Are you pulling from your retirement fund early?

Question

Are you pulling money out of your retirement fund, have you considered it and what advice do you have for someone facing this situation?

Answer:

I actually don’t have a retirement fund in a traditional sense. My husband and I have a nest egg that we put money into. However, if I am understanding the ways 401(k)’s work, then it isn’t a great idea for people to pull money out of it early unless they absolutely have to. The fees for drawing from a retirement plan early can be quite high, however the fees vary depending on your fund.

If I were faced with a situation where I either had to pull from my retirement fund or my family would go without food, then I would likely pull from the fund…it just all depends on your individual circumstances and how you feel about it.

Are you ready to sell your house?

Question:

It looks like there could be a break for house sellers in the market. Are you ready to sell your house?

Answer:

I have to say that I’m not ready to sell my house just yet. While the market in my area IS picking up, it still isn’t where I would like it before I decide to put my house up for sale.

I think that if you give the market some more time then you may be able to see a bit more money than if you sold now. Especially if you wait until the Spring, when the market gets hot again.

Are you being ripped off by an online company?

Question:

In 2006, AOL announced that it would stop charging for @aol.com email addresses. Since then most of the customers have been switched to the free service, however there are still a few less internet savvy users out there that are paying for email service that is supposed to be free; many of them not even noticing.

This is just one example of how people are being ripped off every day from online companies. Are you being ripped off? How about someone you know?

Answer:

While I am not currently being ripped off by AOL’s shady business practice of continually billing someone for something that is free, I think I might know someone who is. And all I have to say is: If this person is paying for this service than he/she is less internet savvy than I could have ever imagined and he/she deserves it.

Other than that, I am not currently being ripped off by any online company to my knowledge. There was a time a few years ago, however, that “someone” I know was being ripped off by a company who cheated him out of a couple hundred dollars…he has not seen that money to this day.

Do you think that the recession is coming to a close?

Question:

There are plenty of economic indicators pointing to a big “yes” but do YOU think the recession is coming to an end?

Answer:

I believe that it might be. Like the question poses, there are several economic indicators that are pointing to the recession ending, but there is a little doubt left. Of course after such a brief recession, there is some doubt whether or not the recession is coming to a close. However, most people are a bit more optimistic and are really looking forward to the recession ending.

Do you support an employer’s decision to check the credit score of someone applying for a job?

Question:

It is becoming more and more common for an employer to check the credit score of a potential employee. Do you support this practice?

Answer:

Absolutely not. I have several articles I have written on this very subject and I make my feelings toward the practice pretty clear. If the employer gave the candidate a chance to explain blemishes on their credit report, then I would be a bit less abrasive toward the practice, but otherwise, this is just ridiculous. If an employer is looking for a reason not to hire someone, I’d like to see them come up with a better reason than the candidate’s credit score.

Why are people taking out cash advance loans?

Question:

Cash advance loans are notoriously bad loans. They typically have outlandish APRs and often leave the borrower in some kind of financial turmoil. So, why would anyone take out a cash advance loan to begin with?

Answer:

People take out cash advance loans because they need emergency money and their credit isn’t good enough to get traditional loans. This is one of the only reasons that I can imagine why people would want to take out payday, title, or cash advance loans.

Many people can’t afford the outrageous APRs, so I am not too sure why these companies pop up just about anywhere there is a hole in the wall. I suppose it’s because they make so much money off the people who do pay, that the people who don’t or can’t pay are overshadowed by the other customers’ payments.

What was the most embarrassing job you’ve ever had?

Question:

There are so many embarrassing jobs out there. They’ve really created an entire TV series around jobs that no one wants called “Dirty Jobs.”

Every now and then people will have to hold a job that may not be the most flattering for them, but it will pay (at least some) of the bills.

So, what’s the most embarrassing job that you’ve ever held?

Answer:

Even though I never “reported for duty” on the job, I was hired to be a debt collector hours before getting hired to work as an intern at a marketing magazine. That was really a no brainer in my opinion. After getting the job at the magazine, I simply didn’t show up for the job at the debt collection center. I never really wanted to do that and would have hated every minute I spent there.

By the way, this collection center is always looking for workers.

Was cash for clunkers a success?

Question:

After all the media hype and the commercials surrounding the cash for clunkers or CARS program, do you think it was actually a success or did it fail to bring real sales to the automakers?

Answer:

I was always a little weary of the program because the rules that came from the government were a bit easy to find loopholes in and while the automakers did see sales increase dramatically over the past few weeks, the program didn’t last as long as the government had hoped and now the car companies are dealing with the sudden jump in sales with low production.

The sales were only due to the program. If the program had never existed, sales would still be flat. So, in a way it was a success, but overall I don’t think that the government really saw what it hoped for.

Have you found your place in a recession proof industry?

