The Do’s and Don’ts of Student Loan Repayments

November 19, 2014

My oldest child, Rachel, is a junior in high school, and while we enjoy having her around the house, we know that soon she’ll be looking into college. In case you haven’t looked lately, the average cost for a four-year in-state public institution is $9,139—and that’s just for tuition and fees! Over four years, that’s going to cost upwards of around $40,000. By itself that might not seem so bad, but when you consider that Rachel has three younger brothers, that price tag starts to look awfully daunting. Continue reading “The Do’s and Don’ts of Student Loan Repayments”

Shave Your Budget, Not Your Moustache

November 12, 2014

A recent Wells Fargo study found that 31% of survey respondents do not think they will have enough money to “survive” on in retirement, yet more than half say they plan to save later for retirement in order to “make up for not saving enough now.” If we have learned anything from Aesop’s fable regarding the ant and the grasshopper, it’s that waiting until later is NOT a good strategy. This is especially true when it comes to saving for retirement. Continue reading “Shave Your Budget, Not Your Moustache”

Living Longer May Not Be All Good News For Women

November 05, 2014

According to a new report by the Centers for Disease Control and Prevention’s National Center for Health Statistics, Americans are living longer—o.1 years longer to be exact—as the national life expectancy has reached a new record high of 78.8 years. Women, with an average life expectancy of 81.2 years, live on average 4.8 years longer than men, at 76.4 years. While some may see this purely as a blessing, it does present a financial challenge for today’s women. Namely, women may need to save more for retirement than men in order to account for these additional years. Here are five things women can do to help address this added financial challenge: Continue reading “Living Longer May Not Be All Good News For Women”

The Changing Landscape of Health Insurance

October 29, 2014

Now that we are in the midst of open-enrollment season, this is a great time to start looking at how the trends in health insurance may impact you and your family. In the last few weeks, Wal-Mart has announced that they will no longer offer health insurance to certain part-time employees. Other large employers are rolling out new plans that will either charge a steep premium to cover spouses that have coverage available at their employer, or they are not offering coverage to those spouses with their own option at all. In addition to all of this, there is an undeniable trend towards high-deductible health plans paired with a Health Savings Account (HSA). Continue reading “The Changing Landscape of Health Insurance”

Social Security Myth #5: You Only Receive A Spousal Benefit If You Are Married When You Retire

October 22, 2014

In my last blog post, I addressed the myth that Social Security benefits are based on an accumulation of assets and that collecting a spousal benefit would reduce the amount a spouse would otherwise be eligible to receive. This brings up another myth that is circulating out there that suggests that one has to be married in order to collect a spousal benefit. That is not the case. Continue reading “Social Security Myth #5: You Only Receive A Spousal Benefit If You Are Married When You Retire”

Social Security Myth #4: Collecting a Spousal Benefit Reduces the Amount Your Spouse Will Receive

October 15, 2014

One of the most valuable aspects of the Social Security formula is the accrual of spousal benefits for couples that have been married for at least one year at the time they file for benefits. However, some think of these benefits as a pool of money that somehow is split between the two of them. For this reason, they sometimes fall under the misconception that if one of them starts to collect a spousal benefit, the other’s benefit will be reduced. Continue reading “Social Security Myth #4: Collecting a Spousal Benefit Reduces the Amount Your Spouse Will Receive”

Social Security Myth #3: You Will Lose Benefits If You Collect While You Are Working

October 08, 2014

In my previous two blog posts, I’ve addressed the myths of Social Security insolvency and calculating Social Security using final average earnings. Next up is a myth concerning the receipt of benefits while employed. Most of us know that the earliest we can collect a Social Security retirement benefit is age 62, but that doesn’t mean most of us plan to stop working by then. For this reason, I am often asked about the implications of collecting a Social Security benefit while working. Continue reading “Social Security Myth #3: You Will Lose Benefits If You Collect While You Are Working”

Five Myths About Social Security: Myth #2 – Social Security Is Based on Your Last Five Years of Earnings

October 01, 2014

Last week, I addressed the first myth about Social Security benefits, namely that they won’t be there by the time you’re eligible to receive them. For this week’s post, I’d like to address another common myth related to how benefits are calculated: Benefits are based on your last five years of earnings. Continue reading “Five Myths About Social Security: Myth #2 – Social Security Is Based on Your Last Five Years of Earnings”

Things You Need to Know About Social Security: Will It Be There?

September 24, 2014

When I facilitate a workshop or webcast on retirement planning, I like to poll my audience to see which areas of retirement planning they would prefer to spend more time talking about. The audience generally ranks saving and investing for retirement as their top two choices but depending on who is in the audience, Social Security may rank as third. Even when it doesn’t, I find it amusing that a government benefit that some are skeptical will even be there by the time they retire ends up being the topic that generates the most questions. I guess it’s because it’s a source of retirement income that many are familiar with yet so few truly understand. Continue reading “Things You Need to Know About Social Security: Will It Be There?”

