Because the returns are put into terms that can be related within the portfolio in terms of diversification, investors are better able to treat the product itself as an investment as opposed to a savings product. However, it is important to recognize that the proceeds of this kind of instrument are not actually invested into the underlying basket itself, and how it is that the returns are actually distributed to the investor upon maturity.

When purchasing a Market Linked CD, it is a common misconception that the vending bank is actually placing the proceeds of the product into the underlying basket itself, and then passing on the returns directly to the investor. However, this is not the case, because it would not be profitable for the bank to do this.

In reality, banks will generally apply the funds towards their own operations (ie. Usually lending) as well as the purchase of an insurance contract that effectively mitigates the risks associated with the basket of securities grossly out-performing the bank’s own ability to generate returns on investment.

This means that the integrity of the position itself is therefore not tied to the security of the basket itself, but instead the ability of the bank to continue operations. What’s more, it also means that the product will not produce any incremental dividends from the basket itself.

Instead, the account will generally pay an investor a compounded rate of interest that represents the average rate of return of the basket of the period itself. From there, institutions may choose to offer additional perks such as a Best Rate of Return, which provides an interest rate that is equivalent to the average of the best yearly returns of the basket itself.

When examining the actual rates of returns provided by Market Linked CDs, it is important to take into account the nuance of the individual contract purchased. Individual products will have varying ‘caps’, which limit the maximum amount of returns that an investor may realize over a given term. This is the bank’s way of limiting its risk to extremely upside volatility, and is usually placed at approximately 10% in annual returns. Upon determining cap rates, an investor must also determine the ‘participation rate’ of the fund.

The participation rate describes how much of the returns from the basket of securities will be passed on to the investor. For example, a participation rate of 80% reflects that 80% of the percentage return will actually be passed on to the investor, to compensate for a particularly volatile basket of securities. Again, this is taken on by the bank to limit their exposure to extreme swings in the value of the basket of securities, which would result in them taking on undue loss to the investor, even though they have provided a guarantee on the funds themselves.

Now that we understand how it is that a Market Linked Certified Deposit works, the next set of articles will describe concrete strategies for implementing the products into a personal investment portfolio.

Fixed

A Fixed CD is the industry standard product. Funds placed in this agreement are locked away for a period, and cannot be redeemed early without penalty. However, they will pay a higher rate of return to investors, and will keep a predictable compounded return for investors. This product is generally best suited for savers looking to make a purchase.

Flexible/Cashable

Flexible CD’s allow savers the ability to redeem their product earlier that the maturity dates, during specific time periods. This usually means that savers are allowed to redeem a portion of the product during the anniversary date without penalty, at the expense of return on investment.

Alternatively, a Cashable CD allows savers to redeem their contract whenever they should choose without penalty. In general, these securities are best used by savers that are without a specific purchasing goal, but have enough funds to lock away for a better rate of return. So long as the saver can redeem the amounts without fees for cheque or wire, it will generally act as a savings account.

Callable

A Callable CD is product that will provide savers with an incrementally higher rate of return on their investment, in exchange for the right to call out the contract from the saver. This means that the bank will have the right to redeem the CD early should interest rates drop below a certain point. From the bank’s perspective, this allows them to ensure that they are protected from too much opportunity loss on the package.

From the saver’s perspective, the better rate of return should ideally compensate them for the risk of having to lower their rate of return later on. In general, this exchange is best taken on by savers that are looking to boost the shorter-term returns in an entire portfolio of deposits, and who are in a position to manage the variability of the repayment.

Brokered

A Brokered CD is a deposit account that has been split up amongst many clients who have all bought in through portions. While the bank will sell savers individual units of the product itself, they will be recording the purchases as being partial ownerships of a greater fund. By engaging in this sort of transactions, savers can expect to receive a larger rate of return because of the benefits of scale.

Because the saver is now the partial owner of a larger amount of funds, the percentage returns will be larger to reflect the size of the investment that the bank itself now has access to. However, these funds will generally be restricted to larger clients that can afford to purchase larger lots of the fund itself. This means that the product is best suited towards investors that can afford to put aside larger amounts of funds for a prolonged period of time in order to reap the benefits.

Installment

An installment CD refers to the ability of a saver to receive the benefits of a larger purchase amount by purchasing into the account itself over time. While this plan effectively acts as a loan, it allows the investor to benefit from the increased returns associated with a larger principle amount, before they actually have access to the funds themselves.

