HealthyLife Articles

Tag: Savings/Retirement

  • Know Your Rights With Rebates

    FINANCIAL HEALTH

    Person holding a bag of gifts.

    The holiday shopping season is here, and with it comes big sales and big purchases. Some stores and companies advertise big rebate offers to get you to buy. These offers may promise you a certain amount of money back, either immediately or after you send in a form.

    Usually, you buy the item, fill out and send in some paperwork, and wait for the rebate money to come in the mail. You probably need the sales receipt, a form and the packaging from the item. Sometimes you get a rebate within a month, but many rebates take longer – up to 12 weeks.

    The Federal Trade Commission says people should beware of rebates that take too long to show up – or never come at all. Companies are required by law to send the rebate within the promised timeframe. If there’s no timeframe listed, the timeframe is usually 30 days.

    Follow these tips if you buy a product with a rebate:

    *  Make sure you follow all the steps on the rebate form. Enclose all of the required paperwork.

    *  Make a copy of all your paperwork. You’ll want these records if your rebate doesn’t show up or if there’s a problem.

    *  Keep track of the date you sent the rebate. Contact the company if your rebate doesn’t show up when they promised it.

    If your rebate is late or never shows up, you can file a complaint. Contact the Federal Trade Commission, your state Attorney General or your local Better Business Bureau.

    © American Institute for Preventive Medicine

  • Reevaluate Your Budget

    FINANCIAL HEALTH

    Women working on a budget.

    Following a monthly budget is one of the best ways to manage your finances. A budget provides a clear picture of where your money comes from and where it is going.

    Budgets change over time. Changes in your income, expenses, or spending can create an imbalance or even a surplus. If it’s been a while since you reviewed your budget, it may be time for a checkup.

    Record all income

    Add up all your sources of income in a month. These can include paychecks, child support, and government benefits. The total of all money coming in counts as income, whether it came from a traditional paycheck or not.

    Record all expenses

    Add up all the bills you must pay. These include housing costs, car payments, utility and phone bills, child support, debt payments, etc. Most bills are recurring each month.

    Evaluate spending

    In addition to bills, you also need to allocate money for food, gas, and sundries. This is where spending can quickly get out of control. Review three to six months of spending in each category and determine what a reasonable monthly amount should be.

    Consider saving goals

    Assess the state of your savings. Ideally, you should have several months of expenses in a savings account as a safety net. Determine if you need to allocate more money in this area.

    Make a long-term plan

    Financial stability requires long-term thinking. Reflect on your long-term financial goals such as college savings, retirement, or big expenses. Is your current budget working?

    Adjust budget

    Using the information you’ve gathered, update your budget to accurately reflect your current income and expenses. If you have extra at the end of the month, consider increasing your saving goals or long-term financial plans.

    © American Institute for Preventive Medicine

  • Resolve To Get Ready For Retirement

    Financial Health

    It’s never too early or too late.

    Whether you are in your 30s, 40s, 50s, or even your 60s, plan for your retirement. Research shows that people who think about and plan for retirement save more than those who don’t.

    Add up all sources of monthly income.

    *  Social Security. Find out how much you will get, monthly, from the Social Security. This depends on your work history and if you choose to start getting benefits at age 62 or your full retirement age (65, 66, or 67) or wait until age 70. A yearly statement mailed to you gives this information. Or, find out from Social Security benefit calculators atwww.socialsecurity.gov/retire2/index.htmandwww.socialsecurity.gov/planners/index.htm#a0=1. Do the same for a partner who will also receive Social Security benefits. In general, the amount you receive for Social Security retirement accounts for about 40 percent of your pre-retirement earnings.  $____

    *  Private pensions from all employers  $____

    *  Personal savings. This includes money you have  in the bank and earnings on 401(k)s, 403(b)s,  traditional and Roth IRAs, and other investments:  $____

    *  Cash value life insurance. These are whole life or variable life policies.  $____

    *  Part-time income you and/or your partner expect to make.   $____

    Total monthly sources of income:   $____

    You do the math:

    Total monthly income needed:  $______

    Subtract total monthly sources of income:  – $______

    How much you’ll need to make up for each retirement month:  = $______

    Plan, now, ways to earn and/or save more for retirement.

    Figure out how much you’ll need.

