The Money IDEA
|
The Money IDEA
Ideas on How to Save and Ideas for What to Do with Your Savings!
|
Sometimes, while doing some financial planning for future expenses, you may be on the lookout for a bit of extra cash. When listing your assets, you may only think of property, vehicles, and stocks. Have you considered checking the storage you haven’t itemized in ten years, the boxes in your basement, or even the inside of your mouth? Here are three unexpectedly valuable items you may have right under your nose.
Comic Books and Magazines The most expensive comic book ever sold was a copy of Action Comics #1 that was sold by actor Nicolas Cage for over $2 million, according to Dave & Adam’s Card World. Later editions can be quite valuable as well. For example, Tales of Suspense #39, the first appearance of Tony Stark, is worth up to $350,000. Old magazines usually don’t sell for near as much, but they can be easier to come by. If your great aunt had a subscription to Vogue 30 years ago and has a stack of them in her basement, selling each at $20-$50 can really add up. Gold Crowns You probably think you don’t have any precious metals just lying around, but perhaps you’re just not looking in the right place. Many people today opt for resin fillings and crowns over gold because they look more natural and cost less money. Nevertheless, dental gold is still available, and millions of people have gold crowns and fillings. Though gold is the longest-lasting option for a dental crown, it may need to be replaced after several years, and asking your dentist to keep your old gold crown could be worth it. According to CrownBuyers, with the price of gold at $1000 per ounce, an average gold crown is worth $57. Vinyl Records Many families have stacks of old vinyl records sitting beside their retired record players. Because of track changes, limited releases, and early withdrawal of some albums, there is a list of records that could earn you at least five figures for just having an original copy that is still in mint condition. According to Mental Floss, “The Freewheelin’ Bob Dylan” with the original tracklist and The Beatles’ “Yesterday and Today” with dismembered baby dolls on the sleeve art are some of the most rare finds. Do you have items of value just sitting in storage? Comics, magazines, dental gold, and vinyl records are common items that many are likely to have, but they are just a few examples. Even if you don’t have these items, you may now be more inspired you to seek value where you never thought possible. It’s time to start looking for your own buried treasure! KEYWORDS
 RSS Feed
Here are 5 financial wellness moves you need to master this year!
(BPT) - If you had to grade your financial literacy, what would it be? Are you an A+ saver, investor and planner, or do you think you could do better? If you grade yourself average at best, you’re not alone.
When asked to grade their own financial literacy, more than half of Americans say they’d earn a “C” or lower, according to new data from Prudential Financial. This isn’t surprising, considering data from Prudential’s Financial Wellness Census shows less than half of Americans are on track to meet their financial goals, including planning for retirement. “Regardless of where you are on your family’s financial wellness journey, the best way forward is through financial literacy,” says Prudential Advisors President Brad Hearn. “Researching, educating yourself and getting advice from a financial professional can help you make the best decisions based on your life stage, risk tolerance and goals.” Hearn says each family’s situation and goals are unique, and things like life stage and personal preference will impact how they choose to prepare for their financial future. To get started, here are five financial wellness basics every family should master: Set up an emergency fund Life is a series of experiences, and sometimes the unexpected can hit your finances hard. Whether it’s a car breaking down, your AC unit on the fritz or even losing a job, it’s important to be prepared for emergencies. If you don’t already have an emergency fund, start saving a little each month until you reach your goal. A good rule of thumb is to have three months’ worth of expenses saved in an emergency fund. So, if your monthly expenses are $2,500, you should have $7,500 saved. Create a budget Saving for college? A new car? How about starting that emergency fund? Whatever your family’s financial goals are, it’s important to have a plan in place that helps you achieve those goals. Budget to manage day-to-day expenses, and include in that budget a commitment to save for bigger milestones. For tips on getting started, do some research. There’s no shortage of advice, whether you decide to go it alone or consider using the help of a professional financial advisor. Plan for the unimaginable If you have people who count on you for financial support or caregiving, you should have life insurance. A life insurance policy can help give your family financial peace of mind should the worst happen. There is no rule as to how much life insurance you need, but important things to consider are your annual income, mortgage debt, potential college costs for kids and other future financial obligations. Save for retirement According to Prudential data, of Americans who have retirement savings and debt, nearly one-quarter have more in total debt than in retirement savings (23%), while 15% of Americans say that they have no debt, but also have nothing saved for retirement. Planning for retirement is something that should start as soon as possible. If your work offers any type of matching program, make sure to take advantage. If you don’t, you’re essentially leaving free money on the table. Seek professional advice Retirement, life insurance and savings can be confusing. Information overload is partly to blame. According to Prudential data, two-thirds of Americans agree that the list of things they need to learn to successfully manage their finances keeps growing, not shrinking. That’s where financial literacy programs and professional financial advice can play a key role. Nearly two-thirds of Americans don’t have a financial advisor. They say they cannot afford one (42%) or don’t believe their financial situation warrants needing an advisor’s help (26%). The reality is that advice is more within reach than ever before — and it’s not just for the wealthy. A financial professional can help at various stages in life and work with you to create a strategy based on your timeline, risk tolerance and goals. “Financial wellness isn’t always a matter of having more money,” says Hearn. “Instead, it’s a journey that takes a combination of proactive effort, dedication and professional guidance.” Prudential Advisors is a brand name of The Prudential Insurance Company of America and its subsidiaries. Life insurance is issued by The Prudential Insurance Company of America, Newark, NJ and its affiliates.
