FINANCIAL WELLNESS
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Thursday, March 10 & Sunday, March 13, 2016
PROTECT YOUR MONEY P3 Maintain good credit P3 Quickly pay down college debt P4 Tips to protect your identity
SAVING MONEY
Cut costs on prescriptions
P5
Everyday ways to save
P6
Find a financial planner
P7
Teach kids financial lessons
P8
P2 Great part-time jobs for retirees P5 When to begin saving for retirement P6 Preparing credit for major purchases
Financial Wellness | Thursday, March 10 & Sunday, March 13, 2016
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Great part-time jobs for retirees
Part-time consultant work may be just what retirees are looking for to fill their time and earn some extra money.
Upon retiring, many newly minted retirees find themselves looking for ways to fill their free time. Hobbies may not take up too much time, and travel can stretch retirees’ budgets. One way that retirees can make great use of their free time and make a little extra money is to find part-time employ-
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ment. Part-time jobs can help retirees maintain their connections with their communities, whether it’s their professional community or the community in which they live, while also providing a sense of purpose. Retirees interesting in finding part-time work may want to consider the following jobs. • Consulting work: Many retirees have long rÊsumÊs, and that experience is still valuable even after retirement. Consulting firms often hire experienced businesspeople on a project or contract basis, which can be great opportunities for retirees to fill their time and make sizable amounts of money without having to commit to long-term employment. • Teaching: Retirees can also put their professional experience to work in the classroom. Inquire about teaching opportunities at a nearby university or even the local high school. Such opportunities may only be available on a volunteer basis, but some might pay part-time salaries or small stipends. Either way, many retirees find that working with young people helps them stay young, and passing on lessons learned to younger generations can provide a strong sense of purpose. • Seasonal work: Seasonal work is another great way for retirees to
fill their time and make a little extra money along the way. Come the holiday season, retirees should have no trouble finding seasonal retail work at their local malls or shopping centers. In warmer months, retirees may find seasonal employment at area beaches, golf courses or parks. • Sports teams: Retirees who live in cities with professional sports teams may be able to find work with their favorite franchise. Professional sports franchises often rely on retirees to staff in-game positions like ushers and concessions employees, and some may even hire retirees to greet fans. While the pay might not be great, such positions are ideal for retirees who happen to be big sports fans. • Crafts: Retirees with a love of crafting can turn their hobby into income. For example, Etsy.com makes it easy for creative entrepreneurs to post their creations and sell them to buyers all over the globe. Sellers often dictate how quickly they can make and ship products, so retirees need not feel worried about being rushed. Many retirees still work even after calling it a career, and opportunities abound for men and women looking to fill their time and make a little extra money along the way.
Did you know? Prospective borrowers can take several steps to earn lower interest rates when applying for loans. Lenders consider a host of factors when determining interest rates for their borrowers. Some of these factors are market-based, while others are determined by the United States Federal Reserve. But borrowers are not helpless when it comes to securing low interest rates. The down payment amount as well as borrowers’ credit scores and histories can help or hurt them when it comes to interest rates. For example, the larger the down payment a potential home buyer is willing to put down to buy a home, the more likely that borrower earns a lower interest rate from his or her bank. That’s because the bank sees borrowers who are willing to put down a substantial sum of their own money as highly likely to repay the loan in full and on time. In addition, borrowers with strong credit histories and high credit scores have already demonstrated their ability to repay their debts, and that reputation often benefits them in the form of lower interest rates on major purchases like homes and automobiles. Borrowers also may be able to secure low interest rates if they are willing to repay loans quickly. The shorter the duration to maturity, the smaller the interest rate may be. That’s because banks see long-term loans as less likely to be repaid than short-term loans.
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Financial Wellness Thursday, March 10 & Sunday, March 13, 2016 sales director: Doug Dixon retail sales manager: Heather Kritter production & design: Annie Steel • Rebecca Zimmer account executives: April Clausi, Ben Jameson, Charlotte Joseph, Seth Rozen
Graduates who stay disciplined and pay a little extra each month can repay their student loans long before the loans reach maturity.
