Financial News of the Day

The Fiscal Cliff Deal is Still Affecting Worker’s Paychecks

Jan30th
2013 1 Comment Written by Tracy

Many workers were anxious about the fiscal cliff deal before it even happened. Talks of lower paychecks had many worried about their financial future. Unfortunately, once the deal was made it did have a negative impact on over 160 million workers.

Although tax breaks for families in the middle income range were extended, the payroll tax cut was not. This payroll tax cut expired so many people still saw a decrease in their paychecks once 2013 rolled around.

paystubsThe tax on a person’s paycheck went from 4.2% to 6.2%; a two percent increase. Those that make approximately $100,000 per year will lose about $2,000 to payroll taxes. Even those with less income are really seeing the difference. A worker that makes around $30,000 a year will lose around $300. This sets the disposable income of Americans back by almost $115 billion, which means an even weaker economy. This also creates stress for those with small businesses and could lead to cutbacks and less hiring throughout the rest of the year. While this isn’t a huge amount, workers are already noticing a difference. For those that live paycheck to paycheck, a $70 loss a month is huge. That $70 may have covered a bill that is a necessity. While this protects most people from an income tax increase, wage earners take a hit to their take home pay.

This comes out of the Social Security payroll tax. What it does is fund Social Security through the wages and is paid by both the wage earner and the business.  Back in 2011, the amount was actually lowered to the 4.2% and this gave workers more income. Now that extra income has expired and many workers have not prepared for this decrease in their pay.

Small business owners are affected as well since many pay their taxes through an individual return. These types of businesses are over 50% of the workplace so many small businesses are affected such as S-Corps., partnerships, limited liability companies and sole proprietorships.

The fiscal cliff deal may help in the long run but those that need their money now are not seeing the benefits of this last minute deal.

Arnold Westlake is a retired banker and regular blogs about money management, MoneyMutual, personal loans, and taxes for numerous blogs and websites.

Money    , ,

Edwards Finance Trial Wraps Up

May16th
2012 Leave a Comment Written by Tracy

The former senator John Edwards has been in the news a lot recently, but not for the political achievements he would like to achieve or the image he would like to portray. Instead most of the coverage in recent years has swirled around his extra-marital affair and charges that he used campaign money to cover up the affair. The subsequent trial has been widely covered by many media outlets but there is much debate over what the outcome will be.

The prosecution spent two weeks calling witnesses and providing evidence that 2008 presidential candidate knowingly used campaign finances to hide his affair from the media. However the defense took a different approach. In just over two days they presented their argument without calling Edwards or his daughter to the stand. The jury is set to begin deliberations on Friday; however, it is anyone’s guess when they will have a decision. More about the trial can found here

The outcome is sure to have a profound impact on Edwards and his family. If found guilty on all counts he could spend nearly 3 decades in prison as well as pay over $1 million in fines. The results will also impact his young children since he has been a single parent since his wife Elizabeth’s passing nearly 2 years ago.

The outcome is sure to have a profound impact on Edwards and his family. If found guilty on all counts he could spend nearly 3 decades in prison as well as pay over $1 million in fines. The results will also impact his young children since he has been a single parent since his wife Elizabeth’s passing nearly 2 years ago.

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Government, Legal, Money, News, Politics

Reports Indicate Small Personal Loans on the Rise

Apr9th
2012 Leave a Comment Written by Tracy

Even though the economy has been showing small signs of improvement, money is still tight for many people. Having the funds to pay daily and monthly expenses can be a real challenge but when an emergency occurs it can be all but impossible to handle. As a result many people are deciding on a small personal loan . An article by timesunion.com describes how many people use these loans as last resort to avoid paying bills late and sometimes to help improve a low credit score. It’s a tough decision to make but ultimately it’s one that each individual has to make for themselves.

Economy   

Getting the Mortgage Industry Back in Gear

Sep3rd
2011 1 Comment Written by Tracy

The latest news is that mortgage interest rates are approaching all time lows. All though house buying is still low there has been a big upswing in refinancing. In fact lenders across the country are struggling to keep up with this demand. This has been problematic for banks as many have let a big proportion of their mortgage staff go when interest rates rose at the beginning of the year. This means that the time it takes to refinance has gotten longer and the average is now sixty days.