    According to the Employee Benefit Research Institute, 56 percent of workers have no idea how much they need to save for retirement. On average, people need at least 70 percent of their yearly pre-retirement income. This can vary, depending on your age and needs. You will need more if you need to pay for your medical care. To estimate how much you might need, use a tool atwww.choosetosave.org/ballpark. Other calculators to help you plan can be found atwww.choosetosave.org/calculators. Include estimates for health care and other costs, such as a new car and home repairs. {Note: It will be easier to get a car loan if you buy the car while you are still employed.}

    Total monthly income needed:  $____

    Action Step

    Make an appointment with a financial planner at work or on your own to discuss retirement saving options that best meet your needs.

    Ways to Well-Being book by the American Institute for Preventive Medicine. www.HealthyLife.com. All rights reserved.

    © American Institute for Preventive Medicine

  • Find Unclaimed Money

    WELL-BEING

    Image of the word 'Scam' spread across money.

    Uncle Sam may actually owe you money. How? If the government owes you money, and you do not collect it, it becomes unclaimed money. This can happen because of bank or credit union closures, investment funds, pensions, tax refunds, or savings bonds, among others.

    But before you assume that there has to be unclaimed money out there for you, beware, says USA.gov, a government information website.

    There are people out there who will contact you, claim to be the government, saying they will send you unclaimed money for a fee. This is a scam. Legitimate government agencies will not contact you about unclaimed money or assets.

    Right now, there is no single government site for finding unclaimed money by name, social security number, or state. You need to visit each site separately and perform a search.

    After searching, if you are owed funds, there will be instructions and steps to follow to collect your money.

    For more information on unclaimed money, or other government resources, visitUSA.gov.

    © American Institute for Preventive Medicine

  • How To Set Up An Emergency Fund

    FINANCIAL HEALTH

    Image of money in savings jar.

    An emergency fund is a great way to save yourself from financial disaster. It gives you peace of mind when unexpected expenses come up. And, it may help keep you out of debt when you need extra money for an emergency. People who don’t have emergency funds may have to turn to high-interest loans or more credit card debt.

    It can be difficult to set money aside when it’s being used for other day-to-day things. But, it is possible to do with a little discipline and planning. Here’s how:

    *Make it automatic.Have some money automatically put in a separate account with each paycheck. Even if the amount is small, it can add up over time. An automatic transfer is more convenient than doing it yourself. You may find that after a while, you don’t miss that extra money. You learn to get by without it.

    *Make it a priority.Pay your emergency fund first, before you use your paycheck for non-necessary items. Make a budget that doesn’t include your emergency money. This will ensure your bills and other necessities get paid without skipping your emergency fund payment.

    *Use a bank or credit union savings account.These are easier to access in an emergency than savings bonds, mutual funds or certificates of deposit (CDs). But, don’t put it in your regular checking account, where you may be tempted to use it for a non-emergency.

    *Keep the account totally separate.Make sure that account is for emergencies only. Make it a savings account instead of checking. Be sure the account doesn’t include fees or penalties.

    *“Do I need this?”Cover your credit card with a savings message to reduce non-essential spending.

    Creative ways to save

    Think of little ways you can change your daily routine to save money. You’ll be surprised how much you can save!

    Put away $.50 a day in loose change.

    Monthly savings: $15

    Yearly savings: $180

    Skip the coffee out and bring your own from home.

    Monthly savings: $80

    Yearly savings: $960

    Bring your own lunch 3 days a week instead of eating out.

    Monthly savings: $96

    Yearly savings: $1,152

    Eat dinner at home 2 more times per month.

    Monthly savings: $40-80

    Yearly savings: $480-960

    Source: Consumer Federation of America

    © American Institute for Preventive Medicine

  • Questions To Ask Before Choosing A Financial Planner

    FINANCIAL HEALTH

    Image of women writing different types of investments.

    1. How are you paid? Is it by a fee and commission? Do you fully disclose the fees and the commissions you earn on every investment you make or service you offer? If paid by fees, what is the average fee your clients pay?

