Personal Finance

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

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some great articles on slashing your cell phone bill, saving on high end cosmetics, and a checklist for quitting your job. Top 5 Articles 8 Ways to Slash Your Expensive Cell Phone Bill — To slash your cell phone bill, use texting apps and be aware of roaming. [PopSugar Smart Living] How to Save Money On High End Cosmetics — Organizing a beauty swap or purchasing a makeup subscription can help save you money on cosmetics. [Bargain Babe] A Checklist for Quitting Your Job — When quitting your job, create a plan and refresh your network. [Money Smart Life] 7 Dealership Fees to Avoid — When at the dealership, try to avoid processing and advertising fees. [TheDollarStretcher.com] Top Ten Assets Owned by Millionaires — Did you know that most millionaires own investment real estate? [Free Money Finance] Other Essential Reading Spruce Up Your Home With A $15 Art Wall - DIY — Making your own art wall is as simple as getting some frames, craft paint, and art! [And Then We Saved] Traits of a Successful Investor — Successful investors tend to think long term and don't watch stock prices. [20's Finances] Tips for Gambling Responsibly — When gambling, remember to never gamble more than you can afford. [Yes, I Am Cheap] Making Your Money Work For You: 8 Financial Tips For New Families — It is important for new families to save for retirement and teach the children about money. [Parenting Squad] The Benefits of Having a Patient Advocate — Since the healthcare system tends to be too complex for most people to understand, having a patient advocate can be highly beneficial. [Christian Personal Finance] ShareThisWritten by Ashley Jacobs and published on Wise Bread. Read more articles from Wise Bread.Best Money Tips: Slash Your Cell Phone Bill Best Money Tips: Tips for Parents to Save Money Best Money Tips: Tips for Spending Less Money Best Money Tips: How to Spend Money on Fun Best Money Tips: What to Do if Your Computer Crashes

Photo: Tax Credits All tax-advantaged retirement accounts have rules for something known as the Required Minimum Distribution. Basically, these rules are in place to ensure that you take at least a minimal amount of money in withdrawals from your retirement accounts once you reach a certain age. For many people, the Required Minimum Distribution will never be an issue because they will be withdrawing more than their RMD from their retirement accounts. But if you meet certain criteria, you’ll have to know your account’s RMD rules and regulations. What Is the Required Minimum Distribution? According to the IRS, Required Minimum Distributions are the minimum amount that a retirement account owner has to withdraw each year starting at the age of 70 1/2 or upon retirement, whichever is later. For IRA accounts, however, the RMDs must begin once the account holder is age 70 ½, regardless of whether he or she is retired. The RMD rules are in place for all employer-sponsored retirement plans, including profit-sharing plans, 401(k)s, 403(b)s and 457(b)s. RMDs are also required for traditional IRAs, as well as SEPs, SARSEPs, SIMPLE IRAs and Roth 401(k) plans. One plan that’s exempt from RMD rules is the Roth IRA. You can choose not to take any distributions from a Roth IRA during your lifetime. When you die, the beneficiary for your Roth IRA will be required to take minimum distributions from the account. Why are there RMD Rules? US News and World Report points out that RMD rules are in place to ensure that the government can collect taxes on your retirement savings in a timely manner. Because withdrawals on most accounts are taxed, the government wants to be able to collect some of those taxes before your death. This is why the Roth IRA plan escapes RMD rules for retirees. The money in your Roth IRA account has been taxed and won’t be taxed again on withdrawal. So the IRS doesn’t care if you take distributions from a Roth IRA or not. When Does it Matter for You? As with all things IRS-related, rules for the Required Minimum Distribution are complex. Most of us will have to take the RMD on April 1 of the calendar year after which we reach 70 1/2 years old. So if you turn 70 on May 15, 2013, you’ll turn 70 1/2 on Nov. 15, 2013. So you’ll have to take your first RMD by April 1, 2014. However, this can become confusing if your half birthday falls at the beginning of the year. For instance, if you turn 70 1/2 on Jan. 15, 2013, you don’t have to take your first RMD until April 1, 2014, the calendar year after you turn 70 1/2. Here are some other rules you should know about: You must take the RMD from all (non-Roth) IRA plans, whether you’re retired or not. For 401(k), profit-sharing, 403(b) and other employer-sponsored, defined-contribution plans, the plan terms vary. For some plans, you can wait past the age of 70 1/2 to take RMDs if you’re still working. For others, you’ll have to take distributions based on your age, even if you’re still working. If you own 5 percent or more of the business sponsoring the retirement plan, you have to follow the age rules, regardless of whether you’ve retired. Once you start taking the RMD, you must withdraw your annual required minimum amount by Dec. 31 of each year. If the retirement account owner dies, the beneficiary will generally need to use the RMD the account owner would have received in the year he or she died. For the years following the account owner’s death, the RMD will vary depending on who the beneficiary is. As you can see, the rules can get a little confusing, especially if you have multiple types of retirement accounts. This helpful chart from the IRS may help clear up some confusion about RMD rules for different types of accounts. If you have questions, talk with your investment adviser and, perhaps, a tax professional to ensure you meet the legal requirements. How to Calculate Your Required Minimum Di

