Long known as one of the safest investments out there, United States Treasury bonds could soon lose their Triple-A rating from Moody’s Investor Service. The downgraded rating would be the direct result of growing debts and the government’s inability to maintain control of them.
Moody’s released the report on Monday, signaling a very real consequence to government spending. The United States is not the only country that may eventually find itself on the bubble, with Moody’s stating that several other major Western nations are also in peril of losing their sterling rating.
While a downgrade would certainly bruise the nation’s ego, it …read more

At a time when Americans have begun to question the ability of Congress to take action and make changes, Senate Democrats will soon move forward with a bill that aims to overhaul the nation’s financial system. Senator Chris Dodd, Chairman of the Senate Banking Committee, will introduce the bill on Monday.
The bill seems to be an attempt to create a consensus between the Republicans and the Democrats regarding changes to the nation’s financial system, incorporating ideas from both parties.
One of the most recent provisions of the bill to be revealed is one that will attempt to reduce Wall Street’s influence …read more

An examiner for Lehman Brothers, the financial giant whose collapse helped to ignite the severe economic recession, has compiled a 2,200 page report that details the reasons for Lehman Brothers’ collapse. The report goes into much further detail than has been currently known about the extent to which executives concealed bad investments by using deceptive accounting practices.
According to the report, the death of Lehman Brothers was caused primarily by bad mortgage holdings, but also by JPMorgan Chase and Citigroup’s insistence that Lehman Brothers post collateral for much-needed loans. Most shocking, though, was the report’s revelation of the extent to which …read more

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