KEYWORDS
RSS Feed
Regardless of income or wealth, the road to financial health – how you are able to manage your day-to-day financial life while building for the future – can be a lifelong journey. What you do today can build toward or detract from your long-term resilience and ability to pursue opportunities. These questions can serve as a starting point to take inventory of your financial health.Planning for the Future
Taking inventory of your financial health(Family Features) Only 28% of Americans are financially healthy, according to the U.S. Financial Health Pulse. Most others will have difficulty reaching long-term financial goals and are more vulnerable to the threat of financial shocks, such as car trouble, unforeseen medical bills or job loss. Regardless of income or wealth, the road to financial health – how you are able to manage your day-to-day financial life while building for the future – can be a lifelong journey. What you do today can build toward or detract from your long-term resilience and ability to pursue opportunities. Whether you want to take that dream vacation, prepare for retirement or save for college, financial health takes effort to build. “An overwhelming majority of the country is experiencing financial challenges that have lasting effects on people’s lives, on their ability to weather the inevitable ups and downs and on their chances to pursue their dreams,” said Jennifer Tescher, CEO of the Center for Financial Services Innovation (CFSI), the nation’s authority on consumer financial health. “Each year, CFSI and MetLife Foundation join forces on #FinHealthMatters Day to highlight the importance of financial health, especially for the 180 million people who are financially vulnerable.”
Photo courtesy of Getty Images SOURCE:Center for Financial Services Innovation
KEYWORDS
RSS Feed
Thinking about home repair costs? Maybe you should be...
Don’t fall victim to the financial risks and mental stresses associated with owning a home. Appliances have set lifespans, breakdowns are inevitable and repairs and replacements are costly. Make sure your home is covered, so you and your wallet can rest assured that your home is taken care of.
(BPT) - Nobody bats an eyelash when it comes to buying homeowner's insurance, but many homeowners don’t apply that same logic to planning for home repairs — not what might happen, but what will happen.
Only a fraction of the 120 million U.S. households today are protected by a home services plan, also known as a home warranty. That number is growing, as homeowners recognize the value of coverage when appliances go on the fritz, hot water heaters run cold in the middle of winter or a leaky faucet drives up their water bill. Perhaps one reason more homeowners don’t have home service plans is because they think they are covered through their homeowner's insurance policy. Homeowner's insurance doesn’t protect you from the natural home aging process. Insurance kicks in when damage occurs from an outside force, like a busted sewer line or roof damage due to a major storm. While insurance covers you when Mother Nature strikes, it doesn’t protect you from the natural wear and tear that your home’s major systems and appliances go through during the aging process. Understanding how home service plans work and how they fit into your financial and risk-planning strategy allows you to be prepared for covered breakdowns, without breaking the bank. Let’s start at the beginning. What is a home service plan? Home service plans typically cover the repair or replacement of major home appliances, including refrigerators, washers, dryers, ovens or cooktops, and components of major systems like plumbing, HVAC and electrical. When your air conditioning system breaks, or your washer or dryer stops spinning, you want the confidence of having a home services plan in place that will help protect your budget. This is where the true value of a home service plan comes in. Home service providers such as American Home Shield accept service requests and assign professionals to diagnose the problem and offer a solution through its vast network of skilled and trusted contractors, which includes more than 15,000 licensed and qualified pros throughout all 50 states. What’s the bottom line? With a home service plan, you won’t pay the full cost of repairing or replacing items covered by your plan. Regardless of age, make or model, your contract helps cover the repair or replacement of items covered in your plan. For example, if your refrigerator malfunctions, your service provider will connect you to a quality contractor to diagnose and repair the problem. This can help reduce the hassle of repairing it yourself and help protect your budget. Think about your home’s future (and yours). Service plans can come in handy when selling a home. The appeal speaks for itself: When buyers are making that final decision around one of the biggest investments in their lives, having a home service plan in place gives the new homeowner confidence that the home’s systems and appliances are protected, and they won’t bear the entire financial impact of repairing or replacing it if it breaks down. The choice seems obvious: Don’t fall victim to the financial risks and mental stresses associated with owning a home. Appliances have set lifespans, breakdowns are inevitable and repairs and replacements are costly. Make sure your home is covered, so you and your wallet can rest assured that your home is taken care of.