Three ways to quickly pay down college debt Student loan debt is a big concern for today’s newly minted college graduates. According to an analysis of government data by Edvisors.com, a website that provides financial information about college to students and parents, the average student in the class of 2015 will graduate with more than $35,000 in student debt. That figure is roughly $2,000 more than the class of 2014 graduates faced upon receiving their degrees. With such substantial debts, it’s no wonder many college graduates find themselves looking for ways to pay down that debt as quickly as possible once they leave campus life behind. Paying down college debt may seem daunting at first, but the following are some ways for recent grads to get out from under that debt sooner rather than later.
1. Pay more than you owe. The best way to reduce the principal on student loans quickly is to pay more than you owe each month. Once the repayment grace period ends, grads will see what their monthly student loan payment is. Paying more than that amount each month can drastically reduce your repayment period, and you will pay considerably less in interest over the life of the loan. For example, a graduate who owes $25,000 and pays 6 percent interest annually for 10 years will pay roughly $278 per month to eliminate that loan in exactly 120 months. Over those 120 months, grads will have paid more than $8,300 in interest in addition to their $25,000 principal. However, grads who pay an additional $50 per month will pay their loans off nearly two years earlier and pay nearly $2,000 less in interest over
the life of the repayment.
2. Arrange for automatic deposits into a repayment fund.
One of the more difficult parts of repaying student loans for recent grads is setting aside enough money to pay them off. Upon landing their first professional jobs, new grads are often making more money than they’ve ever earned in the past, and many have no idea how to manage their newfound financial windfalls. In addition to making your monthly payments via your everyday checking account, arrange for automatic deposits into a savings account you will exclusively use to repay your student loans so you are not tempted to spend that money on more frivolous pursuits. You won’t miss the money if you never get used to having it, and you will celebrate the day the balance in your student loan savings account matches the payoff amount on your student loan balance.
3. Make plans. Failure to make a plan is one way to miss the opportunity to pay off your college debt as quickly as possible. Make specific financial goals, such as owning your own home in “X” amount of years or saving money for postgraduate tuition. Having specific goals and plans in place can provide the motivation you need to pay down college debt sooner rather than later. Student loan debt intimidates many recent graduates. But those who stay disciplined can repay their loans quickly and regain some financial freedom as a result.
Three ways to maintain good credit A good credit score can go a long way toward helping men and women secure their financial futures. When armed with a good credit score, men and women can secure lower interest rates on mortgages and auto loans, saving them thousands upon thousands of dollars over their lifetimes.
Some people deftly use credit to their advantage their whole lives by never missing a payment or never digging themselves into deep holes with regard to consumer debt. Others fight an uphill battle, earning a great credit score after digging themselves out of debt accumulated in early adulthood. Regardless
of how men and women made it to the top of the credit score mountain, once they’re there the work has only just begun. Credit scores are fluid, so high scores must be maintained in order for lenders to continue to view prospective borrowSee GOOD CREDIT on next page
Financial Wellness is a special advertising supplement to ThisWeek Community News. Financial Wellness is not responsible for opinions and views expressed in the paid advertisement in the business profiles. All real estate advertising herein is subject to the federal Fair Housing Act, which makes it illegal to advertise “any preference, limitation or discrimination because of race, color, religion, sex, handicap, familiar status, or national origin, or intention to make any such preference, limitation or discrimination.” We will not knowingly accept any advertising for real estate which is in violation of the law. All persons are hereby informed that all dwellings advertised are available on an equal opportunity basis.
