US Financial News

Twenty-somethings have plenty of ways to save on their taxes, but the unfortunate thing about this age group is that many seem to be very nonchalant about giving money away to the tax-man. They either think that taxes are absolutely unavoidable or they are too preoccupied to figure out how to squeeze some extra out of their hard-earned paychecks.

The following tips highlight that this doesn’t have to be the case. Twenty-somethings can qualify for several tax breaks and getting them is not as hard as you would think.

Deduct Interest On Your Student Debt

Many individuals in their twenties still have student loans. You can deduct the interest you have on student loans as long as the loan is qualified, you are not filing separately if married, and your modified adjusted gross income is not greater than $70,000 ($145,000 if married). Also, you cannot be claimed as a dependent on your parents or anyone else’s tax return.

Buy a Hybrid and Save on Taxes

Several hybrids are still eligible for this tax credit and it expires on December 2010. If you need to buy a car, consider getting one that is low on fuel-consumption so you can claim this credit and save some money. T Read more…

| Tags: Tax, Tax Savings
Posted August 12, 2010 by John Wane under Financial News

One in four property listings on the market as of August 1 have experienced at least one price reduction, according to real estate search service Trulia.

That marks the fourth straight month of increases in price reduction levels, thanks to a lack of qualified (or motivated) buyers, record low mortgage rates and all.

The total dollar amount slashed from home prices in America’s 50 largest cities was a staggering $30.1 billion, and the average discount on a price-reduced home was 10 percent off the original list.

“If buyers are unqualified to buy, it doesn’t matter how low interest rates are or how discounted a home is,” said Pete Flint, co-founder and CEO of Trulia, in a release.

“I stated at the beginning of the year that I did not expect to see the housing market stabilize or recover in 2010, and I believe that prediction is being proven true today. We will be bouncing around the bottom for months to come. If you are looking to do a short-term buy, this is the wrong market for you. People bu

Read more…

| Posted August 11, 2010 by Admin under Financial Guru

The Association of Financial Advisers (AFA) will continue to push the Federal Government to focus on both commissions and the lack of insurance cover.

AFA CEO Richard Klipin says the association has focused on working with the Government and regulators on remuneration arrangements for life advisers.

“It is a system that has served everybody well,” he told insuranceNEWS.com.au.

“But the real issue is the levels of cover and how to deal with the yawning gap between those with insurance and those without.”

Currently life advisers are paid a commission, or “trail”, for as long as the policy remains in force, although they do have the option of forgoing these payments.

In some cases this can be many years, and it is not unknown for the client to be on-sold to another practice when the original advisers retire.

InsuranceNEWS.com.au has been told there are a considerable number of life insurance policies that are more than 20 years old.

These would have paid a commission during that period to the selling adviser or whoever now advises on the policy.

However, obtaining exact figures has proved hard to find.

“Let’s not tinker with the current system that has significant implications if it is changed,” Mr Klipin said.

Also see ANALYSIS.

| Posted August 10, 2010 by Hanna Silver under Financial News

If you have a bad credit history, then do not worry you are not alone. Many people are facing these types of problems nowadays. With this problem, standing in your way of getting a new car, you just have to select the right path so that you can get away with your past mistakes and easily get an auto loan for yourself.

You just need to know the state of your present credit score. After this do a research for all companies who will lend loans to someone with a bad credit history. Compare the interest rates and other things like the terms and conditions before finalizing your deal with that particular company.  Actually there are companies that specialize in working with people who have a past record of bankruptcy or bad credit. They can help you provide lower loan rates, interests and payments. So go ahead with your car plans, do not hesitate and just get a good financial backup plan for yourself.

| Tags: Bad Credit, Bad Credit History, Credit History, History
Posted August 8, 2010 by John Wane under Financial News

More relief is on the way for underwater borrowers, assuming lenders agree to take part in the voluntary program.

On September 7, the FHA will begin offering FHA loans to certain underwater non-FHA borrowers who are current on their existing mortgages via the FHA Short Refinance program, originally unveiled back in March.

In order to take advantage of the FHA’s “short refi,” homeowners must qualify for the new loan under standard FHA underwriting requirements, and have a credit score of 500 or higher.

The property must be the homeowner’s primary residence (1-4 units), and the borrower’s existing first mortgage holder must agree to write off at least 10 percent of their unpaid principal balance, bringing the borrower’s combined loan-to-value ratio (CLTV) to no more than 115 percent.

Additionally, the existing loan must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent.

The Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens – though second mortgages can be re-subordinated so long as the CLTV stays below 115 percent.

“We’re throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined,” said FHA Commissioner David H. Stevens, in a state

Read more…

| Tags: Program, Program Launch
Posted August 8, 2010 by Admin under Financial Guru

For the first time since February, the average length that the typical jobless worker has been looking for work declined, to 34.2 weeks in July.

The previous month it had hit 35.2 weeks, the highest average duration on record since the government began collecting these data in 1948:

Source: Bureau of Labor Statistics

While the decline in the average duration of unemployment looks like good news on its face, it is hard to discern how much of the drop may be attributed to some of the long-term unemployed merely giving up and dropping out of the labor force. (People who give up on actively looking for work cease to be officially counted as unemployed.)

| Tags: Average Length, Length
Posted August 8, 2010 by Hanna Silver under Financial News

Heading out to do some back-to-school shopping can really be a drain on the pocketbook if it is not done with a strategic plan in place. The retail shops are counting on the young ones to beg and plead with their parents for the newest and greatest school supplies.

There will be a lot of advertising and setups placed in shops, and if you don’t know exactly what you are shopping for, you may be tempted to purchase everything the store says you need.

Back to school with the young ones

Find out what your children really need to go back to school. You can contact the teacher before you head out shopping so that you can get a list of items. You can bring your children with you to go shopping as long as you let them know that you are going to be sticking to the list no matter what.

If you let your children make up the list with you they will be more actively involved in the decision-making and it will be easier once you hit the stores. Don’t forget to check what items you already have at home. Your child will probably want all new items, but you can let them know before you go shopping that you do not intend to purchase anything you already have in stock. Read more…

| Tags: Backtoschool Shopping, Shopping
Posted August 5, 2010 by John Wane under Financial News

A Treasury spokesman today put to rest rumors government mortgage financiers Fannie Mae and Freddie Mac were set to forgive mortgage debt for millions of American homeowners.

There had been speculation the pair would soon offer principal balance reductions to underwater borrowers, those who owe more on their mortgages than the current value of their homes, so they could refinance and take advantage of the record low mortgage rates.

But Treasury spokesman Andrew Williams told Reuters “the administration is not considering a change in policy in this area.”

Before the statement, investors were dumping mortgage bonds in anticipation they would sustain large losses if a refinancing wave were to come – they have since parred losses.

Some political pundits speculated that the White House would give orders to forgive portions of underwater mortgages backed by Fannie and Freddie “to win back the hearts and minds of voters” before a key midterm election.

Obviously, such a massive principal write-down would cost billions, likely paid for taxpayers, making it an unlikely proposal.

It would probably also prop up home prices that are still unsustainable in many parts of the country, even with mortgage rates as low as they are.

There’s still always the option of easing underwriting requirements so more borrowers can refinance, regardless of how high their loan-to-value is, or how insufficient their income is.

Currently, borrowers with mortgages backed by Fannie and Freddie can refinance with negative equity up to 125 percent LTV, which clearly isn’t high enough…

| Tags: Homeowner, No Homeowner
Posted August 5, 2010 by Admin under Financial Guru