Personal Finance News Monday 12/31

Phil's Personal Finance Tip of the Day:

A Budget For Today and Tomorrow
Kiplingers.com

Start 2013 with a budget to achieve your financial goals!

USE THIS WORKSHEET to get on top of your monthly living costs by projecting expenditures in various categories, and then comparing those projections to what you actually spend. First, enter your estimates in the Projected column. Print this page and keep it. Over the next month, record your expenditures in these categories in a small notebook, then re-enter both sets of numbers in the worksheet. The buttons will calculate the rest of the values for you. You may want to save this file on your own computer or simply bookmark the page to use over successive months.

Read more: http://www.kiplinger.com/tools/budget/#ixzz2Ge2QTExp
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Inspirational Quotes@Inspire_Us from Twitter:
The past cannot be changed. The future is yet in your power. - Mary Pickford

Personal Finance News Saturday 12/29

Phil's Personal Finance Tip of the Day:

How to Prepare When Next Year’s Tax Rates Are Anyone’s Guess

By RON LIEBER/New York Times

Published: December 28, 2012

This was the week we were supposed to get a grand bargain. Instead, we got an undignified stalemate.

So we’re left with no idea how much we’ll be paying in federal income taxes in 2013, and a wide range of possibilities for taxes on investments and estates and tax deductions for mortgage interest and charitable contributions. Plenty of people will spend the next several days feeling helpless, with one eye on the stock market and the other on Washington.

For all the uncertainty, though, we do know a bit about how things will change next year. For example, new taxes, some of which will help pay for Medicare, will affect a few million affluent households.

We also know that in all likelihood, whatever happens in Washington in the coming days or weeks won’t come close to solving the problem that tends to clear the room when you say it aloud: We are not collecting enough money to pay for the promises we’ve made to one another. It isn’t just Medicare, either. Many states have steadfastly refused to set aside the trillions of dollars they will need to cover benefits for public workers once they retire.

As for what you should do about all of this, the answer, for now, is probably nothing. In the short term, stock prices may decline and the economy may get the hiccups, but it’s foolish for amateurs to try to alter their investment portfolios to take advantage of the situation. Leave that to the hedge funds, and watch how many of them get it wrong.

In the long term, however, prepare to make the kind of attitude adjustment that can take awhile to embrace. A decade or two from now, most of us will probably be paying more in taxes or getting fewer services from the government than we do now. Once that happens, you’ll need to earn more, save more, live on less or take better advantage of legal tax avoidance strategies.

In fact, you may want to try to do all of these things in the next couple of years, just to see which ones you can accomplish with the least amount of pain.

Here is what we do know will happen in 2013. First, there is a new tax of 0.9 percent on wages, other compensation and self-employment income above $200,000, if you’re single, or $250,000, if you’re married and filing your taxes jointly. This is on top of the existing Medicare tax.

Second, there is a new tax of 3.8 percent on investment earnings, including interest, dividends and capital gains, in addition to whatever the capital gains tax ends up being. It applies to single people with modified adjusted gross income of $200,000, or $250,000 for married couples filing jointly.

There is still some time to maneuver around the second tax. If you have winning investments you were planning to sell soon anyway, say for a down payment on a house, you might as well do it by Monday. That way, you can avoid the new tax if you’re certain you’ll be in the qualifying income category next year.

To read the entire article from RON LIEBER/New York Times:

http://www.nytimes.com/2012/12/29/your-money/how-to-handle-tax-rate-uncertainty.html?src=me&ref=general

Inspirational Quotes@Inspire_Us from Twitter:

If you're not making mistakes, then you're not doing anything. -John Wooden

Personal Finance News Friday 12/28

Phil's Personal Finance Tip of the Day:

5 things you need to know about the 'fiscal cliff'

How going over the edge would impact your bottom line

Hannity/Fox News December 27, 2012

Kerry Picket and Charles Payne go over the 5 things that will happen if the Fiscal Cliff hits on 1/1/13:

http://www.foxnews.com/on-air/hannity/index.html

Inspirational Quotes@Inspire_Us from Twitter:

You cannot escape the responsibility of tomorrow by evading it today. -Abraham Lincoln

Personal Finance News Thursday 12/27

Phil's Personal Finance Tip of the Day:

7 money moves to make in 2013
Lori Rothman/Fox and Friends Wednesday December 26, 2012

Ways to save plus ways to make more cash in 2013.

Prepare financially for the new year:

http://www.foxnews.com/on-air/fox-friends/index.html#/v/2056644113001/7-money-moves-to-make-in-2013/?playlist_id=86912

Inspirational Quotes@Inspire_Us from Twitter:

A person often meets his destiny on the road he took to avoid it. - Jean de La Fontaine

Personal Finance News Wednesday 12/26

Phil's Personal Finance Tip of the Day:

Six Money Moves You Should Make in 2013

By BRETT ARENDS/Wall Street Journal 

Are you ready for 2013?

Most financial-planning advice, like most New Year's resolutions, is too complex or too banal.

