It is that time of year again when companies hold their annual open enrollment. This is when employees have the opportunity to change medical or dental plans, and to opt into making contributions to a flexible spending account (FSA). In general, a flexible spending account allows one to deposit pre-tax dollars into the account to pay for medical expenses, or to pay for dependent care. (Note that these are two different types of accounts.) The ability to use pre-tax money to pay for expenses is a good benefit that can save you money.
For the coming year (2011), there is an important change to FSA plans. Specifically, the rules have changed for the purchase of over-the-counter (OTC) medicines and drugs (such as OTC allergy medicines, pain relievers, antacids, cough medicine, etc.). This change is due to the federal health care reform law, the Patient Protection and Affordable Care Act of 2010 (PPACA). (This was a part of President Obama's health care reform plan.)
Previously, all of these OTC purchases were covered by flex spending accounts. However, I've been informed that starting in 2011 these OTC drugs and medicines will not be reimbursed through an FSA unless they are prescribed by a medical practitioner to treat a specific medical condition. So, the bottom line is if you plan to purchase these OTC items through a flexible spending plan, you'd better have a prescription first.
One other thing to keep in mind when contributing to an FSA is that most flex spending accounts operate on a "use it or lose it" basis. This means that any balance you have in the account at the end of the calendar year is forfeited to your employer. This is something that I would rather not do, since I never want to leave any money on the table.
Warning:
In the current economy, I also want to warn my readers of one more potential hazard with FSAs. Having been downsized twice in the last decade, I can tell you that the "use it or lose it" provision also applies if you are terminated without cause (i.e., laid off). Any money that you have left in your FSA plan when you are terminated will be kept by your former employer. This may seem totally unfair, but that has been my real life experience.
Need fast cash? Get cash advances online from www.CashAdvancer.com today!
PFS
Tuesday, October 26, 2010
Friday, October 15, 2010
Update on Verizon Frontier Spin Off
A few months ago, I wrote a post about how Verizon Communications (NYSE: VZ) shareholders received shares in Frontier Communications (NYSE: FTR) as the result of a spinoff from Verizon. My post described how to calculate the cost basis of an investment after a spin-off. As I mentioned in my post, I had a few question about the spin off and contacted Verizon investor relations about these questions.
Verizon's investor relations website provided a document that explains most of the mechanics of the spin off. One of the items that I had a question about is how that document arrived at the "opening trade" price of Verizon (VZ) on July 2, 2010 (date of the spin off). They listed the value as $27.05 per share of Verizon. I checked a couple of data sources (i.e., Google and Yahoo Finance) that list the opening price as $27.17 on July 2. However, I also subscribe to a third-party data service that lists the opening price as $27.05, which was the same value used in Verizon's calculations. So, I asked Verizon to explain the reason for this discrepancy.
Verizon's response was that the $27.05 price is the "NYSE open" as compared to the "consolidated open." Well, I'm still not 100% clear on this issue. But I gather that the $27.17 price is the "consolidated open" price. Can anybody shed additional light on this topic?
One of the commentators on my original post asked about previous spinoffs from Verizon. I responded that my post only covered the most recent spin-off of Frontier from Verizon. As you may know, Verizon has had a long history of spin-offs and mergers: the original divestiture of AT&T to form Bell Atlantic, the merger with GTE, the spin-offs of Idearc, FairPoint, and finally Frontier. And, I didn't even mention NYNEX, Contel, and MCI... All this data gives me a headache. So for more information about previous mergers and spin-offs involving Verizon Communications you can look here:
http://investor.verizon.com/shareowner/cost_basis_worksheet.aspx
Lastly, I mentioned that a small portion of the Frontier cost basis may be paid out as "cash in lieu" (CIL) of fractional shares. For me this worked out to only $0.06 (6 cents) of cash-in-lieu. Theoretically this amount is considered income, and from the IRS standpoint tax needs to be paid on it. This transaction should be accounted for in the cost basis of the Frontier shares: The tax basis for Frontier is decreased by the amount of CIL received. I personally use Microsoft Money, financial management software, to track my investments. In the program, this transaction is allocated as a "Return of Capital" for Frontier of $0.06. I am not certain how to enter the equivalent transaction in Quicken, but I would guess that a similar entry can be made.
