In my tax and financial planning practice, I've fielded plenty of questions over the years regarding credit and how bankruptcy will affect your mortgage. Recently, I responded to an inquiry by a working retiree with part-time income and Social Security benefits wondering precisely how a bankruptcy may impact his chances to lower his monthly mortgage payments. As I noted to him in my response on ... Read More
Credit Management
Identity Theft: What’s In Your Wallet?
12 Things to Do Immediately After Losing Your Wallet to Protect You from Identity Theft It's vacation time. We all long to be tourists exploring new places and having new adventures. But that also can mean an unexpected detour into Identity Theft Land if your wallet is stolen. In the iconic American Express commercials of the 1970s, Karl Malden would ask "What's in your wallet?" Now's a good ... Read More
Keeping Holiday Spending Under Control
Black Friday kicks off the holiday buying season. Keeping holiday spending under control begins with a plan. How you plan will make a big difference in your personal bottom line now and as you start the New Year. You’ve seen the footage on the news. You’ve been in the middle of it. You’ve stood in the vexing lines. You’ve circled for the elusive parking spots. Holiday shopping can be ... Read More
Protecting Your Credit Score in Divorce
Remember your high school teacher warning you about how your bad behavior would end up on your permanent record? That was nothing compared to the impact that a bad divorce can have on your credit scores. Most of us were never as lucky as Ferris Bueller so there was plenty of angst over what was in that file. Flash forward a couple or three decades and that 'permanent file' is hanging over you ... Read More
Financial Planning Roadmap
Wouldn't it be nice if money came with a user manual or a road map? Well, here it is, folks. You have asked and the financial planning powers that be (or at least the folks at Bloomberg BusinessWeek) have answered. Click here for the Financial Planning Flowchart. For the Do-It-Yourselfer in all of us, this fun, interactive chart is a great tool. But like any tool, it's not right for all ... Read More
Using Your IRA for First Time Home Purchase
Can I tap my IRA to help with the purchase of my first home? Question:) When do I take the 10k out of my IRA for a first time home purchase? I know the process of finding a home in my area could take a significant amount of time. Money Coach's Answer: Congratulations on taking the leap into home ownership! The Basic Rule for IRA Distributions and Real Estate Purchases For those who are not ... Read More
Your Credit Score – Going Under the Hood
As a former mortgage broker, I'm intimately aware of the role of the role a credit score has in your financial life. If you have a "good" score, you get the best terms and rates. If you have a "bad" score, you'll be paying more assuming you get the loan at all. When I first started in mortgage banking (way back in the 1980s), there was no such thing as a credit score. Credit reports were ... Read More
Ask the Adviser: What Is a Reverse Mortgage?
Reverse Mortgage Basics A reverse mortgage is a type of loan that certain eligible homeowners can get to tap into the equity in their home. Unlike traditional loans, they do not require the same sort of underwriting so no income, asset or credit checks are needed. And unlike a traditional loan, there is no monthly repayment for any amounts borrowed. Repayment of the loan's principal and ... Read More
Beware Scam Collection Practices
We've all heard of horror stories of someone stealing a credit card or hijacking your identity online to "party like it's 1999" and leaving you with the bill. It's become a cultural cliche and even popularized in TV sitcoms and commercials. But it's anything but funny when a scam is played on you. So prepare to protect yourself and your credit. Credit is vital in this economy. We depend on it ... Read More
How to Dispute and Remove a Faulty Credit Reference
Recently, I had to deal with a derogatory item appearing on my credit report that was reported in error. Besides being frustrating to deal with it can be time-consuming but necessary in order to preserve your credit rating. A credit rating is usually best represented by a three-digit credit score ranging from a low in the 400s to about 820 or 850 depending on the credit bureau. This score has ... Read More