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Protect your identity, protect your money By Anthony Clemente The Arlington Bank National Consumer Protection Week is here once again, and it’s a great reminder of the importance of keeping your identity and bank accounts safe. One of the best ways to stay ahead of fraudsters is to be informed about some of the common schemes being used to steal your hard-earned money. One of the most talked-about scams this time of year is an IRS phone scam. It involves an unsolicited caller who impersonates an agent from the Internal Revenue Service. Using a socalled badge number and fake name, the caller sometimes may even have information about you such as the last four digits of your Social Security number, and demands payment for a phony debt. The caller usually threatens legal action including criminal charges or loss of your driver’s license if you fail to pay up. Victims of the scheme have been told to withdraw money from their bank accounts and call back after they have purchased prepaid debit cards to pay the debt. By the time the victims realize they have been scammed, the money on the cards was history. Last year, the Senate Finance Committee called the phone scam one of the largest impersonation scams in the history of the Internal Revenue Service. But it is just one of many tactics criminals are using to take advantage of innocent people. Here are some of the other scams you should be aware of: Medical insurance phone calls: This phishing scam aims to trick people into providing personal information that could be used to commit fraud. A phony agent calls, warning that you will face a fine if you don’t immediately purchase government health insurance. The calls are automated and prompt the receiver to hit “1” to speak with an agent. The FTC warns that people who work in the federal Health Insurance Marketplace don’t make cold calls and never ask for personal information. Similar scams include fake emails from the Social Security Administration and fraudulent Medicare calls. Work-from-home schemes: You’ve heard it a thousand times: If it sounds too good to be true, it probably is. Unfortunately, scammers are still
Quick tips Here are some recommended steps to take if you become a victim of identity theft: • Place a fraud alert on your credit reports. Contact each of the credit bureaus to notify them that your identity has been stolen. You may place these alerts online for Equifax (www.alerts.equifax.com), Experian (www.experian.com/fraud) and TransUnion (fraud.transunion. com). National Consumer Protection Week is March 6-12. For more tips on protecting yourself, visit www.ncpw.gov or www.arlingtonbank.com. duping consumers into paying an upfront fee for the promise of “work” that will land the victim a windfall. Be skeptical of work-from-home offers such as envelope stuffing that require you to pay for employment. Some other employment scams include emailed job offers with wire transfer instructions, offers of undisclosed federal government jobs and placement with bogus employment agencies. Family member in distress: In this phone scam, the victim receives a call from someone posing as a grandchild in desperate need of monetary help, or even as a “kidnapper” demanding ransom for the release of a family member. Money is requested through wire transfers or prepaid debit cards. Victims end up losing hundreds or thousands of dollars before realizing that the story never checked out. Chip card scams: Many banks are transitioning to debit and credit cards with a computer chip that encrypts account information. It’s a high-tech transition but scammers are using a low-tech scheme. They email potential victims posing as a card issuer, saying that the person’s account information needs to be updated before a card can be sent out. Of course, the scammer is just attempting to trick you into providing your bank information so they can steal from you. You should never respond to emails with your personal information and if you’re in doubt, you should call your credit card issuer directly.
Game/app downloads: Remember to only use trusted app stores and developers to avoid being victimized by malware on your devices. In a recent scam, a company purchased a game that had been downloaded by thousands of people. Without the users’ knowledge, the new company replaced the game with an app that installed potentially harmful software to the devices. Exercise caution in adding software to your devices, and always make sure your security software is up to date. Whether it’s in person, by mail, online or over the phone, scammers are getting more persistent by the day. Your best defense is to stay alert. Never give personal information to unsolicited callers. Change your online passwords regularly, using something that isn’t easy to guess. Keep an eye on your bank accounts and store them in a safe place. Shred your bank statements and other documents to dispose of them securely. Follow the latest news stories to potentially become aware about schemes before you encounter them. If you think you might have been the victim of an identity theft or financial scam, you should call the police. It’s also important to call the bank. Tell your banker about the situation and get a report filed right away. It might be necessary to get a new debit card, credit card or account number, and investigations will need to take place. The FTC says victims of identity theft should also contact the three major credit bureaus immediately and report
• Contact your bank. It is recommended that you close the accounts that you know or suspect have been tampered with or opened fraudulently. • File a police report. You may need to prove to creditors that a crime has taken place. Notifying police can also help identify trends and could help bring criminals to justice. • File a complaint with the FTC. Visit www.identitytheft. gov and begin your recovery steps. This complaint also could help investigations into criminal activity.
the fraud to the FTC. It isn’t fun to be on the receiving end of one of these crimes, but your community banker can help guide you through getting your money safe again. National Consumer Protection Week is March 6-12. For more tips on protecting yourself, visit www.ncpw. gov or www.arlingtonbank.com.
