Protecting your paycheck - for today and tomorrow

That can happen in two ways, according to Sandy Botcher, vice president of disability income insurance at Northwestern Mutual. "When a family loses its usual source of income due to a disability, sometimes the only alternative is to dip into retirement savings to cover normal household expenses," she says. "And even if you don't have to take money out of savings to replace income, the other consequence of a disability is that it decreases your potential to contribute to your retirement plan."



Botcher adds that from the moment you start working until the day you retire, your ability to earn an income is your most important financial asset.



Consider this example: A $60,000 annual salary results in $2.4 million earned over a 40-year career, and that doesn't take into account inflation, salary increases, or the long-term growth potential of money invested in retirement saving vehicles along the way. If a disability prevents the individual from earning this income, or requires him to access a portion of what's already been saved (often with a tax penalty), it can have devastating impact on retirement dreams.



Recent research demonstrates the need to prepare for the unexpected. Over the past three years, 22 percent of Americans had dipped into retirement savings and 22 percent had stopped or reduced their savings contributions, according to Northwestern Mutual's 2013 Planning and Progress Study. More than half of those surveyed say unexpected expenses are to blame. Yet 23 percent of respondents say they want to be more cautious with their money, and feel they have a lot of catching up to do.



"The Great Recession has reminded us that we cannot afford to lose our incomes," says Botcher. "But we also need to remember that our chances of losing our incomes are determined by more than just our employers' viability or our career success."



In the minds of consumers, few things seem more unexpected than a disability. Yet the Social Security Administration reports that about one in four 20 year olds today will become disabled before retirement.



One way to prepare for the possibility of being unable to work is disability income (DI) insurance, designed to help pay living expenses, maintain lifestyle needs and preserve assets accumulated for retirement and other purposes. Many employees think that coverage they get through their employer's group disability policy is enough. They should think again.



Group DI typically has a cap at 60 percent of salary; other forms of compensation like bonuses or commissions may not be covered. In addition, the benefits are taxable. So, if earning less than two-thirds of one's current salary would make it difficult to make ends meet as well as work toward goals like continuing to fund retirement, it's important that another option be considered to bridge the gap.



That option is an individual DI insurance policy. Premiums for individual DI policies are paid after taxes, so the benefits are not taxed, and the policies are portable.



"We can't forget that the source of a retirement program is the ability to work. Having individual disability income insurance is a way to address one of the key risks to achieving your retirement goals," Botcher says.

Save money and do a world of good with reusable containers

Good news. There are simple ways to save money especially if you go back to the time-honored concept of BYO - "bringing your own" container of coffee, lunch or water as part of your daily routine. This can do a world of good not only for your pocketbook, but also for the environment, and even your health. Here are some tips to get you started:



* Bring your own coffee or tea



According to the Environmental Protection Agency, Americans throw away 25 billion foam cups each year. And 500 years from now, those cups will still be sitting in a landfill. Despite the convenience of foam cups, small changes such as bringing coffee or tea in a reusable container can have both an environmental and economic impact.



For example, Genuine Thermos(R) Brand makes a vacuum insulated commuter bottle that will keep a beverage hot for eight hours or cold for 12 hours. Not only is this great for a day at the office or running errands around town, it saves the cost of purchasing beverages day in and day out. If you still like an occasional custom-made coffee or chai latte, some retailers will fill your own bottle.



* Bring your own lunch



Many grownups still have fond memories of a school lunchbox featuring their favorite TV or movie character. Bringing your own lunch in an insulated lunch carrier is a good way to keep your favorite foods fresh and tasty, and a smart way to save money. According to a report in Time magazine, bringing your lunch to work can cut your weekly costs by 80 percent.



To keep foods fresh while on the go, insulated reusable containers are an ideal option. They come in all shapes and sizes to keep snacks or lunch foods hot or cold for hours, saving you the cost of going out and making it easier to stay away from unhealthy temptations.



* Keep yourself hydrated



As you get in the habit of bringing your own reusable portable container, don't neglect the one thing every human needs for basic good health - water - to help you hydrate throughout the day. According to the Mayo Clinic, water makes up about 60 percent of your body weight. Lack of appropriate water intake can lead to dehydration, draining your energy and making you feel tired.



