What is Glass-Steagall and Why Do WE See it in the News?

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One of the subjects that is often covered in the financial news, especially as talking heads try to figure out what can be done to avoid another financial crisis, is the Glass-Steagall Act.

Many people don’t exactly understand why this old law — parts of which were repealed in 1999 — is still a topic of conversation, and why it matter so much.

Brief Overview of the Glass-Steagall Act

Passed during the Great Depression, the Glass-Steagall Act is also called the Banking Act of 1933.

Glass-Steagall was designed to prevent some of the problems that caused the Great Depression, mainly the difficulties caused by the widespread failure of banks.  The Banking Act of 1933 included the creation of the FDIC and it also expanded the role of the Federal Reserve.

However, the item that is most emphasized about the Glass-Steagall Act, particularly in a post-2008 world, is the prohibition of commercial banks from participating in investing.

Part of the problem ahead of the Great Depression was that Main Street banks began underwriting corporate stocks, and even floated bond issues.  With all of these Main Street banks exposed to Wall Street, the crash of 1929 was hugely devastating.

The idea of Glass-Steagall was that banks separate themselves out by the type of banking they did.
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Will a Late Credit Card Payment Affect My Credit Score?

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The most important aspect of your credit score is your payment history.

As a result, a late payment can have a profound impact on your credit history.

That late payment is recorded on your credit report, and the information in your credit report in turn influences your credit score.  And, since your payment history accounts for 35% of your credit score, a late payment can make a big difference.

But how late does a credit card payment have to be in order to be considered late?  Will your credit score really be dinged if you are one day late?

The answer depends on your own behaviors, as well as the policy followed by the creditor in question.

When is a Payment Late?

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How the IRS Decides Whether You Have a Business or a Hobby

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As the end of the year approaches, and tax season rears its head, it’s important to start figuring out what deductions and credits you are eligible for.

Many consumers are excited to learn that they can take deductions for hobbies as well as for businesses.

However, what is allowed when it comes to these tax deductions depends a great deal on whether the IRS thinks you have a legitimate business, or whether what you are doing is really a hobby.

Tax Deductions: Business vs. Hobby

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Would You Sell Yourself to Pay for College (or Anything Else)?

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During my freshman year in college, while visiting another college campus, I grabbed one of the school newspapers.  While looking through the pages, I noticed an ad, asking for women to allow their eggs to be harvested.

Women of average height, in good health, and possessing a good GPA were encouraged to basically sell their eggs.  Not only would the medical procedure be covered, but there was also a stipend involved.

The American Society for Reproductive Medicine points out that egg donors can receive between $5,000 and $10,000, depending on what is involved.

I was briefly tempted to participate.

I met the requirements listed in the ad.  I cut out the ad and took it back to my own school.  Then I did the research on what donating entails.  There are risks involved with becoming an egg donor, from health issues, to medical screening, to injections.

I decided that, between the scholarship and the student loans, not to mention the part-time job, I would be just fine.

But that experience has stuck with me, and I know that many others find that they can do reasonably well if they are willing to sell a little bit of themselves to help pay for college (and other things).

What Can You Sell of Yourself to Pay for College?

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What Are REITs? – Earn Dividends While Investing in Real Estate

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One of the realities that I recognize in my life is that I am really not that interested in being a landlord.

However, the idea of having real estate in my portfolio is one that is of interest to me.

So, how do I go about adding real estate to my investment holdings without becoming a landlord, or needing huge amounts of capital to buy property?

You can use a Real Estate Investment Trust (REIT) to help you out.

What are REITs?

Real Estate Investment Trusts are collections of investments related to real estate.

They have a different structure than ETFs, but they are similar in that you can trade them on an exchange.  REITs are considered equities, even though they represent a collection of holdings related to real estate.  In addition to exchange-traded REITs, there are also private REITs and non-traded REITs.

There are a number of REITs to choose from, each with its own way of doing business.
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5 Tips for Helping You Stick with Your Investment Strategy

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So, you’ve made an investment strategy, and you’re ready to get started.

That’s great!

Investing is one of the best ways to build wealth over time.

The hard part, though, is sticking with your investment strategy.  How are you going to stay on track?

If you want to make sure that you keep with your investing strategy, here are 5 things you can do to help you maintain your focus:

1. Remember the Big Picture

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How to Become a Millionaire

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Even though a million dollars isn’t what it used to be, the goal of becoming a millionaire is one that many still strive for.  If you have a net worth of $1 million, you are thought to have truly “made it.”

Becoming a millionaire doesn’t have to be hard, though.

In reality, the steps you take toward becoming a millionaire are actually fairly simple.  The theory behind becoming a millionaire is fairly easy to grasp, although actually implementing your plan can be a little more difficult.

Here are some of the basic things you can do to answer the question of how to become a millionaire:

1. Earn Money

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What Can You Expect From a Premier Credit Card?

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One of the “rules of thumb” that is often expressed when it comes to credit cards is that it’s important that you avoid paying an annual fee.

Even with rewards credit cards, many suggest that you stay away from the annual fee.  After all, your annual fee reduces the value of the rewards that you earn.

There are some credit cards, though, that might be worth the annual fee.

These are premier credit cards, and they often come with annual fees that many of us consider excessive: $100, $200, or even $450.

Why would you pay that much for a credit card?

As with all things personal finance, it largely depends on what you expect to do with the credit card, and the benefits that you get.  If you really look at the perks associated with a premier credit card, you might be surprised.

Here are Some of the Things You Can Expect from a Premier Credit Card:

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5 Tips to Help You Deal with Economic Uncertainty

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We live in uncertain economic times.

No one knows what will happen next. Between a difficult job market, a housing sector that refuses to recover, and Europe on the brink of complete financial disaster, it’s easy to feel anxious about your money.

Will we see another recession? Could things turn around and be great? Are a eurozone collapse and slowing growth in China about to dump us into another global financial crisis? While you want to be prepared for the possibility of economic problems, it’s not a good idea to let fear rule you.

Once you let fear master you, you start making very poor decisions based on that fear.

Whether it’s making a bad investment decision, a risky business choice, or sabotaging your relationships, fear and anxiety can lead to problems in your finances and your life.

Before you let your worries about economic uncertainty turn into a full-blown financial emergency, it’s a good idea to take a deep breath, step back, and consider these 5 tips to helping you cope with the uncertainties that come in an economy like what we’re seeing now:

Tips to Help You Deal With Economic Uncertainty

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Medical Loss Ratio – What is it and Why Might I Get a Refund Check?

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There are a number of provisions in the Patient Protection and Affordable Care Act (PPACA) that was passed in 2010.

Now that the legislation has been mostly upheld by the Supreme Court, there is little to stop many of the provisions from the PPACA from coming to fruition.  From the inability of insurers to drop you due to illness, to the individual mandate for health care coverage, to the establishment of state exchanges, there are a number of highly publicized new policies in the bill.

However, there are also plenty of other provisions in the law, some of which you might not know about.

One of the lesser known provisions is the rebates that insurance companies will be required to send a rebate to customers if they do not keep overhead costs lower.

Some estimates suggest that as much as 30% of what we spend on health care goes to overhead — and not to health benefits.  This is rather distressing when the costs of health care in the United States are compared to other developed countries that, in many cases, more efficiently keep the overhead to 1/3 of what it is in the United States.

What is the Medical Loss Ratio?

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