Facebook entered the world and soon became a world others sought to enter. Despite millions of people being skilled FB users, not everyone fully grasps the concept of the company going public, as it did on May 18 at 9:30AM. FOX Business Network’s Cheryl Casone breaks down the good, the bad and the ugly about the FB IPO, and some tips on investing for beginners.

The Good: The average investor can participate. There are mutual funds that focus on Internet and media stocks that you can buy that will give you exposure to the shares. Fidelity is one example. Ask for a breakdown of what companies they own. Zynga, LinkedIn and Groupon have been other favorites. If you have an account with E*Trade you may still have a chance to buy some shares tomorrow. It will depend on how many investors also want the stock.

The Bad: There is so much hype that many financial analysts are worried the stock is going to sell for more than Facebook is worth overall. For example, Facebook makes money from advertising. GM doesn’t think ads on Facebook are worth buying. Ford does. Who is right?

The Ugly: If you don’t already have a piece of this monster IPO, it may not be worth it for you. There are plenty of technology companies that make phones, televisions, and computers. Is Facebook so important you need to have it on day one? Or two?

Investing, in general, is full of risk, reward and responsibility. Here are some tips for beginners looking to invest in the market:

-The best way to invest in the stock market is to buy mutual funds, index funds, or exchange traded funds. Mutual funds have a paid manager but you do pay for that person and their stock picking skills. If you want to be frugal an index fund is just a basket of 20 stocks, for example, in a particular sector weighted from big to small in their field (energy, technology, or retail for example).

Exchange traded funds (ETFs) are several stocks grouped together but you buy it under one “ticker” just like you would buy one share of McDonald’s.

-If you have never purchased a stock on your own go to the websites of ETrade, Charles Schwab, or Ameritrade. Follow the instructions to set up your account. You can either mail in a check for them to deposit into your account or go to your bank and set up a direct transfer. You will have a username and password you will need to keep on hand in a safe place. Make sure it is easy to remember.

-There are pages and pages of stocks. Simply look through the site and see what sections interest you whether its energy, pharmaceutical, retail, or insurance companies. These sites will give you details about each company and the choice is yours which ones you wish to buy. You decide how many shares you want judging by the price per share and click the “buy” or “purchase” button. It is the same as buying jeans on the internet.

-My advice: buy companies you know. It may surprise you that the brands or entities you find exciting often have a very similar impact on others.

If you’re the owner of a growing business, then you’ve probably considered credit card processing solutions to manage your payments.  Before you take the plunge, consider the following tips before signing up with a credit card processing company.

Research, Research, Research!

When doing research on any credit card processing company, you’ll come across several options for you to chose from.  Don’t go with the first company that pops up on the first page of your search results.  Google them.  Bing them.  Check the BBB ratings in their state and check sites like Ripoffreport.com to check for complaints.  A good way to check for sketchy behavior is to add the term “scam” to your search term:  “Company name + scam” and this usually brings up results that tell you whether the company is involved in questionable activities.

Full Price Is For Suckers

Once you’ve created a short list after completing your research, compare the fees for each company.  This goes for anything you pay for in life.  You always want to make sure that you’re getting the best deal possible.  For this reason, you’ve got to keep in mind that everything is negotiable.

Everything Is Negotiable

Trust me, there are no fees set in stone.  Well, except the PCI and statement fees.  Still, never pay full price.  Full price is for suckers.  Talk them down on each fee listed in the contract because many business years never ask and as such they don’t receive the discounts they deserve.

Have you researched credit card companies?  What criteria did you use to select your processor?

Most people have a period of time in their lives that their credit is not perfect. Those with bad credit know that it is very difficult to live without access to credit. Fortunately, it is possible to get a loan with bad credit. Of course, interest rates are higher for those with bad credit because they pose more of a risk to the lender. The more responsibly they handle credit, though, the higher their credit scores will be. Following these tips will help someone with bad credit get a loan and begin to establish a better credit rating.

1. Consider a payday loan.
Payday loans are short-term loans that are made strictly based on your ability to repay the loan. Because credit reports are generally not checked and positive accounts are not reported to the credit bureau, applying for a payday loan does not have any affect on your credit score unless you fail to repay the loan. Payday loans are useful when quick cash is needed for unexpected situations. The requirements include a steady source of income and a checking account.