GOOD CREDIT Continued from previous page ers as worthy investments. The following are a handful of ways consumers can maintain their high credit scores so they can continue to benefit from their well-earned financial reputations.
1. Routinely monitor your score.
Credit scores change constantly, so it’s important that you continue to monitor your score to make sure there are no inaccuracies that can affect your standing. While each of the three major credit reporting agencies (Equifax, Experian and TransUnion) must supply one free copy of your credit report every 12 months upon your request, some credit
card companies now offer free monthly credit report updates. Cardholders can take advantage of such offerings to monitor their scores. Report any discrepancies to the appropriate rating agency immediately.
2. Sign up for automatic bill pay.
Credit scores can plunge quickly when consumers miss payments. No one is perfect, so it’s not out of the question that you might miss a payment one time. Numerous factors contribute to your credit score, but payment history is perhaps the most influential variable when determining the final score, so a single missed payment can
do significant harm. One way to avoid that and protect your credit score at the same time is to sign up for automatic bill pay. When signing up, use a bank account that always has a relatively high balance so you don’t run the risk of having insubstantial funds when the money is automatically deducted from your account.
3. Don’t use too much of your credit.
One of the benefits of having a great credit score is your available credit is likely to go up. That’s because lenders see consumers with high credit scores as good investments worthy of higher lines
of credit. But using too much credit, even when you have a high score, can be detrimental to that score. Credit utilization is another factor used to determine your credit score. Your credit utilization rate is the sum of all your balances divided by your total available credit. A study from CreditKarma.com found a strong correlation between credit
utilization rates and credit scores, as consumers who had lower utilization rates generally had higher scores. While it’s important to use credit (the study also found those with a zero percent utilization rate had lower credit scores than consumers with rates between 1 and 20 percent), avoid using too much of your available credit. Even if you pay your balances in full and on time each month, a high utilization rate may hurt your score. Achieving a good credit score is only half the battle for consumers. Once that credit score is high, consumers must take steps to maintain it so they can continue to benefit for years to come.
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When to begin saving for retirement After finishing school and landing their first jobs, the furthest thing on many young professionals’ minds is retirement. Although the day young workers will cash their last paychecks and bid farewell to the workplace may be decades down the road, it’s never too early to begin saving for retirement. The sooner a person begins saving for retirement, the more time his or her money will have to grow. As more deposits are made and interest is compounded, retirement investments can grow considerably. Ideally, workers should begin saving as soon as possible. Compounding interest produces a better return for professionals who start saving when they are young than for those who delay their retirement savings. Unfortunately, many of today’s new workers are
not prioritizing retirement. According to a study from Hewitt Associates, just 31 percent of Generation Y employees (individuals born after 1978) who are able to deposit money into a 401(k) retirement plan actually do so. The easiest way to save for retirement is to make the process entirely automatic. One can achieve this by signing up for an employersponsored 401(k) or another retirement plan. When opening a 401(k), workers will have a predetermined portion of their earnings deducted from their paychecks and deposited into the retirement account. Such contributions are made prior to being taxed, adding even more incentive to begin saving as soon as possible. Money deposited into a 401(k) will then be available for withdrawal when the employee reaches retirement age. If the employer
Young workers should start saving for retirement the moment they begin their professional careers.