So, is everything as clear as mud now?
Need quick cash? Get instant loans from www.MyPaydayLoanCash.com today!
PFS
Verizon's investor relations website provided a document that explains most of the mechanics of the spin off. One of the items that I had a question about is how that document arrived at the "opening trade" price of Verizon (VZ) on July 2, 2010 (date of the spin off). They listed the value as $27.05 per share of Verizon. I checked a couple of data sources (i.e., Google and Yahoo Finance) that list the opening price as $27.17 on July 2. However, I also subscribe to a third-party data service that lists the opening price as $27.05, which was the same value used in Verizon's calculations. So, I asked Verizon to explain the reason for this discrepancy.
Verizon's response was that the $27.05 price is the "NYSE open" as compared to the "consolidated open." Well, I'm still not 100% clear on this issue. But I gather that the $27.17 price is the "consolidated open" price. Can anybody shed additional light on this topic?
One of the commentators on my original post asked about previous spinoffs from Verizon. I responded that my post only covered the most recent spin-off of Frontier from Verizon. As you may know, Verizon has had a long history of spin-offs and mergers: the original divestiture of AT&T to form Bell Atlantic, the merger with GTE, the spin-offs of Idearc, FairPoint, and finally Frontier. And, I didn't even mention NYNEX, Contel, and MCI... All this data gives me a headache. So for more information about previous mergers and spin-offs involving Verizon Communications you can look here:
http://investor.verizon.com/shareowner/cost_basis_worksheet.aspx
Lastly, I mentioned that a small portion of the Frontier cost basis may be paid out as "cash in lieu" (CIL) of fractional shares. For me this worked out to only $0.06 (6 cents) of cash-in-lieu. Theoretically this amount is considered income, and from the IRS standpoint tax needs to be paid on it. This transaction should be accounted for in the cost basis of the Frontier shares: The tax basis for Frontier is decreased by the amount of CIL received. I personally use Microsoft Money, financial management software, to track my investments. In the program, this transaction is allocated as a "Return of Capital" for Frontier of $0.06. I am not certain how to enter the equivalent transaction in Quicken, but I would guess that a similar entry can be made.
So, is everything as clear as mud now?
Need quick cash? Get instant loans from www.MyPaydayLoanCash.com today!
PFS
Friday, October 1, 2010
Guest Post: Reduce Your Debt By Settlement
If you negotiate with your creditor then you can reduce a partial amount of the outstanding balance. Settlement companies are at the service of the debtors to reduce debts and make the payment plan affordable. At least 40 to 60 percent of the total debt is reduced.
Before you plan to file bankruptcy find out whether you can settle your debt or not. As filing bankruptcy not only hampers the credit score but also ruin your financial career. Therefore it would be advisable to try other alternative other than bankruptcy in order to reduce your debt. As the impact of filing bankruptcy remains on your credit report for 10 years, within these years you might face difficulty to acquire loan.
It would take 1 to 2 years for the entire process of debt settlement and for you to get out of the trap of debt. On your behalf the debt settlement companies would contact the creditors in order to negotiate your debt. After you are being represented by them the creditors usually do not contact you. As the creditors can see a fine ray of hope to get back their money after debt settlement so the creditor harassment is at a halt.
Debt settlement works:
You have to sign a legal paper with the debt settlement company that is known as the "Limited Power of Attorney". A contact needs to be signed by you and make a monthly payment that would be deposited into the "Settlement Account". This money would be distributed among the creditors by the settlement company. Once the payment has been made the clients can unburden themselves from the torment of debt. In this way you can get rid of debt without ruining your credit history.
Advantages and disadvantages of this program:
What are the advantages of debt settlement program?
1.As a part of your debt is wiped out after settling it so debt settlement is considered to be an effective process. In this way you can fix your monthly budget and the repayment plan would also become convenient for your pocket.
2. If you enroll with a debt settlement program then the interest rates along with the penalty charges on the outstanding balance would be negotiated by the debt settlement company. They make monthly payments affordable for the debtors.
