It seemed like a low-risk move - until the bank that issued the CD failed. Then Katker had to get in line with other former customers of California-based IndyMac Bank to recover his cash. It took him nearly a month.
“I didn’t lose my principal, but I lost access to the money and almost a month’s worth of interest,” said the retired stockbroker, who lives in Orlando. “It upset me because my brokerage knew IndyMac was having problems but didn’t tell us.”
Even relatively safe, federally insured certificates of deposit issued by banks and credit unions can pose hazards for investors seeking to squeeze the biggest returns from their portfolios amid a slumping stock market and historically low interest rates.
In some cases, investors are turning to their brokerages, which offer them higher CD rates based on special deals negotiated with certain banks. In other cases, nonbrokerage firms are luring investors with high rates they claim to have tracked down at relatively unknown banks.
Experts say that, even with something as straightforward as a savings CD, you should be wary of any claim that sounds too good to be true.
“There is a real need for consumers to be on their toes and do their homework,” said Greg McBride, senior financial analyst for Bankrate.com in North Palm Beach, Fla.
Start with the basics, such as the current limits on Federal Deposit Insurance Corp. coverage. Generally, each account holder at a single bank or credit union is covered for as much as $250,000, though people can increase their coverage by having both joint and individual accounts.
Next, you should know something about the bank or credit union whose CD you’re planning to buy. The FDIC (1-877-275-3342 or fdic.gov) can tell you whether the bank is still in good standing. For credit unions, call 1-800-755-1030 or go to ncua.gov. Any sign of financial difficulty at an institution should give you pause, even if it is insured by the FDIC. If the bank does fail - as 64 U.S. banks have since early 2008 - you may have an aggravating and income-losing wait before you regain your money.
Buying a CD through a broker, as Katker did, can complicate things further.
Although “brokered CDs” typically offer some of the best rates available, there are limits, in some cases, to the FDIC insurance that could result in loss of principal.
“If you need to get your money out prior to the CD maturity date, it’s not as easy as forfeiting some interest as an early-withdrawal penalty and going on your way,” McBride said. “In fact, the CD will be sold to an investor, and the amount you receive back depends on what the investor will pay on the secondary market.” You should also be sure you know how long your money will be tied up before you bite on a high rate. Fidelity Investments, for example, recently offered its clients a CD paying 5.5% from a community bank in Georgia. The catch? You would have to lock in your money for 20 years.
Buying through a brokerage also may expose you to account fees, said Jason Chepenik, managing partner of Chepenik Financial in Orlando. “Some brokerage accounts have closing fees of up to $100, so that would eat into any extra income you’d get” from the higher CD rate, he said.
Potentially worse are high-yield CDs promoted by unfamiliar companies that may, in fact, be peddling much riskier investments.
Florida regulators broke up a CD-related fraud two years ago run by some companies in Fort Myers. The scheme promoted high-paying CDs to lure mostly elderly investors but instead sold the victims high-risk, unregistered securities such as viatical settlements, which are life-insurance policies tied to terminally ill policyholders.
Some companies - often known as CD-locater services - operate legitimately by referring investors to a bank that offers the high-yield CD advertised, regulators say. Even if the advertised rate isn’t available, the firms must cut a check to investors to make up the difference in yield.
But people who respond to such promotions should be ready for a sales pitch for other financial products because that’s how such operations really make their money, said Mark Mathosian, an investigations manager for the Florida Office of Financial Regulation.
“These companies are looking for sales leads,” he said, “and if many of the people who come in asking about the CD end up buying an annuity, the company will make some big commissions.” Investors should call the Office of Financial Regulation consumer phone line (1-800-848-3792) to find out if a particular company is properly registered with the state and whether anyone has filed complaints against it. A veteran owner of one such company insists the CD-locater business has unfairly gotten a bad reputation because of a few isolated cases of bad business practices
http://rismedia.com/2009-06-29/are-brokered-cds-too-good-to-be-true-look-closer/#ixzz0JwSrPtKe&D
Tuesday, June 30, 2009
Life Insurance Calculator - Determine How Much Life Insurance You Need
A life insurance calculator, or life insurance needs calculator, is one of the most invaluable tools when you have in mind to buy life insurance. You have many options that will help you decide which policy is best for you. You can just guess that a certain amount will do the job. You can use the rule that many agents use which amounts to somewhere between 5 and 10 years income. Or you can use a life insurance calculator specifically designed to tell you precisely how much life insurance you need after you answer a few questions.
