Personal Finance

If you find yourself trying to get out of debt it can be overwhelming to know that you owe a great deal of money. It can be even more overwhelming when collectors contact you repeatedly in order to try and get you to pay. The good news is that you do have some rights. The Fair Debt Collection Practices Act (FDCPA) is designed to protect consumers from harassing behaviors on the part of debt collectors. It is important to know your rights under the FDCPA, and be ready to report violations of the act. Debts Protected by the FDCPA Most personal, family and household debts are protected under law. Money you owe on your credit card, as well as auto loans and mortgages, are protected. You are protected from those who regularly collect debts. For instance, collection agencies, lawyers and companies that buy delinquent debts are all considered debt collectors. When they attempt to collect a debt, they have to follow certain rules, and avoid engaging in practices that might be considered: Unfair Abusive Deceptive Get a Debt Collector to Stop Calling You Debt collection calls can add a great deal of stress to your life. Chances are, you already know that you owe someone money, and that it needs to be paid. If you want the debt collection calls to stop, there is a rather simple procedure: Ask, in writing, for them to stop calling you. Write a letter requesting that the contact stop, and send via certified mail (so there is a record of the collector receiving it). Make sure you keep a copy for yourself. Once the collector receives this letter, the only contact that can be made with you is to inform you that no further action will be taken, or to let you know that further action is coming (such as a lawsuit). You can also stop the contact by designating a representative. If you make it clear that an attorney is representing you regarding your debt, the debt collector must contact him or her, rather than you, to make arrangements. Note, too, that debt collectors can’t call you at your place of work if you tell them (on the phone or in writing) that you aren’t allowed to get those types of calls while working. Verifying the Debt In some cases, you might think that you don’t even owe the debt! And, even if you do owe on it, debt collectors must send verification of the debt. Within five days of contacting you, a debt collector must send out a validation letter telling you how much you owe, the creditor you owe the money to, and steps you can take if you don’t believe you owe the money. Keep records of contact, and the date on the letter, since a debt collector not adhering to the standards can earn you some reprieve. You also have the right to ask for proper documentation of the debt, including a copy of the bill that you are supposed to pay. What Debt Collectors Can’t Do In the past (and sometimes still today) strong arm techniques have been used to scare people into paying the debt – even if the debt isn’t theirs, or they can’t pay. Here are some practices that are forbidden to debt collectors: Threatening violence against you. Use of obscene language while speaking with you. Publicly humiliation by publishing a list of people who haven’t paid (although this information can be given to your attorney, spouse and the credit bureaus). Making false statements, including claiming they represent the government or some other organization that they don’t, and misrepresenting the amount of money that you owe. Implying that you will be arrested or a warrant will be issued if you don’t pay your debts. Depositing a post-dated check early. Threatening to take your property or garnish your wages (unless allowed by law in your state) without a proper court order. Calling you at inconvenient times, including before 8 a.m. or after 9 p.m. your time. While you should repay your debts when you can, there is no reason to bow to harassment. You do have rights, and you should make sure you claim them. Hav

What might the 2014 tax rates and 2014 tax brackets look like? Last year the fiscal cliff deal made the tax bracket structure permanent. The 2014 income tax brackets will continue to keep the 10%, 15%, 25%, 28%, 33%, 35% and 39.6% tax brackets in place from last year. Each year the federal income tax brackets will adjust based on inflation. However, based on the President’s budget proposal, we might be using the new chained CPI inflation adjustment instead. If we use chained CPI, the inflation calculation is projected to be lower, which will also lower the expansion of tax brackets each year. While we won’t know the exact adjustments to the tax brackets, it’s nice to have a framework in place to project the tax impacts on your personal financial planning. 