Lightship Mutual - The Daily Compass

Heath Ledger Shines Spotlight on Need to Keep Will Updated

2008-08-07T17:16:00.000-07:00

As you probably know, actor Heath Ledger died tragically in January at the age of 28. And, you may have seen recent reports that Heath Ledger's will leaves nothing to his former girlfriend and their young daughter because it was drafted in 2003 (3 years before his daughter was born), and was never...

Suggestions for Using Your Stimulus Check

2008-07-06T06:10:00.000-07:00

If you qualify for an Economic Stimulus payment, and filed a timely 2007 federal income tax return, you've either received your IRS stimulus check already or you soon will (they're being issued through then end of July). But what should you do with it? Of course, the retailers want you to spend...

Lifecycle Funds: Good for Younger Investors?

2008-06-04T07:49:00.000-07:00

A central investing principle states that your portfolio's asset allocation should depend upon your time horizon, which is the length of time remaining until you will need to cash in your portfolio's assets. But how exactly you distribute your money between stocks, bonds, and cash? And how do risk...

Saving for College

2008-05-10T10:47:00.001-07:00

For the 2006/2007 college year, the annual cost of attendance (known as the COA figure) for four-year public colleges was $16,357 and for four-year private colleges, $33,301. The COA figure includes tuition and fees, room and board, books and supplies, transportation, and personal expenses....

Can I Be Automatically Enrolled in My Employer's 401(k) plan?

2008-04-20T06:35:00.000-07:00

In a word: Yes. The IRS has long permitted employers to automatically enroll employees in 401(k) plans. These are sometimes referred to as "negative enrollments" because you have to opt out of participation. Employer Liability Some employers have shied away from automatic enrollment...

Focus on Reducing Your Taxes Year Round

2008-04-14T06:23:00.000-07:00

You work hard for your money. So why shouldn't you try to keep as much of it for yourself as you can? Here are some ways to pay less tax and keep more of your hard-earned dollars every month. Tax Deferrals Rule Take advantage of tax-deferred retirement account such as a 401(k) plan ...

Should You Buy Life Insurance?

2008-04-11T07:32:00.000-07:00

At some point in your life, you'll probably be faced with the question of whether you need life insurance. Life insurance is a way to protect your loved ones financially after you die (and your income stops). The answer to whether you need life insurance depends on your personal and financial...

How to Borrow $1 Billion and Pay Only 2.50% in Interest

2008-04-04T06:49:00.000-07:00

Times are tough. You've got bills. You need cash. And even though we can't know specifically how much money you need to get by, would several billion dollars help? Oh, and don't worry about the interest rate. We'll just settle for a few pennies on the dollar...let's say two-and-a-half...

Secrets of the 80/20 Rule

2008-03-30T06:56:00.000-07:00

The rule--usually described in business--states that 20% of a company's clients produce 80% of the income. As a result, business owners should concentrate their efforts mainly on the top 20% and not so much on the other 80% who disproportionately drain your company's time, energy, and mental...

Why You Shouldn't Track Spending "In Your Head"

2008-03-27T06:39:00.000-07:00

Economics is known as "the dismal science", so you might not expect economists to have much of a sense of humor. But there is at least one joke economists tell that is actually very funny — and very educational. A husband and wife spend a night in Las Vegas, and the man decides to try his luck at...

Foreclosures: An Emerging Business Model

2008-03-24T06:28:00.000-07:00

An enormous amount of "foreclosure bargain-hunting" is going on these days. As the massive number of former homeowners continues to grow, many companies are making hay off of an unfortunate national trend. Auction houses such as Hudson & Marshall and Williams & Williams are currently...

The Real Secret to Instant Wealth

2008-03-21T07:27:00.000-07:00

As money experts, we are constantly asked the question, "How do I become a millionaire?" In the past, our responses involved stock market returns, saving wisely, and spending less...all quantitative measures. And honestly, these elements have been important in unlocking the doors of financial...