Whelp friends, we hit 5 Million page views earlier this month! How awesome is that? :) That’s almost a million for each year I’ve been blogging – pretty sick stuff (we’ve also had over 1,850 articles published and over 50,000 comments! CRAZY!!). I can kinda get now when people say “the first million is always the hardest,” haha… it’s true at least in the blogging world! With all these changes in my life lately, I’ve also been asking myself what the future will/should hold in terms of this blog. When you’ve been around the block for a few years certain questions start bubbling up, and at some point you have to listen to them. Things like, “Is this blog still doing what it was meant to do?” “Are people getting anything from it still?” “Am *I* getting anything from it still?” “Should I spend more time growing it or less?” And on and on… Now I don’t know the answers to all of them, but I can tell you I’m not ready to stop just yet regardless of the answers :) I do still enjoy rambling on to you folks, and I love confusing people when I tell them I blog full-time for a living, haha… And I DO think it’s still doing what it was supposed to back in the day – which is: To start conversations about money in an open and friendly environment. It may not have been that way at first (I was just trying to keep myself busy at work instead of getting on MySpace 24/7! Which tells you how long I’ve been blogging for, haha..), but over the years that’s what I’ve turned its mission to. Chatting about the good, the bad, and the ugly when it comes to our personal finances. Or rather, MY personal finances. I forget there was a time when I thought it was taboo to spill it all out in the open ;) It’s much more fun aired out! I also have to point out that after all these years the level of haters here still remains at an incredibly low level. Almost non-existent even, which is a tribute to YOU guys and shows y’all have some good respect for your fellow financial neighbor. I’m amazed at all the blogs I go to where people are bashing each other left and right, and I’m just SO thankful we don’t have any of that nastiness here on this site. We may get heated at times and disagree (which is great!! We love passion and perspectives!) but rarely do I have to go in and delete someone’s nonsense. SO THANKS  TO ALL OF YOU FOR BEING SO COURTEOUS AND NICE!!! There’s no way I’d still be blogging if I had to deal with jokers all day and night. You guys really are the best, I mean it. In fact, here… Let dig up my old prize for people I used to hand out back in 2008. These were fun to make when I had like a billion extra hours every week to play ;) Here you go: Click the picture or download it, and then print! Extra brownie points for snapping a picture of it on your wall or fridge or somewhere else cool :) It’s the little things in life that turn me on, haha… So I think things will stay business as usual here for the most part, but I do want to figure out a way to add even MORE ways to get the convos flowing better. Perhaps by adding a forum of some sort on the site? Or some other doodad where we can all get to learn from each other more and share ideas? I know the point of blogs is usually to get one person’s perspective on stuff, but I feel like adding an extra level on that to continue the conversations would be even sexier. Maybe a more secretive place where we can share that’s even more private? (cue evil laugh) I dunno… What do you think about that? Would you participate if we started some sort of forum here? I’m going to research it more and see what I can come up with… In the meantime, keep on sharing your thoughts in the comments as they really are the heart of this whole operation here. I’m just t

