High qualityinvestment planning software is necessary to generate a fully personalized family financial strategy

Our free “financial freedom guide” personal financial planning website publishes write-ups on how to produce do-it-yourself personal financial plans

The financial and investment planning postings on this free information site supply important ideas to households about personal finance plan topics that they should consider. These essays help in establishing a lifelong personal finance planning strategy. Furthermore, to generate a fully comprehensive plan for financial success requires that you use a first-rate financial planning calculator with the top investment calculator and the top financial calculators.

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Gauge the level of your portfolio’s overall diversification with this free on-line tool

Whenever you invest in multiple mutual funds and ETFs, you may wonder how broadly and appropriately diversified your aggregate portfolio might be. Have your investment holdings and mutual funds that you have chosen increased the global diversification of your personal financial asset portfolio? Do they just duplicate what you already own?

There is a free on-line tool that you can use to measure your portfolio diversification, and better understand the relative contribution that each of your investments makes to your goal of holding a broadly diversified global investment portfolio. On the Morningstar website, you can find their “Instant X-Ray” tool. Go to the Morningstar site at http://www.morningstar.com/

Click the “Tools” tab in the horizontal bar, select the “Morningstar Tools” pull down menu, and then choose “Instant X-Ray.” To go directly to this tool, use this URL:
http://portfolio.morningstar.com/NewPort/Free/InstantXRayDEntry.aspx

To use the Instant X-Ray Tool, just enter the ticker symbols for all of the mutual funds, ETFs, and individual securities that you own or intend to own with the dollar value of each holding. Then, click “Show Instant X-Ray” to see a summary of your overall portfolio.

Note that when you enter only one mutual fund or ETF ticker symbol or only one stock or bond holding into the Instant X-Ray Tool, the summary provides data for that single fund or security. This can be very useful, as you evaluate individual investment funds and investment securities. When you enter multiple funds, you will get an overview that blends all the funds and securities in proportion to the dollar values that you enter for each holding.

This free Instant X-Ray summary provides a variety of data about your overall portfolio. The overview allows you to evaluate how diversified your portfolio is on a variety of dimensions, including the major dimensions that are summarized in the other articles on this website about selecting a broadly diversified investment portfolio. (See the Sitemap for these articles.)

Incidentally, if you click on the other views that are offered with the Instant X-Ray tool, then Morningstar will try to get you to sign up for a “Premium” subscription. The information provided by this free summary overview in the Instant X-Ray tool is sufficient, and you are not required to pay for a premium subscription.

Note that there is no relationship between this website and Morningstar, and this website did not receive any form of consideration, financial or otherwise, to write this article. The “Instant X-Ray” is a useful financial tool for individual investors, and that is why we have provided this article.

Personal financial planning tools are recommended to generate a thorough plan for your financial freedom

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The personal finance plan essays on this free web site give important ideas to families and individuals about financial planning program strategy subjects that they should consider. These write-ups help in producing a life time family financial planning strategy. Also, to establish a fully personalized plan for your financial freedom demands that you use an excellent financial calculator with a high quality investment calculator and the top home financial software.

In addition, our free financial freedom information site helps you find the best ALL-IN-ONE financial planning software program home software product with a high quality retirement investment calculator tool, the top personal budgeting software, and the leading investment calculators for your personally customized life long family financial planning.

Guard Your Credit in the Event of Financial Identity Theft

Without becoming a victim of identity theft, you can get a free credit report from each of the three credit reporting agencies once a year. Federal law requires the three major credit reporting agencies to provide these free reports annually. To satisfy their obligations, Equifax, Experian, and TransUnion jointly have established www.annualcreditreport.com, where you can order your free credit reports.

You can also call them at 1-877-322-8228 or write to them at Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Because the material in your credit reports is usually largely redundant across these three companies, stagger your requests over the year and rotate between the three firms. If there is any problem with your credit report, it usually will show up on any of your reports from these three firms.

(Avoid using any of those obnoxious free credit report copycat companies, such as “freecreditreport.com,” that advertise on TV, but will only supply “free” credit reports, when you pay a lot for their other supposedly valuable premium services. Also, if you are a woman, you probably have already figured out these freecreditreport.com TV advertisers are not to be trusted. Incredibly cluelessly, their TV ads always blame the bride’s bad credit for young guitar playing slacker hubby having to work at a pirate themed fast food job. What a clueless company marketing department to insult the female half of their target audience with their advertising budget! Have they written off women because women shop and are too smart to pay for something that is supposed to be free? Free credit reporting my keister! This is another confirmation that the Federal Communications Commission is dead at the wheel with respect to consumer protections. Companies can get away with confusing people, screaming “free, free, free,” and then charging people for something that they have a legal right to get for free, if they just knew the correct web address.}

Identity Theft Events Provide Opportunities to Lock Down Reporting about Your Credit

While identity theft is a large and growing problem and can be very costly and inconvenient to you, it is just a business cost and headache to financial and retail firms, who also have benefited greatly from the proliferation of easy credit.

One way to protect yourself is to put restrictions on your credit records with the three major credit reporting agencies, Equifax, Experian, and TransUnion. These credit reporting companies have made profitable businesses on both sides. They charge fees to business firms who may not always treat your financial information carefully, and they charge you fees when you want to restrict access to your financial information in their data bases.

For some, these credit information access restriction fees go away when you become an identity theft victim. Whether or not you lose money, if you become a victim of identity theft, this may actually be an opportunity for some of you. In some states, like California, identity theft victims can get long-term locks put on their accounts without having to pay fees to the three credit bureaus.