has a matching program, even better, as that means the company will match employee contributions up to a certain percentage. A person may also want to establish an IRA (individual retirement account). IRAs, which are available as traditional IRAs or Roth IRAs,
Cut the costs of your prescriptions The costs of filling prescriptions is simply too big to bear for many people, even now that the Affordable Care Act has greatly reduced the amount of people who are uninsured. A survey from the Commonwealth Fund found that 35 million people in America failed to fill a prescription in 2014 because of the cost of the medication. That figure represents an improvement from 2010, when 48 million people did not fill their prescriptions due to the costs of those medications, but it still serves to highlight a need many people have to cut the costs of their medicine. Though people who cannot afford to fill their prescriptions often feel helpless, there are a handful of ways they can cut the costs of their medications and start feeling better. • Discuss changes with your physician. Perhaps the simplest way to cut prescription costs is to discuss medication options with your physician. Brand-name drugs are typically more expensive than generic alternatives, so speak with your physician about generic drugs or less costly brand-name drugs that may treat your condition as well as expensive brand-name drugs do. • Consider Patient Assistance Programs. Sometimes referred
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to as ‘Pharmaceutical Assistance Programs,’ Patient Assistance Programs, or PAPs, can greatly reduce the burden of prescription drug costs. Sponsored by pharmaceutical companies, PAPs distribute billions of dollars to patients who otherwise could not afford their medications. Eligibility criteria varies depending on the program, but men and women struggling to pay for their prescriptions can speak with their physicians about PAPs. • Consult your member organizations. If you are a member of the AAA automotive group or the American Association of Retired Persons, you might be eligible for medication discount cards free of charge. These cards provide discounts on your medications, but some come with expensive fees upfront. Look for no-fee cards, such as those offered to AAA and AARP members or others offered by nonprofit organizations, before considering options offered by pharmaceutical companies or other for-profit businesses. • Contact charitable organizations. Some charitable organizations, such as the National Organization for Rare Disorders and maybe even some local nonprofits, offer prescription assistance to people in need. Visit NORD online at www.rarediseases.org.
are typically offered through financial establishments and provide tax-friendly ways to save for retirement. There are differences between traditional IRAs and Roth IRAs, and these differences are related to taxes and may depend on when contributions are made as well as when withdrawals are made.
Speak with a financial planner to help you determine the IRA best suited to your personal needs. Young professionals may want to keep more of their retirement funds in stocks and aggressive accounts to earn more. As one gets older and closer to retirement, a conservative approach is more prudent. Advisors may suggest older professionals then begin investing in bonds and other less volatile opportunities. Professionals of all ages can speak with a financial planner for more information regarding retirement savings. In addition, options to invest through an employer can be discussed with human resources personnel.
Steve Liskany can help you plan for a bright future with financial services I’ve lived in Grove City my entire life. Through the years, I’ve come to know many local families and developed many relationships. This local connection has helped me better understand the needs of Allstate customers, especially when it comes to their financial needs. From retirement accounts to college savings I’m available to help customers with a variety of financial solutions. I’m proud to work with a company Allstate offers a wide range of insurance products, so finding just the right type of coverage for you and your family is a breeze. Steve Liskany is here to help you navigate your insurance options.
• Auto Insurance • Home Insurance • Life Insurance • Renters Insurance • Condo Insurance • Motorcycle Insurance • Business Insurance
like Allstate. The life insurance companies owned by Allstate are committed to honesty, fairness and integrity in all customer contacts involving the sale and servicing of individual life insurance and annuities. A commitment to ethics, I appreciate that. I’m committed to showing you how Allstate is different and better than the rest. From sharing our broad product offerings for your protection and financial needs to offering you a real relationship you can count on. I’ll help you prepare for your financial future and offer a higher standard of service, delivered wherever and whenever you need. Steve Liskany 2598 Columbus Street Grove City, OH, 43123 (614) 801-2091
