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What Makes a Good Bank?
WHAT MAKES A GOOD BANK?
What are the things you should look for?
It is surprising how many people will put their money in just any bank. All banks are not created equal, and let’s just say that some have proven more solvent than others. Besides FDIC insurance, what other characteristics should you seek – and what questions should you consider? How close is this bank? Is there a branch near where you live and close to where you work? How is the online banking setup? (Yes, you should value convenience, but it shouldn’t be the only factor in mind as you choose a bank.)
How cheap is it to bank there? You’ve heard of overdraft fees and ATM fees. But how about wire fees, notary fees, and fees on cashier’s checks and money orders? Returned-deposit fees? Stop-payment fees? Fees to check your balance? Fees to talk to a teller? (No kidding, some banks do charge for that.) Is it bad taste to ask a bank to detail its potential fees? No, it’s smart. Some banks offer you a free checking or savings account and a whole lot of potential charges besides. Some have plans that cover a whole range of services, plans that could save you some money.
What else can this bank do for me? Can the bank provide your business with credit card processing? Will your checking account give you any interest? What kind of CDs does the bank offer? How about mortgage and loan types? Could you send money overseas via this bank? Do they do any trust planning?
How friendly is this bank? When you walk into the bank, what’s the reception? Do people greet you and ask how they may help you? Or are you ignored for a prolonged period? What happens may hint at the level of service coming your way.
Ask to see a bank officer, if possible. Set down a list of what you want, and see how close your potential new bank comes to providing it. Don’t be afraid to make the bank work for your business - they are working hard than ever for it.
What can you do to make a banking relationship better for you? If you bring major amounts of cash to a bank, of course you’re going to be treated as a VIP. If you don’t, it may help you to establish a relationship or two. So often, we go to a bank and we look at the tellers – and even the loan officers and mortgage consultants – as mere functionaries instead of human beings.
If you have a lousy experience at the bank or you get dinged with some weird fee all of a sudden, ask someone why – maybe the customer service staff can address the matter and work out a solution. Make yourself known – a good way to do that is to bank when it isn’t “rush hour”. A friendly, recognizable customer who wants the best from his banking relationship can turn into a valued banking client.
Would it be better to bank online? How often do you need to go inside your bank? If you really don’t require much in the way of in-person services, maybe an online bank is a better option – after all, why should you pay to support your bank’s branches if you never set foot in them?
Thinking small may help. People were leery of small banks in this last economic downturn, but the customer service can be considerably better at such institutions. When a community bank is bought by a bigger one, bigger does not necessarily mean better in terms of attention.
No SSI Increase for 2010
NO SSI INCREASE FOR 2010
The Social Security Administration (and the IRS) leave
benefits and retirement plan contribution limits unchanged.
SSI will remain flat for the first year since 1975. Social Security benefits are keyed to inflation. So what happens when year-over-year inflation becomes negative? No cost-of-living adjustment (COLA) occurs to increase your Social Security income. On October 15, the Social Security Administration announced that there would be no COLA for 2010. (The 2009 SSI COLA was 5.8%, the largest boost since 1992.) (source)
“What do you mean, negative inflation?” That’s the question some SSI recipients are asking. Aren’t prices seemingly going up at the grocery store every day – and going up everywhere else?
Unfortunately, the federal government doesn’t measure consumer inflation with a price check on aisle six. It uses the Consumer Price Index (CPI), which is really an estimation of the average prices of consumer products we buy. There is also core CPI, which excludes food and energy costs.
What to Look for in a Financial Advisor
WHAT TO LOOK FOR IN A FINANCIAL ADVISOR
A framework for finding someone you can trust.
10 Things You Can Do Immediately to Slash Debt and Spending
10 THINGS YOU CAN DO IMMEDIATELY TO SLASH DEBT AND SPENDING
Any financial planning process begins with a change in financial behavior and expectations. The degree of change varies based on financial priorities, but in the end, it’s about adopting new habits and abandoning others.Before you take any of the following steps, it makes sense to talk to an expert who can help you see your whole financial picture. A fiduciary fee-only CERTIFIED FINANCIAL PLANNER™ professional can examine all your sources of income and expenses. Your advisor can explain the most efficient ways to cut expenses, pay off debt and boost the money you have for saving and investing.
