2011年12月27日 星期二

Tax Lien Certificates, 25 Most Commonly Asked Questions


1. Who can buy a tax lien certificate?

Anyone who has the cash to pay the auctioneer.

2. Will I be evicting someone from their house?

No, you are only paying that property owner's delinquent taxes. You are not foreclosing on them.

3. Will I own the property at some future date?

Possibly, all though it is rare that a property owner will forfeit their real estate. In Arizona, for example, 99% of all property owners pay (redeem) the taxes due to the county. The county in turn pays you interest plus a high rate of return. Nationwide, 95% of all tax lien certificates sold are paid (redeemed) by the property owner.

4. Why don't people pay their taxes?

1) People die and no one pays the tax, though heirs may pay the taxes later.

2) People run out of money or they become unemployed and have money problems.

3) Some people won't part with their money until the last minute. They believe they are making more by investing elsewhere.

5. Isn't the county or municipality required or obligated to find the property owner?

Not exactly. They send multiple notices via mail, and put announcements in the public records and the newspapers. That's all they are required to do.

6. What if the property owner dies?

The county will forward tax notices to the last-known address. Additionally they will advertise the tax sale. Often, heirs or family members step forward to pay the taxes.

7. How many tax liens can I acquire?

There's no restriction. You can bid and purchase as many as your finances will allow.

8. Whom do I pay?

You will give your money to a government agency - there are no brokers or intermediaries to pay.

9. Who will pay me my return?

Ultimately the property owner pays you when they pay their delinquent taxes. The government agency (the county or municipality that collected money from you) will contact you and ask you to return your tax lien certificate. Upon receipt they will send you a government check.

10. Will I have to contact the homeowners at any time?

No! You only do business with the government agency.

11. Will I have to foreclose on the property?

Statistically there is less than a 5% chance that you'll ever go through the foreclosure process. An attorney or government employee would do this service for a small fee as it is all controlled by the statutes of the state involved.

12. When do I get paid?

When the county or municipality collects from the property owner, they will notify you. Upon receipt of your certificate they will pay you.

13. How will I know what I'm buying?

First, you are not buying real estate. You are purchasing a lien on the real estate. Should you ultimately foreclose and get the property, then you own real estate.

14. What if I end up with the real estate? What do I own?

Here is how the process works. The county will publish a tax lien sale in the newspaper and public records. Buyer/bidders should research the public records (plot maps, assessment parcel and subdivision maps). The buyer/bidder should also purchase local maps and drive by the subject properties. The drive-by inspection would provide additional appraisal data. Title companies and appraisers, and real estate agents will provide more in-depth information.

15. What happens to the certificate when I buy it? (Do I take it home?)

Yes, you can put it in your safety deposit box or other place for safekeeping.

16. Are the certificates transferable?

Yes, you can assign or transfer the certificates to anyone you want.

17. Are the properties always improved?

No. The properties could be vacant land or improved property. Often large commercial properties are available in the tax lien sale.

18. Is it better to buy improved property or vacant land?

Improved property has the advantage of quick re-sale in many cases. Additionally, improved property will often have mortgage liens. Mortgage holders rarely let properties go to tax sale. Properties with mortgage liens almost always assure you of re-payment of your investment.

19. I want to get a property for sure, not just a tax lien certificate.

That's possible - but highly unlikely. Specialists find that certificate holders get the property in only 1% to 5% of all tax lien sales. We will cover this process in a later chapter in this book.

20. Is the process of purchasing tax lien certificates the same in all states and counties?

No, each state and county uses its own rules. The state legislatures write the statutes. However, they are subject to local (county and municipal) interpretation. Tax lien buyers should research each county before purchasing their tax lien certificate, and should become aware of the local rules.

21. What happens if the property owner does not pay next year's taxes when they are due?

You, the previous year's certificate holder, can buy the subsequent year if the property owner does not. This is like buying another safe high yielding C.D.

22. What if I don't want to buy more than a one-year certificate?

You aren't required to pay more than one year's taxes. However, it would probably be wise to note when the next payment is due and pay those taxes also. You'll get your money back when the certificate is redeemed, plus an exceptional rate of return. If you can't pay the subsequent tax lien, the county will issue a new certificate that they will sell at auction.

23. Is there any way to forecast when a certificate will be paid (redeemed)?

No! That's why you should buy more than one lien certificate. Different certificates will pay off at different times.

24. Can I buy before the auction-sale?

In some counties, prior certificates left un-sold will be available before the auction-sale.

25. Can I lose money buying tax lien certificates? It's possible to lose money in any investment anywhere and at any time. All investments have some risk, even certificates of deposit. However, as a rule, tax lien certificates are considered very safe investments.

The local government issues tax lien certificates and they are the senior liens on the property. The county and municipality have the responsibility to conduct the sale fairly, and they have the authority to award you the right to foreclose on the property if the taxes aren't ultimately redeemed (paid). At that time, you'll own real estate for the taxes you paid plus any foreclosure costs. But remember: When you purchase a Tax Lien Certificate, you are buying delinquent taxes, not real estate.




For more information on Tax Lien Certificates and how you can make money investing in them, please visit us online at [http://www.ultimatetaxlienguide.com] or http://www.tedthomas.com

Ted Thomas Bio:

Ted Thomas is a Florida based publisher and author of numerous money making Home Study Courses. Ted is the guy people go to when they want to improve their business marketing and sales results. Ted's Marketing Master Mind sessions are attended by the important people that make up the Information Marketing Industry. Ted is a recognized expert and in-demand speaker in the United States and in Canada on the subjects of Government Secured and Guaranteed certificates. His title "The Foreclosure Authority" generates many consulting requests. More than 100,000 students have success -fully completed Ted Thomas' Home Study Courses. Ted Thomas





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How Much Can You Earn With a Certificate of Deposit?


Certificates of Deposit (or CDs) are quickly becoming a preferred way to grow your income while protecting it from the ups and downs of the stock market. With a CD, you invest your money with the bank for a set period of time, and you earn interest on your deposit during that time. If you remove the funds before the CD matures, you'll face a penalty. You can look at a CD like a loyalty program to reward bank customers for saving. So how much can you earn?

There's No Limit to What You Can Earn with CDs

The amount you earn with a CD depends on two things - how long you invest your money with the bank, and how much of it you invest. Aurora Bank and many other banks have a wide variety of CD plans that let you invest as little as $1,000 for as short as six months and as long as five years. This makes CDs an ideal way to save for short term or long term goals. Whether you're planning a family vacation or helping to fund a child's college future, CDs can help you reach your goals faster.

Managing Your CD

Obviously, you don't want to choose only CDs for managing your money. Banks offer many different products and services to fit a wide variety of incomes and financial goals. You can even deposit different amounts into different CDs and choose varying maturity rates for them, so that none of your money is truly beyond your reach. But if you're looking for a safe, stable and reliable way to save for the future without the market whims changing on a daily basis, a CD is a solid way to reward yourself - just for saving!

Benefits of CDs

Because CDs are insured by the FDIC (a federal government corporation) for member Banks, they're backed by the strength of the U.S. government where other types of savings may not be. This means you can save up to the maximum allowed by the FDIC without worrying that it will lose its value tomorrow. Plus, the interest you earn on your investment is compounded daily and added to your balance each month, so you know your money is working hard for you. Assess your financial and savings goals and talk with your bank advisor today to learn more about how CDs can help you today and in the future.




Jess Hall writes out of Jersey City about different investment opportunities, including what to look for to find the best CD bank. Always looking for a trusted financial institution for advice and tips she tends to look to Aurora Bank more often than not.





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What Are Term Deposits, Government Bonds, Treasury Bills & Money Market Funds?


Financial instruments found in the debt market include:

1. Term Deposits

2. Government bonds

3. Treasury Bills (T-Bills)

4. Money Market Funds

5. Corporate Bonds and Debentures

6. Domestic Bond Funds.

In this article, we will only discuss the term deposits, government bonds, treasury bills and money market fund.

1. Term Deposits

Term Deposits are qualifying instruments for tax shelter and will share the following characteristics.

a) Short-Term Deposit: less than 1 year

b) Long-Term Deposit: to 5 years. Interest Rate: depends on length of deposit and competitive interest rates available in the marketplace.

Long-term investments are called Guaranteed Investment Certificates (GICs) and can be purchased for a lesser amount such as $500. They are also called a Certificate of Deposit (CD). Rates may vary as little as 0.10% amongst the deposit takers.

Term Deposits may be cashed prior to maturity, but this may incur a penalty. GICs generally cannot be cashed before they mature, although some deposit takers are now more flexible.

