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Saving

Sep 04
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Celebrate National College Savings Month

By College, Money Management, Saving No Comments

It’s no coincidence that September is National College Savings Month. Each year a child moves to a new grade reminds us that college will be here before we know it.

Have you started to save for college yet? It’s not too early — or too late — to begin. According to How America Saves for College 2015 by Sallie Mae® and Ipsos, parents saved an average of $10,040 last year — and those who planned saved 46% more for college than non-planners. If you’re wondering how to start, try following the Sallie Mae® 1-2-3 Approach to Saving for College:

  1. Open a savings account. Set up and designate a savings account as your college fund. Deposit gifts from friends and family, and sign up for free services that let you earn cash back to save for college.
  2. Make regular contributions. Set a goal and create a routine of adding money. Even a little bit adds up over time, and automatic deposits make saving easy.
  3. Explore tax-advantaged options. Put your money to work using dedicated college savings programs like Coverdell Education Savings Accounts, prepaid state college savings plans, and 529 college savings plans.

Use Sallie Mae’s College Planning CalculatorSM to help you determine your savings goal. This free tool will take you step-by-step through building a customized plan to save and pay for college.

Celebrate National College Savings Month by starting or adding to a college savings fund for your student. For more free tools and tips on saving and planning for college, go to SallieMae.com/CollegeSavingsMonth.

Encouraging Responsible Borrowing

Sallie Mae has helped more than 30 million Americans pay for college since 1972. We encourage students and families to supplement their savings by exploring grants, scholarships, federal and state student loans, and to consider the anticipated monthly payments on their total student loan debt and their expected future earnings before considering a private education loan.

Before investing in any 529 plan, please consider whether your or the designated beneficiary’s home state offers its taxpayers benefits that are only available through that state’s 529 plan.

© 2015 Sallie Mae Bank. All rights reserved. Sallie Mae, the College Planning Calculator, and the Sallie Mae logo are service marks or registered service marks of Sallie Mae Bank or its subsidiaries. SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America.

Sep 03
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10 Everyday Things That Cost More Than Term Life Insurance

By Insurance, Saving No Comments
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Adults and parents worry. We worry about our family’s health, safety, financial security and future. But more families need to put their money where their heart is by buyingterm life insurance. (This is the most affordable type when initially purchased and provides protection for a specific period of time or the “term”.) However, the issue isn’t a matter of hypocrisy, but a lack of research and financial literacy. According to a Life Happens and LIMRA study from this year, 65% of households have not purchased life insurance because they think it’s too costly.

To show that this is a common misconception, the study asked Americans to estimate the cost of a 20-year, $250,000 level term life insurance policy for a healthy 30-year-old male. Eight in 10 people overestimated the cost, saying it would be $400 a year, which is more than double its actual cost of about $160 a year or about $13 a month. Astonishingly, one in four thought it would cost more than $1,000 a year.

And just know that unless you have serious health issues, pre-existing conditions or high-risk hobbies that would likely necessitate high-risk insurance, getting affordable coverage is really straightforward.

How Much Is Life Insurance?
To put the true cost of term life insurance in perspective, here are 10 products or services that people regularly spend money on that cost more than a term life insurance premium would for a healthy 30-year-old at $13 a month.

  1. Food – According to the National Resource Defense Council, Americans waste about $529 per year, or $44 per month, on unwanted snacks and meals.
  2. Alcohol – According to the Bureau of Labor Statistics, the average American consumer spends 1% of their discretionary income on alcohol.
  3. Tobacco – For households with smokers, 14% of Americans’ incomes are spent on cigarettes.
  4. Gym Membership – The $30 per month you spend on a 24 Hour Fitness membership that goes unused could be better spent funding your life policy.
  5. Electronics – That new 55” LED TV that costs … (continue reading 10 Everyday Things that Cost More Than Term Life Insurance)
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Sep 02
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7 Smart Financial Moves for New (and Experienced) Parents

By Debt Management, Estate Planning, Insurance, Money Management, Saving No Comments
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It is important to plan for many of the important events in our lives, like marriage, children, as well as retirement and leaving a legacy for our family. As you plan for your significant life events, Matt Hoesley of LifeHappens.org shares some financial steps to help secure your financial future of your family.

Create a will and contingent trust. This is one of the most important first steps. Choosing a guardian for your children helps make sure they are raised by someone who you think will share the same values. A contingent trust helps ensure that the money your child receives from all of your hard work and planning is distributed according to your wishes instead of giving them complete control over everything the minute they turn 18.

Update beneficiary forms. Make sure you double check all of your retirement plans and insurance policies so something doesn’t fall through the cracks. Many accounts with beneficiary designations never pass through your will, so it is important that these are also updated.

Begin saving for college. There are various options available. You should consult a tax advisor and financial advisor to help determine what is best suited for your family’s financial situation. I opened a 529 plan for our daughter. The money in this plan can be used at almost any accredited higher education institute in the world.