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Preparing credit for large purchases Large purchases, whether you are investing in a vehicle, home or home improvement project, are not to be taken lightly. Before making significant financial commitments, consumers should exercise their due diligence and prepare for such purchases as much as possible. Many people use credit when making large purchases. That may entail using a credit card or financing a purchase via an installment loan rather than purchasing an item outright. To make buying on credit as consumer-friendly as possible, men and women must ensure they are in good financial standing, which can help them get lower interest rates so they pay less for an item than they might if their finances were not in the best of shape. • Get your credit score. A credit score, also known as a FICO¨ score, is a number between 300 and 850 that is calculated based on your payment history, outstanding balances, length of credit history, new credit, and types of credit. Lenders look at this credit score to determine how great a risk you present as a borrower. Whenever you use credit to make a purchase or apply for a loan, your credit score will be checked. The higher the credit score, the more attractive you are to lenders and the lower your interest rate figures to be. • Check for credit report inaccuracies. If your FICO score seems low, there may be mistakes on your credit reports. Request a copy of your credit reports from the three main credit reporting agencies: Equifax, Experian and TransUnion. Look over the reports thoroughly and address any mistakes immediately. • Make sure you have a credit history. In an effort to avoid debt, some people never apply for credit cards or other lines of credit. But having no credit history can hurt you, even if you never accumulated any debt. For example, when applying for a mortgage, you will be asked to show at least three lines of credit (any combination of credit cards, student
Use credit wisely before making any big purchases. loans, car loans, and so on) that have been active within the past 12 to 24 months, according to the resource Credit Sesame. If you have no credit history, apply for a few credit cards and use them regularly, paying off the balance in full each month to maintain active credit and improve your score. However, do not try to establish lines of credit too close to when you’re making a large purchase, as doing so within six months of making your purchase can temporarily lower your credit score. • Keep credit utilization within a safe zone. In determining your credit score, credit agencies will look at credit utilization, among other things. Credit utilization is the ratio of your credit card balances to credit limits as listed on your credit report. If your limit is $1,000 and you have a $300 balance, your credit utilization is 30 percent. To determine your credit utilization, simply divide your credit card balance by your credit limit then multiply by 100. The lower the credit utilization, the better. Pay down debt to help reduce utilization. Consumers ready to make large purchases should factor in credit scores and attractiveness as buyers before they start shopping around.
Every day ways to save money Saving more money is a goal for many people. Whether retirement is looming or decades down the road, saving as much money as possible is a great way for men and women to plan for their financial futures. But saving money is not always so easy, especially as the cost of living continues to rise in so many parts of the world. In its 2015-2016 “Salary Budget Survey,” WorldatWork, a global association for human resources management professionals and business leaders, found that U.S. employees can expect an average base salary increase of 3.1 percent in 2016. That marks only a slight increase from 2015, and many working professionals wonder if that increase will be enough for them to start saving more money. Cost of living salary increases likely won’t be enough for working professionals to grow their savings considerably, if at all. Fortunately, there are several ways that men and women can cut back each day and grow their savings without affecting their quality of life. • Make your own coffee at home.
While few people may give it much thought, that $2 or $3 coffee you buy each morning adds up to a substantial amount of money each month. If your daily cup of joe from the coffee shop next to your office costs $2.50, that’s $12.50 per week (not counting weekend mornings), $50 per month and $600 per year. Buying coffee at the grocery store and preparing it at home won’t cost anywhere near that much, saving you hundreds of dollars per year, which you can put directly into your savings account. • Bring your lunch to work. Many men and women already know that dining in instead of out is a great way to cut back on unnecessary spending. But it’s not just skipping nights out on the town that can help save money. Rather than spending somewhere between $5 and $10 every day on lunch at the office commissary or nearby restaurants, bring your lunch with you. Bringing your lunch allows you to buy in bulk See SAVE MONEY on page 8
Credit Union of Ohio attracts lifelong members With a rebrand last year focused on the needs of its membership, Hilliard-based Credit Union of Ohio’s renewed mission aims to meet the lifelong needs of its members. “Banking products and services should not be one size fits all,” said Jill Gerschutz, Vice President of Marketing and Strategic Planning at Credit Union of Ohio. “We understand that our members have different needs at every stage of life and work to identify and meet those needs.” Above customizing products and services to the different age groups and lifestyles of its membership, Credit Union of Ohio offers various financial education programs and services, including credit score review, budgeting, pre-mortgage credit counseling, debt management, money management, and a variety of financial literacy workshops. “This year we’re focused on offering more financial workshops for our membership,” said Gerschutz, who added that all workshops are free to attend and open to the public. Here are a few tips for making successful financial choices through all of life’s stages. A complete workshop schedule and financial tips can be found at cuofohio.org.
At an early age Take advantage of free financial counseling services and set up an appointment with children to open their first account. A financial counselor can offer suggestions for building positive financial habits as a family. There’s a class for that: Credit Union of Ohio’s popular Fiscal Fanatic workshop, held in the spring and fall, helps teens learn to balance a checking account, work within a budget and learn about ID theft.
