The key is in the picking. That’s the big challenge.

Jeremy Welther, principal and senior financial advisor at Brinton Eaton, a wealth advisory firm offers a few guidelines for your mutual fund adventure.

“Careful scrutiny is now the name of the game. Due diligence is not just for institutional investors. When choosing a fund, individual investors need to make sure they look carefully at all the basics – commission levels, expenses, manager style, performance and risk protection features,” says Welther. Understand the Expenses Involved

Before investing in any mutual fund, research the expenses involved in participating in the fund. There are two types of expenses to scrutinize: the commission, or “load” that is paid to the seller of the fund, and the gross expense ratio, which covers the cost of running the fund.

Load

Loads, or commissions, provide revenue to the selling agent from which someone can purchase mutual funds. This is typically the case when a mutual fund is purchased through a brokerage firm. Loads can be very costly to the investor, says Welther. “If you do not know these loads exist, you can end up paying for them without ever realizing it. Some loads are charged at the front end, when you purchase a fund, and some are at the back end, which requires you to pay upon redemption of shares. Some funds have no loads, while others have load that run more than 5 percent, he adds.

Gross Expense Ratio

The gross expense ratio covers the cost of running a fund.This includes fund manager compensation, administrative costs, and the marketing/distribution fees, called 12b-1 fees. These fees can all vary widely, so it is worth comparing different funds to see how the expenses differ.

The gross expense ratio is not something that will appear on your statement as a fee. It’s reflected in your annual return. So, if the expense ratio on your fund is 1%, and the actual return for a given year is 10%, you will get 9%.

In any given fund, the gross expense ratio may vary based on the share class in which you are investing. Mutual funds have different levels of share classes that can be based upon the size of the investment in the fund or the type of account in which the fund is being purchased (such as a retirement plan offered by an employer).  An employee of a small company that chooses from a fund menu may only have the option of investing in a more expensive share class, which can mean high annual fees. This is also true for the individual investor who buys into a fund with a modest amount of money, versus an institutional investor with millions to invest.

Watch for Style Drift

It is important that the fund in which you are investing does what it says it is going to do.  When a fund deviates from its stated strategy, it is called style drift.

An investor may choose a fund specifically to have exposure to mid-cap companies.  If the fund deviates from that strategy and starts investing in small-cap companies, your portfolio may be more heavily weighted to small-cap then you would like, or even be comfortable with.

Before investing in a fund, check how closely the manager stays in line with the fund’s stated parameters. Ensuring that your fund investments stay focused is important when you are trying to build a diversified portfolio. Compare Your Fund with its Peers

Many people assume that comparing a fund’s performance to the S&P 500 or some other major index is a good way to gauge the success of the fund. However, this is not always a good strategy because the fund may not be trying to follow those indexes.

The better indicator is how well the fund did, compared with other funds with the same objective.  If the fund trails its “peers,” you probably want to stay away because the fund is underperforming in a group of funds that have the same goal. Consider a Fund’s Safety Controls

In the wake of the financial crisis, many investors have been drawn to funds that have been specifically designed to offer above-average returns with less risk, or built-in protection against volatile markets.  These mutual funds may be a good choice for investors who are seeking the comfort of greater transparency and stability.

“The basics of mutual fund investing haven’t changed – balancing low costs with good performance – but if the financial crisis of a few years ago taught us anything, it’s to more carefully scrutinize the financial products we are buying, and to consider funds that incorporate risk protection features,” says Welther.

Some good resources for checking expenses, a style drift and overall performance are Morningstar (www.morningstar.com) and Lipper (www.lipperweb.com).

You don’t have to worry about finding a fund that fits your needs. Whatever your objectives or goals, there are numerous options to help get you there. What are you waiting for? Let the investing game begin.

The post How to Get Started Investing in Mutual Funds appeared first on The Faster Times.

Here’s what you need to know about successfully navigating the audit process.

Don’t assume the tax authorities are correct

Larry Elkin, a certified financial planner and president of Palisades Hudson Financial Group offers much advice: Know that federal and state offices send out huge numbers of notices advising taxpayers that they owe money. Most result from simple data or reporting errors the tax authorities believe you made, says Elkin. However, if you carefully gathered your tax information and had someone competent prepare your return, there is a good chance the notice is incorrect.

