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Saving

Mar 04
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Women Need To Put Away More Money For Retirement Than Men

By Investments, Money Management, Retirement, Saving, Women's Wealth No Comments

The U.S. is facing a massive retirement crisis, with a whopping $13 trillion retirement savings shortfall.

The retirement savings crisis is even more severe for women since they face a gender-pay gap and will likely live longer.

That means women need to be saving more than men. The goal should be 8 to 10-times an annual salary.

“[That’s] what you need if you want to spend 90% of your pre-retirement levels annually. It’s a bit more than you hear at the majority of investment firms, but we want you to retire like a boss — more travel, more fun,” says Sallie Krawcheck, the CEO of women-led digital investing platform Ellevest on a new episode of MAKERS Money. “And, since we women live longer on average it’s better to have a bigger cushion. Yes, in this case, bigger is better.”

On the fourth episode of MAKERS Money, Krawcheck presents steps that women can take to increase their likelihood of having more money in retirement, including investing in a diversified portfolio and asking for a salary increase.

On the show, she’s joined by Tanya Van Court, the CEO of Goalsetter, an online saving and gifting platform to help kids save. According to Van Court, women need to put themselves in a position for a raise.

“[Women] need to have those conversations about how much they want to make, but not only how much they want to make, but what the clear expectations are that will get them to that point to be deemed successful,” says Van Court.

“I completely agree,” says Krawcheck.

Krawcheck spent nearly 30 years on Wall Street, holding high-level positions including CEO of sell-side research firm Sanford Bernstein, CEO of Smith Barney, CFO of Citigroup, and president of global wealth and investment management at Bank of America Merrill Lynch.

Last month, feminist media brand MAKERS and Yahoo Finance launched “MAKERS Money,” a weekly show hosted by Krawcheck that features advice for women from top female financial experts.

 

Originally appeared on Yahoo Finance!

Feb 28
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How to Take Your Financial Future into Your Own Hands

By Money Management, Retirement, Saving 2 Comments

By Katie Bryan, America Saves Communications Director

America Saves Week, February 26 – March 3, 2018, is the perfect time to review your finances, set your savings goals for the year, and set up a system that will allow you to save automatically. That’s why the America Saves Week theme is – Set a Goal. Make a Plan. Save Automatically.

Did you know that only half of Americans report having good savings habits? Even if you are already saving, it’s good to take a look at your greater financial picture and decide whether there’s potential to save more or set a new savings goal. Join thousands of others who are pledging to pay down debt, save money, and take financial action during America Saves Week.

Not sure what to save for or what to save for next? Here are the most popular saving goals of those who have pledged to save through America Saves:

  • Save for Emergencies – Research has shown that low-income families with at least $500 in an emergency fund are better off financially than moderate-income families with less than this amount. Nearly a quarter of savers who have taken the America Saves pledge have chosen “emergency savings” as their first wealth-building goal. Learn more.
  • Save for Retirement – Retirement savings is a top priority for many savers. Saving for retirement now will ensure that you have enough money to maintain a comfortable standard of living when you stop or reduce the amount of hours you work. Learn more.
  • Save for Education – Saving for education is the second most popular goal savers select when they pledge to save with America Saves. There are many different things to factor in when saving and paying for college. Learn more.
  • Pay Down Debt – Getting out of debt is the #3 goal savers select when they pledge to save. The good news is that there is hope. With planning, discipline, patience, and maybe some outside help, almost anyone can reduce their debts and start to accumulate wealth. Learn more.
  • Save for a Home – For decades, home ownership has been the main path to wealth for most Americans. Today, home equity – the market value of a home minus the balance on any home loans – represents more than four-fifths of the typical family’s wealth. Learn more.

Not sure how to save for your goals? Here are some saving strategies to help:

  • Save Automatically – The easiest and most effective way to save is automatically. This is how millions of Americans save at their bank or credit union, and how millions of employees save through 401(k) and other retirement programs at work. Learn more.
  • Save at Tax Time – Do you spend weeks eagerly anticipating your tax refund? When the money finally comes in, is it gone tomorrow? Many people view tax refunds as unplanned bonuses. They see the money as a gift from the government, to use for splurges or treats. But a tax refund provides the opportunity to improve your financial situation.  Learn more.

Take the America Saves Pledge, or re-pledge, today to set your savings goal and make a plan to save. When you take the Pledge, you can also choose to receive text message tips and reminders to help you save for your goal. And don’t forget to follow America Saves on Facebook and Twitter.

