Millions of homeowners face flood risks without realizing it, and climate change is making it worse

By 2050, 16.2 million properties will be at ‘substantial risk’ of flooding in a given year, report finds.

And it's not just properties along the coast or near rivers. 

"When Hurricane Harvey struck Southeast Texas in 2017, it provided a real-life stress test of the plans for flood risk in a highly vulnerable region. Southeast Texas failed that test. More than half of the homes engulfed by floodwaters were located outside city- and federally designated 100-year floodplains."

"Nationally, there are at least 6 million households that are unaware they’re living in homes that have a 1 percent chance of flooding in each year — putting them within a '100-year' flood zone. This is nearly 70 percent more homes at substantial risk of flooding than are within the Federal Emergency Management Agency’s Special Flood Hazard Areas, a designation that determines eligibility for the National Flood Insurance Program."

"This count is set to grow substantially in coming decades due to the effects of climate change, including sea level rise, which will make hurricane storm surges more damaging, as well as precipitation extremes."

"The report, from the nonprofit flood research and communications group First Street Foundation, is aimed at leveling the playing field between buyers and sellers, and democratizing specialized flood risk analyses that insurance companies and consulting firms are producing but charge hefty sums to access."

Now, a prospective buyer can see a property’s flood risk score, which First Street calls the “Flood Factor,” along with a map showing flood information, for 142 million properties in the Lower 48 states.

First Street is providing property-level mapping free on its website.

As reported by The Washington Post

https://www.washingtonpost.com/weather/2020/06/29/flood-risk-climate-change/?utm_campaign=wp_post_most&utm_medium=email&utm_source=newsletter&wpisrc=nl_most

Check out your property at: https://www.floodfactor.com/ 

How is the financial health of Americans changing over time?

If you are facing challenging financial stress due to the coronavirus, you are not alone. Even in 2019, before the virus, most Americans were not financially healthy according to research by the Financial Health Network https://finhealthnetwork.org/research/u-s-financial-health-pulse-2019-trends-report/?utm_source=nyt-paid-post&utm_medium=pulse-button&utm_campaign=nyt-paid-pulse
"In a year-over-year analysis, the second annual U.S. Financial Health Pulse report reveals that the majority of Americans are still not financially healthy, despite an economy that has continued to grow" based on 2019 data before the virus.

"The 2019 Trends Report presents findings from the second annual U.S. Financial Health Pulse consumer survey, including:
1. Only 29% of Americans are financially healthy, despite a booming economy.
2. Financial health disparities based on income, age, gender, and race have persisted since 2018.
3. Financial health changed for millions of Americans from 2018 to 2019, often dramatically.
4. People who had changes in their employment and physical health saw the largest year-over-year shifts in their financial health."
Keep in mind that these data and conclusions are from 2019 before coronavirus.

Taking the Nation's Financial Pulse in Uncertain Times

"Millions of Americans were struggling financially, even before the Covid-19 crisis." 

"The U.S. Financial Health Pulse shows that only 29 percent of Americans were financially healthy in 2019. Just over 70 percent of Americans were not financially healthy and may be unprepared for changes in their income, financial shocks or an economic downturn. These figures were roughly the same as 2018, but likely to change as the coronavirus outbreak takes its toll on the economy."

https://www.nytimes.com/paidpost/financial-health-network/taking-the-nations-financial-pulse.html?cpv_ap_id=50043239&sr_source=lift_morein&tbs_nyt=2020-March-nytnative_morein

"The U.S. Financial Health Pulse led by the Financial Health Network, is a landmark study designed to capture a more holistic picture of the financial health of Americans. The Pulse follows a large group of the same respondents year over year. It also combines survey data on spending, saving, borrowing and planning to devise a FinHealth Score™ that gives a detailed and realistic picture of how Americans are doing financially. Respondents fall into three categories: financially healthy, financially coping and financially vulnerable."

While the Financial Health Network is primarily geared to professionals in pubic policy, finance, and social networks, the knowledge that you are not alone if you are experiencing financial problems is key to taking action rather than blaming yourself. This blog is designed to for self-help and awareness of how to change one's behavior and resources for improving financial well-being.