Do not just pay the bill. Check the facts first, or ask your tax preparer to investigate. If the tax authorities’ figure is wrong and yours is correct, you should be able to clear up the matter routinely.

With field audits, where the IRS or your state agency goes through your records with a fine-tooth comb, the situation is far more complex. “Unfortunately, the tax agent may not fully understand the law, or even the facts,” says Elkin.

Field agents often lack a detailed knowledge of applicable tax law, or may seem to make up rules that are not in the tax code or regulations, he adds. “That’s because they are typically some of the least experienced and least trained personnel in the enforcement staff – those with greater knowledge tend to be promoted to review-level positions,” says Elkin.

Don’t go it alone

The audit process works best when it is limited to the issues the auditor raises. Your presence invites incomplete or incorrect off-the-cuff answers to the auditor’s questions. An effective taxpayer representative (usually a CPA, attorney or IRS-authorized enrolled agent) will find out what the auditor wants to know, gather the information and present it clearly and concisely without triggering collateral issues.

Skilled professional representation is expensive, and your representative does not control how many hours the audit will consume – the auditor does. Auditors do not care how much they cost you in professional fees, says Elkin. Sometimes, tax authorities seem to have a pretty good idea how much it will cost a taxpayer to appeal or litigate a dispute and offer to settle for about the same amount, he adds. “It may be worth accepting such an offer if the auditor raises a valid point.”

Once you hire help, get out of the way. “You have nothing to gain by participating in the process,” says Elkin.

Do not extend the statute of limitations

You have a few months after the end of the year to file your tax return. The authorities generally have three years thereafter to examine it and ask anything they want. Auditors have heavy caseloads, however, and they like to manage them by asking taxpayers and their representatives to waive the three-year limit. Taxpayers usually grant such request. “Just say no,” warns Elkin.

Waiving the statute allows the agent to drag out the process, inflating the taxpayer’s cost for representation and increasing potential interest and penalty charges. It gives the agent more time to raise more issues. It lets the agent raise additional issues if new legislation, regulations or court decisions provide support. “You get no benefit,” says Elkin.

Do not be bullied or intimidated

Most agents will not threaten, yell at or mistreat you, but an occasional miscreant will, says Elkin. If that happens, documenting the misconduct so that the agent’s supervisor or an appeals officer might learn about it, is one way to handle the situation. Another is to simply ask to speak with the agent’s supervisor.

Keep excellent records

If you can demonstrate that your tax return is correct and complete, and that you have taken positions that comply with the law, you should have no problems if you are audited.

Realize that even the best tax professional representing you must work with information you provide. It you don’t have a system to efficiently maintain the records you need, your tax adviser can help you set one up, or maybe even maintain the records for you.

You will get the best results through helping the auditor do his or her job well, by offering information that is credible, responsive and well organized.

Pay what you owe, promptly

Interest and penalties, including penalties for late payment, add up quickly. If you have the money to pay what you owe, pay it. It is possible to get installment plans and even compromises on tax debts, but the tax authorities do not cut great deals for solvent taxpayers.

If an auditor raises an issue in which you are clearly wrong, concede the point. Owning up builds credibility and shows the agent (and any appeals officer who reviews the case) that you are making a good-faith effort to comply with the law. That credibility might earn you the benefit of the doubt on other issues, such as minor gaps in your records.

Lastly, says Elkin, “Your goal in an audit should be to show the auditor that it is time to move. That’s the quickest, safest route through the audit minefield.”

The post How to Survive a Tax Audit appeared first on The Faster Times.

             As the job market is beginning to show signs of life, a unique phenomenon is happening and if you jump on the bandwagon it could cost you.

             “As people who have been looking for work a long time start to get back into the workforce, many of them are so happy just to get a job that they sometimes accept a lower salary than they have to,” says Bill Humbert, author of RecruiterGuy’s Guide to Finding a Job (www.recruiterguy.com). “Some employers feel that they can probably get away with a lowball offer, and many job hunters will grab it just so they can have a job.”