 

America Saves Week is coordinated by America Saves and the American Savings Education Council. Started in 2007, the Week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status.

Feb 16
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13 Easy Ways to Improve Your Finances On Your Lunch Break

By Insurance, Investments, Money Management, Saving No Comments

If you work full time, you know how hard it is to keep up with all the little things outside of your job. But have you tried putting your lunch break to good use? Instead of spending the hour chatting at the watercooler while you munch on a snack from the vending machine, grab something healthy and use the rest of the time to tackle some important odds and ends – like your finances. Below, we share 13 tasks that you can accomplish over lunch that will help you build a better financial future.

1. Pay your budget a visit

Check your budget from time to time so that you can visualize the progress you’re making toward paying down debt or saving. Make it a habit.

“This will help you stay on track and help you feel motivated to keep working hard toward reaching your goal,” said consumer finance expert Andrea Woroch.

She suggests using an app like Mint, which links all of your financial accounts in one place and provides a real-time snapshot of your spending and saving habits.

2. Write down your goals

Rather than just thinking about your financial goals, write them down in a diary or on a vision board. “You’re more likely to stick to your budget if you write down your plans and are specific,” said Marshay Clarke, a certified financial planner at Betterment, a financial advisory site. Make sure to revisit your goals periodically to stay on track.

3. Open a savings account

You’re more likely to save money if you have somewhere to put it. During your lunch break, you can easily open a savings account at your current bank or with an online bank that offers a high-yield savings account. While you’re at it, set up a recurring monthly transfer from your checking account for automatic savings.

4. Save with ease

There are apps that help you save and take minutes to set up. Dr. Elizabeth Dunn, co-author of the book “Happy Money“, is an adviser for the Joy app and their free FDIC-insured savings account. The app allows users to automatically save extra cash without having to do much extra work. “This is important because just adopting the goal to save money doesn’t seem to change people’s financial behavior,” Dunn said. “But getting a little nudge to save a manageable amount of money can make a difference.”

Other apps that allow you to save incrementally are Digit and Qapital. Digit will recommend how much you should save, based on your spending habits and financial obligations, whereas with Qapital, you create your own saving rules.

5. Earn more

If cash is really tight, or you want to save for a large purchase, maybe it’s time to pick up a side hustle with Fiverr or TaskRabbit. Plenty of people have been known to use their lunch hours to pick up riders as Uber or Lyft drivers, too. Put those extra funds toward a future goal, like a vacation or down payment for a new home.

6. Get familiar with your insurance

If something unforeseen should happen in your home, like a fire or a robbery, do you know what you’re covered for? If not, take a few minutes to find out so that you’re not caught off guard should something occur. No insurance? Research policies online over lunch.

7. Sign up for credit monitoring

Knowing your credit score is important because it can positively or negatively affect your ability to secure a loan, qualify for certain credit cards and, in some cases, get a job. A free service like Credit Karma or Credit Sesame will monitor your score and send you emails if something is amiss.

8. Think about the future

Use an online retirement calculator to determine if you are saving enough for your long-term goals. If you’re falling short, consider increasing your 401(k) elections from your paycheck, or set up an automatic deposit from your bank account to your investment account.

Also, check your retirement account online and make sure your beneficiaries are in order. It only takes a minute to add a beneficiary and you’ll have peace of mind that your funds will go to the right person(s) if you were to pass away.

9. Review your paid subscriptions

Review those subscriptions you’re being billed for each month. You might be paying for things that you rarely, or never use. If those New Yorker magazines are piling up, or you can’t remember the last time you listened to Amazon Music, it might be time to cancel.

10. Negotiate with service providers

Call your phone or internet provider to see what promotions they are offering. Or, contact your credit-card provider about a possible APR reduction. If you have good credit, you might be in luck.

11. Review your credit card statements

Do you blindly pay your credit-card bills each month? Even if you use autopay, you should take a few minutes each month to scan your statements to ensure that all of the transactions belong to you and are accurate.

12. Get fit

Take a walk or attend an exercise class. Health care is expensive, and the better you take care of yourself, the better your chances of avoiding costly medical bills. Some life insurance providers offer reduced rates to customers who show a certain level of fitness activity on their fitness trackers. Fitness can pay!

