Financial Planning for Women

More Middle-Income Borrowers Seek Debt Help

2012-01-31T14:43:00.000-07:00

Debt counselors report more demand from middle-income consumers.
“The average income for consumers seeking debt-management plans is rising, according to Credability, an Atlanta-based nonprofit. Clients entering such plans had average income of $54,000 last year, up from $43,000 in 2007, the group said. High unemployment and the struggling housing market are likely driving the shift, said Mark Cole, executive vice president at Credability.” by Ann Carrns for The New York Times
http://bucks.blogs.nytimes.com/2012/01/30/more-middle-income-borrowers-seek-debt-help/
The Housing and Financial Counseling Service at the USU Family Life Center (493 North 700 East in Logan) provides very low cost financial counseling and educational workshops. For appointment call 435-797-7224. Check out their website which includes helpful worksheets, and their workshop schedule: http://www.usu.edu/fchd/housing/

Earned Income Tax Credit

2012-01-27T09:31:00.000-07:00

The Earned Income Tax Credit, (EITC), can be a financial boost for workers affected by hard economic times. However, 1 in 4 eligible taxpayers could miss out on the credit because they don’t check it out. Here are the top 10 things the IRS wants you to know about this valuable credit, which has been making the lives of working people a little easier for 35 years.
1. Just because you didn’t qualify last year, doesn’t mean you won’t this year.
2. If you qualify, it could be worth up to $5,657 this year. EITC not only reduces the federal tax you owe, but could result in a refund.
3. If you qualify, you must file a federal income tax return and specifically claim the credit in order to get it – even if you are not otherwise required to file.
4. Your filing status cannot be Married Filing Separately.
5. You must have a valid Social Security Number
6. You must have earned income.
7. Married couples and single people without kids may qualify.
8. Special rules apply to members of the U.S. Armed Forces in combat zones.
9. It’s easy to determine whether you qualify. The EITC Assistant, an interactive tool available on IRS.gov, removes the guesswork from eligibility rules. Just answer a few simple questions to find out if you qualify and estimate the amount of your EITC.
10. Free help is available at volunteer assistance sites and IRS Taxpayer Assistance Centers to help you prepare and claim your EITC. If you are preparing your taxes electronically, the software program you use will figure the credit for you.
Check it out: http://www.irs.gov/individuals/article/0,,id=96406,00.html

Secrets of Settling Credit Card Debt

2012-01-25T12:01:00.000-07:00

5 steps to settle your debt for less than you owe
by Martha C. White, Time/Moneyland, 1/23/12
“Maybe you’ve seen ads that promise to negotiate on your behalf with credit card companies and collection agencies to shrink your debts. It might sound too good to be true, but the truth is that it sometimes is possible to convince your creditors to settle for less than what you owe. And if it can be done, you can probably do it yourself. Here’s what you need to know about the process.” I will be using this information the next time I teach my Consumer Credit Problems class!
1. Try to settle before an account goes into collections
2. Build your case
3. Grow a thick skin
4. Start haggling
5. Before You Pay, Get the Agreement in Writing
Read the details at:
http://moneyland.time.com/2012/01/24/6-steps-to-settling-your-debts-for-less-than-you-owe/#the-secrets-of-settling-credit-card-debt

3 Keys to Successful Savings Webinar

2012-01-25T08:59:00.001-07:00

Celebrate America Saves Week - February 19 – 26, 2012
“Set a Goal. Make a Plan. Save Automatically.”
Topics include:
Setting SMART financial goals
Making a savings plan
Finding money to save
Choosing the right accounts to match your goals
Wednesday, February 22 - 10:30 to 11:30 pm MST
Presented by University of Florida Extension
Register at http://bit.ly/Savemoney
Click on the bit.ly link and enter your info in the registration form. You will receive a response and a reminder via email.

SSA Benefit Estimate Statements

2012-01-24T15:33:00.000-07:00

“The Social Security Administration is reversing a cost-savings move and will once again mail benefits statements to people 60 and older who don't yet receive Social Security. Also included in the mailings will be 25-year-old employees, who will get an introductory statement explaining their benefits. Others soon will be able to access their benefits information online, but people who don't have Web access can request paper copies.” “Reducing the number of statements sent out is expected to trim the estimated $70 million annual bill to about $3.7 million.” “Since the 1980s, Social Security statements have been mailed each year to workers older than 25. They include a history of taxable earnings for each year — so people can check for mistakes — as well as the total amount of Social Security and Medicare taxes paid over the lifetime of the worker. The statements provide estimates of monthly benefits, based on current earnings and when a worker plans to retire.” Sources: Retirement Security SmartBrief rssb@smartbrief.com and the Minneapolis Star Tribune

10 Reasons You Really Need a Will

2012-01-24T15:03:00.000-07:00

1. Everybody dies!
2. Because you care about the people you love
3. Without a will the state decides what becomes of (some of) your assets
4. If both parents die a court will decide guardianship of children
5. Covering your assets
6. Because you don’t want to do it on your deathbed (if that’s even an option)
7. Women live longer than men (and will have to deal with the consequences)
8. You’ll save yourself and loved ones time and money
9. The only constant is change
10. Because it’s easier than ever to create a will (see Nolo.com website)
Thanks to Liz Nutt! For details & motivation: http://www.insurancequotes.org/10-reasons-you-really-need-a-will/

The College-Aid Shuffle

2012-01-21T14:38:00.000-07:00

Just be glad your child is not going to Sarah Lawrence College to the tune of $59,170... per year! The January 21-22, 2012 Wall Street Journal has a great article on ways to obtain more financial aid for your college-bound kids. Examples include postponing income, accelerating tax deductions and "moving assets from one account to another." The strategies work best if you have a couple years before junior or juniorette heads to campus. "But even families with incoming freshman can make moves to maximize their aid and scholarship packages." Best of all the article emphasizes the importance of placing your retirement security first. It's a mistake to not apply for financial aid assuming you won't qualify. Fill out the Free Application for Federal Student Aid (FAFSA)! "If your child is attending a private college, families also must fill out the College Board's CSS/Financial Aid Profile, which schools use to determine how to distribute their own aid funds." The article contains multiple suggestions for maximizing financial aid.
If it's too late to pick up today's WSJ go to www.wsj.com and search for "College-Aid Shuffle." You may need to subscribe to have access to the full article. Or check to see if your library carries the WSJ.

How to Talk to Your Parents About Their Money

2012-01-21T14:22:00.000-07:00

"Many adult children are taking a greater role in their aging parents' financial lives, a natural outgrowth of increased longevity as well as rising rates of dementia and Alzheimer's disease in the senior population. Yet getting involved in their parents' financial affairs isn't always easy or natural for children, and some miss the signs that their parents need a helping hand to help them navigate their money matters." Luckily my parents made it easy for me in 2002 when I stepped in to take over their finances. My father lived to 91 and my mom will be 87 shortly. Because of my experience in teaching personal finance and their encouragement to help, It was easy or me to step up to the challenge. But most adult children need help with the task. Enter Wall Street Journal writer Jeff Opdyke, Wall Street Journal reporter Jeff Opdyke. "His latest book, Protecting Your Parents' Money: The Essential Guide to Helping Mom and Dad Navigate the Finances of Retirement is essential reading for adult children who would like to make sure their parents have the highest quality of life they can possibly have during retirement without outliving their nest eggs. The book also includes tips for understanding Medicare, identifying and warding against financial fraud, and selecting nursing homes and retirement communities." Besides being the right thing to do as mental abilities decline with age even for he most astute seniors, it's essential to protect your own future financial security. don't wait until Mom & Dad run out of money or are victims of financial fraud. More details at: http://news.morningstar.com/articlenet/article.aspx?id=532951&SR=COM807&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Morningstar-Articles+%28Investing+Articles+|+Morningstar.com%29

How Much Do You Know About Health Reform?

