The corporate owned life insurance or the COLI as it is usually called is being owned by the company or the corporation. Generally the company buys such insurance policy for each of its employee. All the benefits related to the insurance policy are being enjoyed by the corporation. The corporation really enjoys all the benefits.

In the past when there was no such insurance policy, the company really used to suffer a huge loss when their employee use to leave the job or some high official used to die. All such cases really ask for sudden recruitment and I do feel that this is impossible if the company had not insured itself from all such cases.
Coli are used primarily for masses of non key employees in order to get the tax benefits. This is a practice which is known as janitor insurance or the dead peasant insurance.

Can you really give answer to the fact that why most of the fortune 500 companies buy the corporate owned life insurance? I must tell you that they do this because they find it beneficial. This insurance program is generally made for the corporations only. The premium for such insurance is paid by the company itself. However the company cuts some part of the salary of the employees' salary and then collectively pays the insurance premium. I must tell you that this is not the health insurance which the company asks their employees to participate in.

If you are an employee of any company then you must have been sometimes asked to sign in any stamp paper. If you have read it carefully then you must remember that that document is the proof in the hands of the company that you are the employee of the company from the date stated and you are given the specified salary. You must have questions in your mind that what does this really mean? How is the company benefited by such policy?

I must tell you that the company really asks you to sign the agreement because it wants the bank know that you are the employee in their company. By specifying such thing the company gets the tax benefits. They are then required to pay less tax as compared to the previous tax.

If the employee dies then the company pays heavy compensation to the family of its employee which is based on the grade of the employee. Do you still feel that the company is in loss after paying such compensation? This is certainly not the case. The company really gets its share from the insurance company who are really responsible for paying such compensation. I do feel that you would have now got the point what this kind of insurance is really all about.

Personal Finance Tips for You includes twenty-four topics covering an array of areas. The author states in the introduction "it is important to know as much as you can about managing your personal finances in these economic times." Some of the areas covered are credit card traps, keeping on track to pay your bills, handling your checkbook, the price of gas, identity theft, catching up on retirement planning, what to do if you receive a lay off notice from your job, checking your credit report and talking about finances if you are planning to get married. These are just a few of the topics. There are many more.

The first topic covered is Don't Get Caught Up in The Credit Card Trap, Stop Yourself Before That Happens. This is a very important chapter for everyone to read because it is so easy for this to happen in tough economic times. The author offers several excellent tips to help anyone who has this problem. It is clearly explained why it is so important for you to pay down the credit card debt.

Another important topic covered is How Do I Keep On Track to Pay My Bills on Time. The author gives the reader some tips on creating a budget and keeping track of your income and expenditures.

How do you survive the high cost of gas? We all know, not long ago the price of gas kept soaring. The author gives us many tips on how to save money by doing some simple things like consolidating trips just to name one of the pointers. There are many tips mentioned that I never thought of myself.

How do you establish your credit if you are young and just starting out on a job? Nocita Carter tells you exactly how to go about doing this.

Do you think you can save any money by just saving your change? This is one of the tips made by the author. I can personally vouch for this one because each day when I purchase an item, I take the change and add it to an old coffee can. After a few months, it gets quite full. I am always surprised by the amount of money I saved from my loose change.

I could go on and on with each chapter because there are so many good points in this book but I think you get the message and would get more out of Personal Finance Tips for You if you purchase it and read it yourself.

There are several aspects of this book that I really liked. It is written in language that is very easy to understand. It is not like some of the other books on finance that require you to have a dictionary by your side as you read. The book is very organized. Each chapter starts with an introduction to explain the topic. Once that is done, the author lists several tips to help the reader accomplish these tasks. Nocita Carter has written this book in a manner that makes the reader feel like they have a personal finance expert right there beside them. Personal Finance Tips For You is recommended for any age. It will be a valuable tool for younger people who are starting their first job. On the other hand, one is never too old to find something they did not know in this book. After reading this book, I learned quite a few tips to help me with my finances. You will find this an excellent resource guide to keep by your side at all times.

You can legally erase your debt but you need to have a plan of action. During tough economic times many people are facing large amounts of credit card debt. If you have recently lost you job then it makes it even harder to make your monthly payments on time.

First you need to make a list of all the monthly bills you have. Also you need to make a list of all the items you spend money on because this will help you understand where your money is being spent. You are going to be shifting some of your spending into eliminating your debt and once you do this you will see your bills get paid off.