             However, the truth is, there are ways to get the job and still get what you want. Here’s what you need to know.

             Don’t offer salary requirements. When you are asked to include salary requirements with your resume, that is typically a company’s first screen, and it can be used against you, warns Humbert. “I’ve seen people agonize over what to reveal, because they are afraid of pricing themselves out of a good job. My advice is to simply put “open” in that spot,” he says. If your qualifications are on target, they’ll call you. If in the interview you’re asked what you made at your last job, reply by asking about the range for the one you are applying for. “You’d be surprised how managers or human resource representatives will tell you.

             Don’t give away too much. In many job applications, an employer will ask for your salary history. It is perfectly fine to write “Willing to discuss at appropriate time during interview process” and leave those numbers blank. Writing down those numbers probably pigeonholes you, and reduces your negotiation power.

             Don’t negotiate salary. Sounds crazy, but it’s not. “Don’t negotiate salary in the interviews,” says Humbert. Instead, negotiate when you’ll give them your salary requirements. You don’t know what you’d require until you have a clear picture of the job requirements and potential for advancement over the next five years. After you have that information, and you’re asked again for that number, respond by asking to go through what Humbert calls your “impacts” – areas of your job that directly impact the company’s bottom line. This discussion will allow you to demonstrate what you bring to the table. At the end of the discussion, simply tell them that you are very interested in the position, and that you’d seriously consider any offer they’d like to make.

             Keep networking. Once you have a job offer, it’s not a done deal until you accept it. Until that happens, keep networking and looking for jobs. It may give you valuable market-worth data about the position you’ve been offered. It may also be a safety net in case something goes awry between the time you receive an offer and the time you accept it, says Humbert.

            Accepting the offer.  Once an offer is given, you have the right to ask for a clarification on it. Asking, “Is there any flexibility in this offer?”, may help to open a discussion of increasing the offer. If it does, don’t expect a large boost in pay, but rather, an extra week of paid vacation, a signing bonus or other such perks.

             “Keep in mind that salary negotiation is more art than science, so these tips may not always apply,” says Humbert. For example, many hourly workers don’t have as much flexibility on pay, and some companies have policies that would require you to adjust the script a little to fit those situations. The key thing to remember, he says, is that you don’t have to give them a salary range that would jeopardize your earning potential, and that you don’t have to accept their first offer most of the time.

             Remember, “They are interviewing you because they need to fill that position. It’s important to the company to have someone in that job, and while they are considering you, they aren’t doing you a favor. They need what you have to offer, so you should get the best offer out of them that is possible.”

The post How to Negotiate Your Salary appeared first on The Faster Times.

            “With consumer resolving debt balances declining nationwide and home values flat, some homeowners are considering paying off their mortgages early,” says Kevin Gallegos, vice president of Freedom Debt Relief. “For people who are staying put in their home for some time, paying off a mortgage before the end of its term has benefits. Obviously, making extra payments eliminates the loan debt faster. This in turn dramatically lowers the total interest paid over the life of the mortgage,” says Gallegos.

             Truth is though, not everyone gains from paying off the mortgage early. Here are a few things to think about to help you make up your mind.

             Are all other needs under control? For anyone, paying off credit card debt and contributing the maximum to a retirement plan are goals that should beat out paying off the mortgage early. Those planning to retire soon might find it appealing to eliminate the mortgage. “It’s most important, in that situation, to be sure you will have enough cash to fund your retirement,” says Gallegos. Ask yourself: Can you afford to pay more each month? Do you have an emergency fund that could cover six months’ living expenses? If the answer is no, chillax on the idea of paying the mortgage early. Continue paying your regular monthly payment until you can answer yes.

              Is a move coming up? If you might sell your house soon you would do better to put extra cash in a fund for a new home down payment. “The market is still a bit wobbly in most locales,” says Gallegos. “Lenders are demanding higher down payments than in recent years. If you plan to relocate soon, hang on to your cash for the move,” he adds.

            Check for prepayment penalties. Most mortgage loans do not have a prepayment penalty. But those that do present heavy charges for paying the balance off early. Review the Truth in Lending disclosure to find out.

             The earlier, the better. Making extra payments earlier in the life of the mortgage makes a bigger difference in the amount of interest the bank collects over the years.