2. Government saving bonds

Country residency is required and guaranteed by the country of issuer.

a) Are registered bonds that provide protection against loss, theft or destruction.

b) Are not transferable.

c) Can be purchased for a minimum of $100 to a maximum of $500,000.

d)The interest is taxable and is competitive with GICs.

e) Mature in 10 to 12 years.

In Canada, Canadian saving bonds are issued as either R bonds or C bonds.

In US, US saving bonds are issued as series EE bonds, Series I Bonds.

The investment risk for government savings bonds Issued by Canadian government or US government is nil, since the bond is guaranteed by the federal government.

3) Treasury bills (T bill)

Treasury bills are a short term money market instrument and issued by the federal government in terms of 30, 60, 91, 182 and 364 days. They are sold by auction.

Banks and investment houses buy at wholesale in multiples of $5 million denominations. They then sell these T-Bills to brokers and investment dealers who break down their purchases into $1,000 lots.

T bills are sold discount to their face values and also sold on the secondary market and their value fluctuates depending on competitive interest rates at the times of resell.

The short-term nature of T-Bills does not cause a large exposure to interest rate risk, but to some extent there is an inflation risk.If a T-Bill is sold before maturity, any gain is taxed as interest.

4. Money market funds

Money market fund holds T bills and other short term money market contracts. Investors pool the investments through the mutual fund. Units in this fund can be bought and sold daily. Money market funds produce capital gains although their primary function is to generate interest income. Interest is generally paid monthly, while capital gains are paid annually.

The benefits of money market funds include

a) security of principal

b) liquidity.

c) eligible for plan registration

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:




Kyle J. Norton

http://lifeanddisabitityinsuranceunderwriter.blogspot.com/

http://financialinvesting12.blogspot.com/

All rights reserved. Any reproducing of this article must have all the links intact.

I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990





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2011年12月26日 星期一

Must Know Differences Between Fixed Annuities and Certificate of Deposits


As a prudent investor, I am certain that you have found out all there is to know about certificate of deposits and fixed annuities. If you have been looking for more information on both these investment products, then you have come to the right place. Here, I am going to give you certain differences and similarities between both these products to help you understand them better and choose an investment plan that best suits you.

When you take both these investment plans in the light of taxation, a deferred annuity has a deferred tax plan. Any earning made through this particular investment is not taxable until the earned amount is withdrawn, giving you a better advantage over tax control and opportunity for better growth. Certificate of deposits on the other hand are very much taxable and the earning through such investment plans are taxed every single year. Depending upon how much your CD has earned and depending upon the tax bracket you come under, the returns on the investment plan can definitely be affected to a great extent. Since any annuity is taxed as an income of an individual, it would be best if you could make the withdrawal during retirement when the taxes are low or when there is a change in the current tax plan that could possibly be beneficial at that point of time.

As for the safety of investments is considered, both fixed annuities and certificate of deposits are equally safe and safer than all other investment plans available. It would be best for you to know that unlike a CD, fixed annuities are not backed by government institutions. Therefore, it would be best if you could invest in a company that has an A or a better rating with one of the renowned rating agencies. It would be best to invest in an insurance company that has a lesser return but a higher rating than take a risk with a lesser rating and higher returns. A certificate of deposit on the other hand is definitely more secure since it is backed by FDIC or the Federal Deposit Insurance Corporation. They has protected CD holders to an upper limit of two hundred and fifty thousand dollars each. If your bank fails and if it is unable to pay your deposits back, the FDIC will reimburse you to the mentioned amount.




Darius has been writing online for a while now. He has a wide range of interests and topics that he likes to write about. You can check out some of his websites at http://www.antispamgratuit.net and [http://www.citronellabarkcollar.net]





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Investing in Certificate of Deposits


Certificates of Deposits (CDs) are typically low risk investments that can be easily converted into cash. It is a special bank deposit with a high rate of interest than a regular savings account. When you purchase a CD, like any other investment plan, you invest a certain fixed sum of money for a stipulated time period ranging from six months to five years or more. The issuing bank pays you interest on this sum at regular intervals. Upon maturity of your CD, you will get back your principal amount as well as your accumulated interest if any. However, if you redeem your CD before the maturity date, you will have to pay a penalty or forfeit a portion of the interest.

Besides local banks, now even brokerage firms and independent salespersons now offer CDs to investors looking for safer investments. These are known as 'deposit brokers'. On occasion, these brokers will negotiate a higher rate of interest for a CD by promising to bring a certain amount of deposit to the institution. These brokered CDs are then offered to the customers. In such an event ensure that you are getting the best certificate of deposit.

With the market growing exponentially, today, besides the conventional fixed CDs, there are also variable rate CDS that fluctuate with the market index, long term CDS and others with special feature CDs that investors can choose from.

When choosing a CD, one must consider the interest rate climate. If the rates are low, go for a shorter term so as not to tie up your money in the event interest rates rise. On the other hand go for a longer term by locking in the highest rate on certificate of deposit for as long as possible.

Some long-term, high-yield CDs have special "call" features. This gives the issuing bank the power to terminate - or call - the CD after a stipulated period of time. For example, a bank might decide to call its high-yield CDs if interest rates fall. But if you've invested in a long-term CD and interest rates subsequently rise, you'll be locked in at the lower rate.

When purchasing a CD it is essential to thoroughly understand all the terms and conditions offered. Read the disclosure statements and any fine print. Ask questions and clear all doubts before you invest in a CD. Below are some guidelines to help you make an informed decision:

Before you buy your CD, ensure the maturity date so as to not to have your money unduly locked for a long period of time. Also research any penalties for early withdrawal, how much, if at all you might have to forfeit in terms of interest or principal. Also, confirm the interest rate you will be paid and what interval you are likely to be paid. If you're considering investing in a variable-rate CD, make sure you understand when and how the rate can change. Some rates change according to a pre-determined schedule, while others depend on the performance of the market.

Check out call features if any. The right to call or terminate a CD lies only with the bank and not with you. If the interest rates fall, the bank might call the CD in which case ensure that you have received your principal and all accumulated interest. Since you do not have the option to terminate the CD, in the event the rates rise, you will be stuck with the long term CD with the lower interest rate. Redeeming this CD and getting out will also be difficult as you will now be forced to sell your CD at a discount.

Understanding some of the terms like "federally insured one-year non-callable". In a common misconception one tends to assume that this CD matures in one year. In fact it has nothing to do with the maturity date, only that the bank cannot redeem the CD in the first year.

If your CD is brokered, ensure who the issuer is before you invest, because insurance is limited to a total aggregate amount of $100,000 for each depositor in each bank. If your broker puts your deposit in a bank that already has some of your deposits, you risk not being fully insured if your deposits extends beyond the $100,000 insurance limit.

Brokered CDs are often held by a group of unrelated investors where each one owns only a small part. Confirm with your broker how your CD is held and ask for the exact title of the CD. Also ensure that the records reflect that the broker is merely acting as an agent for you. This will guarantee that your portion of the CD qualifies for up to $100,000 of FDIC coverage.

Check out the broker, his reputation and whether he has a history of fraud. This is more important as deposit brokers do not have to go through any licensing or certification procedures and are not subject to approval or examination by any state or federal agency.

CD is one investment that allows you to balance your risk and maximize your returns through laddering your CDs. You can do this by buying several CDs at one time but with different maturity dates from one to five years or more. Every year one of your CDs will mature and you can roll it over into a new CD with a longer term and higher rates. CD laddering is not only a sure means to protect you from fluctuating interest rates but also affords you the option of accessing some of your money in a short period of time.




William Brister

[http://www.moneyproguide.com] At moneyproguide.com we give you a comprehensive overview on financial planning strategies and the best plans for investing.





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2011年12月25日 星期日

How to Get More Than Safety With Certificates of Deposit


This may come as a surprise, but Certificates of Deposit, like those you see on that chalkboard at the bank every week, actually have the potential to yield higher than the advertised rate.

What you may already know: Certificates of Deposit come in all shapes and sizes.

You can buy CDs for as little as $1,000, all the way up to $100,000, in multiples of $1,000, and still be insured by the FDIC. This makes them one of the safest investments you could possibly find. They also have different expiration periods, such as 1 month, 6 months, 1 year, all the way up to 5 years. Naturally, the more time your money is invested, the better the certificates of deposit rate you can expect.

Traditionally, the difference in Certificates of Deposit rates between a 6-month CD and a 5 year CD was around 1.0 whole percent, but nowadays the margin is much closer, with interest rates on the rise as they are in 2006. At the time of this writing, the highest CD rate for both a 6-month and a 5-year CD is almost the same, around 5.50% APR each.

