Secure and Safe - Tips For Online Banking

Just within the last several years, the Internet has emerged as a highly convenient way to conduct banking business, as well as shop for financial services. As the use of the Internet continues to expand, more banks are using the web to offer products and services or enhance its communication with existing customers.

However, according to the Federal Deposit Insurance Corporation (FDIC), safe online banking involves making wise choices - decisions that will help users avoid costly surprises or even scams.

Whether selecting a traditional bank or an online bank with no physical office, users should make sure a bank is legitimate and that deposits are federally insured. The following are tips for consumers considering banking over the Internet:

1. Read key information about the bank posted on its Web site. Peruse the "About Us" section on the bank's Web site where a brief history of the bank, its official name, address, and its insurance coverage from the FDIC is featured.

2. Protect yourself from fraudulent Web site. Be careful to avoid copycat Web sites that use a name or Web address similar to, but not the same as, that of a real financial institution. Their intent is to lure potential customers in giving personal information, such as your account number and password. Making sure you have typed the correct Web site address of your bank before conducting a transaction.

3. Verify the bank's insurance status. To verify a bank's insurance status, look for the familiar FDIC logo or the words "Member FDIC" or "FDIC Insured" on the Web site. Internet users may also check the FDIC's online database of FDIC-insured institutions.

4. Due to insurance purposes, a bank may use different names for its online and traditional services. Your deposits at the parent bank are added together with those at the Web site and insured for up to the maximum amount covered for one bank.

5. Only deposits offered by the FDIC-insured institutions are protected by the FDIC. Nondeposit investments and insurance products, such as mutual funds, stocks, annuities, and life insurance policies sold through Web sites or at a bank are not FDIC-insured, are not guaranteed by the bank, and can lose value.

6. Quite often banks that are chartered overseas are not FDIC insured. If you choose to use a bank chartered overseas, it is important to note that the FDIC may not insure your deposits.

Consumers often want to know how their personal information is used by their bank and whether it is shared with affiliates of the bank or other parties. Beginning in July 2001, banks are required to provide customers with a copy of their privacy policy, regardless of whether you are conducting business online or offline. Here, customers can learn what information the bank uses regarding its customers and whether it shares this with other companies.

It's important to remember that the Internet is a public network. So, it's important to learn how to safeguard banking information, credit card numbers, Social Security Number and other personal data. Look at the bank's Web site for information about its security practices, or contact the bank. Also, be informed about the Website's security features including:

1. Encryption: the process of scrambling private information to prevent unauthorized access.

2. Passwords or personal identification numbers (PINs): Used when accessing an account online. Choose a password unique to you and consider changing it regularly.

3. General Security: Security provided by your personal computer such as virus protection and physical access controls should be used and updated regularly.

Considered an added convenience to customers, some banks may offer links to merchants, retail stores, travel agents and other sites. Keep in mind that nonofficial Web sites linked to your banks' site are not FDIC-insured. These company's products and services may not be insured by the FDIC and your bank may not guarantee the products and services. Make sure you are comfortable with the reputation of a company before making a transaction and never provide a credit card or debit card number unless you initiate the transaction.

MUTUAL FUNDS and Personal Finance

Insurance medical exams may not be as certain as death and taxes, but they're not far behind. You'll probably take one when you apply for nongroup life insurance.

You might also have to take an exam if you want nongroup disability, health or long-term care insurance.

Just because such exams are common, don't take them lightly. If you flunk the test, you could be denied vital coverage.

Even if you pass, which most people do, your results affect your risk rating. A better rating means cheaper premiums.

Some basic steps can help. Take life insurance. Many of its rules apply to other types of coverage as well.

Life insurers typically put applicants into one of four broad categories. "These categories are based on the risk you'll die soon," said Dr. Craig Davidson, assistant vice president and senior medical director at the Hartford.

People in the best health are "preferred" risks. The next category is "standard."

Below standard, applicants are rated by the severity of their health problems. These substandard categories are called tables.

If you're slightly below standard, you're in Table 1. If you have a slightly higher risk of dying early than people in Table 1, you're in Table 2. Some companies go up to Table 10.