2014 Tax Rates & Tax Brackets Based on the most recent release of inflation data (and adjusted slightly for the possible use of chained CPI), here’s what the 2014 tax brackets might look like. As soon as the IRS releases the final 2014 tax brackets, I’ll update the federal 2014 tax tables: table.dp2 { border-width: 1px 1px 1px 1px; border-spacing: 2px; border-style: outset outset outset outset; border-color: ; border-collapse: collapse; background-color: white; } table.dp2 th { border-width: 1px 1px 1px 1px; padding: 1px 4px 1px 4px; border-style: inset inset inset inset; border-color: gray gray gray gray; background-color: white; -moz-border-radius: 0px 0px 0px 0px; } table.dp2 td { border-width: 1px 1px 1px 1px; padding: 1px 1px 1px 1px; border-style: inset inset inset inset; border-color: gray gray gray gray; background-color: white; -moz-border-radius: 0px 0px 0px 0px; text-align: center; } Tax Rate Single Married Filing Joint Married Filing Separate Head of Household 10% Up to $9,025 Up to $18,025 Up to $9,025 Up to $12,875 15% $9,026 – $36,625 $18,026 – $73,225 $9,026 – $36,625 $12,876 – $49,075 25% $36,626 – $88,725 $73,226 – $147,875 $36,626 – $73,925 $49,076 – $126,700 28% $88,726 – $185,075 $147,876 – $225,275 $73,926 – $112,650 $126,701 – $205,175 33% $185,076 – $402,325 $225,276 – $402,325 $112,651 – $201,175 $205,176 – $402,325 35% $402,326 – $404,000 $402,326 – $454,500 $201,176 – $227,250 $402,326 – $429,250 39.6% Over $404,000 Over $454,500 Over $227,250 Over $429,250 The 2014 federal tax tables are based on your filing status and number of dependents for the 2014 calendar year. In addition, a new tax credit in 2014, the Health Insurance Premium Tax Credit will apply to your taxes based on your Modified Adjusted Gross Income. 2014 Tax Rates vs 2013 Tax Rates Want to compare the projected 2014 tax brackets to the current year to see the changes? Here are the 2013 tax rates for comparison. 2013 Tax Rates & Tax Brackets table.dp2 { border-width: 1px 1px 1px 1px; border-spacing: 2px; border-style: outset outset outset outset; border-color: ; border-collapse: collapse; background-color: white; } table.dp2 th { border-width: 1px 1px 1px 1px; padding: 1px 4px 1px 4px; border-style: inset inset inset inset; border-color: gray gray gray gray; background-color: white; -moz-border-radius: 0px 0px 0px 0px; } table.dp2 td { border-width: 1px 1px 1px 1px; padding: 1px 1px 1px 1px; border-style: inset inset inset inset; border-color: gray gray gray gray; background-color: white; -moz-border-radius: 0px 0px 0px 0px; text-align: center; } Tax Rate Single Married Filing Joint Married Filing Separate Head of Household 10% Up to $8,925 Up to $17,850 Up to $8,925 Up to $12,750 15% $8,926 – $36,250 $17,851 – $72,500 $8,926 – $36,250 $12,751 – $48,600 25% $36,251 – $87,850 $72,501 – $146,400 $36,251 – $73,200 $48,601 – $125,450 28% $87,851 – $183,250 $146,401 – $223,050 $73,201 – $

When it comes to buying life insurance coverage, many of us focus on the family’s primary breadwinner. While you do need life insurance for the primary breadwinner, don’t forget that it is usually a good idea to get coverage for someone who isn’t the primary breadwinner.Consider the household finances as a whole, including the non-financial contributions that a stay at home partner makes in order to prevent the need for paying for certain things.What Does Your Stay at Home Partner Contribute?You might be surprised at what your stay at home partner contributes, even though he or she doesn’t have what is considered a “real” job that results in a regular paycheck. Here is the story of one State Farm agent who learned firsthand how helpful it can be to have an insurance policy on your non-breadwinning partner:Michael Venable of Hopkinsville, Ky., lost his wife, Beth, from a stroke following brain surgery on August 24, 2012. Michael was left with four young children, including a new baby adopted from Ethiopia. Fortunately, the family had a life insurance policy for Beth that has allowed Michael to hire a nanny to help with the kids while he’s continued his work as a State Farm agent. The life insurance proceeds have also allowed Michael to carry on Beth’s passion of serving others, especially orphans. Michael has raised more than $50,000 for a charity for orphans. Michael knows first-hand the importance of having life insurance on both spouses in the event of an unexpected life change.As you can see from Venable’s experience, there is a lot that goes into being a stay at home partner. Think of all of the things that your stay at home partner takes care of. From picking the kids up after school, to running errands, to getting dinner started, there’s a lot that goes into being a stay at home partner.After you consider what your partner does, then consider how much it would cost to hire someone else to do it. Because you can’t if you are