There is one other major factor that sets CDs apart. Some CDs are labeled "equity-linked," which means that they are tied to a portfolio that the issuing bank put together. Doing this offers the possibility of an even higher-yield return than advertised, but it also increases the risk in the case that the bank's portfolio goes down.

In my experience, this is almost always the case, even in growth markets. For much the same reason that I don't let brokers pick my stocks, I refuse to buy equity-linked CDs and do not encourage you to purchase one, despite the possibility of higher returns.

So how do I use non equity-linked CDs to get higher-than-advertised returns?

I build what is referred to as a laddered portfolio. This is where you can purchase a few different CDs with different expiry periods, traditionally one year apart, to combine and pay me the best rate of the day, every year. A major bonus is that you'll have access to a portion of your cash while you enjoy the longer-term rates.

That in itself was a major reason to ladder your CDs when the rates were structured the typical way. But now, as federal interest rates are going up, the tactics are a bit different.

There may not appear to be anything to gain at first by the fact that we're achieving a long-term rate while receiving cash out in shorter intervals, since the long-term and short-term rates are now so similar.

The twist is using the ladder at smaller intervals, to approximate a 1-month CD!

A closer look at laddered CDs in 2006

A couple of years ago, when Greenspan was busy and interest rates were still declining, anyone speaking about a laddered CD portfolio was describing 5 or more FIVE year CDs, bought with expiry periods one year apart. (Example: the first CD expired in October '02, the second in October 03, etc...)

This gave the traditional investor the ability to obtain the five-year rate but still have access to his money, at least a fifth of it, every October.

Today, however, you can simply buy 1-year CDs to achieve the same effect, because there is no difference in the 1-year and 5-year rate of return. (So I doubt anyone is even buying 5 year CDs right now.)

Therefore, the game has to be played differently, and it still works great on the monthly, instead of yearly cycle. Now you can walk into your bank and buy 4-month & 6-month CDs, although you may need to purchase once every other month to keep the cycle seamless. Doing so will give you access to a portion of your cash as often as monthly, but you'll be getting the 4 or 6 month rate of return instead!

I highly encourage you to read all you can about Certificates of Deposit and draw your own conclusion before making any investment in these, or any other, form of investment. In keeping with that tradition, I would like to invite you to drop by my free website for Certificate of Deposit resources. It offers a large volume of facts and figures on CDs that isn't published anywhere else on the web at all.

When was the last time someone showed you a way to beat the bank with 100% safety on your money?




Dennis Gregory is a full-time investor with growing portfolios composed of every major type of financial asset. Learn from his experience at his free Certificates of Deposit rates and resources [http://www.certificates-of-deposit.info/Highest_CD_Rate.html] website; [http://www.certificates-of-deposit.info]





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Open Your Eyes - Small Banks Are Offering Better Certificate of Deposit Rates Than Bigger Banks!


Are you not getting the best interest rates for your deposits made? Then you are making the same MISTAKE made by thousand others. Yes, you are not opening your eyes to look around the SMALL BANKS that are offering HUGE INTEREST RATES.

A lot of small banks which are present in small towns are giving best certificate of deposit rates when compared to the giant banks. These banks also take deposits only from the people who are staying nearby. You should also check the rates and the terms and conditions to give best value for your investment. The types of Deposits that are available are for:

1 year
3 month
6 month

Some of the best bank CD rates are:

A bank based based at Reynolds, "State bank of Reynolds" has a Deposit for 12 months that pays a rate of 2.5% APY. Another bank First Chatham Bank is paying around 1.87% APY for a CD of 12 months. The minimum deposit for this investment is $1000.

Another bank, Harris Bank based at Chicago pays around 1.5% APY for a 12 month Deposit. The minimum deposit for this investment is also $1000.

In case if you need the best rates, here is the details. Broadway federal bank which is based at Los Angeles and has 5 branches in Los Angeles is paying good returns for the Investments made. For a 24 months deposits, it pays 2.02 % APY and for a 36 months it pays 2.53 % APY.

So get the best returns for your investments by investing in the above banks. You can also get more details on the best rates.




Visit http://www.bestsavingsaccountrates.net/3-month-cd to get more detailed information on best CD Rates.
Balajee Kannan
http://www.bestsavingsaccountrates.net/





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2011年12月24日 星期六

The Truth About FDIC and Certificates of Deposit (CDs)


When you are told by a banker or receive a promotional letter from a financial institution regarding a special Certificate of Deposit (CD) rate, please think before you act. Most bankers love CD's simply because it will lock your money into a product that will charge a substantial fee if withdrawn prior to maturity. In addition most bankers get a commission for new money deposited into a CD. When I was a banker, I had always been one of the few that disliked CD's for many reasons. I find them only useful for very few things. Since I am no longer a banker I want to give you the dirty truth behind CD's that most do not know and what is your REAL rate of return from those "promotional" CD's you find online or in your current bank.

First off, CD's are a fixed income vehicle that is backed by the FDIC. Many people trust the FDIC for its insurance and the deposit is in fact guaranteed (up to $250,000 per DEPOSITOR until 12/31/2013). What you most likely did not know is how you get paid and when. You are covered up to this a certain amount but the time it takes to pay you however is never documented. From my research and what I was taught years ago as a banker is the following: The FDIC can take up to 99 years to pay (not a typo)! There is no public documentation of how long it takes to pay however based on the fact that if ANYTHING catastrophic was to occur financially, the FDIC will have time to pay. So if you expect immediate payment with a simple claim of lost funds from an FDIC insured product, you are sadly mistaken. The FDIC is also an INDEPENDENT AGENCY of the federal government. They receive no congressional appropriations (money) and it's fully funded by the premiums (payments) from banks and thrift institutions pay per deposit coverage as well as earnings from U.S. Treasuries. Most people do not have to worry however since most major banks are more than willing to buyout smaller/failing financial institutions in order to acquire more clients and show positive PR (public relations) to the masses. This has shown more than enough evidence with what has happened in 2008-2009.

FDIC products are fully taxed. If you purchase a CD, the growth will be fully taxes (state, federal, local) just as if you have earned this income from working. This is based on your tax bracket which is as follows (2010):

Bracket / Single / Married:

10% Bracket / $0 - $8,375 / $0 - $16,750

15% Bracket / $8,375 - $34,000 / $16,750 - $68,000

25% Bracket / $34,000 - $82,400 / $68,000 - $137,300

28% Bracket / $82,400 - $171,850 / $137,300 - $209,250

33% Bracket / $171,850 - $373,650 / $209,250 - $373,650

35% Bracket / $373,650+ / $373,650+

Now, most of you that purchase CD's are aware of this. However, what most fail to realize that CD's do NOT catch up with the rate of inflation. The rate of inflation is measured by the CPI (Consumer Price Index, I have described what this details on a previous article which can be found in my previous post). For whatever investment, income, or interest you earn to not match or exceed the CPI, you are losing money long term. This is a volatile index but long term averages around 2.5%. This means you must earn either 2.5% or more AFTER TAXES long term in order to maintain your cost of living life style.

For example: You are in a 25% bracket and have purchased a 12 month CD at 2% APY for $50,000. You earned $1,010 from the interest which equals 51,010 but you have to pay taxes on the growth (your tax bracket) which will equal to $253. You have earned after FEDERAL taxes $757 (some state and local taxes may occur that will lower your return even further!). Now here is where most people do not pay attention to, the CPI for the year. Let's be fair and say it is 1.6% for the year (less than the average, just to make a point). You would need to earn $800 AFTER TAXES from that 50,000 in order to keep up with the rate of inflation. Your real rate of return is negative $43. In order to keep up with this rate of inflation you would need to find a CD with the rate of (approximately) 2.8% or higher depending on what state you live in. Please remember that we are talking about a tax payer in the 25% bracket which is considered the national average. These rates become considerably higher if you're considered "High-Net-Worth".

Not all CD's are bad. If you are one of many that cannot withstand volatility what-so-ever than it is best to purchase CD's within a IRA this way taxes are deferred or Roth IRA which no taxes are paid after withdrawal (please see my article on IRA's for details). Also, CD's are probably the best product to purchase if you are planning on using the money short-term and cannot risk ANY volatility. Short-term can be considered 2 years or less. I highly recommend CD's for home buyers (in 2 years or less) since the deposit in your home are tax deductable therefore the taxes on interests earned on a CD will be taken care of.

There are many considerably safe products that have low maturity dates and have considerably better returns than a CD. In the end, before you purchase the CD, know what your intentions are and when do you think you're going to need it. If it's for educational purposes, there are products that can be a better option for you and your child (529 plans, UGMA/UTMA for example). If it's for medical bills, there are products out there for that as well (Health saving plans). The point is to use a CD only for short term purchases that can be tax deductable or within tax favor accounts. Many people use CDs to prepare for a birthday or holiday in that year and that is ok as well! The key is "short-term". If it is for emergency funds, your best bet is to simply put it in a money market where there won't be any implications or charges for early withdrawal.

