Paul Merriman's Book - First Time Investor: Grow and Protect Your Money - Review

Investing for retirement can be one of the most confusing jobs we have to deal with in our financial lives. It not only confuses people, it also scares them to death when they see their investments declining in a down market. The only way to overcome these impediments is to have a good solid plan. With all the different voices out there, with conflicting advice, who do you listen to? There is a new book out that explains, in plain English, how to do it right. 

The "How To Invest" series - "First-Time Investor: Grow and Protect Your Money" by Paul Merriman with Richard Buck is Merriman's latest book on educating young and old on how to invest and handle their money. The title of the book says "First Time Investor" in big bold type. This is one of the things that I like about Merriman's continuing goal of helping the new and equally confused investor. 

The first thing I wanted to do with the book was to dive in and get to the meat and potatoes of where to put those investing dollars. I was surprised to find the first half of the book teaches the many foundational things you needed to learn before investing any money. It reminded me of when I read Paul Merriman's last book, "Financial Fitness Forever". Merriman is a teacher at heart. He wants you to be educated as to the reasons things work the way they do. Just listening to an author and following a to-do list leads to failure. Knowing why and really understanding why you are investing in a certain way, with certain investments, keeps you on track when the markets are going crazy. The average investor does great when markets are doing well. It's knowing what to do when the markets are in turmoil and your afraid of losing you hard earned dollars. 

Book Review - Financial Fitness Forever: 5 Steps to More Money, Less Risk, and More Peace of Mind by Paul Merriman

The book is an easy read of a 114 pages. It's divided into 11 chapters and each chapter divided into easy to read and understand topics. As you will find in all of Merriman's books this book also has data, figures, and illustrations backing up what the author talks about. Whether Merriman is explaining 401(k)'s, mutual funds, or bonds you will always find the data to back up the information.

Why listen to Paul Merriman?

Paul Merriman has been advising people on how to manage and invest their savings for over 30 years. He believes it's necessary to explain the risks, mistakes, and stumbling points many investors will encounter. He explains the good, the bad, and the ugly so you can make informed investing decisions. His many years of meeting with clients and putting together investment plans has given him the knowledge and a passion for helping people learn how to be successful investors. 

Who is this book for.

While reading this book I come across many things I already know and many things I didn't. But I consider myself well read on the subject matter. But this book is for the new investor as well as the old. You won't be overwhelmed or bored. The new investor will learn what to do before even putting one dollar into an investment and shown the best places to invest. The young will gain a firm foundation for investing. The seasoned investor can compare notes and learn a thing or two. 

I recommend you get this book because if want to learn where you should invest your money you will get that knowledge and more in this book. You can purchase the book on Amazon.com or at PaulMerriman.com where digital copies in a variety of formats are available for all your electronic reading devices. 

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Private And Public Sector Organizations Prefer Direct Debit

The rise in popularity of online banking has led many British consumers to abandon traditional payment methods, such as cash or cheque, in favor of automated payment methods, such as direct debit. As a result, many organizations have had to expand the range of payment options they offer.

Flexibility

According to one estimate, over 3.3 billion direct debit payments were processed in 2011, an increase of two-thirds o the number processed ten years earlier. One of the reasons direct debits are becoming widely accepted is their flexibility. 

They are ideal for ach payment processing of the same or varying amounts on the same or varying collection dates. They are also less expensive, in terms of transaction costs, than traditional payment methods, including credit cards. 

They are also immune to the effects of unexpected events, such as postal strikes, which can play havoc with payment methods that rely on paper. Their only real drawback is that they are not suitable for one-off payments.

Efficiency

Public sector organizations are always looking to improve their efficiency as an alternative to making job cuts. As a result, many public sector organizations, including local councils, the Driver and Vehicle Licensing Agency (DVLA), and TV Licensing, now offer direct debit as a payment option for Council Tax, business rates, commercial and domestic rent, road tax, and many other recurring payments. In fact, many private and public sector organizations offer discounts to encourage consumers to pay by direct debit.