A ONE-OF-A-KIND CONTINUING STUDY
SHOWS THAT MILLIONS OF PEOPLE
ARE LIVING ON THE EDGE

A ONE-OF-A-KIND CONTINUING STUDY
SHOWS THAT MILLIONS OF PEOPLE
ARE LIVING O 

A ONE-OF-A-KIND CONTINUING STUDY
SHOWS THAT MILLIONS OF PEOPLE
ARE LIVING ON THE EDGE

Beware for-profit colleges!

For-Profit Colleges, Long Troubled, See Surge Amid Pandemic

"The coronavirus shutdowns have made online learning more attractive. But students at some schools say they have been taken advantage of." Writing for The New York Times, Sarah Butrymowicz and Meredith Kolodner reveal a new round of abuses.

"Some have put students deep in debt while posting dismal graduation rates amid a history of investigations by state and federal agencies, including many that have led to substantial financial settlements."

As this blog has warned before, online colleges have a track record of charging high tuition, making unrealistic promises about employment and pay, while taking advantage of students. Remember Trump University? Strayer University, Ashford, Grand Canyon and Capella universities have track records of abuse causing them to pay fines but they stay in business, making profits off unsuspecting students.

"Online for-profit colleges like these have seen an opportunity to increase enrollment during the coronavirus pandemic. Their flexible programs may be newly attractive to the many workers who have lost their jobs, to college students whose campuses are closed, and to those now seeking to change careers. The colleges’ parent companies often have substantial cash reserves that they can pump into tuition discounts and marketing at a time when public universities and nonprofit colleges are seeing their budgets disintegrate."

"Few of the largest for-profit colleges operating primarily online have track records to justify the optimistic advertising pitches. Some have put students deep in debt while posting dismal graduation rates amid a history of investigations by state and federal agencies, including many that have led to substantial financial settlements."

"Eileen Connor, the legal director at the Project on Predatory Student Lending at Harvard Law School, said she was worried by the prospect of a resurgence for online, for-profit schools."

Students: Beware of for-profit universities!

College Rankings

"Among the most prominent sources for finding college rankings is the U.S. News and World Report, which offers expanded profiles for nearly 1,800 schools in America and ranks schools or programs according to different criteria. As a magazine for finding reliable business and finance information, Forbes also composes a list of “America’s Top Colleges” at the undergraduate level. Princeton Review is another popular resource that publishes rankings for the best national and regional colleges based on 62 different categories, including vibrant party scenes, beautiful campuses, comfortable college dorms, and great financial aid packages." https://www.bestdegreeprograms.org/

This website also provides lots of other information about colleges, including rankings of international programs and ow to afford your degree.

Your complete guide to a succesful and secure retirement

"Investment and personal finance experts Larry Swedroe and Kevin Grogan present uniquely comprehensive coverage of every important aspect you need to think about as you approach retirement, including:

Social Security, Medicare, investment planning strategy, portfolio maintenance, preparing your heirs, retirement issues faced by women, the threat of elder financial abuse, going beyond financials to think about your happiness, and much more.

These topics are explained with the help of specialists in each subject. And everything is based on the “science of investing” – evidenced with studies from peer-reviewed journals.

Overall, this adds up to a complete retirement guide, packed with the latest and best knowledge. Don’t enter your retirement without it."
https://www.goodreads.com/book/show/42925681-your-complete-guide-to-a-successful-secure-retirement 

Risk Less and Prosper: Your Guide to Safer Investing

During the market volatility brought on by the Coronavirus is a great time to read this classic book by Zvi Bodie and Rachelle Taqqu (2011).

A practical guide to getting personal investing right "Somewhere along the way, something has gone very wrong with the way individuals save and invest. Too often, households are drawn in by promotional suggestions masquerading as impartial investment advice. Consumers get saddled with more risk than they realize. Authors Zvi Bodie and Rachelle Taqqu understand the dilemma that today's investors face, and with Risk Less and Prosper they will help you find your financial footing.
Written in an accessible style, this practical guide skillfully explains why personal investing is all about you―your goals, your values and your career path. It shows how to understand investment risk and choose the particular blend of risk and safety that is right for you. And it lays out several simple yet powerful ways for small investors to cast a reliable safety net to achieve their financial goals and truly prosper. Coauthors Bodie and Taqqu challenge the myth that all investments require risk, then highlight some important risks that families often disregard when deciding where to put their money. Later, they connect the dots between investment and investor, showing us all how to grasp our own investment risk profiles and how we may use these insights to make more fitting investment choices.