Women Need Life Insurance Too

2008-03-18T07:38:00.000-07:00

Today, women have more financial responsibilities than ever before. But, according to a recent industry report, many U.S. women remain without (or with inadequate) life insurance coverage. To be clear, life insurance planning is just as important for women as it is for men. Income...

"Sub-Prime" Mortgage CEOs Escape with $460 Million in Total Compensation

2008-03-15T07:10:00.000-07:00

Three chief executives with ties to the mortgage crisis received nearly a half-billion dollars in compensation over the past few years, according to a congressional report issued last Thursday; these paydays come despite the fact that the values of their underlying companies have collapsed under...

How to Raise $1 Billion in a Year

2008-03-12T07:37:00.000-07:00

According to media reports, our nation's Presidential candidates had a very good fund raising month of February. Barack Obama received a record $55 million, the most ever raised by a presidential primary candidate in a single month. This puts him on pace (if he could campaign for 12 more months)...

Is Your Pension Safe if Your Employer Goes Bust?

2008-03-09T06:58:00.000-07:00

With the current state of our economy, many employers will ponder the idea of reducing employee benefits in order to increase profits. And despite popular belief, many companies do still have defined benefit (pension) retirement plans. So if your employer decides to eliminate the pension plan--or...

A National Recession: How Will it Affect You?

2008-03-06T06:25:00.000-08:00

Many economists believe the struggling U.S. homeowner needs greater assistance from the federal government in order to avoid foreclosure. Federal Reserve Chairman Bernanke agrees. Last Tuesday, Mr. Bernanke called for additional action to prevent our nation's distressed homeowners from ultimately...

Benefits of Donor-Advised Funds

2008-03-03T07:58:00.000-08:00

If you plan to make significant charitable gifts over a long period of time, a donor-advised fund (DAF) can be an attractive alternative to a private foundation. What is a Donor-Advised Fund? While private foundations are separate charitable entities operated by their donors, a DAF is...

How to Insure a Condo or Co-Op

2008-03-01T06:36:00.000-08:00

Insuring a condo or co-op is a little different from insuring a typical home because you don't own the entire building. Usually, two policies are involved: the master policy provided by the condo association or co-op board, and your individual policy, which is typically written on a standard...

Starting a Home-Based Business

2008-02-27T08:41:00.000-08:00

We know. You're sick and tired of the 9-to-5 grind. You want to escape the commute...escape the water cooler...escape the status meetings. There's got to be a better way right? There's got to be a way for you to build your own business at home. As we've described before, self employment has it's...

Building Wealth One Penny at a Time

2008-02-24T07:28:00.000-08:00

Last year, New York City school children went door to door collecting pennies. By asking for only 1% of a dollar, they were able to raise $1 million for charity. Sometimes small actions yield big results. Take a look at three examples of how adjusting your finances by just 1% can make a real...

How To Raise a Money-Smart Teenager

2008-02-20T05:33:00.000-08:00

Today's teens have more money to spend and more opportunities to spend it, and if they're not careful, they can easily get into financial trouble. Before it happens to your child, help him or her learn a few financial lessons. Last month, we discussed surefire ways for parents to introduce younger...

Law Expanded to Help Families of U.S. Soldiers

2008-02-17T07:20:00.000-08:00

On January 28, 2008, President Bush signed into law the National Defense Authorization Act for fiscal year 2008. Among other things, the Act amends the Family and Medical Leave Act of 1993 (FMLA) to permit a "spouse, son, daughter, parent, or next of kin to take up to 26 weeks of leave...

Give Your Valentine the Gift of a Lifetime

2008-02-14T08:45:00.000-08:00

Life's major decisions have a lasting impact, and important financial concerns are often overlooked during this annual holiday of love and consumption. But during this Valentine's Day, spend a moment thinking about all of your loved ones who are: Graduating from collegeStarting a career Getting...

Credit Card Rates Randomly Increasing...For "Good" Customers

2008-02-11T06:03:00.000-08:00

Conventional wisdom says credit card holders who repay their debts on time will receive the lowest interest rates and other favorable perks from banks and credit card companies. However, according to a recent BusinessWeek article, credit card issuers are surprisingly (or not surprisingly) gouging...