2. Work with a broker.
If you are trying to get a mortgage or home improvement loan with bad credit, a broker may be able to match you with a lender that does bad credit loans. Mortgage brokers have relationships with a variety of mortgage lenders and banks and are able to successfully help borrowers with good and bad credit scores get loans that meet their needs. Because brokers have access to the credit terms of many lenders they are able to provide guidance to borrowers who have bad credit.

3. Get a cosigner.
A cosigner is a family member, friend or other acquaintance who has good credit. The cosigner agrees to take responsibility for the loan if you do not make the payments. Because you are listed as a borrower on the loan with the cosigner, timely payments will improve your credit score. A better credit score will make it easier for you to obtain credit without a cosigner.

4. Offer collateral.
Collateral is property that you already own that is used to secure a new loan. Homes are the most common form of collateral. Consumers sometimes use their personal automobile as collateral for personal loans. New companies frequently offer equipment as collateral for business loans. Collateral gives the lender confidence that the loan will be repaid.

5. Apply for a bad credit loan.
There are lenders who only work with people with bad credit. Companies such as Badcreditloans.com match people with bad credit who need loans with lenders who are willing to ignore past credit problems. These lenders do not request credit reports but they may report positive accounts to the credit bureaus.

6. Increase your credit score.
Higher credit scores make qualifying for loans easier. Credit scores are affected by collection accounts, available credit and debt to credit ratio. If you have several bills that are overdue, paying them off will increase your available credit and increase your score. Paying all outstanding debts may increase your credit score enough for you to qualify for an unsecured loan.

What tips do you have for someone needing to rebuild their credit?  Have you overcome bad credit?  Share your strategies in the comment area!

On Monday, May 7^th, FOX Business Network’s Liz Claman will interview legendary billionaire and Berkshire Hathaway CEO Warren Buffett, Berkshire Hathaway Vice Chairman Charles Munger and Microsoft Chairman Bill Gates in an exclusive sit-down (9:30 AM/ET) following the Berkshire Hathaway shareholder meeting this weekend. Claman is no stranger to Buffett, having interviewed him countless times throughout the course of her career. Below, she shares some insight on what she’s learned from spending time with Buffett over the years.

How can women can become educated investors?

Educating women investors is really no different from educating any motivated investor. You have to read, study, and become knowledgeable.  One of the best ways to do that is to study how smart, successful investors, like Warren Buffett. Buffett thinks in terms of buying great companies that have a ‘moat’ of competitiveness around them.  Are they the best or at least top 2 in what they do? Are they run by passionate managers? These are the questions he asks.

Does Warren Buffett invest in women specifically?

Warren Buffett doesn’t care who’s running a great company. It could be a man, woman or alien from Mars but if it’s run well and he sees major opportunity for growth, he’ll buy it.   You could argue that simply by buying businesses run by women, such as Pampered Chef or Business Wire (run by Cathy Baron Tamraz), he’s encouraging many women entrepreneurs to dream.  They should study those companies, see what the CEOs did right and did well, and then copy it with their own twist and personality.  And Buffett always stresses that if you follow your passion, success will follow you.

Can you share a lesson you’ve learned from spending time with Warren Buffett?

Learn how to communicate. This helps us not only in saving, but in all aspects of our lives!  It shocks a lot of people to know that Buffett was incredibly shy and lacked all confidence even through his twenties.  He finally forced himself to take the Dale Carnegie course, “How to Win Friends and Influence People” because he realized the only way he’d be truly successful in life— even with his natural ability to allocate financial assets— was if he could communicate to potential investors.  It took him quite some time to get up the courage to finally enroll in the course but it’s the only document he has framed and up on the wall in his inner office. Not his diplomas, not any awards, just the “Warren Buffett successfully completed Dale Carnegie’s course.”  There’s something very poignant to me about that.

A summer vacation in Europe is the trip of a lifetime for many people, but one that they fear is out of reach due to the cost. Europe isn’t always the cheapest place to travel and with everyone’s budget belts being tightened summer holidays are often one of the first things to go. This doesn’t have to be the case though! If you are a savvy traveler and put some effort in you can save on everything from accommodation and food, to entrance fees and transportation costs. Use any, or all, of these money saving tips when planning your next vacation in Europe and you’re sure to have a memorable holiday at half the price!

• The first trick is to choose your dates carefully. Traveling outside of peak season will save you money on almost every aspect of your trip. Peak season in Europe is generally from May-August. As well as saving money, traveling off season also means less crowds and friendlier locals – a win all around.