As a young adult By the age of 18, you should have a checking and savings account, and possibly a credit card in your name to start building credit. After high school many students struggle with either not establishing credit or not taking care of their credit. Both situations can impact life with employment and applying for credit. There’s a class for that: April 6 - “Preparing to Graduate” will be held at Credit Union of Ohio’s campus branch to help students with budgeting, job search techniques, resume strategies and more.
As an adult Choose a financial institution that can meet the needs of your entire family. Whether you’re single, just starting a family or buying your first home, Credit Union of Ohio has a variety of products and services for every life situation. There’s a class for that: March 19 - Homebuyers Workshop Learn what to consider before buying, the mortgage loan process and more. April 2 - Family Couponing Workshop - Learn to save hundreds at the grocery store and make couponing a fun activity for the entire family.
As a senior Seniors deserve special perks, that’s why Credit Union of Ohio offers Silver Advantage accounts specifically designed for seniors. Find out more about these interest-earning accounts that help bolster a fixed income at cuofohio. org. There’s a class for that: Credit Union of Ohio’s “Preparing for Retirement” workshop is offered at its branches throughout the year and at local senior citizen centers. Call (614) 487-6650 for details. Credit Union of Ohio is federally insured by NCUA and is an Equal Housing Lender.
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How to find a financial planner Managing money can be a daunting task. Monitoring retirement and investment accounts can sometimes seem like a full-time job, and that’s in addition to the responsibilities many men and women already face with regards to their careers and families. To combat the sometimes confusing and intimidating nature of money management, many people enlist the help of financial planners. Financial planners can help men and women navigate the plan for retirement and help them prepare for unforeseen events that can affect their finances. Finding the right financial planner can be similar to finding a physician; just like you don’t want to trust just anyone with your health, you also don’t want your finances in the hands of someone you don’t trust. The following are a handful of tips for men and women as they look for financial planners who they can be comfortable with for years to come. • Choose a certified planner. Many financial professionals claim to be planners, but only those men and women who are certified financial planners, or CFPs, are licensed and regulated.
CFPs must take various classes with regard to financial planning and pass an exam administered by the Certified Financial Planner Board of Standards. In addition, a requirement to maintain their designation as CFPs is that, once certified, CFPs continue their education so they can stay abreast of the latest industry trends and developments. While CFP status does not guarantee a given planner will meet your needs, it’s a good place to start. • Consider how a CFP earns his or her living. How a CFP earns his or her living is another factor to consider. Commission-based financial planners earn commissions when buying or selling a stock, while fee-based planners earn a percentage of your annual assets. Many people starting out prefer planners who earn hourly fees, feeling that such a pay structure makes them more comfortable and gives them time to build up a relationship with their planners. • Work with a fiduciary. Financial planners are held to two standards: the fiduciary standard and the suitability standard. The latter requires that planners give advice that suits investors’ objec-
tives, while the former requires planners to give advice that puts their clients’ best interests ahead of their own. So what’s the difference? A planner beholden to the suitability standard can recommend the least suitable investment option (which may earn him or her more money) among a handful of suitable options, without having to report to his or her client any conflicts of interest, whereas a fiduciary is obligated to recommend the option that is best for
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Stay cool as temperatures rise and save money Excessive energy bills can be a concern in spring and summer, just as much as they are in the winter. So how can you save money while keeping your home cool? The solution is simple: Top up your attic insulation. A poorly insulated attic is a primary source of energy loss, forcing your AC unit to work harder than necessary over the warmer months. Most attics are insulated, but oftentimes the amount of insulation present is inadequate — especially in older homes. Over time, insulation can settle and compact, allowing heat to escape through gaps. Topping it up is easy. Ideally, you want to aim for a depth of 16 inches of insulation for an overall R-value of 50. When existing insulation is present, simply level existing insulation to the top of the joist. Lay a fire- and moistureresistant batt insulation, like Roxul Comfortbatt, on top of joists, running perpendicular to the
first layer. Ensure batts are butted against each other tightly. Fit batts closely to cross joists; cut batt if necessary (this can be done easily with a serrated blade or bread knife) and leave no space between layers. Don’t forget to insulate the attic hatch to the same level as the rest of the attic. Apply weather-stripping to the edge of the hatch to reduce air leakage. Keep in mind that only IC-rated electrical fixtures can have insulation placed with zero clearance. Follow the manufacturer’s instructions and local building code to insulate around the chimney. When a house is insulated properly, energy savings can add up over time. Remember, insulation starts working the moment it is installed and can last for the life of the building. Tips on this easy, low-cost DIY project that will reduce your home’s energy loss and save you money are available at www. diywithroxul.com.