I hope I was able to educate you on CDs and now more aware of what you are getting into. If you have any questions or concerns please feel free to contact me!

Resources:

FDIC: http://www.fdic.gov/about/learn/symbol/index.html

SIFMA Calculators: http://www.investinginbonds.com/story.asp?id=207




Financial Consultant, Risk Manager, Insurance Agent, and Retirement Planner here to give honest opinions on the current financial trends. (*Please note: If you have ANY questions, please feel free to contact me. I will be more than happy to chat with you!). [http://www.MichaelAponte.Biz]





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What Are the Pluses and Minuses of Investing in Tax Lien Certificates?


Tax lien certificate investing is something that all investors in real property ought to consider. There are lots of benefits to buying tax liens, however there are some dangers that it's good to bear in mind.

States use either or both a "tax deed" system or a "tax lien" system. Most states in the USA and provinces in Canada have a system for gathering unpaid real estate property taxes. If a house owner or commercial real estate proprietor fails to pay property taxes, the county will issue a tax lien or tax deed on that property. The local authorities could then sell a tax certificate at public sale to acquire the necessary overdue tax revenue. Other states have what are called tax deeds where the taxing authority sells the property to recoup the late taxes.

Tax Liens versus Tax Deeds

1. In tax deed states, delinquent property taxes are recovered by the county through the selling of ownership of the property to the highest bidder at public auction. County governments will sell total possession and ownership rights to the winning bidder. In some cases, the rights to the real estate are assigned at some predetermined time period within the future. Normally, the property is sold for late taxes, interest, charges, penalties and court docket costs. Many states give real estate homeowners an opportunity to regain control of their property after the public sale by paying the late property taxes, interest and other costs within a specific redemption time frame.

2. In tax lien states, after real estate property taxes go unpaid for a particular time period, the delinquent taxes are put up for sale at an auction, or tax sale. It is only the amount of the tax claim on the real estate property that is sold. The sale is held by the county (in some instances cities). The successful bidder pays the overdue real estate taxes on the real estate property. In change, they receive a certificate that pays them a rate of return of 18 percent curiosity a year, or extra, on their investment. Moreover, if the property proprietor doesn't redeem the real estate property inside a selected time frame, the property may be foreclosed on and the investor can end up with ownership of the real estate. So tax liens are an extremely engaging investment opportunity.

What are the pros of buying tax lien certificates?


The maximum yield on a tax lien certificate is quite lucrative compared to other investments. Returns are usually someplace round 18 percent or more per year. In some states the interest rate is 24 percent annually. The investor might gain full ownership of real estate that has a market value considerably greater than what the investor paid for the tax lien.
Tax liens have precedence over different liens or encumbrances, such as mortgages, judgments, deeds of trust and other liens. This means you're first in line to get your investment (in some states federal and state tax liens share equal precedence).
This type of investment is without doubt one of the most secure you can make. The majority of certificates are redeemed earlier than the property is foreclosed; thus, the risk of loss is minimal.
If the lien certificates are redeemed by the delinquent property owner, you possibly can acquire a double-digit return. If not, you possibly can foreclose and procure full ownership rights.
It is the responsibility of the county to collect all fees - it is not your problem.
The tax lien is usually for a small fraction of the real estate property's market worth, so your investment is very secured.
The investor will not be liable to the property owner. That is clearly an advantage, as there are a rising variety of lawsuits from real estate property owners.
The investment is low maintenance
Few people have ever heard about tax liens. Even fewer individuals figure out how to spend money on them. Within the United States there are thousands of counties which have tax-lien-certificate auctions every year. Many states have so many tax lien certificates that you would be able to buy the ones that counties didn't promote at public sale by mail (also known as over-the-counter sales). No one can cover all the of counties that have tax lien sales. This virtually ensures that the availability of certificates will be much better than the demand.

What are the cons of investing in tax lien certificates?


Payment is normally required at the time of purchase or inside a really quick time period afterward (typically no more than 24-seventy two hours). Failure to pay the total amount leads to all lien certificates purchased by the investor being canceled, and will end result in the investor losing his/her deposit and/or being barred from future sales.
In lots of states, additional actions have to be taken to protect the lien certificates holder's rights after purchase of a lien. Failure to conform exactly with these necessities may make the lien certificates worthless.
Tax liens on "alternative" properties are quickly bought by major institutional buyers having enough time and resources to research beneficial properties versus worthless ones, and who can afford the occasional poor choice. Smaller liens often involve properties which can be typically nugatory (comparable to odd strips of land).
Assessing the real estate. Since you might be buying the lien, not the real estate property itself, it's tempting to go ahead with out bothering to view the real estate. Nevertheless, the security and worth of the lien certificates are primarily based on the actual property. So you do must see what sort of property it is.
Not like a certificate of deposit, tax liens are illiquid. They can't be "cashed in" (resold to the taxing authority), but must be held till both they are repaid or the holder takes motion to foreclose. (It's potentially okay, nonetheless, to assign one's interest in a tax lien certificates to another party.)
Some specialists tout tax lien investing as a method of acquiring real estate property at extremely discounted prices. In observe, except for very rare situations, liens of any value are redeemed properly before the property will be foreclosed (especially the place a mortgage is concerned; the mortgage holder is secondary in line to a tax lien holder but, upon fee of the lien, the mortgage holder would then become the primary lien holder).
If someone successfully obtains the deed to the real estate property, the real estate property may have environmental problems for which the new owner will probably be responsible. Depending upon the state by which the property is situated, this might be very disadvantageous; the investor might need to pay a big amount of cash to have the issue taken care of, or is likely to be fined day by day till the issues are fixed.
Deeds obtained are normally quit claim deeds, which do not provide insurable title. The owner would then need to file a quiet title motion to obtain marketable title to the property, which entails further cost.
There might also be other governmental liens that the investor must pay off when attaining title to the real estate. These usually are not a part of the lien sale and stay even when the lien holder acquires the real estate.
If the owner of the real estate property declares chapter 7 bankruptcy, the courts may decrease the rate of interest to be paid, or might discharge half or all the lien, leaving the lien certificates holder with nothing. The tax lien certificates holder is often given excessive precedence on this situation.

The good news is that most of these dangers may be averted by doing affordable analysis before investing. This makes tax liens one of the safest and most profitable forms of investment. If you the investor fall into any of these traps after reading this, you solely have your self to blame! Happy and Successful Investing!




Mark Schwartz writes numerous articles on tax lien investing, buying and selling structured settlements and annuities, and real estate investing.

To learn more on how you can profit by investing in tax lien certificates please visit his Tax Lien Investing website and blog at Benefits of Tax Lien Certificate Investing.

P.S. His YouTube channel is at markvschwartz1





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2011年12月23日 星期五

HSBC Certificate of Deposit Rates - Tips to Invest


Going for an HSBC certificate of deposit is not an easy task. It is not like any other normal investment being done. You need to look into a lot of things before you make the final investment by purchasing a certificate. Certificate deposit involves a host of rules and norms and you need to go through them well before making the final planning. Remember, your money is your hard earned asset and thus you should know how to spend it or invest an amount in the wisest way. However, for this you need to ask yourself several questions and perform a wide market survey. Both are equally important.

First you need to consider your requirements in case of making an HSBC Certificate of Deposit. Do you need money on a regular basis? Then buying a certificate would not be the best choice. A certificate suffices your requirements in the long run. They are not ways of making regular cash incomes. For say you need to think of something solid for your child's education. Or you want to buy a property after 10 years. In such circumstances a certificate purchase would be just apt for you.

Such investment types do involve several risks. You have to take notice of that. It is true that no risk no gain but you need to contemplate better. You cannot just risk your hard earned cash straight away. First, you must make comparisons. You must gather all necessary information about the certificate investment plan you are going for. After you know all the details you can make a move confidently.

In what time would you require a bulk cash amount? Say after three or four years or you have the tenacity to wait for a longer time. The more you would wait the better yield the certificates would make. Moreover, an HSBC Certificate of Deposit comes with a fixed time rate. If you want to withdraw cash before time it would be a definite loss on your part. You need to keep in mind one thing - such a type of cash investment in form of certificate purchase is not for a regular source of income. These are for your better gains in future.




Next Step: Find the Latest Certificate of Deposit Rates.
Click here for the ------>>Latest CD Rates.
Click here for the latest ------>> Savings Account Rates.
Balajee Kannan





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Should You Save Money With a Certificate of Deposit?