Someone with diabetes might be put in Table 2 for determining premium payments. Someone who has had a heart attack may be in Table 4. With a shorter life expectancy, he can expect higher premiums.

Some people won't be offered insurance at all, at any price.

"About 18% of our applicants are rated or declined," Davidson said.

The other 82% are preferred or standard risks. More people pay preferred rates than standard rates. The difference can be substantial.

Premium Prices

Suppose a 50-year-old male wants to buy $500,000 of life insurance. He chooses term life, which charges relatively low premiums and accumulates no cash value.

He wants a policy that will stay in effect for 10 years.

If he is a nonsmoker who is a preferred risk, he might pay $750 a year for that coverage. (Anyone who smokes will pay much more for life insurance.)

If this nonsmoking 50-year-old is a standard risk, he may pay nearly $1,300 a year for the same amount of insurance.

He'll pay much more if he's rated. With some hypertension or cholesterol issues, he could be classed in Table 2 and be charged $1,900 a year.

Obviously, the best way to hold down your costs is to watch your health regularly. Stop smoking if you're a smoker. See your doctor and follow suggested treatment if you have high blood pressure, high cholesterol, excess weight or other cardiovascular risks.

You can do other things at the last minute to get a better grade on an insurance test. If you're on the borderline, these actions might push you into a lower-cost category:

• Eat carefully. Davidson suggests not eating for at least eight hours before a physical exam. That can keep blood sugar and triglycerides down.

For a day or two before your test, avoid steaks and other fatty food.

• Watch what you drink. Limit your consumption of alcoholic beverages before the physical.

Minimize your intake of caffeinated drinks such as coffee, tea and cola. Alcohol and caffeine can raise your blood pressure. Even juice might hurt your result.

Water and more water might help, can't hurt.

• Schedule your test smartly. Let's say your exam is set for late afternoon. You run out of a heated business meeting to make the appointment. The stress might send your pulse and blood pressure sky high.

Taking a physical early in the morning probably is better. After a night's sleep and before you go to work, your stress level may be low.

• Exercise care. Keeping in shape is a good long-term strategy. But a strenuous workout before your exam can be a bad idea.

"Playing squash or running five miles before a physical can affect tests of liver function," Davidson said. That might put you into a lower health class than you deserve.

South Florida Sun-Sentinel Personal Finance Column

Aug. 2--Before she was Dawn Summers on Buffy the Vampire Slayer or Georgina Sparks on Gossip Girl, Michelle Trachtenberg was Harriet M. Welsch in Harriet the Spy. And before Harriet the Spy was a 1996 film, it was a not just one of the greatest books ever written, but the kind of book that, if you read and loved it in your childhood, immediately bonds you to others who did, too, to the point that you sort of lose respect for any woman who did not devour the novel a minimum of seven times.

Published in 1964 by Louise Fitzhugh, who died a decade later of a brain aneurysm at age 46, Harriet the Spy is about a stubborn, smart, decidedly unfeminine adolescent girl who lives in a Manhattan townhouse and is generally ignored by her parents. She has a close if unconventional relationship with her nanny, Ole Golly (played, somewhat incongruously in our opinion, in the movie by Rosie O'Donnell), and spends the vast majority of her time spying on neighbors, classmates and complete strangers. Lessons are eventually learned, but not in some goopy, melodramatic manner; Fitzhugh's writing is as fiercely intelligent as Harriet herself. At least, that's how it was in the book. Frankly, we've never seen the movie. That would be sacrilege. But that's just us.

Personal Finance: Are there benefits in insuring children?

The question of insuring children is a loaded one. The death of a child is an unimaginable tragedy, one of parents' worst nightmares and something no one would want to even contemplate.
Understandably, many people find the idea of insuring their children to be somewhat distasteful - or downright offensive. But purchasing a permanent life insurance policy for your child today could give them a financial head start tomorrow.