            Analyze the mortgage interest deduction. Homeowners who itemize deductions reap tax benefits from paying mortgage interest. Naturally, paying a smaller amount of interest results in a lower total itemized deduction amount. (To find the potential savings, multiply the mortgage interest paid by the applicable tax bracket.) The difference could be thousands of dollars annually, so plan accordingly.

             What else could be done with the money? Find the rate of return for a paid-off mortgage with an online mortgage tax-deduction calculator. Then compare it to potential earnings on investments. Most people would fare better by investing the money instead of paying the loan, especially when considering the interest saved over time. Those who can pay the mortgage early might do well to do so and then invest what had been spent on monthly payments in a savings or retirement vehicle.

             Lastly, says Gallegos, “Paying off a mortgage can be a great relief. On the other hand, with mortgage debt, you’re paying to own your own home, with beneficial tax deductions. Either option can be a good one. Consider our complete financial picture before choosing the right path to home ownership.”

The post How to Decide Whether to Pay Off the Mortgage Early appeared first on The Faster Times.

“Don’t overlook health insurance expenses when preparing your 2010 federal taxes, or you might leave money on the table,” says Keith Mendonsa, consumer specialist with www.eHealthInsurance.com. “Self-employed people, people who were on COBRA, and people who bought their own health insurance plan may be able to deduct a portion of their expenses and get a bigger tax fund,” he adds.

Here’s what you need to know.

In addition to the standard, “above the line,” deduction, self-employed persons can also deduct the cost of their health insurance premiums from their self-employment taxes on Schedule SE.  “This is a one-time-only opportunity available for 2010 taxes, so if you’re self-employed be sure to take advantage of it,” says Mendonsa, who offers several tips.

Deduct health insurance premiums as a business expense

If you had self-employment income in 2010, you may also be able to deduct health insurance premiums you paid for yourself and your dependents as an “above the line” business expense (that is, without itemizing) on your federal tax return. Be aware, however, that you may not deduct premiums paid for any month in which you were eligible to participate in an employer-sponsored health insurance plan, and that the amount you deduct cannot be greater than your net self-employment income for the year. Know too, that you may not be able to include what you paid toward your monthly premiums as an “above the line” expense and itemize it. Talk to a tax professional to learn more about the different types of self-employment status and the tax implications of each in your state.

Itemize your health insurance and medical expenses

Even if you’re not self-employed, if you itemize on your federal tax return you may be able to deduct medical expenses from your taxable income. According to IRS Publication 502, qualifying medical expenses include monthly premiums you pay for coverage, including some Medicare premiums, copayments, deductibles, dental expenses, and costs for some services not covered by your insurance plan. Keep in mind, you can only deduct the portion of your medical expenses that exceeds 7.5 percent of your adjusted gross income. That means this deduction won’t be for  everyone, but if you, or one of your dependents were seriously ill or hospitalized last year, or if you paid COBRA premiums (without receiving federal subsidy), you may qualify.

Maximize your refund with your Health Savings Account

An HSA is a tax-advantaged savings account used in conjunction with an HSA-eligible health insurance plan. Account contributions, qualified distributions and earnings are all tax-exempt. An HSA allows you to deposit a portion of your pre-tax income into a savings account and use those funds to pay for qualified medical expenses. Unused money can be invested and accure from year to year, says Mendonsa. If you have an HSA, be sure to deduct your contributions up to federally prescribed limits. Contributions to your HSA designated for 2010 and made before April 18, 2011 can be counted toward your 2010 federal taxes. According to IRS Publication 969, HSA contributions for the 2010 tax year are capped at $3,050 for individuals and $6,150 for families.

Know that the COBRA subsidy may alter your taxable income

If you enrolled in COBRA as a result of a layoff after June 1, 2010, you are no longer qualified for the 65 percent federal COBRA subsidy, but plenty of people who did qualify for the subsidy were still receiving it in 2010. If you received the COBRA subsidy, your taxable income may increase, depending on how much money you made last year. If your adjusted gross was between $125,000 and $145,000 ($250,000-$290,000) for those filing joint returns, you are not eligible for the subsidy and should review your tax liability for the subsidy carefully.

