How can you save for retirement when you are 50 and broke? We do have some put away for retirement but not much. we are 50, have 2 teenaged daughters and live paycheque to paycheque. my hubby has 2 jobs and i work part time to due health issues. i do work online and sell stuff on etsy and ebay. Suggestions? (btw) we are in Canada and yes, we will get a pension when we turn 65, but I dont want to rely just on that.

In order to get into a position of being be able to save money you must first get yourself out of debt. If you’re fifty and planning for retirement, and you have no nestegg, getting out of debt comes first, then saving. To do this, I would recommend a book that will guide you through the process. It is called (no insult intended) “The Complete Idiot’s Guide to Getting Out of Debt” and is written by Ken Clark, CFP. Mr. Clark is a Certified Financial Planner and has many years experience working with people to get them out of debt. He also writes books on the subject (obviously), conducts seminars and gives presentations to employees of Fortune 500 companies all about getting out of debt, dealing with collection agencies, increasing and improving credit scores, and many other subjects of interest to debtors.

This is the best book I’ve read on the subject and includes an appendix of sample letters and other resources helpful to anyone who is dealing with debt of any kind and to any extent. This book will help you immensely. It is published by Alpha Books (2009 edition).

Are forbarance aggreements good with new lenders? I worked out a forbarance aggreement with my lender and then they sold the loan. I have been with my new lender sence March 1st and my per my forbarance aggreement with the previous lender my payment is due on the 25th. I recieved a notice on my door this afternoon stating that my home is being forclosed on and the sell date is in 18 days. I called the current lender and explained the situation and little response. They said that I now qualify for HAMP re-mod and I need to see if I can get the re-modification. They also said that they do not have a record of a forclosure sell date. What are my legal options at this time?

Your legal options are to contact a good, local real estate attorney as soon as possible and have him/her represent you with the new lender. If you have a fully executed forbearance agreement with the first lender there is no reason why it won’t be binding on the new lender. Typically, loan documents are assigned to the new lender subject to existing agreements between the parties. However, only a good attorney can give you sufficient advice after having reviewed your copies of the documents. No one can advise you with any credibility without having first reviewed your copies of the fully executed agreements.

What is a perfect credit score number?

Credit scores are actually based on an analytical scoring methodology developed by a company called Fair Isaac Corp. (FICO). The methodology measures, mathematically, the likelihood of loan repayment for individual consumers. The higher a person’s score the greater the likelihood of repayment. In a sense there is no such thing as a “perfect” score because the scores only relate to a ratio of good loans to bad loans, as follows: 

FICO Score:                                                                  Good loans to bad loans:

<620                                                                                                8 to 1

620 – 659                                                                                      26 to 1

660 – 679                                                                                      38 to 1

680 – 699                                                                                      55 to 1

700 – 719                                                                                    123 to 1

720 – 759                                                                                    323 to 1

760 – 799                                                                                    597 to 1

800>                                                                                          1292 to 1

As you can see, even at the highest scores (800 and over) there is still an anticipation of a bad loan for every 1292 loans. The average score is approximately 700. Approximately twenty percent of the population scores below 620. Less than two percent of the population scores above 800.  Of course FICO models are affected by market economies and are subject to change.

What is finance?

The term describes a way of making some project monetarily feasible. If the project is the purchase of an item, the development of a property, the starting of a business, obtaining an education, whatever the project may be that requires money to achieve it in some fashion, the term “finance” is used to refer to the way the money is obtained.

That said, there are only two ways to finance anything: with debt or with equity. Debt is where you go to a lender and take out a loan; equity is where you use your savings or find an investor who is willing to put up his/her money for an ownership interest in whatever is being acquired or produced.

How do credit card companies determine customer’s interest rates?

Lenders generally use a mathematical formula to determine a desired yield in setting interest rates for their products. Then they look at the market and competition in the market. These are two primary factors used in the methodology for setting interest rates.

Interest rates can be adjusted up or down according to credit scores, however most credit card companies run bureau reports and select prospects based on credit scores before sending mail solicitations. So, they know the credit scores match the interest rates before soliciting the prospective customers.

Is southwest consulting service a scam? Thay want loan me 50,000 for my company, but want 399 processing fee up front.

If a lender has approved a loan to you they would not normally ask for the payment of an up-front, out-of-pocket fee prior to disbursing the loan proceeds. They can take the fee out of the proceeds at loan closing. I would be very leery of any lender that makes this kind of stipulation to their extension of credit.

First of all, make sure you get everything in writing: the loan approval, the request for the fee, any conditions the lender places on disbursing the proceeds, everything. If they won’t put it in writing, you cannot rely on any of it. Even if they put it in writing, I would recommend you not pay the fee out of pocket, but instead offer to allow them to deduct the fee from their loan proceeds. If they balk, you should walk.

Once you’ve paid the fee,  if they do not extend the loan you would probably have little recourse, or it would cost you more than the amount of the fee to pursue recourse.

If I’m pre approved for a home loan is that a binding contract? I was pre approved for a home loan and put in a contract on a home with it. Now the lender is denying my loan. They has been no change to credit or employment history. Is this legal?

