Free From Broke

A Personal Finance Blog for Regular Folks

Glen Craig

Investing VS Speculating: The Difference Between Building Wealth and Gambling

Published or updated by

How do we know when we’re investing—or speculating but thinking we’re investing? It’s not always obvious.

One of the factors that can make it difficult to know the difference between investing and speculating is that both produce gains and losses.   Some sound investment strategies can turn losses for a few years, while speculating rakes in high returns just long enough to earn some credibility.

Since the lines between investing and speculating can often be blurry how do you spot the difference between the two? [Read more…] about Investing VS Speculating: The Difference Between Building Wealth and Gambling

What’s in Your Pocket? ING Direct! Capital One to Buy ING Direct USA Online Banking Division

Published or updated by

ING Groep NV (NYSE:ING), the Dutch parent company of ING Direct USA, has agreed to sell its online bank to Capital One Financial Corp. (NYSE:COF)

The sale will be for $9 billion in cash and stock.  This move helps Capital One move up from the 8th largest bank in the U.S., based on deposits, to the 5th largest depository bank.  Capital One also becomes the largest direct bank with the acquisition.

Why sell ING Direct?

ING Direct is a successful division and a pioneer in online banking – why sell it? Back in 2008 ING Groep NV received a 10 billion Euro bailout from the Dutch government.  As part of that loan, ING Groep NV is required to restructure and divest itself of ING Direct USA.
[Read more…] about What’s in Your Pocket? ING Direct! Capital One to Buy ING Direct USA Online Banking Division

How to Recession Proof Your Life

Published or updated by

Harvard Business published an article a while ago that talked about job security and how the younger generation question if their job is secure. No matter how old you are, there is one thing that is certain – gone are the days that we leave school and work at the same career throughout our lifetime.  Well, there may be a handful of people such as doctors that may remain in the same career, but still, the vast majority of us will ultimately have two or three careers.  One thing to always keep in the back of the mind is what if you are in the midst of changing careers and a recession hits?  Or even if you are in a pretty good position but the company you work for takes a hit if another recession occurs?  Recession proofing your life should be just as much a priority as having life insurance to take care of your family.

There are some steps you can take to recession proof your life and depending on your financial situation, it may not be too difficult.
[Read more…] about How to Recession Proof Your Life

Half of Americans are “Financially Fragile” – How Not to be One of Them

Published or updated by

A disturbing article from the Wall Street Journal reports that Nearly Half of Americans Are ‘Financially Fragile’, which is defined in the article as households who “definitely or probably couldn’t come up with $2,000 in 30 days.”

The $2,000 figure was chosen because it’s roughly the cost of “an unanticipated major car repair, a large co-payment on a medical expense, legal expenses, or a home repair”—in other words, expenses that are hardly out of the question for a typical household.

According to the article 46.5% of all respondents are living very close to the financial edge—in other words, nearly half of America.  And it’s one of the worst rates in the world—in Italy for example, the rate is only 20%.  But it gets even worse; an additional 25.1% of U.S. respondents answered that they were “probably able” to come up with $2,000—meaning that they aren’t entirely sure.

That’s a sad state of affairs no matter how you interpret it.

How should we respond to this information? By making certain we don’t fall into the same category! [Read more…] about Half of Americans are “Financially Fragile” – How Not to be One of Them

What Is a Probate Lawyer and When Would You Use One?

Published or updated by

At one point or another throughout our lifetime we hear about probate lawyers.

If you’re like most people you don’t pay attention until one day you’re faced with the inevitable – you need a probate lawyer.

So what specifically is a probate lawyer?

A probate lawyer manages the filing of the last testament or will of a deceased individual.  Sometimes there are some wicked disputes that arise from the disposition of property.  Basically a probate lawyer is an estate or a trust lawyer.

Far too many people do not think about finding a probate lawyer until someone has passed away.  When this happens, then there is a sense of urgency to hire a probate lawyer therefore not allowing time to shop around for the lawyer who will best represent your interests.
[Read more…] about What Is a Probate Lawyer and When Would You Use One?