The questions go something like this for couples, with or without children. You can also apply them to anyone who has someone financially dependent on him or her.
1 - How much do you anticipate your loved ones will need to pay for funeral expenses? In todays world that would be about $10,000.00
2 - What about Estate Taxes, how much do you need to put away to take care of that? This can be considerable depending on the size of the Estate.
3 - Excluding your mortgage, how much unpaid debt do you have? Figure it out and enter that figure in the space provided on the life insurance calculator.
4 - How much liquid cash do you think would be good to put aside for unanticipated emergencies? This depends on ones lifestyle. Each person will come up with a different figure.
5 - What of a college fund for the children? How much do you think this will amount to for each. You can low ball that at about $75,000 for each child.
6 - If you were taken out of the picture what would the living expenses for the family be? How much will it cost per year? Here we are talking about anywhere between $25,000 and $150,000 for the average person. For more affluent people, accustomed to living big, this amount can be humongous.
7 - We need to take into consideration the spouses income and enter that amount. This will be deducted from the amount of income needed making the need arrived at by your life insurance calculator quite realistic.
8 - We also need to consider the Social Security benefit the spouse will receive.
9 - What kind of liquid assets do you both have? What is the value of your savings and investments? Arrive at a figure and enter that into the space provided.
10 - You know your spouse well, what kind of approach does s/he have toward investments? Would you consider the spouses approach aggressive or is s/he more conservative in this area?
For the business person the questions would be a little different.
1 - As the sole proprietorship and the owner of the business are one in the same the questions would be similar to those asked a married person.
2 - Partnerships and corporations use the value of the business and the amount of shares owned by each partner or shareholder to determine the dollar value of the amount of life insurance that would be placed on each life.
The questions go something like this for couples, with or without children. You can also apply them to anyone who has someone financially dependent on him or her.
1 - How much do you anticipate your loved ones will need to pay for funeral expenses? In todays world that would be about $10,000.00
2 - What about Estate Taxes, how much do you need to put away to take care of that? This can be considerable depending on the size of the Estate.
3 - Excluding your mortgage, how much unpaid debt do you have? Figure it out and enter that figure in the space provided on the life insurance calculator.
4 - How much liquid cash do you think would be good to put aside for unanticipated emergencies? This depends on ones lifestyle. Each person will come up with a different figure.
5 - What of a college fund for the children? How much do you think this will amount to for each. You can low ball that at about $75,000 for each child.
6 - If you were taken out of the picture what would the living expenses for the family be? How much will it cost per year? Here we are talking about anywhere between $25,000 and $150,000 for the average person. For more affluent people, accustomed to living big, this amount can be humongous.
7 - We need to take into consideration the spouses income and enter that amount. This will be deducted from the amount of income needed making the need arrived at by your life insurance calculator quite realistic.
8 - We also need to consider the Social Security benefit the spouse will receive.
9 - What kind of liquid assets do you both have? What is the value of your savings and investments? Arrive at a figure and enter that into the space provided.
10 - You know your spouse well, what kind of approach does s/he have toward investments? Would you consider the spouses approach aggressive or is s/he more conservative in this area?
For the business person the questions would be a little different.
1 - As the sole proprietorship and the owner of the business are one in the same the questions would be similar to those asked a married person.
2 - Partnerships and corporations use the value of the business and the amount of shares owned by each partner or shareholder to determine the dollar value of the amount of life insurance that would be placed on each life.
orlando life insurance
After years of practicing law for insurance companies, SeifertMiller, LLC is ready to work with the accident victims in Florida. These accident lawyers in Orlando can help reclaim losses due to loss of work or inability to work, car repairs and/or purchase of new car due to a total, or the loss of a loved one's life. Finding a trusted personal injury attorney does not have to be difficult. With 40 years of combined legal experience, a personal injury attorney Orlando from SeifertMiller, LLC is knowledgeable of the industry and is compassionate about representing accident victims, young and old.
