Retirement+and+Legalities

=Section III--Retirement and Legal Issues Concerned with Finance=

**Bankruptcy (David Knapp)**
Bankruptcy is the term used when one builds up so much debt that they can not pay. Depending on income, there are two possible procedures. If the income is below that of the predetermined amount made by the state, one may file Chapter 7, otherwise, one must file under Chapter 13. [|Chapter 7 Exemptions]

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Here's an article about a new law passed that made it harder to qualify for and apply for bankruptcy. [|Bankruptcy Bill]

**401(K)**
A 401(K) is a retirement plan, which allows individuals to accrue savings, but put off income taxes on saved money and earnings until the money is withdrawn. Though plans vary, employees usually have a percentage of their earnings paid directly into their 401(K) accounts. The following videos give some tips and caveats on handling one's 401(K): media type="youtube" key="WykQmASGfzM&hl=en" height="355" width="425" media type="youtube" key="ENPDXuNRtto&hl=en" height="355" width="425"

Mutual Funds
A mutual fund consists of money from many investors and is collectively invested in stocks, bonds, short-term money market industries, and/or other securities. Gains made by the portfolio manager on the money are passed around to individual investors. The following video helps to explain more thoroughly exactly what a mutual fund is and how it works: media type="youtube" key="ky7GWCksyRg&hl=en" height="355" width="425"

Stocks
Stocks are a way for individuals to, in a way, own part of companies into which they have invested. By actively participating in the buying and selling of shares of a company, one has the opportunity to enjoy the gains of a successful period or suffer the losses of a poor one. The following website provides an EXCELLENT tutorial for anyone who wants to begin his or her exploration of the world of stocks: [|Stock Charts Chart School]

Bonds
A bond is a loan in the form of a security, wherein the issuer owes the holders a debt and is obliged to repay the principal and interest at a later date, called the maturity. The main difference between stocks and bonds is that stock-holders are the owners of the company, while bond-holders are lenders to the issuing company. Another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely.

The following is a government website that explains bonds and other securities: [|Treasury Direct]

**Credit counseling services (Will Justis)**
Though how they relate to personal finance may seem self-explanatory, Credit Counseling Services are firms with counselors that help you with your credit and may aid you in getting out of your debt. They can look at how much you owe and help you set up a payment plan that suits your situation.

I found these sites helpful when looking for information [|What are Credit Counseling Services?] [|How To Choose A Credit Counseling Service?] [|How To Deal With Bankruptcy?]

Starting your own business (Brett)
Running your own business is a rewarding but demanding career and life choice. There are many different opinions about how to start a business from writing and researching a detailed business plan to jumping into a passion and trying to make money out of it. Starting your own business can be a scary thing, and normally takes the full commitment of the persons involved.

The following links would help one who plans on starting their own business: http://www.sba.gov/smallbusinessplanner/index.html http://www.kiplinger.com/columns/starting/archive/2006/st0504.htm

**Wills**
Under United States law, a will or testament is a document by which a person controls the rights of their property or family after their death. Any person over the age of majority can draft their own will without the aid of an attorney. People die at all ages and a will is needed especially if you have assets and property to be allocated to those you wish to benefit. Wills are becoming more and more controversial, watch the video below to learn more about living wills. http://www.youtube.com/watch?v=H1Kba4LZTX4