Direct Debit Guarantee

Direct debits for the public sector ensure both parties that bills are paid on time. If a direct debit payment fails, both the payer and payee find out quickly and can take prompt action to rectify the situation. 

Furthermore, the Direct Debit Guarantee entitles consumers to a full and immediate refund if an error is made in the payment of a direct debit from their bank or building society account, regardless of who actually made the error. 

Direct debits can only be set up for payments to approved payees, who are subject to rigorous quality control procedures and must provide indemnity guarantees through their banks, so unscrupulous organizations cannot take payments that are not due to them.

Direct Debit Versus Standing Order

Over 75% of British consumers already pay their Council Tax by direct debit or standing order. The principal advantage of direct debit, however, is that the payee can make amendments to the payment amount without needing to obtain the payer's signature on each occasion. 

The payee must, however, give advance notice, typically 10 working days, of any change(s) to the payment amount and collection date. If the collection date falls on a weekend or bank holiday, the payee must take the payment after the due date unless they give advance notice. 

Most bank and building society accounts, including some special savings accounts, accept direct debit payments. Banks and building societies retain the details for 13 months from the date of the last payment. 

At the end of this period, known as a dormancy period, the payee must obtain the authority of the payer to continue collecting payments.

AUTHOR BIO

Peter Smith holds a Master's Degree in business administration and has worked extensively in the public sector during his career. He regularly writes about automated payment methods, including direct debits for the public sector and various business-related websites and blogs.

3 Things to Do Before Retirement (Other Than Securing Finances)

Retirement (Photo credit: Tax Credits)

Whether you are prepared financially or not, there’s more to retirement than just having enough money in savings, life insurance and retirement funds to survive after your working days are over. Sure, financial stability is the foundation to a happy, stress-free retirement, but there are a few other things that must be done before you clock out from your last shift on the job.

The following three pieces of advice will give you the peace of mind you need to enjoy a retirement full of fun and relaxation.

1. Pay off debt: Ideally, you should be working toward a zero-debt goal long before you set a definitive retirement date. As a rule of thumb, you should focus on paying off high-interest rate debt first (such as credit card debt), then pay off moderate-interest rate debt (such as car loan debt) and then pay off your low-interest rate debt last (such as your mortgage). Obviously, you want to make regular payments on all of your debt, but whatever high-interest rate debt you can pay off early, find a way to do it. It will help you save money in the long run. Paying off all debt before retirement gets a huge monkey off your back and allows you to quit working free of worry.

2. Retire near family and friends: We’re living in a world where it isn’t always common to reside in the same town (or even region) as your family and close friends. Retirement can be lonely; if you aren’t located near the people you love and enjoy spending time with. If you moved years ago for work (or if your family or friends moved away for work), it may be a good idea to think about moving closer to someone or a group of people you can depend on for help in your older years. A two-hour drive is the longest distance that should separate you from your closest friends and family members. As you grow older, the importance of this point will become clearer.

3. Clean out the house: Preparing your home for retirement is a must. You and your family have probably accumulated a lot of stuff over the years. Some of this stuff may be junk, and some of it may be for keepsakes. Dig through closets, the attic and other storage spaces, and parse out what you want to keep and what you want to give away and throw away. This will save you and your family a huge hassle down the road, because sooner or later, someone is going to have to clean it out. It also frees up space in your home for new uses, like a craft or hobby room.

Retirement is supposed to be fun and free of worry. By making the necessary preparations, you will make more time for traveling and doing the things you always dreamed of doing when you were working.

As a regular contributor to several finance websites, like www.CreditScore.net, Stella Walker uses her knowledge of economics, consumer trends and budgeting to help readers better understand their own personal finance issues. Feel free to leave your questions and comments for her below!

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Insuring Your Teen Driver as an Older Parent

Mark McCrell is an auto aficionado who loves to drive his 1974 Buick LaSabre around town and write about all things auto. He currently blogs for the website AutoInsuranceQuotes, which specializes in cheap auto insurance. 