There are numerous ways to save money, but there are several things that will determine which savings vehicle you will choose. Most people save and invest their money in several different ways. No one method is best for saving. How long you want to keep your money in the account, how accessible you want it to be, what you want for a return on investment and what your tolerance for risk are just a few of the things that will help determine what savings vehicle is best for you.

A certificate of deposit is an option for saving money. This vehicle locks your interest rate for a designated period of time. You will not be able to withdraw the money for this period of time, but the interest rate is higher than a traditional savings account. If you are not sure that you can keep your money in the CD for the fixed period of time required, you may want to opt for a money market account.

You do have options with CDs when it comes to managing the interest that the savings plan is accruing. You can have the interest deposited into one of your accounts periodically, usually monthly or quarterly. Some CDs have the option of being added back into the CD or paid at the end of the CD term. You must be aware that some CDs will rollover automatically and you must make arrangements to withdraw the money at the end of the term if that is your choice.

There are many savings vehicles and they all work for specific types of investing. CDs are a short to medium term investment. If you are looking for a long term investment with a better rate of return, you may want to consider a different type of investment.




Arlene is an author that enjoys writing about health and finance. You can visit her latest site at http://cheapdanskoclogs.org where you can find information on cheap Dansko clogs.





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2011年12月22日 星期四

What Are the Advantages of CDs (Certificate of Deposit)?


Certificate of Deposit is one of the best manners that are often resorted by many in the country - it is often considered as a safe investment. Plenty of choices and options are already in existence on the niche of investments. However, the risks associated with CDs, in comparison to the other types of investment procedures is marginal. This is the primary reason that attracts a vast majority of the population. We always select the best investment plans out there, because we wish to make good use of our hard earned money.

Allow me to emphasize on the returns that can be achieved with CDs. It has become quite customary for financial experts to compare CDs with a savings account. According to them, CDs and the saving account function similarly. However, the profit that is bestowed to you is always greater if you pick out a certificate of deposit plan. In fact, the same investment procedure is advertised with much pomp and show in the social circles by various investment agencies. Have you ever wondered, why many financial organizations publicize such investment schemes? If you look closer, you will realize that you are in turn providing them with a great favor - this will be explained in the following paragraph.

The institution often utilizes the sum that is deposited as CD for various other purposes. Think about the bigger picture. Hundreds will opt for the same investment plan. CD is often associated with a maturation time-period. In simpler terms, the longer the cash remains with them, the better it works out for the financial organization. What do they do with your money? They will invest on other ventures and a part of the profits will be handed over to you. This is how the entire system is noted to function.

Starting a CD account with the nearest financial organization is simple. You will have to complete the preliminaries, which include filling up certain forms. The interest rates are often fixed, and you will be given two options to do away with the interest amount. If you would like to spend the amount on consumables, you can request for the same. Or else (this is what the intelligent is noted to do) you can ask the same organization to deposit the same interest amount to the existing CD deposit. In effect, you are simply multiplying your returns for the greater good.

Now that you might have understood how CDs perform, there remains another vexing query. Which is the best CD plan to be chosen? I will quote the words of financial experts - always stick to those plans that have a high maturation period. As with all the other types of investment plans, high volatility is subjected to the certificate of deposits. In simpler terms, you will be given the option to fix the interest rates. The exact opposite is also prevalent; but it is considered too risky for a nonprofessional who has limited funding sources.

The internet is the best place to initiate your search for the best CD plans. Quite often, quotes will be provided to interested customers. You will have to compare the quotes and come to a favorable decision. Although the niche is slated to be "risk free", the existing economic conditions play a pivotal role in deciding the feasibility of the CD.




Brittany Stanzas is a professional finance writer who works for http://www.zuuply.com if you want more information on CDs feel free to check it out.





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What Are Certificates of Deposit and How Do They Work?


Certificates of Deposit (CD) are monetary instruments that function like a savings account. Interest is paid on the initial investment at a rate dependent on the length of time the CD is held. One decides on the length of time when the CD is purchased. Common CD lengths range from as short as six months up to ten years or longer. CD interest rates also vary over time and change weekly. Purchasers must do research and compare rates to find the best CD.

CDs are sold via banks and some other financial institutions. What the institutions do with the money is up to them and most generally invest it in stocks or bonds or use it in the form of loans. A portion of their profit is returned to the purchaser in the form of interest and the rest the bank keeps as their profit. CDs are very safe investments making them a good way to balance an investment portfolio.

Occasionally, to attract many investors, banks will offer a higher interest rate on shorter term bonds when they are in need of a quick infusion of capital. Purchasing these CDs offers not only the advantage of higher interest payments, but the ability to quickly reinvest your capital in other opportunities. Investors should always be on the alert for such deals.

When the CD reaches maturity, meaning that you can redeem it for the full interest amount, you have two options. You can either cash the CDs or do what's called a roll over and reinvest the CD for an additional period of time. Upon maturity, the CD will automatically roll over if you do not cash it. When you do a roll over, you can select a new length of time if you choose. Depending on the CD, roll overs will also allow you to defer any tax payments. This is especially beneficial to people nearing retirement age.

CDs are also a very good form of collateral. Banks and other lending facilities will gladly accept a CD as a form of collateral on a personal loan. In rough economic times, when loans are hard to acquire, this may be a perfect answer to your financial needs. Your Certificate of deposit will continue to collect interest while being held as a form of collateral. Most banks will offer very low interest rates on personal loans when a CD is used this way. Private lenders will also accept this type of collateral on a personal loan, but may not give as low of interest rates on the loan as the original bank that issued the CD.

CDs can also be used as a form of collateral against a loan just like a car or a house. This is an excellent way to secure a loan as the CD will continue to accrue interest as you pay off the loan. Interest rates on loans secured with CDs are generally very low since there is little risk involved.

In summary, CDs are a low risk, useful way to save and invest money. They offer diversity to any investment portfolio and can be used to secure loans while they are still earning you interest. Do the research, find the best rate, and purchase some CDs soon.




Todd Fletcher has been involved in financial analysis since 2007. Visit Ratelines.com for more of his advice on money markets.





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2011年12月21日 星期三

Safety Deposit Boxes Give You Peace and Security


Banks offer various services aside from accepting deposits and giving out loans. They also provide money transfer; accept bills payments, issue bank checks, drafts and traveler's checks, and a lot more. The banks also do not just secure your cash but also they can secure your documents, jewelries and other personal belongings through safety deposit boxes. Actually there are also other institutions that offer safety deposit boxes, among others are the post offices.

Safety deposit boxes are boxes or containers that are being safe kept inside a vault. Though the banks or any other institutions may have limited liabilities relative to thefts and other crimes that may occur while your possessions are inside the safety deposit box, still many people opted to keep their valuable possessions inside the safe box. This is relatively because of the high security measures that a bank or any other institutions implement compared to the safety and security that you can provide in your own place.

You can put anything you want inside the safety deposit box. This can be a set of precious jewelries, gemstones, valuable metals, other currencies that are so valuable to you, certificates of deposits and securities, and other important documents like your property title certificates, birth certificates, and wills. A hard drive or any computer data storage can also be secured inside the safety deposit box.

Safety deposit boxes come in different price ranges and sizes. In order for you to avail one, you have to pay a rent and you will be given an access key combined with another key that result to dual control to access the box. Your signature and sometimes even a pass code are also being required before you have an access to open the box. In some other banks and institutions, an electronic pass code or biometric security measures are being implemented. The main factor here is the control always requires a counterpart. You can not access the box all by yourself without the counterpart from the bank or the institution you are renting with.

Although in some cases like hotel rooms, cruise ships, resorts, and other facilities of the same nature, offer safety deposit boxes that will only require a single control that will only be known by the user. This is on a temporary basis while you are just staying in their facility and this will only be at your own risk.




We work on Banking, Internet banking, Banking securities, visit me at Regions online banking reviews





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What Is An IRA Certificate Of Deposit And How To Use It In Your Retirement


There are many different financial products that can help an investor save for retirement. One of the most popular investment products is the individual retirement account, also known simply as the IRA. IRAs can come in several varieties. There is an IRA for every type of investor and his or her tax situation. Traditional IRAs allow individuals to invest in usually mutual funds on a pre-tax basis where the investor would be taxed at the time of withdraw. There is also a Roth IRA which enables an investor to use after tax dollars to invest in a mutual fund and withdraw all of the capital gains, interest, and dividends tax free in retirement. There is also a self-directed version of both the Traditional and Roth IRAs where investors can dictate the types of investments that are held in the retirement account. An investor can hold individual stocks, bonds, certificates of deposit, real estate, options, and a host of other investments in an IRA.