Purchase life insurance. My wife and I both increased the amount of life insurance we have. We did a combination of term and permanent insurance to make sure we have the total amount we need at a price we can afford.

Buy disability insurance. When you are young, your future earning potential is your biggest asset. Get as much … (continue reading … 7 Smart Financial Moves for New (and Experienced) Parents)

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Aug 11
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5 things every Woman should know about … their Finances!

By Credit, Debt Management, Estate Planning, Insurance, Investments, Money Management, Retirement, Saving, Taxes No Comments
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Three in four adults agree that they could benefit from guidance and answers to everyday financial questions from a professional, do you agree with them too?1

Since women control or influence the handling of the household finances, here are five things every woman should know about their finances, including a few tips from New York Life to get you started on the path to Financial Freedom.

#1 Maximize your tax credits 2:

Each year the deductible amount you can contribute to a retirement account is increased for inflation, and there are catch-up contributions for those 50 or over.

  • You can receive a $1000 tax credit for each of your qualifying children, in addition to each dependent’s personal exemption. Don’t forget to take this credit-it’s like receiving $1000 tax-free in your pocket, as long as your income doesn’t exceed the limitations.
  • The child and dependent care credit will cover up to $3,000 of qualifying expenses if you pay a babysitter or day care center so you can work or go to school.
#2 Become a S.M.A.R.T. spender:

Set S.M.A.R.T. financial goals (Specific, Measurable, Achievable, Realistic and Time bound) and create a spending plan in 4 steps3:

1. List your income

2. Compare your income and expenses

3. List your expenses

4. List your resources and set priorities

#3 Develop a savvy investment strategy:

Finding the right mix of investments depends on your available assets, your financial goals, your time horizon, and your tolerance for risk. It is important to ensure a balance between three things: liquidity, return, and risk. Start systematically investing as soon as you are able so that a reasonable amount is saved, even after just a few years. The compounding effect can help to speed up your savings4.

#4 Know your credit score:

Based on the factors below you are assigned a credit score between 300 (low) and 850 (outstanding). Here are the main areas in which you are graded and given credit scores, and the approximate weight that each area is given5:

  • Payment history: 35%
  • Outstanding debt: 30%
  • Credit history: 15%
  • New credit and types of credit: 20%
#5 You are your most important asset:

For most people, human capital is the missing piece of their portfolio. You insure your car, in the event you get into an accident. You insure your belongings, in case they’re lost or stolen. Your biggest asset is your ability to get up every day and provide for your family, whether by working or being the primary care giver. How do you insure your biggest asset? Through life insurance products.

A financial professional is trained to help you select and recommend vehicles that are suited to your protect your specific needs. You might find that working with a trained financial professional can help you to make well-informed decisions and stick with your financial plan — it is important that this is someone you are comfortable working with.

Click here to learn more about how New York Life can help you educate yourself on financial matters and set you on the path to a secure future.

Article by New York Life Insurance Company:

1 The 2014 Consumer Financial Literacy Survey, The National Foundation for Credit Counseling, http://www.nfcc.org/NewsRoom/FinancialLiteracy/files2013/NFCC_2014FinancialLiteracySurvey_datasheet_and_key_findings_031314%20FINAL.pdf

2 http://www.wife.org/taxstrategiesforwomen.htm

3 http://www.pacer.org/publications/possibilities/make-a-spending-plan/68-make-a-spendingplan.html

4 Systematic investment techniques do not assure a profit or protect against a loss.

5 http://www.wife.org/features_bottomline_creditscores.htm

Apr 20
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How to Access Financial Freedom in 30 Days

By Insurance, Investments, Money Management, Saving No Comments
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financial freeFinancial Freedom means different things to different people. For some financial freedom may be having a significant savings for emergencies or retirement,  paying off debt and living debt free, or ownership of a home or business.  Whatever Financial Freedom may mean to us, individually; there is a common fundamental financial foundation that must be established.

How do you eat this Fundamental Financial Foundation elephant? One bite at a time.

In response to hundreds of people across the country asking for financial help in an easy to understand and implement manner,  Tarra Jackson, known as Madam Money, a seasoned financial executive and syndicated financial contributor, is introducing the 30 Days to Financial Freedom Challenge (#30D2FF).

30d2ff madam moneyWho Can Accept the Challenge and Participate

This challenge is a free, online financial program designed to help 1,000+ adult individuals and families who are ready to achieve their goals for Financial Freedom. Feel free to challenge your family and friends to access their Financial Freedom in 30 days.

How to Accept the Challenge

To accept and participate in the 30 Days to Financial Freedom Challenge, simply

When does the Challenge Start

The Challenge begins on Monday, May 4, 2015. Participants will receive a simple task to complete via email or text alert each week day for 6 weeks to help them work towards their financial freedom. The challenge also gives participants helpful lessons and resources to help them on their journey.

We look forward to connecting, sharing and reaching Financial Freedom with you.

Are you ready for the challenge?  YES or NO!