2012-01-18T12:50:00.001-07:00

All the presidential candidates have an opinion but there are many misconceptions and much misinformation about the Affordable Care Act—the health reform legislation passed by Congress and signed into law by President Barack Obama. Separate fact from fiction with this quiz:
http://www.americanprogress.org/issues/2012/01/aca_quiz.html
Learn more with this short video:
http://www.americanprogress.org/issues/2012/01/aca_success_video.html

Mortgage Foreclosure Review

2012-01-18T11:45:00.000-07:00

Did you lose your house to foreclosure in 2009 or 2010? If so, the U.S. Office of the Comptroller of the Currency says you may be eligible for a free independent review of your case. Independent foreclosure reviews let borrowers who faced foreclosure on their primary residences between January 1, 2009 and December 31, 2010 request reviews of their cases if they believe they suffered financial injury as a result of errors in the foreclosure processes of these servicers: America’s Servicing Company, Aurora Loan Services, Bank of America, Beneficial, Chase, Citibank, CitiFinancial, Citi Mortgage, Country-Wide, EMC, EverBank/Everhome, Freedom Financial, GMAC Mortgage, HFC, HSBC, IndyMac Mortgage Services, MetLife Bank, National City, PNC Mortgage, Sovereign Bank, Sun-Trust Mortgage, U.S. Bank, Wachovia, Washington Mutual, and Wells Fargo. Visit http://www.occ.treas.gov/news-issuances/news-releases/2012/nr-occ-2012-1.html for additional information.

Credit card debt: How do you compare?

2012-01-17T17:05:00.000-07:00

"Consumers reduced credit card debt by 11 percent last year, and average debt loads dropped in every state, CNNMoney.com reported today. The average credit card balance for 2011 was $6,576, down from $7,404 the previous year, according to a report from credit tracking and financial education website CreditKarma.com, based on data from more than 300,000 of its users. The state that racked up the most credit card debt was Alaska, where consumers had an average debt load of $7,937. Alaska was followed by New Hampshire and Connecticut...." According to the report Utah credit card debt averaged $5,816. BUT the report doesn't say how the numbers were derived. I guess the averages include people who pay their balance in full every month. The # may also include small businesses that run all their expenses through a credit card. Some of the debt reduction is likely due to defaults, not just paying down debt. Read more details at: http://money.cnn.com/2012/01/17/pf/credit_card_debt/index.htm

Credit Score of 760 is "good enough" say experts

2012-01-17T14:54:00.000-07:00

"Once consumers hit lenders' threshold for a good credit score, usually in the mid- to upper 700s, they will see no appreciable financial reward from boosting their score further, some experts say. For example, borrowers won't get a better rate if their score is 820 instead of 780, says Ken Lin, CEO of Credit Karma." "If you're at 780 plus, it's all bragging rights from there," according to Lin (www.creditkarma.com). Efforts to boost your score above 760 yield few benefits beyond 'bragging rights.' Read the details at:
http://www.investmentnews.com/article/20120113/FREE/120119963

Health Care Reform

2012-01-11T17:20:00.000-07:00

As the presidential campaign heats up you'll hear lots of rhetoric about "Obamacare." Learn what's really included in the health care reform act. Listen to a review of an adult comic book to help you understand what the law means for you and your family. If you have a young adult child you may already know you can keep the child on your health insurance up to age 26 which can be a real life saver (literally).
Check this out: http://www.npr.org/blogs/health/2012/01/10/144977971/to-understand-health-overhaul-try-a-comic-book
Health Care Reform: What It Is, Why It's Necessary, How It Works
Jonathan Gruber with HP Newquist; Illustrated by Nathan Schreiber
Hill and Wang, December 2011
Available online from lots of sources and maybe even from a local bookshop.

Social Media and Investing -- Avoiding Fraud

2012-01-10T21:20:00.000-07:00

"The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to help investors be better aware of fraudulent investment schemes that may involve social media. U.S. retail investors are increasingly turning to social media, including Facebook, YouTube, Twitter, LinkedIn and other online networks for information about investing. Whether it be for research on particular stocks, background information on a broker-dealer or investment adviser, guidance on an overall investing strategy, up-to-date news, or to simply discuss the markets with others, social media has become a key tool for U.S. investors.
While social media can provide many benefits for investors, it also presents opportunities for fraudsters. Social media, and the Internet generally, offer a number of attributes criminals may find attractive. Social media lets fraudsters contact many different people at a relatively low cost. It is also easy to create a site, account, email, direct message, or webpage that looks and feels legitimate – and that feeling of legitimacy gives criminals a better chance to convince you to send them your money. Finally, it can be difficult to track down the true account holders that use social media. That potential for anonymity can make it harder for fraudsters to be held accountable. As a result, investors need to use caution when using social media when considering an investment." Details at: http://investor.gov/news-alerts/investor-alerts/investor-alert-social-media-investing-avoiding-fraud

What Kids Should Know About Money and When

2012-01-10T11:59:00.000-07:00

Money Milestones by Dan Kadlec
• Ages 3-5 A child should come to understand that you need money to buy things; you earn money by working; you may have to wait before you can buy what you want; there’s a difference between what you want and what you need.
• Ages 6-10 understand that you must make choices about how to spend your money; you should shop around for the best deal; it is dangerous and costly to share too much information online; putting your money in a bank account will protect it and earn interest.
• Ages 11-13 understand that it is smart to save 10% of what you earn; entering credit card or Social Security numbers online puts you at risk of identity theft; the earlier you save the more you’ll have in the long run; a credit card is a loan and you will owe more than you spent if you do not pay your bill in full each month.
• Ages 14-18 understand that college is expensive and you should choose a school and student loans based in part on your career expectations; you should avoid using credit cards for things you cannot afford in cash; you pay taxes on your income and should budget for take-home pay, not gross pay; a great place to save and invest is a Roth IRA.
Quoted from & Read more: http://moneyland.time.com/2012/01/09/money-milestones-what-kids-should-know-about-money-and-when/#ixzz1j5Dic0kw

Mortgage refinancing

2012-01-07T15:28:00.000-07:00

Mortgage rates are at rock bottom right now so it's a good time to consider refinancing your mortgage. Kiplinger's magazine (Feb. 2012, p. 45) recommends: use the calculator at http://zwicke.nber.org/refinance to determine the optimal refi rate for your situation. Then sign up at www.mortgagemarvel.com to receive email updates as lenders offer rates that meet your needs. If you want lenders to contact you, sign up at www.lendingtree.com

Save Big by Losing Pounds

2012-01-06T09:19:00.000-07:00

That resolution to get fit may also boost your bank account.
“Gym memberships and healthy food, both part of many people's New Year's goals for losing weight, can be expensive. But experts say the savings from being fit outweighs the added costs. Some life insurance companies reduce premiums for people in a healthy weight range. In addition, overall medical costs typically are lower for people who are fit, and some health insurance providers offer financial incentives for participants who meet wellness targets.”
Cheaper life insurance
Lower health-care costs
Better health insurance
Wellness incentives from employers and insurers
Read the details at: Smart Money
http://www.smartmoney.com/spend/deal-of-the-day/save-big-by-losing-pounds-1325716783715/
For more ideas on boosting your financial status in 2012 come to Financial Planning for Women on January 11 for the Small Steps to Health and Wealth program. Check out: njaes.rutgers.edu/sshw/

