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It was 1977 when the Vietnam War ended and the GIs came home. They began taking out loans and spending some of their savings. At that time, in America, monetary inflation as a result of the war and the large amount of savings sloshing around in banks started creeping into the prices of tangible goods such as metals, food, and energy. Social Security benefits were rising at an annual pace of near 10%. The economy was affluent with liquidity.

In 1979, Paul Volcker stepped in as chairman of the Federal Reserve and realized that Americans should keep faith in the U.S. dollar to save the Federal Reserve, along with the fractional banking system of the United States, from collapse. He raised the rates to 20 % whereby the system became purged of excess liquidity, though as an unintended aftermath. This made mass bankruptcies to ensue. Short term lending dried and the economy ceased to function properly. However, complex investment derivatives and globalization postponed the inevitable situation. But, as an aftermath of globalization, big bulk of Dollar went to Chinese foreign exchange holdings because of massive trade deficit of America with China. This made a considerable dent on money supply in the economy. A huge amount of dollars went also into the reserves of oil exporting nations as well. A further contraction in liquidity, resulting in a scare, came about on account of the collapse of the dot.com bubble. However, the dollars which were initially going into foreign reserves, but eventually returned to the U.S. economy in the form of purchased U.S. treasuries. All the same, the net inflow of dollars remained negative and the gap went on being widened. To keep the economy moving forward, the money supply and loan base needed to grow at a faster rate than the rate at which liquidity was being contracting.

The members of the Federal Reserve understood that for this economy to move forward, something needed to be done, and they took serious action. They immediately began printing money at large and started slashing interest rates so as to make home loans to become more appealing. In addition thereto, exotic lending instruments became created in order to provide more loans to the already strapped consumer. Hence, the beginning of sub prime mortgages came about. This helped the economy run a little bit longer but how much longer? The problem of current account deficit running in the red persisted whereby dollars went on continuously to flowing out of the country. By and by, the economy went on advancing towards the point where it becomes unable to sell any of its debt and the consumers become unable to take further loan. Large number of loans started going bad and the banks became short of capital to make further loans. Ultimately the melting point became reached, the faith in US Dollar and US banking system collapsed and a deeply threatening recessive trend settled in the US economy. The bailout strategy and likewise monetary measures could not check the money going wrong way. Nor the trade enhancement efforts could prove fruitful to mitigate, to the required extent, the increasing dollar reserve holdings by other countries like China through currency manipulations based on their cheaply produced exports. The recessive trend of US economy stepped beyond national boundaries through international transactions and trapped almost all European countries. Thus, almost the whole Europe and America came in the ambit of the scaring economic turmoil called ‘The Depression 2008’.

DEPRESSION TRICKLE IN INDIA

On the other hand, Indian economy (like other developing countries) was still suffering from persistent inflationary pressure on account of heavy autonomous investment aiming to achieve increasing growth rate. The inflation rate touched a blatting height of 12.91 % in the week ending on 2nd of Aug. 2008, despite that the income distribution was highly unequal, the middleman profit margins were unjustifiably high and banks were enjoying sufficient saving deposits. There was being observed sufficient demand in market despite the prices were increasing on account of increasing costs of production due to illogically heavy payments to CEOs, MDs and other likewise personnel along with superfluously enormous expenditures on advertisements. There has been prevailing mass unemployment but the wages and salaries were increasing. This shows that the Indian economy was running in a paradoxical condition. Thus, only a small spark was needed to start the reverse gear to make Indian economy advancing towards the point of meltdown. Being exposed to the risks of trading with the depression stricken countries and the cheaply produced export manipulating countries like China, on account of globalization, the Indian economy ultimately got the spark which was though unwanted but symptomatically due. The prevailing inflationary pressure started being mitigated. The front line concerns observing price decrease started crying for help instead of finding cost reducing ways and means to cut the unnecessarily and illogically raged costs. The government and the RBI (Reserve Bank of India) mistakenly came to their help in haste and that too following the way of bailouts as inspired from US. A short detail of the measures taken by the government and RBI is as under.

(1) SBI declared cut in various banking rates (REPO rate, SLR, Reverse REPO rate, CRR etc.) on N0v.02, 2008 to provide extra capital of Rs 850 billion in market. Including all previous measures RBI provided total extra capital worth Rs 2750 billion in the market up to this declaration.

(2) The government declared on Nov. 18, 2008, Rs 500 billion to be invested by the Central Government with public-private partnership in infrastructure projects.

(3) SBI declared on Dec. 06, 2008, a special loan facility of Rs 110 billion to help housing and small industries.

(4) The government declared on Dec. 06, 2008, a budgetary help worth Rs 150 billion to infrastructure projects.

(5) The government declared on Dec. 07, 2008, a bailout package worth Rs 3000 billion to rescue the economy from depression grip.

(6) The government declared another economic package on Jan. 02, 2009 to remove slackness in the economy due to the world depression. In addition thereto RBI declared further cut in various banking rates that would bring about an increase worth Rs 200 billion in the liquidity in banking sector.

All the measures mentioned above could not prove fruitful in keeping the economy beyond the ambit of depression grip. Hence, Indian economy also, like US economy, went on slowing down making the remedial measures to slink. The inflation rate came down from 12.91 % in the week ending on Aug. 02, 2008, to 5.24 % in the week ending on Jan. 03, 2009. Thus, the average downfall in the inflation rate came out to be of 0.37 % per week (approximately) during the period of five months. Moreover, the trend of per-week downfall was found to be increasing. It was 0.44 % in the week ending on Nov. 22, 2008 and came to 0.67 % in the week ending on Jan. 03, 2009. The average per-week downfall in inflation rate was 0f 0.20 % within the period from Aug, 02 to Oct. 18, 2008. It came out to 0.44 % in the week ending on Nov. 22, 2008 and to 0.67 % in the week ending on Jan. 03, 2009. During the above said period of 22 weeks (approximately five months) the per-week downfall of 1.10 % was the maximum which came about in the week ending on Dec. 06, 2008.

The vehicle manufacturing sector became badly affected. The sale of passenger cars came 6.98 % down to 82105 cars in Dec. 2008 as compared to 88272 cars in Dec. 2007. The decrease in the sale of passenger vehicles came out to be 13.85 % as the sale remained 99352 vehicles in Dec. 2008 in comparison to 115334 vehicles in Dec. 2007. The sale of trucks and buses came 58.28 % down as it was 42961 vehicles in Dec.2007 and came down to 17920 vehicles in Dec 2008. Three wheelers also observed 28.98 % decrease in the sale as the sale was 26823 in Dec.2007 which came down to 19048 vehicles in Dec.2008. The aftermath of this downfall in the sale of automobiles resulted into both the direct and the indirect cuts in the prices of all automobiles. For example, price cut from Rs 125000 to Rs 200000 on Volvo trucks and from Rs 16000 to Rs 37000 on Eicher trucks, The prices of Hero Honda products have been lowered from Rs 1000 to Rs 2000, the prices of different products of Bajaj Auto stand lowered up to Rs 2100, Bajaj Auto also lowered the prices of its three wheeler products up to Rs 4400, General Motors India made a price cut on their different cars from Rs 8000 to Rs 16500 and Ford India lowered the price of its model ‘Fusion’ by Rs 18000, Fiesta from Rs 2100 to Rs 25000 and Endeavor from Rs 47000 to Rs 54000. Similarly, Maruti Suzuki started giving discount from Rs 15,000 to Rs 35,000 on its cars and Tata Motors gave relaxation on its cars from Rs 20,000 to Rs 30,000. Moreover, Hyundai Motor India Ltd. decided to sell its popular model, SANTRO GL (Solid) model, at 10 years old price of Rs 299000 along with giving relaxation worth Rs 15,773 in the form of free insurance and accessories in non-AC segment, worth Rs 26,000 on SANTRO GLS model and from Rs 7,000 to Rs 25,000 on GATZ, Accent and Verna models.

Some of manufacturing companies are exercising wage cut indirectly through short term block closers, cut in working hours or cut in week days. For example, Tata Motors observed fourth block-closer for three days in its heavy vehicles plant at Jamshedpur from 28th to 31st December 2008, TELCON (Tata Construction Equipment Co. Ltd.), a company with 60 % partnership of Tata observed a second block-closer in its Jamshedpur plant, within a period of one month, for three days from 25th to 27th of December 2008, Telco Construction Equipment Co. Ltd. (TELCON) observed a four days block-closer from 4th to 7th Dec. 2008 and ZF Steering, a vehicle ancillary company declared a second block-closers from Jan. 21st to 27th, having already observed the first one from Dec. 21st to 27th, 2008. On the other hand, Ashok Leyland observed five days week for two months.

Some companies have started to resort even to retrenchment of employees to some extent despite restrictive directions from the government. Retrenchment of 15000 temporary employees in the ancillary industries of Tata Motors, job loss for more than half of a million employees of depression stricken textile industry and discharge of 60 % workforce of manufacturing facilities of Volvo India are some of the examples.

GOVERNMENT RELUCTANCE

Despite the frequent news coming from media for last two weeks, regarding different concerns placing demand for and pleading further bailouts, the government seems to pay no heed to this issue and show reluctance to exercise another bailout in near future. I think the government has now come to understand that bailout is a weapon of no use to make the current turmoil good since it neither improves income distribution nor it checks the money going wrong ways. Companies intend to preserve their profits by making good the deficit in profit, caused on account of demand based price cut, through bailout proceeds and not through cost cutting, in its stead. They speak of increased cost but want not to accept that the rapid cost increase has come about not on account of raw material price increase and wage rate increase but due to the illogically, unjustifiably and arbitrarily enormous payments to advertisement agencies, the directors, CEOs and likewise personnel, on one hand, and due to irrelevant, unfair and unjust profit margins of middlemen or traders (some times even up to 10 times of the whole sale price), on the other hand.

SCARING 2009

However, the reason of the government silence may also be the coming end of the term of Congress Party’s government. If it is so and the depressive effects are being suppressed without undertaking legitimate and compatible measures of depression encountering, there will be a blatting invasion of austere depression on Indian economy after the due elections are completed. If so happens, the later half of 2009 will become very difficult and rather scaring for us since the Indian economy would be thrown into a sore predicament. If the condition of rapidly falling inflation rate, banking rates, stock market index etc. persisted, the under developed Indian economy may have more difficult to get through 2009, in comparison to the well developed US economy.

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Temporary Car Insurance Under 25-Asset Protection in the USA

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Asset Protection in the USA

Asset Protection in the USA

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Home Page > News and Society > Politics > Asset Protection in the USA

Asset Protection in the USA

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Posted: Jun 18, 2009 |Comments: 0
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Introduction – When we surf through the web we see many entities selling American Trusts, Corporations and other structures that they consider to be asset protection strategies. These run the gamut of corporations in the states of Wyoming, Delaware or Nevada, trusts of various types in different jurisdictions and other structures all based in the USA.

What is wrong here is that nothing in the USA can protect you from an aggressive judge who feels your assets should be seized to satisfy some sort of debt or perceived debt. You are subject to the mercy of any Judge who may or may not be following the law. Now if the Judge over steps his bounds you are faced with paying massive legal bills to correct the situation in the appeals process. Your odds of winning an appeal are probably under 1%. Ask some of these law firms that do these asset protection structures what their rate per hour is going to be to try and protect your assets if they come under attack from a financial enemy of yours. Figure on rates starting at 5.00 per hour (very low) and going up to 50.00 per hour for a partner in a top–drawer law firm in the USA. Ouch.

So the point is judges do not always follow the law in this country therefore no asset protection structure is going to be very protective. Litigation in the USA is too prevalent and expensive to allow one to comfortably use this jurisdiction for asset protection. The legal expenses of defending the asset protection structure can wipe out your assets. If you locate your assets offshore the odds of ever having to defend them against a financial adversary are miniscule.

USA Private Detectives – Now we can talk about private detectives in America getting bank information, credit card information, phone records etc. Go look at the ads on the Internet and call these private detectives up, they even take credit cards. The credit card fraud perpetrators use these people to get dossiers on potential victims they are going to fleece through an identity theft scam, and they even use stolen credit cards to pay for the files for their next victims. They will get your bank statements, cell phone statements and bills, phone bills and records, credit reports, driving records, public records – just about anything you wish to pay for. Big law firms have retainer relationships with private detectives.

We can also go on to discuss identity theft from security violations perpetrated by private detectives concerning bank accounts, credit cards, public records. If you vest your Panama real estate in the name of an anonymous bearer share corporation how could that possibly help someone do an identity theft on you? If your bank accounts were covered by bank secrecy laws wouldn’t that help insulate you from identity theft? If your credit card came from a bank under bank secrecy laws wouldn’t that help protect you? Panama is a much safer place legally and practically.

Confiscation of Funds and Assets – Next problem is civil court ordered pre–trial confiscation of funds. This can happen in a civil matter such as divorce. Remember any judge on a Federal, State, County or City level can pretty much get at any asset located anywhere in the USA. Usually this is a temporary hold or confiscation pending some court date but could be permanent in theory and/or practice. They usually refer to these actions as liens, levies, seizures, garnishments, attachments, and even injunctive relief. The terms vary with the jurisdiction. In the USA some government agencies can confiscate funds without taking you to court, thus no trial, no being judged guilty by a court of your peers, no due process, no trial by judge etc.

There are other government agencies that would need to get a court order to confiscate your funds in a civil matter and other assets but the courts tend to listen hard to these agencies and usually give them what they want which is going to be your assets. There are no really anonymous corporations in the USA. There is no bank secrecy or privacy at all. There is really no secure way to protect your assets from confiscation from any judge for any reason the judge deems lawful in his or her opinion as a jurist. Sure you might be able to go to court later on after the confiscation and convince a judge to return all or some of your assets but with what funds are you going to pay for your legal defense since your bank accounts, real estate etc is now all frozen.

Now you have to convince a lawyer to take your case hoping he can get the judge to allow your money to be used to pay for your legal defense. These lawyers that want to confiscate your funds without you even getting to give any testimony don’t even want you to be able to pay for your defense. They will argue that they are so sure of winning it is a waste of money to let you use the funds to pay for a high–powered law firm. How can there be asset protection in this legal environment? The ONLY way to accomplish asset protection where the USA is concerned is to liquidate the assets and move the funds offshore where the money is placed in a corporate or foundation bank account, stock brokerage account or into real estate in Panama.

USA Civil Lawyers Methods – Let me explain what an Ex–Parte proceeding is to start off. It is a legal proceeding where one of the other parties is not present and probably does not even know such a proceeding is taking place, usually the defendant. Let us assume you “feel” you have a good case in a court of law against a person or corporation. You hire a reputable law firm and prepare a complaint with whatever evidence you may or may not have. Next you file a complaint but do not serve the complaint and at the same time file an emergency motion with the court for an Ex Parte hearing in the Judges chambers in private, before the other party even knows you are suing them. You basically tell the Judge that you feel you have an excellent chance of winning and you are most concerned that the defendant will attempt to flee with their assets when the lawsuit commences thus causing you irreparable harm in that the money damages you suffered will then never be recoverable from this alleged culprit who has never had a chance to say one word in his or her defense so far. You then ask the court to freeze the defendant’s bank accounts, real estate and other property of the defendant so the defendant cannot flee with the assets thus allowing you to recover your debt when the court rules in your favor, which you are so very sure, they will do. You of course post a bond to cover any damages in case you lose. This plays much better when you are using a large politically active law firm. Now it is going to be an unlikely event that you lose since your adversary now has all his money frozen so how is he or she going to pay for an adequate legal defense.

Essentially the victim (defendant) is suffering as if he were broke, all before he had a trial in court, and in this case even before he knew anyone is even suing him let alone having been convicted by a jury of his peers. Imagine you wake up one morning find all your bank accounts, stock brokerage accounts, and real estate all frozen by a court as a result of an ex–parte motion. Your cars, boats, planes have been towed away by the sheriff, all based on the allegations of some large rich corporation or plaintiff claiming you did something to them in a secret tribunal with the judge.

Secret tribunals are a very bad thing for asset protection. If the defendant argues that he needs the money for defense the plaintiff argues that it is going to be a waste of time and money to let the defendant blow money that should go to them on a legal defense, which will never prevail. They are arguing to prevent the fair trial by jury guarantees provided in the constitution and instead substituting in unconstitutional confiscation without due process and secret tribunals all of which are acceptable practices these days.

So now the defendant is essentially broke, how can he manage his business and retain adequate legal counsel? Mind you all of this happened without the defendant ever having a chance to defend himself in court. What if the plaintiff forged or falsified evidence against the defendant? This is one–tactic wealthy corporations and individuals employ against small business people that get in their way.

Don’t let your lawyer tell you this is rarely done. If it happens to you they will still insist it is rare. It is a common procedure in the USA just restricted to those who can afford to pay large law firms unscrupulous enough to do it. To your lawyer it may be rare because your lawyer doesn’t work in a firm with 750 other lawyers defending billion dollar conglomerates that routinely will spend a few million dollars on a legal case. Most of the Internet giants do this in their litigation; look up their court cases to see it happening. Government regulatory agencies have a very similar way of doing this in the court system as well. It operates slightly more openly but has the same effect – frozen assets before you get your day in court thus preventing you from operating your business and mounting a good legal defense since you have no money.

The Summary Judgment Scam – This is another one unscrupulous tactic lawyers use to get your assets away from you. They file a case in court and serve you. They wait the 20 or 30 days for you to respond. Assuming you respond with a denial or rebuttal against the claim they then file a summary judgment motion. The argument will be your defense is frivolous and you cannot possibly win and thus it is a waste of the courts time to allow this case to proceed to a full trial. It is a way to guarantee that you never win. They want the judge to summarily dismiss your counter claim if you filed one and summarily award the case to the plaintiff.