A financial advantage

There are two very good reasons to consider insuring your child, for their own benefit. The first is financial: the earlier you purchase life insurance, the less it costs. No matter what kind of policy you purchase, life insurance costs more the older you are. However, with a permanent life insurance policy, you can lock in a premium price when you first purchase the policy. If you purchase a policy for your child at a young age, that affordable premium is locked in and will not go up throughout the course of your child's life, as long as the policy is kept in force. That can be an enormous financial advantage to your child as they go through life.

In addition, the earlier you purchase permanent life insurance, the longer the cash value has to grow tax-deferred. Over the years, that can make a huge difference in the amount of cash value that can accumulate. And down the road, that cash value can be borrowed against if necessary-for instance, to buy a house, pay for college tuition or help supplement retirement income. That's why having a cash value accumulating for a long time can be a financial advantage to your child, in the future.

The gift of insurability

However, the most compelling reason to purchase life insurance for your child while he or she is young is the fact that doing so can ensure their insurability later in life. We all pray that our children lead healthy lives. But, realistically, so much can happen to make them uninsurable or only insurable at a high cost - even their chosen profession. A juvenile life insurance policy can help protect them when they are young, and allow for greater protection as they grow older. Many policies come with riders that allow your child to purchase additional insurance at various points in their life. By insuring your child while they are young, you can help make sure they can provide financial protection for their own family later on in their life.

Should tragedy strike

Even in the event of an unthinkable tragedy, the proceeds of a child's life insurance policy could make a difference in so many ways. That money could be used to keep your child's memory alive. For instance, you can give to a charity or create a memorial fund in your child's name.

The death benefit can also help you deal with some of real financial ramifications of such a tragedy, such as medical or funeral costs. It would be devastating enough to lose a child, without having to also struggle to cover medical bills and final expenses, which can run in the thousands of dollars. The policy death benefit could also allow you to grieve properly. Many companies will give parents a week off with pay when a child dies, but how many people would be ready to go back to work one week after losing their child? The death benefit could allow you to take the time you need to grieve without having to worry about your income during that time.

A gift for a lifetime

Purchasing life insurance for your children should not come instead of purchasing life insurance for yourself and your spouse, or saving for your retirement. However, if you have the funds, purchasing an insurance policy for your children could help ensure they are protected, and also help them and their future families down the line. Rather than being something offensive to even think about, buying life insurance for your children could end up being one of the greatest gifts you'll ever give them.

How To Fight High Gasoline Prices

Are you scared that gas prices are going up but your income is not? Is the high gasoline price sucking too much money out of your pocket?

For people on a fixed income, it looks as if everything is going up except their pay check. In fact, the situation is so serious that some of them need to look for a new job closer to the home just to save on gas. This is true even though they love their job and don't want to change it.

You can find plenty of advice about surviving in the world of high gasoline prices. For example:

• Change your driving habits.
• Cut back on daily purchases in order to compensate for increased gasoline spending.
• Do not go out for lunch. Bring it with you to the office.
• Instead of eating out at a "fancy" sit down restaurants, go to fast food places to cover the difference between gas prices and food savings.

Basically, all these advisers are teaching how to adjust your spending habits to accommodate rising gas prices because there is nothing you can do about the rising cost of gasoline. But what if you don’t want to change your habits? What if you refuse to become a hostage to higher gasoline prices?

Well, I have a realistic solution. Instead of losing time on driving around looking for cheaper gasoline, spend your time and energy on learning about online earning opportunities. You can easily make between one hundred to three hundred dollars on the Internet monthly. This extra money could cover your gasoline expenses allowing you to forget about this problem for rest of your life!

There are hundreds of thousands people who make full time living from the Internet business and millions who choose the Internet as a part time job. Why not to begin your Internet business journey with a very clear goal to compensate your everyday gasoline expenses?

There are countless ways to make this kind of additional income through the Internet. Most of these methods are very simple to understand and quickly to learn even for beginners.

Being involving with an Internet business on a part time basis can earn you extra income straight from your home computer without giving up the things you and your family already enjoy.

Put Money In Your Pocket By Cutting Personal Expenses

Everyone has personal expenses. But the fact of the matter is; most people spend much more money than they realize. If you ask someone to make a detailed list of their monthly expenses, they will tell that they spend about 30% less than they actually do. This unknown spending can make a significant dent in your budget.