5 Things Every Woman Should Do to Become More Financially Secure

2012-01-04T13:58:00.000-07:00

“To gain greater security in retirement, women should communicate with their spouses early and make sure they save for their own needs before assisting children, experts say. Other tips include creating a plan to deal with health care expenses, which typically are higher for women than for men, and considering delaying Social Security benefits.”
Read the details from Mark Miller at Morningstar: http://www.businessinsider.com/5-ways-for-women-to-achieve-economic-security-2012-1
To learn more attend Financial Planning for Women on Wednesday, January 11 at 12:30 in TSC 336 or at 7 pm at the USU Family Life Center. Topic: Small Steps to Health & Wealth

Credit Report Maintenance

2011-12-27T13:34:00.000-07:00

View your credit report, add a 90 day fraud alert to protect against ID theft, and opt out of credit card offers: https://www.experian.com/fraud/center.html
I recommend putting a fraud alert on your credit report as a preventive measure against identity theft. The fraud alert needs to be renewed every 90 days. It's a good prevention strategy if you don't anticipate applying for credit in the next 3 months. This is an especially good strategy to help your aging parents protect themselves from ID theft.
“You can add a fraud alert message to your credit report to help protect your credit information. Fraud alert messages notify potential credit grantors to verify your identification before extending credit in your name in case someone is using your information without your consent. We recommend that you review a copy of your personal credit report.” (Experian website)
To save paper and trees as well as protect against ID theft, opt out of mailed credit card offers: https://www.optoutprescreen.com/?rf=t

Make Money, Not Excuses

2011-12-20T15:25:00.000-07:00

A colleague recommended Jean Chatzky’s book Make Money, Not Excuses. “If you want to get rich, you need only do four things:
1. Make a decent living
2. Spend less than you make
3. Invest the money you don’t spend
4. Protect the financial world you build so that a disaster doesn’t take it all away from you
Sounds easy, I know. So why, then, is it so hard, particularly for women?” Do yourself a favor and add Jean Chatzky to your reading list for 2012. If your local library doesn’t have Chatzky’s books, request that they order them. http://www.jeanchatzky.com/books/make-money-not-excuses/
Check out her blog at: http://www.jeanchatzky.com/
The blog post on “financial infidelity” sounds intriguing!

Weathering Tough Economic Times—12 Tips for 2012

2011-12-20T15:18:00.000-07:00

"Tough economic times have taken a toll on many Americans over the last couple of years. But making sound financial decisions and saving for the future can help you weather financial storms. The start of a new year is a great time to take stock of your finances, so the FINRA Investor Education Foundation has put together these 12 practical tips that can help keep your finances on course in 2012."
1. Start a Rainy Day Fund
2. Handle Credit Cards With Care.
3. Check Your Credit Report and Score
4. Shop Around For Financial Products.
5. Don’t Leave Money on the Table: Contribute to Your 401(k).
6. Avoid Payday Loans and Other Money Drains.
7. Don’t Overdraw Your Checking Account or Debit Card.
8. Do a Background Check on Your Financial Professional.
9. Keep Your Insurance Coverage Current.
10. Diversify Your Investments.
11. Save for College Using Tax-Advantaged Accounts
12. Find Free, Reliable Financial Education Resources in Your Community: like Financial Planning for Women! (my addition)
For details and links to helpful websites: http://www.finra.org/Investors/ProtectYourself/InvestorAlerts/MoneyManagement/P125281

Future of Health Insurance?

2011-12-07T12:54:00.000-07:00

“Companies will seek to protect themselves from unexpected high medical costs by shifting workers toward health plans that involve defined contributions instead of defined benefits, similar to the shift that has happened with retirement benefits, writes Peter Orszag, a former Office of Management and Budget director.” “Over the next decade, we are likely to see a shift in health insurance in the U.S.: So-called defined-contribution plans will gradually take over the market, shifting the residual risk of incurring high health-care costs from employers to workers.” “The market today is dominated by ‘defined-benefit’ plans, under which companies determine a set of health-insurance benefits that are provided for employees. These will gradually be replaced by defined-contribution plans, under which companies pay a fixed amount, and employees use the money to buy or help pay for insurance they choose themselves.” We are moving faster to a YOYO (you’re on your own) economy. Details in Bloomsburg Businessweek http://www.businessweek.com/news/2011-12-07/defined-contributions-define-health-care-future-peter-orszag.html

Best 5 Ways for Women to Achieve Retirement Security

2011-12-06T16:39:00.000-07:00

Best 5 Ways for Women to Achieve Retirement Security
Longevity plus health care costs equals worry for women
1. Communicate and Plan
2. Have a Smart Social Security Plan
3. You First, Kids Second
4. Plan for Health Care Expenses
5. Consider Hiring a Financial Planner
Read more: http://www.advisorone.com/2011/12/01/best-5-ways-for-women-to-achieve-retirement-securi?utm_source=dailywire120211&utm_medium=enewsletter&utm_campaign=dailywire

No ‘New Normal’ Economy

2011-12-06T16:36:00.000-07:00

“Are the latest swings in the economic and financial headlines making you wonder when it will ever stop?” financial writer Jason Zweig asks.
“The short answer is: It will never stop. And what’s been happening isn’t “the new normal”; it’s just the old normal playing out before a new audience.” So get used to the volatility, save and invest more and hold a diversified portfolio. Maybe this article will help put the violent swings in the economy in perspective... or maybe not. But one must admit that the first decade of the 21st century has been a real test of investors' risk tolerance. Jason Zeweig is one of my favorite financial writers. Read more at: http://www.advisorone.com/2011/12/06/jason-zweig-there-is-no-new-normal-economy

Give a child a college savings account

2011-12-04T20:09:00.000-07:00

This holiday season give a child you love a gift that they will remember for a long time- establish a college savings account. The accounts offer tax savings and are an excellent way to save for college. There is no minimum contribution so no excuses. Skip the gift cards and toys imported from China. Check out the website of the Utah Educational Savings Plan at http://www.uesp.org

Ruminations on Gift Cards

2011-12-04T20:01:00.000-07:00

After reading numerous articles about the pitfalls of gift cards and the estimated $1.9 billion (yes, that’s a b) that is never redeemed, I can't help but wonder why people don't just give cash (or checks). It is critical to teach children to save and you'll teach them the exact opposite message by giving a gift card. With cash (or equivalent) parents can encourage their children to save some and even set some money aside for donations. One lament I hear from women is how they wish their children would learn better financial behaviors. Think about what lessons you are teaching your children this holiday season (and I don’t mean just about gift cards). Secondly, in today's economy many adults need money to pay the rent, mortgage, or utility bill, although it may not be obvious and they may be trying to hide their situation. I guess I'm conservative and old fashioned but I view gift cards as simply a very effective marketing strategy to encourage Americans to spend more than is prudent.