the client. • Be wary of boasts. Some planners will try to impress prospective clients with boastful talk of beating the market. Such boastfulness should raise a red flag, as it suggests a planner is more likely to roll the dice with your money than make sound investments. Finding a trustworthy financial planner is a great way to grow your money. But who to work with is a decision that requires careful thought and research.
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Financial Wellness | Thursday, March 10 & Sunday, March 13, 2016
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ThisWeekNews.com
Teach kids financial lessons
Bringing their lunch to work instead of dining out each day is an effective way for professionals to grow their savings.
SAVE MONEY Continued from page 6
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rather than pay for each individual midday meal, and that can add up to considerable cost savings over the year. • Trim some fat from your cable bill. While cable providers have been slow to embrace customizable plans that allow customers to pick and choose their channels in an effort to save money each month, some providers have begun to offer such plans. Contact your cable provider to see if you can customize your plan so you are no longer paying for channels you don’t watch. If your provider does not allow you to customize, consider cutting your cable entirely. Streaming services such as Netflix and Amazon Prime cost a fraction of monthly cable subscriptions, and these services continue to increase their offerings. • Work with a financial advisor. If you keep coming up empty in your search for ways to save, work with a financial advisor. Financial advisors can help you establish a monthly budget so you are in a good position to save. In addition, such advisors can suggest ways to grow your money that you might not know about.
controlling their impulses with regard to spending. Many adults exercise impulse control by waiting 24 hours to make purchases. In this scenario, adults who see something they like online or in-store that they did not intend to buy will wait a day after seeing the item before deciding whether or not to purchase it. That 24-hour waiting period often prevents people from buying products they don’t need. Kids can benefit just as much from following this guideline. In the interim between seeing the item and deciding whether or not to buy it, discuss with kids the pros and cons of buying the item. This can teach them to carefully consider each of their purchases, making them more responsible consumers for the rest of their lives.
saving for their first car or younger kids saving for a new bike, kids may be more likely to save if they know their contributions are being matched. Parents can explain that matching is not just for kids, as many moms and dads benefit from employers who match their retirement contributions. • Let kids make mistakes. Everyone makes mistakes, especially when it comes to money. Many adults feel the best financial lessons they learned were a byproduct of a mistake they made that forced them to reexamine their approach to money. Letting kids make financial mistakes now may help them avoid bigger and more costly mistakes down the road. • Teach impulse control. Another valuable financial lesson parents can instill in their kids is
Parents have a great opportunity to teach their kids about setting goals and maintaining the discipline necessary to realize those goals. Many adults express a desire to save more money. Parents who want to instill financial responsibility in their children and encourage youngsters to save money right alongside mom and dad can do so in various ways. • Start giving kids an allowance in return for doing their chores. A great way to teach kids about money management is to give them an allowance in return for doing their weekly chores. This teaches kids that they must earn their money and also teaches them to budget. Resist the temptation to give kids extra money or advances on their allowances, as doing so can compromise the lesson that kids need to budget. • Encourage kids to establish specific financial goals. Kids can benefit just like adults by setting specific financial goals. If kids have their eye on a new gadget or gaming console, encourage them to create a savings log that tracks how much they’re saving each week and how close they are getting to reaching their goal. As kids’s balances increase and they get closer to their goal, they may grow just as excited as adults do when they see their investments perform well. • Match kids’ contributions. Another great way to encourage kids to save money is to match the deposits they make into their accounts. Whether it’s teenagers
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