The Institute of Medicine determined that adequate water intake for men is roughly 104 ounces and is roughly 72 ounces for women. Instead of purchasing bottled water in containers that will also end up in landfills, bring plenty of your own water in a portable, reusable container. One easy option for quenching thirst while on the go is the 24 oz. Hydration Bottle with Meter that is made of BPA-free Eastman(TM) Tritan and has a rotating meter built into the lid to help keep track of your daily water consumption.



Embracing the bring-your-own mentality can make a world of difference economically and environmentally. So, take the first step to "bringing your own" on May 23, which is the inaugural National Fill Your Thermos Brand Bottle Day, and celebrate the doing-good and money-saving power of the reusable container.

Rest easy: Expert advice on choosing a mattress

Everyone likes to save money, but some purchases it just doesn't pay to skimp on. If you're buying an item that affects your well-being - like shoes or a mattress - it's smart to buy the best you can afford.



Your mattress directly affects your ability to get a good night's sleep, according to experts. Poor sleep has been linked to a host of physical and mental health problems, including depression, anxiety, hypertension, memory loss and appetite changes.



If you're not resting as well as you know you should and it's been 10 years or more since you bought a mattress, you may need to take advantage of summer mattress sale season. The summer holidays - Memorial Day, Independence Day and Labor Day - and the weeks in between are a great time to find a new deal on a mattress, as retailers tend to ramp up discounts and promotions at this time of year.



"The Better Sleep Council recommends that you replace your mattress every five to seven years," says Jim Ruehlmann, a mattress expert with mattress-maker Simmons. "If you haven't gone mattress shopping in a while, you may be surprised and a bit overwhelmed by the variety of choices, advances in technology and plethora of sales you'll find this summer."



Ruehlmann offers these tips for making your next mattress purchase:



* When it comes to comparison shopping, patience pays off. Watch the sales fliers that will be arriving in your mailbox or tucked into your local paper. The "red, white and blue" holidays are prime sale time for mattress sellers. If you have an idea of what you want, chances are it will go on sale this summer.



* Play the pricing games to your advantage. Stores near each other rarely carry the exact same make and models of mattresses, so it can be difficult to do a direct price comparison. To get a fair comparison, note the construction of a model you like, including the types of foams, coil count, etc. Then take that information to a competing store and see if they have a bed of similar construction and quality that feels just as good - but for less money.



* Brush up on new technology. If it's been 10 years or longer since you bought a mattress a lot has changed. For example, if you tried memory foam years ago and didn't like the hot, quicksand sensation older foam types created, you may be pleasantly surprised at how new technology has eliminated that problem. For example, some mattressesfeature memory foam that provides the supportive sleep, contouring comfort and pressure relief of traditional memory foam, but helps dissipate heat and has quick recovery - meaning the foam doesn't make you feel hot when you lay on it and springs back to shape quickly as you move.



* Coils count. In traditional coil mattresses, those coils are what make a mattress comfortable - or uncomfortable. Quality coil construction equates to better sleep. Coils should provide motion separation, comfort and back support. The top section of the coil, which is tapered, conforms to your shape for comfort and pressure relief. The firmer barrel-shaped bottom section reacts to body weight and sleeping position for individualized back support and alignment.



* Never settle. You'll spend more hours in bed than on your couch, so keep searching until you find one that you feel good about. When testing in the store, lay on the bed however you normally sleep and stay that way for a few minutes. Be sure to try the bed with your sleeping partner beside you, so that you can feel the level of motion when one of you moves around.



* Ask about the store's policies for delivery charges, returns, testing periods and removal of your old mattress. Every store is different, and the policies may affect where you decide to buy.



Finally, says Ruehlmann, "Buy the box spring."



A mattress and foundation complement each other. Buying just the mattress may reduce its comfort and support - and shorten the bed's lifespan.

How to get your offers accepted to buy properties

The biggest challenge facing most real estate investors is making acceptable offers, especially when buying properties is the basic foundation of real estate investing.



Unless you buy properties, you cannot make any money.



Here is how to make offers that get accepted.



The offer you make depends on the type of property you are buying.



1) Buying from motivated sellers



If you buy houses from motivated sellers, it is necessary to have the following pieces of information:



a) Market Value



Do your due diligence to find out conservatively how much the house would be worth in perfect condition. You must have this information before you can make any offer.



b) Mortgage balance



You must get this information before you can make an offer. A seller who is not willing to disclose this information is not motivated enough. Move on to a motivated seller.



