Loan Questions: Frequently Asked Questions

TABLE OF CONTENTS What should I do if a friend or family member asks me to cosign a loan? How can I get the best deal on a home equity loan or an equity line of credit? What are the costs of obtaining a home equity line of credit? Should I obtain a home equity line of credit or a traditional second mortgage loan? How should I determine which of several loan alternatives is...
Applying For a Loan: How To Get The Best Loan At The Lowest Cost

Applying For a Loan: How To Get The Best Loan At The Lowest Cost

Debt should be incurred with caution. Yet there are ways to take advantage of your available credit to enjoy a purchase, make an investment, or take care of an emergency. Here is a guide to finding out which form of borrowing will best suit your needs as well as some pointers on finding the lowest-cost loan available. TABLE OF CONTENTS Types Of Loans How To Shop For A Loan Comparing Loans Home Equity Loans TYPES OF LOANS Let’s take a look at the various ways you can borrow money-and the negative and positive aspects of each. HOME EQUITY LOANS By using the equity in your home, you may qualify for a sizable amount of credit, available for use when and how you please at an interest rate that is relatively low. Furthermore, under the tax law-depending on your specific situation-you may be allowed to deduct the interest because the debt is secured by your home. Related Guide: Please see the Financial Guide: HOME EQUITY LOANS: How To Shop For The One That’s Best For You. HOME EQUITY LINES OF CREDIT A home equity line of credit is a form of revolving credit in which your home serves as collateral. Because the home is likely to be a consumer’s largest asset, many homeowners use their credit lines only for major items such as education, home improvements, or medical bills-not for day-to-day expenses. With a home equity line, you will be approved for a specific amount of credit- your credit limit-that is the maximum amount you can borrow at any one time while you have the plan. Many lenders set the credit limit...
Bank Accounts: What To Look and Ask For

Bank Accounts: What To Look and Ask For

What type of account should you keep your money in at a bank or savings and loan association? How can you find the account that will charge you the least amount of money for the services you need? This Financial Guide helps you choose the most cost-effective type of account. TABLE OF CONTENTS Comparing Types Of Accounts Choosing An Account Getting A Better Deal Protecting Your Account Using Electronic Fund Transfers Correcting Errors Common Questions About Pre-Authorized Plans Government and Non-Profit Agencies Bank accounts are a basic part of managing your money and nearly everyone has a bank account of some sort, whether it’s a checking, savings, or money market account. Features and costs of accounts can vary greatly among institutions, so it is important to shop around when looking for a new account. You should also ask questions and negotiate fees and services with your current account. You may discover that you do not need to pay many of the fees you are currently paying. This Financial Guide discusses the various types of bank accounts, and provides suggestions for finding the lowest-cost account that will provide you with the services you want. In addition, it tells you what you need to know about Electronic Funds Transfers – how to get the best use from ATM cards, pre-authorized transfers, and point-of-service payments. COMPARING TYPES OF ACCOUNTS The accounts offered by depository institutions generally fall within one of these types: 1. CHECKING ACCOUNTS With a checking account you write checks to withdraw your deposited funds from the account. Checking accounts provide you with quick, convenient and frequent access to your...
Budgeting: How To Prepare a Workable Plan

Budgeting: How To Prepare a Workable Plan

A budget is an essential component of your financial plan. Not only does it force you to monitor your spending, it enables you to focus on which items (such as loans and credit card debt) you can pay off or pay down so that you can accumulate funds for retirement, education, or buying a home. Here is a guide to effectively organizing and keeping a check on your expenses. TABLE OF CONTENTS Step 1: Analyze Your Income And Expenses Step 2: Set Budgeting Goals Step 3: Create Your Budget Step 4: Review Your Adherence To The Budget Recommended Books While this Financial Guide offers you guidance on how to develop a budget that works for you and your family, don’t hesitate to contact your financial advisor if you need additional assistance. Note: The budget guidelines suggested here are intended for people who need to rein in their spending or have no idea what they spend their money on every month. If you have a good grasp of your cash inflows and outflows and have your spending under control, there may be no need to prepare a budget plan. Related Financial Guide: Please see the Financial Guide: YOUR FINANCIAL PLAN: Getting Started On A Secure Future. Note: Personal-finance computer software programs such as Quicken make it easy to set up a budget. If you have such a program, then simply follow the guidelines that the software gives you and use the information contained here as a guideline. STEP 1: ANALYZE YOUR INCOME AND EXPENSES The first thing you need to do is to review your income and spending for the past year. This “cash-flow...
Your Financial Plan: Getting Started On a Secure Future

Your Financial Plan: Getting Started On a Secure Future

This Financial Guide tells you how to begin the financial planning process. It provides worksheets to help you find out where you are financially and where you want to be in the future. It will help you identify your goals, determine your net worth and cash flow, plan to achieve your goals as well as begin to put your plan into action. TABLE OF CONTENTS Identify Your Goals Determine Your Net Worth Determine Your Cash Flow Plan To Achieve Your Goals Establish How Much You’ll Need Put The Plan Into Action Financial security derives not only from acquiring more money, but from planning. A solid financial plan can alleviate financial worries about the future and ensure that you will meet your financial goals-whether they relate to retirement, asset acquisition, education, or just vacations. Tip: Review your financial plan every year to keep it up to date. If you set it up properly initially, it is relatively easy to review and keep current. This Financial Guide allows you to take the first step towards a solid plan. By following the instructions and guidelines contained in it, you can find out where you are now and how you can put your plan into action. There are many ways to approach setting up a financial plan. The one outlined in this guide is just one of a number of approaches. Your financial advisor can assist you in setting up the financial plan that best meets your particular situation and needs. IDENTIFY YOUR GOALS Spend some time thinking and talking with family members about what you would like to achieve financially. What would make...

Reducing Risk and Paying Less Taxes

A good business structure is the first step to reducing risk and paying less taxes. An LLC is not a tax structure. There is no such thing as an “LLC Tax Return”. The LLC can elect to be taxed as an S-Corporation, Partnership, or any other structure. If no election is made and you are the sole owner, you will be treated as a sole proprietorship. If there are multiple members, you will be treated a…s a general partnership by default. The sole proprietorship (Schedule C) is a bad business structure. It puts everything you own at risk and subjects you to an excess tax of 15.3 percent self-employment tax on all net income. You are also taxed at the individual rate as well. If you own a business...