    2. How many years have you been in the business? How long have you been a financial planner?

    3. Can you give me some references of people you have worked with for more than two years?

    4. What is your typical client like? Income levels, issues, investment amounts?

    5. What training did you have to be a planner? What requirements were needed to attain this degree or title?

    6. How many hours of continuing education must you have to keep your degree/designation?

    7. What does a completed financial plan look like?

    8. What is the most important difference your work made in someone’s life?

    9. How many clients do you have?

    10. How many support staff do you have? What are their credentials?

    11. Do you have a privacy statement?  May I have a copy?

    12. Is there an agreement among you and your staff to keep information confidential? Have there ever been any violations of that agreement?

    13. Do you have a copy of your Form ADV (a required disclosure form from the securities authorities)? Have you been responsible for any securities violations?

    14. Do you have a formal contract to define the responsibilities of the clients and those of the planners? Does it also address a protocol to settle differences and to terminate the relationship? How long does the contract last?

    Answers you will get to these questions can vary suggests Lynn S. Evans, CFP, author of Power of the Purse: Fear-Free Finances for Baby Boomer Women. You may have other questions that are important to you. Examples include if the offices are nearby and if you can communicate by email).

    A question regarding the planner’s investment performance is absent. For good reason: the planner’s average return on an investment is not the key to his or her success. The ability to meet the clients’ goals is what really counts.

    Lost without cyberspace?

    What if you couldn’t get a Wi-Fi signal on your smartphone? How anxious would you be if you forgot your phone or lost it? Worry about not being able to see instant news and weather? Or freak about a low battery? If you say yes, you may be a nomophobe (that’s having no mobile phone phobia), according to Iowa State University researchers, in the journal Computers in Human Behavior. Take the 20-question test and judge for yourself atwww.news.iastate.edu/news/2015/08/26/nomophobia. It’s not an addiction but an obsession, they say.

    © American Institute for Preventive Medicine

  • Retirement: How Are You Going To Do That?

    FINANCIAL HEALTH

    Image of middle-aged women.

    A secure and worry-free retirement is a cherished dream for millions of us. What will it take for you to achieve that dream? The experts say –

    Save more than you think.Most people have not tried to estimate how much money they will need for retirement. And those who have, usually underestimate the amount they need.

    Know when you will retire.Many working Americans will retire before they expect to, and before they’re ready.

    Plan to live a long life and spend accordingly.Some retirees will live well beyond their life expectancy, with a great risk of outliving their savings.

    Face facts about long-term care.Many people underestimate their chances of needing long-term care. Explore lower-cost plans now.

    Understand your options.Should you take a pension in a lump sum or as a lifetime annuity? Talk with a financial planner (and your doctor) to decide the best option for you.

    Understand your investments.Due to the growth of workplace retirement savings plans, employees are now managing investments for retirement. Need help? Get it from a trusted financial adviser.

    Seek sound advice.Many retirees and pre-retirees do not seek the help of a “qualified professional.” Yet they indicate a strong desire to work with one.

    Know where your retirement income is coming from.You may be disappointed in retirement if you try to live on the income that’s available.

    Deal with inflation.Inflation is a fact of life. After retirement, you won’t be getting pay increases.

    Provide for a surviving spouse.Many married couples fail to plan for the eventual death of one spouse before the other. This can have serious consequences, especially when the survivor is the wife.

    Source: Report from LIMRA International, the Society of Actuaries and Matthew Greenwald & Associates, with research sponsored by the Society of Actuaries Committee on Post-Retirement Needs and Risks

    © American Institute for Preventive Medicine

  • Save Money On Health Expenses

    FINANCIAL HEALTH

    Image of stethoscope and money on top of paper work.

    Unexpected health care costs can be hard on any budget. To help manage your own health care costs:

    *Get preventive care.Well visits and checkups often cost a lot less than treating a disease or illness. Talk to your doctor and dentist about how often you should be seen, and stick to this schedule.

    *Use generic medicines.Name brand medicines can cost hundreds of dollars more than generic ones. Ask your doctor if a generic medicine is available for your condition. Tell your doctor if you are having trouble paying for medications. Drug makers sometimes offer coupons or savings cards for people who need them.

    *Shop around for your prescriptions.Medicine costs can vary widely among pharmacies. Call pharmacies and ask for the cost of your prescription medicine. Some websites also have prescription medicine costs available for pharmacies in your area. You may also wish to look into mail-order pharmacies.

    *Check your medical bills.Make sure there are no mistakes on your doctor, hospital or prescription bills. And, be sure your insurance covered services it is supposed to cover. If you have questions, or think you may be over-billed, call the number listed on your bill.