Cyber-Thieves Strike Again: What To Do If You Are a Victim

September 17, 2014

Well, it’s happened again. Another national retailer has had its payment systems hacked. This and similar cyber attacks against corporations appear to be on the rise so as a consumer you will want to be especially diligent in watching your accounts for unauthorized use. The Consumer Financial Protection Bureau (CFPB) offers four steps you should take when you suspect that your debit or credit card information has been compromised: Continue reading “Cyber-Thieves Strike Again: What To Do If You Are a Victim”

Four Steps to Car Buying

September 03, 2014

This year my daughter is turning 16,and you know what that means. Buying and selling a vehicle can be one of the most intimidating financial transactions you will ever experience, but there is a plethora of information and advice out there to help even the most nervous consumer get through the process. Here are some simple steps you can take to acquire the car of your dreams: Continue reading “Four Steps to Car Buying”

We’re Not Gonna Take It Anymore! (Part 3)

August 27, 2014

Several weeks ago, I introduced the idea of challenging corporate financial policies that put the company ahead of the customer. I talked about how cancellation policies are not set in stone and how consumers have nothing to lose by requesting a refund of unused services despite what the cancellation policy says. Last week, I continued the discussion by challenging the notion that new-customer deals should only be available to new customers while existing customers should be satisfied with the status quo. For this week’s blog post, I’m taking on the notion that some deals are only good “for a limited time.” Continue reading “We’re Not Gonna Take It Anymore! (Part 3)”

We’re Not Gonna Take It Anymore! (Part 2)

August 20, 2014

Last week, I shared with you how cancellation policies can intimidate you into not asking for a refund when you do not intend on using a prepaid service. Another policy that drives me nuts and may be intimidating consumers into settling for less is the policy that it’s okay to offer better options to new customers only. Since when is it okay to treat new friends better than old ones? Continue reading “We’re Not Gonna Take It Anymore! (Part 2)”

We’re Not Gonna Take It Anymore! (Part 1)

August 13, 2014

One thing my daughter and I share in common is our affinity for 80’s rock music. From Def Leppard to Duran Duran, she loves the classics and one of her all-time favorite 80’s songs is Twisted Sister’s We’re Not Gonna Take It.  This song—an anthem for my generation—has inspired my attitude about many things, including money. In our current culture, we are conditioned to accept the financial policies of businesses without question but since when were we here to serve businesses instead of businesses serving us?  There’s a lot of competition out there for our money so when it comes to silly financial policies, maybe it’s time we STOP taking it! Continue reading “We’re Not Gonna Take It Anymore! (Part 1)”

How to Invest: A Tale of Two Investment Theories

August 06, 2014

My first exposure to investment theories was during an economics class I took in college. I was always sort of a geek when it came to graphs and numbers—which I guess explains my degree in statistics—so I was captivated when the professor drew an example of the efficient frontier on the chalk board. It made perfect sense to me. Continue reading “How to Invest: A Tale of Two Investment Theories”

4 Ways to Plan For Long Term Care

July 30, 2014

According to the American Association for Long-Term Care Insurance, over 70% of long-term care insurance policies are applied for after age 54. Maybe it happens after the kids leave the nest or perhaps when other goals like retirement are realized but I believe most people don’t start thinking about long-term care until they’ve experienced it through someone else.  I’ve had my share of experience dealing with long-term care but my most recent encounter with Patty Smith (name changed to protect the innocent) has made me realize why it is so important to plan for long-term care before it is too late. Continue reading “4 Ways to Plan For Long Term Care”

What’s the Deal With Car Reservations?

July 16, 2014

Oscar Wilde once wrote “Life imitates Art far more than Art imitates life.”  As though this statement needed any proof, my recent trip to a rental car agency proved to be a reenactment of a classic Seinfeld episode.  Several months ago, I reserved a minivan in anticipation of a family trip to the West Coast. Upon arriving at the rental car agency, I was told that there were no minivans available. How could this be?  They knew what I needed.  They knew when I would be there.  So why would they not have a car waiting for me?  Continue reading “What’s the Deal With Car Reservations?”

What Baseball Can Teach Us About Investing

July 09, 2014

This weekend, I watched my nephew play in a baseball tournament.  They played very well in their first game, outscoring their opponent by more than ten runs.  They played well in their second game too but an unfortunate mix up in fielding assignments when there were two outs cost them two runs late in the game that proved to be the difference. It was a hard loss and for the next few days, all I could think about was that one play. If only they had made that play they would have gotten out of the inning with the lead and quite possibly won the game. Continue reading “What Baseball Can Teach Us About Investing”

Is Robo Advising Right For Me?

July 02, 2014

There’s been a lot of buzz recently on the idea of investors using robo-advisors to manage their investment portfolios rather than human advisors.  If you are not familiar with the term, a “robo-advisor” is an online financial advisory service that uses a basic investment philosophy to create software programs that can manage a person’s investment portfolio automatically.  The argument for using this type of approach rather than a human advisor goes something like this: if an investment portfolio using fundamental investment strategies can be implemented automatically with a computer, then why pay for human involvement? Continue reading “Is Robo Advising Right For Me?”