• When booking your flights be flexible with dates. Flying in the middle of the week can be much cheaper than the weekend – simple supply and demand. Many flight booking websites, such as Travelocity.com have a search option that allows you to indicate that you are flexible with your dates. This allows them to display flight prices 3 days on either side of your selected dates, allowing you to see how much they fluctuate within only a few hours.

• Accommodation is likely to be the biggest expense after your flights. Week long and weekend holiday are a popular accommodation option in Europe and can be much cheaper than the traditional hotel. Visit www.sykescottages.co.uk to view a great selection of holiday cottages throughout the UK and Ireland.

• Eating out at restaurants 3 meals a day for a week or more can get expensive, tiresome, and isn’t great for the waistline. Staying in self-catering accommodation allows you to cook your own meals and pack up snacks to bring along on days out – a big money saver and a life saver if you are traveling with children.

• Watch out for unexpected extra charges! If you grab a coffee or sandwich at a street side cafe they may charge you extra to eat on the premises. Likewise, if they bring bread or bottled water to your table at a restaurant check to make sure you aren’t being charged extra for the privilege. There’s nothing worse than being charged for something you didn’t want!

• Decide where you would like to visit in advance and check their website to see if they offer an advanced ticket deal. Not only will this save you money but also often lets you skip the line-up.

• Last but not least, use what God gave you and walk, walk, walk! There is nothing cheaper than free and that’s what your legs are! If you must get further than your legs can carry you, consider using local public transportation like subways and buses. Taxis are always going to be the most expensive option and anything that is targeted towards tourists is likely to be a rip-off. Before you leave in a taxi double check about the fare so you aren’t shocked at the end.

All set?  If you fear that money will be an issue, do your research.  The money saved will go a long way in buying you a sweet souvenir!

For a small business owner it can be tough to keep your business and personal finances separate because, well, you are your business!  You live it and breathe it; and chances are, you have a passion for your business that most of your W-2 earning friends don’t have for their own jobs.  Keeping your business expenses separate is particularly challenging when your business is new.  It may even feel a little silly when you’re not even sure if this thing will even take off.   However, the earlier you make this a priority, the easier you make things for yourself down the road.

Why it’s Important

• Tax time will be a huge pain if you have to painstakingly go through your personal account to hunt down business transactions.

• Also regarding taxes having your business finances separate allows you to take advantage of all possible deduction opportunities.

• Protect yourself from any potential legal situations – a LLC, S-Corp, or C-Corp structure is designed to protect you, however, if you don’t keep finances separate a lawyer could argue your business is not truly a corporation.

• You need to be able to show proof of your business’ performance for the purpose of getting a business loan or investment capital.  Further, you’ll want this information yourself for ongoing business planning.

• If you wish to get any kind of personal loan, you’ll need to be able to show documented income coming to you from your business.

What You Need to Do

• Most importantly, it is imperative to have a separate business bank account.  If your business requires a credit facility, open a business credit card.  Even if your cash flow is sufficient to cover all business expenses, a business credit card is a good idea from a convenience and tracking standpoint.  Any payment made to your business should be in the business name and deposited into your business checking account.  Any business expenses should be paid from either the business checking account or with the business credit card.

• Maintain a separate filing system for business items such as receipts and invoices.  Whether you maintain a meticulously organized electronic filing system or go the “shoebox” route, the point is to have a separate shoebox from the one with your personal stuff.

• Set up your bookkeeping method.  Many small business owners find software such as Quickbooks to be comprehensive and user-friendly enough to do it themselves.  However, if you need (and can afford) outside help, consider hiring an accountant or look into Virtual Assistant options.

• Decide how to pay yourself.  Either write yourself payroll checks from the business checking account or transfer funds electronically – however, with the latter option, be sure this is tracked accurately in your accounting system.   In the early stages of your business, you may not be able to pay yourself on a regular payment schedule, however, make it a goal to do so as soon as you can.  It will help you to get personal loans when you can show a regular, steady income flow.

The time to start being diligent about compartmentalizing business finances is Day 1.  Your future successful-business-owner-self will thank you.  As the old saying goes, “an ounce of prevention is worth a pound of cure!”

Credit cards can be both the angel and the devil on your shoulder; simultaneously a force of good and evil!  Further, what’s the difference between canceling a card and just cutting it up?   Depending on who you talk to, people will try to convince of all of the above.  Should you cut them up, or cancel them?   Sounds confusing, but the truth is that there are pros and cons to each option.

