The Advantage Advisor

 No money for gifts?

 Housing help

 

The holiday season is here and you have a few more presents to buy, but you do not have any more money in your budget. What should you do? Before you start trimming the holiday list down any further, here are a few holiday gift alternatives to help you with your gift exchange. 

Give a gift certificate. Not one of the ones you buy from the grocery store on the way to the holiday party, but a homemade gift certificate. Remember when you were young or your children were younger, a homemade gift certificate was thoughtful and meaningful. As an adult, we sometimes forget we can still do this for others. 

Take a moment and think about what you like to do, or what you are good at doing. Maybe during the day you work in an auto service shop. Consider giving someone a gift certificate for you to change their brakes for them when they need this service. If you are a landscaper, give someone a gift certificate to trim their shrubbery.

If you have a special hobby you enjoy, use your finished product as gifts. Give a gift of baked goods to someone in lieu of a store bought present.  Most people are too busy in their lives to stop and bake holiday treats. This might be a welcome surprise to someone who cannot bake. If you paint, quilt, sew or just about any other interest, consider giving someone your art as a gift. It will be appreciated more, and it’s more personalized than just running to the mall to pick up something.

Remember the holidays are about sharing special times with family and friends. The holidays do not have to be expensive when it comes to gift giving. Try to stay in that holiday budget by being creative at gift giving. As the old saying goes, “It’s the thought that counts. Keep this in mind when thinking up those gift giving alternatives.

 

 

Q:  I have missed a couple of payments on my mortgage and I’m afraid I will lose my home. What should I do?

 

A: The most important thing to do right now is to take action. Call your lender immediately and discuss loss mitigation options. They may be willing to accept a lower payment temporarily or even modify the terms to add the missed payments to the end of the loan. A counseling agency can also act as an intermediary and speak with the lender on your behalf.

 If you are 60 days or more delinquent and a Pennsylvania resident, you may have received an Act 91 notice. If you did, call us immediately. The Pennsylvania Housing  Finance Agency (PHFA) offers the Homeowner’s Emergency Mortgage Assistance Program (HEMAP), which can help you bring your mortgage current with a loan. It can also stop the foreclosure process when you apply within 30 days of the notice.

PHFA also offers HERO (Homeowners Equity Recovery Opportunity), a program that can help you refinance to a more affordable loan altogether, regardless of whether you are past due. Nationally, the FHA has recently initiated a similar program known as Hope For Homeowners. If your delinquency has been caused by an Adjustable Rate Mortgage (ARM), then you may qualify for an FHA Secure loan. Contact Advantage CCS or an FHA-approved lender for more information or to apply.

 

 

Your money that is held in federal insured banks is safe.

The Federal Deposit Insurance Corporation is an independent agency of the federal government that guarantees the money people deposit in any FDIC insured bank will not be lost in the event of a bank failure.

Savings, checking and other deposit accounts are protected.

Deposits of up to $100,000 were insured, but that amount has now increased to $250,000.

The FDIC supervises more than half of the institutions in the banking system.

 

Information: www.fdic.gov

 

With the start of a New Year, it’s time to start thinking about your New Year’s resolution. Coming up with new ways to save and invest your money is a great way to kick off 2009.

Whether you are looking to build a retirement account or save up for your next large purchase, putting away those few extra dollars is always a great idea. There are many different options to choose. You should always consult a professional financial advisor to assist you, but here are some descriptions of your options.

When you are looking into saving money, the options you have depend on how accessible you want your money to be.

With a savings account you have the benefit of easy access to your funds while putting them aside for a rainy day. In return for the easy access, you generally get a lower rate of return.

If a CD is your savings of choice, keep in mind that there are fees for early withdrawal. The premise of a CD is to put your money away for a set period of time, perhaps six months or a year. Also keep in mind that by sacrificing access to your money with a CD, you generally get a higher rate of return.   

Investing money has many diverse options in today’s world.

Stocks, Exchange Traded Funds (EFT), mutual funds, and bonds are a few of the most common types of investments. 

A stock is a share of ownership with a given company. The value of the stock is determined in part by how well or how poorly that company is performing. Stocks can sometimes be an inexpensive gateway to investing. Some cost only a few dollars a share. Stocks do come with a high level of risk. Depending on how a company performs, it is possible to gain or lose a large portion of your investment at any given time. 

EFTs, or Exchange Traded Funds, are a collection of stocks or investments that usually focus on one specific industry. For example, an energy EFT would contain stocks from oil, natural gas, or electric companies. With this investment, you are “betting” that a particular industry will do well instead of an individual company. While you are somewhat shielded if a particular company does poorly, there is still the risk that an industry overall will go up or down, much like an individual stock.

Mutual funds are a professionally managed group of investors pooling their money to buy stocks, bonds, and other securities. With a mutual fund, the cost of investing and any potential profits are shared by the group. Mutual funds are also handled by a professional investor, which is an attractive feature for the average person. As with stocks and EFTs, the value of mutual funds can go up or down as the market dictates, thus exposing the investor to potential gains and losses.

Bonds are similar to stocks, but with a few major differences. While a stock is a share of ownership, a bond is a loan to a specific company. The value of the bond is paid back with interest. Bonds also carry a maturity date. This means that to get the full return from your investment, you would have to hold on to the bond for a set period of time. 

Now that you know what options are out there, decide what your goal is going to be.  If you are interesting in saving for a short-term goal, the advisers at your local bank will get you pointed in the right direction. If you are looking to invest, consult with a professional for more information and advice. 

 

Pay cash for Christmas.

Now that the holiday season is in full swing, get out your holiday budget and review it.

How much did you allot for each category? How much have you spent so far?

Reassess your finances to see if your budget is realistic. If it looks like you won’t have enough cash to cover your expenses, find ways to trim your budget.

You may need to take a moment to put things in perspective. Remember past holidays. What stands out in your mind? Chances are your memories aren’t based on expensive gifts and lavish dinner parties.

If you need help looking for frugal gift ideas, read “Gifts on a budget of $0.00” on the front page.

 

Nationwide housing help:

 

Pennsylvania housing help:

 

Federal Deposit Insurance Corp.: 

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