Small Steps to Health and Wealth™ Online Challenge Begins April 10

This free five-week program to simultaneously improve your health and personal finances will be held from Sunday, April 10, through Saturday, May14.  Prizes will be awarded for participants who report the highest point totals.  The SSHW Challenge is based on the performance of ten recommended practices on a daily basis: five that involve health and nutrition and five that involve financial management. 

The five daily health and nutrition practices are: eat at least 4 cups of fruits and vegetables; get at least 30 minutes of exercise; drink water or unsweetened beverages instead of sugar-sweetened beverages; walk 10,000 or more steps with a pedometer; and learn something new about health and nutrition.

The five daily financial management practices included in the SSHW Challenge are: save a $1 bill (or more) and/or pocket change; invest $5 or more per day (including automated retirement savings plan deposits); track money spent throughout the day; eat lunch prepared at home; and learn something new about personal finance.  The latter activity, for both health and personal finances, can be accomplished by visiting Web sites, attending seminars, or by reading, listening to, or viewing media reports. 

To sign up for the SSHW Challenge, follow the “Challenges” link on the Small Steps to Health and Wealth™ Web site at http://njaes.rutgers.edu/sshw/.  Set up a user name and password and download a simple one-page user’s guide with instructions about how to proceed.

Why your kids shouldn't go to Harvard

Regardless of where your kids are thinking about or applying for college, read this enlightening article supported by academic research that will help you reassess how much to go in debt for a college education.
"Why your kids shouldn't go to Harvard" by Marty Nemko
http://www.martynemko.com/articles/why-your-kids-shouldnt-go-harvard-even-if-they-could-get-in_id1247

Opt Out of Credit Offers

Tired of getting all that junk mail with credit card offers and advertising for pay day loan companies (got one yesterday)? Time to OPT OUT. Actually, besides clogging your mailbox and cutting down forests, pre-screened mailed credit card offers can be used by thieves to steal your identity. Go green and opt out of those offers: https://www.optoutprescreen.com/?rf=t

The site gives a balanced view of pros and cons of opting out. An alternative to the website is the toll free phone #: 888-567-8688.

12 Common Scams That Target College Kids

But not just college students! We all know that there are plenty of scams out there but we think we are too smart and sophisticated to become a victim. Because college students are among the most high tech, internet savvy consumers and heavy mobile phone users, they are more at risk than those of us who still hold to some of our old-fashioned ways. 

Here’s an example: “Anyone using WiFi on an unsecured network is at risk for identity theft, but because college students more often take their computers to coffee shops, parks, restaurants and other public places to study, they might be at a higher risk for this type of scam.” 

We all know we shouldn’t use public WiFi for banking, shopping, etc. but sometimes we are so used to doing everything on our computers that it’s easy to forget… Oh yeah… I’m not working on my own internet system at home. Oops! Learn about 12 common scams, some targeted at all of us, some to college students. Thanks to Emma Taylor with Accredited Online Colleges for this link: http://www.accreditedonlinecolleges.com/blog/2011/12-common-scams-that-target-college-kids/

Trial & Heirs: Top 10 Celebrity Estate Planning Mistakes

These mistakes in estate planning are drawn from Trial & Heirs: Famous Fortune Fights! (www.TrialandHeirs.com) by Andrew W. Mayoras & Danielle B. Mayoras. The Mayoras are both husband-and-wife as well as legacy expert attorneys.http://www.financial-planning.com/photo_gallery/fp/1_32/photo/-2672109-1.html (Thanks to Financial Planning Daily.) 

You may not have a multimillion dollar estate, but each of us needs to plan for our inevitable demise and care for those who are dependent on us, and make sure our money goes where we want it to after our death. Don’t procrastinate. A great place to start is at Nolo Press’s website: http://www.nolo.com/legal-encyclopedia/wills-trusts-estates/

What to do with bigger paycheck

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 temporarily reduces the Social Security portion of the FICA payroll tax from 6.2% to 4.2%, which means an increase of 2% in your pre-tax income. (You should have noticed a larger paycheck this year.) For example, if you earn $50,000 a year, you can expect to see an additional $1,000 in your pay, before income taxes, for 2011.   