Next you need to decide if you need to get a debt consolidation loan. It is a good idea to talk to you bank and see if they offer a low interest loan. It can help you to pay off your debt as well as reduce the amount of stress you have in your life.

It is easy to legally erase your debt when you take control of your finances. Some people may just stop paying there credit cards but this will only hurt your credit rating. You may have to wait up to seven years before you can get any negative items off your report.

Remember that erasing your credit card debt needs to be a priority for you. When you have a plan of action then it makes it easier for you to become debt free. You need to know how much you owe on each bill and also what rate of interest you are paying. If you follow a plan then in no time you can legally eliminate your debt.

If you are a small business owner, you know there was welcome relief in the American Recovery and Reinvestment Act of 2009, popularly known as the Stimulus Act. So what was so great about the Act? Among other things, section 501 reduced the fees paid by borrowers so they did not have to pay the dreaded "SBA loan guarantee fee". This was traditionally 2% of 75% of the loan amount on the large 7(a) loans. Also, section 502 increased the guarantee percentage which pays banks their losses upon default, from 75 to 90%. Cause for celebration? Absolutely. But we must temper our excitement with the fact these benefits may no longer be in effect if Congress does not appropriate more money. In fact, some pundits think it may run out in December based on the volume of SBA loans.

To understand this, you have to get a grasp on why more money is needed. Prior to the Act, banks were given more incentive to make loans because the SBA would step in and pay their losses by a certain percentage. When the guarantee rate went from 75% to 90%, coupled with a higher default rate because of the economy, the Feds had to shell out more money to the banks. And then there was the waiver of SBA guarantee fees which are subsidized by taxpayers-you and I. Without the money, those incentives go way.

So, things were really percolating along as a result of these incentives. In the beginning of 2009, the SBA approved approximately 165 million loans. But by July and August, the figure had risen to 320 million and 400 million respectively. More loans simply meant more risk-increased expenditures by the government.

And so what is Congress doing to find the extra funds? It is probably unlikely to secure additional appropriation in the new Stimulus Act amendments since they have already passed committee and did not include such measures. Instead, Congress is looking into any unused money under our friend (depending on what political aisle you're sitting on) the Troubled Asset Relief Program (TARP). This originally allocated funds to prop up the secondary market. Amendments to that bill could provide some of the appropriation necessary.

Translation: as small business owners we don't care what you call it or who's doing it, just as long as these incentives continue. The fact that there are actually banks making small business loans does wonders to provide needed capital and at least keep our hopes alive in this anguishing financial market.

So what does that mean to me as a small business owner? I'm not interested in a large loan with a lot of paperwork. I simply want a streamlined loan application where I can receive unsecured monies in the neighborhood of 5K to 50K . The last thing anyone wants to see is this type of loan going away. Well, you are in luck. Because of these incentives, banks are actually making these loans under a popular program called SBA Community Express. It does not require business plans, tax returns, or financials , and is now running at the rate of approximately 7.75% or $60 per month for every $5,000 borrowed. We can only keep our fingers crossed that this golden egg laid by Congress remains available.

Saving money can be difficult, it is common knowledge that the more people earn the less they manage to save, simply because as your income goes up so does your life style and a bigger and better life style often draws more unseen expenses.

Even though a lot of people earn more than enough money to save for the future, very little ever get around to doing so simply because of the above statement. I believe that this is largely due to the fact that most were not conditioned to save money from an early age. Saving money is just a habit, no harder to perform than spending money to buy lunch at work on Fridays instead of bring your own, if you can't relate to that analogy then I am sure you can come up with many of your own. It is simply a habit of giving away money to get something in return only instead of getting the immediate pleasure of food you get future security.

This brings me to another of the main barriers to being able to save: An individual's inability to see the benefits of future investment. For many people it is simply a matter of making it clear in their mind that the immediate benefits of spending money now are no greater that the benefits of savings for the future, in fact they are less because you can earn interest on the money saved and buy items that were previously not affordable.

The secrets to making saving money easy:

To best explain where the problems in saving money lie I will use a very basic example. I hope for this to make it clear to anyone interested that overcoming both the lack of a saving habit and a vision of the benefits in investing for the future can be easy and even enjoyable as you watch your account balance grow.

Most people when trying to save take what they earn and spend from this amount the money they need to:

- Pay the rent, electricity, gas, water, phone, internet and other bills
- Go out socialise on the weekends and possibly during the week
- Buy the luxury items they think they need
- Plus whatever else you can think of

After all this they plan to save whatever is left. Can you see what the major problem is here? There is never anything left over to save, people will be in the habit of always spending every last dollar of their wage.