As always, check with your tax professional for more information about what may or may not apply to you.

The post How to take advantage of health insurance expenses appeared first on The Faster Times.

             Here’s what you need to know to play the rental game.

            “If you’ve avoided this option in the past, know that renting your vacation home has never been easier or more convenient than now,” says Christine Karpinski, author of How to Rent Vacation Properties by Owner, Second Edition.

            She says that vacation rental sites like HomeAway.com, VRBO.com and VacationRentals.com attract millions of vacationers each year, plus they provide great support to the homeowners who list their properties. “Not only do they make the rental process almost turnkey for you, they teach you how to avoid the kinds of rookie mistakes that lead to the horror stories you’ve probably heard through the grapevine – or at least, that you’re imagining now.”

             Do the math

            If you rent out your property only 17 weeks out of the year, the revenue you collect can pay your annual mortgage costs plus all other association rental bills. Rent it more than that you could even, gasp, make a profit.

            FORGET THE MYTHS

            They probably won’t trash the place. You’ve probably heard that renters will trash your property. Karpinski says this rarely happens though. Whether they find you online or go through a property manager, most vacationers understand that they’re guests in a private home. “They are likely to treat it more respectfully than they would a hotel room,” she says. Then too, if you, as the owner are in charge of renting it out, you scope out the rental candidates and if they don’t pass your muster, turn the business down. Karpinski recommends asking them questions about the length of their stay, the number of people, whether they will bring pets, and more. “No matter who you are renting to, take a security deposit and be clear about how the property should be left in order for them to get the deposit back after their stay,” she adds.

             It cost a lot of money and it’s difficult to get the word out about your property.  Hog wash, most people who sign on with a reputable listing site find that guests come to them, says Karpinski. A survey conducted through HomeAway, Inc. indicates that vacation homeowners who have taken the plunge to rent out their properties “by owner” find it very easy and inexpensive to do so, says Karpinski. For between $169-$550 a year, you can rent on VacationRentals.com, VRBO.com, or HomeAway.com, she says. “Most listing websites are worth their weight in gold,” says Karpinski. “They tend to be inexpensive and if you craft your listing carefully, you may find this is all the marketing you need to do. Just remember: There is no advertising more effective than word-of-mouth. Give your guests a great experience, and they’ll spread the word,” she says.

            Property upkeep will be a nightmare. One of the most common excuses from non-renters is that the homeowners don’t want to be woken up in the middle of the night because their renters are locked out or because a toilet has overflowed. This problem can be solved by simply putting a good plan in place and by hiring the right maintenance and cleaning people in the city or town where your property is located. “To find the right crew, visit your property and introduce yourself to the staff working at the homes in your neighborhood,” suggests Karpinski. Ask around the area for recommendations and inquire about negative experiences as well. Once you have hired your staff, have a friend for family member stay at the property and evaluate the level of care they receive. Also, if you provide your renters with clear instructions on what to do in these situations, you can avoid most calls of this nature.

             Once you take the plunge and start renting by owner, you’ll probably ask yourself why the heck you waited.

             Kapinski offers this reminder, “You know how sometimes the things you dread and resist the most turn out to be the best decisions you ever make? Renting out a vacation home is like that for many people. It can actually be fund and rewarding. Your guests can become a second family of sorts and being able to bank an extra, 10, 20 or $30,000 a year can help cure what ails in this finicky economy.

The post How to Cash in on Your Vacation Home appeared first on The Faster Times.

              Here’s what you need to know.

             The folks at Freedom Tax Relief point to nine aspects of the 2010 Tax Relief Act that might benefit you in 2011.

              Extended unemployment benefits. The tax compromise that passed in mid-December extended emergency unemployment compensation (EUC) so that unemployed workers can receive a total of up to 99 weeks of unemployment payments. Benefits are issued according to specific rules. Workers who have already received benefits for 99 weeks will not be eligible for any additional benefits.

             Tax cuts continue. The 2010 tax compromise extends existing tax cuts for all taxpayers for two years. This means you will still benefit this year from several tax breaks, such as the removal of the marriage tax penalty—meaning that taxpayers who are married filing jointly do not pay more tax than two taxpayers filing separately.