Beware of fake IRS emails

2011-12-03T17:37:00.000-07:00

My husband received the following email which directed him to click on an attachment. The IRS will NEVER contact you by email. Obviously something nasty was in the attachment. Don't be a victim.
Dear Taxpayer!
You are encouraged to pay a penalty for the failure to file income tax returns prior to January 31, 2011.
Note, IRC [Section 6038(b)(1)] provides for a monetary penalty of $10,000 for each [Form 5471] that is filed after the due date of the income tax return or does not include the complete and accurate information described in [Section 6038(a)].
No penalty will be imposed if the company shows that the late filing was due to reasonable cause.
For more information please refer to attached file.
Thanks,
Internal Revenue Service United States Department of the Treasury.

Money Talk: A Financial Guide for Women

2011-12-01T16:53:00.002-07:00

Money Talk: A Financial Guide for Women ($23.00; 192 pages; 2009). This workbook teaches women the basics of smart money management.
Money Talk provides answers to questions like: How much do I need to save for retirement?; How much insurance should I have?; How and where should I invest my money?; and How do I create a will? Over 45 worksheets help readers evaluate their personal finances, set goals for financial well-being, and implement a plan to reach those goals.
The book is divided into five sections -- Financial Basics; Are You Covered? Insurance Basics; Investing Basics; Investing for Retirement; and Planning for Future Life Events. Each section includes lessons that demystify important financial concepts and exercises that allow readers to apply the information.
To learn more about the book: http://extension.missouri.edu/publications/DisplayPub.aspx?P=NRAES160

Health Insurance for Uninsured Utahns

2011-12-01T16:42:00.000-07:00

Uninsured adults can apply for basic health insurance through Utah's Primary Care Network (PCN). Beyond the annual enrollment fee of $50, the program is free and covers doctor’s visits, emergency room care, prescriptions (birth control included), and some dental and eye care. Requirements: age 19-64, U.S. citizen or legal resident, no other health insurance, not eligible or Medicaid, and meet income requirements (i.e., Max. $33,525/year for family of four). Apply online: http://www.health.utah.gov/pcn Or call 1-888-222-2542 Open enrollment for parents with children: December 10 - 23, 2011.

Retirement Planning Tools from SSA

2011-12-01T16:11:00.002-07:00

One of the best ways to begin retirement planning is with the Social Security Administration’s Retirement Planner at www.socialsecurity.gov/retire2. The Retirement Estimator at www.socialsecurity.gov/estimator gives you the ability and flexibility to test different retirement ages and learn how to maximize retirement benefits by delaying retirement.
Another great resource is www.mymoney.gov. This government site has a wealth of information from multiple agencies covering an array of topics—from buying a home to paying for college.

12 Myths about Bankruptcy

2011-12-01T13:57:00.000-07:00

Will you lose your house and retirement savings? When will you be able to borrow money again? Get the facts on these questions and more from MSN.money. I hope you don't need this info but here it is. http://money.msn.com/credit-rating/12-myths-about-bankruptcy-bankrate.aspx

Early Retirement Scams

2011-11-29T15:14:00.000-07:00

Tempted by seminar offers of early retirement?
Scam artists know the appeal of retiring early. If you find yourself receiving an invitation to an “early retirement seminar,” be leery because most seminars offer flawed or fraudulent investment pitches.

"To help you spot trouble, the Securities and Exchange Commission, along with the Financial Industry Regulatory Authority, has published “Early Retirement Seminars 101: Smart Tips for Spotting Retirement Scams.” The guide explains how such ruses work, particularly those that “dangle the prospect of early retirement with little or no reduction in income compared to your working years.” The publication also offers real-life examples of fraudulent pitches and where to turn for help."
http://www.finra.org/Investors/SmartInvesting/Retirement/P038342
Note that these scams are not related to legitimate early retirement packages that may be offered by your company
Source: Glenn Ruffenach's Smart Money blog.

Taking Over a Loved One’s Financial Affairs

2011-11-28T15:42:00.000-07:00

Join AARP and National Family Caregivers Association on Wednesday, November 30, 2011 at 7 pm ET (5 pm MST) to discuss “When it’s Time to Intervene—Taking Over a Loved One’s Financial Affairs.” This free Webinar will help caregivers and loved ones alike understand:
• What happens to our bodies as we age.
• What to assess when evaluating your situation.
• How to recognize signs that something is wrong.
• The need to create a plan for the future, and
• How to get help.

You can register for the Webinar at: http://event.on24.com/r.htm?e=372846&s=1&k=6023BF884380CC98EDCEC20CA68CFA09

Credit Repair: How to Help Yourself

2011-11-26T13:45:00.002-07:00

“You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail, and maybe even calls offering credit repair services. They all make the same claims:
“Credit problems? No problem!”
“We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”
“We can erase your bad credit — 100% guaranteed.”
“Create a new credit identity — legally.”
The Federal Trade Commission (FTC) says do yourself a favor and save some money, too. Don’t believe these claims: they’re very likely signs of a scam. Indeed, attorneys at the nation’s consumer protection agency say they’ve never seen a legitimate credit repair operation making those claims. The fact is there’s no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan.”
Learn more from the FTC at: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm

Before you spend all that money on Black Friday...

2011-11-23T12:35:00.001-07:00

Will you really "save" money by spending?
Do you really need to give gifts to all the people on your list? Or might you honor them by donating to their favorite charity or with tickets to a play or concert?
Is it time to start teaching your (grand)children about giving (especially on Thanksgiving)?
Do any of us need more clutter in our house? We are getting new floors in our house so all the furniture (and most of the stuff in closets) needed to be moved into the garage or from room to room as the work progressed. As part of the process my husband and I have been getting rid of STUFF! Some will go to Somebody's Attic thrift shop (couch and double bed with frame) but a lot of little stuff will go into the trash where it should have gone long ago.
"It's time to say goodbye to all that stuff" Jane Brody recently wrote in the New York Times. Brody refers to a new book “The Hoarder in You: How to Live a Happier, Healthier, Uncluttered Life” (published Tuesday by Rodale Books) by Robin Zasio, a clinical psychologist and a star of the show “Hoarders.” If you need motivation to clean out excess stuff and to reduce your gift buying, read Brody's article. Happy Thanksgiving!

Age-enhanced photos encourage more retirement savings

2011-11-11T12:46:00.000-07:00

When people see what they might look like at age 65, they tend to save about 33% more toward retirement, according to a study published in the Journal of Marketing Research. While many Americans are investing less for retirement due to unemployment, market volatility and financial anxiety, a study suggests that age-enhanced photos can change some people's minds. "When people are exposed to realistic images of their future selves, they are more willing to act in future-oriented manners, such as taking money that could be spent today and saving it for tomorrow," researcher Hal Hershfield says. Read the study at: http://www.marketingpower.com/AboutAMA/Pages/AMA%20Publications/AMA%20Journals/Journal%20of%20Marketing%20Research/TOCs/SUM_2011.SPL/increasing_saving_behavior.aspx

Bank Fees & Bank Transfer Day

2011-11-06T19:34:00.000-07:00

Did you ditch your bank yesterday? It's not too late to switch to a more consumer-friendly credit union (CU) or community development financial institution. Over the years surveys have repeatedly shown that consumers are better off at CUs than at banks. News reports indicate that 650,000 consumers joined CUs and moved $4.5 billion to these accounts in the past month in response to the proposed $5/month debit card fees. Almost anyone can join a credit union and CUs have been advertising heavily to attract customers. Transferring accounts takes some time and careful monitoring if you have your paycheck automatically deposited and various bills paid automatically. Set up the new account and make sure your auto deposits and payments are transferred over to the new account before you cancel. And then check to be sure these payments are made on time.
One commentator said that the monthly debit card fee at least was upfront and clear as opposed to so many bank and credit card fees that blind-sided consumers. You can be sure that financial institutions (and CUs are not immune from needing to raise revenue, as well) are hard at work in the back room figuring other ways to increase revenues after new federal legislation limited the fee income from debit card transactions. So be sure to read those notices included with your statement. Check out www.bankrate.com to comparison shop for checking accounts and other financial products.