All that is need to save easily and effectively is to take what you earn and deduct from it a percentage to put away (preferably into a bank account that is more difficult than usual to withdraw funds from) it doesn't really even matter what the percentage is, the main thing here is that you are building the habit. Once this is set up you are free to blow the rest as you please! That's right spend it however you please!

I have found that people enjoy their money a lot more this way, because once a person knows they are saving, they no longer need to think or feel guilty about the fact that they are not saving for the future. Trust me I have done it and I have seen many other do it.

Once the above method is implemented for a relatively short period of time the person will no longer need to try and save, they will now be in a habit of saving and on top of this they will have a bank account with a substantial amount of money in it to help keep them motivated to continue saving further and possibly even more. Though it does require some effort and discipline in the beginning, it is only a matter of time before the habit takes over and from there it is smooth sailing.

I have found that one of the best ways to save money is to create an alternate income online. I personally do this by doing online surveys on a regular basis. I make a little extra money that goes directly into a bank account that I cannot easily make withdrawals from. Plus I find them fun. If you would like to get started making money online doing paid online surveys then visit the below page for a list of all the best Online Surveys in Australia.

The cost of debt is at a cripplingly high level and it seems nobody is immune. If you are one of these people, don't fret. You can eliminate unsecured debt using one killer technique. After reading this short article you'll be able to move one step closer to being debt free. Read on to see the best way to go about it...

The Good Thing about Unsecured Debt
I know you may be thinking, "What does he mean by 'good thing', my debt is killing me". Well the word good is probably not the best word but let me explain. If all your debt were secured (by collateral) your creditors could easily recover the amounts owed by claiming these items of security.

So if your house was used as security they could take that. If your car was used they could take that. What is good about unsecured debt is that it's not backed by anything except a legally binding agreement. In other words, when you get something like a credit card, all you say in legal terms is that 'I promise to pay'. This is why I say that unsecured debt may be better to have than secured debt. Moving on...

Eliminate Unsecured Debt - Why Debt Settlement Works Best
So we know that having unsecured debt is not such a bad thing when compared to secured debt, but how do we go about reducing eliminating it. Well, the single most effective method is through debt settlement.

This involves negotiating a write-off of a portion of your debt with your creditor. The simple fact is that in today's turbulent economy, many people simply can't afford to repay their loans. Creditors have therefore taken steps to protect themselves by negotiating more and more debt write-offs.

You may be wondering why they (creditors) would do this. Well, the answer is simple. Rather than have you declare bankruptcy in which case they get nothing, they opt for a portion of the loan being repaid. There is a slight cost to them but at least they don't lose out entirely. The process takes a while, usually 12 - 36 months but if handled by a professional debt settlement specialist, you can see a significant reduction in your unsecured debt.

I hope you see that eliminating unsecured debt is really possible despite the tough times we are in. And I trust that this article has made it easier for you to go about eliminating your debt.

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Taking control over personal finance is one of life's most rewarding experiences. Regardless of how bad your financial situation is, there is always a solution. With a little financial soul searching and thorough review of finances you can slay the financial dragon that is causing you to live paycheck to paycheck.

The easiest way to take control of personal finance is to develop a household budget. The first step of budgeting involves making a list of income and expenses. Start by listing recurring expenses such as rent or home loan payments, car loan payments, utility expenses, insurance premiums, transportation costs such as gasoline, parking, bus or taxi fare, and groceries.

Next, create a list of household income. This can include employment wages, child support, alimony, income earned by a spouse, and other types of income earned on a regular basis. Make certain to tally up after-tax income to obtain a true picture of available funds. If expenses are more than total income it is time to make budget cuts or increase income.

The best thing about budgeting is it doesn't cost additional money. It is easy to create a simple budget with nothing more than a piece of paper and pencil. For most people, the hardest part of budgeting is sticking to the financial plan. One solution is to turn budgeting into a game and challenge yourself to see how much you can slash expenses.

Many people do not realize they can reduce monthly expenses by contacting various service providers. One easy way to reduce utility bills is to enroll in budget plans. Most utility providers offer monthly budget plans which allow customers to pay the same rate each month. Utility budget plans can be especially beneficial during winter and summer months when utilities can soar. Visit utility provider websites or call during business hours to enroll in budget plans.