Question:

With the recession looking like it might be winding down (hopefully), but with unemployment still hovering just below 10%, have you found a job where no matter how bad the recession has gotten, you don’t feel threatened?

Answer:

I don’t have a job, so I’m hoping that some of you will answer this. I don’t think that there is one person out there who doesn’t worry about their own job security from time to time. Perhaps the exception is nurses and people who work in the medical field. I have a friend who is a RN and I really don’t think she ever worries about whether or not her job will be there the next day. I would love that kind of job security in a field that I actually wanted to work in.

Is it time for the Fed to relinquish some of its power?

Question:

The United States Federal Reserve has a lot of power when it comes to the economy. They oversee more than just the money the country has, but other things too like consumer issues. So, is it time for the Fed to give up some of the control?

Answer:

I think the Fed needs some of the power that it has. I don’t think it needs to be able to move the interest rates without a longer bureaucratic process simply because the movement of the economy is settled on the shoulders of the Fed.

Overall, the Federal Reserve does good things for the economy and typically works in the interest of the people. However, the economy is more than just interest rates.

Have you or would you use Hotwire?

Question:

I was looking into booking a hotel somewhere for a trip away form my house and was wondering if anyone has ever used Hotwire and gotten a good result?

Answer:

I would assume that plenty of people use Hotwire everyday, otherwise it wouldn’t be doing as well as it is. You do get to pick the area your hotel is in and the “star rating” of it. However, the star rating can be kind of subjective because there’s no industry standard.

I haven’t personally ever used Hotwire, but I have booked hotels on websites like Orbitz. I suppose I just like knowing what I’m getting myself into.

Is America Online charging you or someone you know for free e-mail?

Question:

In 2006, AOL announced that it would stop charging for @aol.com email addresses. Since then most of the customers have been switched to the free service, however there are still a few less internet savvy users out there that are paying for email service that is supposed to be free; many of them not even noticing.

Are you being ripped off? How about someone you know?

Answer:

While I am not currently being ripped off by AOL’s shady business practice of continually billing someone for something that is free, I think I might know someone who is. And all I have to say is: If this person is paying for this service than he/she is less internet savvy than I could have ever imagined and he/she deserves it.

What benefit will GM get from a 1-for-100 reverse stock split?

Question:

Today GM alluded to plans to do a 1-for-100 reverse stock split, meaning for every 100 GM stocks a person owns, it gets “turned into” 1. How will this benefit GM and it’s attempt to restructure the company?

Answer:

Before a reverse stock split can be performed, one main condition has to be met:
-GM has to reach an agreement with the UAW to swap stock for around $10 billion of the $20 billion in payments GM must make to a trust fund that funds retiree health expenses. This would make the UAW’s stake in the company about 39% while current bondholders would get 10% and stockholders 1%.

When the deal with the UAW is finished, GM will have 62 billion shares, which is 100 times more than currently are outstanding.

So, how does this benefit GM? According to a GM filing, “If the restructuring as currently contemplated occurs, there will be very substantial dilution to existing holders of GM common stock.”

So…GM is actually doing a reverse stock split to benefit investors (and hopefully not scare away any that were thinking of investing in the under-performing stock).

Many actually think that in the proposed deal, GM and the UAW are getting it all and that stock and bondholders are getting a raw deal.

Image Source: Nate Beeler

Is Online Banking Really the Way to Go?

Question:

With identity theft as well as bank systems having a hard time surviving in the current economy, is online banking really the most efficient and safe way to go?

Answer:

Banking systems are safe. There are rumors going around the internet that banks are unsafe and aren’t the place you should put your money, but you have to realize that the FDIC has your best interests at heart and unless you carry a balance of over $250,000 in one bank account at a time, you’re fine.

That being said, online banking is also safe as long as you double and triple check the website address before you enter your personal information in the site.

While I know this wasn’t an attempt to grab my bank account information, it was still an attempt to take some of my personal information: I was on MySpace.com and a friend had posted a bulletin about something that had a link in it. The link was to rnyspace.com…Notice the RN makes the “m” in myspace.com…This has to be watched carefully to make sure you aren’t being “phished” for information.

When you’re careful, online banking is safe and efficient.

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The Pitch Series Starts – Starting this Friday(2-27-09) we will start a new series called The Pitch.

What is The Pitch?

The Pitch is a biweekly series which polls our readers on a variety of subjects ranging from investment decisions, political situations, to a possible review of a business idea. The purpose is to not only help our readers gain a better perspective on an issue but to also allow them to bounce ideas off of each other. A successful pitch helps to create a creative and responsive environment to share ideas and where honest opinions can be voiced on the subject at hand.

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One of the best parts of The Pitch is allowing our readers to submit their ideas, questions, or business ideas to us for us to use in the series. This allows our users to not only engage in an active discussions on the site but to create a targeted topic to discuss with our readers as well.

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