Whether a motor vehicle or motorcycle accidents, an Orlando accident attorney is skilled at keeping their clients with an advantage in court. This is due to their immense background in working for their opponent, the insurance company. Other instances a person may hire a person injury attorney Orlando is for injuries related to defective products or cars, whatever the personal injury, SeifertMiller, LLC is dedicated to representing the people of Orlando and outlying communities.
Founded in 1996, SeifertMiller, LLC, an experienced team of accident lawyers Orlando, have handled several personal injury and accident cases for victims. With a superiority knowledge base, an Orlando accident attorney from SeifertMiller can help you achieve success! With not only knowledge, but professionalism and integrity, a personal injury attorney Orlando can work hard to upload your legal rights.
Motor vehicle accidents are growing rapidly. Whether hit while driving, while a pedestrian or even by a drunk driver, an Orlando accident attorney can fight for the losses and damages you have incurred as a result of this motor vehicle accident. Some of their motor vehicle accident expertise includes 18 Wheeler accidents, commercial driver accidents, uninsured motorist, public transportation accidents and more! This means, no matter your particular situation, SeifertMiller and its experienced accident lawyers Orlando can help you today!
For those incurring loss and/or damages as a result of a motorcycle accident, a personal injury attorney Orlando can help you as well. SeifertMiller is not limited to just motor vehicle accidents; they are dedicated to representing the people of their community who have suffered an injury and losses as a result of a motorcycle.
Whether a motor vehicle or motorcycle accidents, an Orlando accident attorney is skilled at keeping their clients with an advantage in court. This is due to their immense background in working for their opponent, the insurance company. Other instances a person may hire a person injury attorney Orlando is for injuries related to defective products or cars, whatever the personal injury, SeifertMiller, LLC is dedicated to representing the people of Orlando and outlying communities.
Founded in 1996, SeifertMiller, LLC, an experienced team of accident lawyers Orlando, have handled several personal injury and accident cases for victims. With a superiority knowledge base, an Orlando accident attorney from SeifertMiller can help you achieve success! With not only knowledge, but professionalism and integrity, a personal injury attorney Orlando can work hard to upload your legal rights.
Motor vehicle accidents are growing rapidly. Whether hit while driving, while a pedestrian or even by a drunk driver, an Orlando accident attorney can fight for the losses and damages you have incurred as a result of this motor vehicle accident. Some of their motor vehicle accident expertise includes 18 Wheeler accidents, commercial driver accidents, uninsured motorist, public transportation accidents and more! This means, no matter your particular situation, SeifertMiller and its experienced accident lawyers Orlando can help you today!
For those incurring loss and/or damages as a result of a motorcycle accident, a personal injury attorney Orlando can help you as well. SeifertMiller is not limited to just motor vehicle accidents; they are dedicated to representing the people of their community who have suffered an injury and losses as a result of a motorcycle.
Maine Law Backs Life Settlements
A new law in Maine requires life insurance companies to advise senior life insurance policy owners that life insurance settlements are an alternative to surrendering their policy or allowing it to lapse.
The law, Chapter 376, ensures that policy owners can ask their life insurance company for the value in the secondary market for policies that would otherwise be surrendered or lapsed.
The law requires insurance companies to notify Maine seniors facing the termination of their policies that settlements are a financial alternatives. Insurers must include in the notice a brochure that tells seniors of their rights as a policy owner and describes life settlement products.
The law also prohibits insurers from impairing life settlement transactions.
Doug Head, executive director of the Life Insurance Settlement Association, Orlando, Fla., points out that the state of Washington recently adopted a similar law.
“These new laws are terrific developments for senior consumers and are expected to be adopted in numerous states,” said Head.
Comparable measures are under consideration in Indiana and Kentucky, LISA reports.
Maine’s law was sponsored by State Senator Nancy Sullivan.
The law, Chapter 376, ensures that policy owners can ask their life insurance company for the value in the secondary market for policies that would otherwise be surrendered or lapsed.