• Outlines a straightforward way to invest by aligning your investments with your goals and the risk levels you can bear
• Provides basic investment abc's for readers who are otherwise literate
• Lays out a simple, actionable plan for achieving your goals
• Explains the role of risk-free assets and investment insurance in assuring that you reach your most essential goals

Contrary to popular belief, investing doesn't have to be complicated. You can build wealth without taking great risks. Risk Less and Prosper will show you how to make investment decisions that will make your financial life less stressful and more profitable." (Amazon.com)

The Little Book of Behavioral Investing: How Not to Be Your Own Worst Enemy

I haven't read this yet but it seems like a very timely title and approach during these times of drmatic financial market volatility.
According to the Good reads website the book is :

"A detailed guide to overcoming the most frequently encountered psychological pitfalls of investing Bias, emotion, and overconfidence are just three of the many behavioral traits that can lead investors to lose money or achieve lower returns. Behavioral finance, which recognizes that there is a psychological element to all investor decision-making, can help you overcome this obstacle."

"In The Little Book of Behavioral Investing, expert James Montier takes you through some of the most important behavioral challenges faced by investors. Montier reveals the most common psychological barriers, clearly showing how emotion, overconfidence, and a multitude of other behavioral traits, can affect investment decision-making."
https://www.goodreads.com/book/show/6922765-the-little-book-of-behavioral-investing

How much of your college scholarship is taxable?

Wait! What? My scholarship money is taxable?
Many students have no idea that their scholarships might be taxable.
Due to the coronavirus the income tax deadline has been extended to July 15, 2020.
Payments and interest on federal student loans for 6 months of relief....

So, about those scholarships and possible taxation.
Any aid used for living, travel and other expenses is taxable income.  The Tax Reform Act of 1986 made aid used for living (housing, food) and travel expenses taxable. Financial aid use to buy textbooks and college supplies remains free of taxation.

Calculating the amount of tax owed is confusing. Students receive a 1098-T tuition statement which shows how much a student received in total financial aid and how much they paid in tuition and fees. Check the annual IRS tax guide and guide to tax benefits for education to find out how much tax you might owe. Be informed and prepared so you aren't blind-sided by a tax bill.

See: "Reporting Scholarships and Fellowship Grants" on p. 6 of the IRS 2019 guide to tax benefits for education.

A variety of organizations have been working to restore tax-free status to financial aid used for living and travel expenses.

I remember the good old days where I earned a B.S., M.S. and Ph.D. without taking out any student loans. I was lucky to have a New York State Regent's Scholarship to pay undergrad tuition, a job as a resident assistant my junior and senior years which paid room junior year and room and board senior year. With some help from my parents and summer jobs I was able to pay for the rest of my expenses. Of course this was back when the minimum wage was wroth far more than today and before the strong anti-tax movements of the Reagan years when citizens understood the value they received for paying taxes. Of course, like most students, I didn't own a car so escaped that expense. I saved enough while earning my master's degree to be able to travel in Europe during the summers. I used to wait until the last day to pay (in person) my quarterly doctoral program tuition with my credit card. Payment wasn't due until the quarter was nearly finished so I kept earning interest on my savings, back when savings accounts paid real interest.

Protect yourself from growing credit card fraud

"Even if you’re careful, your credit card information will probably be stolen at some point. And we’re mostly on our own to protect ourselves" explains Shira Ovid, writing for The New York Times On Tech newsletter.

What you need to do: 

Sign up for email or phone alerts for each transaction.

Limit or eliminate the websites where you save card information. Instead use PayPal, Apple Pay, Google Pay or similar options that generate a temporary account number for each transaction.

Be paranoid: "Every link in an email or a too-good-to-be-true deal on an unfamiliar website could be trying to trick you to harvest credit card details or other personal information."

