Manage your investments for potential tax savings
It’s smart to think ahead—especially if your investments have fallen behind. If you decide to sell losing assets before year-end, you can use those capital losses to offset taxable capital gains.

Review your portfolio
Major market swings can cause your investment allocations to shift. By rebalancing, you can restore your target allocation, manage investment risk, and keep your portfolio in good health.

Maximize your retirement plan contributions
If you haven’t reached this year’s contribution limit for your retirement plan, kick the funding up a notch for the rest of the year and plan to maintain that contribution in 2010. The sooner you maximize your contributions, the more time your investments have to benefit from potential long-term growth. For any IRA you have until April 15th 2010 to make contributions for the 2009 year.

Make the most of your philanthropy
Planning to make a contribution to a charitable organization? Donate before December 31 so you can write it off on this year’s taxes.

Get smart with college savings plans
You can take advantage of potential tax benefits if you open or contribute to your kids’ or grandkids’ college savings plan, such as a 529 plan, before the year ends.

Spend your flexible spending account
If you’ve covered the basics but still have some remaining funds, check your plan’s list of eligible expenses for last-minute ideas. Make sure you use the money that’s left in your account by the end of the year, or you’ll lose it. It’s also enrollment time for 2010 FSAs, so consider whether you’ve spent all your funds in the past and make any necessary adjustments.

My money is small time hustling. Im on track to having almost $1000 extra dollars this year. How are you doing this year? Let me know if you have any questions about this in the comments below.

What does this mean for current card holders?
In the next several months you should be getting letters in the mail from your credit card companies explaining new changes to your terms & conditions. You will see higher interest rates and fees because they will no longer be able to change the APR’s on existing balances under the new bill.

What does this mean for new credit card offers?
It will be much harder to get approved for a credit card. They are tightening up who they allow credit. If you do get accepted, you will see a lower credit limit than what you would expect. For those who are 21 years and under will need to show they have an independent source of income or will need a cosigner. This is particularly good because credit card companies would prey on college students often getting them into debt before they graduate. Under this new bill it also helps protect young people from being irresponsible.

How does this effect the communication between the consumer and the credit card company?
Credit issuers will no longer be able to raise interest rates on existing balances. In a case when a payment is 60 days late they are allowed to raise the rates as high as they want. Not much has changed here right? The only difference is they are required to inform you 45 days in advance and explain the reason for the increase. In addition, your statements will be sent at least 21 days before your payment is due.

To help card holders stay away from debt, statements will clearly show how much it’s costing you to borrow and how long it will take to pay off a balance if you are making the minimum payments. If you can avoid it, never pay the minimum, always pay more. If you are paying the minimum payments now, you will see when these updated statements come, that by paying only the minimum payments, you are often further in debt the next bill cycle.

Photo: AP

I haven’t figured out if this is ending for everyone this June or just me. My anniversary month is June, so I received a letter from Chase explaining the change in terms and will take effect June 30th. If you have the Chase freedom and have not yet received this letter. I would assume it would be ending on your anniversary month in 2009. Start planning ahead!

Why should you care and plan ahead?
The $50 dollar bonus reward once you reach $200 in cash back reward is also going away. Again for me, I have to earn $200 dollars in rewards before June 30th. My current cash back balance sits at $162, which means I have to earn $38 dollars in rewards in just over a month. Can I do it?

I am going to try!
My plan is to milk the chaserewardsplus.com website which gives you additional cash back on online purchases, and buy lots of gift certificates. As stated in the terms and conditions, you will receive 3% cash back on the top 3 categories where you spend the most for the first $600 each month. My first idea is to buy movie tickets for the entire summer. I will probably buy about $100 dollars worth. I am also looking into buying gift certificates for Gas, and my local sub shop at where I buy lunch almost everyday.

By crunching numbers and working the system I think I can reach my goal of spending close to 700 dollars in pre-paid money at 3% cash back, in order to get the $50 bonus. Then after that I can go back to my regular charging habits. So if you need me to charge something for you, let me know I’m looking for ways to increase my cash back.

Do you think I can make it? Got any tips? Let me know

Photo: zert.geld_2008

I tried to logon this morning to check my account and got an SSL security warning. This raise red flags for me because I’ve never had a problem with their site before. I then went to GMACbank.com and it said “Page not found”.

I looked it up and it turns out GMACbank has now changed their name to AllyBank. It would be nice if GMACbank.com forwarded you right to allybank.com. Instead I had a panic attack.

Ally Bank

The reason for the name change is to disassociate them form GM, who is known to be hurting these days. When asked about the name change, chief marketing officer Sanjay Gupta said, “Ally conveys the sense of a trusted partner, the attributes we are trying to convey.”

Here is a WSJ article more about the Bank’s new name: GMAC Will Change the Name of Its Bank

Give your portfolio a checkup
Assess your portfolio and make sure it’s positioned to meet your goals.

Maximize retirement plan contributions
Check your year-to-date contributions to retirement plans to determine if you’ve made your maximum pre-tax contributions to your IRA or company-sponsored retirement plan, such as a 401(k), 403(b) or 457. Remember you have until April 15 2009 to make contributions to your Roth IRA for year 2008. The max contribution is now $5,000.

Take a tax-smart approach to charitable giving
Consider donating appreciated securities you’ve held for more than one year to charities by December 31 for a full fair-market-value deduction and no capital gains tax.

Invest your year-end bonus
If you’re getting a year-end bonus, put it to work for you by contributing to your IRA or investing in a mutual fund. Remember that even during the most unpredictable and volatile markets it’s important to have—and stick with—a long-term investment plan.