Many of these little forgotten expenses are making it difficult for some people to make ends meet. So what can you do to reduce your expenses? Slash your expenses and change your spending habits. You would be surprised at the amount of money you can save by making a few small changes in your spending habits.

Never go on a shopping trip without having a list. Even if you only need three or four items, make a list and stick to it. Stores know that most people are prone to buying impulse items and will set up their store to take advantage of this. Don't fall for that money-sucking trap. Only buy items on your list. If you see something that you really like, pass on it during that trip and think about it when you get home. In most cases, tat impulse purchase will not look so enticing after you've thought about it for a while.

Never go grocery shopping when you are hungry. A hungry shopper will almost always buy more than someone with a full stomach. And again, if you have followed the advice in the previous paragraph and have a list, you will spend considerably less.

Always use coupons, particularly at the grocery store. Using coupons, you can easily and consistently save about 10% on your grocery bill. Over the course of a year, this can amount to a great deal of money. Develop a file system for your coupons. And most importantly, only buy items that you need now. Don't buy an item that you might use in 6 months just because you have a coupon today.

Are you are tired of living paycheck to paycheck with no cash to spare? Check out my newest ebook for the details on how to slash expenses and put money in your pocket!

Frugal Living Tip #8 - Buy Used - Always

Reading the title of this edition of frugal living tips you are probably thinking to yourself, Thank-you Captain Obvious. Well, while the notion of saving money by purchasing used is not exactly groundbreaking, I'm here to remind you that the majority of us don't take this powerful saving tool far enough.

What do I mean by this? Start by taking stock of some of the possessions in your house. Sure, you got that sofa by replying to an ad in the local classifieds, that table lamp came from a garage sale, and those jeans came from a thrift store. But what about your TV, dishes, tennis rackets, winter parka? What about your car, or your house? Odds are the majority of the items in your household were probably bought new at the store. But just about every material good you own, regardless of how big or small, could have been purchased at a significant discount if you had bought it used.

The two most expensive purchases - a house and a car - are often purchased new, despite the immediate depreciation that occurs as soon as we sign the papers. But, wait a minute, houses are an appreciating asset, aren't they? This is true, in most real estate markets, however when you purchase new you will face the applicable sales tax. Here in Canada that is a 5% GST tax added to the purchase. Not exactly peanuts when applied to a $400,000 sale. Now you've paid $420,000 for your nice new home. Compare that to a five year old home with the same specs in the same neighborhood. Because it is not brand new they cannot justify pricing it at the same level as the new home down the street. Instead this home sells for $370,000, with no applicable sales tax. Purchasing the used home could have saved you $50,000! Project the interest paid on that extra $50,000 over the term of your mortgage, and you can probably double that number. A pretty hefty premium to pay just to have the privilege of being the first occupant.

Cars are even worse. Not only do you pay sales tax and freight charges on a new car, but they are a depreciating asset! As soon as you drive it off the lot its value starts to erode, and in five years, when you've finally finished paying for it, it will likely be worth less than half what you paid. The solution is simple: Let someone else pay that depreciation. Shop around, and read consumer reports on automobiles 3-5 years old. Look for gas efficiency and reliability above all. One of the major reasons people buy new cars (or even worse, lease!) is because they don't want to be hassled with maintenance problems. If you do your research carefully you can find a solid, reliable used car and enjoy nearly the same level of peace of mind, but at less than half the cost!

So, those are the big ticket items, but that is just the tip of the iceberg. Whenever you have a need or a want, get yourself out of the habit of heading down to the department store. Instead, start your search in the local classifieds (print and online), head to garage sales, thrift stores, flea markets. Everything you need is being sold used by someone somewhere, and often at a discount of up to 90% off what you would pay for it new. Even popular items will be sold at least a slight discount to their retail counterparts. Someone selling used items for the same price as new aren't going to do very much business.

