Tag Archives: WAHM Finance

04/23/12

Checking your credit score

You’ve seen the (annoying) commercials, urging you to “Get your free credit report today!”

 

Though advertised campaigns and not public service announcements, I encourage readers to indeed, review your credit report for free online.

 

Recently, I checked mine out, assuming to find nothing but on time payments and business as usual. However, I was devastated to discover a charge from a credit agency of $70. It was tearing my credit score apart. I did not recognize the company, the charge, nor had I received any types of notices or information from them about this alleged outstanding balance.  Yet I was being penalized–greatly!

 

I followed the dispute process to have it removed, as I encourage readers to do if they feel there is unfair information on your report. (Note that I had to dispute it with all three major credit agencies separately.)  They also informed me that it may take 30-90 days for your credit report to update this information–even if it was fraudulent or found to be incorrect.  Thus, if I would have applied for any type of loan during this time period, my credit score would have reeked havoc on the terms of such loan.

 

You can check out your credit online at www.annualcreditreport.com.  The law provides one free credit report annually.  This is the only website endorsed by the Federal Trade Commission for receiving your free annual credit report, provided by the law. 

 

Since the reports given by all three major credit agencies are usually very similar, consider checking your report quarterly, each time from a different agency.  There are also other situations that may allow you to receive more than one free credit report annually.  These are outlined on each of the major three credit agencies websites:  Experian, TransUnion, and Equifax.

 

Be cautious however, of sites that want you to purchase your credit score. More importantly is reviewing the information on your report to find any errors or omissions (as I did) that affect your golden score.

04/16/12

Saving for college just got even better!

So, I am a big fan of Upromise.  I’ve written about it before (click here to read about the program and how it helps parents save for college).

 

Since I found out about the program a few months ago, I have earned over $70 for Max’s college fund.  All by buying things online and through the Upromise website, that I would be buying anyway.

 

As an example: we are doing construction on our home and I used the program to purchase all our building supplies at Lowes.com.  Lowes contributed 5% of my purchase amount to Max’s 529 plan.  It’s ridiculously easy!  Free money.

 

In April, Upromise made it even easier to utilize their program by having all participating stores offer 5% contribution on all purchases, every day.  (Contribution rates used to vary from store to store and could be as small as 1%).  With 5% now being the minimum percentage contributed, it’s even easier to accumulate savings.

 

Some stores offer even more than 5%, and sometimes stores will run “specials” in which they temporarily increase their contribution rate. 

 

You can also use the program to pay down college loans with SallieMae (not just save for college) though we decided to use the program for Max.

 

It’s free money, people!!  You can sign up easily at their website and find more information, including their FAQs about how the program works. 

 

 

Join Upromise 728x90

11/2/11

Social Security benefits for next generation? Don’t count on it!

Is our Social Security in Jeopardy?

 

My answer would be, “Absolutely.”

 

In fact, the Social Security Administration admits to the same questionable and doubtful view of the future of its program.  Here is what the Social Security Administration itself has to say on the matter,

 

“The financial conditions of the Social Security and Medicare programs remain challenging. Projected long-run program costs for both Medicare and Social Security are not sustainable under currently scheduled financing, and will require legislative modifications if disruptive consequences for beneficiaries and taxpayers are to be avoided. “

 

During the infamous “Debt Ceiling” debate in August, concerns about Social Security and Medicare were again brought to the forefront of the American people’s attention—as they should be.

 

As most know, Social Security is in serious fiscal trouble.  While many experts believe there is no immediate concern for those currently receiving benefits, or to those who may do so in the near future, I don’t feel as confident.  It’s my opinion that Americans will need to rely more on their own income and savings, and less on Social Security retirement benefits to maintain their desired retirement lifestyle.

 

According to the SSA, 94% of American workers are covered under Social Security. 

 

Social Security is mostly funded through payroll tax in which employees and employers each pay 6.2% of wages up to $106,800.  Self-employed individuals pay the combined rate of 13.4%.

 

While disabled workers and survivors receive benefits under the SSA, the majority of beneficiaries are retired workers.  In 2011, $40.7 billion will be paid out as retirement benefits.   The average monthly benefit paid to a retired worker in 2011 is $1,175.

 

As a young individual in this country, I am not relying on any form of Social Security for my retirement.   I encourage readers under the current retirement age to conservatively assume such benefits will be unavailable or greatly reduced in the future. 

 

Yes, I understand that as a taxpayer I am contributing to Social Security.  But I am not naive enough to believe these funds are being set aside for me (or my generations) future needs.  On the contrary, what we are paying into the system now is help funding our parents and grandparent’s generation.

 

Somewhere, the cycle has to stop.

 

While no politician wants to be involved in cutting any type of social security benefits, the truth remains that there is actuarially speaking, not enough funds to sustain the system in its current form.  Changes will inevitably have to be made either to the amount of benefits received, or qualifications for receiving such benefits.

 

Thus, my family and I will work hard to create our own stream of retirement income for our future.  Any social security we receive I will consider a bonus or unplanned addition. 

 

 Will I be frustrated if I never receive a dime of benefits after years of contributing to the system? Of course.  Am I hopeful major reform is made and that Social Security can be sustainable for our generation and those to come?  Sure.  But, realistically do I see that happening?  No.

 

Take your future into your own hands.  Work hard, budget, save for retirement, and accumulate your own wealth and retirement income.

 

11/2/11

4 Estate Planning Documents every Family needs

4 Estate Planning Documents you Need

 

Will:
A will is simply a document which outlines your final wishes.  It can be as simple as a “sweetheart will” in which one spouse leaves everything to the other, or as complex as one which makes considerations for charities, non family members, or trusts.  A guardianship provision, if applicable, denotes your choice of a guardian for your minor children.

 

Living Will:
Also called a health care directive, a living will serves as an outline of your preferences regarding medical treatment and health care decisions.  It may be used by health care professionals or by your family in the event you become incapacitated.  The document also allows you to appoint someone to make decisions and carry out your wishes on your behalf.

 

Power of Attorney:
Similar to a living will, a Power of Attorney appoints another individual to act on your behalf. The powers given can vary drastically depending upon how the document is created.  It is therefore very important to choose your POA wisely, and to consider with great thought the amount of power you wish for them to have.

 

Trust:
Trusts also vary greatly in complexity.  Because of this, they can be a great estate planning tool.  Trusts may be used to reduce estate taxes, provide for minor or special needs children in the event a parent’s death, or simply as a vehicle to reposition assets.

 

Estate planning is complex. Because it is not a one-size-fits-all kind of process, it’s often worth hiring a reasonably priced attorney to have your documents created or reviewed.