going to keep earning money for your family. If you are going to pay someone else to do all the things that your stay at home partner used to do, then you need to have the funds. A life insurance policy can provide those funds.If your partner has a job, it’s even more important that he or she is adequately covered by life insurance. A part-time job may not seem like a big addition to your income, but consider what things would be like if you didn’t have that money coming in. Some of the “extras” that you have in your budget might be the result of your partner’s efforts.Really think about what your partner contributes to your household finances, and keep in mind that these contributions might not be directly financial. Then, figure out how much life insurance coverage you should have on him or her. You’ll increase your peace of mind knowing that you can afford to move forward and get the help that you need if your partner passes on.The post Non-Breadwinner? You Still Need Life Insurance Coverage appeared first on Personal Dividends - Money+Lifestyle.Related posts:Your Family Needs Life InsuranceI’m the Primary Breadwinner, Not a Sugar Mamma5 Tips to Save Money on Auto InsuranceTravel Insurance: Don’t Leave Home Without ItLow Cost Auto Insurance – Vehicle Insurance Rating

A reader writes in, asking: “You’ve mentioned in several articles that target retirement funds are not tax efficient. I don’t fully understand why they would be any worse than just holding a few index funds, since they own the same stuff in the end. Could you elaborate on this idea in an article?” There are several reasons why funds of funds are less tax-efficient than a DIY allocation using individual index funds. Firstly, they result in an impaired ability to tax-loss harvest. For example, with respect to any given share purchase of a fund of funds, there will likely come a time at which one of the underlying funds is worth less than it was worth when you bought into the all-in-one-fund, yet the overall portfolio has a gain. With a fund of funds, there would be no ability to tax-loss harvest. With the individual funds, there would be such an opportunity. In addition, even when tax-loss harvesting opportunities do come around for an investor in an all-in-one fund, it can be difficult to find another all-in-one fund that makes a good tax-loss harvesting partner. Switching to a different target date fund from the same fund company would often mean an undesired change in your asset allocation, and switching to a target date fund with a different company would likely mean a dramatic increase in costs. Second, depending on your federal income tax rate and your state income tax rate, you might find it advantageous to use municipal bonds (which are exempt from federal income tax) or Treasury bonds (which are exempt from state income taxes) instead of the “total bond” -type of fund that is included in many all-in-one funds (including Vanguard’s Target Retirement and LifeStrategy funds). Third, funds of funds are ineligible for the foreign tax credit, whereas international funds that directly hold international stocks do qualify for the credit. Fourth, if you have tax-sheltered retirement accounts in addition to taxable brokerage accounts, you might benefit from implementing an “asset location” plan — that is, placing your least tax-efficient assets in your tax-sheltered retirement accounts prior to placing your more tax-efficient assets in such accounts — rather than holding the same asset allocation in your taxable accounts and your retirement accounts. What is the Best Age to Claim Social Security? Read the answers to this question and several other Social Security questions in my latest book: Social Security Made Simple: Social Security Retirement Benefits and Related Planning Topics Explained in 100 Pages or Less Click here to see it on Amazon. Treasury Circular 230 Notice: Any U.S. tax advice on this blog is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing, or recommending to another party any transaction or matter addressed on this blog. Disclaimer: Your subscription to this blog does not create a CPA-client or other professional services relationship between you and Mike Piper or between you and Simple Subjects, LLC. By subscribing, you explicitly agree not to hold Mike Piper or Simple Subjects, LLC liable in any way for damages arising from decisions you make based on the information available herein. I am not a financial or investment advisor, and the information contained herein is for informational and entertainment purposes only and does not constitute financial advice. You may unsubscribe at any time by clicking the link at the bottom of this email (or by removing this RSS feed from your feed reader if you have subscribed via a feed reader).