However, installment plans may come with a lower rate of return to compensate the bank for the risk that they are taking on for the loan aspects of the purchase. Regardless, the saver will still make a profit on the investment itself. Because of this last point, an Installment CD is generally well suited for individuals with an intact credit score, and regular incomes that can be contributed towards the purchase itself.

Bump-Up

A Bump-Up CD is a product that increases the value of interest that is returned to a saver over time, to reflect net present value benefits. In general, these rates will start below the average rates of other products, and will increase on a yearly basis to a point at which they produce an overall return that is more favorable on a long-term basis. However, it is important to recognize that the arithmetic average of these rates of returns will not take into account the time-value of these returns, and might not therefore present an accurate picture of returns. Nevertheless, Bump-Up CDs provide a good long-term opportunity for savers that are looking to tie-away funds for at least 3 years, and believe that savings rates will not be decreasing by much in the future.

Market Linked

The final Certified Deposit opportunity that is available for personal savings is called a Market Linked account, because its rate of return is dependent upon a specific basket of market instruments. However, because of the complexity and magnitude of the opportunity presented by this kind of product, the next article will be fully dedicated to how to implement these into a personal savings plan.

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While individuals throughout the country are having a hard time selling their homes, there are still some bright spots in the housing market. Take a look at some of the best housing markets for 2012.

When looking at information to see if a town that you’re interested in has the signs of an increase in housing values, you need to look at these factors:

• above-average median sales price growth
• a low unemployment rate
• a high rate of sales per population
• high affordability
• low and falling foreclosure activity
• a low share of distressed sales
• above-average projected job growth
• median household income growth
• low and falling vacancy rates
• growth in the number of building permits issued
• above-average population growth
• high projected population growth
• a rise in migration from other states

2012 had been good to these cities so watch them closely:

• Pittsburgh: While this steel town isn’t as glamorous as some of the bigger metros, it does have better prospects than most U.S. cities. The city is showing growth in job base of colleges, hospitals and other health-care employers. The population has remained steady, and those who live here enjoy slightly higher incomes than the national average. The average home cost just $168,612 as of Dec. 1, which makes homes affordable in this area. The housing boom boosted prices 16%. The recession in Pittsburgh also was mild, with jobs down just 2%, and housing growth is expected to be up 2% by 2013.

• Worcester, Massachusetts: This city, just an hour west of Boston, has seen a return in high-tech jobs. Many buyers are looking to Worcester for bigger, less expensive houses than they’d find in Boston. While the average home price of $237,020 has declined slightly over the last year, a 2% growth is expected in 2013.

• Houston, Sugarland, Baytown, Texas: Oil and people are the driving force in this market. Many jobs are opening in the energy sector, and population growth is triple the national average. Incomes are also higher than the national average, and this market was hardly affected by the housing bust. The average home here is just $176,489. This market is expected to gain 2% in 2013.

• Akron, Ohio: The future looks bright in Akron with an average home price of $148,508. Manufacturing jobs are returning, and there was never a real housing boom in this market, so average values are only down 13%. The housing market is also expected to see a 2% increase in 2013.

• New Orleans, Metairie-Kenner, Louisiana: The future of New Orleans is looking bright, with many people returning to the city. Stronger job growth than the national average is driving the return of individuals to this city. The average home price declined 2% last year and is at $249,673, but is expected to appreciate 1% in 2013.

While controversial in their approach to providing incremental returns in even the best of markets, even though they lock away funds for a respectable period of time, it is important to recognize how it is that these instruments command such a great amount of market-share in the investing space, and how it is that we can use them to move towards our personal saving goals.

A Certified Deposit acts as an agreement between a saver and a bank. The saver agrees to allow the bank to lock away an agreed upon amount of funds for a period of time of at least 3 months, in exchange for an interest rate that is slightly more favorable than they would be receiving in their regular savings account. However, the agreement will also incorporate a guarantee from the bank itself, stating that both the principle and interest rate of the instrument are secured. This allows investors to use Certified Deposits for specific saving goals and timelines, without the worry of volatility.

While the benefits of a Certified Deposit are fairly clear, it is important to remember that the termed-nature of the agreement can sometimes be fairly restricting for a saver. Specifically, early redemption of a Certified Deposit, while usually possible, is engineered to be particularly unfavorable.