Report the fraudulent charge: "Tell both your credit card company and the merchant where the bogus charge was made to prevent the thief from running more stolen credit cards."

https://www.nytimes.com/2020/06/08/technology/how-to-reduce-credit-card-fraud.html?campaign_id=12&emc=edit_my_20200615&instance_id=19407&nl=your-money&regi_id=83720664&segment_id=30960&te=1&user_id=bde4c6c63beab087f13b761e1ee9fe1e

The "Perfect Storm of Stupid" and other Coronavirus stock market theories

Why has the stock market gone up dramatically (after initial plunge) during a pandemic?
Some ideas... courtesy of Planet Money

The “Perfect Storm of Stupid” Theory

Basically, Americans are super bored. They’re at home. Sports are canceled. The kids are screaming. The casinos are closed. And around 800,000 additional people have decided to plop down money on the biggest roulette table of them all: the stock market. Bloomberg columnist Matt Levine calls it “the boredom markets hypothesis.” Business Insider columnist Linette Lopez calls it “the perfect storm of stupid.” Shiller didn’t shoot this theory down. “This is just speculation," Shiller says, "but it seems like people want to do something.”

Some other theories:

The Corporate-America-Is-Immune-From-Pain Theory

"The stock market represents only a fraction of the economy: publicly traded corporations. While restaurants, mom-and-pop shops, and other small businesses have clearly been hammered, the majority of them are not listed on the stock market."

The Fed Theory

"This theory says the Fed is using its unlimited money-printing machine to single-handedly prop up the stock market."

The FOMO Theory

The fear of missing out is a prominent motivator for investors

The TINA Theory 

Then there is the “There Is No Alternative” theory, aka TINA. It basically says that with interest rates so low, stocks are the only money-making game in town. 

The Efficient Market Theory

"It paints the stock market as a supermachine for information processing, where knowledge about the happenings of the world are all aggregated by brainiac investors, who rationally buy and sell stocks based on the best information of their future performance. The theory basically says stock prices are always right. Under this theory, the rally of the stock market over the last few months reflected rational investors seeing signs that the pandemic wouldn’t be too bad and that the recovery was going to be really good."

Source: https://www.npr.org/sections/money/2020/06/16/877410547/what-is-the-stock-market-trying-to-tell-us?utm_source=npr_newsletter&utm_medium=email&utm_content=20200616&utm_term=4623696&utm_campaign=money&utm_id=44131415&orgid=
 

7 Podcasts to help you survive the Coronavirus financial crisis (and beyond)

"These seven shows will help you weather the financial storm with your sanity intact, and keep your bottom line in good shape long into the future" writes Emma Dibdin for The New York Times, May 29, 2020. 


Gaby Dunn, the very funny, very relatable host of “Bad With Money,” who spent many years in a financial hole and now shares wry advice on how to turn things around.
https://podcasts.apple.com/us/podcast/bad-with-money-with-gaby-dunn/id1144712710

Lillian Karabaic, tailors her friendly, useful advice to artists, freelancers and small-business owners in "Oh My Dollar!"  https://www.ohmydollar.com/podcast/

"Death, Sex, and Money" "This engrossing interview series from WNYC Studios prides itself on speaking the unspeakable, digging into “the things we think about a lot, and need to talk about more.” https://www.wnycstudios.org/podcasts/deathsexmoney/episodes
Starter episode: “A Former Debt Collector’s Unpaid Bills” 

For years, NPR’s trusty “Planet Money” has been explaining the economy through engaging stories about people, places and trends.  https://www.npr.org/sections/money/

‘So Money With Farnoosh Torabi’ One of the oldest and most respected personal finance shows out there, this thrice-weekly podcast is a one-stop shop to find the answer to just about any money question. https://podcast.farnoosh.tv/

“She Makes Money Moves” focuses on first-person stories from women in disparate regions and walks of life. Hosted by Glamour’s editor in chief, Samantha Barry, the show tackles subjects like budgeting as a single mother and the challenges facing female business owners.  https://podcasts.apple.com/ca/podcast/she-makes-money-moves/id1474398837

Starter episode: “I Love My Life — But I Can’t Afford It”:"Afford Anything" If the idea of following a line-item budget makes you wince, Paula Pant’s approach is worth exploring.  https://affordanything.com/podcast/
 

Zero-interest credit card offers are scarce

With the increase in unemployment due to the coronavirus, credit card issuers are cutting back on no-interest card offers. If you are looking for a way to transfer credit card debt to another card at zero or low interest (and are eligible), you need to consider the transfer fee. Most offers charge a fee of 3-5% of the balance being transferred.
Example: if you owe $5,000 and expect to repay it over 21 months at 16%, you'll need to pay $274/month and will pay about $765 interest.
If you transfer the debt to a 0% card that charges a 5% fee with 21 months of 0% interest, you'll pay $250 to move the debt and save $515. That's if all goes well (stay employed and have no emergencies) and you don't run up more charges on either card.
Also consider: does the new card charge an annual fee? Does the 0% apply to new charges or only to the amount transferred? what happens if you miss a payment? Does the 0% skyrocket?

