Check out these valuable articles from the excellent Squared Away Blog:
Single and Living on the Financial Edge
Will Marriage Be Good For Your Savings Account?
Married Women Catch Up to Single Coworkers
He’s a Rabid Saver. She’s a Footloose Spender
At Least Women Admit What They Don’t Know About Money
You Are Not Alone: Half of All Women Have Retirement Anxiety
Water Cooler Talk About Finance
How Much Should You Save for Retirement? Less If You Start Young
Boomer Moms, Take Care of Yourself For Once
Women: Beware of Bad Social Security Advice
Women Do Learn About Finance – As Their Husbands Age
A Financial Advisor Helps her Widowed “Sisters”
http://fsp.bc.edu/a-dozen-things-women-need-to-know/
October 29, 2012
October 23, 2012
High Deductible Health Plans & Health Savings Accounts
Participation in high-deductible health-care plans, or HDHPs is growing rapidly. According to Morningstar's director of personal finance, Christine Benz, "as health-care costs and insurance premiums have skyrocketed, HDHPs,
combined with health-savings accounts, provide employers with a way to
offload some of the burden to their employees. For self-employed
individuals shouldering their own health-care costs, high-deductible
plans might be the most (or only) affordable option." HDHPs charge lower premiums than more comprehensive insurance plans. Participants can stash money in health-savings accounts (HSAs) to cover out-of-pocket costs of HDHPs. "Contributions
to HSAs aren't subject to tax, investment earnings on the assets in the
account aren't taxed from year to year, and withdrawals are tax-free,
provided they're used on qualified health-care expenditures." You can only contribute to an HSA if an HDHP is your primary insurance. "In 2012, a high-deductible plan is one with a deductible of at least
$1,200 for individuals and $2,400 for families, with a maximum
out-of-pocket expense of $6,050 for individuals and $12,100 for
families." If you have a HDHP, check out your HSA options, focusing on fees and investment options. High fees and poor investment options (such as a money fund that pays virtually no interest) may exceed the tax advantages. Learn more about HDHPs and HSAs at:
http://news.morningstar.com/articlenet/article.aspx?id=570460
http://news.morningstar.com/articlenet/article.aspx?id=570460
Taxes go up next year, no matter who's president
"A temporary reduction in Social Security payroll taxes is due to
expire at the end of the year and hardly anyone in Washington is pushing
to extend it. Neither Obama nor Romney has proposed an extension, and
it probably wouldn't get through Congress anyway, with lawmakers in both
parties down on the idea.
Even Republicans who have sworn off tax increases have little appetite to prevent one that will cost a typical worker about $1,000 a year, and two-earner family with six-figure incomes as much as $4,500.
Why are so many politicians sour on continuing the payroll tax break?
Republicans question whether reducing the tax two years ago has done much to stimulate the sluggish economy. Politicians from both parties say they are concerned that it threatens the independent revenue stream that funds Social Security."
By STEPHEN OHLEMACHER, The Associated Press
http://economywatch.nbcnews.com/_news/2012/10/21/14596820-taxes-go-up-next-year-no-matter-whos-president?lite%3Focid=twitter
Unlike Bush-era tax cuts for individuals making more than $200,000 and married couples making more than $250,000, which Obama wants to end while Romney staunchly defends, the SS payroll tax cut helped low and moderate income earners make ends meet. So, what should you do? BEFORE the frenetic holiday spending season descends in full force, it's time to reassess your income and expenditures to account for this reduction in cash flow. If you are having trouble making ends meet today, it's only going to be worse in January when the payroll tax cut disappears, so get control of your spending now. Get help from the counselors at the USU Family Life Center, 493 N 700 E in Logan. Call 435-797-7224 to make an appointment.
Even Republicans who have sworn off tax increases have little appetite to prevent one that will cost a typical worker about $1,000 a year, and two-earner family with six-figure incomes as much as $4,500.
Why are so many politicians sour on continuing the payroll tax break?
Republicans question whether reducing the tax two years ago has done much to stimulate the sluggish economy. Politicians from both parties say they are concerned that it threatens the independent revenue stream that funds Social Security."
By STEPHEN OHLEMACHER, The Associated Press
http://economywatch.nbcnews.com/_news/2012/10/21/14596820-taxes-go-up-next-year-no-matter-whos-president?lite%3Focid=twitter
Unlike Bush-era tax cuts for individuals making more than $200,000 and married couples making more than $250,000, which Obama wants to end while Romney staunchly defends, the SS payroll tax cut helped low and moderate income earners make ends meet. So, what should you do? BEFORE the frenetic holiday spending season descends in full force, it's time to reassess your income and expenditures to account for this reduction in cash flow. If you are having trouble making ends meet today, it's only going to be worse in January when the payroll tax cut disappears, so get control of your spending now. Get help from the counselors at the USU Family Life Center, 493 N 700 E in Logan. Call 435-797-7224 to make an appointment.