Of all the benefits and drawbacks of becoming a parent later in life, a strong benefit is that you are most likely more equipped to handle the financial challenges that accompany raising a teenager. This is most true when it comes to adding your teen driver to your car insurance policy. Your greater age and experience are powerful allies to have in your corner for this fight. Here are some tips for surviving adding your teen to your insurance policy. 

You have some good things on your side as an older parent: 

● Your credit score is generally higher 

● You’re more likely to be married, which can lower your premium overall 

● You’ve most likely been with your insurance company for a long time 

● You’re more secure in your financial affairs, including investments and saving 

● You’re more likely to be a homeowner, in which case you can bundle home and auto 

● You’re more likely to have multiple cars under the same policy 

Tips to insure your teen driver for less: 

Give them an inexpensive, safe car 

If you are giving them a car, make sure that it’s a safe car that’s cheap to insure. They may beg for the dragster or the muscle car, but if you put your foot down and get a car that’s safe and reliable, then you can make sure they are safe and save money on insuring your teen. 

Raise their deductibles 

Raise the deductibles on your teen’s policy to $1,000 more. They are almost sure to have a few small dings and scrapes along the way and if you don’t have to file a claim for every paint scratch, then you will save money in the long run with a claims free discount. 

Drop the comprehensive coverage 

If your teen is driving an older, or less expensive car, you may want to drop your comprehensive coverage entirely. If your car is worth less than the deductible, then you definitely want to consider dropping it off your policy. 

Continued education 

Enroll your teen in a defensive driving course, or some insurers will send an information packet out or instructional DVD to your teen. If they complete the included material, then you could get another break on your insurance. 

Don’t let your teen modify their car 

Many teen drivers may be in to learning about car modifications that make cars look cooler or driver faster, but these modifications can lead to huge jumps in your insurance premiums. If you modify your car to give it more horsepower or modify the body to make it look “sleeker,” then it could pose a greater risk for theft or vandalism. If your teen wants to help modify a car, just make sure that it’s a friend’s car. 

There are lots of tools in your tool belt as an older parent that will help you to build a better financial future for your teen driver. Make sure you take advantage of your wisdom and experience and turn it into extra money in your pocket each month, just in case your teen wants to borrow money to go to the movies.

Understanding the Real Story with Payday Loans

Payday Loans Neon Sign (Photo credit: rinkjustice)

Payday loans can provide instant financial relief to those who are experiencing short term cash crunches. Payday lending companies specialize in short term loans that target employed individuals as well as those with stable and regular source of income. However, it is important to note that this short term loan was never meant to be treated as an alternative to regular bank loans.

Payday loans have a distinct purpose and you have to understand that they are in a completely different league from regular bank loans. If your need for extra cash is minimal and immediate and you are looking for a short term payment period, then a payday loan may be the ideal choice for you.

When it comes to payday loans and other types of short term loans, it is extremely important that you abide by the terms and conditions of the loan and ensure that you have the cash to pay back the loan when it matures. For payday loans, you have to develop the mindset that you are drawing part of your unearned income. Thus, you need to set aside that portion of your next paycheque for the amount that you need to pay back the loan even before you take out one.

Think short term when it comes to payday loans or cash advances. This means that such loans are to be used as financial tools for exigencies that are temporary or transient. And while it may be tempting to opt for payday loans every time we need cash, it is extremely important that we don’t misuse or abuse this credit option.

To avoid serious complications and problems when you take out payday loans, it is important that you know and abide by the rules with regard to the use of payday loans.

• Don’t use it as substitute for regular loans – You are inviting serious trouble when you look at payday loans as fallback in case your application for a loan with the bank is denied.

• Don’t use payday loans to pay off other loans – This unsound practice will dramatically escalate the cost of your loans. And this is the main reason why people get into a vicious debt cycle.

• Don’t borrow more than you need – You have to observe restraint when it comes to this type of short term loan. Take out only the amount needed for essential things.

One of the best ways to find the most reliable and trusted providers of payday loans is by checking the latest information and feedback in websites that specialize in reviews and comparison of various lending companies.

