Financial Services

Last weekend, I went to my local mattress store to look for a new bed. And after a little negotiation, I ended up with a middle-of-the-road model for a pretty good price. At check out, the sales rep offered me a $100 extended warranty on my new bed for “added peace of mind.” I was paying with my credit card—so was peace of mind already covered? Did I really need an extended warranty? You’ve probably found yourself in the same situation. Before your next big purchase, here are a few things to consider:

1. Your card provisions. Most major credit card providers offer an extended warranty on purchases, so it’s a good idea to know what your provider covers. If your card has you covered, there’s no need to shell out cash for the same, or similar, protection.

2. Product quality. Most new furniture and electronics are in good condition, and work as they are supposed to. If you’ve done your research and you feel pretty confident that the product you’re buying is good, dropping $100 or more on an extended warranty might be overkill.

3. The store retur

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Vittorio Hernandez – AHN News

Ottawa, Ontario, Canada (AHN) – The Supreme Court of Canada allowed Thursday the filing of a class-action lawsuit by veterans over their military pension. The action reverses an earlier decision by the Federal Court of Appeal, which was initially certified by the Federal Court.

The case stems from a suit filed by military mechanic Dennis Manuge on behalf of 6,500 injured veterans. Manuge was hurt in 2002 while assigned at the Canadian Forces Base Petawawa. When he left the military, Ottawa took back $10,000 of Manuge’s disability pension, which prompted the ex-mechanic to file the suit.

Manuge got Federal Court okay for a class action, but Ottawa appealed and secured a stay. The Court of Appeal turned down Manuge’s class-action lawsuit, ruling he should have applied for a judicial review of his case.

The basis of the Supreme Court action was a $250 million lawsuit filed by TeleZone Inc. against Industry Canada. The firm accused Ottawa of denying it a license for wireless communication services. The Ont Read more…

Q: I’ve had my hours reduced at work and no longer working overtime. To make ends meet, I’ve been using my credit cards. I have about $30,000 in credit card debt, paying very high interest rate (hovering around 30%). I have five cards. My parents offered to loan me $15,000 from their savings. Can you help me settle my debt? I don’t want to file for bankruptcy.

I get questions like this all the time. Clients wanting to borrow money from family and friends to pay off or settle credit card debts. Usually, the question is prefaced by “I read on Google…” or “My friend told me…” I cringe every time someone says this because I’ve met too many clients who has tried this strategy, failed and comes in to file for bankruptcy anyway. Now, in addition to listing Chase, Discover, American Express, etc. on his or her bankr Read more…

I was especially interested in doing the research for this post, because my boyfriend and I are hosting a holiday/birthday party in a just a few weeks. Since I love entertaining, it’s really easy for me to go overboard with party expenses—party decorations, fancy beverages, amazing hors d’oeuvres—you get the idea. My parties start out with a low-key plan and get pricey fast.

But you can make a party fun, original, classy, memorable, festive—whatever you’re going for—without spending the big bucks. Here’s how:

• Keep it simple. The food that is. Think appetizers and finger foods instead of main dishes. Hummus, peppers, olives and pita slices is one option. So is cheese and crackers. You’ll find lots of fancy but cost-conscious appetizer ideas here.

• Calling all cooks. There are always those dorks who love nothing better than to spend the afternoon making an awesome dish for a party. I know because I am one. It doesn’t need to be a full-blown potluck for you to have select friends who love to cook bring something special.

• Drink cheaply and be merry. When it comes to

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If you are considering bankruptcy, it’s natural to wonder – “Where will I live” and “Who will rent to me after I file?” Oftentimes, this conversation will come up with clients who are facing foreclosure. It’s also a topic of conversation with clients who are currently renting, but are considering moving in the near future. Here are some suggestions.

1. Consider renting now. Depending on your credit, it may be easier to find a place to rent before your bankruptcy. However, it can make more financial sense to live in your current home – mortgage free for as long as you can and sock away the savings. For many clients facing bankruptcy, the time you can get out of your home living mortgage free will be the only “gain” you’ll ever see from the home. Often times, it can take months (frequently 12+ months) before the foreclosure.
2. Consider renting from an individual landlord. It’s oftentimes much

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Props to you for having a little cash—and for deciding to save it. Back in the day when I was about eight, I went with my parents to the neighborhood bank and opened my first savings account. I think I deposited a whopping $10. The stakes are a little higher when you’ve got more coming in—that’s why it pays to know your savings options.