KEYWORDS
RSS Feed
Understanding and managing personal information is vital to achieving life goals such as owning a home, financing your education or having the convenience of credit cards for everyday purchases. With responsible financial behaviors, discipline and consistency, you’ll be on your way to improving your credit, and in turn, feeling more confident about your overall financial health.
(BPT) - It’s always a good time to reassess financial goals and work toward improving your overall financial health. No matter what your financial goals may be, having the right information and tools in place is key to getting you on track to take control of your credit.
Taking the first step towards financial wellness can provide a sense of empowerment as you get rid of everyday financial stressors, which is why many see a positive connection between financial control and self-perception. Though increasing your credit score might seem daunting, following these healthy credit behaviors can help you make positive changes to your financial health and even your personal well-being. Understand your credit: When starting on your journey to better financial health, begin by familiarizing yourself with your current credit standing, as well as understanding what factors may be negatively impacting your credit score. A great place to start is with your Annual Credit Report, which provides one free credit report each year from all three nationwide credit reporting agencies. The information in these reports directly impacts credit scores, so it’s important to carefully review for any factors that could cause your score to be lower than it should be. This TransUnion Credit Score Overview is also a helpful educational resource and provides tips towards building a healthier credit standing. Review your report and take action: While assessing your credit report, carefully review for any inaccuracies or problem areas that may negatively affect your credit score. For instance, high accumulations of debt such as maxed out credits cards and unpaid bills will likely be reflected in your credit report. Unpaid collections are also commonly reported delinquencies that can cause a big hit, even when as low as $100 or less. Prioritize addressing these smaller problem areas first before they get worse. Inaccurate information caused by identity theft can also lower your credit score and should be disputed online. Create a plan for better credit: After resolving any outstanding issues identified while reviewing your credit report, create a plan towards improving your financial health, which should include: 1) On-time payments: Paying your bills on time and in full each month is key as it builds a positive history of on-time payments and responsible credit use. 2) Credit utilization: It is recommended to maintain a low credit utilization ratio, that is, how much of your available credit you’re using at any given time. It is recommended that you use no more than 30 percent of the available credit, otherwise, your score could be suffering. 3) Evaluate your credit cards: Before opening or closing any credit cards, do your research on the different types of credit cards and the benefits they have. Do one or more of your cards have an annual fee that you could live without? Strategize which cards you use regularly and keep daily spending concentrated to one or two cards total. However, don’t close an old account just because you aren’t using it. Longstanding credit accounts are vital for building credit as this demonstrates a responsible credit history. Remain vigilant about credit monitoring and protection: Once you’re in control of your credit, the next step is to be diligent about monitoring your credit and cautious about your personal information, which includes fraud protection. Fraudsters may take out loans, lines of credit, or rent apartments in your name, which can negatively affect your credit if it results in a non-payment. If you think your information has been compromised, you can protect your credit by freezing it at all three credit reporting agencies. With TransUnion, you can simply freeze and unfreeze your credit with the touch of a button through the myTransUnion app at any time. Understanding and managing personal information is vital to achieving life goals such as owning a home, financing your education or having the convenience of credit cards for everyday purchases. With responsible financial behaviors, discipline and consistency, you’ll be on your way to improving your credit, and in turn, feeling more confident about your overall financial health. For more information, visit TransUnion.com.
KEYWORDS
RSS Feed
Do you know what you need to know about life insurance?
(BPT) - If you haven't made solid financial plans, now would be a good time to consider a life insurance policy to protect you and your family in your time of need - or protect your loved ones in your absence.