Of course, you would want to find out more about the track record of the companies before you make your final choice. In addition to this, it is also imperative that you assess the kind of service that they provide to their clients. You are better off with a company that provides 24/7 customer assistance.

Finally, before you finalize the loan agreement with a lending company, it is essential that you read through the fine print of the loan agreement and clarify all issues with the company representative.

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Graduates Moving Back Home To Retired Parents

 (Image credit: Getty Images via @daylife)

It should be a time of happiness and satisfaction but the graduating class of 2012 are feeling a sense of defeat. A combination of a weak labor market and economic climate many graduates are forced to move back home. But in mom and dad's house many things have change since the student was a freshman. Mom and dad are now retired and were not expecting their kids moving back in.

These boomerang graduates are facing double digit unemployment rates in some fields. Even with advanced degrees, graduates can't land jobs. To make matters worse even if they can find a job, grads are burdened with school loan debt or have extensive credit card debt putting them into a position of not being able to make it in the real world. Making moving back home the only viable option.

Moving back home is not anyone's first choice. Lots of graduates have tasted the free life from living at college and don't want to give that up. Many parents have not planed on having anyone move back in, many have already made plans to downgrade to smaller homes. They also have tasted the life of not having any children at home.

If the student does have to come home there are a few things to make the situation equitable for both parties.

Helping Around the House

Moving back home changes the dynamic for the graduate. When they were on their own they called the shots. When coming home it changes to community mode. That means pitching in on the household work. Grads should offer to help around the house with cutting the grass, cleaning the house, or cooking meals. 

Also contributing to the family financial needs should be addressed. Some amount of money should come from the grad that should go to the mortgage or rent. There is an increase in the variable expenses of the home, the grad should step up and contribute their fair share.

Retired parents still need to pursue their goals and plans. The financial impact of the student returning should be kept at a minimum and it will be with the student contributing financially. It may even benefit the parents by having the grad take care of the home, dog and other obligations when traveling on vacation.

Full and Open Communication

Good communication is the most important part of moving back home. Mom and Dad must be specific and honest about the rules and expectations. The parents must explain that this is a short term solution. They must set up rules concerning friends, activities, and time frame.

The student should thank the parents and throughout the process express appreciation and gratitude. Even though the situation is not perfect, any frustration or anger should be kept in check and not vented on people who are helping you.

The parents should make clear that they are retired and their finances must not be put out of balance. Large purchases and expenses are not allowed, the future of their retirement is at stake.

Falling Back On Old Habits

There is nothing like the benefits of living at home. I tell my kids they will only appreciate it when they are on their own.  Plenty of food, someone to cook it for you, your laundry done, and a clean place to live. Sometimes when coming home you fall into the old parent-child, mothered relationships. If parents fall back into this old style they could be hurting the student. 

At this time of their lives with hopes of starting their career and lack of money it contributes to a lack of self-esteem. They don't need to be coddled. The parents job is to point them in the right direction and offer encouragement. 

Parents also have old habits like paying for everything. It's an old habit parents must try to avoid. When you see your child working on their job search and it's tough you may want to help financially. Remember they are adults now and must figure this out themselves. 

Always be Searching for That Job

The students job when living at home is to be always searching for a job. It's not time to lie on the couch and watch Oprah. Hit the pavement a good part of the day and when home be on the computer sending resumes, emailing perspective employers, and networking.

During this process, the student must be communicating the progress or lack of progress they are making. The parents saw to it to give the grad a good education, the grad. should respect the parents sacrifice and apply themselves fully.

The Parents Main Goal

When things aren't going well a loving parent always wants to step in and make things better. But when the children are adults it is the the job of the parents to show them how to fix their own problems by being independent. Going through this process will build a better relationship between parent and child. Parents will gain a whole new respect for their child and the child will see their parents in a whole different way. 

During this process, sadly, the parents can really do some damage to their retirement nest egg. If you are not able to pay expenses because you are helping your kid out, you on the wrong track. 

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