Savers will generally forfeit any earned interest on an early redemption, and may be required to wait through a delay-period in the event of ‘unforeseeable economic hardship’, which would place the bank in a position of extremely low available cash (ie. A bank run). Lastly, banks may charge a fee for customers that choose to have their interest paid out via check or wire, which may completely negate returns depending on the amount of funds that were invested in the first place.

Between the pros and cons of Certified Deposits, there is a fairly large bracket of usability for savers that are working towards specific investment goals. Certified Deposits are therefore very popular with individuals that are looking to make a down-payment on a mortgage at a specific date, or to take a vacation at the end of the year. The reasons for this preference are generally because of the variety of term-periods available, as well as the security of the principle, ensuring that the funds will still be available for the time of purchase. Lastly, Certified Deposits can generally be purchased on installment plans, meaning that savers can contribute towards a bulk amount over time.

Essentially, so long as the saver is able to maintain the position without needing an early redemption, a Certified Deposit provides a reliable source of income. With that in mind, we will be taking the rest of these week to discuss the specific nuances of Certified Deposits, and how they can be applied more aggressively, and used in much more specific circumstances to maximize value for savers.

Here’s my list of the top ten recession proof jobs.

- Software Design
- Healthcare Industry
- Environmentalism
- Energy
- Accounting
- Sales Representatives
- Network systems and Data Communication Analysts
- Education
- Administrative Assistance
- Social Work Positions

1. Software Design

Software design is one of the fastest growing and most sought after jobs, with the median salary between $85,000 and $95,000. Software designing has great potential to grow due to the demand that businesses place on this skill. The fact that software designing is a job that requires skill, creativity and training makes it recession proof.

2. Healthcare Industry

Healthcare is one sector that is given precedence over other fields and is considered a vital part of the economy. Nursing a field predominantly chosen by women is facing shortage of staff mainly due to the decreasing number of women choosing this as a career. With a projected growth rate of about 24%, nursing is one field that is considered to be recession proof. In addition to the position of nurses being considered secure, those of physical therapists, physicians, surgeons, dental hygienists, pharmacists, veterinarians and health services managers are also believed to be recession proof.

3. Energy

The energy sector continues to be in demand despite the fluctuations in oil prices. One of the main reasons for the energy sector to be considered recession proof is that energy related projects are long term and this industry witnesses recruitment on a consistent basis. Additionally, as scientists and engineers are now collaborating on energy related projects to find alternative fuel and energy forms, there is a growing demand for people in this profession.

4. Environmentalism

People in green jobs, which include renewable energy specialists, energy efficiency advisors and environmental engineers are also insulated from the ill-effects of recession. With a rising need for alternative forms of energy, these professionals are engaged in finding substitutes for fuels and understanding how renewable forms of energy can be used to counter other depleting resources. This has increased the demand for green jobs even during economically tough times. An environmental engineer has the potential to earn more than $70,000 over the next few years, while enjoying an estimated growth potential that can go up to 25%. Environmental scientists and specialists can earn up to $56,000 and share the same growth potential as environmental engineers.

5. Accounting

An accounting executive or financial executive can draw between $65,000 and $75,000 while accounting staff can draw between $45,000 and $55,000. Accounting is a field which is yet again based exclusively on one’s skill with numbers and ability to perform adequately under pressure. This combination makes it a much sought after profession. All companies require the services of accountants who can manage their audits, do their book keeping and ensure that their accounts and finances are in place. Currently there is a refreshed interest in cost savings which has lead to a huge demand for purchasing specialists, senior finance interns and internal auditors.

6. Sales Representatives

Even during recession a large emphasis is placed on a company’s sales representatives and they are an essential part of any company’s workforce. With the right kind of representation, sales personnel can help pull their company out of a financial crunch. During crippling financial times, a company must engage in developing and promoting their business with the help of their sales representatives. The median salary of sales representatives and those involved in business development is estimated to be between $65,000 and $75,000, with the overall salary being largely based on commissions.

7. Network systems and Data Communication Analysts

Network administrators are placed next on the list of the most recession proof jobs. A person on the networking or systems administration side earns a median salary of approximately $65,000-$75,000. There is an increasing demand for professionals in this field especially in newly emerging economic activity hubs such as China, India and the Middle East. With a projected growth rate of around 50% in the next few years, network systems and data communication analysts can be considered to have one of the most recession proof jobs.