Given the importance of life insurance, it's surprising that 37.5 million American households lack such a policy, according to the 2016 Facts About Life study by the industry group LIMRA. That may be because many people misunderstand how such policies work and how much they cost. For example, recent Insurance Barometer studies by LIMRA and Life Happens found 63 percent of Americans cite expense as the reason they don't carry term insurance, yet 80 percent overestimate the cost - millennials by 213 percent and Gen Xers by 119 percent. While some Americans hope to rely on other sources to protect their families, they may not realize all the benefits life insurance offers. Every family has different needs, and some life insurance products are flexible enough to offer customizable options to provide a measure of financial security to your spouse and children - the people that matter most. Consider these other common myths about life insurance: Myth: Life insurance is only available through financial advisors. In fact, quality policies for your entire family are often available through your employer or your spouse's employer. For example, Boston MutualLife Insurance Company offers a range of workplace solutions paid for by employers, employees or both, including permanent life, term life, critical illness, accident and disability insurance. Talk to your company's HR department about the process involved in securing comprehensive coverage for your family. Myth: Workplace policies can't offer enough options for your needs. You'll find that well-established life insurance companies understand the market well enough to offer a range of flexible products, including policies that are payroll deductible, stable in cost regardless of your age, portable when you're changing jobs and available with add-on riders or other insurance types through the same carrier. Myth: Young, healthy people don't need life insurance. The truth is, your health can change at any time and it's best to expect the unexpected. Uninsured people can easily leave behind personal, medical or mortgage debts and/or funeral expenses that end up burdening family members or executors when they die. Myth: Your life insurance policy only covers you, not your family. Not true. Some products protect you, your spouse, your dependent children and even your grandchildren, often at one affordable cost. That's why marriage and becoming a parent can be excellent reasons for buying new policies. Investing in life insurance is a crucial step to take to protect yourself and your family from unexpected losses. But it doesn't have to be confusing or complicated. Find more detailed information about life insurance options for you and your family at www.BostonMutual.com. KEYWORDS
 Three tax savings strategies for a secure retirement to try right now With the increasing likelihood that Social Security and Medicare benefits may be reduced in the future, it’s more important than ever to use every technique available to maximize your retirement savings. These three outside-the-box strategies could make an enormous difference in your retirement readiness. The sooner you start, the more you may save.(BPT) - Individuals who rushed to prepay property taxes after the passage of the Tax Cuts and Jobs Act may have saved some money in 2018 — but that’s pennies compared to the long-term tax savings taxpayers should take advantage of before the TCJA’s individual tax provisions are expected to expire in 2026, according to Robert Fishbein, vice president and corporate counsel at Prudential Financial. Also expected to expire in 2026? According to trustees for Social Security, that’s when Medicare’s main trust fund will run out of money. With the increasing likelihood that Social Security and Medicare benefits may be reduced in the future, it’s more important than ever to use every technique available to maximize your retirement savings. Three outside-the-box strategies could make an enormous difference in your retirement readiness. The sooner you start, the more you may save. Fund an HSA for retirement health care Estimates suggest even a healthy 65-year-old couple will need at least $275,000 to cover retirement health care costs. A Health Savings Account, or HSA, provides a way to save that money without paying a dime in taxes. An HSA account is available to individuals enrolled in a high deductible health insurance plan. First, these individuals can fund their HSA through a tax-deductible contribution or pre-tax payroll deduction. Second, any interest and investment gains are tax-free. Finally, the funds can be withdrawn tax-free to pay for qualified medical expenses— a triple tax advantage over a traditional savings account. The best part? There is no requirement to use HSA funds in the year of contribution, which means funds can grow on a tax-favored basis for future health care expense needs. For 2018, family contribution limits are $6,900, or $7,900 if you are 55 or older, and those amounts are indexed for inflation in future years. If you start contributing the maximum even as late as age 55, and earn 3 percent per year, you could have more than $90,000 to pay for your retirement health care by age 65. If you start contributing the maximum as early as age 40, you could have saved almost $270,000. These funds will continue to grow tax-free in retirement until you need them. If you don’t use HSA funds in full before you die, excess funds are subject to income tax, but will be otherwise available for your heirs. Consider a Roth IRA conversion The typical dogma says that converting an IRA or traditional 401(k) to a Roth IRA does not make sense if you expect your tax rate in retirement to be lower than at the time of conversion. However, lesser known benefits of a Roth IRA may make it worthwhile to have at least part of your retirement assets in Roth IRA form. Start with no required minimum distributions. With a Roth you aren’t forced to draw down your funds once you attain age 70½ and can