Half of it is designed for Type-A drill sergeants who already alphabetize their refrigerators. The other half you've heard before.

Let's assume you are already paying off your credit cards, contributing to your 401(k) at work and flossing after every meal.

Here are six unusual, and doable, smart money moves for the new year.

1 Work out your biggest savings goal.

Many people working today are likely to live for three decades after they become eligible for Social Security, but few of them have a clue what that means financially.

Just 42% of working-age Americans have even tried to calculate what they will need in retirement, according to the Employee Benefit Research Institute, a Washington, D.C.-based think tank.

The grim reality: 60% of them have less than $25,000 saved up, excluding the value of their home, and 30% have less than $1,000. Good luck with that.

How much will you need? To replace your current income for 30 years, you would need—assuming an investment return of three percentage points above inflation—about 20 times one year's income. Social Security aims to replace about 40% of your annual income: By that yardstick you would need to save about 12 times your annual income before you retire.

For a more precise number, use the Social Security Administration's retirement estimator. Subtract your expected annual benefit from your current yearly pay, and multiply by 20.

To read the entire article from BRETT ARENDS/Wall Street Journal:
http://online.wsj.com/article/SB10001424127887324461604578189273704184736.html?mod=WSJ_article_MoreIn_PersonalFinance

Inspirational Quotes@Inspire_Us from Twitter:
I'd rather be a failure in something that I love than a success in something that I hate. -George Burns

Personal Finance News Tuesday 12/25

MERRY CHRISTMAS!

TODAY A BREAK FROM PERSONAL FINANCE:

For family that lost home to Sandy, 'a miracle'

By HELEN O'NEILL | Associated Press

LONG BEACH, N.Y. (AP) — The text from Sister Diane at St. Ignatius Martyr church was as odd as it was urgent: "A man is going to call. You must answer the phone."

Kerry Ann Troy had just finished her daily "cry time" — that half-hour between dropping the kids off at school and driving back to her gutted house on New York's Long Island, or to the hurricane relief center, or to wherever she was headed in those desperate days after Sandy, when life seemed an endless blur of hopelessness and worry.

Cellphone reception was sporadic, so even if the stranger called, she would likely miss him. Besides, she had so many other things on her mind.

After spending the first week with relatives in Connecticut, Troy, a part-time events planner for the city, and her husband, Chris, a firefighter, had managed to find a hotel room for a week in Garden City. The couple had no idea where they and their three children — Ryan, 13, Connor, 12, and Katie, 4 — would go next. Hotels were full. Rentals were gone. Their modest raised ranch, a few blocks from the beach, was unlivable.

But the Troys faced another dilemma.

The family had been looking forward to a weeklong, post-Thanksgiving trip to Disney World, paid for by the Make-A-Wish-Foundation to benefit Connor, who suffers from a life-threatening, neuromuscular disease. He had lost one wheelchair to the storm. His oxygen equipment and other medical supplies were damaged by water. He was disoriented and confused.

How could they tell their sick child that the storm that had disrupted his life might also cost him his dream — to meet Kermit the Frog?

Yet Chris Troy felt he couldn't leave. And Kerry Ann said she wouldn't go without him.

And then — in the space of a few hours — everything changed.

A school administrator pulled Kerry Ann aside when she went to pick up Katie. She told her of a vacant summer home — a spacious, fully furnished, three-bedroom house in nearby Point Lookout, which the owners wished to donate to a displaced family. The Troys could live there indefinitely, at no cost, while they sorted out their lives.

Kerry Ann could hardly believe their good fortune. The kids could stay in their schools. The family could go to Florida after all.

But that was only the beginning.

The stranger that Sister Diane had texted her about earlier had left a message.

His name was Donald. He wanted to meet the Troys. He wanted to help.

To read the entire article from HELEN O'NEILL | Associated Press:
http://news.yahoo.com/family-lost-home-sandy-miracle-201611142.html

Personal Finance News Monday 12/24

Phil's Personal Finance Tip of the Day:

7 last-minute gift ideas

A shopping tip sheet for champion procrastinators

By Kelli B. Grant /MarketWatch

There’s only one shopping day left until Christmas, but take heart, procrastinators: you’re not alone. A little more than 10% of consumers expect to be out today checking off final items on their list, according to the National Retail Federation.

Here are some ideas for those trekking out to the mall today or shopping online.

Gift cards

Gift cards may be one of the most popular options. About half of retailers now offer digital versions that can be purchased online and printed, emailed or even text-messaged to a recipient. Maintenance fees have disappeared for the most part, but it’s still important to review the terms. One thing to consider: A quarter of stores require digital gift cards to be spent online, according to ScripSmart.com. It’s also worth checking gift card resale sites such as PlasticJungle.com, which often sell electronic cards for less than face value.

Personalized gifts

Drugstore photo centers http://www.marketwatch.com/story/6-odd-places-to-buy-holiday-gifts-2012-12-05# can often whip up personalized gifts such as calendars, photo books, key-chains and ornaments for same-day pickup. Selection and turnaround times vary store to store.