8. Education

Education is one thing that people are not willing to compromise on even if there is a recession. Despite financial constraints, parents have continued to get their children educated at the best universities. Salaries of post secondary teachers were not affected during recession and they continued to earn an average of $58,000. In fact even during a recession and with over 230,000 teaching jobs vacant, there is plenty of scope for aspiring teachers.

9. Administrative Assistance

Receptionists, secretaries and executive assistants are a vital part of any company’s workforce. Clerks, personal assistants, project assistants, receptionists, secretaries and production assistants are some of the different types of administrative assistant positions that companies offer. It is estimated that an administration assistant earns a median salary of $35,000-$45,000. With administration assistants performing a wide range of duties like researching, data entry and preparing electronic documents, there is an ever growing demand for individuals who are qualified to handle these essential tasks in a company.

10. Social Work Positions

Companies, schools and colleges are hiring counselors and psychologists to help employees and students alike. In addition to this, the field of social work has a growing need for social and community service managers, occupational therapists and social and human service assistants. With an increasing number of individuals benefiting from the services of rehabilitation centers, substance abuse and behavioral disorder, therapists are getting paid up to $35,000 on an average, making social work a recession proof career.

Recession proof jobs are time and demand dependent and the list can change every five years. Most of the jobs on this list place a lot of emphasis on training, skill and professional acumen.

- Having Too Many Credit Cards
- Being Misled by Introductory Rates
- Skipping the Fine Print
- Taking a Credit Card for the Wrong Reasons
- Late Bill Payments
- Ignoring Monthly Statements
- Lending Your Credit Card
- Using a Credit Card to Draw Money
- Exceeding Your Credit Limit
- Making Unnecessary Purchases

1. Having Too Many Credit Cards

When you get an offer for a new credit card, accepting it might seem like the right thing to do at that point of time but it may end up being a costly mistake. The first problem with possessing several credit cards is that it can be difficult to keep track of the expenditure you make on each card. Following each of the payments that you have made and the payments that remain to be made can also be a hassle when you have many credit cards. Each time you sign up for a credit card, there are credit inquiries that take place and recurring credit inquiries can lower your credit score. In addition to this, the more credit cards you have, the more likely you are to use them freely, leading to a higher credit card debt.

2. Being Misled by Introductory Rates

An introductory annual percentage rate (APR) is the interest rate at which a credit card is offered to you. The APR for your credit card is initially low as it is offered as an incentive to attract potential customers into applying for the card. However, after a certain period, the introductory rates increase. It is wrong to assume that the rate at which the credit card has been offered to you will remain the same for a long time. Make enquiries with your credit card company about the APR that will have to be paid after the introductory period is over.

3. Skipping the Fine Print

Always read the fine print on any credit card offer documents that you receive. Not reading it is one of the biggest mistakes that people make. It is in the fine print that credit card companies mention important terms and conditions. Very often, the language used in credit card offers’ fine print can be difficult to understand. So if you need assistance in understanding it, you should seek help from a financial expert. Remember that when you sign the offer document, you are indicating that you agree to the credit card company’s terms and conditions. Also, look for the Schumer Box in the offer document as it will have a summary of the credit card company’s rates, fees and penalty charges.

4. Taking a Credit Card for the Wrong Reasons

Taking a credit card because it has a great rewards program may not be a great idea. Mostly, when credit cards are presented with offers and rebate programs for their customers, they also bring with them certain conditions. For instance, a credit card which offers you frequent flier miles may come with certain restrictions. While offers and rewards are dangled before you to lure you into applying for the card, the conditions placed on the offers are in the fine print and are therefore less obvious. Ensure that you do not opt for a credit card only for its seasonal offers or reward programs, instead take a credit card which offers you clear long term benefits.

5. Late Bill Payments

Delayed bill payments have cost many credit card holders dearly. To avoid making this mistake, make a note of the dates on which your credit card bills have to be paid so that you do not miss making payments. Additionally, check if your credit card company observes a cut off time. The cut off time is the time of day by which your bill payment must be received by the company. If the credit card bill payment is received even a second beyond the cut off time, it will be considered late, even though you have made the payment on the specified date. When you make a late credit card bill payment, you will incur a late payment fee. A late payment of your credit card bills can adversely affect your credit score and make it difficult for you to get future loans at a low rate.

