retirement is a Debt Repayment Away

KS — Sat, 23 May 2009 11:55:45 +0000

Let it be said that a retirement would only be comfortable if you know what you will be doing years and years before the retirement. Everything that you do with your money now has an effect on your last forty years here on Earth.

If you don’t believe us, then look to the streets. How many old people do you see out there who are struggling with unemployment and with no home? How many used to be big spenders but experienced poverty after losing their assets to unpaid, high-rated loans and debts?

We know you see the picture, so make sure you’re ready for that future if ever you decide that you don’t want to start saving for your retirement now.

No to Subprime: Forever!

KS — Fri, 22 May 2009 11:52:04 +0000

If you didn’t get the loan that you wanted, then a subprime loan won’t be of much help. Don’t substitute a small pit for a bottomless one. If you have a history of poor income and an inability to pay interest rates and full debts on time, then don’t use subprime lending companies.

Do you know what subprime means? It means that you’re bound to pay more than what regular loans require. You’re going to be tossed around in a laundry machine full of blades for a few years. Your assets, including your home and car would all be in danger. People think it’s an easy way out; but it’s not.

Pre-Marriage Contracts

KS — Thu, 21 May 2009 11:50:30 +0000

Before you jump into the whirlpool that is marriage and family, it’s time to sit down and think of a good way to protect yourself from financial ruin if ever things don’t work out in the end. Get yourself a pre-marriage contract. A civil contract, signed in the presence of a good lawyer can be of help when you’re walking amidst the debris of divorce.

It would also clear things up when you’re talking about real property and other liquid assets. These contracts would protect the both of you because it was signed with a clear head and more or less equitable predispositions. Think about it; some things really need paper and ink.

Divorce and the Ripples in the Empty Pool

KS — Mon, 18 May 2009 11:46:12 +0000

When you end up being single after twenty years of marriage, things can become ugly very, very quickly. This is why you should be very clear about the conditions of the separation. Don’t allow your partner to get everything. Have a good divorce lawyer split the estate equitably. Don’t leave your other half in the cold either.

Divorce is about starting over. That includes your financial life. Make sure that before you sign on the dotted line, you’ve already reviewed twice or thrice the conditions of the separation and distribution of the accumulate wealth. Don’t burn bridges; never burn bridges. Make new friends in the process, including your estranged partner.

How Online Advisors Can Wreck Your Financial Life

KS — Sun, 17 May 2009 11:45:06 +0000

Your financial life is a determining force. Whether you accept it or not, you hold on to nothing else except your own hard-earned money. That’s why you should be very careful about so-called experts on the Internet. More than half of these advisors don’t know what they’re talking about.

You can avoid incompetent people. However, what if you come across a seemingly competent and legitimate business but still end up being swindled? What do you do?

First, refuse any service that asks for access to your bank accounts. If they want to do that, have them give you a physical address where you can come and evaluate their services from there.

Retirement and College Funds

KS — Fri, 15 May 2009 11:42:18 +0000

Should you give every penny to your kids so that they would have a bright future during college? Yes and no. Of course, you have to make sure that they have money when they go to the university. However, you also have to make sure that you’re still saving for your retirement, and that you’re still paying off large chunks off your debts.

Take it from us folks; you wouldn’t want to wake up one day to find yourself faced with a bleak retirement without money. So do yourself a favor: don’t overdo the savings for your kids’ college. Make sure that you have more than enough left for yourself. Because in the end, you’re all that you have.

Saving Late In Life?

KS — Tue, 12 May 2009 11:37:32 +0000

If you’re like fifty percent of most employees in the US, then you’re probably wondering how you’re going to survive in your retirement. You probably have a few thousand dollars in your bank account, but will that be enough at all to pay for the remaining decades of your life?

Probably not. This is where late nest eggs come in. If you want to save more, you have to pay more early on. Focus on your debts and get them out of the way. You won’t be able to save anything if you’re dealing with large debts when you’re sixty. So while you’re still in the corporate world, do everything in your power to settle everything.

Are Mutual Funds Still Worth It?

KS — Sun, 10 May 2009 11:32:55 +0000

Often, people overemphasize the importance and value of mutual funds. While we live in a world that would certainly be less hostile if you have plenty of savings, mutual funds aren’t really the best in what they do. Investments should have consistent returns; mutual funds don’t really offer that much return to investors.

Why don’t you try ETFs for a change? It’s time to move to the current era; being afraid of newer investment strategies might be harmful for your financial wellbeing. Keep yourself updated. Take risks if it’s absolutely necessary. If you wish, hire a broker to teach you the basics of buying and selling stocks. It’s time to make your hard-earned money grow!

Beware of Tax Strategies That Are Baseless

KS — Sat, 09 May 2009 11:30:25 +0000

The taxation system of in the United States has been designed to gets its share no matter what. So forget about deductions and lowered interest rates; because no matter what you might think, the US government would still get the full amount one way or another.

This applies especially if you have regular work that makes use of centralized payroll systems. Payroll systems translate to automatic taxation or Required taxation. In other countries, this can be avoided, but this is alive and kicking in the US. So the next time you want to buy a $50 book on how to save on taxes, think of the whole system itself and ask yourself, can one book really teach me to save money on taxes?