This money would have been used for retirement through the Social Security program. Instead of spending it, consider saving more for your own retirement by contributing to a Roth IRA.  Although some employers are encouraging employees to contribute the money to a supplemental retirement account (SRA), a Roth IRA is a better choice for a couple of reasons.   

1) In retirement, all of your defined benefit pension income (URS or other pension) and withdrawals from a defined contribution plan such as a 401(k) or 403(b) (TIAA-CREF, etc.) will be subject to income tax at rates that are very likely to be higher than today’s ultra low tax rates. Income tax rates WILL be higher in the future, despite the current anti-tax rhetoric, due to the large federal deficit and entitlement programs (your SS retirement checks).  Because a Roth IRA is funded with after-tax dollars (you don’t get a tax deduction for your contribution), withdrawals in retirement will be tax-exempt. So it is better to pay income taxes now when rates are low in order to avoid taxes on part of your retirement income (from Roth IRA) in the future.

2) You should invest your retirement savings where the investing costs are lowest AND where you don’t pay a commission to a sales person. Some of the SRAs offered through employers charge commissions and high fees. Vanguard index mutual funds and the Schwab Total Stock market index fund (more diversified than the S&P 500) charge the lowest fees that my students and I have been able to find.  Vanguard requires $3,000 to open an IRA but Schwab lets you start with as little as $100. 

For details and specific suggestions, consult the January/February issue of Money magazine or the link to the Money 70:  http://money.cnn.com/magazines/moneymag/bestfunds/ a list of 70 low cost mutual funds and exchange traded funds (ETFs) along with a clear explanation of the choices. Go for the low expense ratios.  Open a Roth IRA with your SS tax savings and do it NOW!

Buying a new or used vehicle?

Start the search for a new or used vehicle with the April issue of Consumer Reports magazine. CR is well known for its impartial reviews of new cars but it's also the best source of info on used vehicles. Check out their list of best and worst used cars.

Small Steps to Health and Wealth™

Small Steps to Health and Wealth™ Online Challenge Begins April 10

"Just in time for warm spring weather and more time spent outdoors, the Cooperative Extension system is launching an online Small Steps to Health and Wealth™ (SSHW) Challenge called “Spring 2011 SSHW Challenge.”  This free five-week program will be held from Sunday, April 10, through Saturday, May14.  Prizes will be awarded for participants who report the highest point totals. 

To sign up for the SSHW Challenge, follow the “Challenges” link on the Small Steps to Health and Wealth™ Web site at.  Set up a user name and password and download a simple one-page user’s guide with instructions about how to proceed. Enroll in the Challenge titled “Spring 2011 SSHW Challenge.”

The SSHW Challenge is part of Small Steps to Health and Wealth™, a national Cooperative Extension program developed to motivate Americans to take action to simultaneously improve their health and personal finances.  SSHW was built around a framework of 25 research-based behavior change strategies. 

It has been well documented that, when people monitor their behavior and measure their how they’re doing, they are often inspired to do better and achieve positive results.  Participants in a SSHW Challenge are “on their honor” to report their activities accurately.  If they “cheat” on reporting their points, they are only cheating themselves by not following the recommended daily practices.

The SSHW Challenge is based on the performance of ten recommended practices on a daily basis: five that involve health and nutrition and five that involve financial management. The five daily health and nutrition practices are: eat at least 4 cups of fruits and vegetables; get at least 30 minutes of exercise; drink water or unsweetened beverages instead of sugar-sweetened beverages; walk 10,000 or more steps with a pedometer; and learn something new about health and nutrition.