6. Ignoring Monthly Statements

While it is a bad practice to delay your credit card bill payments, ignoring your monthly statements altogether is even worse. When you ignore your monthly credit card bills, you may have no idea whether or not you are getting billed correctly. Even though there are laws which mandate that credit card customers be billed fairly and accurately, there could be errors in your credit card bill. Most often, when you set out to read the statements after a period of time, you may not identify the irregularities and inconsistencies in the bill, especially if you haven’t kept track of your expenses on the credit card.

7. Lending Your Credit Card

Lending your credit card to a friend or loved one is not a good idea. There are quite a few things that can go wrong. For instance, the borrower may overspend on the card despite your caution on the credit card’s maximum limit and you may end up paying a huge bill. When you lend someone your card, not only are you are paying for items you did not purchase but have no guarantee that you will be paid back. It is advisable to keep your credit card details personal and avoid disclosing them to even people who are close to you.

8. Using a Credit Card to Draw Money

Drawing money using a credit card is one of the most common credit card related mistakes. Whether you make cash withdrawals with a credit card to pay another credit card bill or a utility bill, the rate of interest charged will be high. It is best to refrain from using your credit card as a debit card.

9. Exceeding Your Credit Limit

Keep a track of your credit card expenses to ensure that you do not exceed the credit limit on the card. When you go beyond your credit limit, your credit card transactions will be declined or worse still, you could get charged for exceeding the credit limit. In addition to being charged exorbitant fees for exceeding your credit limit, you will also lose your credit score. To avoid this mistake, ensure that you keep track of all the expenses that you have made using each of your credit cards and stop using the card before you reach the credit limit.

10. Making Unnecessary Purchases

Impulse buying is one of the biggest mistakes credit card holders make. It can result in huge credit card bills. As a credit card affords you the luxury of making purchases without having to worry about a budget, buying things on an impulse can become a major problem. Be disciplined about what you use your credit card for, and never make impulse purchases using your card.

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How Much Americans Spend on Sports Each Year

Americans spend billions each year on sporting events, merchandise and other sports-related activities. To determine where all this spending is being done, you need to look at several different categories.

Retail Sporting Goods

More money is spent on sporting goods than the actual sporting event itself. Americans spend nearly $35 billion dollars a year on a wide variety of items, such as golf balls, football gear and much more.

Sports Logo Apparel

A recent study by the National Sporting Goods Association (NSGA) showed that Americans 16 years of age and older spent more than $8 billion on sports logo apparel. Males accounted for 60.9% of all purchases, while females accounted for the balance of 39.1%.

Sports Gambling

Sports gambling in the U.S. is a $400 billion dollar industry, with nearly $300 billion of those dollars coming from non-regulated, illegal bookmaking organizations. The state of Nevada clears $20 billion a year alone in sports gambling.

Spending on Sports by American Parents

It is estimated that American parents spend about $300 million dollars every year, just in registration programs for their children’s different sports fees. Add to this the amount of money these same parents are spending on sporting goods and travel to these events, and this number jumps to nearly $900 million per year.

Sports Media, Ad Spending and Pay-Per-View

Leading the charge in sports-related spending are ad spending and pay-per-view events. Companies paid an average of $3.5 million for a 30-second spot in the 2012 Super Bowl. The World Series, the NBA and NCAA Finals, and the PGA generate a huge amount of revenue each year in ad sales.

Add to this the money Pay-Per-View draws in from sporting events such as UFC, major boxing matches and more, and it’s estimated that Americans spend upwards of $10 billion dollars every year to be entertained by these sports.

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Learn How Credit Card Companies Suck You Into Debt

• Universal Default considers any late payment. So even if you pay that credit card balance every month, skipping an auto loan payment or being late on a utility bill can still bring a higher interest rate.

• Low or even 0% APR are quite tempting. However, do you realize that if you are late or miss a payment, that introductory rate can balloon up to 35%. Then you can say adios to that introductory rate.

• Your fixed late fee is only $35, but you may have a percentage-based late fee, and that can get very high, very fast. Find out if you have a fixed or percentage-based; it can save you hundreds.

• Made that payment on time? Sure, you paid it the day it was due, but did you know that you may actually have a specific time of the day that it’s due? Payments can still be considered late if they are made after a set time.

• Deciding to get out of the U.S. for a bit? Well, not only are the exchange rates different, so are your interest rates. When you leave the country, you can expect anywhere from a 1%-3% fee on your purchases . . . oh, and tack on a 1% exchange rate fee.