Whatever amount you’re starting with and whatever you’re saving for, ask yourself: How long will I keep my cash there? How often do I want to make withdrawals? How much do I plan to stash?  

The longer you leave your cash alone and the more you keep in the account, the more interest you’ll usually earn. Here are some of your options:

• Basic bank savings accounts: You’ll earn low interest (around 2%) but in most cases you can make withdrawals whenever you want, and there probably won’t be a minimum balance.

• High-yield and money market savings accounts: You can earn slightly higher interest rates (around 3–4%); but you’ll probably have some withdrawal limits and minimum balance requirements.

• Credit unions: Like banks, but owned by their customers, credit unions usually offer high interest rates on savings.

• Certificates of deposit: If you can leave your money alone for a long time, think about a CD—these earn the highest interest rates of any savings option a bank allows. Just know that early withdra

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Written by San Francisco bankruptcy lawyer, Jeena Cho

I always tell my clients that there are 3 rules in bankruptcy – disclose, disclose, disclose. In exchange for getting rid of all (with few exceptions) of your debts, you agree to complete disclosure of your financial world. This includes not only your debts but all of your assets too.

Let’s talk about 3 common mistakes people make when listing assets.

1. Overvaluing. In law school, one of my professor used to say – what’s priceless to you may be worthless to everybody else, which is a very difficult thing to value. For example, your pet(s). I know your dog may fetch your newspaper in the morning, cuddle with you when you watch TV, and you wouldn’t sell him at any price, but chances are, your dog is worth $0. Unless you have a show dog, or he stars on his own TV show, he’s worth $0. (Please don’t take this to mean I dislike dogs. I love dogs.) Read more…

Since my last post, yours truly broke her left hand (see, I was telling the truth when I said I was klutzy in my intro!) Over the past two weeks, I’ve learned a lot about health insurance, the kindness of strangers and how to open peanut butter jars with one hand. Such life lessons will be left for later posts.

For now, I’d like to make a bold statement: you, my dear reader, are rich. Yes, it’s the holidays so you’re lucky to have friends and family who love you. But I posit that you are dollars-and-cents rich because you have so much human capital. I roughly define human capital as the knowledge and skills you’ve learned to produce something of economic value. You’ve built your earnings power through decades of education, hobbies, and on-the-job training. Over time, you “convert” human capital into financial capital, through promotions, salaries and stock options. Given these countless hours, why shouldn’t you protect your human capital?

My second bold statement: most of personal finance defends and grows your human capital, as well as your financial capital. For example, a lo

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While you’re chilling out this week, knee-deep in stuffing and mashed potatoes, here is a little food for thought: if your savings isn’t where you want it to be, the trick may be setting a goal.

Case in point: me. A recent resolution to make coffee at home instead of buying lattes out just wasn’t working. But once I’d decided to save $1,200 for scuba diving training and a trip to Hawaii, brewing that cup at home got a whole lot easier.

Whether it’s something small (a new jacket) or major (a down payment on a car), having your eyes on a prize makes saving easier. Here are a few tips for setting your goal:

1.  Make it specific. Saving “some cash” for school expenses is a tough goal to meet and an easy one to forget. But saving $250 by January 1st to help cover spring semester costs is a lot more tangible—and motivating.

2.  Make sure it’s possible. I am not going to be able to save $5,000 in just a few months for travels around the globe. Instead of setting myself up for failure, I set my sights on a smaller trip. Make sure your “pri

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Any blog on mastering personal finance has to talk about how to give back. I bet you care about a cause that could really use volunteers, donations or cash gifts. While you’re choosing your cause, here are some ideas about how to do good with more financial savvy:

• Keep records of everything you donate. Even though it’s easier to let your parents take care of your tax paperwork, you should do your fair share by tracking what you’ve given. When I moved out of my last apartment, I didn’t want to list 100+ book titles, so I snapped pictures of the books while waiting in donation line. Goodwill and Salvation Army have good guides for how you should value your clothing, furniture and gaming systems.

• Donate time instead of money: Great way to connect with the community of other donors. A few years ago, I was inspired by Thanksgiving to volunteer in the fight against hunger, so I cooked at a soup kitchen for a few weekends. I wanted to help those outside my immediate city too, so I volunteered at a charity that fights global hunger, especially in developing nations. I was r

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