California Residents Can Get a Free Fraud Alert for Seven Years Following Even a Minor Fraud Event

If you live in California and have become a victim of identity theft, you have rights under California law as an identity theft victim to have your credit files frozen for seven years without paying fees to the credit reporting agencies for such a long-term “fraud alert.” For example, if your credit card shows suspicious charges that you did not make and even if your credit card company takes them off your statement, you still can make an identity theft report to your local police and get a police report. With this police report and by writing to the appropriate addresses and following the procedures, the three credit reporting agencies are obligated legally to put long-term fraud alerts on your credit reports.

The downside of locking your credit report is that you cannot yourself apply and be approved immediately for instant credit. The good news is that nobody else can do the same for seven years, as well. (Note that if you do need to apply for a credit card or refinance a mortgage, you still can do so, but the credit lock on your account just creates a delay. You have to proactively contact the credit bureaus to inform them of the validity your efforts to apply for more credit.)

Lock Up Your Credit at the Credit Reporting Agencies

The upside to locking your credit report is that new attempts to establish credit in your name are blocked without your permission. Not only does that mean that criminals cannot open new credit cards in your name, it means that you have greater protection from other kinds of credit related crimes. For example, the credit crisis has spawned a crime wave of mortgage and real estate line of credit frauds.

Criminals have opened credit lines in home owners names and then have quickly drained the credit lines of their funds. In addition, homes have been sold without the home owners knowledge and sometimes the knowledge even of the “buyer” who also had his or her identity stolen and was an unwitting participant in the transaction.

Obviously, it is better to prevent costly situations like these than clean them up. In addition, pay close attention to any document sent to you by your county registrar. Because of increasing real estate fraud some county registrars, including Los Angeles County, now send notices to the address of record whenever any deed or other records change is filed with them.

<<<<< Go back to the previous part: Protect Your Financial Security

Retirement planning calculator software is highly recommended, when you want to develop a superior family financial strategy

This free “steps to financial freedom” site publishes articles regarding how to establish a do-it-yourself personal finance plan

The personal finance plan essays on this free website supply important thoughts about financial planning strategy topics that you may wish to consider. Our publications can help you in your efforts to establish a high quality, full life personal financial planning strategy. In addition, to produce a fully comprehensive long-term money management strategy depends upon you using superior financial planning software with the top investment planning software and the leading financial planning tools.

This free financial freedom online website also enables you to find the best ALL-IN-ONE financial calculators tool set, which includes the top retirement planning calculators program, high quality life time personal budget software, and the best investing calculator for your self-directed lifetime financial planning.

Tax-Advantaged Retirement Savings Plans

You may have the opportunity to make investments into both individual retirement (IRA) accounts and into employer or self-employed tax-advantaged retirement plans, such as a 401k. In general, if your retirement saving planning allows sufficient annual retirement savings from your earnings, most retirement investment advisers would recommend that you make the full contributions each year into these various plans through out your employment up to when your retire.

Even when you find that you cannot deduct from your income taxes your annual contributions to retirement plans, very often it still makes long-term retirement financial planning sense to make those IRA and 401k contributions, since future appreciation of these assets would be sheltered from ongoing taxation.

Traditional Tax-Advantaged IRA Contributions Versus Roth Retirement Account Investments

The article that follows provides information that will allow you to understand better the trade-offs between “traditional” and “Roth” tax-advantaged retirement accounts. Understanding the trade-offs between traditional IRA and 401k retirement contributions versus Roth 401k retirement plan contributions and Roth IRA contributions requires automated analysis of all the factors that impact this decision. Back-of-the-envelope calculations can easily be simplistic, incorrect, and deceptive. This decision can only properly be made with the assistance of a comprehensive retirement planning tool. If you do not have access to retirement planning software that can do this analysis for you, you really should get such a retirement planning software tool. The dollar amounts involved can be very large over a lifetime. Following uninformed instincts can lead to a highly sub-optimal retirement savings plan and you could accumulated many thousands of dollars less than you might save with a more optimal tax-advantaged retirement investing strategy.

For the majority of Americans, such retirement planning tools develop projections indicating that it would be more advantageous to make contributions to traditional tax-advantaged retirement accounts rather that Roth tax-advantaged retirement accounts. This tends to be true, whenever those saving for retirement can take advantage of the current tax deductibility features of traditional tax-advantaged 401k and IRA account investments.

However, when retirement savers cannot take advantage of current deductibility to reduce current taxable income and their income still allows some level of retirement plan contributions, then Roth contributions are preferred, if the tax rules allow such Roth retirement plan contributions. While the majority of retirement savers would prefer traditional retirement plan contributions to reduce current taxable income, whenever possible, you should monitor the situation each year to understand the rules in effect in a particular tax year. Unfortunately, the tax-advantaged retirement plan account rules are quite complex and some rules have been shifting from year to year.

The best way to understand this topic yourself is to download from the IRS website Publications 560 and 590. Grab some coffee and dedicate a few hours to the task of learning about retirement plan taxation. This could be a very valuable expenditure of your time, particularly if you want to answer the question: “how much do I need to retire?” and you recognize that whether your retirement savings account assets are “pre-tax” or “after-tax” can make a huge difference in determining how much money do I need to retire?!. Of course, a knowledgeable certified public accountant could also be helpful, if you would rather pay someone else to help you learn the rules.

The retirement account article that follows provides information that will allow you to understand better the trade-offs between “traditional” and “Roth” tax-advantaged retirement accounts. A subsequent article discusses the estate planning and the inheritance advantages of Roth retirement savings accounts, which can be very substantial, if your assets are likely out-live you.