My wife and I have weird work lives. I only have mandatory work from March through August, while my wife works from September through November and January through March. We only overlap for one month out of the year. My wife has begun her first real down period while I’m still in season. One week was enough for her to start thinking of ways to fill her down time, while I need to start thinking about what I’m going to do when September rolls around. For Her I always used to look forward to breaks from school or work, but I’d get bored after a few days or a week. I’d need to find something to keep myself occupied until I returned to normalcy. This is how my wife feels right now. She was looking forward to a few months off after a four month nursing assignment. Now, she’s trying to find something to make her time worthwhile until we return home and she gets another assignment. She’s looking for some hobbies or even some work, so we began brainstorming. We found that nurses can get stay-at-home jobs, working over the phone or internet. She’s applied for a few positions and has also begun extensive training on our dog. Life is all about feeling worthwhile. When you don’t feel like you’re spending your time wisely, you may start to ponder its meaning. For Me The same situation occurs for me when the season ends in the fall. The tired feeling from a long season ends after about a week, and I’m left looking for what’s next. Freelance writing has filled a good amount of time each of the past two offseasons. Working out for the next season takes up about 25-30 hours a week. This still leaves a pretty good chunk of time for other activities. I’ve considered looking for an in-person job this offseason, but I’m still not sure if it’s a plausible idea. We’ll only be living in Minnesota for four months, which would make employment fairly difficult. For You While not many couples are in the same situation as my wife and me, many people experience this issue a few times in their lives. For younger kids, this happens when school ends or a break starts. For adults,  it might happen when you quit or lose your job, find new employment, or have a large break in work. Your kids going away to college could generate the same feeling. Anything that frees up a lot of time will be followed by this feeling fairly quickly. Many people spend their lives switching hobbies and finding new things to do. My mother-in-law enjoys crocheting, while my mom was a stay-at-home mother for many years and has found a new job as a preschool coordinator. Life isn’t all about making and spending money; a lot of it is about spending your time wisely. How can you feel as though you’re doing something worthwhile? What do you do when you feel you aren’t filling your time well? This article originally appeared on MoneyNing.com. Let us know what you think (or read what others thought) here. Related posts: Which Car Options in a Transient Life? Moving Up… What Now?

The Super Man complex most healthy people have has a kryptonite when it comes to life insurance: the non-medical factors that affect your life insurance rates. It’s a huge shock to many people who get a free life insurance quote who are in the best shape of their lives when they can’t qualify for the best life insurance rates because of non-medical factors. It usually goes something like this: “I Crossfit 3 times/week and compete in Iron Man triathalons and you’re telling me that I can’t qualify for the best rates because I’m a rock climber?” Yes. That’s what we’re saying. In our 8 years of helping consumers find the lowest life insurance rates available, here are the top 5 “non-medical” factors that affect your life insurance rates (in no particular order). 1. Hazardous Occupations Have you seen “Deadliest Catch” ? Those 700 lb steel traps on a boat being swung around by 25 foot waves isn’t really the ideal risk for life insurance companies. Expect to pay more… a lot more. We’re also talking about occupations like oil rig workers, ironworkers (think high rise structural construction) and bomb diffusers. Yes, I’ve actually insured a police bomb diffuser. One of the sharpest clients I can remember – but he pays A LOT more for his life insurance than if he didn’t have this hazardous occupation. Again, most of these people are in great shape because of the nature of their occupation – but their non-medical factors come into play when underwriting their applications. 2. Hazardous Activities In this group, the most common risks we see are deep sea scuba divers, private pilots, motor racing, skydivers and high altitude rock climbers. Most of these people HAVE to be in great shape to perform these activities at a high level and most of them are. However, these risky activities come with increased premiums when it comes to life insurance no matter how fit you are. Be prepared to fill out a questionnaire regarding the specifics of your hazardous activities as life insurance companies will determine your pricing based on many factors including your training, experience and how often you perform these activities. If you are going to participate in high risk activities don’t be surprised if you land in the high risk life insurance premium bucket. 