             Credits stay too. Tax payers will also benefit financially from the extension of several tax credits. What’s on the list? The Child Tax Credit (up to $1,000 for each dependent child under age 17), the Earned Income Credit (which helps people with a low income – and the maximum income to qualify increases this year), and the American Opportunity Tax Credit, which assists those attending college.

            Fatter paychecks. For 2011, workers will pay 2 percent less in Social Security deductions from their paychecks. This could amount to more than $2,000 for someone earning the maximum subject to FICA tax (just below $107,000 per year).

           Deduct, deduct, deduct. For 2011, deductions can be itemized no matter what percentage of income they comprise. This should allow more folks to claim deductions.

             Big breaks for estate and gift taxes. The 2010 Tax Relief Act makes estate and gift tax limits “portable” between couples. Simply put, if one spouse does not use his or her limit, the other one can. Gift-givers pay no tax on gifts of $13,000 or less ($26,000 for married couples) to any one person, with a lifetime limit of $5 million – up from $1 million last year.

            Rethink IRAs. With new rules, more taxpayers will qualify for deductions for payments to individual retirement accounts (IRAs). The IRS calculates how much tax payers can deduct based on their AGI (adjusted gross income). The limits are slightly higher in 2011 than in 2010.

           AMT revamp. You’ll be able to take more credits against the alternative minimum tax (AMT). The AMT exemption also will decrease.

            Count those miles. Self-employed people who drive their cars for business and people who use their car to travel to medical appointments or for charitable causes might be able to deduct their mileage at 2011 deductible amounts. Know however, that you must follow certain tax guidelines, including keeping a record of total miles driven and the specific tax-deductible purpose. For 2011, the IRS has established deductible mileage amounts at 51 cents per mile for business miles driven, 19 cents per mile for medical miles, and 14 cents per mile for charitable purposes. Mileage also might be deductible (at 19 cents per mile) for some moving purposes.

             Many of these credits and deductions are subject to income limitations or other restrictions. Talk to your tax professional.

               While maybe you’re procrastinating about putting 2010 taxes to bed, don’t let history repeat itself. Get going now for 2011.  Avoidance won’t make Uncle Sam go away, and with a bit of planning, you may just have less to cry about next time.

The post How to Get a Jump on Next Year’s Taxes appeared first on The Faster Times.

             Here’s how to spruce up your home for a spring sale.

             Know what buyers want

             First off, it helps to have a clue about what people want. In a recently released research from Better Homes and Gardens, the top ranked living spaces desired in a new home include: separate laundry room (81%); additional storage space, including walk in closets or built ins (79%); a home office space or workspace, (67%); outdoor grilling/living area (67%); at least one bedroom with its own private bath (65%) and everyday eating space in or close to the kitchen (64%). Hopefully you have some of that to offer.

             Set the best price

            “There is no other seller preparation more effective than having the right price,” says Diane Saatchi, senior vice president with Saunders & Associates Realty. Know, however, that the right price has nothing to do with what it cost you, what your mortgage is, or what you need for your next residence. “It has everything to do with comparison to recently sold, similar properties,” she adds.

            Just remember, “Price, price, prices is to selling as location, location, location is to buying.”

            Get attention

            First impressions matter. “A good first impression of a home can add as much as 10 percent to its value,” says Sally Morse, director of creative services for Hunter Douglas.

            Start at the curb. Outward appearances have always been important when selling a home. In today’s lackluster market, they are crucial, says Nicole Hall, editor-in-chief at LendingTree. Buyers now have so many choices, a lackluster exterior might just prompt them to drive on to the next house on their list. Start initially on the curb and make sure everything in sight is as neat as can be – including the mailbox, walkways, front door, railings, house numbers and the like, she adds.

             Paint the exterior of your house and any outside buildings. Put out new welcome mats.

             Update landscaping

             You may not be able to wait for April showers to bring May flowers. If you’re listing your home in March, says Hall, make sure you have flowers in March. Plant daffodils or crocuses in your gardens, window boxes and in pretty pots. Trim overgrown shrubs, trees and bushes, adds Saatchi. You don’t want leaves or sticks in sight either.