13. Sharpen your financial skills

Skip the digital Solitaire or Candy Crush and read a financial book, like The Wisdom of Finance by Mihir Desai. Doug Kinsey, certified financial planner and Partner at Artifex Financial Group, enjoyed the book so much that he took Desai’s Harvard HBX Course, Leading with Finance, which you can complete online.

“Another helpful HBX course is Economics for Managers,” said Kinsey. “Either one of those courses will help almost everyone by providing greater insight into how the world works from an economic and financial perspective.”

Clarke recommends the financial books Rich Dad Poor Dad, by Robert T. Kiyosaki, and A Random Walk Down Wall Street by Burton G. Malkiel. So take a look at those, too.

Also check out the financial book Financial Fornication by Tarra Jackson.

MagnifyMoney is a price comparison and financial education website, founded by former bankers who use their knowledge of how the system works to help you save money.

Originally appeared on WWLTV.com. 

Oct 15
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3 Retirement Savings Tips For Millennials

By Money Management, Relationships, Saving No Comments

A typical high school curriculum offers anything from the traditional subjects – language arts, algebra and U.S. history – to the not-so-traditional subjects, such as gardening, therapeutic dance and business technology.

But despite all those academic options, the educational system is leaving a void in the lives of many students, says CERTIFIED FINANCIAL PLANNERTM professional Eric Hutchinson.

“One thing not being taught in schools is how to manage money and prepare for retirement,” says Hutchinson, author of the book The Financial Briefing. “A lot of students are leaving high school without knowing what they need to know.”

As a result, Hutchinson says that many students – whether they attend college or go straight into the workforce after high school – don’t grasp how important the time factor is when it comes to saving for later in life. Too many people wait too long to start stashing away money for retirement, so that their retirement fund ends up being tens or even hundreds of thousands of dollars less than it might have been.

“If you take the right actions early in life, it will make your retirement much easier,” Hutchinson says. “It’s a whole lot harder to play catch up.”

Hutchinson offers some tips for those young people entering the workforce so they aren’t left with little or nothing once their careers are complete.

Think about saving before a life event forces you to.

Hutchinson says that often a major life event will cause people to begin thinking new thoughts about their futures. The event could be a death in the family, being laid off from a job or a debilitating injury. Hutchinson says it shouldn’t take a major life event to remind people to begin to build a nest egg to ensure the financial security of their families.

Technology can’t replace the human touch.

For all the convenience that technology provides us, it still can’t replace the experience of a connection with another person. An experienced personal financial advisor can ask the right questions, provide ongoing guidance, and be an important resource for those who want to plan for retirement, Hutchinson says. A computerized robo advisor or even a live advisor supporting a robo advisor service often doesn’t deliver the same depth of advice or relationship.




Don’t abandon the ride. Let time be your ally. 

Most people have been on a roller coaster. Even though the downhill plummet can be a little scary, most people don’t choose to jump off the ride, although they may think that thought! Investing in the stock market* with retirement savings can be a similar type of ride. There will be plenty of ups and downs, but the descent is no time to jump off, even if you do get jittery. Market history suggests that eventually things may work out, if you allow enough time. “Although past performance doesn’t guarantee future results, time can be an extremely valuable asset for a young person making retirement investments,” says Hutchinson. “Even with the worst of circumstances, people may be OK. As an example, 2008 was one of the worst periods for the stock market since the great depression. By the end of 2010, stocks had recovered enough to erase most of the damage done in the fall of 2008.”

“If you are trying to get rich overnight, it can be a high-risk proposition,” Hutchinson says. “Too many people are looking for instant gratification. Money and life don’t work that way.”

*Equity investing involves market risk, including possible loss of principal.

Eric Hutchinson (http://erichutchinsonfinancial.com) is a Certified Financial Planner™ with more than 30 years of experience in the areas of financial planning, investments, estate and tax planning. Hutchinson has professional affiliations with The Financial Planning Association, the Certified Financial Planner Board of Standards and the Investment Management Consultants Association. His new book The Financial Briefing, distills time-tested wisdom based on decades of professional experience and provides an overview of many of the financial and life issues everyone will face at some point.

Oct 01
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5 Money Tips for College Freshmen

By College, Money Management, Saving No Comments

As a college freshman, you are about to embark on an exciting and new adventure of college life.  This great experience requires new responsibilities. So, here are 5 Financial Tips for College Freshmen.

Protect Your Credit Cookies!

