Investors are quickly pulling their money out of the market in a move that many experts criticize as poor timing. These experts believe that the stock market has hit its lows and may bottom out in 2009, which means investors should keep their money parked for a turnaround. However, many investors remain concerned about their retirement funds after a year of huge losses. So, what are the alternatives for these investors looking for a good return on their money?

The answer: Banks. Banks are hungry for consumer deposits these days and that’s leading to record yields on savings accounts, certificates of deposit and money market accounts. Despite the fact that the Federal Reserve slashed its lending rates to between 0% and 0.25%, banks are still placing a high value on consumer accounts on their books as they see consumers as more than just a source of funds but also a list of leads for their other products.

The average rate on a one-year CD is 2.61% while rates on money market accounts average 2.06%, according to BankRate.com. There are higher rates, however, for those consumers willing to bank online. Bank of Internet USA offers a money market account that pays 3.26% while OnBank (M&T’s online division) offers 3.15% on its money market accounts. Others like ING Direct also offer rates in excess of 3% on their savings accounts.

Many business owners look at tax rates when considering which state to start their business in, but there are many other considerations that should be taken into account. Government incentives, worker productivity, available technology, and employee wages are just a sampling of the many factors that can be affected by your decision. The top state overall may surprise you… Washington!

Washington consistently places at the top of economic and business lists. The New State Economy Index ranks it second in the United States while the Small Business Survival Index ranks it fifth. The state also leads the nation in value added per production hour and offers very low taxes and doesn’t have its own income or capital gains taxes for persons or corporations!

Combine that with a highly productive manufacturing sector as well as a leading promoter of alternative energies and it’s easy to see how this state ranks among the best places in the United States to start a business!

U.S. citizens that work abroad may not be using any services from the U.S., but they still end up paying in a large amount of tax dollars. However, new tax laws proposed by president-elect Barack Obama may end up saving those foreign workers some cash. So, what are the current tax laws for those working abroad and how might the new tax proposals change what you owe?

Currently, U.S. citizens working abroad may qualify for foreign income exclusion of up to $80,000 if you satisfy two requirements: (1) You must reside in a foreign country for an entire tax year, and (2) your salary must be paid by a company or agency in your country of residence of by a U.S. company operating in that country. Also, only earned income – such as salaries, wages, fringe benefits – qualifies.

The biggest problem with foreign income taxes is the fact that you are usually double taxed. Workers abroad are usually required to pay some form of income tax to the country in which you reside and earn a salary. Meanwhile, you may also end up paying U.S. income tax if you don’t qualify for exclusions. The only exception are those countries that have agreements with the U.S., like Canada.

Obama’s new tax plans reduce the rates owed by workers abroad, but many of the same provisions remain in place. For more information on Obama’s tax plan, see Many Taxpayers Stand to Gain from New Laws on Yahoo! Finance.

The global economic crisis has brought with it many casualties, but one of the least expected ones is debt collectors. Typically, these unscrupulous companies make a good deal of money when consumer debts go bad by using their two favorite tools – phones and threats. However, many debt collectors are starting to realize that consumers really may be in trouble this time around.

Banks may be cutting consumers’ credit lines, raising card fees and pulling back on lending, but they are also trying to give consumers some room to get out from under their debt. After all, it’s hard to convince consumers to pay back a debt when there is no hope at the end of the tunnel. Unfortunately, that also makes it easier than ever for consumers to negotiate down their debt.

Lenders and debt collectors are therefore trying to recovery as much money as possible before things get even worse. This means that consumers are being able to see more of their debt forgiven, repayment times stretched out, and increasingly generous partial payments. Big settlements just aren’t there any more for consumers that no longer have assets to liquidate.

A recent article in the New York Times found that debt collectors saw the number of troubled borrowers getting payment extensions at least double in the last six months. In other cases, borrowers were offered deals that forgave 20% to 70% of their credit card debt. How can you do the same? For small debts, just call up your credit card company and ask for an extension. For larger debts, you may want to contact a professional debt settlement company that can more effectively negotiate.

The new year is upon us and now is the perfect chance to change your bad habits for good habits, particularly when it comes to money in today's tough environment. Here are our top five recommendations for the new year:

1. Take Care of Your Debt – Ignoring debt can be costly and taking action to solve problems now is the quickest way to ensure that you stop bleeding money. If you owe a little money, pay your bills as soon as possible and move on. If you owe a lot of money, seek help from a debt settlement company that can help you reduce the amount you owe and get back on track.
2. Track Your Finances – One of the best ways to regulate your spending is to actually pay attention to it! Free online tools like Mint.com can help you track all of your finances in one easy-to-use place. This can help you discover where you are wasting money and can even help you identify areas where you didn’t even know you were spending money!
3. Refinance Your House – Homeowners are now experiencing one of the lowest interest rate environments in history with rates at just over 5%. Still, many homeowners are paying mortgages at 8% or higher because they don’t want to take the time to refinance. For just a couple hundred dollars out of pocket, you can save thousands of dollars a year on your mortgage payments if you take the time to refinance!
4. Setup Automatic Savings – One of the best ways to save money for troubled times is to do it automatically. When you don’t see the money at all, it’s a lot easier to live without! High interest savings accounts through banks like ING Direct offer automatic deductions from your existing savings accounts. Just setup this account and don’t even look at it until the next new year celebration in 2010!
5. Shop Intelligently – Coupons, online shopping, and eBay all have one thing in common – they are cheaper than spending at regular stores. Before you pay regular price for your next big purchase, check prices online and look for coupons in your local newspaper. These small savings can result in big savings over time!
   