Retirement Plan Contribution Limits go up in 2013
Due to rising inflation, the IRS will increase the contribution limit for 401(k) retirement plans by $500 to
$17,500 for 2013. However, the catch-up contribution limit, the additional amount that employees over 50 can contribute to their retirement
plans -- on top of the $17,500 that any employee can contribute --
remains unchanged at $5,500. Limits increase for 403(b)s, most 457 plans and the federal government's Thrift Savings Plan, as well. In addition, taxpayers will be able to give away up to $14,000 tax-free in 2013, up from $13,000 this year.
Should you buy an annuity from Social Security?
The key findings of
this study from the Boston College Center for Retirement Research are:
- Households now retiring need to transform their 401(k) and IRA savings into retirement income.
- One way is to delay claiming Social Security to increase their monthly benefit, using savings to pay current expenses while they wait.
- In effect, they are buying an annuity from Social Security: The savings used is the “price” and the increase in their monthly benefit the annuity income it “buys.”
- Buying an annuity from Social Security is generally the best deal in town, especially in today’s low interest-rate environment.
Protect Your Identity Week
PYIW’s theme for October 20-27, 2012 is "ID Theft Protection on the Go" focuses on how the use of smart phones presents a great risk for identity theft. Fully 62% of smartphone owners do not use passwords to protect their phones! The PYIW national campaign's Web site - ProtectYourIDNow.org - highlights resources and community events aimed at identity theft protection and education. Check it out and take steps today to protect your personal information.
October 17, 2012
Why Your Kids Need a Roth IRA
"Working at a tender age is an American tradition. I'm sure lots of kids
did just that over the summer, and some are still be doing it after
school and over the weekends. What isn't so traditional is the notion of
kids contributing to their own Roth IRAs. It should be a tradition,
because it's such a good idea. Here's the scoop." "Encouraging your working kid to make Roth IRA contributions is a great
way to introduce the ideas of saving and investing for the future. Plus
there are tax advantages. It's never too soon for your child to learn
about taxes and how to legally minimize them. After all, it's basically a
game, and kids love games." by Bill Bischoff in Smart Money. http://www.smartmoney.com/taxes/income/why-your-kids-need-a-roth-ira-1350410924321/?link=SM_taxes_ls4e
October 12, 2012
Are Grandparents too Generous?
"Grandparents
may be threatening their retirement by their generous support of
grandchildren, a study suggests. Sixty-two percent of grandparents have
given money to grandchildren
in the past five years, totaling more than $8,000 on average, according
to the MetLife Mature Market Institute study. One-third said they think
their support may threaten their own financial security." read details at: http://seniorhousingnews.com/2012/10/10/the-grandparent-giver-generous-to-the-point-of-retirement-insecurity/
To read the full MetLife study: https://www.metlife.com/assets/cao/mmi/publications/studies/2012/studies/MMIGrandparentsStudy_WEB.pdf
To read the full MetLife study: https://www.metlife.com/assets/cao/mmi/publications/studies/2012/studies/MMIGrandparentsStudy_WEB.pdf
October 8, 2012
October 10 FPW: Money Psychology
"Trick your mind to treat your finances" was the topic for the October FPW program. Learn about the psychology of money to help you achieve your financial
goals. To see the PowerPoint and listen to audio of the presentation go to the FPW website: www.usu.edu/fpw and click on "past presentations." Scroll down to "Video/Audio Presentations."
The Myth of the Black Friday Deal
According to the October 8, 2012 Wall Street Journal, Black Friday (the day after Thanksgiving), is rarely
the time to score good deals on holiday gifts. “You’re probably wasting your
time” getting up early to brave the cold and crowds. Based on research that followed
prices for at least 2 years, the report reveals that jewelry, watches, big
screen TVs, popular toys, and other “hot” items get more expensive from
September to December, while appliances and other items get cheaper. Leading up to the holidays, September and
October are often the best months to buy.
While stores offer Black Friday deep discounts on some select items as “loss
leaders” to get buyers in their stores, often quantities are limited, making it
hard to score a deal. So carefully plan your holiday shopping budget today and
start shopping for those “hot” items.
Enjoy a good nights’ sleep and avoid the hysteria of Black Friday crowds. With more stores offering layaway, consider
that option for making sensible purchases that fit your budget and don’t incur credit
card interest. Read the details:
http://online.wsj.com/article/SB10000872396390443615804578042700772445448.html?mod=ITP_marketplace_0
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