It's High Time for Lifetime Savings Accounts

Written by Terry Mitchell


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My version ofrepparttar Lifetime Savings Account would be just like a Roth IRA in many ways, includingrepparttar 111891 fact that withdrawals would be exempt from federal tax except (1) there would be no income eligibility limit, (2) withdrawals could be made at a time and at any age, and (3)repparttar 111892 annual contribution limit would be higher. Duringrepparttar 111893 first year it was available, I would allow a “catch-up” contribution of up to $50,000 per individual and $100,000 per married couple. This would be an attempt to offsetrepparttar 111894 fact that we should have had this option several years ago. This money could be shifted from a person’s taxable savings, IRA, Roth IRA, 401(k), or any combination of those vehicles. Beginning in year two,repparttar 111895 maximum contribution would be set at $10,000 ($20,000 per married couple) and would be increased a little each subsequent year, based onrepparttar 111896 inflation rate. A Lifetime Savings Account would encourage more people to save money, even if just forrepparttar 111897 short term. More people could afford a bigger down payment on homes and automobiles. More people would likely begin saving for retirement and/or their children’s education using this kind of account because of its lack of restrictions. Overall, it would be better for our economy. Write or call your representative and senators and ask them to pass legislation to create Lifetime Savings Accounts. For more information about Lifetime Savings Accounts, seerepparttar 111898 following link: http://www.lifetimesavingsaccount.com.

Terry Mitchell is a software engineer, freelance writer, and trivia buff from Hopewell, VA. He also serves as a political columnist for American Daily and operates his own website - http://www.commenterry.com - on which he posts commentaries on various subjects such as politics, technology, religion, health and well-being, personal finance, and sports. His commentaries offer a unique point of view that is not often found in mainstream media.




Is Business Credit Scoring a Killer Application or Application Killer?

Written by George A. Parker


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7. Business-related credit factors scored include:repparttar company’s time in business; company size; industry; form of company organization; history of paying bills on time; business net worth; average bank balances; ratio of debt service to cash flow; and recent judgments, bankruptcies or agency collections.

8. Many large lenders, such as Well Fargo Bank and Bank of America, have developed their own predictive business credit models. Several have even fine-tunedrepparttar 111890 Fair Isaac model to better meet their needs and preferences.

9. If your firm is rejected for credit based on a scoring model, askrepparttar 111891 lender to explainrepparttar 111892 rejection. Some lenders will reconsider if requested, but may require additional credit information.

10. Some lenders have special pools for higher risk credits. They usually charge higher rates and offer terms that are less advantageous than for high-scoring transactions. Others may ask for credit enhancements to grant approval, such as additional collateral or outside guarantees.

11. Here are ten ways to improve business credit scores:

* Improverepparttar 111893 credit habits and profiles ofrepparttar 111894 key principals or business owners

* Pay all back taxes

* Settle outstanding liens and judgments

* Pay bills on time and be consistent with payments

* Eliminate supplier disputes by settling with any suppliers or former employees

* Sell or factor accounts receivable to improve cash flow

* Establish your firm’s credit record by registering withrepparttar 111895 Secretary of State where your business is incorporated

* Try to improve individual and company credit for at least twelve months

* Buy from vendors who report activity torepparttar 111896 major credit bureaus

* Set up automatic account debiting with creditors to help eliminaterepparttar 111897 possibility of paying slow

Credit scoring is not designed to predict individual loan performance with certainty. Rather, these systems do a great job of quantifying risks for groups of borrowers with similar characteristics. A disadvantage of credit scoring systems is that they are easy to misapply. Ifrepparttar 111898 lender’s customers don’t share characteristics and behavior patterns withrepparttar 111899 model’s underlying base group of credits, then reminiscent of HAL, many transactions with great potential may be eliminated.

If your firm doesn’t score well under a scoring model used by a major lender, you may face an uphill battle for credit approval. Some smaller credit providers try to differentiate themselves by not using scoring models. Instead, they actually listen to borrowers, sort out unusual circumstances and use old-fashion human judgment to make credit decisions. One of these lenders might make sense for your firm.

George Parker is a Director and Executive Vice President of Leasing Technologies International, Inc. (“LTI”). Headquartered in Wilton, CT, LTI is a leasing firm specializing nationally in equipment financing programs for emerging growth and later-stage, venture capital backed companies. More information about LTI is available at: www.ltileasing.com.


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