3. Foreign Travel If you have any plans to travel abroad, your life insurance company wants to know about them. If it’s a high risk area, like any of the places on this government Travel Warnings List, you’ll have a very hard time finding coverage until you come home from your trip. Life insurance companies will also be looking at the purpose of travel and length of stay. For example – you may have a 2 week vacation planned to Bali, Indonesia, but Indonesia may be on the state departments “Travel Warnings” list or be a high risk country in the company’s underwriting guidelines. Many companies won’t consider this risk after factoring the purpose and length of stay. Many companies will ask about previous foreign travel as well. If you show a pattern of traveling to potentially high risk places, they may factor that in to their underwriting decision. 4. Family History This is the biggest disappointment to consumers purchasing life insurance because it’s something you have no control over. Generally speaking, if any of your parents or siblings passed away before the age of 60 of cancer, heart disease or diabetes – most life insurance companies won’t offer their best health classification. However there are some highly rated and very well known life insurance companies that don’t factor this in. If you’re in great health, make sure your agent provides you with these options. 5. DUI’s and Moving Violations Life insurance companies will pull your Motor Vehicle Report (MVR) and factor in any excessive

I was talking with friends over the weekend when one of them asked me a question I’d, surprisingly, never saw before (I would also later see it on Reddit). My friend received a letter in the mail from his credit card company that “congratulated” him on his good credit behavior. It also increased his credit limit by about 25%. Nominally, it wasn’t a huge increase but it was a large enough number that my friend thought about it. A little bit of background (self-reported, I only asked because I told him I was going to write a post about it) – he has no credit card debt, has pretty good credit, has a car loan and a mortgage. The letter he received wasn’t written in a way that asked him if he wanted the increase, it simply told him that it was increased. (in theory, he could call them and ask to have it reduced but the default was acceptance). So should he accept it? Why He Should Accept an Increase Credit utilization is one of the factors in a credit score and it’s calculated based on your credit usage. Total credit used divided by total credit available. The smaller this number is, the better your score is. Even though my friend carries no debt, he uses his credit cards and so a statement balance is reported each month. By increasing his total limit, he’s reducing his utilization. They never give you credit when you need it! There might come a time when you’re in a jam and you need to rely on that (expensive) credit. Maybe you’re traveling, without much cash, and you need a few thousand bucks for some emergency. The credit is basically free, it’s there if you need it, so why not have it in your back pocket? Emergencies happen and having a card that unlocks thousands of dollars of spending power, without you having to carry thousands of dollars, might come in handy someday. More credit, more rewards. The above reason cited emergencies but sometimes it’s nice to make large purchases on a credit card and get those rewards. Buying some furniture soon? Put it on your card, collect some rewards, and then pay off the statement when it’s due. You won’t get rich this way but every little bit counts. Why He Shouldn’t Accept an Increase These reasons won’t apply to my friend specifically but they’re valid reasons. More credit may result in more debt. If you’re someone who carries debt on your credit cards, you may want to decline the increase because you might accumulate more debt. You know that friend (or it could be you!) that complains about how money seems to fly out of his wallet? If he carries cash, he’ll spend it? Maybe you’re like that with credit. If that’s the case, decline. None of the reasons above are valid if you’re paying double digit interest on credit card debt. If it’s an offer and not an automatic increase, check if they’ll do a hard inquiry. My friend got a letter informing him that an increase had occurred, but sometimes you may get a letter that says you “may be eligible for an increase.” If that’s the case, double check that the credit card company will not do a hard inquiry before giving you more credit. Hard inquiries will hurt your credit score. Oftentimes, if you request on via an online form, a quick response will mean no hard inquiry. If they ask for more information, it’s usually so they can pull your credit. Pass on those. Were you recently offered an increase? Did you take it? Should I Accept a Credit Line Increase? from personal finance blog Bargaineering.com. The post Should I Accept a Credit Line Increase? appeared first on Bargaineering.