College Debt Resources

About 45 million Americans owe more than $1.6 trillion in student loan debts. Let those numbers sink in a moment...
And there are plenty of too-good-to-be-true offers to help out.
Where can you go for reliable help?

Federal Resources
Office of Federal Student Aid (for federal student loans) https://studentaid.gov/
provides free info on managing loans and programs like the Public Service Loan Forgiveness and income driven repayment plans. Check out their Student Loan Simulator https://studentaid.gov/loan-simulator/ to help locate the best repayment plan for individuals.

Low cost/Free resources
Forgive My Student Debt http://www.forgivemystudentdebt.org/
Higher Ed not Debt https://higherednotdebt.org/ 
National Consumer Law Center's Student Loan Borrower Assistance Project https://www.studentloanborrowerassistance.org/
National Foundation for Credit Counseling https://www.nfcc.org/
Financial Counseling Association of America https://fcaa.org/
The Institute of Student Loan Advisors (TISLA) https://freestudentloanadvice.org/

The last 3 organizations on the list can help with a variety of credit difficulties. 

Keep track of your pension!

Regardless of the state of the investment markets, it's wise to keep track of your pension (if you are lucky enough to have one). Many states are far behind in funding state pensions and corporate pensions may be at risk during this severe recession and corporate bankruptcies.
More than 100 multi-employer pension plans covering 1.4 million participants are underfunded by $56.5 billion and could fail in the next 20 years. (Thanks to WSJ Ask Encore columnist Glenn Ruffenach, 6/8/20). Sobering!
Read your "Annual Funding Notice" to asses the status of your pension. As of May 2020 Trump's Labor Department has ruled that your pension administrator no longer has to mail you a copy (as previously required). The info will be online, placing the responsibility on you.

You could also read and monitor your plan's Form 5500 which is available online at the Employee Benefits Security Administration: Go to: https://www.dol.gov/agencies/ebsa
Under Quick Links, click on: Filing Searches
How to interpret what you find...
The Pension Rights Center http://www.pensionrights.org/
Read: "Tips for keeping Track of your Pension"
"Pension Funding Notices" and "How well-funded is your pension plan?"
Good luck and keep monitoring the status of your future.

9 Critical tax tips for Self-employed

Laura Saunders write the Tax Report for The Wall Street Journal and shares these 9 tips for freelance, gig, online sellers, consultants, independent contractors and other workers who don't have an employer.
1. Track your income. Even if you are paid by someone else, they may not send you the appropriate 1099 forms. It's your responsibility to track and report your income.
2. Pay your Social Security and Medicare Taxes. You need to pay 12.4% of your income up to $132,900 (this amount increases each year). Medicare tax is 2.9% of all income.
3. Check estimated taxes. Self-employed typically owe quarterly taxes if total income is $1,000 or more; you can't wait until the tax is due or you will be penalized. If you also have a wage job you can increase your withholding on wages to avoid having to pay estimated quarterly taxes.
4. Keep good records. Be especially careful with mixed-use assets such as a vehicle which is used for both work and personal travel. Commuting is NOT a deductible expense.
5. Review deductions. Learn what business expenses are deductible and keep detailed records to support deductions.
6. Look at depreciation. Some business expenses such as computers and other equipment can be depreciated and deducted over a time span.
7. Arrange health insurance. Self-employed can deduct health insurance costs on line 29 of Schedule 1 of the 1040 form. Consdier setting up a health savings account (HSA).
8. Check eligibility for the new 199A tax break. 2017 tax bill added a 20% deduction of net income but limits it to taxable income of $160,700 for singles and $321,400 for couples filing jointly.
9. Be aware of retirement plan deadlines. Self-employed can invest up to $50,000 in a SEP-IRA or Solo 401(k). But pay attention to deadlines.