In the meantime, here are some ideas:
Refinance if you can: Mortgage rates are still at historically low levels. You’ll need at least 10 percent equity (20% of equity will save you the PMI insurance cost) in your home and a credit score exceeding 720 to qualify for the best rates, but start negotiating with your current lender first and see how well you do.
Track your spending for a week: Either on paper or on the computer (use this handy cash flow statement), write down every dollar you spend in the average week (and cut off credit card use during that week). At the end of that week, start marking out non-essential items just to see how much you could live without. Start with coffee, eating out, carryout meals and work backward from there.
Make a spending plan: Once you’ve established how your income covers the essential expenses you must plan for, and a few inexpensive treats that should stay in, build a spending plan including specific amounts you can allocate toward debt. Keep a running total of your spending going forward, and revisit how the spending plan is functioning on a monthly basis until you start to see some positive results, and then you can review the performance of the spending plan a little less frequently.
Reset your entertainment expectations: Find ways to save money with friends – cook more meals at home or rent a movie instead of going out to see one. Also, get used to checking entertainment listings for free events of interest to you.
If you can do it safely, take over home and auto maintenance yourself: The do-it-yourself movement is in a new phase with the economic downturn. For any home or auto maintenance chores you may have during the year, learn as much as you can about those tasks and estimate the cost of materials and your time before doing them yourself. Previous generations made do-it-yourself a necessity. See if that option is right for you and you might save considerable money doing it. Also, for bigger jobs, pair up with friends and family and you can help each other save money.
Set a new gift policy with your adult friends and family: Does everyone on your gift list over the age of 21 really need a present for birthdays and major holidays? Suggest to family and friends to have a gift drawing, a spending limit, a moratorium on gifts, or some other alternative where you trade off gifts for quality time. Even though the holidays are a few months away, it’s not too early to think about reining in the traditional holiday overspending.
Go debit: Debit cards wearing a bankcard logo are typically welcome at most stores where credit cards are accepted. This way, you pay cash without carrying cash. If you don’t have such a card, you can get one from your bank to replace your traditional ATM card, but remember to tell them to limit your buying power on the card to only what you have in your account. And use the overdraft protection to avoid fees.
Revamp your shopping list: Give this a shot: start a central weekly shopping list on a single piece of paper and add a dollar value for each. Write everything you think you need to buy on that single sheet, from groceries to clothes for the kids. That way, you’ll see all your proposed spending in front of you, and you can get a closer look at what your true priorities are. You’ll be surprised at all the “essentials” are not really that essential once you cross off before you spend.
Talk to your family about spending: When you’re talking to kids about budgeting and lowering your expenses, you have to walk a fine line between discipline and fear. But setting money priorities is part of growing up, and it’s essential to discuss and agree upon them as a family.
Buy used for yourself: Make someone else’s poor luck your good luck. If you need clothing, a car or a new watch to replace the old one that’s past fixing, it might be worthwhile to buy second-hand. The best places to find these gems are on the internet on places like craigslist. Plenty of people have unloaded items in relatively good shape to bring in cash during the recent downturn. You might do very well, and if anyone asks, don’t call it used; call it “vintage.”
Retirement Plan Solutions for the Small Business Owner
RETIREMENT PLAN SOLUTIONS FOR THE SMALL BUSINESS OWNER
The SEP, the SIMPLE IRA, and more.
What retirement plan options small business owner's have? If you own and manage a small company and want a retirement program, you want to consider these plan options.
Is America Prepared to Retire?
IS AMERICA PREPARED TO RETIRE?
Two-thirds of us have no financial plan.
64% of Americans have no financial strategy at all. That’s right – no plan whatsoever to build wealth or keep it. That finding comes from the 2009 National Consumer Survey on Personal Finance conducted by the Certified Financial Planner Board of Standards, Inc. (The survey collected data from 1,700+ U.S. residents.)(source)
Don't Forget These 2009 Income Tax Breaks!
Don’t Forget These 2009 Income Tax Breaks!
Plan to exploit them before they expire.