To read the entire article from Kelli B. Grant /MarketWatch:
http://www.marketwatch.com/story/7-last-minute-gift-ideas-2012-12-24

Inspirational Quotes@Inspire_Us from Twitter:
If you're bored with life, if you don't get up every morning with a burning desire to do things - you don't have enough goals. -Lou Holtz

Personal Finance News Saturday 12/22

Phil's Personal Finance Tip of the Day:

Build a Better Budget in 2013

A good budget helps you reach your goals and frees up money for an occasional splurge.

By Jessica L. Anderson, Associate Editor

From Kiplinger's Personal Finance magazine, January 2013

Lose weight. Go to the gym three times a week. Stick to a budget. Our New Year’s resolutions can end up feeling as restrictive as a straitjacket, so it’s no wonder we often don’t follow through on them. But budgeting doesn’t have to handcuff you. Instead, it should give you permission to spend on what’s most important to you. “Personal finance is more personal than finance,” says Tim Maurer, a certified financial planner in Baltimore, Md. “And nowhere is that more true than in budgeting.” You make the rules, so craft them to help you succeed.

TOOL: Budget Worksheet

Set goals. Working out a theoretical budget is great. But if you’re having trouble putting it into practice, you may lack motivation. Discipline is easier to embrace when it comes with a reward. Your goal might be to save enough money for a Caribbean vacation or a down payment on a new crossover. Or maybe you just want to stop living paycheck to paycheck.

If you have a big monetary target -- say, to save $30,000 for a down payment on a house -- break it into smaller goals so that you can see the light at the end of the tunnel. Farnoosh Torabi, author of Psych Yourself Rich, advises sharing your goals with someone; like going to the gym, financial goals are easier when you have a buddy to help keep you on track.

Read more at http://www.kiplinger.com/magazine/archives/build-a-better-budget-in-2013.html?si=1#kJuT9vt7iiFBkyFI.99

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Inspirational Quotes@Inspire_Us from Twitter:

The difference between the impossible and the possible lies in a man's determination. -Tommy Lasorda

Personal Finance News Friday 12/21

Phil's Personal Finance Tip of the Day:

12 Year-End Tax Moves for 2012

By Jill Schlesinger | CBS MoneyWatch – Tue, Dec 18, 2012 12:06 PM EST

Is the so-called "fiscal cliff" throwing a wrench in your 2013 planning? Don't despair -- there are tried and true year-end moves to make now, which can help lower your tax bill in April. While you may need to make some assumptions to prepare for various what-if scenarios, the fiscal cliff actually may present interesting opportunities for some taxpayers.

"A little planning can go a long way," according to Michael Goodman, CPA/PFS, CFP and president of Wealthstream Advisors, but he cautions that investors be careful not to let the tax tail wag the investment dog. "You need to make a decision about whether you are holding certain positions for the long haul. The uncertainty surrounding the fiscal cliff should encourage you to determine your specific goals and then create a plan to help you get there."

As you put that plan together, take advantage of these 12 tax tips for 2012:

1. Mail your checks for deductible purchases: Procrastinator alert! If you're the type of person who waits until the last minute for everything, take note: To qualify for write-offs of charitable contributions and business expenses, your payments must be postmarked by midnight Dec. 31. The IRS says just writing "December 31" on the check does not automatically qualify you for a deduction; and pledges aren't deductible until paid. Donations made with a credit card are deductible as of the date the account is charged.

2. Give appreciated stock or fund shares to charity: Get in the holiday spirit, with the help of Uncle Sam. One way to lower your tax bill in April is to donate appreciated securities, like stocks, bonds or mutual funds to a charity. You'll write off the current market value (not just what you paid for them) and escape taxes on the accumulated gains. There is no overall limit on itemized deductions for 2012. For 2013, the overall limit on itemized deductions is scheduled to be reinstated and fiscal cliff negotiations may put further deductions in place.

To read the entire article from Jill Schlesinger | CBS MoneyWatch:

http://finance.yahoo.com/news/12-year-end-tax-moves-for-2012-170618917.html;_ylt=ApgjepJH9sBkXXp3vL9vo7qiuYdG;_ylu=X3oDMTQ0NmpwMXFrBG1pdANGUCBQZXJzb25hbCBGaW5hbmNlBHBrZwM2NDM1Zjc5NS00MGY4LTMzMjAtOGYxMC0xNjc0NzdiMmZmOTkEcG9zAzEEc2VjA01lZGlhU2VjdGlvbkxpc3QEdmVyA2Y0YTQ2NmEyLTQ5MzctMTFlMi1iYmRmLTczMzQxYTNjOGRhZg--;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

Inspirational Quotes@Inspire_Us from Twitter:

Success is the sum of small efforts, repeated day in and day out. - Robert Collier

Personal Finance News Thursday 12/20

 Phil's Personal Finance Tip of the Day:

7 Pricing Tricks That Make You Spend More

By Renee Morad | Money Talks News – Fri, Dec 14, 2012 10:54 AM EST

If you find yourself reaching for a $39.99 sweater or loading up on $0.99 iTunes songs, you’re not alone.

