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
November 11, 2011
November 6, 2011
Bank Fees & Bank Transfer Day
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.
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.
November 5, 2011
Great financial website & blog
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.
November 4, 2011
New Developments affect Student Loans
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:
http://www.whitehouse.gov/the-press-office/2011/10/25/fact-sheet-help-americans-manage-student-loan-debt
The new initiative has 3 goals:
- Allow borrowers to cap their student loan payments at 10% of discretionary income.
- Improve ease of making payments and reduce default risk by consolidating loans
- Provide consumers with better information to make college selection decisions
http://www.whitehouse.gov/the-press-office/2011/10/25/fact-sheet-help-americans-manage-student-loan-debt
November 1, 2011
Want to spend less? Spend cash!
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.
October 27, 2011
Protecting Elder Americans from Financial Abuse
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
October 13, 2011
Learning to Invest Podcasts
“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.
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/
September 14, 2011
How to Complain
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
This is a terrific resource for consumers!
September 7, 2011
Grab & Go Box for disaster preparedness
The east coast hurricanes and Texas wildfires remind us that we are all vulnerable to natural disasters. 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.
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
"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_1What 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.
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