Reverse Mortgages are not Risk-Free.
USA.gov sent this bulletin at 06/19/2015 08:30 PM EDT
The reverse mortgage ads you may have read or seen on TV sound like great solutions to older homeowners’ financial strain, but can you trust them?
Not entirely, warns the Consumer Financial Protection Bureau. Many of these ads lead seniors to believe reverse mortgages are risk-free. If you’re thinking of getting a reverse mortgage, learn what the ads don’t tell you and what the risks are first.
If you or a loved one already has a reverse mortgage, take these three steps to protect yourself and make a plan for the future.
During the school year, more than 21 million children rely on free and reduced school meals, but during the summer, only 3.8 million participate in the USDA’s summer meals program. This means that too many kids are at risk of hunger because they are out of school. For many students, school meals provide for over half of their daily calories during the school year, which means that providing these children with access to healthy meals is a big priority.
To help prevent summer hunger, the USDA partners with schools, local governments, and community organizations to provide free meals to children during the summer.
This means that any child under the age of 18 can go to a designated summer meal site and eat for free. But we need your help in ensuring that no child goes hungry this summer. During Summer Food Service Program Kick Off Week, observed June 1- 5, our colleagues at USDA want to invite everyone to help spread the word about this important program.
How you can help:
Be a Summer Meal champion in your community! Check out USDA’s Summer Meals Toolkit:
- Get the word out through community-based outreach
- Find info on program policy and administration
- Get ideas for planning and collaborating with stakeholders
The USDA also has a Summer Food site finder that will be updated soon.
Learn more about Summer Food Service Program.
This article was released by the Consumer Financial Protection Bureau on May 12, 2015.
Sprint and Verizon will refund $120 million to consumers harmed by illegal billing practices
Today we’re announcing settlements with Sprint and Verizon, who illegally billed consumers over a hundred million dollars in unauthorized third-party charges. If approved, these settlements will return $120 million directly to affected consumers.
Sprint’s and Verizon’s customers became victims by clicking on ads for “free” digital content such as ring tones or daily horoscopes, and were then charged without their consent. Many people did not know that third parties could add charges to their wireless bills. The illegal billing often continued undetected for months.
Sprint’s and Verizon’s billing systems invited illegal third-party charges and the companies did little or nothing to root them out. Sprint and Verizon also failed to properly track and respond to consumer complaints about these charges, while collecting hundreds of millions of dollars in revenue by serving as payment processors for these third-party companies. Sprint and Verizon received a 30-40 percent cut of every third-party charge.
Under the Dodd-Frank Act, we can hold companies, including payment processors and lenders, accountable when they engage in unfair, deceptive, or abusive practices.
If you believe you may have been impacted
Verizon customers can submit claims for refunds at www.CFPBSettlementVerizon.com and learn more about the settlement by calling (888) 726-7063. Sprint customers can submit claims for refunds at www.SprintRefundPSMS.com or learn more about the settlement by calling (877) 389-8787.
Funny I am working on a business venture when this song by Chuck D and Flavor Flav came up. I couldn’t resist the temptation because so many people so believe The Hype. I CAN’T You can’t what? You can’t own your own business. You can’t get out of debt. I can’t understand the stock game. YES YOU CAN!!!
One of the things I do on a daily basis is turn on YouTube. It may not have everything, but there is so much on there you will find something you are looking for. Okay I’m real excited about this point. Did you know that there are audiobooks on YouTube free of charge. You won’t tell me that you will never understand business because it is there free. So what is the real problem why you are not changing your life. You will tell me that you are tired of having more month than money. You will tell me I just need enough to get by and have a little extra just for me. No, Don’t Believe The Hype!!! There is so much more to life. The media has us pulled into the hype. When I watch TV I analyze everything. The time of day, the channel and the message. I watch how the commercials are done, who they are advertising to and why they chose this particular station. Yes it is all a plan to put you further in debt. Now understand, I’m not saying that everything is bad because it is not. If you are not working and your at home watching BET be assured you will see a commercial about going to school. Targeted? Yes! While you are sitting around waiting for that dream to come true, educate yourself.
Find your passion job. What do you love to do? No matter what happens or time of day or night you will do this (it may be more than one thing). There is nothing wrong with multiple streams of income. What will you do for free? You love it so much you are willing to just bless people with it. Have you ever received a jar of cookie mix over the Thanksgiving through New Year Holidays? If you love to bake this is such an easy gift to make for your friends. What comes easy for you, but hard for someone else? Sewing comes to mind right here. You can make anything now a days. From the very simple to the very extravagant.
