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Banking

Find A Good Financial Advisor

When building a financial strategy for yourself and your family, it’s a good idea to take the time to meet with a Financial Advisor, as advisors are experts in investing, taxation, estate planning, retirement planning, and insurance.  When you partner with a Financial Advisor, they will be able to help you build a strategy in order to achieve your financial goals.  Why try to do it all on your own when you can take advantage of professional guidance?

That being said, it’s important that you find a good Financial Advisor that has your best interests at heart.  Below are some things to look for when you are choosing a Financial Advisor:

*You need to feel comfortable with the advisor so you can work well together.

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February 21, 2010
Banking

Current Mortgage Rates and How They Affect You

To some, the interest rate is a rather meaningless number that seems to change on an almost daily basis. However, if you are applying for a credit card, buying a new car or applying for a mortgage, this number can significantly affect how much you are paying every month and over the term, or length of your loan. At the time of writing, mortgage rates are low and it is a good time to buy a home, or refinance an existing mortgage at a lower rate.

The interest rate is defined as the amount of money it will cost you to borrow a certain amount of money from a bank or lender. It is virtually impossible to accurately predict mortgage interest rates; one of the biggest factors that influence them is simple supply and demand. If more people are buying houses, more money is being borrowed, which means that lenders can charge higher rates to borrow the money. In a slow economy, less people are borrowing money, rates are generally lower to attract customers, and there is more money to lend.

The mortgage interest rate affects you both in the short term and the long term. A rate that is lower means that your monthly payments are lower; it also means that over the term of the mortgage, you are paying less. Whereas the traditional mortgage is taken out for a period of 30 years, a lower rate means that you may perhaps be able to take out a shorter term mortgage, of 20 or even 15 years. Also, it means that you will own your home outright, sooner rather than later – a big advantage.

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September 16, 2009
Banking

The Pros & Cons of Preauthorized Payments

For the most part, setting up preauthorized payments for your bills is a good idea.  It’s convenient, and it ensures that your bills will be paid on time.  When life gets busy you don’t have to worry about remembering to pay your bills. 

However, there is another side to preauthorized payments that you need to consider.  If you are on a tight budget  – living from paycheck to paycheck, you may not find preauthorized payments helpful.  Why?  Because if you suddenly realize you cannot afford to have the payment deduct from your bank account, you will have to go through the hassle of contacting your payee and they often need at least 2 weeks notice in order to cancel a payment.  You can often place a stop payment on the item through your financial institution but it will cost you.  So, if you really don’t know from month to month if you will have enough to pay your bills, I wouldn’t recommend setting up preauthorized payments.

Preauthorized payments are good for people who know they’ll have enough to pay their bills, and who don’t want to be bothered with having to pay them manually each month.   They are also a great way to tuck away money for retirement.  Set up a preauthorized payment into your retirement savings account on pay day and you won’t miss the funds. 

If you do use preauthorized payments, be sure to use an account that always carries enough funds so that you don’t ever get caught off guard.  You don’t want to be stuck paying hefty NSF (nonsufficient fund fees) to your financial institution.

July 9, 2009
Banking

Avoid ATM Fees

ATM use can be costly if you aren’t careful.  Before using an ATM, I would recommend first finding out how much the fees are going to be.  Check with your financial institution (FI) to determine what fees they will charge you.  Keep in mind that even if your FI doesn’t charge you, if you use another bank’s ATM the other bank will charge you!  If you discover that you are being charged for ATM withdrawals, either make one large withdrawal instead of several smaller ones, or consider using your debit card or credit card instead of using cash to make purchases.  You can also ask for cash back at local grocery stores and other retail stores.  ATMs certainly are convenient, but make sure that you are not paying excessive fees when using them.  Here are two questions to ask your FI:

1.  Am I charged any fees if I use your ATM machines?

– for cash withdrawals?

-for transferring funds?

-for balance inquiries?

2. Do you charge me fees if I use another FI’s ATM machines?  If so, how much?

May 20, 2009
Banking

Evaluate Your Bank Accounts

It is really important to take a close look at your current banking products to see if they are working for you.  For instance, if you look at your bank statements for the past few months, are you being charged monthly fees or transaction fees?  If so, contact your financial institution to see if they have a product that meets your needs that doesn’t charge fees or that is more suited to your use of the account.  Often financial institutions improve their products and it is up to you to make the most of these improvements.  Although you will often receive mailings from your bank or credit union, if you don’t pay attention, you could miss out on something that could benefit you.  That’s why it’s important to ask!!!

If you are a student or a senior citizen, check with your financial institution to see if they have products specifically designed for you.  Often seniors and students qualify for products without any banking fees.  Don’t be passive when it comes to banking.  Always look at your statements or better yet, sign up for online banking so you can keep on top of things.  Ask for a fee schedule so you are fully aware of the limitations (if there are any) on your account.  With a little work on your part, you can minimize (if not eliminate) your banking fees.

May 4, 2009