Great financial website & blog

2011-11-05T11:58:00.000-06:00

Check out the Financial Security website http://fsp.bc.edu/ and "Squared Away" blog http://fsp.bc.edu/squared-away-blog/ from the Center for Retirement Research at Boston College. This excellent, research-based information should be the foundation of your education about investing and planning or retirement. I've been following the research reports from the Center for a number of years and they are on the leading edge of consumer (and policy)-oriented research. The "Squared Away" blog is written by a former Boston Globe financial reporter. Although geared to financial planning practitioners, it provides spot-on valuable info for the general public.

New Developments affect Student Loans

2011-11-04T21:21:00.000-06:00

On October 25, the Obama administration announced its plan to “make college more affordable and to make it even easier for students to repay their federal student loans.”
The new initiative has 3 goals:
1. Allow borrowers to cap their student loan payments at 10% of discretionary income.
2. Improve ease of making payments and reduce default risk by consolidating loans
3. Provide consumers with better information to make college selection decisions
If you or someone you know has student loans or is contemplating taking out loans, check out the details:
http://www.whitehouse.gov/the-press-office/2011/10/25/fact-sheet-help-americans-manage-student-loan-debt

Want to spend less? Spend cash!

2011-11-01T14:15:00.004-06:00

Behavioral finance studies find that adding so-called “felt losses” helps deter poor behavior. For example, consumers who buy non-essential luxury items or treats with cash are likely to spend a lot less than they would if they used credit or debit cards. We actually feel psychological pain when we pay with cash. Just think how you would feel if you had to pay cash to fill the tank on a large SUV or pickup! Swiping that card, whether debit or credit, is far less painful than parting with cash.

Research confirms that consumers who use credit cards spend more than those who use cash. Further, credit card users are much more likely to spend more than they intended. That’s why every department store offers incentives to sign up for their credit card.

Protecting Elder Americans from Financial Abuse

2011-10-27T09:52:00.004-06:00

Free advice and guidance on how to protect yourself and your loved ones against investment swindles and financial abuse.

Thursday, November 10, 2011
11 am -8 pm MST (9:00 am - 6:00 pm E)

One out of every five citizens over the age of 65 have been victimized by a financial swindle. Of particular concern are seniors with mild cognitive impairment (MCI) who can perform most daily functions, but have trouble or become confused when it comes to managing their finances.

In collaboration with several national organizations, Kiplinger is coordinating a toll-free nationwide call-in service for individuals seeking advice. From 9:00 a.m. to 6:00 p.m. Eastern time on Thursday, November 10, members of the Financial Planning Association, National Adult Protective Services Association and health care professionals will answer your questions.

http://www.investorprotection.org/downloads/pdf/learn/Prevent_Elder_Fraud_Call-In_Flyer.pdf

Learning to Invest Podcasts

2011-10-13T16:13:00.003-06:00

“FINRA’s Investor Podcasts discuss the timely financial issues and information you’ll need to save smarter and weather today's turbulent stock markets. Investor Podcasts will also help you protect your portfolio by reporting trends in investment fraud and other traps investors at all wealth and experience levels should avoid.” Most podcasts are less than 10 minutes.

This podcast series introduces listeners to the first steps and basic concepts of investing.

http://www.finra.org/Investors/SmartInvesting/GettingStarted/Podcasts/p123287

The Financial Industry Regulatory Authority (FINRA) has a lot more podcasts on topics like: saving for college, retirement, choosing an advisor, money management, annuities & insurance, and more. http://www.finra.org/Investors/SmartInvesting/GettingStarted/Podcasts/

How to Complain

2011-09-14T09:42:00.002-06:00

How to Complain

“Consumer Action has updated its perennial favorite guide How to Complain in honor of our 40th anniversary. The free and comprehensive booklet is designed to help you complain effectively and get results. How to Complain includes advice on how to approach businesses with a complaint; escalating a complaint through customer service or a company’s executive offices; writing emails and letters about your complaint, and documenting your complaint.” This is a terrific resource for consumers!

http://www.consumer-action.org/english/articles/how_to_complain

Grab & Go Box for disaster preparedness

2011-09-07T09:25:00.001-06:00

The east coast hurricanes and Texas wildfires remind us that we are all vulnerable to natural disaters. Here is Utah we live under the threat of a devastating earthquake. If you live in an area prone to natural disasters (who doesn't??) that could require evacuation, consider creating a grab-and-go box. Use a durable, sealed waterproof box or backpack. Put in copies of everything that is in your emergency file, and add other important papers: (http://www.extension.org/pages/26403/grab-and-go-box
Note that the list calls for COPIES of important documents. The originals should be kept in a safe deposit box at a financial institution.

Americans Cannot Visualize Financial Dreams

2011-09-07T09:20:00.000-06:00

"Financial Professionals Say Americans Cannot Easily Visualize Financial Dreams: Americans continue to show resilience post-financial crisis, but a new study released by the Principal Financial Group® and conducted by Harris Interactive reveals that many still need help to envision their financial dreams. Only one in 10 financial professionals said their clients find it easy to visualize their financial dreams, according to the study."

Read more…(http://www.principal.com/about/news/2011/crp-advisor-study071911.htm/?WT.mc_id=DA_FP_08232011_1
What about you? It's much easier to stay motivate to invest for the future if you have a concrete vision of your goal, whether it be retirement, educational expenses, buying a house or ______ (you fill in the blank). It helps to find a photo of what you want and post it on your mirror or fridge so you are reminded each day.

Elder Rights Resource Booklet

2011-08-22T13:32:00.003-06:00

The Utah Elder Rights Resource Booklet

http://www.hsdaas.utah.gov/pdf/utah-elder-rights-booklet.pdf

This 28 page resource was written by Jilenne Gunther and published by the Utah Division of Aging and Adult Services. Table of Contents:

1. Protecting Yourself against Scams and Sales

2. Knowing Your Consumer Rights

3. Preventing and Protecting Yourself from Abuse

4. Caring for Grandchildren

5. Learning about Benefits

6. Obtaining Medical Insurance

7. Finding Housing Options

8. Organizing Your Assets: Estate Planning

9. Keeping the Power: End-of-Life Planning

10. Making Arrangements: Death of a Loved One

11. Getting Legal Help: Where to Go from Here

The author is willing to speak to groups on any topic in this book. Contact:

Jilenne Gunther

Legal Enforcement Counsel

Utah Division of Aging and Adult Services

jgunther@utah.gov

801-538-3910

How expensive a home should you buy?