No respirator plugs are likely to be pulled this month as the federal estate-tax exclusion is scheduled to jump to $3.5 million from $2 million so far this year. The new $1.5 million hike in exclusion could translate into hundreds of thousands of dollars in tax savings for heirs of wealthy benefactors who can stay alive until New Years Day.

The debatable so-called “death tax” has more and more affluent Americans keenly planning their health. In fact, many believe it’s just as important to have a good lawyer for estate planning as a cardiologist for their health care. There’s an even bigger incentive to survive until 2010 too when federal estate tax is expected to disappear entirely before reappearing again in 2011 with a $1 million exclusion.

Obama’s presidency is also expected to result in a $3.5 million exclusion in 2009 and thereafter with a top rate at 45%. The plan is ultimately expected to repeat the estate tax for 99.7% of households and the new changes would be made permanent in order to add some stability to the tax code. In the end, that just means that the rich may want to stay alive for just a few more years…

Reverse mortgages are portrayed as a great way for elderly people to extract value from their home in order to fund their retirement. Homes with lots of equity can be liquidated into cash with very little risk, providing funds that can help during tough times during retirement. The downside of course is that the heirs to the home will receive less or none of the remaining home value.

The U.S. Department of Housing and Urban Development (HUD) recommends that interested people consider the following 10 points, however:

1. What is a reverse mortgage?
   
   A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. HUD's reverse mortgage provides these benefits, and it is federally-insured as well.
   
   
2. Can I qualify for a HUD reverse mortgage?
   
   To be eligible for a HUD reverse mortgage, HUD's Federal Housing Administration (FHA) requires that the borrower is a homeowner, 62 years of age or older; own your home outright, or have a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and must live in the home. You are further required to receive consumer information from HUD-approved counseling sources prior to obtaining the loan. You can contact the Housing Counseling Clearinghouse on 1-800-569-4287 to obtain the name and telephone number of a HUD-approved counseling agency and a list of FHA approved lenders within your area.
   
   
3. Can I apply if I didn't buy my present house with FHA mortgage insurance?
   
   Yes. It doesn't matter if you didn't buy it with an FHA-insured mortgage. Your new HUD reverse mortgage will be a new FHA-insured mortgage loan.
   
   
4. What types of homes are eligible?
   
   Your home must be a single family dwelling or a two-to-four unit property that you own and occupy. Townhouses, detached homes, units in condominiums and some manufactured homes are eligible. Condominiums must be FHA-approved. It is possible for individual condominiums units to qualify under the Spot Loan program.
   
   
5. What's the difference between a reverse mortgage and a bank home equity loan?
   
   With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income. The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow. You don't make payments, because the loan is not due as long as the house is your principal residence. Like all homeowners, you still are required to pay your real estate taxes and other conventional payments like utilities, but with an FHA-insured HUD Reverse Mortgage, you cannot be foreclosed or forced to vacate your house because you "missed your mortgage payment."
   
   
6. Can the lender take my home away if I outlive the loan?
   
   No! You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than your home's value.
   
   
7. Will I still have an estate that I can leave to my heirs?
   
   When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs. None of your other assets will be affected by HUD's reverse mortgage loan. This debt will never be passed along to the estate or heirs.
   
   
8. How much money can I get from my home?
   
   The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.
   
   
9. Should I use an estate planning service to find a reverse mortgage?
   
   I've been contacted by a firm that will give me the name of a lender for a "small percentage" of the loan? HUD does NOT recommend using an estate planning service, or any service that charges a fee just for referring a borrower to a lender! HUD provides this information without cost, and HUD-approved housing counseling agencies are available for free, or at minimal cost, to provide information, counseling, and free referral to a list of HUD-approved lenders. Call 1-800-569-4287, toll-free, for the name and location of a HUD-approved housing counseling agency near you.
   
   
10. How do I receive my payments?
    
    You have five options:
    
    Tenure - equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
    
    Term - equal monthly payments for a fixed period of months selected.
    
    Line of Credit - unscheduled payments or in installments, at times and in amounts of borrower's choosing until the line of credit is exhausted.
    
    Modified Tenure - combination of line of credit with monthly payments for as long as the borrower remains in the home.
    
    Modified Term - combination of line of credit with monthly payments for a fixed period of months selected by the borrower.
    

The mortgage crisis may soon be replaced by the credit card crisis and more Americans are defaulting on their credit cards. After years of flooding the mail with credit card offers and towering credit lines, lenders are now sharply curtailing both offers and lines of credit in an effort to preserve capital after writing off more than $21 billion in bad credit card loans in the first half of 2008 alone.

Many experts expect the credit card industry to write off an additional $55 billion over the next year and a half as total losses could surpass the 7.9% default rate reached after the technology bubble burst in 2001. Lenders have been quick to react by hiking fees, cutting reward programs, and decreasing their credit lines even among wealthy customers.

Credit card companies are realizing that they need to cut back sharply as there is no room for extra credit cards. People are completely maxed out with mortgages, home equity lines, and credit card debt. When forced to decide whether to pay a mortgage and lose a house or default on a credit card, it is often an easy decision for cash-strapped consumers to make.

Those that want to preserve their credit scores, however, may want to look into alternatives to simply defaulting. One of the best ways to get your bills paid reasonably is negotiating with your creditors. This can be done personally by calling them up or via professionals through so-called debt settlement companies.