What Is An IRA Certificate of Deposit?

Inside an IRA, an investor can own a certificate of deposit which can also be referred to as an IRA CD. An investor can own either a traditional IRA or a Roth IRA with certificates of deposit inside the accounts. An IRA CD is simply a regular certificate of deposit which is contained within an IRA account earmarked for retirement savings. Most brokerage firms can help investors set up self-directed IRA and purchase the securities such as a certificate of deposit to place inside the account. With a Roth IRA CD, you receive the tax advantages of a Roth IRA with the enhanced security that comes from owning a certificate of deposit.

How To Incorporate IRA CDs In Your Retirement Nest Egg

While most retirement accounts contain stocks and bonds, certificates of deposit can provide a larger rate of return on an investment portfolio's cash position rather than just parking the money in a savings account. Using an IRA, whether it is traditional or the Roth version, can help you shield a portion of your assets from taxes either now or in the future.

An Individual Retirement Account (IRA) is one of the most versatile investments a person can own. The limits of what an investor can do and invest in with these types of accounts are almost only limited by his or her imagination. Certificates of deposit inside an IRA provide investors an additional alternative to the standard savings account.




Hank Coleman is the founder of several financial blogs, focusing on topics such as how plan for retirement and find profitable investing opportunities. He is an entrepreneur and professional in the government sector. Hank holds a Bachelor's degree in Business Administration, a Master's in Finance, and is currently studying for his Certified Financial Planning (CFP) credentials. Always looking for a trusted financial institution for advice and tips he tends to look up information at http://www.discoverbank.com more often than not.





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March 2010 (Update) - Best Certificate of Deposit Rates


Okay, first, sorry that this has not become a monthly update yet. Good news is we have been so busy helping people I don't have much time to write. However, here we are with some commentary for the current best rates we can find. Also, have a few ideas on how to maximize your rates.

Outside of CD rates continuing to fall, not much has changed in the real world. The longer the Fed keeps rates low, the lower CD rates will fall. Once the Fed begins to signal higher rates, CD rates will rise. Its anybody's guess as to when that will be. Another pressure on the CD rates is the national rate cap that the FDIC has imposed.

The fed has continued to successfully sell our debt around the world. This has helped keep treasury yields and thus government backed bond yields low. Today the 2-year stands at 0.95%, the 5-year at 2.39%, and the 10-year 3.69%. This is quite a cliff we are over. higher rates now would short circuit a very weak housing sector and probably give us a double-dip recession. Low rates however give too much freedom for hedging and thus creating big bubbles that can burst.

Fed Funds are still between 0% and 0.25% For 1-year CD rates we saw an average decrease of about 0.35%. On 5-year CDs, the decrease has been around 0.25%. The economy is still very shaky. The recovery (if you can call it that) is likely to last years. The government is trying to stall foreclosures, but with unemployment near 10%, a lot of people just can't afford a payment no matter what kind of modification they get. I recently read a statistic that 70% of those that have received a modification are back in the red again. Commercial real estate and sovereign debt problems (Greece, Dubai) are the ones that are seen to be next crises.

Soon after the larger banks began paying back TARP funds they returned to paying huge bonuses. I'm all for paying paid well when you do well, but these bonuses aren't based on long-term value for the company or investor. That is where a serious disconnect is.

Okay, so for some rates. Alliant Credit Union continues to have "high" 1-year rates at 2.10% APY. Their closest bank competitor is a 1.75%. Pentagon has a 3Y at 3.00% and a 5Y at 3.50%. Their penalty for early withdrawal is 6-months of interest. This makes for an attractive play if you think rates will be considerably higher in 2-years. Bump up CDs can also be good. These are usually 2 - 5yr CDs with options to move the rates up as the bank moves the rates up.




For more Bank Certificates of Deposit come on by.

Chris Duncan is a FINRA Registered Representative. He specializes in helping clients find the best and highest CD rates nationwide. His clients include individuals, financial institutions, corporations, and public agencies. Visit us at http://www.jumbocdinvestments.com





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2011年12月20日 星期二

How Does Your 401k, IRA, and Certificates of Deposit Compare in Their Value to You?


What will your retirement account look like when you reach that age when it will be your only means of living? Well let me tell you, there is a surprising kick of reality when most people consider their final forecast for their retirement savings. In this article, we will compare the three scenarios mentioned in the title, and see how well they will each provide a retirement.

But lets ask a question, first. When you consider the long-term value of your retirement savings, does it look like you will have poor living conditions when you retire, or doe is look like you will be well off? Does it even look like you will be able to retire at all as you have planned?

With the current losses that have been imposed on those having a 401k, it becomes obvious that we need to use other means of securing a nest-egg for our golden years. And there are several options aside from having a 401k.

Considering the Advantages of a 401k

Concerning the 401k, the advantages are that we can have our money taken out pretax, while we are still in a larger tax bracket, and then withdraw the money at retirement when we are in a lower tax bracket. And to top it off, the company we work for may even match a certain percentage of our contributions.

But lets consider our 401k contributions a little further. To make it simple, if you make $50,000.00 a year and you contribute 3%, your total contributions for 30 years, that would be a grand total of $45,000.00 ($1,500.00 x 30). And if your company matches that, your total contributions for 30 years would be the total of $90,000.00 ($3,000.00 x 30). That is not a lot of money to retire on. And considering that you may be able to earn compound interest-if there are no great losses in the meantime-on that money, you can easily have over $100,000.00. But that is still not enough. The average person will probably need approximately $500,000.00 in the bank to have a descent retirement.

The Benefits of an IRA

The benefit of an IRA is that you can contribute your money after tax, and, therefore, you do not have to pay taxes on it when you retire, which can be a nice feature. But you need to remember that you will probably be in a lower tax-bracket when you retire. And so you are left with the choice to either not save the money because you do not want to pay the higher tax-which you will do anyway, if you do not save it-or you can save the money in a way that is not as good as earning interest on the non-taxed portion of your money, as your 401k does.

The Benefits of a CD

Another way to save money is a CD. And similar to a 401(k) plan, a CDs money is tied up. (However, it does guarantee a higher interest than you will get from a regular savings account.)

The Best Opportunity to Accumulate Money

But the best opportunity you can have is owning a home. If you own a home, or if you even purchase a home now, you can use the banks systems to pay your mortgage off in less than half the time. (That is better than the bi-weekly program.) Then you can begin to save the money you would have paid in your mortgage for more than 15 years and combine it with your 401k savings and earn interest on it instead of paying interest to the bank.

This will provide you several advantages. You will save tens of thousands of dollars in interest on your mortgage loan, after which you can then start saving what you would have paid to the bank in mortgage payments, and then you can even begin to contribute at least most of it in your 401k and gain compound interest on this money. This could quite possibly more than double your retirement savings. And to top it off, you will own your own home free and clear.




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Personally, Alfred has worked in the financial field for almost 15 years.





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Internet Bank Certificates of Deposit


Online banking or Internet banking is a very convenient way of managing money, especially if you need to make transfers, check your balance or pay your bills after banking hours. You can print your billing statement in the comfort of your own home. You can access your account anytime and anywhere you may be. Nowadays, you can do almost all your banking transactions online with ease. You can even take advantage of online certificates of deposit.

What is an Internet bank certificate of deposit?

A certificate of deposit (CD) is similar to a time deposit account. With a CD, you acquire a fixed rate over a certain period of time - usually either three months, six months, or one to five years. A CD is designed to be kept in the bank until maturity, which means that the money can only be withdrawn when the time agreed upon has lapsed. There is a substantial penalty if you withdraw before maturity.

Because CDs are kept longer with the financial institutions, you can acquire higher interest rates, especially if you withdraw the money only after maturity. The larger the principal, the higher the interest rate. The longer the term or the smaller the bank, the higher the interest rates, too.

An Internet bank typically informs you of your CD balance periodically. You can instruct the bank to mail you the interest, deposit it directly to another account or add it to your CD account. You can opt to withdraw the whole amount including the interest once maturity is reached, or you can choose to deposit it into another CD account. It is a common practice for financial institutions to automatically continue the CD if there were no prior instructions for the amount to be withdrawn.

The edge the Internet bank CDs have over traditional CDs is accessibility. You can typically view your CD?s performance online anytime you wish, which is not the case with CDs from traditional banks.




Internet Banks provides detailed information on Internet Banks, Internet Bank Accounts, Best Internet Banks, Offshore Internet Banks and more. Internet Banks is affiliated with Internet Business Banking.