The law requires insurance companies to notify Maine seniors facing the termination of their policies that settlements are a financial alternatives. Insurers must include in the notice a brochure that tells seniors of their rights as a policy owner and describes life settlement products.
The law also prohibits insurers from impairing life settlement transactions.
Doug Head, executive director of the Life Insurance Settlement Association, Orlando, Fla., points out that the state of Washington recently adopted a similar law.
“These new laws are terrific developments for senior consumers and are expected to be adopted in numerous states,” said Head.
Comparable measures are under consideration in Indiana and Kentucky, LISA reports.
Maine’s law was sponsored by State Senator Nancy Sullivan.
Thursday, June 18, 2009
Orlando Accidents Lawyers
After years of practicing law for insurance companies, SeifertMiller, LLC is ready to work with the accident victims in Florida. These accident lawyers in Orlando can help reclaim losses due to loss of work or inability to work, car repairs and/or purchase of new car due to a total, or the loss of a loved one's life. Finding a trusted personal injury attorney does not have to be difficult. With 40 years of combined legal experience, a personal injury attorney Orlando from SeifertMiller, LLC is knowledgeable of the industry and is compassionate about representing accident victims, young and old.
Whether a motor vehicle or motorcycle accidents, an Orlando accident attorney is skilled at keeping their clients with an advantage in court. This is due to their immense background in working for their opponent, the insurance company. Other instances a person may hire a person injury attorney Orlando is for injuries related to defective products or cars, whatever the personal injury, SeifertMiller, LLC is dedicated to representing the people of Orlando and outlying communities.
Founded in 1996, SeifertMiller, LLC, an experienced team of accident lawyers Orlando, have handled several personal injury and accident cases for victims. With a superiority knowledge base, an Orlando accident attorney from SeifertMiller can help you achieve success! With not only knowledge, but professionalism and integrity, a personal injury attorney Orlando can work hard to upload your legal rights.
Motor vehicle accidents are growing rapidly. Whether hit while driving, while a pedestrian or even by a drunk driver, an Orlando accident attorney can fight for the losses and damages you have incurred as a result of this motor vehicle accident. Some of their motor vehicle accident expertise includes 18 Wheeler accidents, commercial driver accidents, uninsured motorist, public transportation accidents and more! This means, no matter your particular situation, SeifertMiller and its experienced accident lawyers Orlando can help you today!
For those incurring loss and/or damages as a result of a motorcycle accident, a personal injury attorney Orlando can help you as well. SeifertMiller is not limited to just motor vehicle accidents; they are dedicated to representing the people of their community who have suffered an injury and losses as a result of a motorcycle.
Whether a motor vehicle or motorcycle accidents, an Orlando accident attorney is skilled at keeping their clients with an advantage in court. This is due to their immense background in working for their opponent, the insurance company. Other instances a person may hire a person injury attorney Orlando is for injuries related to defective products or cars, whatever the personal injury, SeifertMiller, LLC is dedicated to representing the people of Orlando and outlying communities.
Founded in 1996, SeifertMiller, LLC, an experienced team of accident lawyers Orlando, have handled several personal injury and accident cases for victims. With a superiority knowledge base, an Orlando accident attorney from SeifertMiller can help you achieve success! With not only knowledge, but professionalism and integrity, a personal injury attorney Orlando can work hard to upload your legal rights.
Motor vehicle accidents are growing rapidly. Whether hit while driving, while a pedestrian or even by a drunk driver, an Orlando accident attorney can fight for the losses and damages you have incurred as a result of this motor vehicle accident. Some of their motor vehicle accident expertise includes 18 Wheeler accidents, commercial driver accidents, uninsured motorist, public transportation accidents and more! This means, no matter your particular situation, SeifertMiller and its experienced accident lawyers Orlando can help you today!
For those incurring loss and/or damages as a result of a motorcycle accident, a personal injury attorney Orlando can help you as well. SeifertMiller is not limited to just motor vehicle accidents; they are dedicated to representing the people of their community who have suffered an injury and losses as a result of a motorcycle.