The strategy of ending prices with 99 cents has been around for decades and has worked its magic on almost all of us. But it’s certainly not the only trick retailers use when pricing products.

Merchants use a variety of strategies to get us to spend more – from labeling prices without dollar signs to setting a per-customer limit. And this takes place at all ends of the spectrum – from buying food and toys to cars and houses.

Here’s a detailed look at the tricks retailers use when pricing products:

1. Prices that end in 9, 99, or 95
Known as “charm prices,” prices ending in 9, 99, or 95 make items appear cheaper than they really are. Since people read from left to right, they are more likely to register the first number and make an immediate conclusion as to whether the price is reasonable.

When professor Robert Schindler of the Rutgers Business School studied prices at a women’s clothing store, he found the 1 cent difference between prices ending in .99 and .00 had “a considerable effect on sales,” with prices ending with .99 far outselling those ending with .00.

While this works right down to the last digit on a product as small as an iTunes download, it’s also effective on anything from a pair of jeans to a car or house. Homes selling for $299,000 often sell faster than those costing $300,000. The reason? It’s under, rather than at, the upper limit of those shopping for houses in the $250,000 – $300,000 price range.

2. Dollars without cents
If you see prices with no change, the retailer or restauranteur is sending the message that you’re in a high-end place. The implication is that if you’re concerned about pocket change, you should move on.

3. Prices without dollar signs
In Tricks of the Trade: Restaurants, we explained the rationale behind restaurants intentionally leaving dollar signs off menus: It makes customers spend more. In a Cornell study, guests given a menu with only numbers and no dollar signs spent significantly more than those who received a menu with either prices showing a dollar sign or prices written out in words.

The same tactic translates to retail stores. When items are marked, say, “20″ without the dollar sign, retailers are hoping customers won’t associate the amount with money and thus be less likely to keep a running tally of how much they’re spending as they shop.

To read the entire article from Renee Morad | Money Talks News:
http://finance.yahoo.com/news/7-pricing-tricks-spend-more-105521967.html

Inspirational Quotes@Inspire_Us from Twitter: 

We are what we repeatedly do. Excellence, then, is not an act, but a habit. -Aristotle

Personal Finance News Wednesday 12/19

Phil's Personal Finance Tip of the Day:

Worth it or not: a gift guide

From portable grills to bathroom scales, we weigh the competition

By MarketWatch

We’ve all been there, standing in the aisle of a store, spending way too much time weighing the small differences between two similar products. Will the more expensive sleeping bag really perform better? When it comes to noise-canceling headphones, is $450 too much, too little, or just right?

Here’s some help. Throughout the year, we look at sets of two similar consumer products, and assess the better buy. This year, we looked at a wide variety of goods, including hear-rate monitors, paper shredders and carry-on luggage. To aid in your holiday shopping, here are eight suggestions.

GPS Heart-Rate-Monitor Watches

Worth it: Garmin Forerunner 610 ($400)

Those extra cookie pounds aren’t going to disappear on their own. This heart-rate-monitor watch with GPS has a weatherproof touchscreen that can be used while wearing gloves and lets runners wirelessly upload workouts and track them online.

Not worth it: Timex Ironman Global Trainer With GPS ($360)

The Ironman must be plugged into a computer to sync—and access to the advanced features of its partner exercise-tracking website costs up to $120 a year.

Timex says its customers get more free features than other users of the site. — Kate Poole

To read the entire article from MarketWatch:
http://www.marketwatch.com/story/worth-it-or-not-a-gift-guide-2012-12-05

Inspirational Quotes@Inspire_Us from Twitter:
The main thing is to keep the main thing the main thing. - Stephen Covey

Personal Finance News Tuesday 12/18

Phil's Personal Finance Tip of the Day:

Get the best price on online holiday shopping

Tips from consumer savings expert Andrea Woroch

Fox and Friends/Fox News Tuesday December 18,2012

2 segments this morning from Amdrea Woroch on last minute online purchases:

Fox and Friends:
http://www.foxnews.com/on-air/fox-friends/index.html#/v/2042385392001/get-the-best-price-on-online-holiday-shopping/?playlist_id=86912

After the Show Show Fox and Friends:
http://www.foxnews.com/on-air/fox-friends/index.html#/v/2043430112001/after-the-show-show-online-shopping/?playlist_id=86912


Inspirational Quotes@Inspire_Us from Twitter:
Do what you can, with what you have, where you are. -Theodore Roosevelt

Personal Finance News Monday 12/17

Phil's Personal Finance Tip of the Day:

5 Christmas Extras You Don’t Need

By Dave Ramsey from daveramsey.com

This holiday season, just like every Christmas, you have all sorts of businesses competing for your hard-earned dollars. If you’ve turned on the TV or been to the mall recently, you know they will market you to death.

One thing they love to market is extra stuff. And, usually, it’s extra stuff you don’t need. You know what you must have to buy extra stuff you don’t need? Extra money.