The mortgage balance must allow you to buy the house and still leave you with a profit. It must allow you to make a profit and own it free and clear.



c) Repairs needed



It is possible to estimate repair costs with the information provided by the seller.



You must know how much you need to fix up the house before you can make an offer. Of course, I like to see the house and do my own repair estimates.



d) Asking price



If the owner is asking for too much money given the above 3 pieces of information, the dealmight never happen.



A good asking price must take into account the market value, mortgage balance and repairs. You can then make an offer based on the asking price. Make an offer if the mortgage balance allows you to make a profit.



Even though it is necessary to consider the seller's needs, no offer can be too low. If they are facing foreclosure, then they probably need some money to move, or their asking price might be just enough to get away from the property.



If the mortgage balance is too high compared to the value of the house, it does not make sense to make an offer. Move on to the next deal.



There is no bad offer, except the one you have not made. Always make the offers that make sense to you. You'll be surprised how many get accepted.



2) Buying foreclosed properties



The asking price and repairs are the only important considerations to make in this case. Banks selling these properties are willing to negotiate.



Most REOs are listed below market value. Depending on your exit strategy, if the numbers are close to making sense, by all means make an offer.



Lastly, remember to make your offer lower than the asking price.



by: Simon Macharia

http://www.articlecity.com/articles/home_improvement/article_6984.shtml

Shape your financial future by checking your credit report and scores

Do you know what's on your credit report? Do you know your credit scores? If you don't, you're not alone, but now is a good time to better understand how they work before you go apply for that loan. By waiting to check your report and scores until you want to buy a car or house, you may discover too late your financial history forces you into strict loan terms with high interest rates, or, worse, disqualify you from getting any loan at all. How can you avoid this situation?



Responsible past credit behavior, a healthy credit score and understanding your debt picture all play crucial roles in achieving your overall financial goals. So reviewing your credit report and knowing your VantageScore credit score and how you compare to others is essential. By reviewing your report, you can verify the information in it, and take actions to correct any item that may require it. If you have any negative marks, now is the time to take action to address those issues and increase your credit score.



Perhaps the biggest misconception about credit scoring is that all the three major credit bureaus - TransUnion, Equifax and Experian - produce the same score. Although similar, there are many different scoring formulas, so variations can occur.



The three major credit bureaus partnered to develop VantageScore credit score to make credit scores more consistent and predictable across all three credit bureaus.



VantageScore credit scores fall within a range of 501 to 990 and include a letter grade from A to F. the higher your score, the better. Even though new methods provide more consistent formulas, there may still be variations across the three credit bureaus because information on individual credit reports may differ from bureau to bureau. Furthermore, each company is provided updated information from creditors on different days of the month, so an increase or decrease for one might happen on the first day of the month while another may not occur until the 15th.



These differentiators are why it's important to know all three of your scores, which you can easily get with a paid TransUnion membership. If you find the scores you have are lower than you'd like, there are some key things you can do. Most credit scores are derived by looking at these five attributes. By understanding what makes up these five factors, you can begin to change your behavior to improve your credit scores.



1. Payment history: A good record of on-time payments will help increase your credit scores. Review your credit reports closely and regularly. Late payments and other negative marks typically remain on your credit reports for up to seven years from the date of first delinquency. If you do find a mistake, take the proper steps to correct it so you can increase your scores.



2. Credit account history: An established credit history makes you a less risky borrower. Keeping old accounts that you have paid off can also help because keep your debt-to-credit ratio more favorable. Think twice before closing old accounts before a loan application.



3. Outstanding debt: High balances in relation to your credit limits can lower your credit score. Aim for balances less than 35 percent of your total available credit. You can determine your debt-to-credit ratio by reviewing your credit report now.



4. Recent inquiries: When a lender or business checks your credit in response to an application, it causes a hard inquiry on your report and may result in a slight ding to your credit score, so apply for new credit in moderation. Remember, viewing your own report and score is counted as a soft inquiry and doesn't change the score one way or another.



5. Types of credit: A healthy credit profile has a balanced mix of credit accounts and loans. It shows you have paid bills in the past and know how to manage different types of credit obligations. By reviewing your current credit reports and learning what your three scores are, you'll set yourself up for financial success in the future. Visit www.transunion.com for more information.

Inspirational Quote of the day by Tony Robbins

It is in your moments of decision that your destiny is shaped.



-Tony Robbins