The more ethical use of this procedure is when the defendant is properly served and ignores the complaint. Thus the defendant is not fighting back so why have a full trial and waste the courts time and money. In a summary judgment you have no chance to confront witnesses against you, or be tried before a jury of your peers, not even a trail before a judge. No day in court for you. These summary judgment motions are nasty in that they in themselves are often unfounded and designed to make the defendant (you) spend money to defend against them. Sometimes in the course of a civil case there could be seven or eight summary judgment motions all of which are expensive to defend against. If the plaintiff decides to run up a legal bill by taking numerous depositions the defense could decide to ignore going to the depositions thinking these witnesses are basically irrelevant and thus saving money.

A dangerous game for sure but if the other side is taking depositions frivolously to run up a bill on both sides (common tactic) and one has limited funds you could still stay in the game by conserving funds and ignoring the depositions letting the plaintiff go to the depositions themselves. You could also ignore overly broad subpoenas served on the defendants or on witnesses. Rather than filing protective orders to restrict the discovery power of the plaintiff back to being on point you could elect to let them run wild on fishing trips to save money and you would still be alive in the lawsuit awaiting trial where you could win. The summary judgment motion cannot be ignored. To ignore it means an automatic loss for you. Technically if you had an ethical judge and you were defending yourself the judge would look at the summary judgment motion and protect your rights. While operating pro per (acting as your own attorney) may help spare you from a summary judgment your odds of winning at trial would be statistically extremely low, too low for wisdom.

Running Up the Legal Bill – Many lawyers practice this as an integral part of their practice in the USA. They bring the other side to their knees for a settlement by making the litigation very expensive. Forget the facts, the fight now becomes surviving the lawsuit long enough to make it to trial and thus pre–trial preparation is likely to suffer greatly. If you can’t keep paying the lawyers, you will not make it to trial (think summary judgment) and lose. The ways of them doing this are numerous. They must always appear to be legitimate in their quest for useful knowledge to help them make their case or the judge may award sanctions against them for filing frivolous motions (rarely ever awarded). The lawyers that practice this are expert at it since this is how they practice law. Below are some methodologies that are used to run up the legal bill for the other side. Of course these practices favor the one with the most money. Essentially with offshore asset protection we are reversing the game and making the plaintiff spend a big fortune if they want to chase your assets to Panama or Guatemala with little or no chance of success.

Excessive Discovery – All sorts of records are subpoenaed. Tons of witnesses are set for deposition. In one instance the large law firm set a witness for deposition every day for several months continuously, knowing it would shut down the small lawyers practice. He had to go to court and was fortunate enough to get the judge to limit the depositions to one per week but this dragged everything out much longer. All sorts of records are subpoenaed. This is to bait you to spend money limiting the discovery. All sorts of motions are made up. Some motions will have names never to be found in any law books. The large firms have databases of all sorts of motions they have gotten away with over the years.

Emergency Arbitration – This is a real gem. Here the plaintiff drags you and your expensive lawyers in to try to settle. Judges love this stuff since it can clear their calendar. If you are far from the court it can really run up your bill. Very wasteful way to get legal bills high.

Long Trials – Plaintiffs ask for many days for trial. This makes it harder to get on the calendar and drag things out longer so hopefully more discovery can take place, which means bigger legal bills. Courts have found ways to streamline litigation but lawyers have also found ways to get things perverted again so they can run up the legal bills.

Venue Shopping – Plaintiffs try to file their lawsuits in a jurisdiction that will be the most expensive for you to defend in or where they can have the best chance of winning due to prejudices based on the past rulings of the court. Courts and Judges do not like to reverse on themselves. There is even a way where they can file in a federal court for violation of state civil laws. Imagine that, sounds incredible to get a federal court to enforce a state law but have seen it done successfully. They do this to get a judgment that they can enforce anywhere in the USA and also to take advantage of the way the courts have ruled on sensitive issues in this district in the past. If you have to hire counsel thousands of miles away it gets expensive. Then add in all the travel time they can inconvenience you with like with their emergency arbitration, regular arbitration, and the 25 day trial itself for which your lawyer charges 00 to ,000 per trial day.

John Doe Lawsuits – Do you know what a John Doe lawsuit is? I will explain this unusual tool of legal chicanery that we know works in the USA.

Let us say you are a large billion dollar corporation and you feel you have been harmed in some way but are not able to identify the party or parties responsible for the tortuous act. Say someone has been violating copyright protected material of yours by distributing it for free or for gain. You file a lawsuit in Federal Court against John Does 1–99 stating that you will identify the actual defendants, as their identities are uncovered in the course of discovery. You send a law clerk down to the courthouse and he has the court clerk officially stamp the lawsuit and now this lawsuit is live. OK now you have the subpoena power of the federal court at your disposal and there is no opposing counsel to block your subpoenas and depositions. There is no opposing counsel because the people you are suing have no idea they are going to be sued and you are not yet sure who they are or if you can even sue them yet.

So you go about your merry way issuing subpoenas for bank accounts, phone records, stock brokerage accounts, insurance records, internet records (like every website they ever visited, all email sent – yes the big ISP’s there keep copies of all this forever), credit card bills, email accounts, etc. all very lawful USA subpoenas and the judge has no idea you are issuing these subpoenas unless he decides to read the files (not likely with no opposition) and there is no opposing counsel to fight to protect the privacy of the records on behalf of their client. The company receiving the subpoena has no obligation in the USA to let the customer (think phone, bank, credit card, credit bureaus, or internet records) know that a subpoena has been served on them requesting your records. They prefer not to tell you so they do not get caught up in a fight over the records and then they may have to retain their own lawyer and run up a bill.

If it is a lawful subpoena they can just submit to it and have no liability unless there is some sort of agreement in place to notify you or protect your privacy, which would be most rare. The lawyer might even take a few witness depositions to get the facts explained in more detail. The judge need not individually approve these subpoenas for them to be valid. Normally subpoena copies are sent to the opposing counsel who can make a motion to block or limit them called a protective order. Here with a John Doe lawsuit there is no opposing counsel to get in the way of the plaintiff who can run amuck using the power of the court to get all sorts of records violating the privacy of countless people without their knowledge.

What a great tool if you are an unscrupulous lawyer. By the way this tool could be used against you at any time to get your bank records, phone records, internet records, email copies, credit card bills etc all without your knowledge lawfully. This probably does not make you feel warm and mushy inside about having assets in the USA. So basically you don’t even need to sue a real person or corporation to get to use the subpoena power of the mighty US Federal Courts.

This works best in the Federal Courts by the way but could be applied to some state and local courts. Remember the entity being served with the subpoena like the bank or stock broker has no obligation to tell you the owner of the bank account that a subpoena was served on them for your records and they could even be ordered to keep their mouth shut so as to prevent flight with the assets. Another fine example of the sheer lack of privacy and asset protection laws in the USA whereby a stranger can examine your bank records based on a lawsuit with nobody.

If you haven’t thought of it consider what happens to your bank records after the opposing law firm has lawfully obtained them. Can they enter them as evidence into the lawsuit and thus make them public record? Sure. They enter them as evidence and file the copies of the bank records, phone bills, internet records like all your emails, every website the logs show you visited, credit card bills, stockbroker records all in the courthouse into the file. This file is a lawsuit against no one but still they got it into the public records where it could be picked up and put on the Internet, in newspapers etc. Once the information gets into the public domain anyone can use it lawfully, yes even law enforcement agencies for criminal prosecutions. Can they share this information with others? Good question to ask yourself now, not after something like this happens to you.

Defendants Fight Back – To illustrate the absurdity of their civil court system gone amuck we will site some unethical tactics that defendants use against the big law firms and Judges who favor the big firms.

Recusing the Judge – A recusal is a court action where you motion the judge to remove themselves for some reason usually pertaining to his bias or lack of objectivity (prejudicial) in the case. The motion must be presented to the judge at first. A judge will rarely recuse himself or herself. If they know one of the parties in their private life they would probably recuse themselves. Appellate courts are slow to reverse a judge who refuses to recuse himself unless there is overwhelming evidence. An example would be he was once married to one of the parties in the case. So if the big slick law firm got a judge for a reason then you can recuse the judge if you have grounds, which is rare.

What is done is the defendant files a lawsuit against the judge, which now gives objective grounds for a recusal and then asks the judge to recuse himself. The judge may get mad and try to get a summary judgment dismissing the case but then again you and the judge were still adversaries in a lawsuit and recusal is proper and if the judge refused the appellate court would probably grant the recusal.

Suing the Opposing Counsel – In this scenario one side starts personal lawsuits against the opposing counsel. This lets them take depositions and is mostly to harass the lawyers. Sometimes they even sue the wife and relatives of the lawyers. A dangerous and expensive game reserved for wealthy people but it does go on. This illustrates the actual absurdity of the court systems in that country.

Locking the Other Side Out From Decent Counsel – If you live in a small town this can work. Lets say it is a divorce case. Before filing for divorce go visit all the competent divorce lawyers in the city. Have a paid consultation with them to discuss the case. Explain some non–essential particulars to them and make sure you take notes at the meeting. Then when the other party to the divorce finds out they are being divorced they go out and look for a good lawyer and find out you have created a conflict of interest with all the experienced lawyers in the area. This drives them to go out of town. The out of town lawyer will generally as a rule do worse in court than a local lawyer who knows the judges and how they like to run their courtroom. Again another manifestation of a judicial system run out of control by aggressive lawyers.

USA Trusts and USA Corporations – I know one can argue that their USA trust or corporation is not responsible for personal debts and there are court cases to back this up. Then inquire as to how much money it is going to cost you to defend the asset protection strategy against aggressive collection lawyers who know just how to make it real expensive for you to defend against them so as to bring about a painfully expensive settlement. Unless you have many millions it will not be cost effective to fight. It is a legal jungle in the USA and we cannot see any daylight in trying to protect assets in the USA using any USA based vehicle including trusts, corporations, foundations etc.

USA Real Estate Asset Protection – We get calls constantly from people who want to change the title of real estate from their own name into the name of a Panama Corporation or Foundation to shelter the asset from litigation. This can be done but is probably not going to accomplish too much in terms of asset protection unless the other side is sloppy, careless and does not have much money to spend.

The lawyers pursuing you will be curious that you no longer own a house you live in that you used to own. They will find out about it from credit reports, public record checks, having private detectives talk to neighbors, and other means. Then they will ask you if you sold the house? If so where are the sale proceeds, where was the escrow etc. They will smell a rat and eventually will ask you questions in deposition and then go to the judge and ask the judge to set the transfer aside as a fraudulent transfer in that the property was not really sold it was just a straw man transaction to avoid creditors attaching the asset and also stick you with the additional legal expense they incurred setting the transaction aside. The judge may want to hear from the Panama Corporation before he sets the transfer aside but that isn’t going to do much good unless there is an actual escrow and real money changed hands and then they are going to ask you where the money you got from the sale is now.

The same thing would happen in the case of putting a mortgage on the property through a Panama Corporation. Where was the escrow? What did you do with the money, etc? Their plan would be to have the judge set the mortgage aside as fraudulent allowing the creditor to take the real estate away to satisfy a debt. If a piece of real estate never in your name was acquired through a Panama Corporation and paid for from Panama and your name never came up in any escrow etc then that would be hard for a collection attorney to associate with you and could be overlooked. The collection attorney could take your deposition and ask you questions about any and all assets you had if there is a judgment. This is post–judgment discovery and could occur in the form of interrogatories (written questions) about your assets including any assets transferred or sold in the last few months or sometimes they go back a year or longer depending on the state laws (they call this a look back period).

We never advocate lying as part of an asset protection strategy. This sort of lying is perjury, which is generally criminal so that is not a viable plan. They will ask about any corporations you own. If a structure can be created to let you survive the questioning without lying you would be ok. Not easily done and we are not going to get into this with someone inquiring on the phone or by email who is not a paid client even if they say things like “We are not going to pay you if we do not know what you are going to suggest we do”. Sorry we will remain non–responsive to such queries, which are reserved for paid clients only. The safest position is to liquidate real estate and move the funds to a safe jurisdiction. Hopefully, this is done before any court orders are issued.

USA Attorneys and Conflict of Interest – In the USA if you go to an attorney and ask them to help you shelter your assets offshore they are going to be unlikely to help you do it effectively or even take you as a client. Why?

First of all they do not understand the offshore world in all likelihood. The laws are different than what they are used to. Secondly they cannot operate offshore and must retain an offshore law firm in the jurisdiction they would need to operate in. This means they could get sued in the USA for something the offshore law firm did that the mutual client did not like. Thirdly if the client is evading a debt and the lawyer does a good job of protecting the assets he can be sued in the USA for assisting in a fraudulent conveyance. A fraudulent conveyance is an act whereby assets are removed from the reach of a creditor to avoid attachment.

What a creditor is, is ill defined in the USA. It could be adjudicated that there was a fraudulent conveyance even though there is no judgment or court order. The reasoning is you should have known that there was a likelihood of being sued or if you were sued it would be likely that you would lose. So even if you were in an active and costly legal defense and moved assets offshore it could be argued that you were doing so to fraudulently convey the assets out of the reach of the person that might one day be a creditor. Please note that not all movements of capital offshore are fraudulent conveyances. One can relocate their domicile offshore, one could buy real estate offshore, make investments offshore, start or buy a business offshore etc. The burden of proof should be on the plaintiff to prove that the movement of assets was to take the assets out of the reach of the creditor and if you could show other reasons why the funds were put into another jurisdiction then the case is far harder for the plaintiff to win and of course much more expensive. If it comes out in the debt recovery case that the lawyer assisted the client in moving assets offshore and then the lawyer is complicit and gets sued. Remember the lawyer most likely has malpractice insurance, which means he has deep pockets. Just getting sued means the malpractice carrier will minimally raise the rates on the lawyer or drop him, this is America and that is how things work there.

What the USA “asset protection” lawyer will most likely try to do is put the client into some sort of a superficial USA based asset protection structure. This will not be effective against many classes and types of financial adversaries. The lawyer gets to charge you legal fees and earn some money. If you wind up losing your assets in court the lawyer hides behind the decision of the court to take away your assets and thus avoids any liability or exposure. After people hear the features and benefits of these USA based asset protection structures they generally do not think to ask how much it would cost to defend the structure against an attack. They also do not ask what types of an attack can be effective against getting the assets in such a structure. The list is long. The USA lawyers will not appreciate such a discourse in that it starts to expose them to liability. You will hear things like each case has its own merits, etc. You are not going to hear anything with certainty. There are lawyers who specialize in busting trusts and asset protection structures in the USA. Sometimes it can be cheaper to settle with these lawyers versus drawn out fights using law firms who bill at 0 an hour and they know this and take advantage of it. The worst part of it is that nothing in the USA will keep your assets out of reach from snooping private detectives. Once assets can be tied to you then you become a target for trouble. Private detectives get nowhere in the offshore world.

Obstructing Justice Charges Against Your Lawyer – If your lawyer in the USA is representing you in some action where the plaintiff is a governmental agency (City, County, State or Federal) the lawyer could be charged with obstructing justice. If the case seems frivolous to the prosecutor and the judge who coincidentally get paid from the same employer, decide that the defendant really has no case and mounting a defense is just running up expenses and dragging things out then the lawyer representing you can be told that he is about to be charged with obstructing justice. The prosecutor could just outright so charge your lawyer if they desired to do so. This would mean the lawyer now has a conflict of interest with you and would have to step off the case. This would mean much greater legal expenses for you. Imagine trying to convince a lawyer to step in and represent you after this happened.

Offshore Asset Protection – In Panama and Guatemala lawyer games like those described above do not exist. Corporate and foundation assets belong to the corporation or foundation. Tagging on personal debts is extremely difficult to prove and there are tight statues of limitation concerning such fraudulent conveyances to defraud creditors (three years). USA lawyers cannot practice in Panama or Guatemala; they need to retain a local lawyer if they ever wanted to do anything in these countries. Government agencies from foreign countries have no levy, attachment or confiscatory powers in Panama or Guatemala. You and your assets are much safer in Panama or Guatemala.

-Aurelia Masterson, www.panamalaw.org

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About the Author:

Aurelia Masterson is an associate of Panama Legal law firm (http://www.panamalaw.org). She has years of experience in the field and now shares her observations of current events, politics, and law with the Internet community. She can be contacted at: aurelia@panamalaw.org.

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I have been looking to open a bank account in panama and i have been reading that the best way is to go through a law firm located in panama. Is this a good idea. Also is panama legal a reputable firm
Tnere is a lawsuit against the beneficaries of our family trust. I can understand that they see the trust income tax return, but do they have a right to see my personal tax return?

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Aurelia Masterson is an associate of Panama Legal law firm (http://www.panamalaw.org). She has years of experience in the field and now shares her observations of current events, politics, and law with the Internet community. She can be contacted at: aurelia@panamalaw.org.

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Temporary Car Insurance Under 25-Does Advertising Pay During Recession?

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Does Advertising Pay During Recession?

Does Advertising Pay During Recession?

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Does Advertising Pay During Recession?

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DOES ADVERTISING PAY DURING RECESSION?

by

Mrs. A.Bharathy

Research Scholar ( Dravidian University) &

Lecturer, Dept. of Management

Pondicherry University Community College , Pondicherry

Advertising it is said creates magic in the market place and on the other hand it bears the unfair burden of being directly linked to sales performance. Though it performs a multitude of functions from creation of awareness , to building brand comprehension, to enhancing band image, to boosting the morality of the workforce etc..This paper “Does advertising pay during recession?” deliberates on the much debated board room question especially during recession. A question that has been raised many times over the years by agencies and clients alike since the 1920′s “Does your company view advertising as an expense or an investment?” and “How have others succeeded during a soft economy?” This paper brings to fore through an in depth analysis of the past and present data to augment the credibility of using advertising as a tool for reaching out to one’s target market during recession or not.