Turn your search into a game. Comparison shop even among used goods, and try and find the absolute best bargain possible. You might have to wait a few days, but eventually you'll come across what you are looking for at a smokin' price. By applying this technique to every item you buy, from forks to fridges, you can cut your discretionary spending in half!

There is another bonus perk if you are purchasing goods directly from other individuals, rather than businesses. In most cases, they will not accept credit cards. Cash is king for person to person transactions. This forces you to only buy what you currently have money for - a great impulse check and yet another way to keep those credit card balances minimal.

Financial Planning - 5 Ways Of Not Overspending When On Vacation

Most people look forward to vacations the entire year. It is a time of relaxation and of family bonding. Some families meet new places, some go to the same location every year, and some just stay home and rest. It does not really matter where the holiday takes place, but how much you spend on them. Following you will find some tips on how to enjoy your free time without spending more than you need to.

Savings: Key To An Unforgettable Trip

If you still have a good four or five months before departing, then this recommendation will fit you like a glove. If each month you put aside 10%-15% of your income and destine it solely to a vacation fund, then when the time to pay for that trip comes, you will have saved enough for the expenditure not to hit your finances so hard. Setting aside such a low monthly percentage will help you to save without you even noticing it. And what is more, you can apply this technique not only to trips, but to anything else you might want or need.

Coupons And Promotions: Your Best Friends

It will be a good idea for you to surf the web in search of any promotion that might help you to save a few bucks in your trip. If you usually travel by plane for business or something of the sort, you might have many frequent flier miles, which will be great if you are flying to your special destination. Otherwise, you will be able to contact tourist information and they will let you know if they offer any promotions on accommodation or transportation.

Budget: Keep Focused On It

Nowadays, many households make financial plans before leaving for holidays. They include the cost of the essentials, such as food, accommodation, transportation, etc, and try to make out how much money they will spend without going overboard. Now you and your family have your brand new budget and you are about to leave for your very much expected holidays, everything is perfect. Once you get to your destination, you have to stay focused on that little piece of paper on your pocket or daily planner. Most people tend to forget they ever made a budget and start spending like crazy, do not let this be your case. Concentration and motivation are essential.

Credit Cards And You: Learn To Go Separate Ways

Evidently, bringing your credit cards with you on your trip is a very accurate decision. In case of an emergency, credit cards can really come in handy. But it is advisable not to carry them around with you. If you leave the hotel, leave them there. Keep them somewhere safe, but not with you. Why, you might be wondering. To resist temptation. If you only have cash with you, the necessary amount for you and your family to dine out, or to go to that excursion you had in mind, you will not be able to spend it on unnecessary things. Otherwise, it will be very easy for you to get carried away and to pay everything with your plastic card.

Have More Money in Your Pocket With These Financial Tips

No one ever said that managing your finances is an easy thing to do. Many of us have a difficult time living on a tight budget. One positive is that through smart planning with the help of some basic knowledge of refinancing, you can save a good deal of money. Better yet, you can watch it grow. That's why you need to find ways of financing to put more money in your pockets.

There are a number of different options you can take when it comes to learning more about finances. The most important is probably have some good common sense. The trick is to focus in on your goals and find solutions to what's holding you back from having money. Here are some simple ways you can begin putting money back into your pocket instead of paying it out to someone else:

* Start with debt management - If you are buried under credit card debt, one thing to take refuge is the fact you're not the only one. Nearly everyone you meet has some sort of credit card problems. One way to If you're mired in credit card debt, you're not alone. I recommend refinancing your mortgage as a way of cutting into that debt. A mortgage refinance can get you a lower interest rate than most credit cards, leading to significant savings of money in the long run. Another option is for you to consolidate those debts too.

* Be aware of all your interest rates - Ok, maybe you're not in financial debt or trouble but you may be losing money by not paying attention to it. If you have money saved into account or in investments with too low of an interest rate, you're losing money that can be potentially be making. This happens most often in checking and savings accounts that pay extremely low interest rates. That interest rate can even be voided from the the pace of inflation. Financial experts are saying to move your money to a liquid money market. This pays a higher return.