            Freshen the yard with fresh mulch and pine straw, generally get everything looking like it is well cared for and inviting, says Atlanta realtor Bill Golden.

            “Pressure wash everywhere, driveway, sidewalks, decks, porches,” advises Carson Cobb, a broker with REMAX United in Raleigh, North Carolina.

             Clear out clutter

             First and foremost, says Julie Reynolds, a residential real estate expert with Move, Inc., clearing out the clutter is key to staging your home in the spring. Make sure to avoid crowded kitchens and bathrooms, too much furniture and an overabundance of family photos and knickknacks.

            Start packing up, giving away, emptying out before you list for sale, advises Saatchi. Most home sellers plan to have a yard sale just before they move, better to do it sooner, she adds. The house will show better with less stuff. Closets, attics and basements will be easier to see and will look larger to prospective buyers when they aren’t brimming with stuff. And as an added benefit, it will be easier to move when the time comes.

             Spring clean

             “Get your house Q-tip clean before you list,” says Hall.  Thoroughly clean every inch of the home, from baseboards to blinds, and all the nooks and crannies you never notice but that buyers will.

              Think clean, fresh, inviting scents and keep it that way. You want to be ready to show your home on short notice. In a pinch, light a candle, use disposable window wipes to wipe down bathroom and kitchen fixtures and mirrors, have a cut-up lemon on hand to freshen up the disposal, turn on lights, and stash any mail or loose shoes.

            Polish floors and pay attention to rooms you might not usually clean.

             Avoid nasty surprises

             Don’t let a buyer’s home inspection uncover problems. Find out for yourself before you list by having an inspection and then do the repairs or acknowledge the work is needed and price accordingly, says Saatchi.

            Check your file with the local building department. If there are any outstanding permits or work done without permits, best to know sooner, as they will have to be addressed.

            Find out if there are any liens on the property, judgments against you and any issues with neighboring fences, driveway or other encumbrances.

            While you may the winter blues have you a bit weary, get going. Says Cobb, “Spring is a fantastic time to sell your house.”

The post How to Get Your House Ready for the Spring Home Hunt appeared first on The Faster Times.

Eleanor Blayney, a certified financial planner and Consumer Advocate for Certified Financial Planner Board of Standards has a solution for making sure financial to-do lists get done in 2011.

Quite simply, though you just barely got going, start over and keep it simple. The usual financial resolutions can be given new life as smaller and more attainable “Re-Solutions” for 2011.

Here’s how.

“The key to keeping financial New Year’s resolutions is to apply the principle of little and often,” says Blayney. “Grandiose goals need to be whittled down into goals with specific, actionable steps, and there must be a commitment to updating these new goals frequently,” she adds.

Live within your means

Turn this goal into a reachable action by committing to avoid all overdraft and late fees in 2011. Keeping monthly tabs on current account balances and credit card payment dates is an easy, simple way to avoid these fees, says Blayney.

Get out of debt

Breaking this into baby-steps can change this resolution into an enormous financial achievement. Start by paying off more than required on credit cards, auto loans and mortgage – even if it is only a few dollars. Use auto-pay systems to make regular extra payments, and increase the amount of the payments at regular intervals. Once the auto-transfers are set up, the goal will begin to take care of itself, assures Blayney.

Save more

Here is another resolution that is best accomplished a bit at a time. For working Americans, there is no excuse for not having money to save this year, thanks to a recent tax change. Starting with the first paychecks in 2011, the amount of employee contribution to Social Security will go down by two percent, giving most people a slight increase in their take-home pay (at $50,000 gross wages paid every two weeks, it will amount to about $38 per paycheck). Have this money automatically put into a money market account. After a year, the account will accumulate to around $1,000 says Blayney, which can be invested or used as an emergency fund.

Prepare a will

This is a perennial “must do” for many, but one that is rarely kept. “There seem to be many ‘what ifs’ that people often feel overwhelmed,” she says. By applying the “little and often” rule, this important task can be broken down and completed. First, understand that estate planning is not a one-time event, but a lifelong process. Wills, trusts and beneficiary designations will need to be reviewed and adjusted to changing life circumstances every few years. Second, when creating an estate plan, forget about the “what ifs” and keep the focus narrow. The only question, says Blayney, that needs to be answered is: “If I died today, how should my affairs be handled?”