Advertising the magic wand in the market place is important for brand building and its successful marketing. It is important for tangible products like mobile phones, refrigerators , television and computers. It is equally important for services like hotels, holiday resorts , airlines and even state tourism .The same is true for ideas and causes. All marketers want consumers to buy their brand. Firms advertise with just this objective in mind .But it is here that one has to remember “Isn’t it not an unfair burden on advertising?” when the final sale is dependent on many other factors and there is no direct relationship between the firm’s sales and advertising expenditure. This is in contrast to distribution and personal selling or even customer service , where one can establish a direct relationship between any of them and sales.

Hence the role of advertising is limited to awareness creation or providing information and favourable attitude development to say so. While its role is limited, the marketer has to compare the costs of different elements of his /her communication mix. One yardstick is cost per thousand of people. This is lowest in advertising. However, we must bear in mind that people are generally biased against advertising and many still believe it is a waste of organizational resources , particularly in a country like India. The very concept of advertising is highly debated even in normal economic circumstances , say

“Money spent on advertising is a waste!”

“Advertising is an economical waste!”

“Advertising misleads consumers!”

So it is very natural that companies feeling the heat of reduced revenues and eroding net worth during recession , one of the first things that CEO’s decide to ” Save Money” is to put forth their axe on the advertising budget. Now this primarily depends upon whether the company views advertising as an expense or an investment?

THE KEY ISSUES AND OPPORTUNITIES

The question of advertising during a recession is one that has been asked many times over many years. Interestingly, the answer still does not seem clear enough to marketers.

The answer to the question is that advertising during a recession provides a unique window of opportunity for investment purposes to:

1) Build equity;

2) solidify your customer base;

3) Gain new customers; and

4) Make inroads on your competitors who have cut their advertising during the recession period. This window of opportunity is created by the understanding that advertising is an investment, not an expense.

However, it is easily understood why many people do not view advertising as an investment, but treat it as an expense. It is because advertising frequently does not represent a fixed cost, like capital expenditures, which are investments. Given the above stated opportunities it is logical to deduce that advertising in times of recession should not be axed.

ADVERTISING DURING RECESSION IS NOT AN OPTION

These are challenging times for businesses. Many local operations — big and small — are struggling to face the difficult losses sustained during this year. And companies everywhere are faced with tight budgets and tough decisions. Small retail stores are struggling to stock their shelves, meet the cost-cutting tactics of competitors, and draw in now-frugal consumers whose purchases they scrutinize more so now than ever. But the reality stands that everyone still needs petrol for his or her cars. Families need to eat. Children returning to schools need clothes and supplies. And, people still need supplies from light bulbs to gardening tools. Businesses, large and small, who sit back and weather the storm with the belief that, once the economy picks up, so will business are missing out on tremendous opportunities. Companies must show the consumer that they are stable enough to withstand hard times. Now is the time for smart companies to seize market share and position themselves to lead the inevitable economic turnaround. Business owners must remember what it was like to start a new business, gain name recognition and entice customers. Withdrawing from the public until the economy picks up and cash-flow increases will mean having to reinvent the company all over again. A cost that will weigh far more than a few quarters with lower than average profits.

PESSIMISM OF ADVERTISING DURING RECESSION

The three most commonly believed myths for not advertising during a recession are:

“People don’t buy much during recession , so our advertising would be wasted”;

” All the companies are reducing their advertising budgets and hence the competition doesn’t demand doing so much of advertising”; and

“The money saved on advertising helps us to pay dividends to stockholders.”

Myth 1 :” People don’t buy much during recession , so our advertising would be wasted”. Wrong – People don’t buy much during recession and hence we should do more aggressive advertising to get people to buy .The pessimism among advertisers is mainly a myth, hardly warranted by facts. Also some of the recent studies have shown that recessions have only about 2% reduction in people’s disposable income but despite that people tend to sit back and maintain liquidity .For eg: Study done by McGraw-Hill’s showed that a 13 page advertising during recession increased company’s recognition from 32 to 45%. For 1980-85 recession all those companies which did not reduce their advertising budgets increased sales by 16 to 80% & most important was the fact that the increase in sales was not a temporary thing but permanent.

Myth 2: ” All the companies are reducing their advertising budgets and hence the competition doesn’t demand doing so much of advertising”. Wrong – This is just the right time for you to take charge and go one up against your competition and so if your competition is not doing advertising during recession – you have an opportunity to bring about a dramatic improvement in market position. for eg: In 1975 GM and Ford used two different strategies and where GM kept with the same budget and Ford reduced budgets – so while GM increased the sales and Ford’s sales went down by 14%.

Myth 3: “The money saved on advertising helps us to pay dividends to stockholders.” Wrong -attempting to regain a favorable position lost during a recession costs more in the long run than to retain it by continuing to advertise. There is likely to be a fast erosion of the consumer franchise that the advertiser has taken years, even decades, to build. It is near impossible to regain the old customers once they have adopted competitive brands. And, of course, firms can more readily explain a drop in dividends if the money was used as an investment to protect market share.

Now this leaves behind a question “wouldn’t continuing or increasing advertising budget during recession isn’t by itself a mechanism of controlling the recession.

HOLDING /INCREASING ADVERTISING BUDGET FOR BETTER PAYOFF

In spite of the clutter, great advertisements have broken the clutter and have worked wonders to build brands and their market shares during recession / slowdown. Some of the examples are interesting.

Vodafone’s series of Zu Zu commercials released during the second IPL-20 cricket matches in South Africa were so much a hot favourite among the viewers that the man of the series trophy must have been given to it. Ariel’s advertisement series featuring Madhavan and Vidhya Balan very well communicated the various services provided by it to the consumers. This went a long way in brand recall and increasing its sales in the Indian market in spite of recession.

Though Online Travel and Finance categories saw a slowdown, there was an upsurge from Insurance clients. Even in the recession, insurance companies – Bharti AXA, ICICI Prudential, Metlife – stepped up their advertising. Also, new categories emerged in the recession – Auto became more active and increased their spends . The overall spends, despite the recession, went up in India in year 2008. Education is a category that was stable and growing, consumer electronics grew with Nokia spending significant marketing dollars online.

Another example is General Motors’ Chevrolet division, which faced mounting inventories in 1975 due to the recession and high fuel prices. The company abandoned its traditional practice of setting its advertising expenditures as a fixed percentage of sales. While volume fell 10 percent because of the economic slowdown, Chevrolet maintained its ad budget and actually increased advertising for its fuel-saving economy models. Ford Motor Company, on the other hand, slashed advertising by 14 percent in an attempt to shore up profits. That may have achieved its goal, but it permitted Chevrolet to increase its market share by 2 percent.

According to ADEX (a division of TAM media research) an overview of the ad spends in our country in 2008 indicates

26 per cent rise in TV ad volumes during 2008* compared to same period in 2007.
‘Food & Beverages’ was the Top sector in TV advertising during 2008*.
‘Cellular Phone Service’ category had maximum TV ad volumes during 2008*.
‘HUL’ maintained its first rank in both the years 2008* and 2007.

Data for 2008* available till 27th Dec ’08

During 2008*, TV advertising has recorded growth of 26 per cent compared to 2007.
Cellular Phone Service’, ‘Social Advertisements’, ‘Toilet Soaps’ and ‘Cars/Jeep’ categories maintained their respective ranks in 2008* and 2007.

Other companies across the globe that have taken advantage of advertising during a recession to establish strong market positions while developing brand equity include such diverse company names as Bristol Myers, Campbell Soup, Coca-cola, Gillette, Pillsbury, Apollo Hospitals, Paramount Airways, Procter and Gamble, R.J. Reynolds, Rubbermaid, Levi Strauss, Stroh Brewery, United Airlines and Welsh Foods-among others.

ADVERTISING DURING RECESSION

Statistics from the past US recessions show that it is short . On an average , they are mild. During a recession GNP typically declines by about 3%. The exception of course is the unusually severe 1973 to 1975 recession , when the GNP declined by 4.3 %.Further we see that recessions are selective. Recessions impact some industries, products and regions of the country hard and bypass others entirely. Studies reveal that among the industries and products most affected are: automobiles, home furnishings, large appliances, travel and airlines, convenience foods, aluminum, steel, petrochemicals and synthetic fibers. Relatively unaffected are: liquor and wine, tobacco, small appliances, packaged goods, computer and service industries.

It is here that one should ponder on the bird strategy , just as a high flying bird, however high it flies, comes down to rest for a while before it begins to fly high again , so also recession is just a phase in the economic cycle of the world. In this present scenario of recession 2008 going on as depression 2009 many of the business houses are strategising on measures like cost cutting , downsizing , revamping business on core competency and the like – cutting down one’s advertising budget seems to be in top priority in the wish list of many a corporate.But actual studies confirm that advertising aggressively during recession not only increases sales but increases profits. As Sir John Hegarty , Chairman and Worldwide Creative Director , Bartle Bogley Hegarty says “ Recession is good for advertising” . However the key ingredient for advertising success in recessionary times would be:

“Thinking has to be inventive , especially when the going gets tough” as

Dabur’s Sitaram says if we keep our ad spends intact in this time and keep coming out with innovations we can gain the market share. Their strategy is to deliver value and create delight.

“Select the most compelling offers and advertising must bring them to center stage in the most persuasive, inviting and memorable ways”

Sandeep Singh , Deputy Managing Director , Toyota Kirloskar Motor , says getting in direct touch with the customers and offering them special prizes on a new car coupled with innovative awareness campaign.

“The way for companies to maintain their market share is simple: to advertise”

Take, for example, the real estate and development industry. Despite a decrease in revenue, The Ritz Carlton continues to rise, realtors continue to show property , Why? Because these businesses continue to advertise. Construction is beginning to pick up, the availability and need for owner occupied homes has not waned.

So finally we can say that advertising does pay during recession but in selecting advertising, you can ask yourself two key questions: Does it say the right, bright thing about the product, service or offer? Does it say it in the right, bright way — in words and pictures that feature the product, instead of subordinate the product, and that are appropriate to the brand?

You must also, of course, run the advertising with the right, bright media plan, so you can reach your target audience in the most effective and cost-effective ways. When you have such advertising, your clients can invest in it with the knowledge that it is far more likely to succeed. In fact, the clients can know that their advertising is doing as much for them as advertising can do. Why? Once the advertising is saying the right thing in the right way in the right places, you’ve done everything you can to maximize its effect.

As this is the time to be aggressive and not do what many business people do , which is the fastest and easiest route to cutting overhead by slashing their advertising budget. These advertising secrets are especially valuable in tough times — and extraordinarily profitable in good times. As I emphasis ” recession is good for advertising”

References:

“Advertisement an expense or an investment” ,www.yourstory.in, article by Manik Kinra , CEO , Creadivity
“Recession is good for advertising”, The Hindu Businessline , on 16 April 2009 , article by Sir John Hegarty , Chairman and worldwide Creative Director , Bartle Bogley Hegarty
“Business News” , July 2009 , in Nanayam Vikatan
“Marketing in a slow down” , The Economic Times, 19 February 2009 , article by Vinay Kamath et al
“The Secrets of Successful Creative Advertising.” Book written by Tom Attea
“Advertising management” book written by Novee , Bovel , Thill and Wood
Adex India (A division of TAM Media Research)
“Smart marketing in times of slowdown”, The Economic Times, 25 November 2008 , article by Amit Sharma & Reshmi R Dasgupta

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Mrs. A.Bharathy

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Pondicherry University Community College , Pondicherry

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High Paying Google Adsense Keywords in January 2011

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Free High Paying Google Adsense Keywords 2011
List Keywords High Paying Google Adsense in January 2011 :
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25.45 laser hair removal maryland
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the adword publisher pay a lot of money to have the firt show in the advertisers page , so be the first to use this keyword , it’s very easy to do that just be inteligent

You Can do a Research In articles Base about one or more of this keyworld , and creat a page with the copied content and enjoy earning money

Source : Zikah Tech Forums

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Posted on 23 February 2011 by admin

Facts about tires and questions enswered

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Facts about tires and questions enswered

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Should I rotate my tires?
Regular and proper tire rotation promotes more uniform wear for all of the tires on a vehicle. We recommend tire rotation at least every 6,000 miles. Four-wheel-drive vehicles may require rotation even sooner, such as every 4,000 miles. Check your vehicle owner’s manual for the manufacturer’s rotation recommendations. If no rotation period is specified, tires should be rotated every 6,000 to 8,000 miles. The first rotation is the most important. When tires are rotated, inflation pressures must be adjusted to the vehicle manufacturer’s recommendations

Why do I need to balance my tires?
When the clothes clump in one spot of your washing machine during the spin cycle, the washer rocks wildly from the uneven weight distribution. This is what happens if each wheel and tire are not properly balanced. The result is an uncomfortable ride, the steering wheel will vibrate, and you’ll damage your tires and your suspension system as your tires bounce against the pavement. These problems can be easily prevented by having your tire retailer balance your wheel/tire assemblies when you buy new tires and when you have them rotated. It’s a worthwhile investment.

Can a punctured or flat tire be repaired safely?
If a tire loses most of its air pressure, it must be removed from the wheel for a complete internal inspection to be sure it’s not damaged. Tires that are run even short distances while flat are often damaged beyond repair. Most punctures, nail holes or cuts up to 1/4 inch–confined to the tread–may be satisfactorily repaired by trained personnel using industry-approved methods. Don’t repair tires with tread punctures larger than 1/4 inch, or any sidewall puncture. Also, never repair tires which are worn below 1/16 inch tread depth. Make sure your spare tire is always ready to do the job. Check it regularly for proper air pressure and be sure that it is in good shape. If your car is equipped with one of the several types of temporary spares, be sure to check the spare tire’s sidewall for the correct inflation pressure, speed, and mileage limitations

Can my tires ‘age’ without even being used?
Tires age even if they have not been used or have only been used occasionally. Cracking of the tread and sidewall rubber, sometimes accompanied by carcass deformation, is evidence of aging. Old and aged tires must be checked by a tire specialist to ascertain their suitability for further use.

Is it possible to overload my tires?
As a matter of fact, it is. The maximum load rating of your tires is stated on the tire sidewall Do not exceed these ratings. Tires which are loaded beyond their maximum allowable loads for the particular application will build up excessive heat that may result in sudden tire destruction. If you are replacing the original-size tires with tires of a different size, the replacement tires must have a load-carrying capacity equal to or greater than the original equipment tires.

What should I do if I feel a vibration while driving?
vibration while driving indicates that your vehicle has a problem that needs attention. The tires, steering system and suspension system should be IMMEDIATELY checked to help determine the possible cause of the vibration. If the vibration is not corrected, it could cause excessive tire and suspension wear. It could even lead to a loss of control of the vehicle, which could result in an accident.”

Do I need winter tires?
If you live in an area where the temperature is consistently below 10Â° C (45Â° F) you do. Winter tires are not like All-Season tires and have special rubber compounds designed to improve traction, handling, and braking in all cold weather conditions, not just ice and snow.

How many winter tires are recommended?
Four. This is the most frequently asked question. The answer is the same for every vehicle type, whether you drive a compact car or SUV.

Why are four winter tires recommended?
Traction, control and safety. Many people assume that the two drive wheels are most important and the other two tires sort of tag along. This idea was valid twenty or more years ago when snow tires were different only in their tread design. Today’s winter tires have different compounds and designs that deliver from 25 to 50 percent more traction in snow and ice, and stay pliable in cold weather allowing for more control on dry roads. Using just two on a vehicle creates a traction mismatch that can have serious handling consequences. Using four winter tires ensures optimum traction and control for all vehicle types. It is always recommended to use four winter tires, it’s the cheapest insurance you can buy to protect yourself, your family and others.

What can happen if I only use two winter tires?
Running only two winter tires can cause you to lose control of any vehicle; here’s why: Front Wheel Drive Vehicles Even though steering, acceleration and most of the braking are done by the front wheels, don’t forget about the braking done by the rear wheels. If the rear wheels are not equipped with winter tires too, you are essentially disabling the rear brakes due to lack of traction. The following is what can happen using only winter tires on the front: Traveling along in your neighborhood at 25 mph in just light snow, you begin to slow down to make a right turn. As you apply the brakes, your winter tires are doing their job, giving you all the traction you need to slow down. At the same time, the all-season tires on the rear are giving you much less traction causing the rear of your vehicle to slide around. Perhaps at slow speeds no harm is done, but what if this had happened at highway speeds? Rear Wheel Drive Vehicles Many people think that winter tires on the rear will solve the acceleration problem in ice and snow and that’s good enough. But getting your vehicle to accelerate is just half the battle; you still need to stop! The majority of braking is done with the front brakes, and failing to put tires designed for cold weather on the front of the vehicle can have disastrous consequences. Also keep in mind that steering is the sole function of the front tires, with insufficient traction it’s like not being able to firmly grasp the steering wheel. How confident would you feel, now that you know this, if you were equipped with only rear winter tires, driving on snow, ice, or even cold pavement at 45 mph and you suddenly had to brake and swerve to avoid trouble? Chances are you could not stop and turn in time. All (or) Four Wheel Drive Vehicles During the winter would you purposefully disconnect your four-wheel drive and use just two wheel drive instead? Absolutely not. But that is exactly what you are doing if you use just two winter tires. The traction mismatch basically â€œdisconnectsâ€ the two other wheels not equipped with winter tires. This leaves you open to the control problems cited in the other two sections, depending upon where you mount the winter tires.

Do I need winter tires to improve traction if my vehicle has Traction Control?
Yes . Even though traction control optimizes the traction of your tires in adverse conditions by preventing wheel spin, this specialized system does not create additional tire traction. Traction always depends on the four contact patches created by the tires. The better traction your tires provide, the more effectively the traction control system will help you drive more safely. Cold temperatures will cause all-season compounds to harden, losing pliability and traction.