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2011年12月19日 星期一

Jumbo Certificates of Deposit Rates - Benefits of High CD Rates For Maximum Returns


Jumbo certificates of deposits are extremely useful if you who want MAXIMUM RETURNS by investing a considerable sum of money into a CD account. This kind of account is particularly useful if you are looking for HIGH RETURNS i.e. some millions of dollars with low risks. Jumbo Certificates of deposit rates vary widely for investments based on the amount that is invested as well as the time frame for which it is invested

The jumbo cd rates are generally compounded and deposited to the investors account on a monthly basis. Some financial companies deposit the rates on a quarterly basis. The most effective way to get more cd rates is to compound the interest more frequently. If you compound the interest more frequently, you will be paid more at the end which ultimately results in high returns for your investments.

Promising Benefits Of Jumbo CD Accounts


It would possibly become most easiest way for you to earn good interest and get much higher cd rates for your investment.
The Jumbo certificate of deposit rates are guaranteed for your investments for every dollar more than just $ 1,00,000. This minimum balance requirement is considerably lower when compared to other high risk investments.
These deposits are insured by FDIC and hence extremely safe.
These certificates are negotiable. Banks are willing to customize the plans so as they don't lose any valuable customer like you.

Your Next Step:

If you have huge amount of money and looking for a safe investment option and get good returns for the same, then follow the steps.


Find the list of banks that offers Jumbo Certificates of Deposit Accounts.
Get the details of the rates offered by the banks.
Make a comparison of the same with other banks.
Spot the best interest rates offered by the bank and invest your money.
The details and further steps with case studies are available in the websites.




Get Started by COMPARING and FINDING >> jumbo CD rates > http://www.bestsavingsaccountrates.net/high-interest-cd-rates Balajee Kannan





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What to Store in Safe Deposit Boxes


Perhaps you have grown with your mom or grandma telling you to always keep your valuables safe and intact. Thus, you have always thought of getting or renting safe deposit boxes where you can keep your precious possessions. However, there are some items that are worth keeping, and there are some that are not. What are the best items to keep in your safe deposit box, and which ones need to be placed somewhere else?

Keep the Following in Safe Deposit Boxes

The following are the things that you have to place inside safe deposit boxes:

1. Copies of your insurance policies and wills: Take note of the word "copies." There is a very good reason why the real ones should be kept elsewhere or, in fact, handled by someone else such as your lawyer. When you die, there's no one else who will be able to open your safe deposit boxes or have access to them unless you have left some instructions on what to do to a loved one or to your representative. The original copies will then be needed for processing. The copies, meanwhile, will just be for your own protection just in case you need to present proofs in some situations, and the original ones are not with you.

2. Details of your bank accounts, investments, and credit cards: A good investor or even a responsible home owner would keep track of important information pertaining to his bank accounts, investments, and credit cards. These may include numbers, signature specimens; check books, certificate of deposits, stock certificates, and a lot more. You may want to keep them in safes to ensure that there will be no one who will be able to have access to your money. You can just mention in your last will about these details, so your loved ones may be able to use your funds when you die.

3. Divorce decree and marriage license: Your marital status matters, since there are some benefits that are only given to married couples, such as your right to your spouse's estate. Should you go through a divorce proceeding, you also need to present a marriage license. Though these documents will be the last things burglars will be hungry for, you may still want to place them in safe deposit boxes to ensure that no one will make a claim using your papers or just so you would not be able to misplace them. The same goes with the birth certificates of your children.

4. Heirlooms and savings: Heirlooms and your savings are personal assets. The former are not only the most treasured pieces of the family, but they can be of high value when the right time comes. Your savings, meanwhile, can be utilized when you don't have enough cash on hand.

You can improve your safe deposit boxes to include security features like time-delay locks or combination door locks. If you can't open them, you can just call a locksmith. He is well versed when it comes to such problems.




Imaculate Johnson is the professional writer who loves writing on a variety of topics. Currently she is working for many business and companies. She is writing for professional locksmith services for a long time to help people choose a better service. She also writes extensively on how to secure your wealth and other valuables. She also writes with nick name Ima Johnson.





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2011年12月18日 星期日

Keeping Your Money Safe and Profitable Through Certificate of Deposit


Nowadays, there are several financial institutions that offer several kinds of services. With the economic ordeals that hit almost everyone, people who were able to save some money are being meticulous in choosing which financial institution to keep their money. Few decide to just keep it at home instead people will always look around for the best financial institution that will ensure their money is safe and earning the most. As much as there are numbers of financial institutions, the types of accounts that you can open also varies.

If you have a significant amount of money to save and you are confident that you will not need it for quite some time then you will be interested in buying certificate accounts. It is a type of investment with fixed deposit structure that you can acquire either from banks or lending institutions. Investors need to deposit funds in a certain timeframe which ranges from 3 months to sixty months or more in order for their money to acquire higher interest rates. Similar to the conventional savings account, certificate of accounts are protected and insured by government agencies.

Banks and credit unions have set specific minimum requisite amount of deposit for people who are interested in buying certificate accounts. Naturally, if you want your money to acquire higher interest rates, you should make higher deposits. In return for the deposit made, the buyer gets a certificate that indicates the necessary details to seal the agreement such as term of deposit, interest rate and the maturity date.

When the deposited money reaches maturity, the principal amount and the earned interest will be awarded to the depositor. In order for the banks and credit unions to keep their business through the number of clients retaining their deposits in a long term investment, heavy penalties are imposed to early withdrawals. Such penalties can be of different forms; either through interest rates earned on a quarter or it can be the overall interest rates for the whole duration of the deposit. It depends on which type of financial institution you deposited your money to. So as not to repel investors, some banks have introduced a different structure of certificate of accounts giving its investors the flexibility of making use of their money in a staggered basis so they can use it in some other purposes.

It is wise to look around before letting your money go to any financial institutions. You are not giving your money away, of course, but the fact that your money has the tendency to sleep with low interest, you might as well find the best options of saving and the best place to keep it. Identify your goals with their corresponding time lines in order to come up with a better decision that has been well thought of before buying certificate of accounts.

Unless you are truly confident that you will not have a need for the money you will be using to buy the certificate of account, consider finding other options that will not impose any penalties when withdrawing your money. Make sure to discuss penalties with your bank or credit union so you are aware of what you will lose in case you have to withdraw your money earlier than the maturity date.




Savings accounts San Luis Obispo can be found at top-ranked, local credit unions. Check into your different options at sites like http://www.coasthills.coop/.





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Investing Options Series: Certificates of Deposit (CDs)


Certificates of Deposit (CDs)What Are They?


A Certificate of Deposit (CD), also known as a "time deposit", is a special type of deposit account with an interest rate higher than a regular savings account and federally insured. CDs are available at most banks, thrift institutions, and credit unions. They are available in almost any denomination starting at $1 (at popular online-only banks).

How do They Work?


When you deposit money into a CD, you invest a fixed sum of money for a fixed period of time - typically six months, one year, five years, or more. In exchange for your deposit, the issuing bank pays you interest, typically at regular intervals. Most CD purchasers can arrange to have the interest periodically mailed to them or directly deposited into another account; however, this reduces the total yield on investment because you miss out on your interest compounding.

When you cash in or redeem your CD, you receive the money you originally invested plus any accrued interest. But if you redeem your CD before it matures, you may have to pay an "early withdrawal" penalty or forfeit a portion of the interest you earned. Unless you can get a significantly greater return somewhere else it is advisable to avoid any early withdrawal of your CD deposit.

When the end of the CD term approaches, your bank or credit union will most likely contact you regarding how you wish to proceed with your CD. Most banks allow you to either withdraw the principal with your accumulated interest or roll the principal and interest into a new CD.

Different Flavors


In general, CDs are categorized according to their size. CDs larger than $100,000 are called "Large CDs" or "Jumbo CDs" and CDs smaller than $100,000 are known as "Small CDs."

A callable CD is similar to a regular CD except that the bank reserves the right to buy back (or "call") your CD. Due to the uncertainty these types of CDs usually command a premium interest rate. The only time a bank usually calls a CD is when it tries to protect itself from falling interest rates. For example, if your CD rate is 4.5% but interest rates fall to 2.5% then the bank is paying you more than it's receiving from its own investments and therefore losing money by continuing to pay your high interest rate.

The last "flavor" of CD is actually an investment strategy called "laddering." In almost any type investment the interest rates are going to be higher the longer you have to wait for your money. However, if you lock into a high rate for 5 years and market interest rates rise within that time frame, your "high rate" isn't going to be worth much. Laddering tries to tap into the higher interest rates associated with long-term investments but also avoid being locked into rates when the market rates rise.

