Insurance and Credit

One of the first questions to ask yourself when deciding which of the best 529 plans to select is whether or not your home state provides a state tax deduction. If so, that’s great, but you’ll have to determine two points before you decide to invest in that particular plan:

1. How much of your contribution can you deduct from your taxable income?

2. Do you know your effective state tax percentage?

This will help you figure out how much you can get back from the state for placing your money in their plan. For example, let’s say you want to contribute $5,000 this year to one of your state’s best 529 plans. Let’s also assume your state maintains a $1,500 contribution limit for deductions and your effective tax rate is 4.5%. That means you can expect to receive $67.50 back on your tax return.

To really take advantage of the tax benefit, you’ll need to add the refund amount back to the 529 in order for it to grow as part of the college savings plan, rather than going directly to you and being spent, which of course would defeat the purpose in the first place.

Next, consider the best 529 plans in your state across the following areas:

* Investment Options

* Anticipated Expense Ratios

* Maximum Contribution Limits

* What is the Matching Program?

When you understand your state’s plan, you will be able to determine if the tax benefit is worth keeping your money invested there. In the example given above where you would get $67.50 back on a contribution of $5,000, that would only make sense if the overall plan were highly rated according to your criteria. If not, we’re talking about such a small amount to get back on your taxes in exchange for lower performance that you could end up with less money in the long run simply to make a small amount on your tax refund.

Here is where you may be able to utilize an advanced strategy to take advantage of the tax benefits and ensure growth in the fund longer term. Of course you can always make a contribution to your state’s best 529 plans assuming you receive a tax benefit in exchange for the contribution. After filing your taxes and receiving the tax refund for the contributions, withdraw the entire amount and transfer it to another state’s 529 plan that has better long-term performance.

Now you can take advantage of the tax refund and better performance! Every year when you make a contribution, ensure that it’s in your home state and then transfer it to the best 529 plan the following year.

Every summer, millions of people embark on driving vacations across North America. Before you hop in the car this summer, it is important to be aware of important aspects of summertime traveling in Canada and the United States. The following is a list of driving tips that will help make your North American driving experience both safe and enjoyable.

Car Rental: Often people will choose to rent a car because it safe and reliable. The size of the vehicle will affect your gas budget. Smaller cars tend to burn less gas. Larger vehicles will have more space for luggage and gear. Front wheel drive will safely transport you across most of North America, but some locations may have rougher terrain so before you rent, make sure you are aware of the type of roads you will be driving on. For instance, will you be driving in a mountainous area or flat paved road? Make sure seating is both comfortable and roomy. Small cramped seating will make the trip an unpleasant experience. If you are going to travel in the south, make sure you have air conditioning for the hot climate. If you have small children, music or even a television in the back will keep them occupied if you are on the road for long periods of time. Also, make sure you have both liability and collision insurance coverage. You never know when an accident may occur.

Road Side Emergency Kit: In the event that you find your self stranded on the side of the road, you should make sure that you have an emergency safety kit. Basic items to include in a kit are a pair of 12 ft jumper cables, road side flares, flashlight and extra batteries, extra quart of oil, first aid kit, tire pump, tire sealant or patch kit, brake fluid, antifreeze, window washer fluid, and some extra rags. You should also have a good Roadside Assistance package and a working cell phone for emergencies.

Follow the Rules of the Road: North American traffic can vary according to the volume of vehicles on the road. Practicing defensive driving is essential to a safe road trip. Driving in both the United States and Canada is greatly policed. You can receive fines or even have your drivers’ license taken away for breaking traffic rules. You must be ready for dangerous actions of other drivers or hazardous driving conditions. Obey all traffic rules such as speed limits, traffic lights, stop signs, and railway crossings.

Maintain Traffic Speed: A vehicle traveling slower than the speed limit may cause a car crash. When entering and exiting freeway ramps, make sure that you maintain an average speed. Keep a safe distance behind the car in front of you. If a car suddenly slammed on the breaks, it could result in a car accident.

Weather Conditions: Rain, fog, and slippery roads, can make for hazardous driving conditions. Make sure you practice safe driving when in bad weather. Use headlights when appropriate.

Alert Driving: If you are driving for many hours, you can often be overcome with extreme tiredness. If you are tired, stop for a rest, or get another passenger to drive. Falling asleep at the wheel can be fatal.

A Heavy Load or Trailer Tow: It is important to take precautions when driving with a heavy load or towing another car, trailer, or boat. You need more space to pass other vehicles. Keep a safe distance from the vehicle that is in front of you. Before you tow something, make sure that your vehicle is properly equipped. When traveling slower than the traffic, put on your hazard lights or pull over to let vehicles pass.

Every year vacationers travel long distances across North America. When planning a summer road trip, make sure that you are equipped with the right knowledge and equipment to make your trip safe, fun, and memorable.

If you need extra cash to cover expenses, youre probably trying to figure out the best way to borrow money. There are several options to consider, including borrowing money from friends or family, getting a cash advance with your credit card, taking out a traditional bank loan, and applying for payday loan. This article will cover the last two options, bank loans and payday loans, and compare the requirements and advantages of each. After reading more, perhaps youll have a better idea of which is the right choice for you.

There are several important factors to consider when deciding which type of loan you need. Do you need a large amount? What is your credit history? When will you be able to pay back the loan? Lets look at a few key points that can help you decide if you if you should apply for a bank loan or a payday loan:

How much do you need to borrow?

Payday loans tend to be for smaller amounts, usually a few hundred dollars up to around a thousand dollars. The amount you can borrow certainly wont exceed the amount of your next paycheck, because this is the money that the payday lender is counting on for repayment. If you have an unexpected car repair and dont have cash on hand to cover the mechanics bill, a payday loan could cover the costs until your next paycheck comes in. If you need a new car, however, youll have to apply for a bank loan.

What is your credit score?

A banks loan approval process takes time ” typically weeks (or even months in the current economy). So if you need cash fast, a bank loan is not for you. Bank loans work better for planned expenses than for unforeseen financial emergencies. A payday loan, on the other hand, means the loan will be approved quickly and you can have cash in your checking account in as little as 24 hours.

What is your credit score?

Payday loans tend to be for smaller amounts, usually a few hundred dollars up to around a thousand dollars. The amount you can borrow certainly wont exceed the amount of your next paycheck, because this is the money that the payday lender is counting on for repayment. If you have an unexpected car repair and dont have cash on hand to cover the mechanics bill, a payday loan could cover the costs until your next paycheck comes in. If you need a new car, however, youll have to apply for a bank loan.

When are you able to repay the loan?

If you can get approved for a bank loan, youll typically have years to repay the loan and have the option of making very low monthly payments. This is convenient because you know you have time to repay your debt. With a payday loan, you usually have a couple of weeks or at most a month to repay the full amount of the loan, plus the interest charged. You have to keep in mind that a large part of your next paycheck will go to pay back your loan, so be prepared to cover your normal monthly expenses and settle your debt in a tight timeframe.

Finally, a note about interest rates. . .

Remember that a payday loan is a SHORT-TERM credit option. Payday lenders charge high interest rates for the convenience of obtaining a quick and simple loan, so these types of loans should be used for emergency expenses only. Rolling over a payday loan can be costly, so plan on repaying it in full with your next paycheck.

After answering these questions, you should have a better idea of which type of loan best fits your needs. Consider all your options carefully before deciding if a bank loan or a payday loan is right for your financial situation.