My vehicle has ABS brakes; does that eliminate the need for winter tires?
No. An ABS braking system prevents “locking-up” the brakes by “pulsing” them as you apply pressure to the pedal. But remember it is the tires on your vehicle that supply the traction and help the ABS deliver faster stops. Tires built with better winter traction will improve overall braking performance on ice, snow and cold roads.

What are the symptoms of improper tire pressure?
Check Tire Pressure Regularly: Tire pressure should be checked whenever you suspect a problem or at a minimum, seasonally. Symptoms of improper tire pressure include excess wear and squealing when going around a corner (for under-inflated tires) and reduced traction (for over-inflated tires). Even the temperature can affect your tire pressure. Check your owner’s manual to find where they’ve posted the proper tire pressure (usually on one of the doors) and be sure to keep it at that level. An improperly inflated tire not only wears quicker, it can also be dangerous when stopping and can cause tread separation. You can purchase a tire-pressure gauge at your local auto parts store, use a gauge at the gas station or ask your tire dealer to check it for you.

How often should wheel alignment be checked?
If you’ve hit a pothole or scraped your tire on a curb, your wheels may have been thrown out of alignment. Symptoms of wheels that are out of alignment are excessive wear (one tire may wear more than the others) and steering problems. You may notice that your car veers to the side when you’re on a straight road or the car doesn’t steer properly in a turn. Unless you notice any of these symptoms, you should have your alignment checked annually.

What Are the Different Methods of Making Wheels?
In today’s marketplace, two wheel materials are most common, steel and aluminum. Steel wheels are made in two pieces; the inner piece (called the center) that bolts on to the car, and the barrel (or outer) which receives the tire. The two pieces are welded together to form the wheel. Most original equipment wheels are made this way, and so are many after market wheels-especially for trucks. Steel is a durable and less expensive material. The other material, aluminum, is by far the most popular type of wheel we sell. Its light weight, superior heat dissipation and seemingly endless design variations make it the material of choice for most buyers. Aluminum wheels can be manufactured in many ways, and each method offers advantages. . One-piece Cast Wheels A cast wheel is made by pouring molten aluminum into a mold; the metal then takes the mold’s shape as it cools and hardens. There are three types of casting methods, low pressure/gravity, counter pressure, and high counter pressure molding (HCM); each method has its place in today’s market. A wheel manufacturer will select a particular method according to the weight, strength and finish that they have specified for that design. Naturally, the more sophisticated and costly methods produce lighter and stronger wheels but at a higher price. . Forged/Billet Wheels The two words “forged” and “billet” have become synonymous, but in fact the manufacturing process is called forging and the material used is an aluminum billet-a solid piece of dense aluminum. The forge, a huge machine that exerts thousands of pounds of pressure on the metal, basically presses or rolls the billet into its fundamental form. This forging is then machined to final finish. This process allows wheels to be built with much less material, allowing for lighter weight and unique designs, because the process creates a much stronger wheel than other methods. . Multi-piece Wheels The processes mentioned above can be combined to produce a wheel of a particular strength and weight at a particular price. For example, some wheels have a cast aluminum center, welded to a steel outer. Another type of two-piece construction features a billet center welded to a rolled outer (extruded aluminum rolled into a hoop). Still other wheels feature a split outer so that widths and offsets can be made to custom specifications. This last method is the three-piece type construction. In this type of wheel, the center which can be cast, billet or forged, is usually attached to the outer assembly by special screws or rivets.

What Does Fitment Mean?
This term is used to refer to the physical specifications of the wheel and the availability of the sizes that will fit a vehicle. So, the fitment specifications for a particular wheel and vehicle include the bolt pattern, the offset, the wheel width and the wheel diameter.

What Does FWD and RWD Mean?
Most wheel catalogs use these acronyms, FWD for Front Wheel Drive and RWD for Rear Wheel Drive , to sort out the wheels available for these two different types of vehicles.

What Features Should I Look for When Buying Wheels?
First and foremost, wheels are purchased for styling the vehicle. You’ve got to like how they look! Second, decide on the build method and quality. The discussion of manufacturing methods above was intended to inform you of the different ways wheels are made. Choose the manufacturing method you want at the price you are happy with. Finish quality is important; demand a nicely finished wheel. Finally, decide on the price. We realize there are many tradeoffs between the various features and price and that’s why we carry a wide selection of wheels for every budget.

What Does Finish Mean?
Finish refers to the type of surface treatment a wheel is given. Machined or polished finishes are popular on aluminum wheels. “Machined” is what the wheel looks like after the last shaping procedure (usually a lathe cut) has been completed. An additional step involves passing the wheel through successively finer automated and hand polishing processes. This, of course, results in the polished finish. A chrome finish is also available on aluminum wheels, but requires three additional layers of metal treatment (copper, nickel and chrome) to be achieved. Chrome finishing can significantly increase the price of the aluminum wheel. That’s where steel wheels have an advantage; chrome goes on in one simple, inexpensive step. Finally, paint goes on everything and can be applied in single or multiple color schemes. Often the powder coating process is used to apply paint, resulting in a heavy, durable finish. In today’s market, wheel manufacturers combine finish methods in different ways. For example, the popular tuner type designs often feature a silver center and a machined or polished lip. The last step in many styles is to seal the wheel with a clear coat of plastic, making the wheel much easier to maintain.

Should I use a Spacer or Adapter?
The use of spacers or adapters is not recommended. If the wheel does not properly fit your vehicle you should consider a different wheel.

What Are Hub-centric Rings; Do I Need Them?
I Most aftermarket wheels are manufactured with a center hole that will fit a wide range of vehicles. The hub-centric ring is used to fill any gap that may exist between this hole and the vehicle’s hub, thus centering the wheel on the axle. If you have vibrations after installing new wheels, chances are hub-centric rings were not used

What’s the Best Way to Clean My Wheels?
Probably the single biggest mistake when cleaning wheels is to use super cleaners, which can contain harsh abrasives. Mild soap and warm water is sufficient for routine cleaning. After cleaning chrome-plated wheels, you can apply a non-abrasive wax or cream to prevent surface corrosion. If you have clear coated wheels, skip this step. Don’t let tire cleaners come into contact with your wheels; and try not to spray cold water on hot wheels. If you go to the car wash, don’t let them use steam cleaners or strong chemicals on your wheels. To brighten up your polished wheels (no clear coat) use a polishing cleaner provided by the manufacturer; this requires some real work. To sustain this great look, apply some wax to keep the weather out.

What’s the Best Way to Install and Remove My New Wheels?
That’s a job that’s best left to your tire dealer. A combination of special tools and methods are used to install wheels so they deliver the performance you paid for. Initial mounting of the assembly on the vehicle requires positioning and starting the lugs by hand. Next the lugs can be pre-tightened using a hand wrench or torque stick (a tool that ensures a lug is not over tightened). The final torque setting is applied using a calibrated torque wrench. Sounds complicated, but a trained technician gets this done very quickly.

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I Just Hit Something in the Road; How Do I Find Out if My Wheel Is OK?
If you have a vibration or pulling symptom, chances are you may have damaged the wheel. Again, go to the tire dealer and let him inspect your wheels. He will place each assembly on the balancing machine and check for run-out (a hop or wobble). If you have a damaged wheel, get the unit repaired immediately to avoid further problems.

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Cars, planes, retailing, engineering, food and building groups around the world cut earnings forecasts, production or jobs on Friday in one of the gloomiest days of the year so far for earnings and stockmarket confidence.

And there will be more of the same this week (See below).

The announcements from Australia to Brazil, Japan, North America and Europe, are definite signs of the rapidly approaching recession that is going to crunch non-bank earnings 40% or more from current levels, according to equity strategists at Citigroup in London.

The Australian dollar was hammered on Friday, shedding more than 12% in value against the yen and 8% against the US dollar in the biggest single one day fall since floating back in 1983.

It was for no apparent reason.

Citigroup’s team said in a note to global clients last week that ‘History suggests the severity of the coming economic downturn should be greater than normal.

“Recessions following previous periods of financial stress have lasted twice as long as normal. The lost economic output is also greater.

“Earnings Downturn – More severe economic weakness will likely drive a deeper and longer global corporate earnings downturn.

“We believe we are in the early stages of an earnings recession that could last for at least 2 years, with ROEs declining to 8% and EPS falling by 40-50%.

“Global equity valuations suggest investors have already discounted almost all of the expected decline in earnings. Current valuations are back down to 1970s averages.”

“Economic growth is slowing in emerging economies as well. In Asia Pacific our economists believe region-wide GDP growth in 2009 will be the slowest in eight years.

“However, given the current financial crisis is not emanating from their backyard this time, growth should be comfortably above the depths achieved during the Asian crisis.

“The outlook is darker for other emerging economies more dependent on capital inflows.”

Currencies lost ground against the US dollar and/or the yen: the Aussie dollar fell 8% and 12% or more against both currencies respectively on Friday. Copper, oil and most other commodities fell. Only nickel rose on the back of production cuts by the giant Vale group of Brazil, the world’s second biggest producer.

There was evidence hedge funds accounted for some of the turmoil on Friday. They are being forced to sell their stocks, bonds and other instruments to pay off their investors and lenders. Beyond that, investors are increasingly convinced that the global economy is headed for a long, painful recession.

The Citadel hedge fund group reassured investors at the weekend that it had enough liquidity and that Fed inspectors were not talking to it.

But nerves are taut in the hedge fund industry as investors recall their funds, billions of dollars in investments are sold off and the stability of more and more groups is being questioned (around $US200 billion has been wiped off the value of funds in the past few months and a couple of hundred funds of varying types have gone bust, been wound up or cut back business to where they are no longer significant players).

The flight to safety is hurting once-mighty currencies like Britain’s pound. On Friday, worries about how the financial crisis would affect Britain’s economy caused the pound to lose 8c against the dollar, falling to .53.

On Wall Street, the Dow Jones Industrial Average slumped 312.30 points, or 3.6% to 8,378.95, in a volatile session that saw the blue-chip index down as much as 500% at one stage.

The Australian share market wiped billion from its value to end the week at its lowest level in almost four years as the All Ordinaries dropped 107.7 points, or 2.73%.

That was a loss of 3% over the week, which was relative outperformance compared to the sharp falls on Wall Street, in Tokyo and in London. The Australian dollar fell heavily on Friday to close down almost 6% over the week at 62.20 USc.

The South African rand plunged 11%.

Even the 1.5 million barrel a day production cut by OPEC failed to stop oil prices falling in the face of swelling fears of a deep global recession.

In New York the Standard & Poor’s 500 index fell 3.5% and Nasdaq slid 3.2%. Both trimmed steeper falls in morning trading. But there was a sharp fall away in the market right at the end as fund selling again hit prices.

For the week, the Dow lost 5.3%, the S&P 500 lost 6.8% and the Nasdaq fell 9.3%.

So far this month, the Dow is off 22.8%, the S&P 500 is off 24.7% and Nasdaq is down 25.8%, on track for the worst month since the October 1987 crash.

In the S&P’s case, this October could end up being the worst month ever in the post-World War II era.

The trio is down more than 40% since the Dow and S&P 500 hit all-time highs a year ago and the Nasdaq hit a bull-market high.

The Australian SPI 200 futures were 37 points lower at 3840, pointing to a lower start today.

In the US the bad news about banks continued: Authorities in the state of Georgia have shut down a failed suburban Atlanta bank. The Georgia Department of Banking and Finance closed the two branches of Alpha Bank and Trust in Alpharetta on Friday, the 16th US bank to fail this year.

Iceland’s government said it had asked for $US2 billion of support from the International Monetary Fund, the first Western country to do so since 1976; Belarus (next to Russia) joined Iceland, Pakistan, Hungary and Ukraine in requesting at least $US20 billion of emergency loans from the International Monetary Fund to help repay debt.

The IMF reached agreement with Ukraine on a $US16.5 billion loan to help support the nation’s financial system as turmoil in global credit markets and recession concerns roil the eastern European country.

The two-year stand-by loan will be conditional on parliamentary approval of legislation to support the country’s banks. Ukraine will also need to balance the budget and address the current-account deficit.

Argentina, struggling to avoid its second default in a decade, is seeking to raise funds by nationalizing $US29 billion of private pension fund assets, a move that has set off alarm bells in Spain where the country’s biggest banks have huge loans and investments in Argentina (and Brazil and Mexico where the market and currency have plunged).

The IMF said at the weekend that it had tentatively agreed to the Iceland loan and announced it had set aside hundreds of billions of dollars to rescue stricken nations. (According to articles in the Economist and the Financial Times at the weekend, it could finance up to $US250 billion or more in loans and standby credits.)

“The IMF has more than 200 billion dollars of loanable funds and can draw on additional resources through two standing borrowing arrangements with groups of IMF member countries,” the institution said on its website.

The fund is discussing plans to offer so-called hard-currency loans of three to six months at a multiple of the country’s quota of up to five times that figure.

At that suggested multiple, South Korea’s IMF quota of $US4.4 billion, means it could get as much as $US21.8 billion under the program. Mexico might qualify for $US23.5 billion, with $US22.6 billion for Brazil and $US10 billion for Poland.

Iceland Friday became the first western nation to seek aid from the IMF since the UK in 1976. The nation’s economy will shrink as much as 10%. It’s part of a multi group finance package that could total more than $US6 billion.

China, Japan and 11 other Asian nations agreed to set up a $US80 billion fund to fight the credit crunch, The Bank of Japan will be one of those central banks helping fund the Iceland bailout, according to media reports last week, along with central banks in Scandinavia.

More than 40 Asian and European leaders called for an overhaul of World War II-era banking rules.

The leaders “pledged to undertake effective and comprehensive reform of the international monetary and financial systems”, according to a statement issued after the meeting in Beijing at the weekend. Bloomberg quoted Chinese Premier, Wen Jiabao as saying that “we need even more financial regulation to ensure financial safety”.

The US Treasury had planned to announced capital injections into 20 new banks on Friday, but will allow the banks to reveal the deals. PNC got $US7 billion to help in a takeover of a large regional bank based in Ohio.

The Treasury Department was also reportedly studying how it could give relief to bond and mortgage insurance companies under the $US700 billion US financial services rescue package.

And while General Motors has intensified negotiations to buy Chrysler’s auto operations, US reports say it now has plans to seek government support for any deal.

Other news from the car industry was appalling on Friday: truck giant Volvo is sacking over a 1500 more employees after it reported that third quarter orders fell to 115, from more than 41,000 in the same quarter of 2007. It has already cut over one thousand employees.

Chrysler announced Friday that it is sacking 5,000 of its 32,000 white collar employees in the US and Europe as soon as it can as its parent, Cerberus, tries to get a cosy merger deal done with General Motors.

Daimler was reported yesterday by German media to be considering a month long production holiday at all its car factories at Christmas to try and cut stocks of unwanted cars and to avoid starting to lay off employees.

The break in production would begin on December 11 and last until January 12, according to the reports. Daimler, the first luxury car maker to present its quarterly results, unveiled big falls in profits on Thursday and issued a new profit warning for 2009 because of the global banking crisis which has hit Germany and its big US markets very hard.

“The financial crisis is turning into an economic crisis,” Daimler chairman Dieter Zetsche told a telephone news conference on Thursday and it had provoked “in recent weeks a dramatic slump on our major markets”.

Volkswagen says it will make more cars this year, but 2009 is looking gloomy, so it is cutting upwards of 750 contract employees in Germany by not renewing their contracts over the rest of the year. Volkswagen reports its latest financial results this Thursday night, our time.

French automobile giants PSA Peugeot-Citroen and Renault ordered huge production cuts, while Japan’s hi-tech giant Sony Corp and Europe’s biggest airline Air France-KLM issued profits warnings.

Renault has ordered almost all its French plants closed for at least one week and shorter shutdowns in Turkey, Russia and Slovenia. PSA Peugeot-Citroen chairman Christian Strieff said he had ordered “massive” production cuts as the group forecast a 17% drop in car sales in Western Europe in the fourth quarter (after an 8%-plus drop in September).

Air France-KLM shares fell around 9% as the airline not only said that it would be “very difficult” to meet its billion-euro earnings target, but also revealed plans to hack costs by up to 1.2 billion euros, which can only mean job losses.

Toyota confirmed it sold fewer cars in the September quarter than the year before, the first quarterly fall since 2003. Japanese car companies start reporting first half and second quarter results this week with Honda due to release its figures tomorrow night and Toyota a week Wednesday.

Toyota said global auto sales retreated 4.3% in the September quarter, from a year earlier, the first drop since 2001. The stock fell 6.4%. It’s off more than 40% this year and Tokyo as a whole is down more than 50%.

Brazil’s Vale, one of the world’s top three miners, said that Chinese demand for metals was down sharply but that it wouldn’t ship iron ore without a 12% price increase to match prices its Australian rivals were being paid.

But it is cutting nickel production in China and delaying start ups at new mines in Brazil and in New Caledonia, and reviewing other mining operations.

In Britain, official figures confirmed the country was about to enter a recession, with third quarter growth contracting by a sharp 0.50%.

The official figures on Friday supported forecasts earlier in the week of a recession from Bank of England head, Mervyn King and Prime Minister, Gordon Brown.

Japan’s Nikkei index plunged 9.60% on Friday and below 8,000 points for the first time in more than five years.

The close was 7,649.08, a level not seen since April 2003 and just 41 points from the lowest since 1982. Asia’s and Japan’s biggest construction materials group, Taiheiyo Cement Corp, said it incurred a first half loss because of falling demand in Japan. The loss was more than double earlier estimates.

Hong Kong fell 8.3%.

South Korea’s Kospi index dropped 11% on Friday to its lowest close since May 2005. The index fell 20.5% last week, the worst drop since 1987, while the won also slumped.

India’s Sensitive Index plunged 11% Friday, its biggest slump in 16 years, after the Reserve Bank said it will continue fighting inflation, reducing the likelihood of easier lending to bolster growth.