Spend your flexible spending accounts
If you’ve set aside pre-tax money in flexible spending accounts, now is the time to check your remaining balances in these accounts. Plan to spend any remaining balances on out-of-pocket health-care and child-care costs, because any money not spent at the end of the year will be forfeited.

source: Charles Schwab

Bill Gates has reclaimed the top spot with a net worth of $57 billion dollars. Gates lost his title to Warren Buffett for a few months in spring 2008. Buffett’s shares in Berkshire Hathaway have fallen and landed him in a close second at $50 billion.

Here is a run down of the list:
1 – William Gates III
2 – Warren Buffett
3 – Lawrence Ellison
4 – Jim Walton
5 – S Robson Walton
6 – Alice Walton
7 – Christy Walton & Family
8 – Michael Bloomberg
9 – Charles Koch
10 – David Koch
11 – Michael Dell
12 – Paul Allen
13 – Sergey Brin
14 – Larry Page
15 – Sheldon Adelson
16 – Steven Ballmer
17 – Abigail Johnson
18 – Jack Taylor & Family
19 – Anne Cox Chambers
20 – Donald Bren

Sources:
Forbes – The Forbes 400
Yahoo – The Forbes 400 Richest Americans
Photo – ©AP Photo/Las Vegas News Bureau, Bob Brye

Being a young professional, you have many years ahead before retirement. This gives our 401k’s and other mutual fund investments plenty of time to turn around. The down market is actually a great time to buy shares at a bargain price which is one of the most basic investing strategies, buy low and sell high. With time and history on your side, chances are the market will go way up from today.

Here is an excerpt from the Article:

Taking the average is nice, but lets put some money on the line. If we put $1,000 per quarter into each scenario, here’s what happens:

Steady Growth
Shares Owned: 1,655
Portfolio Value: $73,544

Down Market With Recovery
Shares Owned: 2,427
Portfolio Value: $107,809

If you would like to see the full study, click here.

You can get more detail on each lesson if you follow the link.

LESSON 1
Setting priorities
Here’s help for the first — and often the hardest — step in achieving your financial goals: deciding which goals to pursue.

LESSON 2
Making a budget
How to bring your spending under control, so that you get the most out of every dollar.

LESSON 3
Basics of banking and saving
Here’s how to get the best banking services at the best price, either online or off.

LESSON 4
Basics of investing
An introduction to making money in stocks, bonds and mutual funds.

LESSON 5
Investing in stocks
The market can be a great place to turn savings into wealth — or to lose your shirt. Here are some fundamentals of investing wisely.

LESSON 6
Investing in mutual funds
It’s a mutual-fund jungle out there. Here’s how to create a simple portfolio that works.

LESSON 7
Investing in bonds
Bonds can provide a steady and reasonably secure income, while adding ballast to your portfolio–but only if you really understand what you’re buying.

LESSON 8
Buying a home
Owning your home is part of the American Dream, but if you’re not prepared, buying it can be a nightmare. Here are some fundamentals for buyers and sellers.

LESSON 9
Controlling debt
You’ve got to know when to hold debt–and when to fold it. This lesson shows you how to accomplish your financial goals by making debt work for you.

LESSON 10
Employee stock options
More companies are handing out stock options, and to a much broader group of employees. This lesson gives you vital information on how to handle ESO’s.

LESSON 11
Saving for college
It’s not rocket science, just common sense. By starting early and investing regularly, your children may have a wider choice of colleges, and paying the bill won’t hurt as much.

LESSON 12
Kids and money
Up until they start earning a living, and sometimes well beyond that, kids are apt to spend money like it grows on trees. This lesson will help you put your children on the road to handling money responsibly.

LESSON 13
Planning for retirement
Achieving a comfortable retirement in the 21st Century requires a new approach to retirement planning.

LESSON 14
Asset allocation
The single most important thing an investor can do is practice asset allocation. Here’s how.

LESSON 15
Hiring financial help
What to keep in mind when when seeking professionals to handle your financial planning, stock trading, insurance coverage and tax returns.

LESSON 16
Health insurance
Whether your employer provides you with a group medical plan or you need to buy coverage on the individual market, understanding how health insurance works is the best way to get your money’s worth.

LESSON 17
Buying a car
Buying a car is like no other shopping experience. The choices seem to be endless. This lesson helps you sort through your options.

LESSON 18
Taxes
Among the long list of necessary evils we must encounter throughout our lives, perhaps the most constant — taxes — is also the least understood. But the whole process isn’t nearly as baffling as you may think.

LESSON 19
Home insurance
Homeowners’ insurance can be a nightmare. It’s costly, confusing, and unrewarding — until you have to use it. Here, you’ll learn how to purchase peace of mind now and later.

LESSON 20
Life insurance
Life insurance is critical to financial planning. It’s a necessity for anyone with dependents who would be affected financially by your demise. Yet life insurance is one of the hardest financial products to understand and it’s sold by agents who are sometimes more concerned with their commissions than your needs. This Money 101 lesson is all about a better way to buy life insurance.

LESSON 21
Estate planning
Americans are in the midst of one of greatest inter-generational transfers of wealth in history, yet few of us have done any planning for it. Here’s how to start.

LESSON 22
Auto insurance
Auto insurance can be a nightmare. It’s costly, confusing, and unrewarding — until you need it. Here’s how to purchase peace of mind now and later.

LESSON 23
401(k)s
It’s the most important tool you’ve got for retirement. Here’s how to make the most of it.