A pre-approval for a home loan is not a binding contract. If the lender subsequently declines you there is nothing to prevent you from going to another lender to see if you can get approved for a loan to purchase the same home.

The offer to purchase that you put in on the home is a binding contract. Hopefully you had the services of a good, local real estate agent that wrote the contract to protect your earnest money and included a financing contingency.

It is legal for a lender to issue a pre-approval and then subsequently decline the loan only if the pre-approval was in writing and included conditions that were not met. If the pre-approval was not in writing and / or did not include conditions, I would recommend that you seek the services of a good, local real estate attorney.

What was the Cause of the Great Depression?

The stock market crash of October 1929 was what you might call the initiation of the Great Depression and was due to speculative investment in stocks and commodities. Speculation in the stock market tends to inflate the index well beyond the true investment value of the stock. The stock market crash caused a rash of bank failures. Additionally, inflation pushed prices of goods well out of range of the average worker’s budget. So, although there existed an extensive supply of goods and services in the market, the demand was paltry as most could not afford the high prices. This, in turn, caused massive unemployment as commercial and industrial enterprises suffered severe losses from lagging sales and began laying off the work force.  Many other factors combined to play a part, including government inaction, a decline in international trade, and a subsequent decline in the economies of other countries.

Manager skills. What skills do managers need to perfom their duties (please reference)?

Managers are not necessarily the experts at every function within the business. But they know who the experts are and put the right people in the right places to create the best results in the most efficient manner possible. Then they provide those people with the resources they need to be successful. The skills to identify the right people and to put them in the right places are the most critical skills for a manager. Then those skills necessary to provide them with the resources they need are next in importance.

Managers need to know how to delegate responsibility and authority, and how to evaluate the judgment and maturity levels of those who will receive them. Then managers need to know how to make those recipients accountable for what they’ve received and for the productivity expected from said delegation. That usually involves goal-setting and the establishment of a series of objective measurements to determine the success of the employee in obtaining those goals. 

Managers need to know how to give recognition to employees that deserve it, and need to do that on a regular basis. From a pat on the back and a “good job” to an interoffice memo describing what is being recognized, this is a very important part of a manager’s skill set.

Knowing how to put the right people in the right places, provide resources, delegate responsibility, delegate authority, judge an employee’s ability to handle those delegations (before-hand), create accountability, establish goals and measurements, and give recognition. These are critical skills managers need to master.

What is a business Mission Statement? Should businesses have a Mission Statement?

What do you wish to accomplish through your business and for what purpose? This is the general idea of a mission statement. It is a fairly brief, written statement with an altruistic aim designed to reflect a focus outside the obvious creation of profit and capital.

The mission statement drives the general direction of the business and provides the overarching philosophy that will filter down from executive management throughout the staff and influence motives, choices and actions.

For example, “Our Mission is to provide superior (product, service, leadership, etc. …this is what you want to accomplish) that will enable our (clients, customers, patrons) to (improve their health, achieve their goals, become self-sufficient. … this is the purpose) with the goal of building a lifelong business relationship” (influencing motives, choices and actions of staff). 

To answer your second question, yes. Every business should have a mission statement. It provides a focal point, a focus for management as well as staff.

What is the best way to invest $200 a month in 2011? Best investments for small amounts of money in 2011.

This is a very easy question and I’m so glad you’ve asked it. The best way to invest $200 a month in 2011 or in any year is to pay off your debt with it. Take your $200 each month and pay down your debt until there is none left. It would be the best investment anyone could ever make.

Of course, I’m assuming you have debt. If not, or at such time as you have paid it all off, the next best investment is the one that generates the best return with the least amount of risk. Remember that the lowest risk is the priority in 2011 with the economy as bad as it is and world events conspiring to make fools of investors in general. So, start by finding low-risk investments and then choose the one that offers the best return. In 2011 it could be as simple as an annuity or a government bond. Municipal, tax-free bonds are always safe and generate a relatively high return (especially when you factor in the “tax free” premium). Do some research. Treasury securities are also a good bet. But the emphasis is on low-risk in 2011.

How does the government finance a deficit?

There are only two ways to finance anything (including operating deficits): with debt or with equity. One of the ways the government finances deficits is by selling securities (in other words by incurring debt), such as government bonds, and treasury bills and notes. The government raises money with these sales but they represent debt owed to the bondholders and note holders that must be repaid over time with interest. This is why the national debt keeps increasing: more and bigger deficits requiring more and bigger debt to cover them.

The DOW had it’s worst day in 7 months due to Saudi Unrest. How much worse do you think this problem will get? Do you think this will continue? Why, or why not?

To answer your question, I gave up on trying to predict the stock market a long time ago and I would be leery of anyone who sounds confident in doing so. However, for the fun of it, if I had to, I would say it will get worse because I believe there is still too much speculation and not enough actual value in the stock market currently.