The central bank surprised a week ago with a 1% cut in its key lending rate, but appeared to cast doubt on that on Friday.

European shares had lost up to 10% in early trading Friday in a replay of the horrific Friday two weeks earlier. French shares fell 8.0% early on to finish at five-year lows, off 3.5% at the end. Frankfurt’s DAX 30 index and London’s FTSE 100 were off around 5%.

Sony, a leader of corporate Japan, saw its shares plunge 14% Friday after releasing forecasts of a lower profit on Thursday night. Sony has a board meeting in Tokyo this week to consider cuts.

ArcelorMittal, the world’s biggest steel producer, shut smelting furnaces on a temporary basis in France, Germany and Belgium, according to union chiefs who met with management. It is reported to be reviewing its $US35 billion global expansion plan.

US figures show that 19 of the country’s 25 steel blast furnaces are either going to close or be shut down for varying periods of time, so great has been the drop in demand in the past two months, especially from the car industry.

Timken, the world’s biggest ball bearings maker, has slashed production and earnings forecasts because of falling demand from the car and construction machinery sectors (Caterpillar).

Timken blamed the cut in its fourth-quarter profit guidance on “the timing of certain raw-material cost recoveries and lower automotive industry demand”.

In other words demand is now weakening so fast that it can’t put prices up to try and recovery the earlier surge in steel costs during the year.

Spain’s unemployment rate jumped to 11.33%, a four year high, as the collapse of the housing and construction sector throws more people out of work. The worries about Brazil and especially Argentina are going to take their toll on Spain’s previously solid banking sector.

New figures meanwhile showed Britain’s economy shrank by 0.5% in the three months to September, compared with the previous quarter, marking the first contraction since 1992.

The UK economy slammed to a halt in the second quarter with zero growth and the slump accelerated into the red as unemployment surged, home sales, construction, industrial output and retail sales plunged and inflation rose.

IMPORTANT: AIR reports about financial markets and investment products in the widest sense possible. The AIR website and all its contents is prepared for general information only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore talk with their financial planner or advisor before making any investment decisions.

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3 Important Issues in Planning a Secure Retirement

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3 Important Issues in Planning a Secure Retirement

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1.28.2009 – Jim Lange’s Top 3 Lessons for Planning a Secure Retirement

Listen as Jim Lange defines 3 important issues in a planning a secure retirement including the importance of Safe Withdrawal Rate, Roth IRA Conversions and Required Minimum Distributions for those turning age 70 1/2.

Welcome to The Lange Money Hour: Where Smart Money Talks. Hosted by Beth Bershok with expert advice from Jim Lange Pittsburgh based CPA, attorney, and retirement and estate planning expert. Jim Lange is also the author of Retire Secure! Pay Taxes Later. To find out more about his book, his practice, Lange Financial Group, and how to secure Jim Lange as a speaker for your next event, visit his website at paytaxeslater.com. Now get ready to talk smart money.

Beth Bershok: We are talking smart money and we are going to have some great information for the next hour. Listen, I have to say I’m excited to be helping to bring you this information because it is coming from an incredible source. Jim, frankly, I do want to do some of your credentials, but the list is so long that we could be here for the next hour if we just talked about your credentials. So let’s do the cliffs notes version. You are a CPA, you are an attorney and how long have you been practicing in Squirrel Hill?

Jim Lange: For 30 years.

Beth Bershok: 30 years and you have a national niche. A lot of people have been coming to you for Roth IRA information and Roth IRA conversion information around the country and we’re going to be getting to that. You are also an author and this has been a really exciting week at this office because the second edition of your book Retire Secure! Pay Taxes Later is about to come out. It really is going to be in local book stores on February 9th, that’s when you can find it at the area book stores. But, it’s getting great reviews already. Your first one was a bestseller on Amazon.com and number one in many categories. The second edition, you have to tell everybody about some of the testimonials that have come from the second edition because it’s amazing.

Jim Lange: Well we have been fortunate. Charles Schwab, Larry King, Ed Slott and Jane Bryant Quinn and about 60 other financial advisors.

Beth Bershok: Yeah just about 60 others. You also have something and explain this. You just founded this, the Roth IRA Institute and explain what that is.

Jim Lange: I think Roth IRA conversions are going to be extremely beneficial and particularly for years 2009 and 2010 is going to be the huge year for high income earners. I thought the information was so critical that I actually set up a separate company to educate both consumers and advisors on some of the best Roth IRA conversion strategies.

Beth Bershok: So 2009 is a busy year for you. You have the book, you have all this national speaking and we’re launching the national radio show through 2009. I do want to say before I get to what we’re going to cover in the next hour. We will be taking questions this hour so if you have a question feel free to call in. The studio line is 412-333-9385. I do want to mention too, we have a very big seminar that’s going to be coming up in a couple of weeks all about Roth’s, and keep in mind that during in the next hour we’re going to give you some information on how you can be a part of that. So I’ll be giving you a number and we can be getting people registered for that, but that’s coming up in a couple of weeks. Now, what we’re going to cover tonight, the past couple of months frankly financially have just been brutal and recently everybody got their year-end statements. I’m sure that was not a happy day in most households and I think what’s happening is a lot of people are taking the attitude that, there really just isn’t anything they can do. It’s out of their control but in fact that’s not true and you have put together Jim Lange an entire list of strategies – things that you can do now to protect your retirement. Explain to everybody who this whole list got started.

Jim Lange: Well first of all I think there’s certain things you can’t control. But there are things you can control and Jason Zweig from the Wall Street Journal gave me a call and he said he wanted to do an article on what people who are approaching, or people who are already retired should do proactively to ensure their retirement. I put together a list and he actually did an article based on a couple of the items from the list. But what I thought that what we could do as a start is go through some of the things that I think are very critical, and then hone in one or two of those that I think might be the most interesting for the audience.

Beth Bershok: Ok so let’s go through the whole list first. These are things that you actually can do, proactive steps that you can take now.

Jim Lange: Right, one of the most important things that I don’t hear a lot of people talking about but I would say it is a cornerstone of sound financial planning is the Safe Withdrawal Rate. Now what the Safe Withdrawal Rate means is how much money as a percentage of your portfolio you can spend every year, and within a reasonable amount of certainty, never run out of money. So let’s say for discussions sake to pick a nice round number – You have a 0,000 portfolio and depending on your age and depending on your life-expectancy. Let’s even take a very, very Conservative Safe Withdrawal Rate of 4% and we can talk about the details of how you get to Safe Withdrawal Rates. But basically you could take 4% times the 0,000 and you only get ,000 a year so you’re really not getting a whole lot of income from that. So there are a lot of people who perhaps had a much higher portfolio, lost say 30% or 35% or even more in the recent downturn and for some of them, they have to actually rethink what is an appropriate amount to spend. Now of course you can add Social Security if you have a pension, sometimes you can even consider using some of your real estate. But that’s one thing that I like people to hone in on is, are they spending an appropriate amount of money for their portfolio. Before the downturn I actually had a lot of clients, in fact I’d say the majority of my clients were spending less than the Safe Withdrawal Rate and would actually encourage them to spend more.

Beth Bershok: Really? That had to be tough! Please spend more! We have a lot of other things on the list too though. We spend the right monies first which is one of your strategies for something you can do now to secure you retirement, and spend the right monies first – frankly it’s critical.

Jim Lange: Well what that is, let’s assume for discussions sake you are retired. I’m going to simplify it – you have two pots of money to spend. Money that you have already paid tax on and money you have not. So, the money that you have paid tax on, it might be investments, it might be savings. The money that you haven’t paid tax on would be IRA’s, retirement plans, 401 (k)’s, 403 (b)’s. In general subject to exceptions, it is better to spend the money that you have already paid tax on. So that’s important to spend the right money first. The other thing that some people should consider is annuitizing and I’m not talking about a tax deferred annuity, but rather an immediate annuity which is similar to a pension plan in that you give the insurance company a chunk of money, and they give you a stream of income for the rest of your life in return. Of course one of the things that’s a little bit more questionable now is the security of the insurance company. Something that we more a less used to take for granted but now that we can’t. The other thing that is probably my favorite area of proactive action that people can take are Roth IRA conversions.

Beth Bershok: And we’re going to get back to that because there’s so much information to cover in the Roth IRA conversion – there’s just a ton of information on that one. So let’s come back to that one because we have so much to explain with the Roth IRA conversion. Let’s go through the rest of the strategies that you were talking about when you were talking to Jason from the Wall Street Journal.

Jim Lange: One of the other things that I always like to think about is the safety of your money and even though, I’m actually not only talking about for investment purposes, but actually for creditor protection, and IRA and retirement plan money is safer than money outside retirement plans, but there’s even different degrees of safety within retirement plans. An ERISA plan such as a 401 (k) plan is actually safer than an IRA. Many people have IRA’s and what I am suggesting to some of my clients, who actually perhaps have some self-employment income even in retirement, is to start their own one person 401 (k) plan and then have a trustee-to-trustee transfer of money coming from an IRA to their one person 401 (k), and that has several benefits, but one of the most important is creditor protection.

Beth Bershok: And this is a new strategy?

Jim Lange: This is a brand new strategy. This is actually one I came up with and the benefits of having a one person 401 (k) over an IRA are actually two-fold. One is the safety in terms of creditors; the idea is you get the ERISA protection. As an example OJ Simpson, his money is protected because it is in an ERISA plan. That’s why when they had multi-million dollar judgments against him they couldn’t get his money because it was in an ERISA plan. Now, I’m suggesting that a lot of listeners if they have some type of self-employment income and sometimes you can even create self-employment income. Maybe you do some work for your kids if they’re working, maybe you help out at the golf course, maybe you do something where you have a little bit of earned income. You create your own person 401 (k) then you can roll your IRA into that one person 401 (k) that has the advantage of better creditor protection. The other thing is, if you die your heirs can make a Roth IRA conversion of an inherited 401 (k).

Beth Bershok: Which we will get to because that’s a very cool strategy.

Jim Lange: Very cool.

Beth Bershok: I do want to say too this one person 401 (k) which is your new strategy is in the book. It’s in the second edition of Retire Secure! which will be in local bookstores on February 9th but that is totally covered in a chapter in the book. OK after one person 401 (k) you have something called rebalancing.

Jim Lange: Right, rebalancing is probably an important strategy and it’s counter-intuitive because let’s say you just lost money in the stock market. Rebalancing would actually, depending on the portfolio allocation, would actually have you put more money in the stock market now. It’s completely counter-intuitive, but the idea is that you want to buy low and sell high which is what rebalancing does achieve.

Beth Bershok: Would you say rebalancing is sort of like the old adage, don’t put all your eggs in one basket, is that sort of a similar thing?

Jim Lange: That’s part of it but, also let’s just also say for discussions sake that you’re a believer in 50% stocks and 50% bonds and that’s what you had lets say at the beginning of the year. Well now your bonds are going to be much higher in terms of percentage than your stocks. So, rebalancing them would be taking some of the money you have in bonds and putting it into the stock market which really goes right against what most people likely to feel comfortable with.

Beth Bershok: Now we do have a few more items on this list that we’re going to get to in just a minute. But we want to take a break, it’s The Lange Money Hour: Where Smart Money Talks. And by the way if you want to check in live studio line is 412-333-9385.

Beth Bershok: Before we get back to The Lange Money Hour: Where Smart Money Talks I did want to say Jim Lange you have a personal experience with that group too. So if you want to quickly touch on that because it’s been going well.

Jim Lange: Well I have some responsibility for taking care of my mother and when I learned about the group I frankly love the idea for my own mom and Pearl did go out to her, and my mother isn’t exactly the easiest person for this type of service. But they got on splendidly and she’s a real professional, her experience is very obvious and they’re taking is one step at a time. We’re starting with a couple of adjustment in her apartments and she’s now going to get a ride to the JCC so she can exercise a couple of times a week.

Beth Bershok: Oh that’s excellent. So their number is 412-422-0400. The Lange Money Hour: Where Smart Money Talks. I’m going to just recap this, this was a list that Jim Lange started. Jim Lange Lange from Lange Financial Group in Squirrel Hill. Did I point out that you were in the Wall Street Journal 30 times? Did I mention that because that’s pretty impressive. His 30th time was in December and he was talking to Jason Zweig, the reporter. He came up with this list of proactive things you can do now to protect your retirement and this is what we’ve covered so far: safe withdrawal rate, spend the right monies first, annuitize, Roth IRA conversion which we’re going to get back to because that’s a huge topic, one person 401 (k), rebalancing and that brings us to increased FDIC limits for bank accounts.

Jim Lange: Right, one of the ideas for a lot of people who are interested in safety of principal and they want money in CD’s, and they want guarantees. Even though the accounts are now insured for 0,000 that number will go back down to 0,000 in January 1st 2010. So, what I think a lot of people should do if they want additional safety is actually change the name. So, consider In-trust for account to maximize the FDIC guarantee which I think is a very sound thing for a lot of conservative investors.

Beth Bershok: Ok and we’re onto continuing contributions to retirement plans. How exactly would this work? You’re talking about people who are retired. How do you keep contributing?

Jim Lange: Well, technically if you are retired you actually can’t do it. I always refer back to the example where some people are quote retired from their main job might have some type of self-employment income and they can make retirement plan contributions. But even if you are working and this is really critical, a lot of people think oh man and the market’s down, I don’t want to keep contributing to my retirement plan. And I would say the exact opposite. Now is a great time to contribute to your retirement plan and again we’re going to talk about the Roth 401 (k) and the Roth 403 (b) but in general the idea, of all my clients and all through the years the most solid ones and the ones who (except for the entrepreneurs), the ones who have really done the best are people who have regularly put money into their retirement plans on good years and bad years, and I cannot stress how important that is. To consistently put that money, preferably the maximum into your retirement plan.

Beth Bershok: Now the last piece before we get back to Roth IRA conversions. We’ll trust an IRA beneficiary designation review. How often should you do that?

Jim Lange: It might depend on what type of plan you have. With the Lange’s Cascading Beneficiary Plan…

Beth Bershok: Oh we haven’t even touched on that! That’s a big one too! Ok.

Jim Lange: That is a big one. That is I would say the most flexible estate plan and if that is already installed, the need for reviewing and changing your wills is not that often. With the traditional plan where you have decided in advance who gets what and it can really work out badly. So those types of plans should be reviewed quite frequently.

Beth Bershok: So how would you know if you have one of those plans. How would you know?

Jim Lange: One of the problems is a lot of people don’t know what they have, they literally don’t. Now hopefully the attorney actually sent a letter with the will explaining in English what is in the will.

Beth Bershok: Which is kind of important.

Jim Lange: Well it actually is. One of the things that we do in our law office is we actually write a letter in English telling people what their will says.

Beth Bershok: Which I’m going to guess knowing the staff that it’s pretty explanatory.

Jim Lange: Our letters are good, but I can’t tell you how many news client I get. They do not know what is in their will and a lot of them have and I call it the cruelest trap at all – which is money going into a B Trust before it goes to the surviving spouse. So, the client comes in says the most important thing that you need to do Jim Lange, or this is actually to another attorney as I don’t use the traditional wills, is I want you to take care of my spouse. But what does the attorney do? They set up all these trusts that are meant to save estate taxes and what happens very often and with the exemption not going up is you can have a situation very commonly where the surviving spouse instead of having unrestricted access to their money, they will have the money in trusts where they can only get the income and the right to invade principal for health, maintenance, and support. So the flexible plan is much better and that is something that should be reviewed. What typically, the clients that we have who we have already done this Lange’s Cascading Beneficiary Plan is, the reviews tend to be a strategy review, not a we have to redo your will review. If on the other hand, people come from other law firms or other situations and they have the traditional plan, a lot of times it’s not well-suited for them then we will institute Lange’s Cascading Beneficiary Plan for them.

Beth Bershok: But if they don’t know what they have they should probably take a look at that at some point. And you know what I’m going to toss out the office number for that 412-521-2732, the plan in the long run gives your survivors all of the flexibility which is extremely important.

Jim Lange: Yeah. If you see language in your will which is basically incomprehensible and it talks about amount needed to maximize the marital deduction and a bunch of things you really don’t understand. What ultimately that means is that the first ,500,000 of your estate is going to go into a trust that is going to have limited access for your surviving spouse. So that’s a terrible thing, just think about it. When the husband and wife are alive together, together they have access to all of their money. If one of them dies and the estate is less than ,500,000 with one of these traditional wills, you can actually restrict the surviving spouse to health, maintenance, and support and income.

Beth Bershok: And at that point there’s nothing you can do about it?

Jim Lange: Well you can do something that isn’t 100% kosher but yeah that’s right. The trustee is legally obligated to meet the terms of the trust.

Beth Bershok: This whole plan, Lange’s Cascading Beneficiary Plan™ is also part of the book, it’s also in Retire Secure and it explains it pretty comprehensibly in Retire Secure!. So really if you want to take a look at that plan too I would suggest getting a hold of the book. The new edition is going to be out on February 9th. We are going to take a quick break. When we come back we’re going to get into the Roth IRA’s and Roth IRA conversion. It’s The Lange Money Hour: Where Smart Money Talks.

Beth Bershok: The Lange Money Hour: Where Smart Money Talks. We’re with Jim Lange who has been practicing in Squirrel Hill for 30 years. Literally though nationally renowned and he’s been speaking nationally for years. He’s a CPA and an attorney and author of Retire Secure – second edition don’t forgot is coming out on February 9th. We went through this list Jim Lange, of strategies you put together, proactive steps you can take because really everyone has been nervous for the past few months. These are proactive steps you can take to make sure that your retirement will be secure. The big one, is it your favorite? The Roth IRA conversion I’m guessing. The Roth IRA and Roth IRA conversion, we have to take these in steps here. So the first thing is explain what a Roth IRA is. A lot of people have traditional IRA but there is something called the Roth IRA. What is the difference?

