The 5 Financial tips for the first week of February 2013 are given below:
Tip no 1: If the Bush-era tax cuts sunset, everyone will see higher taxes.
Obama was quite determined to end the Bush-era tax cuts. There was a long drawn debate about what would happen if Bush-era tax cut came to an end. Everybody was quite sure that the tax rates would increase after the Bush-era tax cuts were eliminated.
The Bush-era tax cuts were supposed to come to an end on January 2013. However, president Obama had asked the Congress to pass a "small package" of expenditure cuts and tax hike in order to postpone the deadline to March 1, 2013. The tax rates for the people earning above $400,000 have been increased as of now.
Economists are of the opinion that higher tax rates and spending cuts may bring another recession in the country. You need to wait and watch what actually happens after March 1, 2013.
Tip no 2: Pay off your debts before proposing to a girl on this Valentine's Day.
Girls don't like to have relationships with men who are carrying a huge debt load on their shoulders. They despise debt and the men carrying it. So, if you're planning to propose to a girl on the Valentine's Day, then straighten your finances first. Pay off your debts and check your credit score since the girl may ask about them. If you've a low credit score, then the girl may reject your proposal. Never ever lie about your finances. If the girl comes to know about this later, then she may break up with you.
Tip no 3: Savings and investments look likely to play an increasingly important role in ensuring a comfortable retirement.
f you want to lead a comfortable life after retirement, then save money from a young age. Use the saved money to invest in diverse assets. Invest money in those assets that will help you double your money. The living costs are increasing day by day. So, you need to build a fat nest egg to improve your personal financial situation after retirement.
You can consult your financial planner to enhance your knowledge on savings and investment. He can help you broaden your investment portfolio and channelize the profits towards your retirement savings accounts.
Tip no 4: If the planner isn't offering the explanations and education the client needs, it may be time to consider a new advisor.
The job of a financial planner is to help you increase your wealth and lead a healthy financial life. The financial planner is required to educate you about money matters. If you have any question about money matters, then feel free to ask the financial planner. If he/she is unable to give a proper explanation, then it is better to look for a new advisor. After all, you can’t make a financial decision without knowing the reason behind it. You need to know how the decision will affect your life in future from the financial advisor. If he/she can’t give a valid reason, then it’s better to work with an advisor who can give you one.
Tip no 5: Never respond to a message from a debt collector on social media.
Debt collectors are using social media to locate debtors. Some collectors are even using deceitful tactics to trace debtors online. If you wish to avoid such a predicament, then don’t give a reply to a message sent by a debt collector on social media. If you get any message from an anonymous person, then ignore it. This anonymous person can be a debt collector. Don’t accept friend requests from the people without checking their profile in the social networking websites. Look at their profiles minutely. If you feel that the profile is fake, then don’t add the person in your friend list.