3. After the enrollment with the debt settlement program the over limit fee would be eliminated.
4. Debt Settlement Company is a preferable option to eradicate the burden of creditor harassment and threatening phone calls. In order to achieve a debt free life you need to enroll with a debt settlement program.
What are the disadvantages of the debt settlement program?
1. Your credit report would be hampered if you enroll with a debt relief program. Before you enroll with this program you have to be a defaulter in order to reduce and get rid of debt. If you fail to repay on time in case of credit card debt then that might have a negative effect on your credit score.
2. As the balance is settled by negotiation so it is considered under taxable income.
3. You need to follow a disciplined payment plan if you miss any one payment then the settlement plan would not work.
You can boost your credit score once you have paid your account in full. You can secure your financial future by unshackling yourself from the torture of debt.
Author bio:
This is a guest post by Kevin Craig who is a financial writer. He has helped lots of debt burdened people with free counseling and advices on many finance related topics. If you are interested in writing a guest post, please contact PF Stock at the Email address listed in the sidebar.
Disclaimer: The information provided here is not meant as tax or debt settlement advice. I encourages readers to consult with an attorney or financial adviser if they have specific questions about debt settlement.
Before you plan to file bankruptcy find out whether you can settle your debt or not. As filing bankruptcy not only hampers the credit score but also ruin your financial career. Therefore it would be advisable to try other alternative other than bankruptcy in order to reduce your debt. As the impact of filing bankruptcy remains on your credit report for 10 years, within these years you might face difficulty to acquire loan.
It would take 1 to 2 years for the entire process of debt settlement and for you to get out of the trap of debt. On your behalf the debt settlement companies would contact the creditors in order to negotiate your debt. After you are being represented by them the creditors usually do not contact you. As the creditors can see a fine ray of hope to get back their money after debt settlement so the creditor harassment is at a halt.
Debt settlement works:
You have to sign a legal paper with the debt settlement company that is known as the "Limited Power of Attorney". A contact needs to be signed by you and make a monthly payment that would be deposited into the "Settlement Account". This money would be distributed among the creditors by the settlement company. Once the payment has been made the clients can unburden themselves from the torment of debt. In this way you can get rid of debt without ruining your credit history.
Advantages and disadvantages of this program:
What are the advantages of debt settlement program?
1.As a part of your debt is wiped out after settling it so debt settlement is considered to be an effective process. In this way you can fix your monthly budget and the repayment plan would also become convenient for your pocket.
2. If you enroll with a debt settlement program then the interest rates along with the penalty charges on the outstanding balance would be negotiated by the debt settlement company. They make monthly payments affordable for the debtors.
3. After the enrollment with the debt settlement program the over limit fee would be eliminated.
4. Debt Settlement Company is a preferable option to eradicate the burden of creditor harassment and threatening phone calls. In order to achieve a debt free life you need to enroll with a debt settlement program.
What are the disadvantages of the debt settlement program?
1. Your credit report would be hampered if you enroll with a debt relief program. Before you enroll with this program you have to be a defaulter in order to reduce and get rid of debt. If you fail to repay on time in case of credit card debt then that might have a negative effect on your credit score.
2. As the balance is settled by negotiation so it is considered under taxable income.
3. You need to follow a disciplined payment plan if you miss any one payment then the settlement plan would not work.
You can boost your credit score once you have paid your account in full. You can secure your financial future by unshackling yourself from the torture of debt.
Author bio:
This is a guest post by Kevin Craig who is a financial writer. He has helped lots of debt burdened people with free counseling and advices on many finance related topics. If you are interested in writing a guest post, please contact PF Stock at the Email address listed in the sidebar.
Disclaimer: The information provided here is not meant as tax or debt settlement advice. I encourages readers to consult with an attorney or financial adviser if they have specific questions about debt settlement.
Friday, September 17, 2010
Which Financial Account Management Website Do You Use?
For a while, I've had a poll in the sidebar of my blog that asks the question: Which financial account management website do you use? Readers are asked to vote among financial aggregation sites such as Wesabe, Mint, and Yodlee. After I started the poll, I wrote a post that Wesabe was shutdown at the end of July 2010.