Jim Lange: The difference is with a Roth IRA you have income tax-free growth where as opposed to with a traditional IRA you have tax-deferred growth. With a traditional IRA, 401 (k), 403 (b) – all of these types of retirement plans work basically the same where you and/or your employer make a contribution to the retirement plan. You get a tax-deduction for that or look that at another way – you don’t pay the income tax. The money grows tax-deferred that is you don’t have to pay taxes as the money continues to grow and accumulate. But when you or possibly even your family take withdrawals from that then you are going to have to pay tax, or even your heirs are going to have to pay tax on the withdrawals. With a Roth IRA you don’t get the income tax deduction upfront but the money grows income tax-free. The best way I like to think about it is, with the Roth IRA you actually get the seed if you will tax-free and you get to the reap the harvest tax-free, where with the traditional IRA you get a deduction for the seed but you reap the harvest and have to pay tax.

Beth Bershok: Now there is as we speak an income limit. There has been up until now and we’re going to get to that but some people currently don’t qualify.

Jim Lange: Well that’s right. If we’re going to oversimplify, for married people if they are earning over 6,000 they make too much money to make a contribution to a Roth IRA. If you make less than that there are depending upon your age also, you can either put ,000 or ,000 that is if you’re 50 or older, you can put ,000 for yourself and your spouse so this is money going into a retirement plan. Now the one requirement is you must have earned income of at least that much to put it in. So retirees can’t put money into a Roth IRA in terms of fresh new money, but of the course, the really exciting thing is going to be Roth IRA conversions.

Beth Bershok: Oh I know you love it! You love Roth IRA conversions! We’re going to get to that in a second but I just want to back up on just the Roth IRA for a second, because you actually when this started a decade ago, you were at the forefront really of Roth IRA’s. I should tell people that your expertise goes back a decade because you wrote the first major peer reviewed article for Roth IRA’s, it was in a publication called the The Tax Advisor and the reason why that’s so special is because all of these really, really picky CPA’s from all over the country are looking at it, and they read it and said Yeah that’s right, that’s a good analysis.

Jim Lange: In 1997, I usually pretty much ignore proposed regulations because I get them mixed up with what’s actually passed. But 1997 when they had the proposed changes that allowed Roth IRA’s even more importantly for my purposes Roth IRA conversions, I knew that was going to be huge and I went to the AICPA and I said I’d like to write the peer review article on Roth IRA conversions and frankly they didn’t understand how powerful this was and how many IRA owners could be tens of thousands and heirs hundreds of thousands even millions of dollars better off. So we ran the numbers and I’m sometimes accused of being a real Roth fan – I’m really into Roth IRAs! and I would actually say what’s more accurate is that I am a numbers runner and I like to do objective analysis, and when you compare the benefits of the Roth IRA conversions which I did in this article and have since subsequently updated, it’s just a tremendous value to the family. So that’s what I’m into, the most purchasing power for family members and this why the Roth IRA and Roth IRA conversions work so well because of the income tax-free growth.

Beth Bershok: But can we touch on that for a second because, how long can this actually grow income-tax free? How many generations can you go?

Jim Lange: Well it can actually go for your life and the life of the heir that you name. So I’ll just give you a personal example from my life. In 1988 our office suffered a fire, we were actually above a pizza shop, never have an office above a restaurant! So on February 16th I was out on the street and I will tell you we made a lot less than 0,000 that year because the insurance didn’t come through till the next year. So, we were under 0,000 which is a normal limitation on how much on whether allowed to convert. So now we were allowed to convert. So my wife and I together at the time had 0,000 in traditional retirement plans. She’s a smart lady, she has a Masters in Electrical Engineering and even though she’s a little bit conservative went through the numbers and I showed her and she agreed, Yes we’re going to make a Roth IRA conversion. The original purpose of the Roth IRA conversion was for us to be able to have income tax-free growth on that 0,000 that we would presumably tap into later after we were retired. Well it turns out, hopefully if things go very well there might be enough money for us to live comfortably without having to go into that money. If that is the case, it is possible that rather than us taking the money out and remember with Roth IRA’s and Roth IRA conversions there’s no minimum required distributions. That money might go to our daughter. Now our daughter was 3 years old at the time, we were I guess 42.

Beth Bershok: So now everybody just chalked that up – they just did the math real quick.

Jim Lange: Anyway, our daughter might end up getting that money so we could end up having tax-free growth for our daughter’s life and if she lives till in her 80s or 90s we can have that money years. Now, in the event that she has children and she doesn’t want or need a portion of that money and that money goes to her children, we could end up with 120 years of income tax-free growth.

Beth Bershok: That is incredible.

Jim Lange: Now not everybody might get that many years because we’re a little bit of an older parent and we have a young child but even if you’re just one generation older you can still often get 50 years.

Beth Bershok: And the heirs don’t have to pay taxes, they’re paid up front?

Jim Lange: No, it’s literally an income-tax free dynasty. Not that many people really understand how powerful this is and in a few minutes I hope to get into the…

Beth Bershok: Oh don’t worry we’ll get to the conversions.

Jim Lange: …to the Roth IRA conversions.

Beth Bershok: Yeah. It’s The Lange Money Hour: Where Smart Money Talks. This is Jim Lange, CPA, attorney and author of Retire Secure!, practice in Squirrel Hill. I do want to give a studio line to you because if you have questions we are happy to take those 412-333-9385 if you have a question tonight we’re going to be here until 8 o clock so you can call 412-333-9385. Ok, I know your dying to do this. So let’s go to the Roth IRA conversion and the big news is 2010.

Jim Lange: The big news is 2010 and the reason for that is because a whole slew of people, specifically people who have modified adjusted gross income of more than 0,000. So basically high income earners have never been allowed to make Roth IRA conversions up to now. So I have friends for example who work with very high income clients and Roth IRA conversions aren’t even on their radar, they’re not even thinking about it, it’s just not even something that is in their paradigm and if they don’t wake up their going to really miss out what could be a fabulous opportunity because in the year 2010 all the income limitations go away. So, regardless of your income you can make a Roth IRA conversion and the issue of when to convert and how much to convert is still something that people have to face but the fact that they will have the opportunity to make a Roth IRA conversion – the numbers are staggering. For example, even taking a relatively small amount to convert say 0,000, the client themselves in 20 years will be over ,000 better off using a bunch of assumptions that I’m not going to get into. Their children can be better off by maybe even ,000,000 and the grand-children could be several million dollars better off.

Beth Bershok: Are those in today’s dollars?

Jim Lange: In today’s dollars it’s not quite so much. On the other hand, the grand-child can be better off by 0,000 in today’s dollars if grandma or grandpa make a 0,000 Roth IRA conversion, and for some people who have significantly more than 0,000 the numbers can be that much more. The other thing that’s really powerful about Roth IRA conversions, unlike life insurance, life insurance might be great for your heirs but in the meantime you’re the one paying the premiums. Roth IRA conversions are actually good for the people making them. Now, of course there’s limitations and it’s not going to work for everybody and you have to take into consider tax brackets, and I’m not saying that Roth IRA conversions are a panacea and that everybody should do Roth IRA conversions. But I think that virtually every IRA and retirement plan owner should consider it and see if they are a good candidate for the Roth IRA conversion.

Beth Bershok: But let’s just back up on the conversions for a second. We talked about this a minute ago, with the Roth you have to pay the taxes up front . So, what if you don’t have the taxes to pay up front. I mean lets say that you’ve always wanted to do a Roth conversion, you never qualified before, 2010 comes along you want to do the conversion, but you just don’t have the available cash to pay the taxes. Then what would you say?

Jim Lange: Well that’s actually relatively common. In certain professions and actually I have a lot of clients like that. The example would be, lets say you have a couple who gets married you know maybe back in the 40s or something like that and they’re hard working people, and they have a mortgage and they have car payments, they pay for their kids braces and they pay for their kids college and its really hard for them to save money. But they’re kind of prudent fellows and ladies and they put the maximum into the retirement plan and the employer puts in. So now today maybe they’re 60, 70 or 80 years old. They have sometimes a lot of money in their retirement plans, but not very much money outside their retirement plans. They are not as good as candidate to make a Roth IRA conversion as people who have money both money inside and outside their retirement plan. It still might make sense to do maybe perhaps a smaller amount if you don’t have the money to pay the tax. It might actually end up that there is no advantage at all

Beth Bershok: So really at some point what you need to do is run the numbers. You need to see how much is makes sense for you to convert, when you should do it. That’s all part of the plan with the Roth IRA conversion.

Jim Lange: I actually think that virtually every IRA and retirement plan owner should have a long-term IRA plan even if you’re working. We haven’t even got into the contribution mode where you are putting money and now you can have a Roth 401 (k). But I actually believe most people should have a long-term Roth IRA and Roth IRA conversion plan.

Beth Bershok: I want to give a number here because this is important. There’s so much information about Roth IRA’s and Roth IRA conversions and we’re going to be doing a seminar coming up on February 14th. We are currently taking reservations for that so let me toss out the number. This number answers 24/7 so you can actually call tonight and get signed up for the seminar. It’s two seminars, February 14th – it’s the same topic so you can attend either one. 9:30 to 11:30 in the morning or 1:00 to 3:00 in the afternoon. These are both are Crown Plaza South which is the hotel right across from South Hills Village. So if you call this number you can sign up – it’s free. Jim Lange is going to give you all of this information. At this point we’re really just touching the surface, I’m serious because Jim Lange does 2 hours of Roth information in this seminar and that number to register, it’s toll-free is 1-800-748-1571. Again this is coming up on February 14th, you’ll need to tell us whether you want to go to the 9:30 one or the 13:00 one. But at any rate you’re going to get all this information with Jim Lange in person on that date. So sign up for the seminar 1-800-748-1571. We do want to talk some more about Roth conversions and we will do that in just a minute. The Lange Money Hour: Where Smart Money Talks.

Beth Bershok: The Lange Money Hour: Where Smart Money Talks and Jim Lange will all kinds of advice tonight on how you can keep your retirement secure. One of those strategies involves Roth IRA conversions and we do have a lot of other things that we want to cover. But I want to touch Jim Lange, just for a minute or so on Roth IRA conversions; we’re talking about wow how great they is, This is a great strategy, tax-free growth for generations. But there’s got to be some sort of risk and we should touch on that. What could go wrong potentially with a Roth conversion?

Jim Lange: Well actually there are a couple of things that could go wrong. In fact, this actually happened last year. You can make a Roth IRA conversion and then the underlying investment goes down. So let’s say for discussion’s sake in 2008 early in the year you made a 0,000 Roth IRA conversion and now that Roth IRA let’s say ,000 and you’re not feeling too good about it because you paid tax on 0,000 or planning to pay tax on a 0,000 and now it is only worth ,000 or perhaps even less – that isn’t a wonderful feeling. The answer to that is you can re-characterize or undo a Roth IRA conversion. So what we are doing, we actually went through all the tax returns of all our clients who made a Roth IRA conversion in 2008 and were notifying them and saying Hey, you might consider undoing or re-characterizing that conversion and you have until October 15th of that year after you convert to make that conversion. So let’s say for discussions sake you’re making a conversion in the year 2009 you would have until October 15th 2010 to undo it. So that’s one thing that could happen that would go wrong, that is the investment tanks. The other things that could potentially happen is that there could be a change in the tax laws. What change would really be terribly, make it a bad decision would be the elimination of the income tax.

Beth Bershok: Not really counting on that happening anytime soon.

Jim Lange: Probably not but if we end up switching to a Value Added or Sales Tax then making a Roth IRA conversion would probably be in retrospect make a mistake. Let me tell you something that I don’t fear that a lot of other people fear. A lot of people fear that they’re going to change the law and they’re going say Well, we’ve decided that we’re going to tax Roth IRA’s after all, and a lot of people say Those rascals in Washington – I remember Social Security, we never supposed to pay tax and we’re paying tax on our social security and how do we know that they’re not going to do the same with the Roth IRA’s?

Beth Bershok: I’ve heard that actually I have

Jim Lange: That’s a very legitimate objection and the answer to that is that is was never part of the Internal Revenue Code that you would never pay tax on Social Security. The legal word is dicta which means Not Legally Enforceable Language that politicians used. On the other hand, with the Roth IRA’s and the Roth IRA conversions is actually part of the Internal Revenue Code that this money is going to grow income tax-free so I’m not really worried about something like that. Now, what do I think is a more likely change in the tax laws? Do we think that in the next 5, 10, 20, 50 years tax rates are going to go up or come down? If they go up, which is frankly what I would expect then the benefits of the conversion are going to be even greater than some of the numbers I have been talking about.

Beth Bershok: I want to ask about 2010 because we talk about how 2010, the income limits are disappearing and this is a huge opportunity for wealthy taxpayers to make a conversion. How long is that going to last? Is that 2010 and ’11 and ’12 and on and on and on? Is there a time limit on this?

Jim Lange: There isn’t a time limit but 2010 is a good year for a couple of reasons. First you actually get to recognize the income in 2011 and 2012 if you choose. So let’s say you make a 0,000 conversion in the year 2010. If you want to you can make an election to recognize ,000 in 2011 and ,000 in 2012. It is not part of the law that this ability to make a Roth IRA conversion will stop. On the other hand, I think if the government starts to pick up and realize how wonderful this can be …

Beth Bershok: Hasn’t anybody noticed that yet?

Jim Lange: People are saying oh well maybe Barack is going to change it when he recognizes that people can create income tax-free dynasties. The reason why I don’t think it’s going to change between now and 2010 is because here billions of dollars are going to be coming into the IRS and congress is going to have access to it, and it’s already on the books. So he would actually have to reverse that and I can’t see either Barack or Congress today saying no, we don’t want all that money that we’re planning to get in taxes. We’re going to change it so we don’t get the money. So I think its going to be available for us.

Beth Bershok: Can you actually foresee a time later down the road. Say 2012, 2013 where they re-think the Roth IRA’s with the income limit?

Jim Lange: I think it’s very possible that we’re going to have changes in the future but here’s the thing. If you get in the system now then I think that the money that you get in the system, whether it’s a Roth IRA or a Roth IRA conversion or (we haven’t talked about it yet) the Roth 401 (k) that money will be grandfathered.

Beth Bershok: So really 2010 is an exceptionally good year to make a conversion, but you’re going to definitely get in on it.

Jim Lange: It is and that’s particularly for people who have incomes of more than 0,000. The other thing that we didn’t touch on.

Beth Bershok: Uh-oh! What did we not cover?

Jim Lange: It might not be on your list, but I know that there are people in our audience who are 70 and older.

Beth Bershok: We should touch on this, no we really should. This is brand new and this really just happened. So explain this, this is a great strategy.

Jim Lange: A lot of our viewers know that the minimum required distributions that people who are 70 and a half and older have to take from their IRA’s and retirement plans are suspended for 2009 which is a great thing. So, let’s say for discussions sake that you’ve been in the position where you have to take money from IRA. You don’t even particularly need the money, but you have to take the money and pay taxes on it. Well, very good news you don’t have to take the money this year for 2009, you don’t have to pay taxes. I suspect the majority of people say thank you very much, I’ll have a low tax year goodbye. What I’m saying is for a lot of retirees in that situation, if you think about it you’re going to be in the lowest tax bracket that you have ever been or that will ever be in your life because today the rates are relatively low, and next year and in future years you’re going to have your minimum required distribution that’s going to be added to your income. With 2009 being a 1 year opportunity of the lowest tax rates that you’re ever likely to be in, that to me spells great time to make a Roth IRA conversion.

Beth Bershok: But surely that’s not what they anticipating when they suspected the RMD’s.

Jim Lange: No, I actually think that that was an unintended advantage to people who proactively take advantage of it. I have not seen it in the literature or anywhere, except from reporters and news sources that have quoted me.

Beth Bershok: Actually reports have been calling you about that.

Jim Lange: Oh yeah, now it’s all over the place it’s been in a lot of the magazines.

Beth Bershok: Last week you had an interview with Money Magazine. Did you cover that RMD suspension Roth IRA conversion?

Jim Lange: Yeah, we did it with Money Magazine, we did it with Business Week, we did it with The Wall Street Journal. It’s all over the place now.

Beth Bershok: Well actually we should say watch for the March edition of Money Magazine because that’s, you cover that, that was the interview you had last week and it’s supposed to be in the March issue so look for that. Unintended but a huge bonus for 2009.

Jim Lange: But it does require you proactively doing something. If you just sit there and do nothing, yes you’ll have a lower tax bill, but you wont have the opportunity to make a Roth IRA conversion at a very low income tax rate.

Beth Bershok: And all of these things we are talking about Jim, Jim Lange with The Lange Money Hour. This is not something I don’t think you should attempt to do on your own – you need to see an advisor. You can say ooh this sounds like a great idea, but I think you need to have somebody take a look at it.

Jim Lange: I think you do and unfortunately even sometimes after people go to my seminars if they don’t come in and see either myself or somebody in the office they sometimes do something, or they misinterpret something and do something that really isn’t optimal. The advantage literally measured in hundreds of thousands, millions of dollars is so enormous compared to the amount of time and the amount of money you would have to pay to get this expertise. It usually does make sense to get somebody who knows what they are doing in the IRA and the Roth IRA world.

Beth Bershok: I know you want to talk about Roth 401 (k)’s too and we’re going to do that in just a second. But I want to give you the phone number to register for the Roth seminar again because this is the kind of information that Jim Lange is going to be covering in the Roth seminar. We’re going to be doing that on February 14th Crown Plaza which is directly across from South Hills Village. Two choices, you have two choices on times. It’s going to be the same seminar 9:30 to 11:30. Second one in the afternoon is 1:00 to 3:00 and we’re inviting everyone to attend for free. You can sign up tonight actually, this number will answer 24/7 it’s 1-800-748-1571, call and get registered just make sure you tell us what time you would like to attend. 1-800-748-1571. When we come back we are going to touch on Roth 401 (k)’s which is something relatively new. It’s The Lange Money Hour: Where Smart Money Talks.

