It is true that one of the best ways to get your money to work for you long term is to invest it in stocks, whether that’s through individual stocks, or some sort of fund. However, many people have rather unrealistic views about the returns they can earn. According to Jason Zweig in The Wall Street Journal, most American investors expect that the stock market will offer an annual return of 13.7% in the next 10 years, and professional investors believe that average long term stock returns will be 11% a year.
Unfortunately, that’s not the case. Zweig reports that …read more

The fastest growing crime in the U.S. is identity theft. So it is little surprise that there has been a great deal of emphasis lately on protecting your information. One of the ways to do this is to create a strong password. This is especially true when it comes to passwords that protect your personal information. Laughable as it may seem, the most popular password is 123456. You can seriously just paint a huge target on your bank account with a password. Take a look at these most popular passwords, according to The New York Times:

In order to make a …read more

In these economic times, many people are looking at their finances and wondering where they went wrong — and how they can fix it. Some despair of ever truly managing to start over financially. The good news is that it probably isn’t too late to finish rich, even if you have to start over again. David Bach offers 10 steps to help you get on the right track in his book Start Over, Finish Rich: 10 Steps to Get You Back on Track in 2010.

Recommit to Wealth
Find Your Money
Deal with Your Credit Card Debt
Fix and Protect …read more

After your housing payment, your car payment is likely to be the next largest obligation you have. You can reduce your obligation with a little, according to an email I received from Swapalease.com. The email offers some interesting ways that you can save money on car costs. Here are some things to consider:

Programs like those offered by Swapalease.com provide a way for you to transfer a lease that has become too expensive due to your financial circumstances. This can save you money, and reduce the fees you might have to pay if you go through your dealer.
You can take advantage …read more

This is a guest post from Manny Davis.
A Federal tax audit is the process where you as the taxpayer must prove to the IRS that you correctly reported all income, deductions, exemptions, and credits. Unfortunately, with a tax audit you are guilty till you prove your innocence (unless you appeal and land in court). In general, the probability of having your individual tax return audited is usually lower than 2% (based on historical data) and most audit letters are sent out 1 to 1.5 years after you file your tax return.
There is no sure fire way to avoid a tax …read more

With stock market’s recent troubles (although it is on the way to recovery now), and with so many people concerned about their retirement portfolios, it can be tempting to give in to panic. However, it is important to remember that investing is still one of the best ways to grow a retirement portfolio. The markets will eventually recover (and eventually cycle down again), and chances are that you will be okay — if you have been following a plan with a well-balanced portfolio.
Just remember that the lottery is not a retirement plan. No matter the cynical observations about the stock …read more

Do you have a financial disorder? What can you do to fix it? If you are concerned about your relationship with money, you can get a little help from Mind over Money: Overcoming the Money Disorders that Threaten Our Financial Health. This books is written by Brad Klontz (PSY.D.) and Ted Klontz (Ph.D.), and contains a wealth of insight into why we are the way we are when it comes to money.
Mind over Money takes the reader through the problems that can develop with how we view money, and it explains what a money disorder is. The book divides different …read more

I make more money than my husband. Granted, he’s working on a Ph.D. right now so his earning potential is limited, but I’m still the primary breadwinner. But even after he is done, chances are that my earning potential will still be higher. I am in the minority in this area. But, apparently, not as much in the minority as I used to be. The Pew Research Center recently published a report about “the rise of wives” as breadwinners, and found that one in five marriages boasts the woman as the dominant earner. Looks like social change is coming.
In fact, …read more

You’ve heard that life insurance isn’t for you — it’s for those you care for. This is true. When you purchase life insurance, you are providing for your survivors. But you don’t want to just get life insurance willy-nilly. Instead, Redeeming Riches suggests four questions you should ask yourself before you purchase life insurance:

What is the purpose? Why are your getting life insurance? Do you want income for your partner? To pay off the mortgage and other debt? To pay estate taxes? Figure out what you want the life insurance to accomplish before buying it.
How much do you have already? …read more

The recent, devastating earthquake in Haiti has me thinking about charitable giving and how it fits into personal finances. Ask Mr. Credit Card wrote a post, encouraging us to give to the cause. I give regularly to my church congregation’s humanitarian fund, and I can specify that some of my donation go to help efforts in Haiti. Which is what I am doing.
It may seem counter-intuitive, but many personal finance gurus cite charitable giving as one of the most important aspects of financial planning. For giving money away! But the idea is that when you live your life acknowledging that …read more