11-05-2007 | Source: Defined Contribution & Savings Plan Alert

Sen. Norm Coleman (R-Minn.) has submitted legislation allowing 401(k) participants who are 60 days late in meeting mortgage payments to withdraw up to $100,000 penalty-free, providing the money is restored to the retirement account by 2009. The bill is co-sponsored by Sen. Mel Martinez (R-Fla.), a former secretary of Housing and Urban Development.

Minnesota, Coleman noted in introducing the bill, is fourth among the states in terms of sub-prime foreclosure. “I have been troubled by the increase in the number of foreclosures to date, and the projections that the worst is yet to come.”

Coleman’s Home Ownership Mortgage Emergency (HOME) Act follows other bills that would let participants draw upon their retirement saving for other uses. Rep. Nicholas Lampson (D-Tex.) would allow tax-free distributions from retirement plans for charitable purposes. Rep. Dave Weldon (R-Fla.) would let military reservists and National Guard members called into duty for extended periods make penalty-free withdrawals from plans.

For those women who are going through divorce, breaking up is hard to do. Dealing with the emotional issues and legal issues, as well as the financial issues, is not easy. Wise women should spend the money if necessary to have advisers protect them through this rough period.

The one thing most people forget about in their dissolution of marriage or death is their IRA. I have heard two stories lately–one on a divorce and one with an estate issue—that make me want to remind those of you facing this dilemma not forget about your retirement plan.

In one instance, I was speaking with an attorney who was reviewing a will for a client in her late 70s. She wanted to leave everything to her only child. In reviewing the will, which was revised only 5 years ago by other counsel, it stated everything would go to her parents. Guess that would have been fine except they had been deceased for over 20 years.

A divorce is worse. As soon as you separate, you should notify your custodian, record keeper or, if you have a company 401(k), your employee benefits department of the change in beneficiary on your plan. Most people forget about their IRA, and in a recent instance, a divorced spouse ended up leaving her retirement funds to their ex instead of her current spouse. Beneficiary changes are not difficult to do! Don’t forget that IRA!

TransUnion, one of the big three credit reporting agencies, says it will allow individuals in all 50 states to freeze their credit histories. The service, which went into effect two weeks ago, is a big victory for anyone who wants to be more proactive about preventing identity theft.

The other two credit reporting agencies, Experian and Equifax, have not followed suit. The bureaus disseminate credit histories used by lenders to issue credit cards, mortgages and other loans. I believe there will be a lot of pressure for Experian and Equifax to follow.

A credit freeze bars the bureaus from issuing your credit history—the summary of loans and payments that form the basis of your credit score—to lenders, credit card companies and others. By putting a freeze on your information means ID thieves can’t use stolen Social Security numbers to fraudulently open new accounts.

The rental market in America is changing! Investors who bought property at the top of the market a year ago are forced to rent their investment properties instead of turning them into quick profit. Also, property owners who at one time thought they would sell are now forced to rent out their homes. This has increased the inventory on rentals. This has also spurred many complaints among homeowners in nicer neighborhoods where, at one time, the majority of people who lived in the neighborhood were owner occupants; today, that same neighborhood may be 50-50 rental vs. homeownership.

The result, according to many homeowners, is deterioration in property values as they feel tenants do not take the same care in maintaining the property as an owner would. Complaints such as overgrown lawns, drug deals in parks, trash and noise are growing.

Homeowner associations are getting involved in trying to control these problems. Some developments are limiting the number of rentals in their communities. They have also begun to target lax landlords. City governments have also gotten in the act, sending violation letters to landlords where tenants have parked cars that sit for more than a couple of days, trash violations, etc.

Of course, there are many landlords who do a great job of screening tenants, have talked to neighbors to encourage them to call with any issues regarding the tenant, keep up with maintenance of the property, and know the law as it applies to land lording. It’s the investor who has become a landlord by default who could be hurting the market and the reputation of real estate investors.

What can we do about this? Make sure you screen your tenants properly, stay in touch with them, do drive bys and know the neighbors. Be responsive if there is a problem and finally, if this is all too much for you, find a GOOD property manager who does what this blog says. Make sure you really check that person out and ask for references.

Being a landlord does take responsibility—run it like a business and you will be successful.

I recently attended a women’s leadership conference featuring professionals discussing what makes a successful women’s business.

I am always intrigued by opinions from successful business owners as I believe we truly learn from others. However, after listening to these speakers, I came away with a feeling of being “had”—taken advantage of and treated like none of us knew any better.

See, all of the speakers there were selling something to the audience—their consulting services, their books, tapes, DVDs, web designs, etc. I was not really learning WHAT makes successful business practices. What I did “learn” was if I contract with this consultant or purchase this book, I will have a better business.

I am sure there are great books, tapes, etc. out there that can help me do better, make more money and be a better businesswoman. But what does it take TODAY to lead, get more clients, and develop a referral system that helps you be the best in what you do?

So, here are my 4 hot tips to help you develop your business starting NOW:

1. Be true to your values. I believe others can see who we really are as people. Let’s face it. People enjoy and trust doing business with people they respect and believe in. When you are true to your values, it shows in all you do from marketing to customer service and beyond.

2. Get involved in your local community. Sponsor a walk for a specific cause that is near and dear to you. It makes you look human and caring in the eyes of your community and to those who are looking for your services. Do some PR on your event, get it advertised not only in your local paper but in business journals as well.

3. Send surveys out to your existing client base asking what they think you can do to promote your business and if they would be willing to be referral sources for you. Testimonials can be very valuable. Zoomerang is an inexpensive software program that allows you to do online surveys. Offer to send your client or prospect something free if they complete your survey. Gaining information from existing clients is one of the best ways to develop your business.

4. Consider co-op advertising and joint presentations with another professional who is in alliance with your product or services. I see this kind of strategic partnership lot in real estate presentations that are taught by title companies and real estate brokers. Great way to save dollars and gain more exposure and potential credibility when you align yourself with the right party.

I believe the real key to a successful business is to take calculated risks, and do things outside the box that will help both you and your business blossom. It’s nice to attend seminars and listen to others, but they are not paying your bills, you are. So take advantage of these 4 tips today, track what enhances your practice, and watch your business grow!