One of the most precious and valuable assets that you will have in your life is “Good Credit.”  Your credit history and credit score will either make it easier for harder for you to get what you need or want, like your first apartment, your first car, your own cell phone account, etc.  So don’t just let anyone look at your credit, regardless of the minuscule discount or cheap give away gift you’re offered. Also, avoid getting loans that you will not be able to afford to pay.

[ctt template=”8″ link=”a86pl” via=”yes” ]Don’t just let anyone look at your Credit Cookies! – #MoneyTipsForFreshmen[/ctt]

Use Used!

Used Text Books are the BEST!!!  Trust me. Not only are they more cost effective and less expensive than new text books, but you might get lucky and get a text book with highlighted information by students who previously took the class.

Be a Financial Techy

Don’t just use technology for Social Networking.  Use it to help you manage your bank accounts to avoid unnecessary and excessive fees. Set up online banking and account balance alerts to text or email you when your account balances reaches a certain dollar amount.  This will not only help you stay on target with budget, it will also help you avoid those pesky overdraft fees.

You can also manage your accounts and create a budget using the Mint app or at Mint.com.

Be a Coupon King or Queen

Don’t be the one that eats ramen noodles all semester.  Master the art of virtual couponing. Websites like Groupon.com offer deals on dining out and other services that can help you maintain your budget. You can also take those unused gift cards you don’t want and trade them for cash on sites like Raise.com.

Also get a grocery store discount card to add coupons to it through their website.

Saving is Sexy! 

Being broke or begging for money is not Hot!  But … Saving is Sexy!  Make sure you set aside at least 10% of your income from your job, money from parents, or monetary gifts and put it in a savings account for emergencies or for monthly splurging.  Saving early ensure financial security later.

[ctt template=”8″ link=”ZjJ4b” via=”yes” ]Being Broke is Not Hot! But … Saving Is Sexy! – #MoneyTipsForFreshmen[/ctt]

By following these five easy tips you will be the envy of your broke friends!  Best wishes.

Sep 22
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The Secret To Being A Great Saver

By Investments, Money Management, Saving No Comments

“What’s the difference between ‘paying yourself first’ and saving money?” — Ayesha

Paying yourself first is a way to save money. In fact, it’s the best way to save money.

The trick is that rather than setting extra money aside, you’re saving for yourself and your future goals right away, before spending the rest on non-essentials. Treat the savings goal like an important bill — just like your rent or mortgage — that must be paid every month. The only difference is it’s a bill you pay to yourself.

“Anybody can save the remnants of a paycheck after they’ve spent most of it,” says George Galat, a California-based financial adviser.

“[Paying yourself first] is purposeful, proactive and implies a level of progression toward a collection of goals,” says Galat.

Here are a few ways to pay yourself first — without feeling like you’re making a big sacrifice.




Set up automatic payments

A common obstacle to saving your money is that the amount you planned to save tends to dwindle toward the end of the pay period.

“The reality is that some competing interest always comes up to reduce if not eliminate well-intended savings,” says Howard Pressman, a Virginia-based financial adviser.

Related: What In The Wealth is an Annuity?

That’s why one of the principles of paying yourself first is to set up automatic payments into accounts set aside for retirement, debt repayment, or emergency savings. That way you don’t have to consciously think about choosing to save, and won’t be tempted to spend it first.

“If one has automatic savings taking place into the 401(k), Roth IRA or a sweep from checking to savings, it’s going to get done,” Pressman says.

Max out your 401(k) (if you can)

One of the first areas of your financial life you should pay attention to is your retirement savings.

But most people still aren’t saving enough. One in four workers have less than $1,000 saved for retirement.

Setting aside 10% or 15% of your income may seem daunting, but is not as impossible as it might seem.

When Jon Haagen, a New York financial adviser, asks people if they can save 15%, they usually disagree. However, when he rephrases to ask whether they might be able to live on 85% of their income, most say that they can.

“The second way of asking seems less daunting,” he says.

Change your mindset

Once you decide to pay yourself first, you may feel like you have a lot less money at your disposal than you once did.

The key is to change the way you think about your income, and accept that you need to — and can — live off less.

“It’s really about fooling your brain into thinking ‘this is how much I make and this is what I can spend,’ said Jeff Maas, a California-based financial adviser.

“Eventually you will adapt your spending habits to match your perceived income and it won’t feel like a chore or a sacrifice to save.”

 

Originally appeared on Money.CNN.com by Laura Sanicola @laurasanicola