For example, a 3 year laddering strategy would begin with the purchase of a 1-year, 2-year, and 3-year term CD. Each year as one of the CDs reaches maturity, you can invest it in a 3-year CD - benefiting from the higher interest rates. After 3 years of this cycle, all your money will be invested in 3-year CDs but 1/3 of your investment will mature each year - allowing you to reinvest in a new CD. Using this investment strategy you can benefit from interest rate increases while also enjoying the higher rates associated with longer-term investments.

For help coming up with a laddering strategy, BankRate.com has a great little calculator at http://origin.bankrate.com/brm/savings-advisers/cd-ladder.asp which gives you conservative, moderate, and aggressive laddering strategies. When I ran the calculator for a fictitious investment, laddering helped me earn $600 more.

Short or Long-Term Investment?


In general, CDs are considered a short-term investment due to the fact that typical CDs are available in 3 month to 5 year terms. However, CDs are not as liquid as a savings account or even Money Market Accounts due to their fixed time period. The best use of a CD is saving for a certain period of time in the future such as a car purchase in two years.

Potential Risk


The largest risk with a CD is its ability, at some banks, to be called. However, avoiding a callable CD can be as easy as talking to your financial institution or reading the "Truth in Savings" booklet the bank is required to provide you.

Since CDs are a deposit account, similar to Money Market Accounts, they are insured by the FDIC for $100,000 ($200,000 if investing with a joint account) and therefore are fairly "risk-free."

Potential Return


It's probably safe to say that CDs represent the best short-term saving option due to their higher interest rates. For example, the one of the best deals right now on CDs is ING Direct. Their 12-month "Orange" CD has a 5.25% return as of today compared to the 4.25% APY on their savings account.

Who is this a Good Investment For?


Anyone who has time to spare. Investments always favor those who are willing to wait for their money, and CDs are no exceptions. Thanks to the influx of online banks such as ING Direct, anyone with $1 to their name can invest in a CD - as long as they are able to wait 3 months or longer. If you are saving up for a specific reason in the near future a CD might be the best way not only to get the most for your investment but also to help discipline you into saving since you won't be able to withdraw your money (without heavy fees).








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2011年12月17日 星期六

Top IRA Certificate of Deposit Rates - October 2009


The big player seems to be Alliant Credit Union. Believe it or not you can find CD rate specials here frequently. If you are a current member the process is much faster than trying to become a member and then completing a certificate of deposit. So even if you run out of time, I think it would be a good idea to open a membership. The hardest thing is Alliiant won't lock the rate beyond the current day. So if you put the IRA process into gear and the rate drops, your out of luck. Anyone can become a member by first joining the National PTA. This is $25, I believe. You then can complete the Alliant member application. Be forewarned that their online process has proven difficult for many in the past. It asks a series of questions about information it pulls from the credit bureaus and I've known several people that claimed the information was erroneous and thus they couldn't complete it online. You can always go the route of snail mail if necessary. The current IRA rates are:

1y -- 2.30% APY

2Y -- 2.55% APY

3Y -- 3.00% APY

5Y -- 3.25% APY

Their NCUA# is 67955 and they are based in the windy city of Chicago, IL. They are large for a credit union with over $6 Billion in assets. As of March 2009 data, they have a 4-star rating.

Another big player is Ally Bank, but they don't offer rates for IRA CDs. People's Trust Federal Credit Union has an 18-month IRA for 2.12% APY. They are based in Houston, TX. They have a 2-star rating. People's NCUA # is 177. Looks like they have been around for a while. I did have to make quite a few clicks to get to the rates. I hate that. This is true for many banks and credit unions. They really should make it much easier.

If you're wanting to stick with a bank try Nationwide Bank, FDIC# 34710. Their process isn't too difficult. They are about $2.25 Billion in assets, had a nice second quarter profit, and 4.5 stars. Rates are:

1Y -- 1.95% APY

2Y -- 2.35% APY

2Y -- 2.25% APY

3Y -- 2.45% APY

I think that is a pretty good window into IRA rates across the internet. Let me know what you are finding.

Happy Investing.

cd :O)




Chris Duncan is a NASD Registered Representative. He specializes in helping clients find the best and highest CD rates nationwide. His clients include individuals, financial institutions, corporations, and public agencies. Check out our CD Rates offers or our California CD rates





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How to Get A Better Certificate Deposit Interest Rate


One of the things you may want to consider in your quest for getting a better rate of interest may be the duration that you have in place for your certificates of deposit. Typically, the longer you can extend the duration until it is time to renew or roll them over, the better rate of interest you will be able to get from your bank. Check and see if the interest rate would substantially improve if you went with a two or three year term rather than an eighteen-month term. Of course, also make sure you can afford to have your money tied up for that length of time as well before you change anything.

Don't be afraid to check with other financial institutions in your area. While the certificate deposit interest rate you currently receive is most likely competitive, you may very well find another bank that will provide you with a slightly better rate of interest. In fact, you may be able to take this information back to your bank and see if they will match the competition. Either way, you come out with a more aggressive rate of interest to work with.

You may also want to check with nationally know banks that do not have a local presence. Often, they will be able to establish accounts for you online and in no time you can be enjoying a rate of interest with your CD's that would not be possible to obtain locally. Make sure you understand the terms and conditions that will apply, as well as the procedure you will need to follow to check on and manage your certificates of deposit online. While online, you may want to also compare what these nationally know banks can provide to the offers extended by Internet based banks. Often, you can find some very attractive deals on interest rates with the online only institutions that simply cannot be found anywhere else.

It only makes sense to find the best certificate deposit interest rate that you can. For many people, CD's are part of their overall retirement package. Making sure you are getting the best return for your money means security in the years to come. Do some comparisons today and make sure you are getting the best deal possible.




James Woodley is the writer for the website [http://interest-rates.webinfo-site.com]. Please visit for information on all things concerned with How to Get A Better Certificate Deposit Interest Rate [http://interest-rates.webinfo-site.com/Articles/Certificate_Deposit_Interest_Rate.php]





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2011年12月16日 星期五

Strategic Certificate of Deposit Investments


Ever since the FOMC (Federal Open Market Committee) lowered Fed Funds to be between 0.00% and 0.25%, CD rates have steadily marched downwards. For a time, 1-year CD rates hovered in the 2.25% to 2.40%. Than it was the low 2.00% and finally most have retreated to be below 1.50%. Step-ups, Bump-ups and longer-term CDs with lower early withdrawal penalties can be a good strategy to maintain some yield with out a whole lot of term risk.

Term risk is where you purchase longer-term CDs (5-years and longer) and you run the risk of rates increasing dramatically before the term expires. This can also work in the reverse where you purchased all long-term rates and they all come due in a low rate environment. A laddered CD portfolio (which isn't the topic here) can help minimize the drastic ups and downs. I would say though that at this point rates are likely to go up at some point in the future, maybe late 4th quarter 2010 or early 1st quarter 2011. But since I don't have a crystal ball, I like the ideas of adding some "complex" CDs.

Step-ups give you a known point where your CD rate increases. In an environment such as this, you can potentially purchase a little longer-term CD, but with the steps you'll have protection against missing out on higher rates as the Fed increases Fed Funds. It is easier to find step-ups through brokers than direct. So far the shortest I've seen is around 12-years. They may have call dates where the bank can close the CD at a predetermined intervals.

Bump-ups allow you to move your rate up if the bank changes rates on the given term. So if you purchase a 3-year CD at 2.10% with a two-times bump option, you have the opportunity to move your rate up. If in 6-months the banks is offering a 2.50% for 3-years, you can move your CD rate up. Most Bump-ups don't change the term, however as always, read all of the fine print. Before purchasing these type of CDs, ask the bank for some rate change history, especially in a rising rate environment. You want to make sure you will be treated fairly.

Finally, longer-term CDs with low penalties can be a good way to boost income without taking a huge amount of term-risk. If you find a 5-year CD rate around 3.50% and it has a 6-month penalty, your equivalent rates would be 1-year at 1.77%, 2Y at 2.63%, 3Y at 2.92%, and 4Y at 3.06%. All of those are at or better than you can find for the given term. So until rates rise you get a boost in income. If rates rise slowly, you maintain that boost. And if rates go up quickly you can close your CD, move to the higher rate, and not lose much. A great find with be a 7-year or 10-year CD with a 6-month penalty. I've seen some 10-year CDs advertised at 4.00%.

So go searching and let us know what you find.




Chris Duncan is a FINRA Registered Representative. He specializes in helping clients find the best and highest CD rates nationwide. His clients include individuals, financial institutions, corporations, and public agencies. Visit us at Jumbo CD Investments for Bank Certificate of Deposit info.





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