Nevertheless, here are the results so far:
Wesabe: 4%
Mint: 20%
Yodlee: 76%
Other: 0%
None: 12%
The percentages don't add up to 100% because readers are allowed to select more than one website when they vote. If you haven't voted yet, please see the poll in the sidebar.
In a financial jam? Get payday loans online from www.60MinutePayday.com today!
PFS
Nevertheless, here are the results so far:
Wesabe: 4%
Mint: 20%
Yodlee: 76%
Other: 0%
None: 12%
The percentages don't add up to 100% because readers are allowed to select more than one website when they vote. If you haven't voted yet, please see the poll in the sidebar.
In a financial jam? Get payday loans online from www.60MinutePayday.com today!
PFS
Wednesday, September 15, 2010
How Payday Loans Work
Payday loans fill an important void that is not served by traditional banks. In a perfect world, everyone would be on top of his or her finances, and there wouldn't be a need for payday lenders. But in reality, most of us have gotten behind on bills at some point.
QuickQuid is a United Kingdom lender that offers cash advances based on using your next paycheck as collateral. A payday loan is something to consider if you find yourself in a short-term bind and in need of money. For example, if you have been shopping for one too many "bargains", and can't make your credit card payment, a payday loan may help you out. Applying for a payday loan is simple, and takes only a few minutes to complete. Most payday loans are quickly approved.
QuickQuid has a FAQ that explains how to apply for a loan. A bank account and a steady job are the requirements to apply. The actual terms for bad credit loans are governed by the Consumer Credit Act of 1974 and other applicable UK laws. QuickQuid assigns borrowers to one of three credit tiers: excellent, good or average. This is based on various factors including, but not limited to, your credit history, employment history and loan repayment history.
Based on this rating, a finance charge of £10 to £14.75 per £50 borrowed will be assessed. For example, suppose that you have excellent credit and borrow £250 from the payday lender. The lender will transfer this money to your bank account, and expects you to pay this amount plus a fee of £50 on a £250 loan (£300 in total) when you receive your next paycheck.
I advise borrowers to read QuickQuid's disclosure of finance charges before applying for a loan. The effective annual percentage rate (APR) on the loan can be several hundred percent, depending on the situation. If used correctly, a payday loan can help tide you over to the next payday.
This post is sponsored by QuickQuid.
QuickQuid is a United Kingdom lender that offers cash advances based on using your next paycheck as collateral. A payday loan is something to consider if you find yourself in a short-term bind and in need of money. For example, if you have been shopping for one too many "bargains", and can't make your credit card payment, a payday loan may help you out. Applying for a payday loan is simple, and takes only a few minutes to complete. Most payday loans are quickly approved.
QuickQuid has a FAQ that explains how to apply for a loan. A bank account and a steady job are the requirements to apply. The actual terms for bad credit loans are governed by the Consumer Credit Act of 1974 and other applicable UK laws. QuickQuid assigns borrowers to one of three credit tiers: excellent, good or average. This is based on various factors including, but not limited to, your credit history, employment history and loan repayment history.
Based on this rating, a finance charge of £10 to £14.75 per £50 borrowed will be assessed. For example, suppose that you have excellent credit and borrow £250 from the payday lender. The lender will transfer this money to your bank account, and expects you to pay this amount plus a fee of £50 on a £250 loan (£300 in total) when you receive your next paycheck.
I advise borrowers to read QuickQuid's disclosure of finance charges before applying for a loan. The effective annual percentage rate (APR) on the loan can be several hundred percent, depending on the situation. If used correctly, a payday loan can help tide you over to the next payday.
This post is sponsored by QuickQuid.
Tuesday, September 7, 2010
Guest Post: How Can Bankruptcy Affect Your Professional Career?
Have you recently filed for bankruptcy? Then it might create impediment in the path while you are in search of new jobs. The prospective employer might ask you whether you have filed for bankruptcy or not. You need to reveal the information to your employer even if it has been years back since you have filed bankruptcy. If you choose to keep you lips sealed regarding your filing then you might be terminated on your secret being revealed. This article would help you to show how filing bankruptcy can take a toll on your professional career.