    Source: Consumer Federation of America

    Watch those late fees!

    A few dollars here, 20 dollars there… late fees can add up. Whether it’s your credit card bill or a service you received, make an effort to pay your bill on time. Avoid late fees by getting bills set up on automatic payment plans. Or, have a special slot on the wall to place bills that haven’t been paid. Then, they won’t get buried under junk mail or other papers on your desk.

    © American Institute for Preventive Medicine

  • Save More, Spend Less

    FINANCIAL HEALTH

    Image of women at kitchen counter with groceries and placing money in a piggy bank.

    According to the American Psychological Association, finances are the number one cause of stress in America. Whether it’s meeting the monthly bills or trying to build a retirement fund, financial worries can be difficult to deal with.

    If you’re looking for ways to stretch your monthly budget, the Federal Trade Commission offers some tips that may help you save more and spend less without feeling the pinch.

    Start with a budget.

    This may not be fun, but it doesn’t have to be long and difficult. You can use something as simple as a two-column sheet of paper. In one column, write your net income for the month. In the other column, record all your expenses: basic monthly bills (mortgage, food, transportation), lifestyle choices (entertainment, eating out, personal care, pets), and other expenses. This will give you a clear idea of how much you need to save or cut back on spending. The FTC website offers a free budget worksheet atwww.consumer.ftc.gov/articles/pdf-1020-make-budget-worksheet.pdf.

    Consider direct deposits into savings accounts.

    Have part of your paycheck go directly into a 401 savings or other type of retirement account. Have additional money put into another savings account for an emergency fund and major expenses as needed.

    Pack lunches.

    A daily $6 spent on lunch adds up to $800 a year. Instead, make extra food for dinner and take leftovers or make your own sandwich. Or, purchase healthy frozen meals when they’re on sale.

    Use free community services.

    Most cities have well-stocked libraries that have books, magazines, music, games, and movies. You can check these items out for free.

    Know that every little bit helps.

    Make small, manageable goals to help you save. Even just $1,000 less on your credit card bill could save you hundreds of dollars in interest each year. Eating out one fewer time each week adds up to big savings in a few months. Rather than being discouraged by a goal that seems impossible, look for small, doable ways to save a few dollars here and there.

    © American Institute for Preventive Medicine

  • Tips To Save On Your Summer Vacation

    FINANCIAL HEALTH

    Image of family about to go on a road trip.

    You want your vacation to be memorable, but you probably don’t want to remember spending a lot of money. With some advanced planning, you can save a good amount of your travel and vacation expenses. Here’s what travel experts recommend:

    *Don’t pick prime times for flights.If you’re flying, you’ll usually pay less for airline tickets during off-peak times. This means flying during the middle of the week, early in the morning or late at night.

    *Be flexible.When booking airline tickets, choose the flexible dates option to find the lowest price for airfare. Sometimes, the savings can be substantial.

    *Visit during the off-season.Many people travel to warm, tropical destinations during the winter months. Try going during the late fall or early spring instead.

    *Check out renting a house.Many destinations offer houses for rent at about the same price per night as hotels but with much more space. When you share with another family, you split the cost for even more savings.

    *Look for online deals & coupons.Look online for local activities you want to do, such as visiting museums or scuba diving excursions. Many places offer deals or coupons if you book in advance. You may also be able to avoid lines for buying tickets.

    *Don’t forget your discounts.Companies like AARP and AAA often have discount rates for members. Some employers have discounts available to employees for car rentals and other vacation items.

    *Pack snacks.Pack healthy snacks in a cooler for a car trip like fresh-cut fruits and vegetables. For flights, bring your own food to the airport and eat before getting on the plane. Keep in mind liquids more than 3.4 ounces can’t be taken through the security checkpoints.

    *Get a kitchen.Look for hotel rooms that have a full kitchen so you can store food and beverages, cook your own meals and avoid the higher costs of eating out.

    *Try camping.Instead of traditional hotels, look for campsites. Camping often costs a fraction of what a hotel costs, as long as you have a tent, mats to sleep on and a few more basic camping supplies.

    *Look nearby.If the prices of airline tickets and hotels aren’t in your budget, look for daytrip options. Destinations within 2 hours of home are often doable for families and can be just as fun as a longer trip.

    © American Institute for Preventive Medicine