If you’re getting out of debt or building your savings, extra money isn’t part of your vocabulary right now.

But these businesses will do everything they can to tack on extras to your holiday bills.

Check out these Christmas extras they’ll say you can’t live without. Truth is, you don’t need them, regardless of your budget.

 

Extended Warranties

You’ll hear the pitch for the extended warranty as soon as you reach the register. So we want you to practice saying this: “No.” It’s a complete sentence. Now, wasn’t that easy?

Decline the extended warranty simply because it’s not a good deal. The math doesn’t make sense because 75–85% of the warranty cost goes to marketing and commissions. Warranties at electronic stores are ridiculous because these stores work on such slim margins. They make most of their money on financing and extended warranties. That’s why you’ll hear a pitch about a $1 warranty on your $2 pack of chewing gum.

To read the entire article from daveramsey.com:
http://www.daveramsey.com/christmas/blog/id/5-christmas-extras?ectid=1212cnlextra&et_cid=2214834&linkid=http%3a%2f%2fwww.daveramsey.com%2fchristmas%2fblog%2fid%2f5-christmas-extras%3fectid%3d1212cnlextra

Inspirational Quotes@Inspire_Us from Twitter:
If you're going through hell, keep going. -Winston Churchill

Personal Finance News Saturday 12/15

Phil's Personal Finance Tip of the Day:

Financial Goals Every Consumer Should Make

by Donna Fuscaldo

Published December 14, 2012

FOXBusiness

The start of a new year provides a fresh chance to get your finances in order, create a budget and increase your savings.

“A lot of people are thinking about the national deficit and unemployment,” says certified financial planner Dan Keady, director of financial planning at TIAA-CREF. “People need to take those concepts to a personal level and have a New Year’s resolution to take control.”

According to money experts, to make a financial resolution stick, you must create an actionable and realistic goal and then conduct a thorough personal finance assessment.

“To take an assessment, list on a piece of paper all you own and call it assets and then all you owe and call it liabilities,” says certified financial planner Karl Byrd, vice president of Security Ballew Wealth Management.

“The difference between the two numbers is your net worth.”

Byrd advises conducting this evaluation every year to help identify any trends over time. For instance, if your savings is steadily increasing, that means your budgeting plan is working. However, if your debt level is creeping up, it’s time to readjust your spending habits.  

Read more: http://www.foxbusiness.com/personal-finance/2012/12/14/financial-goals-every-consumer-should-make/#ixzz2F3AjhVcn

 

Read more: http://www.foxbusiness.com/personal-finance/2012/12/14/financial-goals-every-consumer-should-make/#ixzz2F3AH56HQ

 

Inspirational Quotes@Inspire_Us from Twitter:

Champions keep playing until they get it right. -Billie Jean King

Personal Finance News Friday 12/14

Phil's Personal Finance Tip of the Day:

14 Shortcuts for Everyday Tasks

By Amanda Hinnant/realsimple.com

Better, faster, and easier ways to get from point A to point B.

Run Errands

“Plan the order of your stops in a clockwise direction,” advises Susan Hamersky, owner of the Los Angeles–based errand company California Concierge. “That way, you avoid all the time-consuming left turns.” Also, schedule your errands so you can drop things off on your way out and pick them up on your way home, says Dan McMackin, a spokesman for UPS and a former driver. Keep a cooler in your car for perishables, too. Then a stop at the market doesn’t have to be immediately followed by a run home to the refrigerator, says Julie Hagenmaier, founder and CEO of My Girl Friday, an errand company in Cincinnati.

 

Next: Dry Your Tears

 

To read the entire article from Real Simple.com:

http://www.realsimple.com/work-life/life-strategies/15-shortcuts-for-everyday-tasks-10000001644732/index.html

 

Inspirational Quotes@Inspire_Us from Twitter:

Perfection is not attainable, but if we chase perfection we can catch excellence. -Vince Lombardi

Personal Finance News Thursday 12/13

Phil's Personal Finance Tip of the Day: 

10 Best Ways to Find Holiday Deals Online

These shopping strategies and 20 Web sites can help you save big.

By Cameron Huddleston, Contributing Editor, Kiplinger.com

Sure, doing your holiday shopping on Black Friday -- the day after Thanksgiving -- is one way to score deep discounts. But if you don’t want to deal with the crowds in the stores, you can still save big by buying the items on your gift list online. In fact, if you use the strategies and sites listed below, shopping online may be the best way to get deals this holiday season.

Read more at http://www.kiplinger.com/features/archives/10-best-ways-to-find-deals-online-best-deal-sites.html#Ju3o0exOUg1FBxot.99

Read more: http://www.kiplinger.com/features/archives/10-best-ways-to-find-deals-online-best-deal-sites.html#ixzz2Exo9de3n

Become a Fan of Kiplinger's on Facebook

Inspirational Quotes@Inspire_Us from Twitter:
Change your thoughts & you change your world. -Norman Vincent Peale

Personal Finance News Wednesday 12/12

Phil's Personal Finance Tip of the Day:

The Best In...