2011-08-22T10:35:00.003-06:00

Whether you currently own a home or are in the market to buy, some national statistics shed slight on the question of how expensive a home to purchase. The traditional rule of thumb has been to spend no more than 2.5 times your annual income on a home. The acronym PITI stands for principal, interest, taxes, and insurance. So PITI includes your monthly mortgage payment (principal & insurance), property taxes, and HO insurance premium but should also include any homeowner’s association fee and mortgage insurance premium. It is this total, not just the mortgage payment, that should be 30% of your income or less. A recent Wall Street Journal article (8/17/11) reveals: “For the U.S. as a whole, home prices were around 2.9 times incomes from 1985 to 2000. But during the housing boom, values increased at a much faster rate than incomes. The price-to-income ratio peaked at around 5.1 in 2005. Home prices have since fallen so that on average, nationally, prices are around 3.3 times incomes, or about 14% above the historical trend.” So homeowners can calculate your own ratio and see where you stand. Personally I have always bought homes that are well below the ratio so that we have more money for other goals and flexibility so my husband could switch jobs or take time off (a summer in Australia for us) and to allow for possible unemployment and unexpected expenses. It’s clear from these data that far too many Americans exceeded their capacity to pay (encouraged by real estate sales people, mortgage brokers, and media hype) during the housing bubble.

Looking on the bright side of stock market woes

2011-08-18T21:32:00.001-06:00

With assets losing value it’s hard to find any good news in the investment markets. One exception is that now may be a good time to convert a traditional IRA to a Roth IRA. When you convert you have to pay taxes but with reduces values the amount of taxes will be less. Read about this strategy in “Market Woes Open Door for Roth Conversions” By Steve Garmhausen

http://www.financial-planning.com/news/roth-ira-conversions-following-market-losses-2674700-1.html

Become a Saver!

2011-08-16T15:46:00.000-06:00

Are you a Saver? Do you want to get started on building savings and paying down debt? Visit http://www.americasaves.org/ to learn how you can take action to Build Wealth Not Debt! There are state specific websites as well such as Utah Saves: www.utahsaves.org

Financial guidebook for widows

2011-08-14T19:58:00.002-06:00

Widowhood can be a devastating life event. Friends and family members may offer to help but we often feel helpless in providing support. Providing the widow with a copy of this book may be the most valuable help you can offer.

Kathleen Rehl’s book, Moving Forward on Your Own: A Financial Guidebook for Widows.

Quotes below are from the web page which also provides ordering information for this award winning book: http://www.kathleenrehl.com/

“A husband’s death is possibly the most devastating event a woman will experience. She may wonder, “Am I going to be able to make it on my own?” She may feel overwhelmed and not know what to do next.”

“This guidebook helps widows begin to feel more secure about their financial matters, serving as a catalyst to assist women make progress after a spouse's death. It integrates basic financial information with self-reflective exercises to encourage self-confidence about money issues. Written in an easy-to-understand manner, it's presented in a beautiful format--to help heal a woman's soul while gently focusing on money matters.”

“Widows transitioning into their new financial life may use this book on their own or with the guidance of a professional. Grief support group members can use this book together. Or, it may be given as a gift to a family member or friend who is widowed.”

10 Steps to Prepare for Retirement

2011-07-17T08:26:00.002-06:00

10 steps to retirement from AARP

1: Define Your Retirement

2: Take Stock of Your "Assets"

3: Evaluate Your Health — Now

4: Determine When to Collect Social Security

5: Network Through Social Media and Other Methods

6: Decide How Much You Want (or Need) to Work

7: Create a Retirement Budget

8: Find New Ways to Cut Your Expenses (Start Saving More)

9: Prepare for the Unexpected

10: Stick to Your Plan (Our Community Can Help)

Read the details at: http://www.aarp.org/readyforretirement

10 Steps to Preparing to Retire

2011-07-17T08:17:00.001-06:00

AARP offers a 10-step guide to prepare for retirement. “Ready for Retirement?” helps you evaluate your health, build your social network, and find new ways to cut expenses.
See all ten “Ready for Retirement?” steps at www.aarp.org/readyforretirement.

10 steps to retirement AARP 2011

1: Define Your Retirement

2: Take Stock of Your "Assets"

3: Evaluate Your Health — Now

4: Determine When to Collect Social Security

5: Network Through Social Media and Other Methods

6: Decide How Much You Want (or Need) to Work

7: Create a Retirement Budget

8: Find New Ways to Cut Your Expenses (Start Saving More)

9: Prepare for the Unexpected

10: Stick to Your Plan (Our Community Can Help)

http://www.aarp.org/readyforretirement

Social Security Benefits Calculator- When to claim

2011-07-17T08:15:00.001-06:00

Deciding when to claim SS retirement benefits is critical to one's long range financial security and much more complex than most people imagine. It is NOT simply a matter of deciding at what age one will retire and start benefits, especially for someone who is currently married,widowed or divorced. Here is a link to a great tool to explain the options and help decide.

"AARP announced the launch of its Social Security Benefits Calculator, a unique interactive tool designed to help people make the complex but critical decision of what is the best age to claim Social Security benefits to meet their financial goals. The calculator is part of AARP’s new “Ready for Retirement?” effort, a ten-step approach to envisioning and planning for a secure retirement, which includes creating a budget and preparing for the unexpected." AARP Press Release AARP Launches Social Security Benefits Calculator

To try out the new AARP Social Security Benefits Calculator, visit www.aarp.org/socialsecuritybenefits

Utah in top 5 for Ponzi Schemes

2011-06-29T10:54:00.000-06:00

Last year the FBI labeled Utah as one of its top 5 states for Ponzi (pyramid) schemes. Now a new study confirms that Utah is #5 in the nation on the "Ponzi Prosperity Index." Ponzi schemes promise outrageous investment returns and use money from new investors to pay the initial investors who brag to their friends and family to suck them into the scheme. Does no one remember Bernie Madeoff and his promises of guaranteed, safe returns?? No investment return is guaranteed. The new study shows that religious group members are Ponzi targets about 30% of he time (based on trust of religious leaders and co-worshipers). The elderly and retired people are also prime targets (because that's where the money is). For at least the past 3 decades The Salt Lake Tribune has been published articles about "affinity group" investment fraud and today's (June 29) paper reminds readers to be very wary of unrealistic promises of safe, high investment returns. Keith Woodwell, director of the Utah Division of Securities is quoted in the article, "I would say it is probably closer to 50 percent of the scams we see in Utah that are marketed based on some type of affinity group." Be skeptical and help educate your friends and family (particularly seniors) about Ponzi schemes and affinity fraud. Read the details at: http://www.sltrib.com/sltrib/money/52091892-79/ponzi-utah-state-fraud.html.csp

So you think you know all about credit scores...

2011-06-21T15:50:00.000-06:00

http://www.creditscorequiz.org/ is a new website to educate consumers ahead of new regulations’ poised to dramatically affect borrowers. CreditScoreQuiz.org is an interactive quiz that lets you test their understanding of credit scores and improve your understanding of how your credit scores affects the cost of borrowing money. Compare your score to the national average. After you take the quiz be sure to check out the resources page http://www.creditscorequiz.org/resources/
While you’re at it, don’t forget to get a free copy of your credit report once a year from each of the three national credit reporting companies at annualcreditreport.com or by calling 1-877-322-8228.

P.S. I teach this stuff and I didn’t score 100%.