Beth Bershok: The Lange Money Hour: Where Smart Money Talks. Expert advice coming from Jim Lange and this hour is flying by isn’t it? We’re down to 9 minutes, that’s all we have left! We do want to cover Roth 401 (k)’s. I want to give you number because this is the studio line and we literally just have 9 minutes left. So if you want to squeeze in a question here in the end we’ll be happy to take it. 412-333-9385. But another strategy, we talk all of the time about Roth IRA’s, Roth IRA conversions. But there is something called the Roth 401 (k) which works in a similar fashion. Explain that and it’s relatively new.

Jim Lange: It is relatively new and the Roth 401 (k) you actually need two things. You need to have earned income and you need to be working for somebody that has a Roth 401 (k) component to their 401 (k). So let’s just say for discussion’s sake that you’re working for a company and you’ve been in the 401 (k) plan for many years. You’re interested in the Roth IRA’s, you’d love to have some money grow income tax-free. The limitations on 401 (k)’s are now, you can put ,500 if you or even ,000 if your 50 years or older. Sometimes wouldn’t it be nice to have ,000 going into a Roth 401 (k). A) You obviously need to be able to afford the contribution which would be withheld from your paycheck. But B) You’re employer must offer the plan. And that’s going to be the biggest downturn or the reason why some people can’t do it because their employer’s don’t offer it. In our firm we actually have 10 people who are participating in our retirement plan. They have the choice whether their money goes into a tradition 401 (k) or a Roth 401 (k). The other thing is that they can mix and match – they can do a bit of each. The employer’s share is always the traditional 401 (k) but the employee’s share will have a choice of traditional or Roth. Now what also applies to the 403 (b) world. If you are a university faculty member or perhaps a hospital worker, or you work for some other type of non-profit entity, you have likely had access to a 403 (b) plan you might want to check if your university or employer offers a Roth 403 (b) plan. I know the University of Pittsburgh have just added a Roth 403 (b) component.

Beth Bershok: And how long has the Roth 401 (k) and Roth 403 (b) been available?

Jim Lange: It has been available for a number of years, but when it first came out it was temporary so a lot of people thought well, we better not do it because they might undo it, and now it has become permanent.

Beth Bershok: My main question on the Roth 403 (k), Roth 403 (b). We know that there are income limitations for the Roth IRA are there the same limitations in place for the Roth 401 (k).

Jim Lange: No there’s actually no limitations for the Roth 401 (k) or the Roth 403 (b) so you could be making a ,000,000.

Beth Bershok: Are you serious?

Jim Lange: Yeah. So a lot of wealthy people, that will be one of their entries into the Roth world.

Beth Bershok: So the main component is that. You’re not going to believe this we have a call from Detroit.

Jim Lange: From Detroit?

Beth Bershok: And it’s a question about a conversion. Hi from Detroit, how are you?

Jim [CALLER]: I’m doing well thank you.

Beth Bershok: And what is your name?

Jim [CALLER]: Jim also.

Beth Bershok: Ok Jim also. What is your question about a conversion?

Jim [CALLER]: I’m in a fortunate position where we have plenty of cash to pay for the taxes in a conversion.

Jim Lange: That’s very unusual in Detroit.

Jim [CALLER]: Yeah. We would be looking to convert in 2010 approximately 0,000 and I know as you convert you push yourself into higher and higher tax brackets. Is there a bracket that you would say is probably worth not doing or maybe just having second thoughts about.

Jim Lange: Well one of the things that you could do without knowing more about your situation is, you don’t necessarily have to convert the whole thing in 2010. One of the things I don’t like is for an income tax payer to just considerably in terms of income tax bracket. For example, if you were a 15% tax bracket tax payer you probably don’t want to make a Roth IRA conversion where you’re paying at the 25%. And the other thing is it’s good to do long-term projections to get an idea of where you are likely to be. On the other hand, if you did it in 2010 you could spread a 0,000 conversion. 0,000 recognized in 2011 and 2012. It might be more prudent to make a smaller conversion and plan on doing it every year for a number of years depending on your tax bracket and your future tax bracket, and also by the way, it sounds like you were a long-term player, the tax brackets of your children might have a bearing on how much you convert.

Jim [CALLER]: Ok, we’re 43 and we we’re basically in the 33% bracket to start with and so it would be between that and the next bracket or two up and doing a conversion. Would you still say even at the 33% bracket it’s worth doing?

Jim Lange: Well at the 33% bracket then it becomes extremely attractive and at the 33% bracket for a 43 year old – I love doing a Roth IRA conversion. So everything I just said probably not apply to you because if the top bracket is 35% and you’re already a 33% tax payer and depending on what you think is going to happen in your financial future, if you’re going to likely stay at 33% tax payer then it might make sense to do the conversion of the whole thing all in 2010, because boy I love the idea of a 0,000 conversion for a 43 year old. You’re just going to get enormous amounts of tax free growth and to be in that position which frankly isn’t all that different than the position that I mentioned for myself earlier. I think it’s a terrific thing, you’re actually in a wonderful situation in that you’re already in a high tax bracket so it would be a much tougher situation if you were say in the 15% or 25% tax bracket then I might want to do smaller gradual conversions, but if you’re already in the 33% the right way to do it of course is to run numbers, but off the top of my head I like the idea of doing a very significant conversion.

Beth Bershok: Hey Jim, I’m going to toss the office number to you. You’re obviously listening online KQV.com

Jim [CALLER]: Yes I got the email from Jim Lange and I have considered coming to that seminar.

Beth Bershok: Oh wow! From Detroit?

Jim [CALLER]: Yeah

Beth Bershok: Oh, that’s excellent we would love to have you. Hey, we’re going to have to wrap it up because suddenly our hour is gone! I’m going to give you the office line too so if you have questions about anything, if you have questions about the book or that seminar our office is 412-521-2732. We mentioned earlier that Jim’s office is in Squirrel Hill, he’s been there for almost 30 years. 412-521-2732 and the seminar that Jim was mentioning there was coming up on February 14th. So thank you for joining us – it’s The Lange Money Hour: Where Smart Money Talks. Thanks for all the great info, Jim, and we’ll keep you posted on everything. The Lange Money Hour: Where Smart Money Talks.

Jim Lange, JD/CPA is a nationally-known IRA, 401(k) and Roth IRA conversion expert. Jim’s best-selling book, Retire Secure! Pay Taxes Later is in its second edition and enjoys glowing testimonials from the industry’s best including Ed Slott, Natalie Choate and Bob Keebler. For ordering information, please go to www.retiresecure.com. There you can obtain information on Jim Lange, Retire Secure!, and Jim’s keynote speaker availability. You can also access our treasure chest of radio show archives. Download the archives of The Lange Money Hour: Where Smart Money Talks.

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Jim Lange, JD/CPA is a nationally-recognized IRA and Roth IRA conversion expert and the best-selling author of Retire Secure! Pay Taxes Later. For more information on Jim Lange or if you are interested in hiring Jim as your next keynote speaker, visit http://www.retiresecure.com/speakertour.php.

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Temporary Car Insurance Under 25-Do You Need a Second Passport?

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Do You Need a Second Passport?

Do You Need a Second Passport?

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Do You Need a Second Passport?

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Introduction – Our Law Firm gets numerous inquiries from clients around the world for second passports and second citizenships. Generally these programs require one to have a substantial sum of money that can be invested. The Panama Instant Passport program requires one to place about 5,000 in the bank in Panama for five years in return for 0.00 a month in bank interest paid monthly and a five-year passport, which includes a five-year residency. Not everyone has this much money to invest, even though they can decline to renew the program after five years and just take their money back making the program practically free.

The concerns with this program are what if the program is not available in five years? What if the program requires more money at the end of five years to renew? Will I need to present another passport to renew this passport at the end of five years or can I renew based on the Panama Passport? We do not know what the renewal requirements will be in five years. This has caused us to come up with alternative measures for those wanting to leave their home country and start all over with a new residency, citizenship, passport, driver license, bank account and Visa card. This is essentially a new start.

South American Passport Free Travel – In the European Union one can travel around the various countries based on a National Citizenship or Permanent Residency Identity Card. This eliminates the need for a passport unless one is going to travel on an airplane or out of the EU. Some air travel may be possible without a passport in the EU. What most do not know if that South America is also operating this way.

Why South America – A number of reasons. The real estate is most affordable. The medical is great and cheap with insurance available for most. Hospitals may be better than what you are used to. Doctors make house calls. Dentistry is affordable for almost all. Food is basically pure as in organic and cheap. Cars cost about the same. Governments are stable, some more than others but homeless people; people living in cars, etc are absent for the most part. A live in maid runs 0 to 0 a month. A full time driver runs 0 to 5 a month. Crime is lower than North America or Europe. Gun ownership is real easy in some countries. Prescriptions can generally be bought without a prescription with few exceptions like heavy pain and sleeping pills. Most of these countries we deal with will not tax money coming in from outside of their country. Some have some form of bank secrecy. Freedom is high; taxes are for most of you going to non-existent in the new country. These countries have criminalized businesses and the governments tend to focus on real crimes. South America by and large has poor relations with many of the high tax, privacy invasive countries. South America is even starting its own IMF and World Bank called Bank Sur, Bank of the South. Actually it is already open. South America is the place to go for a fresh start. It has everything you have now and then some. You will probably live calmer and better.

Differences between The European Union and South America – Some of you may think well why don?t I go to the EU for a residency. Most of what the client is trying to get away from is going to be present in the EU and even more so. There is a severe loss of privacy. Bank secrecy and corporate secrecy is generally just a memory. Taxes have reached the 80% mark in some of the European countries, admittedly there are some social services available but for you in the high-income brackets this sort of taxation would be torturous. Plan on offshore income being taxed and at high rates. Plan on really invasive filing requirements. Plan on paying high VAT rates in addition to other taxes, think 25%. Real estate prices are going to be at least four times higher than South America and in some cases much more than that. Lawyers can run wild there since actions concerning events in one country can be collected in any of the EU countries. Forget asset protection in the EU. The cost of living is generally higher than from where you came from. Weather conditions are generally not tropical or even semi-tropical but they are good for snow skiing and ice-skating. Crime is present in significant levels. I do understand that not all countries have all these factors in play at the same time.

Andes Community of Nations – This is essentially a trade block in South America consisting of: Bolivia, Columbia, Peru and Ecuador. These countries allow cross border travel if one has a residency ID card from any of these countries and they also extend the privilege to those holding a residency ID card from any Mercosur country including associate members. (Argentina, Brazil, Chile, Paraguay, Uruguay and Venezuela).

Mercosur – Mersocur is another trade block in South America that allows those holding resident ID cards to cross borders without a passport. Mercosur consists of Paraguay, Brazil, Argentina, Uruguay and Venezuela.

South America Passport Free Travel- This means that one can travel passport free in these 10 countries – Argentina, Brazil, Chile, Paraguay, Uruguay, Venezuela, Bolivia, Columbia, Peru and Ecuador.

Residency Advantages – Getting a residency ID card from some of these countries is a process that requires as little as 30 days. Usually a temporary card is issued which becomes permanent in about six months. It is usually required to get a letter with the temporary card stating that the permanent card has been applied for to enable cross border travel with the temporary residency card. This is easy to obtain. Getting a Passport is generally time consuming the exception being the Panama Instant Passport Program, which requires 60 days. Many of the economic Citizenship programs take six months or longer to get a passport and the investment required is usually in excess of 0,000 and this is not money that you get back someday like the Panama Instant Passport Program.

Residency Country Time Requirements in Country- Generally it requires about 30 days initially to apply when you must remain in the country. Please bear in mind this can vary from country to country. Usually you will need to return for a few weeks to pick up the permanent residency card. You should plan on spending several weeks a year in the country until you get your passport. Down the road two to five years later.

Getting to a Passport – It can vary from country to country. The least amount of time is one has to have a permanent residency for two years and in other countries it is three years or five years. REMEMBER you can always obtain the Panama Passport, which is good for five years in sixty days. Then you have a five-year passport, which will carry you over until the South American country issues you a passport.

Time Spent in the Other Participating Countries – You would be allowed to stay for very long periods of time, months if not years. You would be free to come and go just by presenting your ID card. You could live in any of the other listed countries, working would be a different matter that would need to be addressed on a country by country basis with legal counsel in the country since there could be a lot of variables involved.

Banking as a Resident – Once you have your permanent residency card which takes about six months, opening a bank account in the country without being required to show your old country passport will not be hard at all. When the residency is temporary the bank will want a passport from somewhere. When you have your permanent resident card opening bank accounts should be easy without you needing to present your passport at the bank registering the account to a citizen of whatever country your passport is from. It helps to get a drivers license in the country which is generally a matter of just showing your existing one. You should be prepared with a local address and telephone when opening a bank account with just your residency ID.

Civil Collections in your New Country – Generally any existing civil debts should not follow you to your new country. We do always suggest banking in Panama through a Panama Private Interest Foundation or anonymous bearer share Panama Corporation. The Panama Foundation has superb asset protection features. The banks in Panama are world class, which is probably not going to be the case in the country granting you the residency. Panama has no tax treaty or civil judgment collection treaty with any other country. What would be advisable is to bank in Panama and transfer money to live on several times a year to your new resident country if you chose to reside there year round. In any event civil judgments, lawsuits etc. following you to your new residency country would be extremely unlikely. How would the creditor know where you are, you are banking with an anonymous foundation in Panama aren?t you. These countries are not tolerant of cross border civil processes.

Which Country – We work with several of the 10 countries and can vary the country to suit the needs of the client. Some clients want a country to live in cheaply, safely, with good food, weather and medical. Some want more of a metropolis type environment with lots of nightlife. Some seek beaches. Some want snow skiing. Talk to us; tell us what you need, that?s what we are here for.

Uruguay – This is our favorite. It is the easiest most direct way to get this residency for cross border travel. There are several easy to meet the residency requirements. You can start a business in a duty free trade zone and employ yourself. You can show proof of income like bank statements, this is not retirement income just any income like self-employment income, rental house income, investment income etc. You can buy or rent a house. You can deposit money in the bank (00.00). Easy to qualify with several different options available.

General Requirements – You will need a police clearance letter. You will need to undergo a thorough physical in Uruguay. You will need a passport, birth certificate and marriage certificate. You will need birth certificates for minor children and spouse. You will need to be able to obtain a Visa to travel to Uruguay.

Name Changes – We do not get involved with name changes. If you really want to draw attention to yourself this is the way to do it. This is the biggest red flag you can wave. Numerous agencies and governments around the world pick up name changes. If you need a name change consider applying after you have your permanent residency for some time not as a new applicant, but again we do not get involved in name changes so you would down the road need to do it yourself or retain a local attorney for assistance.

Police Records – If you have a police record you may be eligible to apply. It would depend on a number of variables such as the time the offense occurred, the sentence, the offense and the country. Things that would be difficult to get approved would be criminal sentences with more than one year in prison, convictions for drugs, money laundering, weapons trafficking, terrorism, sexual offenses involving force or minors, and crimes of violence. Feel free to discuss this with us if you like. No one knows what will happen until the complete application is presented to the immigration authorities and a decision is made. We cannot ask them for an opinion without them seeing the full application. A criminal record could result in a denial of the application.

Will You Appear Personally in the Immigration Office – The answer is yes. They will fingerprint and photograph you. They will check with Interpol. You will have a local attorney with you who speaks English and Spanish so no translation worries. Your Residency ID card will be picked up by you and the local attorney at the immigration offices. You will be posing for the photo at the immigration office. These are above board programs that all run through the immigration department of the country. It will all be done in a large official government building in the country.

Extradition Considerations – If you are under arrest, under indictment or criminal charges, out on bail or bond, or already convicted and trying to flee before reporting for sentencing these programs are NOT for you. We cannot help you at all in any way shape or form. You would fail the police records check and Interpol would flag you. This would result in you being turned over to the authorities in the country the offense was from. You would only have tourist status in the country you were applying in, since the application would not yet be approved and tourists get no special considerations under these circumstances. No UN country wants to provide safe harbor to fleeing or wanted criminals. If one country did it then many would do it and then a cross border crime wave would be the result. This does not happen.

Extradition exclusions or protections generally apply only to a citizen or permanent resident AND they must have had that status BEFORE the time the crime was committed. There are usually exemptions for drugs as well so narcotics cases may be extraditable. When the country denies extradition it usually offers to prosecute the person for the crime in his or her own country using their own justice system. This is often a farce since the other country will have to mobilize lawyers to prepare for the trail and attend it, plus bringing in witnesses and evidence to that country. Even then the courts or jury may be most reluctant to hand down a guilty verdict. In any event extradition requests are based on treaties called Mutual Legal Assistance Treaties between countries. So one must read the individual treaty the two countries in question have signed to begin to understand some of the factors that come to bear. Then comes the publicity, severity of the crime and so forth, which seem to also at times work their way into things one way or another. Some of these treaties have an element of dual criminality in them. This generally means that the crime in question must be a crime in both countries. This prevents things like religious, political and racial discrimination from being prosecuted that the person would not be subject to in their own country. Remember if the crime occurred before the residency or citizenship was granted it generally leaves the door open for extradition, but again this too is not an absolute. We do not specialize in extradition cases nor do we take them.

Costs – This is going to vary from country to country. Plan on a fee of ,000 for Uruguay. You would have additional fees for certifying documents, photos, travel, housing, filing fees (generally nominal under 0) and so forth. These extra costs are usually not a major consideration.