Reducing the cost of cable TV and internet services might be as simple as picking up the phone or talking to an agent online. Before attempting to negotiate cable costs take time to research competitor pricing. Compare rates for packages similar to what you currently have and make note of each.

Contact your cable provider to let them know you can obtain the same package at a reduced rate through their competitor. Most cable companies offer discounts to new subscribers and those who purchase two or more services, such as phone, digital TV, and internet service. Reduced pricing typically extends for six to twelve months.

Cable providers are often willing to temporarily offer a reduced rate to retain your business. If they are unwilling to discount current services, consider switching to their competitor or reduce the services you purchase from your current provider.

One of the biggest expenses for families is the cost of groceries. If you aren't using manufacturer and in-store coupons, now is a good time to start. Grocery coupons are inserted in Sunday papers and savings can easily recoup the cost of paper delivery services.

Manufacturers oftentimes offer money-saving coupons via their websites. Others utilize Facebook fan pages to provide coupons and rebates. Several websites are dedicated to providing grocery coupons that can be printed from the comfort of home. While clipping coupons might sound dull and boring, they can add up to hundreds of dollars in savings each year.

The only way to gain control over your money is to be hyper-aware of where it is being spent. Start recording daily expenses on a piece of paper so you can easily determine which items are draining your bank account. Most people are unaware of how much money is spent on items they don't really need.

If personal finance is out of control and you rely on credit cards to get you through the month, consider credit counseling. Many credit counseling agencies use a sliding scale and charge fees according to income. Non-profit credit counselors can help people with low-income take control of finances and begin saving for the future.

The current economy has motivated many to begin to provide their children practical financial literacy lessons. Teaching personal finance and raising money smart kids will help keep America strong.

James Truslow Adams, the man that coined the phrase "American Dream" in his book Epic of America, is quoted: "The American Dream is that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement."

Teaching personal finance and raising money smart kids give our children the ability to recognize and capitalize on opportunities which will help them in pursuit of their own personal American Dream. This "Dream" can be achieved with practical financial knowledge and through teaching personal finance our children's future will be much brighter.

Our children face an almost certain future of higher taxes, less services, and the elimination of the current social security & Medicare system. Read the reports from the Government Accountability Office and you will find that the SSI system will be bankrupt in 2037.

Although it is true that our children will face bigger economic challenges than we had to go through; however by teaching personal finance and raising money smart kids they will be able to achieve their own personal American Dream.

What is available for us to begin teaching personal finance to our kids? Schools' With all the requirements placed on testing (No Child Left Behind) and the disturbing fact that most schools aren't given the budget they need - this probably is not where most of our children will receive their financial training.

Parents - Most youth do rely on their parents as the primary source of their money knowledge; however, as the statistics clearly show, most parents do not possess the knowledge necessary to effectively teach their kids about money. They want money smart kids but most were not trained on how to begin teaching personal finance to their children.

There are financial literacy courses that are designed to help you raise money smart kids. Recent home-study financial literacy courses are now on the market and are designed to educate & entertain youth while instilling practical financial lessons. Some even have partnered with sport stars & celebrities to create a powerful draw so your children want check out what their favorite celebrity is doing and picking up money lessons along the way.

There have been several courses that are specifically designed to help parents to begin teaching personal finance. These courses walk parents through the basics of raising money smart kids and often the parents learn as much as the children.

Nonprofits - There are many nonprofits doing great work helping to spread the message of financial literacy and training our youth with practical money skills. Fortunately, financial literacy grant money and corporate sponsorship are empowering many nonprofits with the ability start teaching personal finance so the next generation the pickup the practical financial lessons we "learned the hard way".

Private Companies - There are companies that thrive in every type of economic environment and in an environment where a lot of people are going through tough circumstances, financial education companies stand to profit while helping people improve their financial situation.

Right now the financial literacy movement is expanding faster than ever at the grassroots level. People want to begin teaching personal finance to their children because they want money smart kids. We commend you on reading this article and looking for ways to empower youth with the financial literacy skills they need in the 'real world'

Through collaboration with parents, nonprofits, schools, teachers and business leaders - we can begin teaching personal finance and ensure we are raising money smart kids. Doing so will help these youth get the skills they need to live the American Dream.

Many people are buying a second home. They might do so to have a vacation home with the possibility of selling it at a substantial gain in the future. Another reason people buy a second home is to use it in the future as a primary home, perhaps in retirement. They might prefer to purchase the second home now to avoid the possibility of having to pay considerably more for it in the future.