Beware Business Credit Card Solicitations

2011-06-21T13:48:00.002-06:00

Four U.S. Senators urged the Federal Reserve to crack down on business credit card marketing, because the cards do not come with many of the protections that are standard on basic consumer credit cards. According to the Wall Street Journal the senators want the Fed to require credit card companies to improve disclosures on the business cards and clearly warn consumers that the cards are NOT protected by the latest regulations that have reined in billing practices such as sudden interest-rate hikes. Each month lenders send out 10 million offers to consumers for professional credit cards, according to a study by the Safe Credit Card project at Pew Charitable Trusts, a Washington, D.C.-based consumer-advocacy group. See: http://www.pewtrusts.org/our_work_detail.aspx?id=616

Second point: register to Opt Out of credit card solicitations to cut down on junk mail, wasted trees & paper, and to protect against ID theft from stolen solicitations. Sign up at OptOut Prescreen: https://www.optoutprescreen.com/?rf=t

Save up to $1/gallon of gas

2011-06-21T13:29:00.000-06:00

I don’t like to promote specific retailers in this blog but I was pleasantly shocked recently when I bought gas at Conoco on 400 North in Logan and saved 90 cents per gallon!! I’m used to the old system of saving up to 15 cents/gallon by swiping my Smith’s fresh values reward card when buying gas. When I shopped at Smith’s yesterday I noticed the sign claiming you can save up to $1/gallon. With the vacation travel season starting, this is a great deal. I shop at Smith’s Marketplace because it is close to my home so I can walk, ride my bike, or stop on my way home with the car (saves time and money to shop close to home). Students in the “Consumer in the Market” class at USU do a comparison shopping project each semester and their studies show there is not a consistently cheapest grocery store in town.

You Don't Need a Million to Retire Well

2011-06-12T16:09:00.000-06:00

Get a Life: You Don't Need a Million to Retire Well
While I'm always encouraging people to invest more for retirement, this is one of my favorite books. Read a free chapter online at: http://www.nolo.com/products/get-a-life-LIFE.html
"The financial-service industry wants you to believe that in order to avoid financial destitution, you need to put aside huge amounts of money that you -- let's say it together -- "should have begun saving years ago."
Not true, states Ralph Warner, Nolo co-founder and the author of Get a Life. Although a sensible savings plan makes good horse sense, many other actions and decisions will determine whether you enjoy your retirement years.
Get a Life shows you how to beat the anxiety surrounding retirement, and to develop a plan to make your golden years the best of your life by:
    developing family relationships
    maintaining and creating friendships
    improving health
    keeping active
    developing a robust curiosity for the world
    realistically calculating how much money you need and how to secure it
The 5th edition provides the latest research and studies that show physically and mentally active retirees live longer and enjoy happier lives."

Social Security Fix-it book

2011-05-22T15:00:00.000-06:00

Confused about Social Security? Worried that it won't be there for you? Frustrated with the lack of action by Congress to deal with the looming financing problems? Wondering who to believe?
The non-partisan Center for Retirement Research at Boston College has produced an easy to understand educational tool to clear up the confusion and point the way toward a reasonable solution: "Everything the earnest but overburdened citizen needs to know about the Social Security financing shortfall and the leading proposals for addressing the problem." Available at:
http://crr.bc.edu/images/stories/Special%20Projects/social_security_fix-it_book.pdf
This colorful, illustrated, easy-to-understand booklet explains the problem (No, SS is NOT going bankrupt!) Decide for yourself (and your multi-generation household) what steps you would like your Congressional representatives to implement to resolve the funding problem before delay makes it worse. Go ahead! Click the link above. I think you will be pleasantly surprised to discover that the problem is solvable.

Natural Disaster Planning and Recovery

2011-05-22T14:45:00.000-06:00

It's been almost a month since my last post because my husband and I have been on a 4,000 miles motorcycle trip from N. Utah to Maryland, a trip that will be remembered as the 'natural disaster' tour! We rode along the Louisiana coast that was devastated by hurricane Rita in 2005 where we saw lots of empty concret pads where homes used to be. A section of beach that used to hold 250 homes now has a dozen, all new since Rita. Although we did not see the worst of the massive Mississippi River flooding, we rode through portions of Louisiana that are now being inundated. I've got photos of prisoners filling sandbags and we stood on a levee watching the water rise in Morgan, LA. As we headed north from the Gulf we saw the first examples of tornado damage near Jackson, MS. From there north through Alabama, Tennessee, Georgia, N. Carolina and Virginia we viewed extensive tornado damage and passed a number of FEMA disaster recovery stations. Just 150 milies short of our destination we spent two nights in a motel to avoid the severe thunder storms; I was so glad we did as a (thankfully small) tornado struck Frederick County, MD, our destination, that day. Right now some Utah homeowners are cleaning up after or preparing for the inevitable flooding as our massive snow pack starts to melt. I remember well the flooding of spring 1983 & 84. But our biggest risk for extensive damage in Utah (and other western states) is earthquakes. For actions to take to make your home safer during an earthquake use the search festure of this blog (type: earthquake). But the purpose of this blog is to feature a new resource for disaster recovery, Recovery After Disaster: The Family Financial Toolkit, developed by the University of Minnesota Extension and North Dakota State University Extension Service, in partnership with Lutheran Social Service. The Cooperative Extension Service provides adult education throughout the U.S. This excellent resource is available at: http://www.extension.umn.edu/family/tough-times/disaster-recovery/docs/financial-tookit-all.pdf
BUT don't wait until disaster hits to take some important steps. Unit 5 is a good summary of what everyone needs to know about their current financial status. Units 6 & 7, Where will I live? are a good reminder of the need for renters insurance and the portion of HO insurance that pays for you to live elsewhere if your home is not habitable. Do you have a detailed and current home inventory, with photos, to document your possessions? Besides a copy at home, keep a copy in your safe deposit box, and with a relative or friend who lives in a different community. USU Extension's publication Take Charge of Your Money can help you get started. http://extension.usu.edu/files/publications/publication/FL_500.pdf

Now is the time to talk with your homeowners' insurance agent to be sure you have appropriate coverage; remember that HO insurance specifically excludes coverage for lood and earthquakes. You need to purchase separate policies and your agent can help with the process. It seems that no one is immune from natural disasters so don't kid yourself and don't delay.

Did you get a big income tax refund?

2011-04-25T21:30:00.000-06:00

Three-quarters of taxpayers overpay Uncle Sam; the average federal income tax refund last year was $3,003! I know that economic psychologists tell us people love to get those refunds of overpaid taxes; they feel like it is a windfall. But it is totally irrational. (I wonder how many tea partiers over pay their taxes.) If you carry a balance on a credit card, it's crazy to over pay your taxes! Reduce your withholding and direct those funds to paying down that high interest debt faster. If you don't have a substantial emergency fund, reduce your withholding and set up an automatic deposit to an online savings account as a painless way to save. No Roth IRA? T. Rowe Price will let you start an individual retirement account with as little as $50/month with an automatic investment plan. Unfortunately, too many consumers splurge on consumer purchases with their refund money (note all the advertising to get you to use your refund to buy furniture, TVs, etc.) rather than investing it to secure your future. Nag, nag, nag... don't be a bag lady in your old age! Adjust your W-4 withholding using the website: http://www.irs.gov/individuals/article/0,,id=96196,00.html

Taking the mystery out of retirement planning: Focus on women and retirement

2011-04-25T13:39:00.000-06:00

“Four in 10 working Americans say they will never be able to afford to retire, a Harris Interactive survey of 1,005 adults for the American Institute of Certified Public Accountants found. In addition, 55% do not know how much they will need to afford retirement, and among those who think they know, they are low-balling the figures. Asked how much they would need for a 20-year retirement starting at age 65, those earning $50,000 to $75,000 gave a median estimate of $250,000.”