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Payment Q&A

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ATM card, Debit card, Credit card, Master/Visa card, sub card, what going on for them?
Sometimes I get really confused with the cards and their functions.Can someone provide me next to a) how are the cards used (to draw money from machines, to sign on the receipt, to key contained by pin number?)b) where can the cards be used (ATMs, retail stores, internet payment etc?)c) conditions to win the cards (minimum age, min balance, salary etc)d) advantages/disadvantages (convenience, availability to use, points mound etc) e) how is the money collected from you/how it works (money drawn directly from bank, send bills by notification, can spend more than your balance etc)I have so frequent queries! Help, thanks.

ATT requirements to transport me to Collection for almost 00. If I don’t payment, would it hurt my credit report unsuccessfully?
I traveled ovearseas, and I get an international plan where I be literally told by a Cingular/att member of staff that respectively appointment would cost me 9 cents a minute. I come posterior, and they charged me approaching 2.50 per minute. I’ve call them several times and complained, talk to manager, etc. They hold immediately reduced 30% to 00. I touch so cheated, and I will not salary because I do not enjoy the money. I enjoy an awesome credit chalk up and report, no collections. no unpaid payments no zilch. 780 FICO gain. So, not paying this savages would screw my credit report/score?? assistance!! I’m gonna apply for a student loan subsequent year.

Authorized transfer of funds?
I paid one of my bills online, and very soon its saying authorized and give me an option to end if i want to..it has not however POSTED to my account because im still seing the previous stability. what does authorized mean? I have problems before beside this business making a credit card payment it have a habit of rejecting my payments with the sole purpose 3 out of 7 but yeah, will it approve?

Auto financing w/ fruitless credit?
I have a low 400 mark, I talked to some one that did auto financing for 14 years and this is what he told me. He said move about to a reputable big dealership that offers “special financing.” He said bring proof of income and that surrounded by over 14 years he was never competent to not finance someone if they have a large plenty down payment. I enjoy saved a few thousand dollars and am in place but I don’t know a good company to start near…does anyone know the name of a company explicitly reputable that does special auto finaning…?

Auto loan??
OK, i’m getting VERY discouraged! I need some abet! I’m applying for an auto loan, my first and i cant seem to return with approved! I bought my first home last year next to my fiance and its dragging me down (creditwise), They wont approve me because applying by myself somehow make me responsible for the entire house reimbursement. I would have my wife co-sign but his score is really desperate and he has unpromising payment history… What should i do? My grandma said to try buying a brand contemporary car bring they get anyone into them?! I dont know! Help!

Auto Loan?
My husband and I filed ruin and it has be discharged. If we get an auto loan, how much would we requirement as a down payment and what would we qualify for near an income of 00 per month? We dont want something too expensive…I just own no clue what price range we would be within. Thanks.please don’t leave gloomy comments. =) Also, what are some good companies to budge with for the loan?

Auto loan authenticity issue.pls relief!?
i was doing auto loans next to this company called WESTLAKE FINANCIAL SERVICES.at d time, they offered me makeshift insurance 4 my used car. dis insurance is valid for 6 months. its one of those liability and comprehensive article. n after 6 months, that insurance is no longer valid n i have 2 acquire my own insurance. so i did and i was insured by mercury. at the time i be paying 2.88/month for 6 months. this includes the insurance that the bank offered. so 6 months next i called them n asked how much my pocket money would be without their insurance since i already get my own. they said the payment remain duplicate bcuz i agree to pay that amount within the first place. then i argued near them back n forth due to the certainty that i agree because 2.88 INCLUDES THE TEMPORARY INSURANCE. but my payment w/o insurance still remained matching. is this illegal? i rewarded them 2.88 4 22 months already..n the last pay i made was april 07 (i remunerated the whole article off already). if iffy who should i talk2

Auto loan during Chapter 13 ruin possible?
Will surrender one overpriced/overvalued vehicle to finance company surrounded by order to moderate restructured Chapter 13 Payment Plan amount. Will need to buy another vehicle somewhere around 00.

Auto Loan want assistance beside fee plan?
I am buying a car and get the loan through my father-in-law. I need something to amount out my payments and adjusts the interest according to what I repay per month. Is their software I can buy or something on the net, or microsoft bureau. I have looked at bankrate and they supply me my payment plan at a locked within payment per month. I obligation something that adjusts from month to month.

Average interest rate and sports car expenditure for – open-minded credit?
I am selling my 1969 VW bug and buying a “mom” type of vehicle, now that I am pregnant. My credit is reasonable…about 163 I muse with a history of liquidation 7 years ago. I was have trouble finding an auto loan. I am also self employed which makes it complicated to prove my income. What is the average interest rate I can expect to get given my credit. I be considering buying a used car, but adjectives the ones I was looking at be ,000 and I saw a new CRV Honda for ,000 to ,000 which seem somewhat reasonable which would put my saloon payment at 0 I infer. It has be a while since I’ve had a coup¨¦ payment and I don’t know what is believable to expect. I feel resembling I’m in a bind since my credit isn’t great and I be aware of lucky to even get a loan. Thoughts?

Bad credit?
If your credit was not so devout and then you payment off a student loan, would you know how to get other loans contained by the future even so you have deliquent accounts at least 5 years in the past applying for student loans?

Bad credit appearing twice on my credit report?
I have issues concerning my credit report that I would greatly apperciate advice on. 1) The same debt appear on my CR twice. From both the inspired creditor and the collection agency. Is this legal? What could I do to remove the original creditor’s report? The information the collection agency provides to the 3 credit bureaus are adjectives different and they even have the guts to say my ultimate payment to them was within 04 – during my deployment. I have never given them a cent. Isn’t this called re-aging?2) I enjoy another charge off that gets reported to 2 credit bureaus by the productive creditor on which they state it has been sold to a CA and the CA reports to the other credit bereau. Both of them also state that I made my concluding payment in 03 also during my deployment – unattainable. I read somewhere that you cant send an original creditor a reminder for debt validation. What should I do?

Bad Credit Auto Refinance?
I got myself into a really discouraging situation…bought a car within August 06 and financed it directly through the dealership. I was told they’d distribute me my payment book, to budge home and wait on the details of the loan to be worked out but that my monthly costs would be no more than 0 what I was paying for the coup¨¦ I traded in. I wait, and waited. December rolls around, they threaten to come repossess the sports car because I had not salaried…yet they have never sent me an invoice. I go within, the rude guy shoves a bunch of papers in front of me…I found out I have been driving on prohibited tags. The matter didn’t get complete until December and at that point I finally sign a sale contract, only it happen so fast I didn’t know what I have gotten myself into. I just didn’t want them to help yourself to my car. Anyway the dealership have me financed at 20.400% interest. I have rewarded that for 18 months, never missing a payment. They are not reporting to the credit companies.

Bad Credit Credit Cards.?
I went through a bad divorce, and it destroyed my credit. I hold been rebuilding it for some time. I currently have a student loan thoroughly current and have an auto loan with a impeccable payment record. My mark was at won time down to 430, and I currently am up to 575. I am looking to get a credit card to use monthly and payment off each month within order to further rebuild, but it seem that every company out there is a credit card pirate company. I would even not mind opening a secured article, but the fees for so many of these companies are just ridiculous.Does anyone know of a unsecured or secured credit card company to recommend?

Bad credit history?
I have get bad credit history from a credit card i have. I had a few behind payment but consequently payed it all bad in full. ive have a credit history report and it says it will be on defult for 6years but can i clear them, as i am hoping to rent a house and dont want doomed to failure credit to affect me.

Bad Credit ,Is a house possible by myself?
I Have bad credit due to self stupid when I was younger,kind about 40K\year,can come up next to a down payment. I be left money from a relative that passed,but do not want to hold it all out and a short time ago buy a house due to taxes.( It’s not enough for a house within New York). I have no begin credit cards cause I froze them to wages ‘em all sour,which I have. My Credit rack up is probably in the upper 500′s and most my unenthusiastic connotations on my credit report will be coming off this year. Is it possible to bring back a house by myself?

Bad credit loan?
i have impossible credit and i’m looking to get a loan but my chalk up is very low i’m looking to earnings of all my bills at once and enjoy one payment , but i cant win a loan from any wear do you know if there any comfort.

Bad credit rack up. remunerated allmy debt sour and enjoy deeply of change. I engender going on for 4000 dollars/month.Can buy a house?
I have a impossible credit score. I compensated all my debt sour and have profoundly of cash. I gross about 4000 dollars a month (after tax).Knowin that it take some time to clean a credit dictation, can buy a house if I put a big down payment lacking having to appropriate a big interest rate?

Bad Credit Report?
I have recently recieved from Experian my credit report.I own in the past get into debt,mainly with catalogues and a assets one card.I noticed it shows every missed payment.How long if I rate on a regular basis will it take to reorganize my credit rating.

Bad Credit Unsecured Personal Loan Help?
I am on Social Security Disability and my fiance has a full time errand. I have be on disability for 4 years and he has be on his job for 4 years. Together we own a gross income of 00 a month. He has poor credit and I own fair credit. We are looking to find a doomed to failure credit unsecured personal loan to help wage off some debts. We would want it to be contained by his name beside me as a co-signer as well. I enjoy credit cards and debt in my heading that I am paying off on my own personal loan that I received beside the help of my father as a co-signer. He doesn’t want to ask his relations for co-signing help. So it is a moment ago us. Does anyone have any suggestions for companies that don’t ask for a payment just to apply for a personal unsecured loan that is to say geared towards people beside poor credit? We also have excellent rent history of living within the same apartment for over 5 years. We do not own a home. We would close to to try to get a loan but don’t know if it is possible. Any suggestions would be great. Thank you.

Bad credit vs. Good credit but not adequate?
How is it that people beside bad credit can catch approved for loans, whereas someone who has a biddable credit score (just not ample credit) can’t? I mean, i’ve never be late for a payoff, I always payment over the minimum..my credit score is teeter between 690-715. Why can’t I get a loan on my own short a cosigner?

Bad credit. want to earn credit beside current credit card?
i enjoy bleak credit. i finally get a credit card and can start earn my credit. i’ve be told two seperate stories in relation to paying for my credit cards payments to earn those credits.i be told the 1. if i fashion monthly payments and not pay my harmonize (although i hold to retribution to stupid nouns charges), that’s a path to earn credit. so i be told to do that for 6 months to a year and my credit will improvethe second one i be told be that i HAVE to settle up my cc bills within full EVERY month contained by demand to receive better credit ratings. and also to avoid nouns charges. so which one is correct??1. formulate monthly payments, hold a go together, and payment nouns charges?or2. reward my cc bills contained by full every month and not obtain charged on interests

Bad Credit – Where can I receive a Loan?
A former ex boyfriend helped ring up some serious debt in my christen and then never paid me and presently I am so behind in payments, I next broke my tailbone and have medical debt. I can’t afford all the payments and want to bring back a loan to pay them off and enjoy one payment, but my credit is so ruined from all the non money… where will give me a fully clad loan with very discouraging credit?

Bad debt help out?
Last year, I paid of 6k contained by loans and credit cards, and I only enjoy 800 left to remuneration off, two of the debts have gone to collections, but most of my creditors were beaming working with me and help me set up a payment plan. The problem is, end month the cashpoint swallowed my debit card, and the bank replaced my card next to a cash point card (not a debit). so I can’t use it for anything except at a hole surrounded by the wall. I have never owed this out of the ordinary bank anything.Does anybody know why this have happened, the ridge have told me it is because of my discouraging debt, but I know people beside far worse than me, and they’re ok? And can anyone recommend a UK bank that might be capable of help me. I’m really struggling to use lolly all the time.

Balance verbs?
I have a sports car loan out with a match of a little over 00 at an interest rate of 7.9%APY – my monthly expense on the car is 5.07. One of my credit cards (Mastercard w/ Bank of America) have a 5.9% (APY) interest rate, and the minimum payment due is .00. I also own one other car loan out next to the same hill at 6.75% interest. Would it be a smart move to transfer the match at 7.9% to the credit card and continue to clear at least 5.07 a month to the credit card company. I enjoy no balance due on the credit card right very soon – and this interest rate is permanent. The verbs fees are minimal. I’ve already confirmed that. My credit limit is ,500 on that card. How would this affect my credit win?

Balance won’t be in motion down on my American Express payment card?
I recieved a American Express giftcard and Christmas and just lately spend .01 on a headband at American Apparel’s website. Well then I realize I didn’t like the color, so I know I wouldn’t have adequate to get another one nearby so I purchased a white one at Amazon.com for about near shipping. After all this, I call the number on the back to inquiry more or less the remaining balance and it said I have left on it. I know for a reality I spent well over . I’m wondering if any it needs time to process or it a short time ago didn’t go through and I enjoy free money? But they both seem crazy. Why would only one dollar process when my first purchase be well over . I’m lately confused. Can someone give me an answer.

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Feb 02, 2011

Debt Collector Violations: Your Rights Under the FDCPA

The debt collection industry is a disorienting maze for nearly anyone in its grasp. Rampant consumerism serves as fuel for a collections industry that rakes in billions every year. Unfortunately, those billions are often obtained via harassing and unlawful tactics. So where does this leave consumers? Though debtors are obligated to repay most debts, they still retain certain rights under the Fair Debt Collections Practices Act (FDCPA).

By:
Tonia Nifongl

Finance>
Creditl
Feb 02, 2011

Technology Boon – Credit Card Payments

Today’s market environment is highly competitive making it absolutely necessary to keep up the pace with the fast developing market trends. Technology has done wonders for the human race one such technological boon is the development of credit cards.

By:
jannamolinal

Finance>
Creditl
Feb 02, 2011

Credit Cards After Bankruptcy – Why It Is Imperative To Restore Your Credit Score Following A Bankruptcy

Even folks with a bankruptcy on their credit report can obtain a credit score in the 700 range by getting hold of lines of credit immediately following your bankruptcy. Learn about this vitally important topic for your best financial success.

By:
Jay Petersl

Finance>
Creditl
Feb 02, 2011

840 Electric Imprinters For Retail Enterprises Dealing Volume Buyer Payments

Lots of companies have to carry on with a big volume of financial proceedings on a every day basis making the use of electric imprinters a needful across certain scenarios. Manual processing of the payments would lead to lots of intrinsic errors as well as take up useful time creating an unwanted backlog of orders. Electric machines can resolve such roles without any hassles because of their design and implementation principles.

By:
Lila Greenl

Finance>
Creditl
Feb 02, 2011

Which Is The Best Secured Credit Card For Rebuilding Credit?

Secured credit cards are a high-quality way to increase your credit. A secured credit card is like to a debit card, with the credit card company reporting your payment and usage activity to all three credit reporting bureaus.

By:
Jay Petersl

Finance>
Creditl
Feb 02, 2011

Equifax Q&a

Incorrect info on my credit report.?
I paid off a doomed to failure debt in december. Exp and TUC shows collection or reposeesion account closed stability.However Equifax shows that I am currently 120 days late with a dollar be a foil for reported 4/2008. I called the agency reporting it and they said they would change it to closed, will it still show that i be 120 days late? Do i need to report a dispute with Equifax….

By:
creditfaql

Finance>
Creditl
Mar 30, 2010
lViews: 274

Credit Score Questions And Answers

Does paying my insurance within full oblige build my Credit History?
Im just starting to build my credit history here within the US..Im about to seize an auto insurance and planning to pay 6 months contained by full to avail of a discount.But I also want to build my credit history thru this.. Does paying in full join me credit score?Or do I call for to make monthly installments to abet build my credit history…….

By:
creditfaql

Finance>
Creditl
Mar 30, 2010

Debt Questions & Answers

Can i wallet liquidation presently ?
hi,i owe around ,000 credit card debts , can i file collapse now?i don’t own a house now and already sold out the vehicle longg time ago.1-what will happen to mine credit card debt after record bankruptcy?2-how much i want to pay to do this beside lawyer?3-what will arise to mine credit file?appreciation…..

By:
creditfaql

Finance>
Creditl
Mar 30, 2010

Credit Report Questions & Answers

Credit Report?
I have a bunch of distrustful items on my credit report, they are from when I was going through my divorce and it be eat or reimburse bills. If I pay these balance off will they be removed from my credit report or will they remain and lately show paid?If they remain should I lately leave them on my report and how long will they remain? Please facilitate………..

By:
creditfaql

Finance>
Creditl
Mar 30, 2010

Credit Card Q&a

Am i doing the right article for my credit?
my credit score is really bleak from my college years. about six months ago, i get a credit card with orchard edge and set up automatic payment so i’m never deferred and only engender small purchases. i have set up alike thing for my student loans. do you suppose this is enough to advance my credit….

By:
creditfaql

Finance>
Creditl
Mar 30, 2010

Bad Credit Q&a

Finacing A Motorcycle, Buyer have no Credit, Co-Signer have unpromising credit?
SO im looking to buy a Ninja 250r as my first bike.But I need a Co-Signer,the olny co-signer I can carry is my Dad and his credit is bad.whould I still be capable of get the loan next to his bad credit ? P.S. I hold no credit,I want to get this loan to start my credit.

By:
creditfaql

Finance>
Creditl
Mar 30, 2010

Visa Questions And Answers

Can i use a debit card on ebay?? im 17 years old and i dont own a mastercard or card obviously grounds im too young. my parents wont allow me to use here credit card to make purchases on ebay lone a few times they did. is there anyway i canuse my presedents choice debit card beside no master card or logo on it to make purchases? pple own said yes and no i want the real buy and sell here lol. thanks alot for ur input!!

By:
creditfaql

Finance>
Creditl
Mar 10, 2010
lViews: 103

Mastercard Q&a

How easier said than done is it to grasp approved for a credit card? I don’t have any credit. I’m one and only 24 and have never have a credit card. My credit is not bad, I a short time ago don’t have any. I’m a student. I applied for this super cool National Geographic Chase Mastercard w/no annual charge and a 0% introductory apr. Will I get approved? I don’t want to capture a dumpy student credit card.Thanks, everyone!

By:
creditfaql

Finance>
Creditl
Mar 10, 2010
lViews: 108

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