Not that long ago the whole idea of doing any financial transaction over the Internet was looked at with great skepticism and a bit of paranoia by the average consumer, but that has all changed. These days the online credit card account is a common resource for most people who can use online banking and Internet credit card tools to do everything from online credit card applications to bill payments and online credit card travel arrangements or shopping.
The only difference between traditional credit card use and online credit card management is that instead of dealing through the mail, over the phone, or in person at your bank you handle transactions and other procedures virtually – by using email or going to your online credit card company’s website. You can even get credit card offers through email, respond to them on your computer, fill out an online credit card application, and get a new credit card approved in your name – all with a few clicks of the computer mouse.
18 Dec
Posted by admin as Corporate Finance
The first time getting a new credit card has become a really important rite of passage in the modern world of consumerism, because without a valid credit card it is much harder to transact business, shop, and enjoy the convenience of carrying plastic. But if you apply for a card and get a credit card no or a rejection of your application, don’t panic. Just because one card company turned you down it does not mean that other credit card companies will say no to you.
What companies look for on your credit card application is a track record of good borrowing and timely repayment of your debts. So first of all, lots of people who are applying for a credit card but have never had one before are faced with a challenge. Since they do not have a credit card they also do not have any credit history, and they me get a credit card no acceptance reply. I Read more…
The Canadian dollar – known as the “loonie” – gained more than half a percent on its US counterpart today, appreciating to C$1.0663 per U.S. dollar at 8:19 a.m. in Toronto, from C$1.0711 yesterday. One Canadian dollar buys 93.79 U.S. cents. The increase is due mostly to an increase in oil prices as well as a big jump in the earnings for RIM, the Canadian-based manufacturer of the Blackberry.
Bloomberg
18 Dec
Posted by admin as Corporate Finance
Welcome to new visitors from GetRichSlowly and Mint.com. For the regulars -
I just posted on JD Roth’s blog , Get rich Slowly, today – How I Cut my Comcast Cable Bill by 33% Without Losing Any Service. If you want to cut your cable bill, it offers up some good tips on how to haggle in a non-stressful way. JD has a great community if you’ve never read his blog. This post recently was highlighted on Lifehacker.
Also, two recent posts on Mint.com this week that you might want to check out as well. The first, tips on year-end tax strategies to keep in mind, the second (which hit the first page of Digg) was on the new Financial Reform Bill that just passed the house and what it might mean for you. I am a regular staff writer over at Mint and you can check out my archives here.
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Many of you probably know of the 2010 Roth IRA conversion loophole allowing taxpayers with very high incomes to gain access to all the tax benefits Roth IRA’s have to offer. As always, of course, there’s a downside: you have to pay income tax on the total amount of the conversion. And since very high-earners are the one’s most likely to benefit from this loophole, it’s safe to assume many are in the very highest tax bracket. Ouch.
The 2010 Roth loophole contains one particularly juicy little-publicized tidbit that makes the prospect of converting to a Roth IRA much more enticing. Indeed, the following provision was added by Congress specifically to tempt high-income taxpayers with large tax-deferred nest eggs to convert sooner rather than later in an attempt to boost short-term tax revenue (which I think is unwise, but that’s a story for another day).
If you choose to convert to a Roth in 2010, the IRS will allow you to spread out the taxes due on the conversion between 2011 and 2012, a huge benefit that isn’t available if you convert in 2009 (or any year thereafter except 2010). Why is this so huge? Assume you are in the highest federal income tax bracket (35%) and have a portfolio of just over $1,000,000 to convert. If you paid taxes on the entire conversion in a single year, you would owe $350,000 in federal taxes alone. That’s enough to make you think twice, isn’t it?
By spreading the tax burden out over 2 years, however, high-income taxpayers with large conversion amounts stand to benefit considerably. In the example above, you would owe taxes on $500,000 in 2011 and $500,000 in 2012, which works out to $175,000 in federal taxes due per year. Since you would be able to hold onto that $175,000 a year longer, you have the ability to invest and earn a return on it. That $175,000 invested conservatively in a 12-month high interest CD paying 2% would earn an extra $3,500 risk-free. Not a huge amount to be sure, but it’s free money. You might as well take it.