continue to benefit from the tax-free growth, thereby maximizing the after-tax funds eventually available for you or your heirs. Another significant benefit of a Roth IRA or Roth 401(k) is tax diversification. For example, you may choose to take taxable distributions up to a certain amount and then tax-free distributions to avoid a higher income tax bracket. If you are a high-income taxpayer, Roth IRA distributions are not considered income when determining thresholds for increased Medicare premium charges or the 3.8 percent income tax surcharge on investment gain. If your income is more modest, Roth IRA distributions are not considered income when determining whether you are subject to income tax on Social Security benefits. If anything, a conversion is more attractive now since you have an opportunity to convert and pay income tax with marginal rates that are generally lower than under prior law. Since individual tax law changes are temporary and tax rates will revert to the former higher amounts starting in 2026, you have an eight-year window to benefit from lower rates. Make “backdoor” Roth IRA contributions The tax law prescribes income limits so high-income individuals may not make a direct contribution to a Roth IRA. However, there are no income limits on converting traditional IRA funds to a Roth IRA. Any person under age 70.5 who has earned income by year-end can make an IRA contribution. While income limits may prevent you from making a pre-tax contribution, you can make this contribution even if you have fully funded a 401(k) or another employer plan. Once you have made your contribution to a traditional IRA, simply convert that amount to your Roth IRA. As long as this is your only traditional IRA and you have made an after-tax contribution, then an immediate conversion will have converted a tax-deferred asset into a potentially tax-free asset. If you have multiple IRAs, the IRAs are aggregated to determine how much is taxable upon conversion. While we spend much time on our investment strategies to help gain an extra percentage or two of investment yield, these tax planning strategies can be a more reliable way of maximizing your after-tax retirement income and wealth for your family — no matter how Social Security and Medicare turn out. Prudential Financial, its affiliates, and their financial professionals do not render tax or legal advice. Please consult with your tax and legal advisors regarding your personal circumstances. KEYWORDS
 4 habits for fit finances Here are four steps to take today to spruce up your money management process and get yourself on the path to financial health. (BPT) - Are you feeling good about your finances? Or do phrases like “account balance,” “credit score” and “retirement savings” give you a twinge of anxiety? Don’t worry, you’re in good company. Only 24 percent of millennials have basic financial literacy, according to the National Endowment for Financial Education. When it comes to getting their financial house in order, most millennials would prefer not to set foot in that proverbial house in the first place. Getting yourself out of debt and building enough savings to cover your expenses in an emergency is a marathon, not a sprint. Small, incremental changes in your financial habits today can make a big difference in your financial health months or even years from now. Take these steps today to spruce up your money management process and get yourself on the path to financial health. * Check your credit score. Before you start the work of realigning your finances, you should check your credit score and review your credit report. It helps to know where you stand financially, and the good news is, even if your credit score is not as high as you’d like it to be, you can take steps to improve it. Establishing a history of on-time payments and maintaining a healthy credit utilization ratio are two things that could improve your credit score quickly. One way to access your credit score without any cost is to find out if your bank or lender offers your VantageScore through their website. * Knock down your debt. Track down all your accounts — checking, savings, investment, credit cards and other loans — and do the math to find out your net worth. That’s your benchmark to help you track your progress. In the beginning, the truth can hurt, however, knowing how much you have in savings and knowing how much you owe gives you a valuable blueprint for where you need to direct your energy. From there, put together a household budget, and figure out where you can trim expenses, so you can pay ahead on your debts, one account at a time. * Automate your savings. You’re much more likely to accumulate savings when you make the decision once and let the rest happen automatically. Log onto your bank account and set up an automatic transfer from checking to savings, starting with a small amount, preferably timed with your regular pay day. If you can manage to set aside $85 a month, in a year’s time, you’ll have set aside a full $1,000. That’s a decent emergency fund for things like car repairs and doctor bills. * Open a retirement account. Here’s another way to automate savings. If you haven’t done so already, start contributing to a retirement plan. Even better, if your employer makes a plan and a match available to employees, sign up as soon as you can. If you can’t afford to contribute the full amount to get the full match, start with a small percentage, and slowly add on. Taking the first steps to gain control of your finances isn’t easy. Setting up good financial habits today can leave you in a better place tomorrow. Test your credit score knowledge at CreditScoreQuiz.org, and be sure to visit VantageScore Solutions to learn what things influence your score, and what you can do to improve it. KEYWORDS
|
Archives
April 2019
Interested in Publishing on The Money Idea?
Send your query to the Publisher today!
Categories
All
Get this money content for your website with our RSS Feed below!
|