* Open a home equity line of credit - I'm sure you've heard to save your money for a rainy day. The old line of thinking was to save three to six months worth of your salary on hand in case you ever found yourself in a financial crisis. You can do that or you could use that money for more lucrative money making potential. Try going with a home equity line of credit for your emergency or rainy day fund. This way the only risk you face is paying on the interest rate of any money you use from that line of credit.

* Refinance - Refinancing isn't the end all answer to your financial problems. It can , however, make life a little easier but saving you a good deal of money. Do some research on current mortgage rates and then compare them with your mortgage. If you discover you are paying a percentage or two more than you should be, I recommend refinance your loan. Another option is to refinance to one with a shorter term. This can save you thousands of dollars in long-term interest.

Debit Card - What It Is And How It Works

Do you remember the days when the debit card was the most important means of transacting business? Very few people then had credit cards. Together with the check book, it was the primary means of doing transactions. Those were the days when there were very few credit-card owners.

So what exactly is a debit card and how does it work? It is like a credit card, made of plastic and is used as an alternative payment methods to cash when purchases are made. Typically, it is directly linked to the card holder's account. Whenever they are used to do transactions, the card holder's account is automatically deducted.

Here is an example of how it works. John Doe has one that is tied to his savings account. He has an opening balance of $15,000. Now since it is tied to a savings account, John Doe can use his card to do $15,000 worth of transactions, either in the form of purchases or ATM withdrawals.

Many debit cards have a maximum withdrawal amount per cycle built into them. For instance, you may have a withdrawal limit of $3,000 every three days. What this means is even though there may be more than $3,000 in your account, they can only withdraw up to $3,000 in any three day cycle. This particular feature was used to safeguard cardholders against possible theft and the subsequent draining of the cardholder's account.

Coming back to the example above - assuming John Doe had a three day cycle limit of $3,000, and he made a purchase of a stereo set costing $1,500 on day one, the balance on his savings account would now stand at $13,500, and over the next two days he will only be able to do ATM withdrawals and or purchases to the tune of a $1,500. Again, this feature is designed to protect the card holder against theft.

If after doing a number of transactions, John Doe brought down the balance in his savings account to $1,000, then this is all that will be available to him even though he has a three day withdrawal cycle of $3,000.

Debit cards are a safe means of making purchases since it saves the purchaser from having to walk around with cash in order to make his or her purchasers.

When this was the primary tool for making purchases, it kept card owners out of financial trouble since they could only use or withdraw what was in their account, and could not overdraw their balances.

Now how is John Doe's account updated each time a transaction is done? Each debit card has a black strip at the back of it. This is known as the magnetic strip and contains information about the card holder that cannot be seen by the naked eye. This information includes the card holder's name, banking institution, bank account, branch, and other pertinent information. When the card is used to either do ATM withdrawals or purchases from merchants, a card reader is used to initiate and conduct the transaction. In the case of an ATM withdrawal, the debit card owner place is the card in the card reading mechanism, and enters a Personal Identification Number or PIN that identifies him or her to the system. This is validated by the machine and opens the way for the cardholder to do an ATM transaction. Withdrawals of amounts that fall within the account owner's balance will be honored. All others will be declined.

When the cardholder makes a purchase, pretty much the same steps are carried out as if he were going to do and ATM transaction. The only difference here is instead of the big ATM machine, the merchant to have a much smaller hand-held cards Reading machine. The steps a pretty much the same. The merchant swipes the debit card in the card Reading mechanism then enters the amount of the transaction. The card owner must now validate the transaction by entering his of her Personal Identification Number. Once all is correct up to this point, the card reading machine would now use the network that is in place to determine whether the cardholder has funds in his or her account. If they do the transaction is completed. If they do not the transaction is declined.

While debit cards are not as popular as credit-cards, they're certainly a very valuable tool for anyone who is serious minded about savings and monitoring their indebtedness to financial institutions. Since the debit card typically works with the card owner's available balance, it negates the whole credit process thus helping the cardholder to avoid on necessary indebtedness. It disciplines the card owner into managing their personal finance and thus saving credit facilities for when they are really needed. That being said, they are an excellent means of rebuilding your credit.