This post is from staff writer Honey Smith. On Saturday, Jake woke up restless. Despite the fact that it was 112 degrees outside (argh) he really wanted to leave the house. While I would have been fine staying in, I understood where he was coming from; Jake works from home and hadn’t left the house in at least a week. “Where do you want to go?” I asked. “Let’s see,” he replied, whipping out his phone. “I’ll just check my spam account and see what kind of deals we can get.” The original purpose of the spam email account I think most people these days have a spam email account just to make their lives easier. I still have the non-school email account with the silly name that I started in college because it seemed a shame to waste it. These days, it seems like almost every company has a loyalty program where they email you special deals. So when even storefront started asking for an email address at the time of purchase, I started giving out my spam email. Jake has an email address that he uses for a similar purpose. Having those emails go to a separate address spares me the aggravation of deleting a million emails a day. Additionally, and perhaps more importantly, it spares me the ego-depleting temptation of acting spontaneously because of a limited-time offer. While I do check the account occasionally, I do a lot less impulse-shopping due to the out of sight, out of mind factor. The spam account and loyalty programs As annoying as it is sometime to have to give out my personal contact information at every store, I can’t deny that I do tend to go to the same places regularly. So over time my spam email account has become part of my planning process. Importantly, however, I decide what I want to do and then seek out the best deal, rather than being brainwashed into something I haven’t budgeted for. Examples of deals I have scored with this approach include 20 percent off at Goodwill on a monthly basis, a free bruschetta board at one of my favorite restaurants, and most recently, the free membership at LA Fitness that I mentioned in my summer plans post. Lots of restaurants will email you a coupon on your birthday or half-birthday. On Saturday, Jake and I redeemed a deal for a free appetizer at California Pizza Kitchen and $20 in free game play with purchase of $20 in game play at Dave and Buster’s. We had a couple beers, shot some aliens, and redeemed some Dave and Buster’s tickets in their gift shop for some free candy and a toy for our dog. Not bad for a Saturday night! The spam account and grocery shopping That’s not the only use of my spam email account, however. I also use it to maximize grocery store purchases. I linked my grocery store rewards card accounts to my spam email account as well. If you haven’t done this, I highly recommend it. Each of the grocery stores I shop at regularly emails me a copy of their weekly flyer. While these do come in the mail also, I find them easier to read online. Additionally, I don’t have to keep flyers around physically in my house if I have access via email. Finally, all the online flyers have a “make a list” feature where you click on the items you’re interested in. When the list of items you want to purchase is complete, you can either print it out or email it to yourself. This way, you’re saving money even before coupons enter the equation. Like GRS staff writer April Dykman, I also struggle with coupon clipping. However, once I linked my grocery store loyalty card with my spam email address, I didn’t just get the weekly flyer. I also get emailed with reminders every time digital coupons are added to their online coupon bank. From there I just log in to my account and add every coupon that I (or Jake) might conceivably use. Then I can use the “make a list” feature to ensure that I remember to pick those items up. While I don’t make money the w

We'd like to think that the improvements we make to our homes will result in an increase in resale value. The unfortunate reality is that, according to Remodeling magazine, the average return on projects is really only about 60.6%. (See also: DIY Home Improvement: 10 Free Options for Training and Advice) Most of the time, you aren't going to increase your home's resale value, dollar for dollar, with any remodeling project. You can make your home more comfortable to live in, and you can boost the resale value a little bit, but you're just not going to get what you put in. Every year, Remodeling magazine offers a "Cost vs. Value" report. For 2013, the renovations that will earn you the most return (at least in the mid-range cost) are entry doors and deck additions. The worst renovations? Bathroom additions and backup power. OK, let's get to the count down! 10. Major Kitchen Remodel If you are willing to remodel your kitchen, you can see a fairly decent return. However, a major kitchen remodel is expensive. It will cost you about $53,931 and return about $37,139 in the dollar increase for your home's resale value. This is a recoup of 68.9%. 9. Basement Remodel A basement remodel is even more expensive than a major kitchen remodel. It costs about $61,303 to remodel a basement. However, you'll see better results, with a $43,095 increase in your home's resale value, for a recoup of 70.3% of the cost. 8. Window Replacement (Vinyl) The way your windows look can have an impact on the resale value of your home, and replacing your old windows with new vinyl surrounded windows can result in a $6,961 increase in the value of your home. It'll cost you $9,770, though, which amounts to a recoup value of 71.2%. It might be worth it to check with your locality for information on financing programs. Some cities will finance your window replacement, if you choose energy efficient replacement windows, and do it for a very low rate, or even no rate. Additionally, there is an energy tax credit offered at the federal level for windows replaced through December 31, 2013. 