Financing Your Future/The Wall Street Journal

Getting Kids on Track If you plan to spend some time with your adult children during the holidays, point them to a new report from T. Rowe Price, TROW -0.23%the Baltimore-based mutual-funds company. In a survey of investors ages 21 to 50, researchers found that such individuals have laudable goals—72% said saving for retirement is their top financial priority—but a poor understanding of how to reach them. Many advisers recommend saving at least 15% of annual income, but about two-thirds of those ages 21 to 50 with access to a 401(k) are contributing 10% or less of their salaries to their accounts. Young investors also might be overly cautious: Fully 37% said they are refraining from investing in stocks. So go ahead: A little dinner conversation about planning for the future never hurts.

To read the entire article from :
http://online.wsj.com/article/SB10001424127887324595904578121270315482776.html?mod=WSJ_RetirementPlanning_MoreHeadlines

Inspirational Quotes@Inspire_Us from Twitter:
Just do what you do best. -Red Auerbach (Basketball coach)

Personal Finance News Tuesday 12/11

Phil's Personal Finance Tip of the Day:

The Best Way to Fund Going Back to School

by Dave Ramsey

Dave Says

Published December 11, 2012

FOXBusiness

Dear Dave,

Is it a good idea for a married couple in their early thirties, who have a lot of student loan debt, to cash out one of their 401(k)s to pay it off?
-Marcy

Dear Marcy,

No way! You never cash out a 401(k) or IRA to pay off debt, unless it’s to avoid a foreclosure or bankruptcy. Let’s say you take $50,000 out of your 401(k). Do you know what happens next? They’re going to charge you a 10% penalty, plus your tax rate. If you make $75,000 a year, that puts you in a 25% tax rate, plus the penalty. That’s a 35% hit, and that’s how much of your money is going straight down the toilet.

Look at it this way. You wouldn’t ask me if it’s okay to borrow money at a 35% interest rate to pay off your school loans, right? That would be ridiculous, and this is just as dumb.

There are no shortcuts when it comes to getting out of debt, Marcy. Roll up your sleeves and get on a beans and rice budget where every dollar has a name. This will enable you to save money and pay off that debt!
-Dave

Read more: http://www.foxbusiness.com/personal-finance/2012/12/11/best-way-to-fund-going-back-to-school/#ixzz2Esrimxo6

Inspirational Quotes@Inspire_Us from Twitter:

Although the world is full of suffering, it is also full of the overcoming of it. -Helen Keller

Personal Finance News Monday 12/10

Phil's Personal Finance Tip of the Day:

Lower Your Water Bill With One Simple Move

By Nadine Cheung Posted 10:00AM 11/09/12 Savings Experiment, Did You Know

Your water bill can put a big dent in your budget, but there are ways to lower it each month. With just one simple move, you can save up to 30 percent off the cost of water each year.

To watch the video from Savings Experiment:
http://www.dailyfinance.com/2012/11/09/did-you-know-how-to-lower-your-water-bill-savings-experiment/?ncid=txtlnkusdail00000004

Inspirational Quotes@Inspire_Us from Twitter:

A superior man is modest in his speech, but exceeds in his actions. - Confucius

Personal Finance News Saturday 12/8

Phil's Personal Finance Tip of the Day:

7 Retirement Planning Myths Debunked

Don't fall victim to misconceptions about retirement planning; 7 common myths debunked

By Dave Carpenter, AP Personal Finance Writer | Associated Press – Fri, Dec 7, 2012 10:37 AM EST

CHICAGO (AP) -- No matter how many years you are from calling it quits, it's essential to have some kind of plan in mind for financing retirement.

The days of counting on Uncle Sam and a company pension to carry you through old age are long gone.
We're living increasingly in a "yoyo" economy — short for "you're on your own."

But it's easy to get fooled by some of the many myths about retirement planning that exist on the Internet or in misguided advice passed along unwittingly by well-meaning family or friends. Heeding bad tips could cost you in the future when you can least afford it.

Here are some of the most common myths about retirement planning, and the truth behind them.

MYTH NO. 1: It's OK to postpone saving for retirement until other needs are taken care of.

Don't fall into the trap of thinking it'll be easier to save for retirement in just a few more years. There are competing, expensive needs no matter how old you are — from college loans, wedding expenses to home, kids and their college. Every year you delay means you'll need to save more in order to get on track.

"The best time to start saving for retirement is when you were 22 years old," says Stuart Ritter, a certified financial planner with T. Rowe Price in Baltimore. "The second-best time is now."

MYTH NO. 2: Medicare will take care of almost all your health care needs.

Medicare covers about half of all health care costs for those enrolled in the program. For the rest, yes, you're on your own. That means you'll be on the hook for out-of-pocket costs for uncovered services such as long-term health care as well as dental, hearing and eye care, along with supplemental insurance costs.