What are the tax benefits and potential tax pitfalls in purchasing a second home? The first benefit is that the real estate taxes on a second home are deductible as an itemized deduction. However, a potential pitfall exists if the taxpayer is subject to the alternative minimum tax (AMT). Real real estate taxes are not deductible for AMT purposes.

The mortgage interest is also deductible as an itemized deduction on mortgage loans up to a maximum of $1,000,000 on loans used to acquire, construct, or substantially improve the taxpayer's primary home and the taxpayer's second qualified home. A refinancing of acquisition debt is considered acquisition debt to the extent that it does not exceed the balance before refinancing.

Another tax benefit for owning a second home is that the taxpayer may deduct interest on home-equity loans up to a maximum loan amount of $100,000. A home-equity loan is considered as an acquisition debt if the taxpayer uses it to make a substantial improvement to the primary home or second home. The loans may be secured by the primary residence and/or the second home. For tax purposes, a home-equity loan includes the excess of the balance of a refinanced acquisition loan over the balance before the refinancing unless the taxpayer uses the excess to make a substantial improvement to the home.

A tax pitfall is that the interest on a home-equity loan is generally not deductible for AMT purposes. An exception applies if the taxpayer uses the proceeds of the loan of the loan to make a substantial improvement to the property.

If a taxpayer rents a second home to a tenant for 14 or fewer days during the year, the rent income is not taxable. The taxpayer may still deduct the real estate taxes. The taxpayer may deduct the qualified mortgage interest as long as the taxpayer used the second home for personal purposes for a number of days that exceeds the greater of 14 days or 10 percent of the number of days the taxpayer rented the house to a tenant at a fair rental. If the taxpayer does not meet this test, the second home might be considered as rental property.

A potential tax pitfall on a second home is that any gain on the sale of a home that is not the taxpayer's principal residence is taxable. It would be taxable as a capital gain because a personal use asset such as a second home is a capital asset.

The exclusion of gain up to $250,000 ($500,000 on a joint return) on the sale of the taxpayer's home applies only to the sale of a home that that the taxpayer owned and used as the taxpayer's principal residence for at least two of the five years before its sale. A taxpayer may have only one principal residence at a time.

A taxpayer could sell the primary home and exclude the gain up to the limit and then move into the second home and use it as a primary residence for at at least two of the five years before the taxpayer sells it. By doing so, the taxpayer could use the exclusion of gain provision on both homes. The potential to exclude the gain on the sale of both homes up to the limit using this strategy is a major tax benefit.

Another potential tax pitfall on owning a second home is that any loss on the sale of a home used as the taxpayer's residence, whether as a primary home or as a second home, is not deductible because the loss is on the sale of an asset used for personal purposes.

An individual should consider many factors before buying a second home, such as cost, convenience, and potential gain. The tax benefits and potential tax pitfalls are some other key factors to consider before buying a second home.

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President Obama has made it clear that he is working to assist many consumers who are in desperate need. Read below to find out how you can take advantage of free debt relief government grants.

In tough economic times it is important for the Federal government to step in and shake things up a little bit to help the economy get back on track. The first thing that needs to happen if the economy is going to stabilize is there needs to be increased consumer spending. This is something that President Obama has made clear that he is going to try to stimulate. Whether it is a tax credit for buying a new house or car, a free $300 stimulus check for all taxpayers, or government grants for people in need he has been trying to help. The federal grants are one thing that has not been highly publicized. One group of people that can really benefit from specific grants are people that are having difficulty repaying student loans.

Not consolidation, just wiping debts clear:

Every year the federal government sets aside billions of dollars for grants to help people in financial trouble. A large portion of this money is specifically for people trying to repay student loan debt. This is NOT debt consolidation or just a lower interest rate. This is a FREE government grant, intended to help people who are defaulting on their student loans to get caught up with their finances.

Who is eligible?:

Not every person who is having a difficult time repaying their loans is eligible for Obama's grants. These are reserved for those that are already in default, or that can show on paper that they are headed towards default. These grants are available for these people because the economy needs them to have more spare money to spend on, well, spending. Defaults on loans mean that these old students are paying hefty fees and are receiving higher than usual interest rates, which will only make it more difficult to get back to paying towards their principle.

Free with no collateral needed:

These grants are completely FREE. Again, this is not a loan. There are no interest rates and no fees to sign up. Even better, there is no need to put down any sort of collateral because there is no fear of default. Your credit score does not come in to play either. Be sure to check out how Obama is looking out for those in student loan default and get your free grant today.