Now refinancing applications are up a massive 83% since the beginning of the year. The average rate on a thirty year fixed loan is now 4.15%. A rate this low has not been seen since 1971!

Delays are being accentuated by stricter requirements from the underwriters. Added to this are disclosure guidelines that leave little room for shortcuts. However its the manpower issues that are really hampering the speed and because its an industry that relies on the human interaction its paying the price. All aspects including appraisals, title cos, insurance – have all been downsizing.

Now the current government is trying urgently to get the housing marketplace moving again – however speed of operations is a factor that holding them back. Also many homeowners have negative equity therefore they are having problems refinancing.

If the refinance industry was to get up to speed it may well affect the nations economy. Mortgage payments would go down and households would have more disposable income to spend. Banks could then get back on track as this boost would spur new home loans.  This would help to get the nation’s mortgage industry back in gear.

Information provided by the Mortgage Calculator helping consumers to answer questions such as – How much mortgage can I afford?

Real Estate

West Memphis Three and American Justice

Aug23rd
2011 Leave a Comment Written by Tracy

The American justice system is theorized to be one of the most fair, humane and practical legal systems that has existed throughout history and differing cultures. Even so, there are a number of flaws that are recognized and problems that are inherent to the system. A jury trial by our peers is not always a guarantee that the truth will be revealed and a just answer will be given. In addition, the financial aspect of paying for representation brings with it the ability of the upper classes to buy the best lawyers in the land, while the poor and destitute are frequently represented by state appointed attorneys who are overworked and underpaid. All things considered, there are a few other factors that enter into the potential problems. One of the ongoing theoretical dilemmas of our justice system occurs before the accused actually enters the courtroom. This is the topic of confessions and the occurrence of false confessions. And while the topic might seem single structured and simple to address, there are a few components and perspectives that are attached to it.

srqpix's photos via Getty Images

On the face of it, the majority of the population believes that if a person confesses to a crime they are guilty. That is also the intuitive response and in a similar line of thinking most of the population believes that they would never confess to a crime they did not commit. And here we have that dangerous word ‘never.’ Interestingly, the majority of the population also believes they would not respond to peer pressure or succumb to the majority mindset that was proven in the 1950′s psychological experiments. The only problem is, that with everyone believing they would stand out, no one is left to be the majority. Online networking sites and social media outlets are becoming popular places to discuss political and other socially relevant topics such as these. Videos for Elixir Interactive demonstrates the value of networking to businesses and professionals, while many sites are also excellent resources for topical discussions.So, back to the topic at hand, people do succumb to pressure and false confessions do exist. An interesting example has been recently highlighted with the release of the Memphis Three.

The crime took place in 1993 and the conviction was reached in 1994. The crime and the men convicted have remained in the public eye primarily through various online media sites. Elixir Interactive social media tips demonstrate the effectiveness of online networking options and the important role they can play in social awareness. The three men were convicted of the brutal murder of three children outside of West Memphis, Tennessee. There was, and remains, a lot of controversy surrounding the case and the subsequent conviction of the three teenagers who were convicted. The conviction rested largely on the confession of one of the teenagers, whose IQ has been estimated at around 70 and who endured about 12 hours of interrogation. He later recanted his confession, and the facts he gave at the time were in conflict with those of the crime. The three men received a lot of media support due to the attention and advocacy of various celebrities that believed the three were innocent, or at least falsely convicted.

Crime, Legal, News    , ,

Fisker Announces New Karma

Jul25th
2011 Leave a Comment Written by Tracy

Fisker just recently announced the new release of their model Karma. The car is an electric vehicle with a sleek design and is marketed as a luxury vehicle. This new model has sparked much attention and has caught the eyes of many people.

These cars are expected to sell for around $100,000 and Fisker has announced that that it is expected to be sold out until 2012, as they have already received 3,000 pre-orders. Leonardo Di Caprio will be the first person to receive the new car but there are also some other big names such as Al Gore and Colin Powell who are expected to buy the new car as well.

The design of the car is sleek and luxurious and features custom rims and a sports car look. The car is definitely designed to be a high end model and it is no wonder that car enthusiasts are looking to buy it. The interior of the car is leather and has a smart design which is functional yet advanced.