Canceling Your Card

Pros:

• Probably the most obvious one here is that it absolutely prohibits you from incurring further credit card debt on that card, no way around it.  If you are in trouble with credit card debt and late payments, your credit score is likely already suffering and it’s probably a good idea to cancel your cards after you pay them off to keep you from digging yourself any deeper.
• Some people simply feel better about streamlining the mess of cards they’ve acquired over the years, yours truly included, particularly those store cards with the ridiculously high rates that totally negate the 15% off you received to open the card.  The average amount of cards carried by Americans is close to 10, at that level, a little spring cleaning may be in order!
• Less cards means less bills to pay and keep track of (if you’re the reconciling type.)  Simplification goes a long way in making your life easier.

 IMPORTANT:  Before you cancel a card, verify with the creditor that it will be reported to the credit agencies as having been closed “at the customer’s request”!

Cons:

• When you cancel a credit card, you eliminate that card’s time since origination from your overall credit history total (15% of your credit score.)   Further, while your length of history for that card disappears, any late payment history does not.  Payment history (35% of your score) for that card will continue to be figured into your score even though the account has closed.  Tip:  Use your judgment with this one.  For example, if you’re keeping 3 major cards that have been open forever and you just want to close two small store cards that you’ve only had a year, the impact will be minimal. 
• Canceling a card has an additional negative impact on your score:  reducing your total credit capacity, which is the denominator in the debt utilization calculation (30% of your score.)  For example, let’s say you have two credit cards:  Card A has a balance of $3,000 on a limit of $5,000 and Card B has $0 balance on a limit of $5,000.  Your overall utilization percentage is 30% with both cards ($3k/$10k), however, if you close Card B your utilization will be 60% ($3k/$5k.)  Tip:  If you wish to close a card, see if you can get your limit on another card increased so your overall utilization is not affected.

 Cutting Up Your Card

Pros:

• Physically destroying your card effectively reduces the temptation to use the card and increase your debt level, while still maintaining your history and credit capacity.  Your account will remain open; you just have put a roadblock between yourself and your usage of the account.
• If this tactic works for you, not only are you abating your debt level but you’re also exercising spending discipline overall, since quite often the only reason we choose to spend is that we can delay actually paying for it!

Cons:

• If you really have a problem with debt and/or spending, simply cutting up your card doesn’t entirely eliminate your ability to incur additional credit card debt.  The account is still open and you can get around that minor obstacle if you really want to, especially of the card information is stored online on sites like Amazon.com.
• You’re at risk for identity theft if you don’t dispose of your card properly.  If your shredder is capable of shredding a credit card, this is best.  If not, cut horizontal through your number, in between each group of four numbers, and separate the security code from the embossed number on the back of the card.  It’s also a good idea to throw away the pieces in separate trash bags.

Whether credit cards do good or evil depends on YOU:  your overall debt load, your spending habits, your debt repayment history, etc.  It’s a highly personal issue and one that requires common sense and judgment, specific to your unique situation.

It’s Saturday evening and I’m catching up with one of my college friends, updating each other on what’s new in our lives. Of course, the subject of pregnancy comes up and I know that since we are in our 30s with no kids, I brought it up.  Hey, it was inevitable.  She is one of my oldest and dearest friends and we think a lot alike.  Very career driven while trying to plan our lives in order to control the outcome.  We hate surprises.   Since she is starting a new job, tone of her concerns is about having a child right now.  New Job + Woman /= Good impression- for some women.

Timing

When is the right time?  After we’re established?  When we’re mid-career?  How long do we and should we take off once we have the baby?  We chatted about this and I just kept thinking that men don’t have to think about this crap!  They don’t have to think about timing when having a baby because they aren’t the default providers for childcare when a new baby enters the picture.

Career Impact

I don’t know about the rest of you, but I think about these things, A LOT.  Though, less than I used to because I’ve let go of the need to control every major life event.  If we got pregnant right now, I’d be fine with it.  I am fully licensed in my field and what you’d call mid-career management.  But I keep wondering about the on-ramp after we have kids.  Will I want to return to work?  Am I going to have trouble finding a position commensurate with my experience if I take longer than 2 months off?  I still think about these things.

Will having a baby now affect my ability to get promoted and move forward in my career?  Would my employer fire me once they find out I am expecting?  Or will I be pushed out if I start to have complications that require time off?

Fertility Concerns + Talking To Pregnant Friends

Given that we have some fertility concerns, finding health insurance or paying for it out of pocket is also an issue for me.  Either way we’ll do it but I would really rather find health insurance that will cover the treatments since complications can mean more than 1 round at $15k each.  That said, as we go through more testing (that is covered by health insurance), it’s become increasingly difficult to talk to newly pregnant friends about their impending bundle of joy.  While I am truly happy for them, seeing them move on to this new stage in life admittedly makes me sad.  Sulky tear-filled eyes after we talk – sad.  Those of you in the infertility community may understand where I am coming from with this.