A 65-year-old couple retiring this year is estimated to need about $240,000 to cover medical expenses throughout retirement, according to a study of retiree health care costs by Fidelity Investments. Much of that comes in the final years of retirement.

To read the entire article from Dave Carpenter, AP Personal Finance Writer | Associated Press:

http://finance.yahoo.com/news/7-retirement-planning-myths-debunked-194705723.html;_ylt=AjEt0TehUof_Mb6pwEyABnuiuYdG;_ylu=X3oDMTRmZ21obDBoBG1pdANGUCBGb2N1cyBvbiBMaWZlbG9uZyBJbnZlc3RpbmcEcGtnA2NhNTVmZjg3LWEyMjAtMzIwOC05Mjk2LTA1NzJhMTM2MDQ5ZgRwb3MDMwRzZWMDTWVkaWFTZWN0aW9uTGlzdAR2ZXIDYWE2MTE2ZGEtNDJmMC0xMWUyLTkzZDctZWE5OGJmOTYyZjk3;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

Inspirational Quotes@Inspire_Us from Twitter:
If you are not willing to risk the unusual, you will have to settle for the ordinary. -Jim Rohn

Personal Finance News Friday 12/7

Phil's Personal Finance Tip of the Day:

3 tips for better holiday tipping

Many consumers are still stingy when it comes to tipping

By Kelli B. Grant/MarketWatch

Holiday tips are one of the first expenses to fall by the wayside when times are tough, and they’re sometimes the last to bounce back. Even though consumers say they plan to spend more on gifts, decorations and other purchases this year, experts say tipping will remain fairly flat.

Last year, 39% of consumers didn’t tip any of their service providers, up from 38% in 2010, according to the Consumer Reports National Research Center. Average tip amounts have held steady, with $20 averages for providers including garbage collectors, teachers, hairstylists, newspaper carriers and pet-care providers.

“Tips are pretty uniform,” says Tobie Stanger, senior project editor for the Consumer Reports National Research Center, which tracks gifting for 10 different service providers. “We haven’t seen much of a change.”

Inspirational Quotes@Inspire_Us from Twitter:
I hated every minute of training, but I said, “Don’t quit. Suffer now and live the rest of your life as a champion. -Muhammad Ali

Personal Finance News Thursday 12/6

Phil's Personal Finance Tip of the Day:

Best days to buy what's on your wish list this holiday season

By Clark Howard

Now that Black Friday and Cyber Monday are over, it's still possible to get great deals if you just let the calendar be your guide.

Retailers typically do 40% or more of all their annual sales during the Christmas shopping selling season. But the deals they offer are concentrated heavily at two times -- early in the season and then much later on.

So don't fall for the ploy where you see stores promoting sales that are actually non-sales! In general, the deals won't pick back up again until mid-December.

To read the entire article from Clark Howard.com:
http://www.clarkhoward.com/news/clark-howard/shopping-retail/best-days-buy-whats-your-wish-list-holiday-season/nTGkd/

Inspirational Quotes@Inspire_Us from Twitter:

It always seems impossible until its done. -Nelson Mandela

Personal Finance News Wednesday 12/5

Phil's Personal Finance Tip of the Day:

Why You Shouldn't Dip Into Your 401(k)

by Dave Ramsey

Dave Says

Published December 04, 2012

FOXBusiness

Dear Dave,

Is it a good idea for a married couple in their early thirties, who have a lot of student loan debt, to cash out one of their 401(k)s to pay it off?

-Marcy

Dear Marcy,

No way! You never cash out a 401(k) or IRA to pay off debt, unless it’s to avoid a foreclosure or bankruptcy. Let’s say you take $50,000 out of your 401(k). Do you know what happens next? They’re going to charge you a 10% penalty, plus your tax rate. If you make $75,000 a year, that puts you in a 25% tax rate, plus the penalty. That’s a 35% hit, and that’s how much of your money is going straight down the toilet.

Look at it this way. You wouldn’t ask me if it’s okay to borrow money at a 35% interest rate to pay off your school loans, right? That would be ridiculous, and this is just as dumb.

There are no shortcuts when it comes to getting out of debt, Marcy. Roll up your sleeves and get on a beans and rice budget where every dollar has a name. This will enable you to save money and pay off that debt!

- Dave

Read more: http://www.foxbusiness.com/personal-finance/2012/12/04/why-shouldnt-dip-into-your-401k/#ixzz2ECgH0F2A

Inspirational Quotes@Inspire_Us from Twitter:

You cannot push anyone up the ladder unless he is willing to climb. - Andrew Carnegie

Personal Finance News Tuesday 12/4

Phil's Personal Finance Tip of the Day:

Feeling sad? Be careful with your money

By Blake Ellis | CNNMoney.com – Thu, Nov 29, 2012 3:02 PM EST

When you're sad, it's not just your waistline you need to watch. Unhappy people are also more likely to make foolish money decisions, new research shows.


Sad people will often forgo extra money further down the road in order to get less money right away, according to a study conducted by professors at Harvard, Columbia and University of California Riverside.


