What is the Difference between a Variable Annuity and a Fixed Annuity?
What is the Difference between a Variable Annuity and a Fixed Annuity? If you are a teacher and/or work for the Department of Education, you may be contributing to a 401K plan provided by the Teacher’s Retirement System. There are two types of funds you can contribute to: The Diversified Equity Fund (Variable A Annuity Program) or the Fixed Return Fun (Fixed Annuity Program). Here is the difference between the two: In a Variable A fund, the stocks and bonds purchased are from ... Read More
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Category Money Management
What Is the Difference between a Recession and a Depression?
What Is the Difference between a Recession and a Depression? While a recession may occur after two consecutive quarters where growth is not evident, depression can occur when there are severe changes in the GNP or Growth National Product. For example, the Great Depression saw a decline of more than 10% in GDP or Gross Domestic Product. If you have grandparents or older parents whom you can ask about the 1929 stock market crash in which the GDP fell approximately 33%, they will ... Read More
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Category Money Management
What is a Reverse Mortgage?
What is a Reverse Mortgage? Have you seen Robert Wagner’s TV ad for reverse mortgages? With the sub-prime mortgage crisis forcing more than 1.5 million people to foreclose on their homes, this may be an alternative you may want to consider. What is a reverse mortgage? According to AARP, it is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your ... Read More
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Category Money Management
What Is the Rescue Plan?
What Is the Rescue Plan? The Rescue Plan was devised and implemented by Treasury Secretary Paulson. However, when it was first presented at the televised Senate hearings it was only a three-page document requesting $700 billion dollars to be given to Secretary Paulson to be utilized as he saw fit, and without any conditions or judicial consequences. Subsequently, both the House of Representatives and the Senate worked together to come up with a plan that (1) protected the taxpayers' dollars; (2) imposed ... Read More
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Category Money Management
Guide to Saving Money in 2009
Saving Money in 2009 Guide to Saving Money in 2009 Coping with Loved One’s Physical or Mental Challenges – Special Report INTRODUCTION In the last several months, we have witnessed a financial crisis reminiscent of the Great Depression. To date, 1.2 million people have lost their jobs, 17 banks have closed their doors, General Motors, Direct TV, and Circuit City are on the brink of bankruptcy, and the credit crunch is still keeping banks from lending money. You might ask, what about the 700 billion dollar ... Read More
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Category Money Management
Why Starting a Home-Based Business Can Help In a Recession
Why Starting a Home-Based Business Can Help In a Recession It may sound ludicrous to start a home-based business during a recession, but in fact it is the perfect time. Why? Because at a time when most businesses in every sector are laying off thousands of people because they cannot meet their payroll, a home-based business can ultimately fill the void. What do we mean? If your business is service-oriented - that is, you are a computer technician, healthcare professional, writer, web-site ... Read More
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Category Money Management
What Is a Recession?
What Is a Recession? In its simplest terms, a recession occurs when there are “two consecutive quarters” of negative growth. While most economists have been fickle in utilizing the term, it is nonetheless clear that our economy is in the throes of a recession. More importantly, however, is the fear that the recession will subsequently turn into a depression. How does a recession occur? Well, when there is not enough supply to meet a specific demand (as in the case of oil), prices ... Read More
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Category Money Management
What Impact Has the Economic Crisis Had On My 401K?
What Impact Has the Economic Crisis Had On My 401K? If you have a 401K Plan through your employer, you may want to check to determine the amount of loss incurred as a result of the current economic crisis. In addition, if you are contributing to the 401K plan, you may wish to change the current contribution rates, especially if you are: (a) contributing 100% to Variable A, or (b) contributing a combination to both Variable A and Variable B equal to ... Read More
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Category Money Management
What Do I Do If My Bank Was Purchased or Merged with Another Bank?
What Do I Do If My Bank Was Purchased or Merged with Another Bank? If you had a bank account at either Wachovia or Washington Mutual, or perhaps your bank closed, you may be concerned - not only about accessing your accounts, but also about conducting daily transactions. According to the Federal Reserve, Federal law requires the FDIC to make payments of insured deposits — all the money determined by the FDIC to be within the federal insurance limits — "as soon ... Read More
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Category Money Management
What Caused This Economic Crisis?
What Caused This Economic Crisis? There are several factors that have caused the current economic crisis. At its very core, the sub-prime mortgage crisis was the catalyst. To give you a brief history of how the sub-prime mortgage crisis began, let’s first explore what a sub-prime mortgage is. It is an adjustable rate loan that was offered to individuals who had bad credit. The brokers who engaged in offering these mortgages received commissions on every sale, and thus the need to entice ... Read More
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Category Money Management