“Financial resolutions are meant to be kept, and not necessarily checked off and discarded. If you see them as guiding principles, rather than discrete accomplishments, they become more of a one-time goal, but a prudent way of life. And that is something we should all resolve to do.”

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Review your credit report. Much of your financial future depends on the contents of your credit report. Therefore, your first step should be to obtain your report, review it for accuracy and dispute any errors. Since you can access your credit report for free, there is no reason to neglect this important piece of your financial life, says Gail Cunningham, spokesperson for the NFCC. You are entitled to one free report from each of the three major credit bureaus once every 12 months.

Obtain your credit score. The three digits that comprise your credit score are a major dictator of whether or not the lender will extend credit, and at what interest rate. It is likely that you’ll have to pay to purchase your score, but it will be money well spent, she says. “Be sure you understand the range within which your score falls, as each score has it owns scale. Further, take the necessary steps to improve your score,” she adds. A high school equals a low interest rate, saving you significant money over time.

Reduce debt. If you’ve dug a deep financial hole, stop digging. Piling new debt on top of old is a red flag that you are living beyond your means. Lock up your credit cards until they’re paid in full, and meanwhile, reach out for help from a legit credit counseling agency. Delay only makes the problem worse.

Commit to save. Too many folks are great spenders and lousy savers. “Without a well-funded savings account, you are on a very slippery slope, one that becomes treacherous with the next unplanned expenses,” points out Cunningham. Put 10 percent of each take-home check into a savings account. Find extra money to dedicate to saving by putting all raises, bonuses, birthday checks, and any other windfall monies into savings. This will create a cushion that should see you through most short-term emergencies.

Get organized. Create your own personal financial center where you can instantly put your hands on your family’s financial records. Your center doesn’t have to be a fancy home office. It could be an accordion folder. “The point is that you know where everything is,” says Cunningham. Place original documents such as a will or your mortgage in a safe deposit box, and keep a copy at home.

Avoid late fees. Pay your bills as soon as you get them. This way you’ll never be late. Late fees are not only a waste of money, but put a ding on your credit report and can lower your credit score. Consider setting up online bill pay with payments large enough to cover at least the minimum amount due.

Avoid overdraft fees. Get into the habit of recording each transaction into your check register on the spot. Also take the time to balance your checkbook each week, and reconcile your bank statement each month. When you’re organized you can cut down on paying overdraft fees because you forgot to write down an ATM withdrawal.

Track spending for 30 days. Cunningham suggests everyone in the household who spends money participate. Write down every cent that is spent. At the end of the month, come together to review the spending. “This is the only way you can truly know where you’re hard earned money is going,” she adds.

Create a spending plan you can live with. Once you know where your money is going, deice how you want to better allocate it. Continue tracking with the new plan in place. Keep doing so until you find a plan that is right for your family. “Make it too strict and no one will stay on board. Make it too lenient and you won’t accomplish anything,” says Cunningham. Find the middle ground.

Take advantage of free money. Contribute the maximum to your retirement plan at work, or at least, meet the matched amount or else you’re throwing away free money. Also, inquire about the availability of Flexible Spending Accounts or Health Savings Accounts, all of which can lower your taxable income.

Do an annual insurance check up. You don’t want too much or too little insurance. Make an appointment with your provider and confirm that your coverage is exactly what you thought you were paying for. Ask for ways to lower your premiums and ask about any discounts for loyalty, good driving, and bundling of multiple policies.

Investigate refinancing your mortgage. Even though rates have been rising, historically, they are still low, potentially saving you significant money over the life of your loan. There are multiple online calculators that can help you evaluate the options. Do not extend the term of your loan, however, in order to get a lower monthly payment unless this is absolutely necessary to stay afloat.

Says Cunningham, “A new year can mean a new you, at least a new financial you. Put one of the above steps in place each month, and this time next year you’ll see the new financial you. Even better, put one tip in place each week, and you’ll be on your way to financial stability at the end of the first quarter of 2011.”

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