When offered smaller amounts of cash immediately versus bigger sums three months later, sad people accepted 13% to 34% less money today than their not-so-sad counterparts did -- just to avoid the wait.


"The idea is that when you're sad, you want to accelerate consumption -- it's all about getting money sooner," said Ye Li, co-author of the report and an assistant professor of management at University of California, Riverside.


The researchers conducted a series of experiments in which about 600 participants were assigned to a neutral, disgusted or sad condition. To induce sadness, participants were asked to view a three-minute clip from the movie, The Champ, where a boy watches his father and mentor die in front of him. Neutral participants watched underwater scenes of the Great Barrier Reef, while participants in the disgusted condition watched a clip from Trainspotting showing a man reaching into a filthy toilet.

To read the entire article from CNNMoney.com:
http://finance.yahoo.com/news/feeling-sad-careful-money-105000277.html

Inspirational Quotes@Inspire_Us from Twitter:
You either suffer the pain of discipline or the pain of regret. Pick a side.

Personal Finance News Monday 12/3

Phil's Personal Finance Tip of the Day:

How to Write the Perfect Resume

By Vivian Giang and Melissa Stanger | Business Insider – Fri, Nov 30, 2012 10:30 AM EST

Peplow says that "you must put some of the keywords from the job posting into your resume, or it will probably never be seen by human eyes."

This is because a lot of companies use online recruitment tools to sift through resumes, writes Lauren Weber in The Wall Street Journal.

Barbara Safani of CareerSolvers suggests using LinkedIn's skills section to find the keywords that would most likely be used in a company's search query database. To do this, click on the "More" tab in your LinkedIn profile and enter a type of skill or description into the search box. This will result in a list of related skills popping up, which you can use as keywords on your resume.

Only include relevant work experience.

Keep your resume focused and don't include every single job you've ever had.

Eve Tahmincioglu at MSNBC writes: "In this economy, there’s a good chance a long-term job seeker has a part-time job (or jobs) under his or her belt just to make ends meet. But that doesn’t mean you should include every burger flipping, or retail-selling job you’ve had. Putting too many of those jobs on your resume, especially if they have nothing to do with the job you want, can hurt your chances of landing a new position."

“Resumes are a summary of the most important data,” Debra Feldman, a job search expert, tells Tahmincioglu. “In my opinion, a part-time job just to pay the bills would not fall into that category."

Peplow tells us that even if you have minimal work experience, this doesn’t mean that you have nothing to offer. Highlight your transferable skills, which are the ones that you can use from one job to the next — regardless of the position.

To read the entire article from Vivian Giang and Melissa Stanger | Business Insider:http://finance.yahoo.com/news/how-to-write-the-perfect-resume-153024611.html?page=2

Inspirational Quotes@Inspire_Us from Twitter:
Decide that you want it more than you are afraid of it. -Bill Cosby

Personal Finance News Saturday 12/1

Phil's Personal Finance Tip of the Day:

Rewarding Employees Reaps Company Rewards

November 20, 2012 By Harvey Mackay

 

According to various surveys, seven out of eight people go home every night with a feeling that they work for an organization that doesn’t care about them. That equates to 130 million people in the United States who go home feeling somewhat used and abused, and with a sense that they don’t matter.

Enter Robert Chapman, CEO of Barry-Wehmiller, a leading provider of manufacturing technology, engineering and consulting solutions. He is a disciple of Truly Human Leadership, a leadership model that is all about people, purpose and performance. His vision is to send people home every night feeling fulfilled. Barry-Wehmiller has 7,000 team members through 58 acquisitions with $1.6 billion in sales.

Chapman is focused on allowing employees to discover, develop, share and be appreciated for their gifts. (You can find his blog at http://www.trulyhumanleadership.com/.) Employees are routinely solicited for their ideas.

In the company’s leadership model, it attempts to shine a light in every corner of its business and look for the goodness in people. To help, it has created several award programs. One award is the Guiding Principles of Leadership SSR Award. Chapman is a car nut and had a Chevrolet SSR truck that he offered to one of his plants. The winner gets to drive it for a week. The program worked and expanded, so the company now has 17 SSR trucks.

“Everybody is nominating people,” Chapman said. “In a plant of 450 people, we had 120 to 180 nominees.

Think of this: People took the time to talk about the goodness in other people.”

For every nominee, the company sends a letter to the employee’s home, saying, “Your husband/daughter/son/brother/mother was nominated for their goodness. And let me tell you what people said about them.” Then it’s a secret when the winner is picked. The family is invited to the ceremony as a surprise.

Chapman said he’s interviewed about 300 people who have won this award around the country. They tell him it’s so significant because it’s from their peers. Award winners are often asked about their SSR truck by friends, and they describe the leadership award they won. And every time people say, “I wish I worked for a company like that.”

To read the entire article from Harvey Mackay.com:
http://harveymackay.com/column/rewarding-employees-reaps-company-rewards/


Mackay’s Moral: People are judged by the company they keep. Companies are judged by the people they keep.