Is It Finally Time To Get Organized?

With tax season almost over it's a great time of year to go through our files and get organized. I have just gotten all my paperwork back from the accountant and i would like to get organized. But what should I keep and what should I throw out?

What	How Long to Keep	Why
Tax returns (including receipts and supporting documents)	Up to six full years	The IRS can audit a return up to three years after you've filed. The agency can challenge your return for up to six years if it suspects you under-reported your income by 25% or more.
IRA contribution records	Permanently	Keeping these forms — like IRS Form 5498 and 8606 — may prevent you from paying too much tax when you tap your retirement stash.
Investment and real estate records	Seven years after you sell	They help track your cost basis — and the taxes you owe when you sell; shred your monthly statements and save the annual summaries.
Bank statements and checks	One month to seven years, depending on whether your bank has them available online	You could need them if you're audited by the IRS. If you haven't already, switch to receiving your bank documents online. Your bank may have past statements available online.
Credit card statements and bills for non-deductible items	Shred immediately after the next statement arrives	You don't need them once you confirm the charges and have proof it was paid.
Form W-2: Wage and Tax Statement	Until you start receiving Social Security benefits	Usually your best proof of earnings for Social Security
Pay stubs	Until the end of the year	Not needed once you get your W-2
Insurance policies	Until they expire — except for liability policies with "occurrence" coverage	Occurrence-based policies cover you for damages that occur while the policy was in effect — even if the claim happens after coverage expires.
Receipts	Day-to-day debit/credit: Toss after confirming the amount charged is correct. Big-ticket item: Keep with other purchase documentation for proof of value in case of loss or damage. Charitable donations: Store and keep for tax-filing purposes.	Depending on the type, amount and reason for the purchase, they may be necessary for insurance- and tax-filing.

Needless to say keeping documents safe means either a fireproof safe or a safety deposit box. There are many new services that will scan your documents for storage online or on disks. Try Shoeboxed.com

Discover is Offering a Rare 24 Month Promotional Balance Transfer

Over the last few years balance transfers have all but dried up. Only within the last six months I have noticed balance transfers starting to loosen up. I have seen many 6 month transfers and a few 1 year transfers. But never have I seen seen a 24 month transfer, not for many years.

Slowly, 0% APR balance transfer cards have made a comeback. But be sure to read the fine print and know beforehand what the balance transfer fee is going to be. It's usually 3-5%, if it's to much it can defeat the whole purpose.

Discover® More Card - 24 Month Promotional Balance Transfer 

Updated Bullets:

• 0% intro APR on balance transfers for 24 months, then the variable  APR of 11.99% - 20.99%
• 0% intro APR on purchases for 6 months, then the variable APR of 11.99% - 20.99%
• 5% Cashback Bonus® in categories that change like travel, gas, groceries, restaurants, home improvement stores and more
• Up to 1% unlimited Cashback Bonus on all other purchases
• No Annual Fee

Discover® More Card - 24 Month Promotional Balance Transfer

Who is this Discover Card Good For?
If you have a debt that you will need 2 years to pay off this is for you. If your digging out of credit card debt and need a break in the high interest piling up. But the deal is that you actually pay it off to make this work.


What's the Downside?
If you miss a payment you're going to lose your promotional balance. The balance transfer fee is 5%, steep to say the least. But if your transfering $10,000 the 5% comes to $500. Divide over two years it is 2.5% interest on the $10,000. Your paying all your interest up front. Still a good deal. Naturally your credit has to be pretty good to get this offer.

After being approved you have till June 10, 2011 to transfer the balance.

You can apply for the Discover® More Card - 24 Month Promotional Balance Transfer here.

9 Ways Avoid to Disreputable Contractors

Image by The Library of Congress via FlickrI have been getting some estimates to change out my windows. They are 35 years old and it's time to upgrade. The new windows today, not only save on energy costs but are are impact resistant. So the need for shutters during a hurricane isn't a worry anymore.

Whenever you have work done of this nature done it will be of great benefit to qualify the company that does it. I recommend doing a thorough checking out of the company and meeting the people who will actually be doing the work. Some of my readers know of my special relationship with building contractors. I am one and I am well aware of how they can be very good in their job and how they can be very bad. So it is very important to check out their credentials and past work.

Seek Referrals. It's best to get it from the horse's mouth. Stop by remodeling jobs that are in progress and talk to the homeowner. Ask if they are happy with the way the job is going. Is the work being done in a timely fashion? Is the crew doing a god job? How is the price? You will know right away if the homeowner likes the work. They will be forth right with a good or bad review.

Check Credentials. Call your local BBB and find out how long a company has been in business. Google the name of the company and it's owner, you will find if there are any problems or lawsuits. Contact any state licensing boards for any consumer complaints.

Seek Referrals. Talk to any friends or family who have done any similar kinds of work. Call your local building department to check if there are any complaints or if they make recommendations.

Ask For Insurance. Ask your contractor to produce documentation of liability insurance and proof of workmen's compensation. See that all paper work is up to date.

Subcontractors. Ask your contractor if they will actually be doing the work or will be sub-contracting the work out. If so check out the subcontractor thoroughly.

Everything must be in writing. Be sure all agreements are put in writing. Ask how work change orders are to be handled. Be sure start and finish dates are in writing. Also payment schedules and detailed description of the work to be done.

Understand what your signing. If your contract has to much small print and is costly maybe a lawyer should check out the contract to see if you are not being taken.

Paying upfront. Don't pay to much upfront. A small deposit may be required but always pay after work is done or on a beneficial for you schedule.

Never Pay in Cash. Use a credit card or write checks so you always have proof of payment.
Contracting work on your home can be a pleasant experience if you take it slow and find the best contractor.

How To Freeze Your Credit Report?