7. Siding Replacement (Vinyl) Add siding to your home, and you could see an improvement in the resale value. Siding replacement will cost you about $11,192 and return $8,154 in the resale value of your home. This represents a cost recoup of 72.9%. 6. Attic Bedroom Are you willing to turn your attic into a bedroom? If so, you could see a return of 72.9% in your efforts. It will cost you $47,919 to turn your attic into a comfortable bedroom, and your home's resale value will improve by about $34,916. However, your attic bedroom could provide you with a better return if you are willing to rent it out. For those who are looking for a way to earn a little extra income each month, you can rent out the attic bedroom to a boarder. That will improve your return, and provide you with a little cash flow to help pay for the cost of the renovation. 5. Window Replacement (Wood) Vinyl windows can provide you with a solid enough return, but wood window replacement is even better. It costs about $10,708 to replace windows at this rate, and you see an increase in your home's resale value of $7,852. That's means you recoup 73.3% of the cost. Again, consider tax credits and other programs to help you offset some of the cost of your renovation. 4. Minor Kitchen Remodel If you don't have the money for a major kitchen remodel, that might be a blessing in disguise. As much as you might want to completely overhaul the kitchen, the reality is that a minor remodel will give you more bang for your buck — at least when it comes time to sell your home. A minor kitchen remodel will cost about $18,527 and return about $13,977 in an increase to your home's resale value. That means you recoup 75.4% of the cost. 3. Garage Door Replacement Increase the curb appeal of your home and get a reasonable value for your home improvement dollar with a garage door replacement. You'll pay about $1,496 f

This post is from staff writer Jeffrey Steele. On a recent trip to Guadalajara, Mexico, our hosts announced one Sunday they were taking us to a special place outside the city. We climbed into a van and motored an hour southeast, coming to a halt on the shores of Lake Chapala. Mexico’s largest fresh-water lake, Chapala is a picture-postcard-worthy gem rimmed by quaint and historic towns, and known for its awesome sunsets. After strolling the sun-washed malecon, a promenade ribboning along the shoreline in Chapala city, we climbed back in the van for a lakeside joyride. We were soon in Ajijic, one of the most popular retirement towns for North American ex-pats in all of Mexico. Pronounced a-HEE-heek — possibly for the self-satisfied giggles of U.S. retirees — Ajijic has emerged as the spot for folks dreaming of retiring in a resort setting, but at a fraction of what they’d fork out in the States. I can’t recall what our guide said it would cost per month to live in Ajijic with a gorgeous lake view and the services of a maid, but I do recall the stunned gasps of us Yanks when we heard the tiny sum that passed the guide’s lips. The perfect time The vast differential between the cost of retirement here and in not-too-distant foreign countries hasn’t been lost on Panama City, Panama-based author Kathleen Peddicord. She’s the author of How to Retire Overseas (Penguin, 2010) and How to Buy Real Estate Overseas (Wiley, 2013). “This is the perfect time for North Americans to be thinking about living, retiring and investing in real estate outside the United States,” she recently told me. “Many Baby Boomers about to become retirees are flat out worried they won’t be able to afford to stop working. And because American retirees are healthier than any before, they have a much longer retirement to pay for.” While looking at more years in retirement, they’re also eyeing fewer retirement assets than they may have counted upon, she adds. “If they do the math as many people are doing, they’re saying, ‘How is this going to work?’ They answer for so many people is to look outside the box, and I’m speaking geographically. They might have considered Florida or Arizona in the past, but that’s not where they’re going to get the biggest bang in retirement.” They need to look beyond North American borders, she says, and when they do it’s low cost of living that catches their attention. Options like Mexico, Panama, Ecuador, Belize, Nicaragua and Uruguay offer a good quality of life, for less. “The point is to not have a lesser quality of life,” she says. “Why do that? You don’t have to. After working all your life, you don’t want to spend the rest of your days just making do. And overseas you can live much better than you can in the United States . . . Once you take the first step and start to realize the possibilities, you realize that not only are you going to stretch your budget and live better too, but this will be a lot of fun and allow you a spirit of discovery. “This phase of life, which could have been spent just sitting in a rocking chair, becomes the best part of your life. You’re free to embrace all this opportunity that is now before you. It’s just a big adventure.” Down Mexico way For brevity sake, let’s look at the nearest of the countries mentioned above. While a bit more expensive than the others, Mexico is a “turnkey option” for many North Americans, Peddicord says, and offers a more comfortable life. “Ajijic is a good example,” she adds, noting there are already so many retirees living there that there’s a ready-made upport system for freshly-retired newcomers. “But if you want a beach lifestyle, the beach community running north of Puerto Vallarta, which is called the Riviera Nayarit, is already well-devel