• Know what you’re getting yourself into with variable rates. While you may get a great introductory rate, that rate may last only a few months and can be changed at any time, for any reason, without notice.

• Need folding money in your pocket? Well, if you take a cash advance on your credit card, you may be charged a higher APR for that amount. Plus, any payment made goes towards the lowest APR first, so that advance will be the last thing you pay off.

• To avoid higher finance charges, thanks to two-cycle billing, make sure you pay your balance in full each and every month.

• Want to transfer a balance from one credit card to another that has a lower rate? Be careful; that card company may lower your limit and you could end up having an already tapped out card, causing over-the-limit fees and additional charges.

• What a break! That low monthly payment is definitely doable! However, that convenience just means you will have to pay much longer and accrue more finance charges each and every month.

• Can’t stand those cards anymore? Great, get out the scissors and slice those puppies up! However, expect to see an inactivity fee on your billing.

• Have bad credit but still getting approval letters? Those small limit cards could come loaded with fees already. A program fee, annual fee, set-up fee or participation fee can quickly leave you with only enough credit to buy one gallon of premium gasoline.

• UGH! Now you have maxed-out your cards with sky high APR’s, you’re swimming in debt and the only help you can get are small pieces of credit. Now call up the sketchy services that offer debt relief or credit counseling.

• Sure, all of the debt relief companies aren’t as dirty as others; there are more out there that would rather nibble upon your floating body, stricken by debt while you slowly drift to the abyss below.

• Okay, they will definitely reduce your interest rates and your payments, but be prepared to pay them as well. They will charge you a set-up fee, a monthly service fee and to top it off, they get a percentage of the debt you do pay.

• So they make their money on top of all the interest and finance fees that are still your responsibility. And you keep sinking . . .

• Did we say they were sketchy? So, you make your first payment, but some organizations will just take that payment, smile and put it directly into their pocket. And guess what? You’re already a full month behind.

• Forget that! You want to go with a non-profit! Whoa, hang on there, partner. Some of these are reorganizing themselves as non-profits to avoid certain state licensing requirements, so yeah, welcome to the depths of debt!

• Now you are relying on a less than reputable company to represent you, who may not pay your debt on time themselves, generating more fees, and to think, you’ve been doing that on your own already, but now, you are paying them to do it!

• Sadly, if you want to qualify for any debt relief management program, you have to miss payments. Creditors won’t help you if you pay on time. So, you have to decide what you can live with in relation to your debt.

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Leasing or Buying a Vehicle What is the Best Option

Benefits of Leasing:

• Leasing allows you to have a new or late model car at all times. Late model and new cars often have the newest technology in safety and entertainment features.

• Leased vehicles are usually under warranty, and sometimes even have a no charge maintenance plan. This is a big factor in repair bill savings. Leasing allows you to avoid negative equity, or falling in a trap many know as being “upside-down” on a loan. Individuals who purchase a vehicle and want to get rid of it before the loan term is up often owe more on the loan than what the car is worth. They end up having to put the negative equity of that vehicle into the loan of their new vehicle.

• More vehicle at a lower monthly payment. Individuals who lease a car only pay for the depreciation on the vehicle, not the entire vehicle.

• When you lease, you can avoid negative equity, or falling in a trap many know as being “upside-down” on a loan. Individuals who purchase a vehicle and want to get rid of it before the loan term is up, often owe more on the loan than what the car is worth. They end up having to put the negative equity of the vehicle they want to get rid of into the loan payment of their new vehicle.

• Self-employed individuals can write off their leasing payment as a business expense.

Benefits of Buying:

• By buying a vehicle, you will never have to worry about any excess mileage or wear and tear. Most leased vehicles allow you a set amount of miles for the lease term, and any additional miles will be charged to you at the negotiated price. In addition, leased vehicles require an end-of-lease inspection, and if excess wear and tear is found, the costs can add up.

• Once your vehicle loan is paid off, you can be payment-free for a while. This means more money in your pocket, but be ready for any repair or maintenance bills that you may face.

• Once your vehicle is worth more than you owe, or is paid off, you’ll have real equity in the purchase. This means if you do want to sell your vehicle, you will have something to show for it.

• Lower insurance limits are required on most purchased vehicles than on leased vehicles. The lower limits also mean lower insurance premiums and payments.

• When you purchase a vehicle, it’s yours. If you want to modify the engine or customize the car in any way, you can do it without the restrictions that leased vehicles have.