Choosing a college: Tops in prestige doesn't always lead to top salaries

"The value of a college degree has traditionally been pegged to the prestige of the college itself. But new research suggests that choosing the right program of study can matter more than a prestigious diploma when it comes to good starting salaries..." writes Lisa Ward for The Wall Street Journal, 5/27/20.
According to Anthony Carnevale, director of the Georgetown University Center on Education and and Workforce, focus on a specific program at a particular university, NOT on the schools prestige. Depending on the program, students at less well known colleges with specific majors can out earn graduates of prestigious universities.

Examples:
Median earnings for all schools: English majors: $26,600
Columbia University English grads: $41,500
Monmouth College English grads: $42,400
Cal State Fresno:  $13,400
Median earnings for all schools: Civil Engineering majors: $58,200
Stevens Institute of Technology: $72,700
Virginia Military Institute: $40,400

Main points:
Specific programs matter more than the institution. 
Subject area can matter more than a school's reputation when it comes to earnings.
Lesser degrees and certificates can be rewarding, depending on the field. 

• In certain fields, it's not uncommon for associate degree graduates and vocational certificates earn higher starting salaries than bachelor's degree holders.  Nursing is one example.

Jump-Start your Emergency Savings

If you are lucky enough to still be employed now is a great time to begin or boost your emergency fund, especially since there are fewer temptations to spend in this time of coronavirus.
Recently The Wall Street Journal published "35 ways to jump-start your emergency savings." among the suggestions:
If you are paid bi-weekly you get an extra paycheck two months of the year; put that into savings.
Sweatpants tax: when work life returns to normal; charge yourself a sweatpants tax each time you wear those comfy clothes. Put the "tax" into savings. Consistent with commitment strategy of https://www.stickk.com/
Use https://missingmoney.com/en/ to search for unclaimed property or refunds from state treasurers. I found modest sums belonging to my elderly parents and was able to claim the money for them.
Get a credit card that offers points that can be converted to cash and then deposit into savings. I get cash back on two credit cards which reduces the amount I owe: I can put the same amount into savings.
Set up an auto-transfer into savings with a built-in escalator to increase by $ or %.
When you splurge on a purchase put the equivalent amount into savings.
If you have high deductible health insurance with a Health Savings Account, build up the HSA.
Use a round-up app linked to your credit or debit card that rounds up purchases to the next dollar, like Digit https://digit.co/ or Acorns https://www.acorns.com
Increase your income tax withholding and save your refund... But only if you are committed. on the flip side, if you always overpay your taxes, adjust your withholding and set up an automatic deposit to savings of your monthly decrease in withholding.
Assuming you are eating out less, review your credit/debit bills from before the "Stay at home" period and save part of the amount you usually spent on restaurants each month.
Pick one expense each month and cut it from your spending; add to savings.
If you are lucky enough to get a raise; commit the extra monthly amount to savings.
Join "no spend" challenges on social media; benefit from the social support.
Sell something once a month (KSL.com, Craigslist, etc.) and put the amount into savings.
Have your paycheck deposited to saving; transfer the amount needed for expenditures into checking and leave the rest to grow in an online savings account.
If going to work... (not working from home) bring your lunch 2-3 times per week and save the amount you would have spent.
Consider yourself lucky if you are still employed at full salary and commit to sharing some of your fortune with the less fortunate.

What's happening in the stock market during coronavirus?

    THROUGH THE END OF MAY - The S&P 500 is down 5.0% YTD (total return) through 5/29/20. Just 121 stocks in the index are up YTD. The S&P 500 consists of 500 stocks chosen for market size, liquidity and industry group representation. It is a market value weighted index with each stock's weight in the index proportionate to its market value (source: BTN Research).  

TRILLIONS - From its 2/19/20 stock market high, US stocks lost $12.7 trillion in market capitalization through the stock market low close on 3/23/20. From its 3/23/20 low point, US stocks have gained $8.8 trillion in market capitalization through the close of trading last Friday 5/29/20 (source: Wilshire).   Source: David Swapp, CFP® 801-566-6639 | david@networthadvice.com Bottom line: DON"T try to time the market. Decide on your long term goals and tolerance for variability and stick with your chosen asset allocation.