Ways To Money

The Chicago Board Options Exchange (CBOE) will soon permit futures trading in housing through a derivative based on the Radar Logic Composite Price.  According to information released by Radar Logic, a New York City real estate data and analytics company, this derivative will allow institutions both to hedge against downturns in housing prices and to allocate portions of their investment portfolios to housing assets without the search, transaction, and maintenance costs association with purchasing physical properties.  Or, as the background information the company released today says, “RPX futures will allow you to invest in residential real estate without having to mow the lawn.”

It is not our purpose to assist Radar Logic in its promotional campaign nor is this intended as a discussion of the appropriateness of encouraging further speculation in the housing market although that discussion could be a worthy one.  However, the “RPX Housing Market Review” released by the company last week does explain the methodology underlying calculation of the Radar Logic Composite Price and provides a context for anyone who is interested in following this new market.

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Ugh, taxes again? Yeah, unfortunately its time the tax talks start happening. For those who want to get the tax preparation process out of the way should consider heading to the closest Walmart for some free tax prep.

Mid-January of last year the giant retailer partnered with Jackson Hewitt to offer tax preparation services starting at $38 per return. This year, H&R Block and Jackson Hewitt will both be offering free preparation on the 1040EZ forms through February 29.

Starting today, 3,000 Walmart stores across the nation will be host to kiosks from both, H&R Block Inc. and Jackson-Hewitt Tax Service Inc. Each kiosk will have trained preparers ready to help customers complete their tax returns.

You probably will see more Jackson-Hewitt signage though, as the company will be at 2,750 Walmart stores — H&R Block will only be at 250.

After a few years of struggling to retain market share, H&R Block found that offering free tax rep through every means possible, including Walmart is the best tactic to getting people in the door. While H&R Block does advertise completely free preparation of Form 1040EZ, you should be warned that Jackson-Hewitt has a clause saying free 1040 EZ prep is not necessarily the policy at every store (but still offered at some). Cust

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People who purchase stuff from certain websites appreciate the existence of trusted SSL certificates in the site itself. Aside from convenience, online buyers also consider security an essential element when they do their purchases. Before engaging in any online transaction, they make sure that the website that they are doing business with features an SSL Certification.

SSL is a short form for Secure Socket Locker. Trusted SSL certificates are verification tools that show clients that a website is safe from entities that are out to get private client information. With identity theft on the rise, more so during the holidays when consumers purchase a lot of things, its important that sites protect the information their clients provide them. An SSL certificate helps them do just that.

Online businesses that sell products or services to clients must be secure enough for people to entrust them with purchasing information including social security and credit card numbers, home addresses, birth date and many other confidential data. This can be achieved with the help of an entity called a Certificate Authority or an SSL Certification Provider. These companies use a certification that contains information that certifies they are who they say they are and that they are not phishing sites that are out to seize vital information for wicked purposes.

The following are all contained in trusted SSL certificates web site owners name, email address, validity dates of the certificate, and the certification ID.

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Our series about six options if you are underwater on your home has drawn a lot of comments. Some readers are wondering whether they should stay and pay or try to get out. Heres a reader question we received this week:

Dear Stuck,

I can only imagine how stressful this situation is for you, but I think you need more information before you can make a decision. You dont need to go into analysis paralysis but you do need to investigate three things in more detail:

Find out exactly what kind of places are available to rent closer to work in your price range. Dont just look onlinego and look at some places and talk to the landlords so you can get a good idea what they require in terms of first and last, security etc. Get a good feel of whether you could rent an acceptable place for what you are paying now. (And of course check out schools since that will be an important factor with a young child.) If you are in a position to buy in another year or two, consider also looking at homes to rent with an option to buy.

If you discover that youd have to pay a lot more to live closer to work, or if you cant find something acceptable in a decent school district, you may decide that its better to stay put. Or maybe youll discover that for a little more you can get a decent place and save an hour a day in commuting time. You wont know until you hit the pavement and check out whats available.

Find out if you will be on the hook for a remaining balance. If it you have a non-recourse loan, the property is the only collateral for the loan and you can likely walk away without worrying that you will be sued for a deficiency. Many purchase money mortgages in California are structured that way. If you are not sure, make an appointment to talk with a real estate attorney who can review your paperwork with you.

Find out what your tax liability may be. Meet with a tax professional (an enrolled agent or CPA) with experience in handling 1099-C and 1099-A issues to learn whether you would owe taxes on the forgiven balance if you do a short sale or walk away. You may be eligible for the Mortgage Forgiveness Debt Relief Act or the other exceptions or exclusions I outlined in my previous article on this topic. This is an important question because you dont want to be surprised with a large tax bill.

Read: 1099-C In the Mail? How to Avoid Taxes on Cancelled Debt

Since you bought your home for $455,000 and owe $190,000, it sounds like youve lost quite a bit of money that you put into it. That has to be a very tough pill to swallow. It also sounds like you are worried the value can go down further. Its impossible to predict, though, how much further home values will drop or how long they will take to stabilize and then start going up again in your area. That means there is no single right or wrong answer here. Gather some more information and make the best decision you can knowing that at least youve made an informed choice to stay or leave.

Why Talk to a Financial Planner?

First of all, it is very important for you to know the reasons why talking to a financial planner is a totally recommended step and the advantages that will be provide to you by taking such action. And one of the most basic things you will need to know is the fact that only with the skills of such an expert who is licensed you will be able to achieve a better performance when it comes to tailoring the plan for your life insurance policy.

Furthermore, a financial planner will be able to provide you with some pieces of advice that apply specifically to your situation. This kind of personalised advice is one of the best things you can get and in most of the situations it will really help you improve your overall financial situation and the experience with your finances.

With the relevant suggestions and strategies from a financial planner, combined with the ongoing study that such a person is able to undertake for you in order to ensure that everything is going well, you will be safer than ever and updated with all the advantages and disadvantages of certain insurance policies and products made available on the market. As a consequence, you can be sure that you will be on your way to taking the ideal decision for you.

The Actual Questions

Question Benefits What are the different aspects of tax implications and some other basic features like cost savings? Full Post…