Individuals who have filed for consumer debt protection they have proved themselves financially unreliable so many business houses avoid employing bankrupts. When individuals are indebted due to joblessness they desperately look for jobs. And bankrupts are in dire need of jobs due to financial crisis. When the debtors file under chapter 7 bankruptcy their debts are discharged by the U.S Bankruptcy Court but the potential employers make it an issue to turn them down.
A legal solution through consumer debt protection is provided for debtors who are unable to manage their financial obligations. Unless the employers reconsider their stance of disappointing the bankrupts seeking for a job the situation won’t improve.
A challenging process to find job after bankruptcy:
The job seekers need to have clean credit records, no past criminal record, and negative drug tests as it would be verified by the future employers. As it would ensure them that they are hiring someone responsible for their organization.
But if your credit report displays Chapter 7 or 13 proceeding then you might not be considered eligible for the job. If you file under chapter 7 or 13 bankruptcy then it remains on your credit report for 7 to 10 years. Their financial record is ruined and that makes thing difficult while applying for a job.
If you inform the employers about your distressful situation and about the tarnished financial record before they unravel the secret. Then it might give a positive impress and they might reconsider to hire you. It might be purely based on past work performance, experience, and professional qualifications while ignoring your filing.
Law prohibits Discrimination:
U.S. Bankruptcy Code under Section 525 forbids discrimination against anyone exclusively on the basis of filing bankruptcy. The employers have the right to screen the individual if they plan to hire them. If the individuals are associated with the financial, government, high security sector then this would be a legitimate concern for the employer. If the employees go through financial doldrums then they might get in the trap of a fraud, bribery, robbery in order to come out of such financial disaster. This kind of act might hamper the interest and reputation of the company.
The future employer can reject you by showing other reasons but the reason might be on the basis of bankruptcy. But after getting the job if they terminate you on the grounds of bankruptcy then you have a right to file a case against them.
By the Fair Credit Reporting Act under Sections 604, 606, and 615 a few set of guidelines needs to be followed by the employers while evaluating your credit reports.
1. If your credit is being reviewed for job evaluation then the employers have to inform you through a letter.
2. A “pre-adverse action disclosure” should be sent by the future employer if he figures out any discrepancies on your credit report. It helps you to correct the inaccurate information on your credit reports.
3. The employer must give you an “adverse action notice” before terminating you from the service, if he traces some unpleasant information on your credit report. The contact information of the credit reporting agency providing the report should be there on the notice. If you find any inaccuracy on the report then contact the agency to solve the disparity. And demand an additional free report within 60 days from them.
A bankruptcy attorney can help you with his proficient knowledge on such cases. If you smartly deal with things then it won’t be difficult to acquire a job even after filing bankruptcy.
About the Author:
This is a guest post by Kevin Craig who is a financial writer. He has helped lots of debt burdened people with free counseling and advices on many finance related topics. If you are interested in writing a guest post, please contact PF Stock at the Email address listed in the sidebar.
Disclaimer: The information provided here is not meant as tax or bankruptcy advice. I encourages readers to consult with a bankruptcy attorney or financial adviser if they have specific questions about bankruptcy.
Individuals who have filed for consumer debt protection they have proved themselves financially unreliable so many business houses avoid employing bankrupts. When individuals are indebted due to joblessness they desperately look for jobs. And bankrupts are in dire need of jobs due to financial crisis. When the debtors file under chapter 7 bankruptcy their debts are discharged by the U.S Bankruptcy Court but the potential employers make it an issue to turn them down.
A legal solution through consumer debt protection is provided for debtors who are unable to manage their financial obligations. Unless the employers reconsider their stance of disappointing the bankrupts seeking for a job the situation won’t improve.
A challenging process to find job after bankruptcy:
The job seekers need to have clean credit records, no past criminal record, and negative drug tests as it would be verified by the future employers. As it would ensure them that they are hiring someone responsible for their organization.
But if your credit report displays Chapter 7 or 13 proceeding then you might not be considered eligible for the job. If you file under chapter 7 or 13 bankruptcy then it remains on your credit report for 7 to 10 years. Their financial record is ruined and that makes thing difficult while applying for a job.
If you inform the employers about your distressful situation and about the tarnished financial record before they unravel the secret. Then it might give a positive impress and they might reconsider to hire you. It might be purely based on past work performance, experience, and professional qualifications while ignoring your filing.