Image via WikiPatentsIf you ever thought of freezing your credit report and didn't know how to, I will give you all the info you need to do it. By putting a freeze on your credit report you are restricting new creditors and hopefully identity thieves from being able to access your reports. If you ever decide to lift the freeze, in case you want to access your reports, the process to unfreeze is just as simple. Some states have a small fee to place the freeze, others are free. Free reports are given to senior citizens and victims of identity theft.

There are 3 company's that have your credit report so you will have to contact each individually.

TransUnion Online - Click here.
Experian Online - Click here.
Equifax Online - Click here.

If you have any problems online here are the 800 numbers to call them:

TransUnion: 1-888-909-8872
Experian: 1-888-397-3742
Equifax: 1-800-685-1111

They may try to get you not to freeze your credit report or may try to sell you a credit monitoring plan. Say "no" and state you want a credit freeze. A credit report will insulate you from exposure to identity theft.

10 Popular Excuses for Not Saving Money

 

How come it's so easy to come up with excuses to not save money? Ask most people why you should save money and you will get only a handful of answers. But ask them why they are not saving money, then the list will go on and on.

I'm not good at saving money.

I have heard this one a million times. Couples will say "I'm a saver and my husbands a spender". Are people just built to be savers? Is it genetic to be a saveer? If dad was a saver will his traits pass down to you? To say you inherited your dad's lack of responsibility to save makes you look as stupid as your father. Either way, with so many personal finance websites teeming with information about finances can you get away with that excuse anymore.

I am to young to save, I'll save when I am older.

Don't young people realize the time to save is now. They don't have any major expenses like a car payment or mortgage. They don't have children or debt yet. They have a lot of disposable income. I guess living for today is more palatable than saving. They might believe that being so young they have all the time in the world to make up for it later.

I don't get paid enough money.

This is the perfect example of pointing the the finger at someone else. For this excuse to be valid you are either working for free or your just making enough for the bare necessities of life. Can either of these excuse be true, really? Why not one evening sit down and write out all the money your spending in a month and see where it's going. There must be someplace it's being misspent.

I'll save money when I hit it big.
This is the talk of the person waiting to win the lotto. Why do so many intelligent people say they are waiting for there ship to come in? Just look around, how many people do you know that have won the lotto or hit it big. I'll bet you know no one. It's never going to happen. Wake up and smell the coffee.

I have got bills to pay.

People claim there bank accounts are empty because of there bills or responsibilities. I'll bet in every budget there is a little fat that can be found. It takes a determined person to cut that fat out. It's always easier to spend the money on fun things then save.

I would save money if I wanted to, I just don't want to.

The best reason for not saving money is we just don' t worry about the future. The future will take care of itself. Being ready for future opportunities or disasters is why we save.

I work hard, so I can enjoy myself.

Everyone works hard to enjoy there money. It's not right to not not spend on some enjoyable things along the way. But it's better to pay for those good times with cash and not debt. Saving will make that happen.

Money is made to be spent.

This is true. But it sure does feel good to have a nice cushion of savings to soften the blow of retirement. The goal is not to take your savings when you die, but to save money so you enjoy a secure and debt free life.

I am getting a big inheritance, there is no need to save.

If this is true for you than that's great. But for most of us this is not true. But this excuse does seem rather shallow because your being lazy now because later someone else will be footing the bill.

Why save if I am going to spend it later.

This by far the dumbest of all excuses. Having the security of savings only makes your life better and more enjoyable. It's an intangible feeling only brought about by having savings.

What is Flood Insurance and How Do I Know If I Need It?

It's that time of year again when the home insurance policies are due for renew. I got my homeowners policy and in a couple of months the flood insurance policy will follow. My mortgage company requires me to have flood insurance because my home is in a flood zone. It's a good idea because your home owners policy does not cover damage by rising waters. I'll probably never use it but I sleep better knowing it's there.

With hurricane season approaching it's better to be prepared. Some people make the mistake of thinking damage caused by rain and wind from a hurricane are covered by the homeowners policy. Many people in New Orleans made that mistake when hurricane Katrina came through.

So, if your lender doesn’t require flood coverage that obviously doesn’t mean you are safe from flood risk completely. Every home is at some type of risk for flood damage. So, how do you know what type of risk zone your home is in?

Your best bet is to visit the FEMA Flood Insurance website FloodSmart.gov and Safety.com for more information. They have a flood risk profile tool where you can type in your address and assess the flood risk of your home: FEMA Map Service Center. The results page will also show average flood insurance premiums in your area.





Don’t want to take their word for it? FEMA also offers online flood maps which are used to determine flood risk for each property. You can visit the FEMA flood map for your property to see exactly where the flood zone lines are drawn in your neighborhood.

These maps are only estimates of your home’s flood risk and should not be taken too literally. Many homes that are in “low risk” zones may experience a significant flood at some point- so it is always a good idea to purchase some flood coverage if you want to be completely protected.

In the event of a disaster, a home inventory can be your greatest asset. If your home is lost in a covered peril, your first call will be to your home insurance agent and your task of proving what was lost will begin. Will you remember everything you owned after it is gone? Especially in a time of crisis? Having a pre-established home inventory will take the headache out of that task- leaving you to focus on more important things.

Here is a checklist you can download to catalog all your belongings.

Download as Microsoft Word (261KB) 

Download as Microsoft Excel (47KB)

It's also a good idea to get out the video camera and do a room by room video inventory of your belongings. Be sure to open all the closets and record video of all your clothes, shoes, coats, and stored items. Get pictures of all special items like computers, electronics, tools, jewelry, etc. Be sure to note model numbers on expensive items.

If you have an iPhone, there's an App for that. Check out MyHome Scr.APP.book over at iTunes.