Need some help getting motivated and implementing a plan for retirement? View a series of 52 slides with audio produced by the US Dept of Labor in cooperation with the Social Security Administration, the Women’s Institute for a Secure Retirement, and others

You can view the event at:
http://event.on24.com/r.htm?e=301567&s=1&k=65A6A95A461C5293DD249BDF5256B72C

How to conquer killer markets, con artists, and yourself

2011-04-17T10:26:00.001-06:00

The little book of safe money: How to conquer killer markets, con artists, and yourself

by Jason Zweig, personal finance columnist at the Wall Street Journal. I haven't read this yet but Zweig is one of my favorite finance writers. Zweig interprets research in psychology, economics, and neuroscience as they relate to personal finance.

“This book is the latest in John Wiley's "Little Book Big Profit" series. The purpose of the series is to bring the brightest minds to readers so they can pick and choose from the best investment advice available. The book's 22 chapters live up to this purpose, giving the reader solid, research-based and practical information about investing.”

“Zweig offers three commandments related to investor risk-taking. He follows with the importance of budgeting and reducing debt, realizing that you cannot have both low risk and high yield in the same investment and knowing the six basic rules for keeping cash safe. You'll learn why money market funds don't belong in a retirement account but TIPS do.” Learn much more from this perceptive writer who can translate complicated research concepts into practical advice. (quotes from review by CFP^®Jon Ford).
Available as an E-audiobook from Logan Library.

Know your retirement personality

2011-04-17T10:11:00.002-06:00

“There is more to a successful retirement than finances. Personality can play a big role. Take our 5-step profiler to discover your attitude toward life change, risk and uncertainty as these viewpoints determine how you’ll react to the change from work to retirement. Different personality types react to assorted ways to change. Knowing your personality will help you set
realistic retirement goals and plan for the lifestyle that best fits you. Complete our profiler tool and you’ll receive your personality type description along with tools and resources to help you transition into retirement.” This 5 question quiz from Transamerica may shed some light on how you will adapt successfully to the transition from work to retirement, which, of course, is not always from full-time work to full-time leisure. “Most pre-retirees plan to blend work and play to help smooth their financial transition. A total of 67% plan to work in some capacity as they get older.”

http://www.securepathbytransamerica.com/tools/Retirement-Personality-Profiler.aspx

Take Control of Your Financial Future: Tips to Think About at Tax Time and Beyond

2011-04-14T16:51:00.002-06:00

“During tax filing season, many of us spend a great deal of time focusing on our finances—and we are not always happy with what we see. According to the FINRA Investor Education Foundation's recently released State-by-State Financial Capability Survey, only one in six respondents said they were satisfied with their current financial condition. No matter the season, now is the time to take stock of your finances. Here are five key areas to consider, and links to information to help you get started.” http://www.finra.org/Investors/ProtectYourself/InvestorAlerts/MoneyManagement/P123393

April Is Financial Literacy Month: Test Your Investing Knowledge

2011-04-14T16:48:00.002-06:00

“April is Financial Literacy Month, an opportunity to brush up on your financial knowledge and pass along what you've learned to someone else. Take the FINRA Investor Knowledge Quiz to get started. When you're done, we'll show you the correct answers and provide you with links to more information.” http://www.finra.org/Investors/ToolsCalculators/P116940

Have fun!

What will you do with your $500?

2011-04-12T16:22:00.002-06:00

Utah State University benefit-eligible employees who have been enrolled in the health care plan since July 1, 2010 will soon receive checks for $600 minus “appropriate payroll taxes.” (I’m estimating about $500 to invest.) The funds are available because “USU’s self-insured health plan has experienced lower than expected claims.” According to USU president Stan Albrecht, “we believe that these lower claims reflect conscious choices about personal health and wellness and the use of our University health plan. These positive choices have created an opportunity for the University to extend this one-time wellness dividend.”

First, thank Wellness Center director Caroline Shugart for her unrelenting efforts to encourage improved fitness and exercise behaviors! Also, this is a good time to re-visit the “Small Steps to Health and Wealth” website, promoted by Financial Planning for Women, to adopt a few more positive behaviors: http://njaes.rutgers.edu/sshw/

Best uses for those funds: pay down credit card debt, fund a Roth IRA, or open a 529 college savings account for your child, grandchild, niece, nephew or whichever child you expect to be caring for you and your money in your old, old age. For help in choosing a mutual fund for your IRA go to the FPW website: http://www.usu.edu/fpw/schedule/powerpoints.htm review the PowerPoint presentations on Mutual funds, IRAs, and Retirement or go to “college 529 plans.” Right click and use the "Save As" option to download the PPTs to your computer for viewing.

Do you live in an historic home in earthquake country?

2011-04-10T22:08:00.000-06:00

While dining on sushi in a lovely 1916 brick home last night the topic of the Japanese earthquake came up. When I asked if anyone at the dinner party had earthquake insurance, it was clear the answer was no. Today's (4/10/11 p. B 1 & 8) Salt Lake Tribune featured an article, "Utahns urged to gird historic homes for quakes." Virtually all of Utah (and much of the west) is earthquake country. It's not a matter of IF but when our big one will hit. Because Japan leads the world in research on building structures to resist damage from earthquakes, most of the buildings would have weathered the quake with mild to moderate damage. However, the massive devastation was due to the tsunami. In addition to buying earthquake insurance, minor structural and interior changes will reduce the damage from a quake. Check out my postings of 3/10/10 and 3/3/11 for basic info on planning for a quake and quake insurance. HO insurance does NOT cover earthquake damage! (You can search my blog for key words to find previous posts about topics of interest.)
However, historic unreinforced masonry buildings need additional structural reinforcement. Thanks to SLT writer Lisa Schencker for these links:

Bracing for the big one: Seismic retrofit of historic houses

http://history.utah.gov/historic_buildings/information_and_research/bracing_for_the_big_one.html

Utah Guide for the Seismic Improvement of unreinforced masonry dwellings (lengthy document):

http://ussc.utah.gov/utahseismic/
Don't procrastinate. Stay tuned for an update on flood insurance.

The Story of Bottled Water

2011-04-04T20:21:00.001-06:00

For those of us who remember life without bottled water, it is sad, pathetic, and frustrating when consumers spend money on water packed in a throw away plastic bottle. The bottle is made from petroleum and shipped across the country (wasting more petroleum), and then 80% of the bottles end up in landfills or incinerators. Even worse, much of the supposedly recycled bottles are shipped to developing nations like India (wasting more petroleum in the process) where they add to the pollution problem. While consumers routinely claim to be immune to advertising, bottled water is a classic example of “manufactured demand,” using scare techniques and images of pure fantasy to entice buyers. Pepsi’s Aquafina and Coke’s Desani are simply filtered tap water sold at 2,000 times the price of tap water! Despite its advertising claims and images of pristine sources, Fiji water is lower quality than Cleveland’s tap water. Imagine paying 2,000 times the price of gas for your car! Yet consumers succumb to this insanity daily. Logan, UT has some of purest water on the planet coming out of our taps. Don’t be a schmuck. Save your money and the environment; use a steel water bottle. Watch the 8 minute video and kick the bottled water habit: http://storyofstuff.org/bottledwater/
Even worse, millions of pounds of discarded plastic is floating in the Pacific Ocean forming an ‘island’ at least twice the size of Texas – from the film Flow.