The five daily financial management practices included in the SSHW Challenge are: save a $1 bill (or more) and/or pocket change; invest $5 or more per day (including automated retirement savings plan deposits); track money spent throughout the day; eat lunch prepared at home; and learn something new about personal finance.  The latter activity, for both health and personal finances, can be accomplished by visiting Web sites, attending seminars, or by reading, listening to, or viewing media reports. 

As participants enter their personal data, they will see their point totals for each day of the week and for each of the ten activities described above.  They’ll also see a bar graph that compares their personal progress to the average scores of everyone else participating in the Challenge.  Daily motivational messages will also be provided to participants.

Doing even one of the ten recommended daily practices is a great way to get started on the path to better health and improved financial security. To sign up for “Spring 2011 SSHW Challenge” visit the SSHW Web site at http://njaes.rutgers.edu/sshw/."

For further information and/or questions contact: Barbara O’Neill, Extension Specialist in Financial Resource Management, Rutgers Cooperative Extension

oneill@aesop.rutgers.edu  732-932-9155 (X 250)

VITA: Free Tax Preparation

"Earn it.  Keep it.  $ave it." is Utah's statewide coalition for improving family financial stability through the utilization of the Earned Income Tax Credit (EITC), free tax preparation (VITA), and asset building programs.
The VITA (Volunteer Income Tax Assistance) program was initiated by the Internal Revenue Service (IRS) to offer free tax preparation for low-to-moderate income households who cannot prepare their own taxes or afford to pay a preparer.

Low-to-moderate income households, whose annual income is under $49,000, may receive free tax preparation assistance.  For eligibility information or to schedule an appointment, dial 2-1-1.

Contact person:
Jodi West
VITA Regional Coordinator/Case Manager
Bear River Association of Governments (BRAG)
170 North Main
Logan, Utah 84321
(435) 752-7242 Ext. 431
jodiw@brag.utah.gov

Are you ready for an earthquake?

Having visited Christchurch, NZ, the news and photos of the recent earthquake are very unsettling. Rather than simply lament the death and devastation, it’s time to prepare for Utah’s inevitable quake.  A terrific resource is: Putting down roots in earthquake country: Your handbook for earthquakes in Utah. Download a copy at: http://ussc.utah.gov/publications/roots_earthquake_low.pdf

Other states like California have similar publications with info specific to their state.  See: http://earthquake.usgs.gov/prepare/

There are lots of little, inexpensive things you can do to reduce the damage to your home and reduce potential injuries.  Besides making some changes in your house, you need to plan for the financial effects of a quake. See:

• p. 18 Your Financial Situation Could Be Affected by a Quake
• p. 31 A Review of Money Matters: Financial Impacts of Earthquakes

“Following a quake, disaster aid may not be immediately available, so you should plan ahead. If you have prepared a financial disaster recovery plan, you are more likely to recover successfully after a quake.” Financial recovery planning resources are available from resources listed at the end of the booklet.

Contact your homeowners insurance agent to arrange for quake coverage on your most valuable financial asset, your house.  Earthquake damage is NOT covered by regular homeowners insurance.  Like floods, earthquake damage is explicitly excluded .  For info on HO insurance see: Earthquake insurance in Utah: http://www.insurance.utah.gov/auto/earthquake.html

Social Security 101: What's in it for me?

Are you a college student or young worker getting started on your career? Curious what that FICA tax is that comes out of your paycheck? Want to know how Social Security can help young people?  We’ll answer these questions and more during our webinar, “Social Security 101: What’s in it for me?”
Watch the interactive broadcast on Thursday, March 10, 2011 at 3:00 p.m. EST. We'll also share some tips on saving and planning for your financial future.
http://www.socialsecurity.gov/webinars/social_security_101.html
This webinar will be available on the Social Security website after the initial showing so check it out.

Test your credit score IQ

Credit scores help lenders determine whether to lend to you and, if so, how much to charge (your APR). Credit reports and scores are also used by insurance companies to decide whether to insure you and how much to charge.

Take the interactive credit score quiz and find out how much you know: 
http://www.creditscorequiz.org/