Obama's Government Grants Program Provides Relief from Your Debt

Author: Lindsy Emery


Every so often, it seems like all things go wrong at once. You need a new tire, the washer breaks down, your son breaks his arm and your wife has her hours cut at work. When these things happen, sometimes the only alternative that we think we have is to pull out the plastic and begin charging our way through the problems. However, this method doesn't work for too long because soon the cards have reached their limit and we are fighting to make the minimum monthly payments. If this is a situation you find yourself in, then perhaps it is time for you to get debt relief through government grants.

Believe it or not, each year there are literally billions of dollars given to government agencies to provide grants for qualified individuals and families. Unfortunately, not many people know about these grants and the money is never awarded. Grants can be handed out to those who meet certain requirements and sometimes, people receive their money in as little as seven days.

The trick is knowing where to look and knowing how to apply. Begin by entering the search phrase: government grants for debt relief in your computer. The search engine should return many searchable databases. Once you find a database that you like, you can narrow your search. Most grants are open to U.S. citizens over the age of 18.

Don't let a bit of bad luck ruin your financial life. Take the time to see if there is a government grant perfect for you. You will be glad you took the step.

Article Source: http://www.articlesbase.com/finance-articles/obamas-government-grants-program-provides-relief-from-your-debt-1178207.html

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***Update***
I have done a bit of research for you. These Government Grant Experts can help you get the grants you deserve by helping you get out of debt fast. You can find out if you qualify for a Government Grant for free!

Click here to fill out a short form to save your finances and get out of debt as early as this week!

401K Early Withdrawal Penalty

Author: Jennifer Quilter

The 401K early withdrawal penalty is a heavy price to pay, that if at all possible, should be avoided.

This fee is paid when you cash out your account before turning 59 years and 6 months old. You can only do this when you've reached retirement age (in which case there is no fee) or when you've left your current employer. You have a very short amount of time to decide what to do, usually about thirty days. When you leave your job you can decide to leave the money in it's current plan, rollover to your new employers plan, roll into an IRA (independent retirement account), or cash out.

When you cash out the 401K early withdrawal penalty takes a great deal of your accounts balance. There are three different parts that must be paid: federal taxes, state taxes, and a ten percent penalty. The federal tax percentage is determined by your tax bracket, which can be found on your last years tax papers. State tax varies state to state, but is typically somewhere between five to ten percent. When added all together these three parts can amount to thirty to forty percent of the amount you take from the account, plus the money the account would have accumulated up to the point of retirement.

If you need money now and see this account as your only option for funding, there are some circumstances where you can use this money and avoid the 401K early withdrawal penalty.

If you are in a situation of economic hardship, where you will lose your home or have medical bills, you can fill out economic hardship paperwork and apply to get take some money from the account. You do have to repay this money, though.

Some plans will allow you to do 401K loans. You are allowed to borrow from the account up to 50% of it's balance, or $50,000 (whichever is less). You do have to repay this money and pay interest, but the interest rate is low, and the interest you pay is put right into your account, so it's not really a loss. This money does have to be repaid within five years or else it is treated as though you originally cashed out and you have to pay the early withdrawal penalty.

With some plans you are also able to withdraw to use the money to pay for college courses if the classes will further your current career. You'll want to check with your plan provider to see if this is available to you.

Because of these harsh fees, and the loss of your main retirement savings, it is important to avoid paying the 401K early withdrawal penalty.

Article Source: http://www.articlesbase.com/personal-finance-articles/401k-early-withdrawal-penalty-1274287.html

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Visit my site to learn more about 401k cash outs and everything else about your 401k IRA options.

What to Do With Your $950 Tax Bonus Payment?

Author: Scott Keefer

Depending on how the negotiations go in the Senate regarding the latest stimulus package developed by the federal government, there is a chance that many will be receiving a $950 payment some time in April. So what should you be doing with that money?

My response may not be what the government is hoping to hear but my first reaction is to say save the money.

With interest rates falling by the month the next logical question is where should you put the saved money? Here are some ideas the merits of which will depend on your personal situation:

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  Put it towards that non tax deductible debt, the higher interest rate options first - Eg credit cards, personal loans etc
  


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  Put it towards your mortgage - if you have an offset account even better, this will reduce interest payments but keep the cash accessible. The interest cost reduction from putting it towards your loan will definitely out weigh any interest you would get from saving especially if you are stuck in a fixed interest loan.
  


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  First Home Savers could put it towards a First Home Saver Account and by doing so get a 17% extra kickstart from the government - an extra $161.50. The money goes into a 15% tax on income earnings within the account which could also be beneficial for some but one word of warning, the returns on the savings will not be flash going forward as most of the options offered are for the funds to sit in cash.
  


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  Add the $950 to your investment portfolio - unless Australian share dividends are cut by 60% going forward the return you are likely to get from the dividend payments from shares should beat cash returns.
  


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  If you won't need the money before retirement you could make a contribution into super.
  
  
  
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    If you are likely to earn less than $30,352 during the current financial year then a personal contribution of $950 will entitle you to receive a government co-contribution of $1,425
    
  
  
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    If you earn less than $60,352 then you could contribute some of it as a personal contribution and receive some government co-contribution and then use the rest to pay for your regular cost of living and then salary sacrifice extra into super. An extra $950 in the hand would allow you to salary sacrifice $1,385 back into super and maintain the same amount of cash in hand to pay for your living costs. By doing this you would save $230 of tax. (15% superannuation contributions tax compared to the 30% marginal tax rate plus 1.5% Medicare Levy for those earning more than $34,000)
    
  
  
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    There are other superannuation contribution rules that may determine whether you are or are not able to make this extra contribution (for instance contribution limits) and these should be checked before jumping in.
    
  
  
  
  

There is actually one possible option to spend the money that is worth considering:

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  If you are in small business, use the money towards purchasing $1,000 or more of business equipment which, if the stimulus package gets passed as it is, should entitle you to a 30% rebate from the government. A saving of $285 on the $950. But only if you NEED the equipment don't be sucked into the trap of purchasing unnecessary equipment!
  

It will be interesting to see what the end package looks like. What ever happens I am sure there will be some great financial strategies that can be employed to make the most of what is on offer.

Regards,
Scott Keefer
www.acleardirection.com.au

Article Source: http://www.articlesbase.com/personal-finance-articles/what-to-do-with-your-950-tax-bonus-payment-755629.html

About the Author:

Scott Keefer is the General Manager of A Clear Direction Financial Planning and has been a partner in the business since January 2007. He has completed a number of degrees related to financial management including a Masters of Financial Planning and Bachelor of Commerce. He also holds a Graduate Diploma of Education. Scott is currently a candidate in the Chartered Financial Analyst (CFA) program.



He is an Authorised Representative of FYG Planners Pty Ltd, Australian Financial Services License 224 543.



Prior to joining the business, Scott was involved in secondary education where he held middle management positions in schools in Brisbane and Jakarta, Indonesia. Part of these experiences involved teaching Indonesian students about Business Management and Economics principles as relate to the Australian context.



Scott is a co-author of the book 'It's Time You Knew the Truth: Building Investment Portfolios That Work' and ‘A Clear Direction – Your Guide to Being a Successful CEO of Your Life’. He has a passion to work with people at all stages of the financial planning process helping them to build successful financial solutions through well structured investment portfolios.