It's summer, which means gardeners across the country will be looking for places to put their extra bounty. If you've taken to canning as a means of preserving your harvest, you understand that the number of jars, lids, and rings you'll need to put away a significant amount of food stores can number the hundreds, and canning jars (especially the brand name "Mason" jars) aren't cheap! Fortunately, you don't have to buy new jars to can your bounty — a used jar works just as well. (See also: 7 Ways to Make Use of Sub-Par Produce) What to Look for in a Used Jar While older canning jars are safe to use for food integrity, those that are weak may result in a mess when you attempt to bring them to temperature or during the cooling cycle. Toss out anything that's in less than perfect condition, but remember that there is a market for antique glass jars in any condition. In general, your used jars should be: Free of nicks, cracks, and chips (especially around the mouth of the jar) Free of bubbles or "thin" places in the glass Genuine canning jars (don't try to recycle an old mayo jar, for example) Now that you know what to look for, here are the places I've found canning jars over the years for almost nothing! 1. Garage Sales Depending on what kind of sale you attend, the jars will either be premium-priced or dirt cheap. Usually you can find brand name canning jars tucked among the miscellaneous glassware, and, sometimes, the garage sale holders will be happy to part with a large number of jars for free, if you buy other items. (I would, on the other hand, avoid thrift stores. They have seemed to sense the market for using canning jars as craft and gift staples and have jacked up prices accordingly.) 2. Cellars and Basements of Old Homes We have lived in no less than five homes during my 11 year marriage to my husband, and every home has had its "skeletons in the basement." Most of these skeletons included loads of papers, dust, and trash, but they also included Mason jars! If you rent your home, ask your landlord if you can clean up the cellar or basement and keep what you find. If you own your home — it's yours for the taking! The older the home, the more unique the jars you'll find. Don't forget about root cellars and bomb shelters. These often served solely as food storage rooms, and many housewives of the time kept boxes of new jars in with the prepared foods. 3. The Grocery Store I don't recommend buying from the new canning aisles of your retailer if you're looking to save big bucks. I can say that there are a few select store brands of salsa and spaghetti sauce that stores like Walmart carry that are packaged in 100% genuine, Mason branded jars. You'll still need to invest in rings and lids to use these jars, but you should be using new every year, anyway. If you buy these items regularly, just remember to wash your jars and not throw them out. It's like getting a free Mason jar with each spaghetti dinner! (Note: Look for the "Mason" logo on any jar before using it as a canning jar. Regular pantry staple jars are not of the same quality.) 4. Your Cupboards If you've just gotten into the trend of canning, chances are good that you haven't been paying attention to the glassware you've collected over the years. Since more and more gifts are coming in the form of "jars," you may find that you've already received cakes, baking mixes, and even candles in genuine brand-name canning jars. 5. Facebook I've already shared how Facebook can be a treasure-trove of reasonably priced used items, and since canning jars are expensive to ship, it's my go-to destination for jars that neighbors and friends are getting rid of. Many times, I'll see that boomer kids are cleaning out the homes of their recently departed parents, and they are anxious to clear the homes of all clutter before they put the homes up for sale. This older generation was known for canning, so be on the lookout for jars and sup

I subscribe to the promotional emails of hundreds of companies so you don't have to. I sift through 1,000 deal-touting emails every week. Most are worthless. But some offer valuable coupons, promo codes, sales and freebies -- which I collect and organize.Note: Expiration dates are in brackets and special instructions are in parentheses.Media"Eating Well" magazine: One-year subscription for $5 at Amazon.com [expiration unknown]. That's six issues. This offer comes with auto-renewal, but you can cancel it if you don't want to automatically be charged for another year."Field & Stream" magazine: One-year subscription for $5 at Amazon.com [expiration unknown]. That's 12 issues. This offer comes with auto-renewal, but you can cancel it if you don't want to automatically be charged for another year.Office and schoolFree personalized desk calendar: At Walgreens Photo online (use code FORTHEDESK) [6/19].Staples: 20 percent off everything you can fit in their bag in stores (print first) [6/22].PetsCat litter: $2 off 8-pound or larger Fresh Step product or 34-pound Scoop Away at Target stores (print first) [expiration unknown].Cat litter: $2 off any size World's Best Cat Litter product (print first) [expiration unknown].TechBatteries: $2.75 off one Energizer Ultimate Lithium, Advanced Lithium or Recharge product (print first) [expiration unknown].Headphones: 71 percent off Pioneer's SE-MJ591 Audiophile Foldable On-Ear Headphones at Buy.com [expiration unknown]. Instead of $300, they're $85 - and shipping is free.Clothing, shoes and accessoriesMessage T-shirts: 40 percent off all T-shirts at BustedTees.com (use code FOURTEEOFF) [expiration unknown].Ann Taylor (women's): 50 percent off all tops in stores and online (use code TOPS50) [6/19].

If you are trying to land a job and have a resume with no experience, don’t lose heart. You can still create a powerful document that will make your interviewer sit up and take notice. Here’s how. 1. Change Your Socks Write your resume with the reader in mind. Get inside her head and slip [...]Related Posts:What are the Sequestration Cuts?How I Won My Credit Bureau Dispute FastRequest A Free ConsultationWhat You Can Expect From Wealth PilgrimFlood and Fire Damage Insurance Companies Don’t Want…