This is pretty new for me and while I try not to think about it, I do realize that it is hard to engage pregnant friends.  Once they have the baby, I’m there, but while pregnant? Not so much.  Call me selfish, and I think it’s obvious why I may feel like this but it is what it is.  It’s something that I have to work on as we move towards parenthood.  Now I’m not curled up in the fetal position crying in the dark, but ya know, it’s a difficult process.

I’ve asked my readers in the past, Journey To Motherhood: How Did You Know You Were Ready To Become A Mother?  That was more-so related to knowing within yourself as a woman, that you’re ready.  I’m there now.  I am at the point where I crave wanting to be a mom.  So that’s not my issue.   But what I do want to know:  how did you know within the context of the right timing and your career?  Did you have any of the same fears or concerns?

Did you jump in and decide to worry about how you’d feel and orchestrate your return to the workplace later?  Or was it carefully planned?  Right now, I am somewhere in the middle.  Sick of planning but addicted to a planned and orchestrated outcome.  *sigh*  The older I get, the more I realize that there is never really is a “right time”.

Uh oh.  April 15^th has come and gone and you were unable to complete your tax return by everyone’s favorite deadline.  What happens now?  If the IRS owes you a refund, no biggie; there are no penalties or fees in this case (apparently they don’t wish to discourage you from delaying their payment to you!)  However, if you owe the IRS as a result of your tax return, the repercussions for being late are swift and severe.

Failure to File Penalty

This is the one of the harshest penalties the IRS has at their disposal.  The penalty amounts to 5% of your original tax bill every month until you file and begins accruing the day after the tax due date.  There is, however, a maximum penalty of 25% which is what you’re accrued after the fifth month you’re late.  Even if your tax bill is small, they’ll still get you pretty good:  if you’re more than 60 days late, there is a minimum penalty of $135 or 100% of your bill, whichever is smaller.

• High Tax Bill Example:  Say you owe the IRS $10,000.  At the 60 day mark you’ve accumulated a penalty of 10%, or $1,000.  The minimum doesn’t apply because you’re already way beyond that.  Your penalty will max out at $2,500 (25%) at the five month mark.
• Low Tax Bill Example:  Say you only owe $100.  After being 60 days late, you’ll incur the minimum penalty amounting to $100, so you’ve already doubled what you owe.

Failure to Pay Penalty

The failure to pay penalty is in addition to the failure to file penalty.  However, this penalty is even more common because it can be incurred even if you’ve filed on time, but just underpaid your bill.  The penalty is calculated as 0.5% of the unpaid portion of your original tax bill and doesn’t max out until it reaches 25%.  If you’re upfront with the IRS that you cannot pay your bill, you can enter into an installment plan and reduce your failure to pay penalty by half.  However, if the IRS issues you an “intent to levy”, meaning they have cause to believe you are intentionally not cooperating, the penalty to pay can then be doubled to 1%.

TIP:  In the future, if you’re ever putting off filing your taxes because you can’t afford what you know you’ll owe, you should still go ahead and file and then explore your options.  The failure to file penalty is much higher than the failure to pay penalty, and you can cut the latter in half if you set up a payment plan. 

Interest Charges

To top it off, the IRS charges interest on what you owe them.  In contrast to the two penalties above which are calculated based on your original tax bill, interest is charged on the TOTAL amount you owe at any given point, including penalties and any prior interest charges.  The interest rate used is the federal short-term rate plus 3%, so the rate will change every three months.

Possible Waivers

Of course there are always valid and justifiable circumstances that may have prevented one from completing their taxes on time such as military service, illness, or incarceration.  To request a penalty waiver due to reasonable cause, the taxpayer must fill out and submit IRS Form 843.

What if You Still Don’t Pay?

If you choose to disregard your tax obligation, the penalties are only the beginning.  They will fill out a substitute return on your behalf based on alternate sources, so you won’t be getting exemptions and your liability will very likely be overstated.  Based on your substitute return, the IRS will then go after your money themselves, by levying your wages, bank accounts, or even your home.

The moral of the story:  The IRS does not like to be ignored.  If you missed the deadline, the most important thing is to be honest and forthright, and get it resolved as quickly as possible.  Putting it off will only make the problem so much worse!