The Karma will run for 50 miles on a lithium-ion battery back and after that if will run on a 260 horsepower, 2 liter engine switches on to recharge the battery. While it isn’t one hundred percent electric, it is a revolutionary car in its field.

Many companies are now beginning to realize the demand for fuel efficient and electric cars. This is a market that has barely been tapped into and it has so much potential. Typically people think of the Prius when they are thinking about energy efficient cars, and for as revolutionary as the Prius was, the design was less than exciting, especially the rims. More and more manufacturers are starting to combine fuel efficient and sustainable with sleek and modern designs. As more companies begin to break into this market, the types of cars available will begin to increase and the amount of people who will want to buy them will increase as well.

Automotive, Economy, Money    , , , ,

Debra Brown Released After 17 Years in Prison

Jun13th
2011 1 Comment Written by Tracy

Debra Brown has finally been released from prison and is enjoying her freedom. She was originally convicted of the murder of Lael Brown in 1993 but has recently been found factually innocent of the crime.

Brown spent 17 years in prison for a crime she is now found innocent of. She has started to answer press questions at her attorney’s law office in Salt Lake City. Debra talks about how different everything is and how much things have changed while she was in prison. She is now able to build relationships with her children and her grandchildren and she compares herself to an adult child, as she has to learn how to do pretty much everything.

With so many changes in technology in the past 17 years, Debra has to learn how to turn on a vacuum, work a cell phone, and use a computer. She is enjoying the simple pleasures of life such as carpet, pajamas and being able to multi task. Brown says she can now watch tv, ride her stationary bike, and crochet all at the same time, a pleasure she wasn’t afforded in prison.

Brown was released May 9 and has been living with her children. Recently, the Attorney General has called for an appeal of her case which could end up sending her back to prison. The Attorney General states that he doesn’t want to set a “flawed legal precedent” and allow other prisoners to challenge their convictions.

Debra Brown and her family are worried about this new appeal but her lawyers are confident that she will win the case, especially having been found factually innocent.

Crime, News    , ,

First Time Tire Buying

Apr29th
2011 1 Comment Written by Tracy

Wading through sales fliers, online stores, and listings for local dealers to buy tires is a major endeavor. If you haven’t had to buy tires before, you may be clueless as to the different tire ratings, sizes, and even the appeal of
black rims versus regular wheels. Take a deep breath and remind yourself that shopping for tires is the same as buying any other larger ticket item. Just follow the same steps you’d use in buying an appliance or electronic equipment.

Educating yourself is the most important step. You need to get familiar with basic tire terminology and learn how to read those weird sequences of numbers imprinted on tires. You should check your car’s manual or the inside of the driver’s door to see what size tires and rims are suited for your vehicle. It’s also a good idea to read some independent reviews to help you decide what brand or specific tire you want.

Do an assessment of your tire needs using the information you’ve learned so far. Take into consideration how often you drive and on what type of roads. Think about any heavy loads or towing you need to do and the overall climate and weather in your area. If there are aesthetic considerations, like those fancy rims, note them at this stage.

Now that you know exactly what you want, you can start pricing your options. Many dealers and online stores offer tires and rim packages that can save you money over buying each individually. Look at any warranties or services, like free rotation, that are included in the price. Then just make your decision and you will have bought your first set of tires.

Automotive   

Assistance With Tax Form Preparation and Filing

Mar22nd
2011 Leave a Comment Written by Tracy

Finding your particular income tax forms is the easy part of filing your taxes. The government itself has all of the forms you could possible need, as well as their instructions, available for downloading right from their sight. Meanwhile, depending on the specific form you will need to use, your likelihood for additional support services can be indicated. For instance, the 1040 and 1040A forms are extremely common among tax filers. These are the forms you will decide from if there are any complicating factors, i.e. a lot of right offs, claims, and multiple sources of income and credits.

If you think you will need some assistance with your 1040 tax preparation , you’re in good company. A large portion of those who file these sometimes complicated forms seek the advice of professionals. And for good reason, you can literally save thousands of dollars in your payment or receive that additional amount back by accessing the qualified professional who knows how to make the most of your particular tax structure. It’s extremely important to be responsible and contribute your fair share to the well-being of the country, however, along with that is the importance of making sure of what is your particular due, and in these difficult economic times, any return you can get is good news.

Money   
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