When you click the link The Hype you will here this line in the song Don’t Believe The Hype by Public Enemy. We’re brother of the same kind – the same mind. There is no reason why you are not able to run your own business. The only thing that stops you is your mindset. Your mindset is easy to change. A step a day, a free audiobook for a hour, read fifteen minutes before bed or watch a video while the kids are bathing. I will not tell you to stop working or going to school. Do what you do to get your bills paid. Change your mindset from just getting by to making as much in your own business as you do on your job. YOU CAN DO THIS! Don’t Believe The Hype.
My life took a change for the better on September 10, 2013 and then it got pumped up in September of 2014. Yes, those two dates changed my life. We all have those destiny changing moments in our lives that walk in a say BLAM!!! Deal with it. I don’t know how spiritual you are, but just let me say I was forewarned I just didn’t listen. So here I am no job and then no home. Where do I go from here? It’s funny, I come from a family of fighters. They have owned their own businesses and work against all odds to not only get a Masters, but a Doctorate in their field. So where do I go? Nowhere but up. I have started from scratch more than once and this is not going to beat me this time either.
So why do I say all of this? Because there is someone that needs to read this and get up off their rusty dusty and move. Every time I fall I get up dust myself off and move. What got me here? What do I have that can get me back on track? What do I have to do to get started? Find it and move. We all have a passion for something. The Author of “Think And Grow Rich, A Black Choice” Dr. Dennis Kimbro formulates finding your passion in four questions:
- What is it that I love to do?
- What would I do for free?
- What comes easy for me, but difficult for somebody else?
- Ask yourself, your friends and your neighbors; What do you see me as? What do you think I would be good at doing?
You may find out like me that there is not just one thing. You may be talented enough to have multiple streams of income. Figure out what it is you want to get out of life and define your ambitions. Find your light at the end of the tunnel to guide you through each day and provide yourself with the motivation you need to become (feel) successful. The solution I found that works is to write out my goals, from the small ones to the overly ambitious, monumental goals. I remind myself daily what they are. I feel that writing them down helps me remember. I must admit I have some of them written and I also have pictures of things I want and places I want to go, but ever day I wake up my goals are there. I’m not where I want to be and I’m not making the money I want to make. For me that is reason enough to start my work day. My Inspiration is first on the docket. This keeps me focused. I eat my first meal and read something that is going to make me grow. Second I get dressed and go outside. Rain or shine, cold or hot, I have to connect with nature. I breathe and stretch say thank you for one more chance and come in ready for work. Third I open my to-do list put my head down and go at it. I love music so I have it on and work for a good hour. Fourth get up and walk, do chores or go out for a meeting. Exercising or breaking the pace will help your think pattern. My fifth and last thing is meditation. Your brain does not stop. Put something worthy in your subconscious before your sleep. Give your brain something to do while you sleep you will wake up ready to go.
In your younger years your income is suppose to be what you live on now and your savings is suppose to take care of you in your retirement. We have been trained to place money into a pension plan, a 401(k) or some type of retirement plan for our future. But how are your tax benefits working for you. It is time for spring cleaning your finances. Let’s take a serious look at where we are and where we are going.
Most of us have an employer’s retirement plan or a self-employed plan (SEP), a ROTH IRA or a rollover IRA, a multiple of taxable accounts. All investments are not taxed the same. Some are subject to ordinary income rates ( your should protect your retirement from this one). Your collectibles are taxed at 28%. So let’s break this down a little. Ordinary income rates are going to effect your cash, mutual funds, bonds and any stock held less than one year. It will also effect high-yield stocks and stock funds.
So what do we need to do? Look at your time horizon. How long are you holding on to this money. If you’ve got a long time before retirement start with the most tax-inefficient investments first. So you’e got $140k in stocks and $60k in bonds. You would look at putting the $60k in bonds in your retirement first. You are looking at five to ten year time horizon to capitalize on income. You would look at putting $105k in stocks for a time horizon of ten years for growth and $35k in your taxable account for less than five years.
Let’s also look at your age factors. Age 55 and you are ready to retire, move your employer’s 401(k) first. then at age 591/2 you can move your Traditional IRA. Since you pay taxes upfront on your ROTH IRA and you have your cash you can use them any time. Your HSA’s wait until you are 65 years of age. Remember HSA’s are subject to ordinary income rates unless the mone is used exclusively for medical reasons.
Needless to say we are going to be taxed. The ultimate goal is to learn to invest wisely and pay a minimum of taxes or hire a financial professional that does tax planning as well as your tax preparation. I cannot stress the importance of getting as much education you can on your money and what is going to work best for you. The more you know the less you will lose in fees paying someone else do the investing for you.