Posted: October 31st, 2008 | Author: Joe | Filed under: Investing | Tags: Investing | 1 Comment »
Here’s a little Friday fun, Halloween edition, for your enjoyment.
ZOMBIE DEBT
Zombie debt is about the worst kind of bad debt you can have. Sounds pretty scary, but that’s only because it is!
Zombie debt is debt so old the borrower has forgotten all about it. This type of debt is usually given up on by the creditor, but is often bought by another company. This new company has not given up on collecting the debt, and may haunt the borrower anew in an attempt to recover the money owed.
If you are being unfairly haunted by this Zombie (either you’ve paid off the debt, or never really owed it to begin with) and can prove it, you can take action.
Under the Fair Debt Collection Practices Act (holy water for Zombie debt) you can petition the debt collector to cease and desist in pestering you. That only works if you are being unfairly targeted though… if you rightfully owe, you need to make good.
GRAVEYARD MARKET
A Graveyard Market is the period near the end of a prolonged bear market when long term investors have taken large losses and new investors are watching on the sidelines, waiting for the right time to jump in.
It is called a Graveyard market because investors in the market can’t get out, without incurring big losses, while investors who aren’t in the market want to stay out. Graveyard markets linger until the greater economic or market conditions improve. Let’s hope we’re not headed for one of these!
For more Halloween investing terms, check out Haunting Wall Street: The Halloween Terminology Of Investing.
Photo by Drunken Monkey
Related Posts:
Posted: October 30th, 2008 | Author: Joe | Filed under: Investing, Saving, Tips | Tags: Education, financial advice, How To, Tips | No Comments »
The Tree of Knowledge.
Did you know that the Federal Deposit Insurance Corporation (FDIC) has a program to help teens (ages 12-20) learn the basics of handling their money and finances? Neither did I.
The program is called Money Smart for Young Adults.
The goal is to provide the knowledge that teens and young adults need about personal finance, but rarely get. The lament of many parents is that this stuff just isn’t taught in schools. This is an attempt to fill in that gap.
It’s distributed via CD-ROM, VHS and DVD and is completely free.
The program is built from 8 modules, each led by an instructor and contains:
“… fully scripted instructor guide, participant guide, and overhead slides … an optional computer-based scenario that allows students to complete realistic exercises based on each module.”
It’s clearly geared towards educational uses, but information is information, right?
Here are the eight modules:
I. The Bank On It module.
This module teaches the basics of banking: Using a bank account, different types of bank accounts, and additional services that a bank may provide.
II. The Check It Out module.
It’s about checking accounts – clever names, huh? 
This module covers how to open and use a checking account (you mean I can’t keep writing checks as long as I have them in my little book?) as well as common fees.
III. Setting Financial Goals.
This module is about budgets, and personal spending plans. It discusses wants vs. needs and how to decrease spending and increase income.
IV. Pay Yourself First.
Introduces the basic foundation of saving and discusses various saving options.
V. Borrowing Basics.
This module covers various forms of borrowing and discusses how to use credit appropriately. i.e.: Don’t borrow $300,000 for a new house when you can only afford $100,000.
VI. Charge It Right
Covers the basics of credit cards – don’t pay for your groceries with a credit card if you can’t pay off the balance.
VII. Paying for College and Cars.
This module covers the basics on installment loans for things like, you guessed it, cars and student loans.
VIII. A Roof Over Your Head.
Arms young adults with information on renting their 1st apartment and getting their 1st mortgage. I think if everyone was given this information by the time they were 20 there would have been a lot less of a sub-prime mess.
Computer-Based Scenarios.
There is an optional computer-based interactive scenario for each module, which takes the student through possibly decisions based on the module. While there are no right or wrong answers, students are able to see the outcome of each decision so it adds more value than a simple quiz.
If interested, request a copy here.
Photo by Knilram
Related Posts:
Posted: October 28th, 2008 | Author: Joe | Filed under: Economy | Tags: Bank Failures, FDIC | No Comments »
WaMu: Just 1 of 16 failed banks this year.
According to the FDIC list of bank failures, there have been just 16 for 2008 (as of October 24th).
Here’s the list for 2008:
- Alpha Bank & Trust, Alpharetta, GA October 24, 2008
- Meridian Bank Eldred, IL October 10, 2008
- Main Street Bank, Northville, MI October 10, 2008
- Washington Mutual Bank, Henderson, NV and Washington Mutual Bank FSB, Park City, UT September 25, 2008
- Ameribank, Northfork, WV September 19, 2008
- Silver State Bank, Henderson, NV
- En EspaÃnol September 5, 2008
- Integrity Bank, Alpharetta, GA August 29, 2008
- The Columbian Bank and Trust, Topeka, KS August 22, 2008
- First Priority Bank, Bradenton, FL August 1, 2008
- First Heritage Bank, NA, Newport Beach, CA July 25, 2008
- First National Bank of Nevada, Reno, NV July 25, 2008
- IndyMac Bank, Pasadena, CA July 11, 2008
- First Integrity Bank, NA, Staples, MN May 30, 2008
- ANB Financial, NA, Bentonville, AR May 9, 2008
- Hume Bank, Hume, MO March 7, 2008
- Douglass National Bank, Kansas City, MO January 25, 2008
The list itself goes back to 2000 and has hyperlinks to detailed information about each bank failure. Press release, contact info, etc… I think this list is probably better than the selection tool I posted about previously, but that’s just my humble opinion.
photo by marctonysmith
Related Posts:
Posted: October 23rd, 2008 | Author: Joe | Filed under: Insurance | Tags: Insurance | No Comments »
I was trolling around the Internet yesterday and found these insurance tips from the National Association of Insurance Commissioners. I happen to be the patriarch of a young family myself, so this info caught my eye, but I know a lot of readers of this blog are also 30 somethings with young children and I thought you may benefit as well.
1. Increase Auto Insurance Liability.
Chances of playing neighborhood school bus in the family car go up with each child. The NAIC recommends increasing your liability insurance in case of an accident while carting around the crumb crunchers from the block.
2. Get an Umbrella .
30 somethings are solidly in the asset accumulation stage of life and should probably look into buying an umbrella policy to cover those assets in situations where the liability on your auto insurance doesn’t cover the full amount of the damages from a car crash, for instance.
3. Plan for Insurance Rates When Upgrading the Family Car.
Auto insurance premiums are linked to the type of vehicle being insured. Sports cars cost more than sub compacts, but sexy SUVs cost more than other cars too. Be sure to consult the your agent’s rates before that big purchase. Up never know when a specific make and model mini-van will cost more to insure than another.
4. Consolidate Your Policies.
If you and your spouse have separate car insurance policies – consolidate them. You’ll likely get a rate reduction for combining them, especially if you also have a homeowner’s policy to throw in the mix. Personally, I think this is a no-brainer whether you’re a “young family” or not.
photo by Bill Meyring
Related Posts:
What others are saying