Speculation in the stock market tends to inflate the index; then adverse social events world-wide cause speculators to retreat, selling off investments. Speculators tend to view their investments in the stock market as short-term (which is a mistake) making the stock market oversensitive to those adverse world events. It doesn’t look like there will be many quiet days ahead as we see more and more people of middle eastern countries taking the challenge (begun in Iraq) to shake off the grasp of the petty despots and tyrants who’ve subjected them to so much misery for so many years. That being the case, I would expect to see more nervous speculators selling off investments.

What is the best equity loan? The best equity loan and its resources.

It depends on your needs and goals as a borrower. Typically, the best equity loan is the one with the lowest interest rate, the fewest fees, the best fitting payment for your budget, and the lowest total of payments. If it has all that and meets your needs as well, that is the best equity loan.

Most equity loans use equity in real estate, however equity in any asset can be borrowed against. It doesn’t have to be real estate, but you can usually get the longest term with a loan against equity in real estate, which will produce the lowest monthly payment. If that is your goal then a real estate equity loan is the best for you.

What is the best banking company?

Unfortunately, this is a difficult question to answer because banking is a business offering generic products at generic prices. That is to say there will not be much variance from bank to bank regarding the products they offer and the prices they charge.

The best way to answer your question is by looking at customer service. The bank that gives the best customer service is the best bank. What does that mean? You judge it on the local level. What bank in your neighborhood has the most extended hours? Not just the 9AM to 3PM but earlier than that and later than that and does Saturday banking as well. What bank in your neighborhood doesn’t make you stand in long lines on a busy day but finds a way to move the lines through quickly by providing efficient, competent tellers? What bank has the manager that will come out and wait on customers when he/she sees them waiting for service? What bank in your neighborhood says “Yes, we can do that for you” most often when you have a problem or request?

That would be the bank that wants to build a long-term banking relationship with you as a satisfied customer. That one is the best banking company.

Is there a easy way to start investing? Keep it simple and straightforward please.

Simply put, the easiest way to start investing is to find a good, local Financial Advisor or Stock Broker, meet with him/her and explain your purposes and goals for your financial future, and then follow their advice. These people do investing as a profession all day, every day and have been doing it for years. The fee they charge is well worth the advice and services they perform. There are other ways, but none as easy. The Advisor/Broker does all the work. Chose one that comes highly recommended from someone whose opinion you hold in high regard.

Refinancing house. I am purchasing a new home and the interest rate is kind of high. How long should I wait before trying to refinance it to get a better rate?

The general rule of thumb is that it takes two percent and five years to break even from a refinance. That means that you should wait until you can drop the interest rate a minimum of two percent by refinancing, then it will take about five year’s worth of the interest savings (at the new reduced rate) to break even with the costs of the refinance (loan fees, recording fees, etc).

What can i get with a 578 credit score?

With a 578 credit score alone you can’t get much, if anything. Credit scores below 619 are considered by many lenders to indicate a poor credit risk. But throw in some good job security with current or continuous-like employment of three years or more; and throw in a strong income that is more than sufficient to service the new debt you are applying for (let’s say a debt-to-income ratio of 33% or below, including the new debt); and throw in a really good collateral that shows some equity (a value significantly exceeding the amount of the debt you are borrowing); and you just might get approved. It’s going to depend on the amount you are applying for and the purpose of your credit request. A loan for $1,000 to do improvements or repairs to the collateral you are using? I’d say you’d have a decent chance.

Starting a company. I live in PA and would like to start my own print shop. the company I work for is about to close. I have the acknowledge to run the company but not the financial backing. is there a way to start a company with about $20,000. any help in this matter would be great. Thank you in advance for your help.

There are only two ways to finance a start-up operation: with debt or with equity, or some combination of the two. With debt means you go to the bank or a lender like the SBA and apply for a loan. You’re going to need to be able to convince your lender that you know why the previous owner could not make the business work and that you know how to make it work. So, give some thought as to how you will address that.

Financing with equity means that you find an investor who would be willing to put up some capital for an ownership interest in the business. This could be a friend, relative or associate, or venture capital business.

Applying for grants and government loans is a good idea if you have time. The wheels move very slowly in most cases. It may be better to find short-term, start-up financing at the local bank or venture capital company (or both), then apply for the government grants and loans that will take out the short-term financing and set up a long term repayment  (debt) / buy-out (equity).

What would you consider as an investment vehicle for your emergency fund? If you were able to put money into an emergency fund to meet an unforeseen event or money squeeze, what would be the best investment? Do you think a simple savings account would be adequate or would you look at something potentially riskier?

An emergency fund should not be invested. It should be somewhere safe, beyond risk of any kind, and readily accessible in instances when a quick departure is called for. You might say in an FDIC insured savings account unless you were around for the Savings and Loan crisis of the 1980s when over 700 US savings institutions failed and the FSLIC became insolvent trying to make good on its deposit insurance. Then the FDIC stepped in and assumed that liability but told depositors that they did not know when their money would be refunded and that any refunds would certainly not include interest. One elderly woman I knew at the time was told by an FDIC representative that their insurance allows up to 99 years to repay any depositor. In the off-chance said representative could have made good on that assertion, I would say a mattress would be as good a spot as any. (Alright, that may seem a little alarmist, but you catch my drift …:)