Corporate Trade

Do you live in a community property state?  If you do, you should understand the laws as they relate to separate property and community property.  By definition, community property is joint ownership, by husband and wife through marriage, of property obtained during that marriage. This property is then split between them both if there is a divorce or annulment. This property was purchased during the marriage with earned money by either spouse.

But, community property is not always owned by both spouses as some property can be separate and thus called “separate property.”
Any thing, including property, that is owned before a marriage falls into the separate property and if the marriage fails, each party keeps his or her previously owned property.

Gifts and inheritances are also seen as separate property and not subject to laws for that state. There are only nine states in the US with community property laws. They are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

With all the electronic record keeping these days and the demand for personal information, identity theft is sweeping the nation. Identity theft is growing in employer contribution retirement plans like 401ks. Led by dishonest employees and identity thieves, the 401k asset theft is running out of control.

With a dramatic increase of incidences of retirement plans,  the Wall Street Journal tells us that in 1995 there were only 34 cases of theft that year. By 2004, that number grew to 1,269 cases. This form of theft happens a lot more than people would like to believe.

You may wonder why this increase is happening. More and more people are contributing to their retirement accounts and with increased technology use, the risk just goes up. Protect your nest egg by asking for account summaries of your 401k to be sure your money is going there and staying there. Consider rolling over your 401k to an IRA the day you retire and keep a watchful eye on your hard earned nest egg.

As the years go by, we eventually develop our dreams for retirement.  Maybe it is that house on the beach watching the sunset or it could be that cabin in the woods with no traffic or neighbors. Once you reach the age of sixty you know retirement is close, but money problems are still there and will create tension for you.

The pension plan that you started when you were forty that seemed fantastic at the time, now not so great twenty years later. If you started your retirement plan early, then you had low premiums. But if you planned into the future, then you were smart enough and allotted for inflation and medical bills. If this was your plan then you will retire comfortably and be able to have that dream life that you have been looking forward to.

If you have already retired and find your pension money a little on the short side, don’t worry, there a many way to help your finances. There are mortgage plans for those seniors who own property as they can then borrow against it for their retirement. The bank would then recoup their money with the sale of the house when the owner passes away.  Retirement can be good but only if you start planning for it years in advance.

US Savings bonds have two forms: EE bonds and I bonds.  These bonds are backed by the government and so they offer a guaranteed return and are a safe way to invest. They are exempt from state and local taxes which is their main benefit.

The EE bonds have a minimum of $25 and can be bought electronically or on paper. With the electronic EE bond, you are limited to $5,000 each year and they are sold at face value.  The paper EE bonds are only sold in certain denominations and have the same limitation per year as the electronic.  The paper bonds are sold as half their face value and until the bond has matured, it is not worth its face value.

Both types of bonds have a three month early redemption penalty. If you redeem this in the first five years you will be charged this penalty. After five years, no penalty. You can avoid the taxes on the interest earned if you use your savings bonds to pay for a college education. The qualification here is that the person who buys the bonds must be at least twenty-four years old and a taxpayer. You sill need to meet certain income requirements.

When you purchase a new car, you will pay for it in one of two ways. You either pay cash or you finance with a loan. Not often do you see someone paying cash outright for a vehicle, so the typical route is with the car loan.

Choosing to finance your car through the dealership is a convenience because it can be done on the weekend and in the evenings when banks are closed. But you will find higher interest rates for this convenience.  You could finance through your credit union or bank and get better rates but then also have credit history and income requirements for anyone applying for a loan. Then there are those who can use their home equity to purchase a car. This options sounds the best but if for some reason you cannot make your car payments, then you have that risk of not only the car but your home too.

Before you even step out the door to the car lot, check your credit report first and see if there are any errors that need to be fixed.  Small errors can really effects your score and will then effect the interest rate that you will be offered. Look for car lots that are offering rebates or incentives on their interest rates. There is a lot of competition out there, so shop around for the best deal you can find.