Bankruptcy - Lets Get a Fresh Start in Life
Let's start at the beginning, you started borrowing money to improve your life. You are 21 and back from the Armed Forces. Life looks good and you are looking forward to your new life. Sounds like your life so far or close to it. Then it happens, we meet the love of our lives and decide to get married. Now there is more than just yourself, there is your wife to think about also.
Life moves to the next phase, an apartment together, each of you has a car that has a loan that is due every month along with your monthly rent payment. During this time period, there were multiple credit card offers that were accepted and now there is also a monthly credit card payment of one or two. Life is great, buy what ever both of you want and enjoying life together. Your wife wants furniture, so guess what, a new bedroom suite along with another monthly payment. Payments are starting to creep up and you realize, wow, there is not enough money to live on. What do we do?
This is the typical scenario of a young couple struggling with a fresh start in life. It can be simple or even more complicated, but it happens. Debt starts to slowly take over your life. Money is spent at Orlando for a vacation and before you know it, it is a struggle to make ends meet. Then, disaster hits and the company that you work for goes out of business. The two of you are slowly getting further behind and the furniture gets repossessed by the loan company. A terrible story but true for a couple that I know that it happened to. His wife also got laid off but found another job quickly at lower wages. He has since found a job but at lower wages also.
This story is simplified and is much more complicated. They both had to hire a Bankruptcy Attorney to get them out of the mess they were in. They decided to file Chapter 7 and get a fresh start because of the harassment of the bill collectors. They were getting phone calls at all hours of the day and night. They could not take it anymore. I also forgot to mention about the medical bills that were incurred during the time he got laid off and had no hospitalization because he could not afford the payments to Cobra to continue the insurance.
This couple has a new start in life with a new financial perspective. They have decided to be a little more conservative with their spending and are slowing getting their lives back on track. Did I tell you, they now have a little boy who helped change their lives also. This is a sad story that ends good in the end. They are slowly re-establishing their financial lives together now.
In conclusion, life starts out easy and fun but somehow we get into a mess because of lack of financial skills. Financial skills are usually learned the hard way due to lack of experience. Chapter 7 Bankruptcy is not for everyone, but in certain cases with the advice of an Attorney, it could be your answer for your nightmare. Remember to always consult with legal counsel before making any financial decisions like Bankruptcy.
Life moves to the next phase, an apartment together, each of you has a car that has a loan that is due every month along with your monthly rent payment. During this time period, there were multiple credit card offers that were accepted and now there is also a monthly credit card payment of one or two. Life is great, buy what ever both of you want and enjoying life together. Your wife wants furniture, so guess what, a new bedroom suite along with another monthly payment. Payments are starting to creep up and you realize, wow, there is not enough money to live on. What do we do?
This is the typical scenario of a young couple struggling with a fresh start in life. It can be simple or even more complicated, but it happens. Debt starts to slowly take over your life. Money is spent at Orlando for a vacation and before you know it, it is a struggle to make ends meet. Then, disaster hits and the company that you work for goes out of business. The two of you are slowly getting further behind and the furniture gets repossessed by the loan company. A terrible story but true for a couple that I know that it happened to. His wife also got laid off but found another job quickly at lower wages. He has since found a job but at lower wages also.
This story is simplified and is much more complicated. They both had to hire a Bankruptcy Attorney to get them out of the mess they were in. They decided to file Chapter 7 and get a fresh start because of the harassment of the bill collectors. They were getting phone calls at all hours of the day and night. They could not take it anymore. I also forgot to mention about the medical bills that were incurred during the time he got laid off and had no hospitalization because he could not afford the payments to Cobra to continue the insurance.
This couple has a new start in life with a new financial perspective. They have decided to be a little more conservative with their spending and are slowing getting their lives back on track. Did I tell you, they now have a little boy who helped change their lives also. This is a sad story that ends good in the end. They are slowly re-establishing their financial lives together now.
In conclusion, life starts out easy and fun but somehow we get into a mess because of lack of financial skills. Financial skills are usually learned the hard way due to lack of experience. Chapter 7 Bankruptcy is not for everyone, but in certain cases with the advice of an Attorney, it could be your answer for your nightmare. Remember to always consult with legal counsel before making any financial decisions like Bankruptcy.
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