Definition of Dividend: A Passive Income

We’ve all heard about trading shares on the stock market. Investors often buy and sell stocks in an effort to turn a profit fairly quickly. They buy when prices are lower than normal, then sell when they rise. But this is only one of the ways to make money with stocks. If you hold on to a stock rather than selling it, you have a chance to receive dividends. A dividend is a portion of the company’s profits that is distributed to shareholders. Shareholders may

Coverdell Education Savings Account Explained

With education costs ever increasing, it’s important to get a head start. The Coverdell Education Savings Account, or Coverdell ESA, can help us save the money we need for our children’s schooling, and it offers some attractive tax benefits. Formerly known as an Education Individual Retirement Account, the Coverdell ESA does have some things in common with IRAs. Contributions are not tax-exempt, but interest is as long as the funds are used for education. Account owners can choose from a variety of investment strategies, including

Why Should I Have an Emergency Fund?

Some people pride themselves on having a good handle on their finances. They pay their bills in full and on time each and every month. They manage their credit cards expertly, and even though they could get all the credit they want with ease, they refrain from opening new accounts that they don’t need. But if they do not have an emergency fund, they could still find themselves struggling at any time. No matter what your income level, having an emergency fund is of the

Sub-Prime Mortgages: An Explanation

A sub-prime mortgage is that which is given to homeowners who have less than a stellar credit rating. For example, someone with a FICO score of 600 or lower may be eligible for a mortgage, but the interest rates would be much higher than for someone with a FICO score of 700 or above. The sub-prime mortgage crisis was a result of homeowners who dealt with unscrupulous lenders. These lenders offered mortgages, in some instances, with no money down. They then resold the mortgages to

The Hidden Cost of Bank Fees

There have always been bank fees, but it has become more apparent recently that banks are raising their hidden fees and charging their good customers as well. Considering the banks have just been given more than 250 billion dollars from the U.S. Treasury, the idea that they are still imposing these ridiculous fees is ludicrous. According to MSN Money’s Liz Pullman Weston, here is a rundown of these charges: ATM. If you use the ATM bank to withdraw money from another bank, you will incur

Which Savings Account Is the Right One for Me?

There are several types of savings accounts that anyone can open at their local bank. Let’s take a look at four of them. 1. The first is a regular passbook savings account. The bank may require an initial deposit in order to open the account. However, you can deposit and withdraw money at any time, as long as you keep the initial balance in the account. You can check the interest received on passbook savings by comparing banks either online or by visiting their location.

Mortgages Explained

There are several types of mortgages that are available, notwithstanding the sub-prime mortgage crisis and its effect on homeowners. 1. Fixed rate mortgage – This is a mortgage where monthly payments remain the same throughout the entire term of the loan. Note that there are two types of fixed rate mortgages: 15-year and 30-year. The benefits of both are described by Bankrate in this way: “With 30-year loans, borrowers generally get lower monthly payments even though their rates are higher. That’s because the longer amortization

Internet Banking: Advantages and Disadvantages

In order to determine the advantages and disadvantages of internet banking, one must ask an important question from the get-go. Is online banking safe? If you visit the FDIC website, there are several pieces of information to be aware of before deciding to bank online. * “Read key information about the bank posted on its website. * Protect yourself from fraudulent websites. * Verify the bank’s insurance status. * Check the FDIC’s online database of FDIC-insured institutions. * Be aware that a bank may use

Find the Right Mortgage for You

In this current economic situation, one problem that is still ongoing is the housing foreclosure crisis. Foreclosures are increasing every month, and experts expect that more and more homeowners will face this eventuality sooner rather than later. If you currently hold a mortgage and are trying to find ways to reduce the monthly payments, here are some suggestions you may wish to utilize. One way in which you can save on interest rates is by seller financing. This means that the payments are made directly