A recent article by Scott Burns talked about investing in deferred fixed annuities with CD-like qualities, an example offered a 3% yield guaranteed for 5 years plus no surrender charges (similar to early withdrawal penalty) after 5 years. This is a better rate than current bank CDs offer, and annuities can grow tax-deferred for those saving for retirement (withdraw as early as age 59.5)*. After the 5 years, you roll the annuity over to another company if the new rate is no longer good enough. The catch? The annuities that have the best rates often don’t have the highest credit ratings. A possible solution? Make sure you stay under the coverage limits of your state’s Life & Health Guaranty Association. From NOHLGA.com: State life and health insurance guaranty associations are state entities (in all 50 states as well as Puerto Rico and the District of Columbia) created to protect policyholders of an insolvent insurance company. All insurance companies (with limited exceptions) licensed to sell life or health insurance in a state must be members of that state’s guaranty association. These are not federally-backed like FDIC insurance. Instead, all the member insurance companies agree to cover each other in cases of insolvency up to the policy limits. In order to be a licensed insurer, you need to maintain a certain level of financial stability. But just like banks, some insurers are stronger than others. So if you’re going to go over the limits, the standard advice is to go with a top credit rating from AM Best, Moody’s, or S&P. However, credit ratings can go down over time, and you may be holding these annuities for many years. Therefore, it’s still safest to stay under the limits. While they vary from state to state, virtually all states offer at least $100,000 in coverage for withdrawal and cash values for annuities. (Connecticut and Washington offer $500,000 in coverage. In California, the limit is 80% not to exceed $250,000.) Look up your specific state’s limits here or here. In order to maximize your coverage, the process is similar to that for FDIC insurance – spread your money across different institutions and use different ownership titles. Let’s say you have $100,000 in state annuity coverage. That value is per owner designation, per company. The Mr. Annuity website has a helpful article [pdf] about how to structure your annuities to maximize your coverage. If a client has $300,000 and wants to make certain all the money is protected, including future interest earnings, while taking advantage of the highest rate possible, we set up 3 contracts in Company A for $80,000 each. In annuity 1, the husband is the Owner and Annuitant. In annuity 2, the wife is the Owner and Annuitant. In annuity 3, the husband and wife are Joint Owners with the husband as the Annuitant. Then, we’ll put $60,000 in the next highest rate we can find in Company B, normally with the husband as Owner and Annuitant. That way, as the money grows, it will be protected under the guaranty laws because they are covered up to $100,000 per owner designation, per company. I made a quick illustration of this theoretical example: Notice that you need to leave some room for growth, that way your future earnings are covered as well. * I’m not saying these annuities are a great deal for everyone. If you are in a situation with a high-income and are already maxing all your other tax-deferred accounts like IRAs, 401ks, and are still looking for safer retirement investments with steady growth then this might be an option to consider due to the ability to get tax-deferred growth with rates competitive with current bond yields. I’m still in research mode. (You may not hear much about these guaranty associations because it is illegal for insurance brokers to use them in advertisements as a reason to buy annuities. I find this somewhat ironic, considering all

At the end of this year’s first trimester, the situation of the national real estate market seemed to present a more positive outlook than most experts, buyers, and sellers would have imagined. The more enthusiastic of them even touted words such as “boom” to describe the increase in housing prices, in the clearance rates at auctions, and, most importantly, in the levels of consumer confidence. While it would be overly optimistic do describe this mild, yet uplifting increase in overall market levels as a boom, it does indicate that 2013 might not spell disaster to the extent to which some may have originally imagined. The housing price stats at the end of February 2013 indicated  monthly increases in four of the eight capital cities, with Darwin leading the pack for its 2.3 per cent rise in prices per dwelling per month. The most significant decrease for the month was posted in Brisbane (-1.1 per cent, down to $420,000 per home, on average). Overall, however, the situation did seem positive: on average, the eight capital cities saw a .3 per cent increase in prices per month, 1.2 per cent compared to the previous quarter and 1.3 per cent on the year. Returns had also increased by 5.7 per cent, the average price was poised at $460,000 and the stats for the rest of the states (i.e. for towns other than the capital city) were also improving: 1.0 per cent on the month, .4 per cent for the quarter, and .4 per cent on the year-on-year indicator. Beyond this optimism, certain key questions persist. For one thing, though the average ratios might seem encouraging, the markets remain highly divided. Price comparisons by property type, price category, and capital cities differ widely – Melbourne alone seems to be genuinely bouncing back and going strong, with the third consecutive price increase on the month. The bottom line is that the property market in Australia is not about to experience a strong comeback on 2013, but it is most likely going to continue on its stabilizing trend. A lot has changed for the better since May of last year, when, according to one survey, property prices hit rock bottom. In the real estate market cycle, that’s also when they started making a comeback. Prices have improved by 3.3 per cent since then and that’s all because buyers are timidly, yet decidedly making their comeback to the market. ‘Timidly’, because they’re being very picky about what and where they buy: areas in Australia where there is a clear surplus in housing stocks are still languishing. The price-location ratio is still the deciding factor and, in earnest, it only makes sense that the buyers should be choosy – the market is clearly a buyer’s market. For this year, the forecast includes more growth on this mid-level segment of the market. The Bankwest Home Loans Density report has shown that though buyers are buying smaller homes for their first home, they are still buying, showing that confidence is also being propelled upward by the lending aspect of the with everyone expecting a comeback in the near future. The question that lies ahead is what’s going to happen when the mid-range segment of the market runs out of well located, fairly priced homes and apartments. The upswing in the property market cycle will also only last for so long, which adds an extra dose of pressure, especially for potential buyers in states that are riding high on the market recovery wave. The construction sector is still lingering – bad news for those who feel that the answer might just come from that direction.