Law prohibits Discrimination:
U.S. Bankruptcy Code under Section 525 forbids discrimination against anyone exclusively on the basis of filing bankruptcy. The employers have the right to screen the individual if they plan to hire them. If the individuals are associated with the financial, government, high security sector then this would be a legitimate concern for the employer. If the employees go through financial doldrums then they might get in the trap of a fraud, bribery, robbery in order to come out of such financial disaster. This kind of act might hamper the interest and reputation of the company.
The future employer can reject you by showing other reasons but the reason might be on the basis of bankruptcy. But after getting the job if they terminate you on the grounds of bankruptcy then you have a right to file a case against them.
By the Fair Credit Reporting Act under Sections 604, 606, and 615 a few set of guidelines needs to be followed by the employers while evaluating your credit reports.
1. If your credit is being reviewed for job evaluation then the employers have to inform you through a letter.
2. A “pre-adverse action disclosure” should be sent by the future employer if he figures out any discrepancies on your credit report. It helps you to correct the inaccurate information on your credit reports.
3. The employer must give you an “adverse action notice” before terminating you from the service, if he traces some unpleasant information on your credit report. The contact information of the credit reporting agency providing the report should be there on the notice. If you find any inaccuracy on the report then contact the agency to solve the disparity. And demand an additional free report within 60 days from them.
A bankruptcy attorney can help you with his proficient knowledge on such cases. If you smartly deal with things then it won’t be difficult to acquire a job even after filing bankruptcy.
About the Author:
This is a guest post by Kevin Craig who is a financial writer. He has helped lots of debt burdened people with free counseling and advices on many finance related topics. If you are interested in writing a guest post, please contact PF Stock at the Email address listed in the sidebar.
Disclaimer: The information provided here is not meant as tax or bankruptcy advice. I encourages readers to consult with a bankruptcy attorney or financial adviser if they have specific questions about bankruptcy.
Thursday, September 2, 2010
Guest Post: 4 Ways To Avoid Debt Relief Scam
It is not difficult for the customer to trace a fraud debt relief agency. You need to be conscious of the warning signals that these scam companies often try to hide. You can secure your financial future by avoiding getting into the trap of Scam Company.
About the Author
This is a guest post by Kevin Craig who is a financial writer. He has helped lots of debt burdened people with free counseling and advices on many finance related topics. If you are interested in writing a guest post, please contact PF Stock at the Email address listed in the sidebar.
- If you have found a debt relief agency from the internet then try to be careful about its reliability. Often the debt relief companies are fraud that advertises their company in order to help people to come out from the trap of debt. If you are looking for debt relief agency then ask help from someone trustworthy who can suggest you a dependable debt relief agency. It is crucial to verify the history of a debt relief company. Make sure that that the debt relief company is accredited by Better Business Bureau. It is a pro consumer protection right that is labeled with the authentic debt relief agency.
- Ensure that the upfront amount in not excessive compared to the other debt relief company. Make sure that you compare the rates of all the debt relief companies and then choose that is more affordable for your pocket. If you find that your debt relief companies asking for more upfront fee then demand a break up of the fee. And if they fail to produce then avoid enrolling with debt Relief Company.
- The first thing that you should need to discuss with your debt relief agency is about settling the interest rate and negotiating on the past due as well as on the over limit account balances. It is essential to keep a check on the creditors in order to ensure whether the negotiation terms are being followed or not. At times the credit card companies agree on the negotiated amount but at the end of the month that might slip out from their mind. So it would a duty of the debt relief officers to keep a vigil on the creditor to see whether they hold on to the bargain till the end or not.
- Most debt relief alternatives for instance pay day loan outlet should be avoided even if they are in severe financial catastrophe. You might get influenced by the commercial on the televisions in this way you get trapped in a company associated with fraud. With their false promises they might attract many borrowers who are in dire need of help in order to get rid of debt.
About the Author
This is a guest post by Kevin Craig who is a financial writer. He has helped lots of debt burdened people with free counseling and advices on many finance related topics. If you are interested in writing a guest post, please contact PF Stock at the Email address listed in the sidebar.
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