Free From Broke

A Personal Finance Blog for Regular Folks

Glen Craig

Steps to Take to Avoid Retiring in Debt

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National debt is a massive problem in our country and there’s no shortage of advertising reminding us that we need to pay off our personal debts. Sadly, statistics clearly indicate that the numbers of individuals who are retiring in debt are on the increase, so much so that over half of those who retire are in the red.

Earlier this year Newsweek reported that the golden years have been severely tarnished with mounting medical expenses, rising credit card debt, and little or no savings.  Newsweek stated that a law professor at the University of Michigan found that individuals over the age of 55 now account for more than 20 percent of all bankruptcies in the U.S.  CESI Debt Solutions, a nonprofit personal-finance firm, conducted a study and discovered that 56 percent of retirees carried outstanding debts with them as they left the workforce.
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ShareBuilder Now ING DIRECT Investing, a Redesigned Site, and a Bonus!

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ShareBuilder has undergone a facelift!

Not only has their parent company, ING DIRECT, redesigned the site to make it easier to use, they have also renamed it – ING DIRECT Investing.

It’s still the same awesome site it’s been when it was created over 10 years ago.  Their goal has remained the same: Bring Wall Street to Main Street.

I think they have succeeded.  They make it easy for the average investor to invest in the market.

So why a redesign and rebrand?

[Read more…] about ShareBuilder Now ING DIRECT Investing, a Redesigned Site, and a Bonus!

IRA Maximum Contribution Limits – Roth and Traditional

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An IRA can be a great tool to help you save for retirement and the traditional and Roth both have interesting tax advantages. But the amount you can contribute every year is limited.  The Federal government imposes limits as to how much money can be contributed to both the Roth IRA and the traditional IRA accounts.  An account holder’s age (and income) is also a factor in how much s/he can contribute per year.

The investors who are 49 years old or younger have had maximum limits that are $1,000 less that those investors who are 50 years old or older since the 2006-2007 investment year.

The nature of this investment fund demands that an investor contributes the maximum amount of contribution allowed every year in order to enjoy maximum yield.  For example, the contribution amount for a person 49 years of age or younger in 2010 was $5,000.  If he only invests $3,000 in 2010 he can’t add the $2,000 deficit to the $5,000 contribution allowed in 2011.  The IRA is a “use it or lose it” investment fund which means any money not invested into an IRA is lost forever. [Read more…] about IRA Maximum Contribution Limits – Roth and Traditional

What First Time Home Buyers Need to Know About Their Credit Card Balances

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Many people who feel they are prepared to enter the real estate market by purchasing their first home have experienced a roadblock to good mortgage rates – their credit cards. Credit cards can play a positive, but also a negative role in the process of purchasing a home.

There is not a doubt that having a credit card can work highly in your favor when it comes time to shop around for your first home.  If you have a consistent history of timely credit card payments this builds a strong credit rating.  Having a high credit score not only will secure you a mortgage quickly, but one with very competitive rates.

Your credit card can be very influential when determining what mortgage you are seeking because the credit card payments are added to what the payments ‘would be’ on a possible mortgage to determine how much can be afforded.
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Credit Cards for Excellent Credit

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Having excellent credit (usually 750 or higher) is good for more than mortgage and car loan rates.

An excellent credit score can also yield you a credit card that offers better benefits such as longer balance transfer periods, low introductory APR interest rates, cash back bonuses, better rewards, and better general benefits.

Below I’m going to highlight some of the best credit cards for excellent credit.  If you are looking for a new credit card, and you have excellent credit, see if any of the following cards fit your spending needs.

To keep things simple, I’ve left out specialized cards like airline miles cards, travel rewards cards, small business cards, or hotel rewards cards. [Read more…] about Credit Cards for Excellent Credit