Dear Friends and FinishRich Community Members,
It's tax season and for those who may be strapped for cash, getting an instant refund may be very tempting. But taking a closer look at what that quick cash is actually costing you, will hopefully make you reconsider.
Refund Anticipation Loans (RALs) are bank loans secured by your expected tax refund and offered through many tax preparation firms. They can sound like a good deal and that's probably why close to 9 million Americans signed up for them last year. But it's the banks and the tax-preparation firms that benefit, not us. They rake in more than $1 billion a year providing these virtually riskless loans. How? By charging exorbitant service fees and finance charges that can combine to produce APRs as high as 1,200% or more. That's predatory lending, folks and as smart consumers we know better than to fall for these scams.
Let's look at an example of a $500 Refund Anticipation Loan through H&R Block. In addition to charging you 36% annual interest on your RAL, they also tack on a $29.95 "refund account fee" plus another $20 if you want to be paid by check. Want that refund the very same day? That will cost you another $24.95. Figuring a maximum of $75 in fees plus a finance charge of $15 or so, you're going to end up paying almost $90 to borrow $500 for about a month, which is how long it usually takes the IRS to mail you a refund. Now ask yourself, what could you do with that $90 instead? Is it worth it?
Instead, file your taxes electronically and have your refund deposited directly into your bank account and you'll have your money in about two short weeks.
Are you eligible for Free File? The Free File program provides free federal income tax preparation and electronic filing for eligible taxpayers through a partnership between the IRS and the Free File Alliance, a group of private sector tax software companies. You're eligible if your adjusted gross income is $56,000 or less, whether you are a joint or single filer. Visit IRS.gov for more details.
In my new book, Fight for Your Money Refund Anticipation Loans are just one of the many topics I cover. Here's what I need you to understand as a smart consumer and ultimately why I wrote this book:
When you pay just 10% or 20% too much for the products and services you use every day, you will have to work 10 to 20 extra years before you can retire. Or, to put it another way, if you let yourself be overcharged by 10% to 20% for the things you buy, you are in effect spending one or two months a year working without pay for the companies that rip you off. And trust me?until you fight for your money, you will overpay for almost everything you buy.
I'm really excited about this book and I hope you are too. It's being released on March 3rd and like we've done for previous new releases, we'll be holding a special book promotion for our FinishRich community. When you pre-order Fight for Your Money during our February 23rd promotion, you'll get access to a whole list of FinishRich bonus items--downloads, special reports, video and a lot more. So stay tuned for more details on how you can participate. And if you have friends or family members who you think would benefit by reading Fight for Your Money, send them this link: http://www.finishrich.com/inc/register.php to register for our newsletter so they can take part in this special promotion too.
Back by popular demand, I'll be hosting another live teleconference on Tuesday, February 24th at 8:00 pm eastern. So mark your calendar! Call in details will be provided on our web site as we get closer to the event. On this call, I'll be focusing on the most relevant and timely ways that you can start fighting for your money today. So, I want to know what's on your mind and what questions you have related to saving and spending in today's economy. Submit your questions to me at success@finishrich.com and I'll do my best to answer it live during our call. Hope to "see" you there.
This Wednesday, February 4th I'll be on NBC's Today Show for their Money 911 segment so be sure to tune in. If you've missed any of my recent tv appearances on the CBS Early Show or ABCs Live with Regis and Kelly, click here to watch the video.
Are you worried about your finances given the current market? Do you feel like you just don?t know where to begin when it comes to devising a plan to get ahead and stay ahead? Are you ready to make 2009 your year for financial success? The FinishRich Coaching Program is designed so that you are able to get personalized mentoring with specific solutions for your individual needs.
Given that we are in a time of economic uncertainty, it is a great feeling to know that your coach will hold you accountable for staying on track as you're guided through the program. You will get all the information, motivation and encouragement that you'll need for success.
The great part of this program is that it doesn't just end with the personalized mentoring. You also have access to the FinishRich Coaching Success Center. Here you'll find amazing resources, videos, weekly group coaching calls, and even more- - including a monthly, live coaching call with me.
Click here to see if you qualify for my FinishRich coaching program. Regardless of your financial goals, we have a coaching program that's right for you.
The Automatic Money Manager is one of the easiest ways to calculate your Latte Factor? and put this money toward building your security basket, DOLP?ing your credit card debt, saving for a home, and increasing your retirement nest egg. It is your financial dashboard and puts your financial picture right at your fingertips. And because it's paperless, it's the perfect green solution to your finances!
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Pay yourself first
Track all of your purchases
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Find your Latte Factor
Plan for retirement
And so much more!
Don't wait any longer to take control of your money. There's no better time than the start of the new year to get organized with your finances. Try the Automatic Money Manager today!
Until next time...
Live and Finish Rich,
David Bach and The FinishRich Team
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The FinishRich Newsletter is written and produced by David Bach and FinishRich Media. If you have any questions or comments, you can contact us via our online form by clicking here.
This newsletter is purely informative and does not represent an investment or tax recommendation of any kind. Please consult your financial or tax advisor before making any investment decisions.
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