On September 23, Dr. Barbara O’Neill will present Financial Planning for the Second Half of Life. More than a webinar about retirement planning, this 90-minute session will focus on:
Common financial errors of older adults
Statistics about older adult finances
Common later life financial characteristics and required decisions
15 key later life financial planning topics (e.g., creating a retirement “paycheck,” required minimum distributions, untitled property transfers, and leaving a legacy)
Personal finance resources for older adults and financial practitioners
This webinar will allow participants to engage in an interactive discussion of the realities of retirement finances, including selecting and paying for health care benefits, managing asset withdrawals, and creating workable retirement planning strategies for older adult clients.
This webinar is approved for 1.5 CEUs for AFC-credentialed participants. To join, review the slides and for more information about the speaker, click here.
For financial professionals working with clients in the field, economic research may seem abstract and non-applicable to their daily practice. Our August 12 webinar, Cliffs Notes from the Journal of Financial Planning & Counseling will highlight some of the more relevant articles from the journal and discuss the practical implications and impacts of the research.
Indeed, measuring outcomes is a significant way we all benefit from academic economic research. The evaluation of the outcomes of projects, programs, and initiatives encourages the improvement of programs to better reach and connect with their audiences. Thus, financial professionals have better access to programs to continue their own education, and a richer well of knowledge to share with clients.
Of course, financial professionals benefit from consuming research as well. By reading journals, financial professionals stay on top of current practices, trends, and can help develop programs that meet the needs of their clients by incorporating empirical evidence.
By Katie StamperProject Manager, Child and Family Learning Network
Health and finances: two things that keep people up at night. Do I have enough money saved? Am I ready for retirement? How do I control my blood pressure? These worry-filled questions leave you wanting answers but where do you turn for credible answers and information? Worry no more! Dr. Barbara O’Neill from Rutgers University will explain the Small Steps to Health and Wealth™ initiative during a webinar on July 29, 2014 10 a.m. CT, and discuss 25 behavior changes that can improve an individual’s health and finances.
SSHW was developed because societal problems have been widely reported in recent years including an increasing incidence of diabetes, overweight, and obesity, low household savings, high household debt levels, and bankruptcy filings. The SSHW program includes 25 behavior change strategies that people can adopt to address these concerns. Each involves taking small positive steps that people can put into practice on a daily basis.
A family vacation is an annual tradition for many families but for those on a tight budget, it may be an unnecessary expense. Here, I’ve collected many of the the discounts available to military families that can help make a fun-filled getaway more attainable.
Like any big purchase, a vacation requires planning. Many vacationers are shocked when they receive their credit card bill after returning from a vacation; the time to create a spending plan is before you leave, not after you return. Creating a budget creates parameters that guide vacation plans. Knowing how much you can realistically afford to spend and how much you have yet to save creates the timeline for your trip as well. Using a goal-setting spending worksheet may be helpful. Professional financial planners can help families by suggesting to clients with wanderlust that perhaps the big family vacation to Disney World can be a goal for next year, and while saving up, the family might enjoy a shorter trip closer to home this summer. Some considerations for determining cost are listed below.
Train, plane or automobile? While packing the family into the minivan and setting out on a road trip might seem like the most economic choice, the cost of gas and car maintenance must be factored in to the budget. The AAA Fuel Cost Calculator and the Fly or Drive Calculator take into consideration the make and model of a vehicle as well the distance and any overnight trips that might bump up the cost of a road trip.
Finding last minute airfare deals can be a great way to save on air travel, but booking well in advance can reap better prices, too. Additionally, it may be difficult for families to to take the risk of finding a cheap deal at the last minute, especially if traveling within a specific date range for an event or due to a work schedule. If flexibility is an option, military families may want to look at flying “Space-A” on military flights. During mission assignment flights, empty seats are offered up as available to eligible travelers, and these tickets can be at a very-low or no cost to passengers. Of course, destinations are limited to military terminals and registration is required in advance, but the possibility of flying across the globe for free makes this option one worth looking at more closely.
Traveling by train is often the cheapest option. Amtrak schedules offers train trips at convenient times and to destinations throughout the United States, and military Service Members receive a 10% discount off fares. If travel destinations fit within a train route, consider this option, but also consider the added cost of a rental car if one will be required at the final destination.
Websites like Groupon and LivingSocial often post deals for hotels in tourist destinations, and clubs like AAA offer discounts at many hotel chains, but military families may want to consider the option of using military lodging facilities to save on lodging expenses. Like “Space-A” travel these accommodations are only open to eligible vacationers as space is available, and advance reservations may or not be possible. These options range from accommodations on military installations to top-notch resorts and hotels with special space and pricing reserved for military members. Military OneSource suggests planning these trips well in advance and calling their offices to speak with a consultant at 800-342-9647.
Food costs eat up a lot of the vacation budget. Staying in a hotel with a kitchen or refrigerator can help cut down on expenses by keeping restaurant costs at a minimum. Tourist guidebooks often offer coupons for many area restaurants, but be aware that restaurants in tourist areas are generally more expensive. It helps to plan ahead; by researching area restaurants you can plan in advance for a special dinner out while saving on dining expenses the rest of the week. Hotels that include a free breakfast each morning can also be a great deal. Sharing entrees and cutting back on alcohol are also good tips to reduce the bill. Of course, many restaurants offer military discounts, so it never hurts to ask!
Thinking about the fun things you’ll do on vacation is the best part of vacation planning. Think about who will go on this trip: young children? Teenagers? Elderly relatives? Try to match activities with what makes the most sense for your group. Finding deals in advance online can be a huge help. Sign up to receive daily emails from coupon sites, like Groupon, in your vacation destination city during your planning to see what deals are out there. Also, consider the “free” activities available in your vacation destination, like public parks, beaches, street fairs, and festivals.
After taking into consideration all the costs associated with traveling, it’s likely that this summer is a good time to begin planning a family vacation for next summer. But that doesn’t mean this summer can’t be full of family fun. “Staycations,” camping, and visiting and staying with relatives can be great, fun, and inexpensive ways to spend time together and save money. Here are some additional ideas about saving money on family trips.
Share your own vacationing on the cheap ideas in the comments section below!
Dr. Barbara O’Neill will be presenting a 90-minute webinar on the national Cooperative Extension program, Small Steps to Health and Wealth on behalf of the Military Families Learning Network’s Personal Finance team and the Child and Family Learning Network on July 29 at 11 a.m. ET.
The Small Steps to Health and Wealth initiative encourages participants to make positive behavior changes to simultaneously improve their health and personal finances. Developed by Dr. Barbara O’Neill and Dr. Karen Ensle at Rutgers University, Small Steps to Health and Wealth encourages participants to make positive behavior changes to simultaneously improve their health and personal finances. It is believed to be the first long-term program ever developed to motivate Americans to simultaneously apply the same personal behavior change strategies to both areas of their lives. SSHW was developed because many Americans have both health and financial “issues.” Societal problems that have been widely reported in recent years include an increasing incidence of diabetes, overweight, and obesity, low household savings, high household debt levels, and bankruptcy filings. The SSHW program includes 25 behavior change strategies that people can adopt to address these concerns. Each involves taking small positive steps that people can put into practice on a daily basis.
This webinar will begin by describing relationships between people’s health and personal finances. It will then describe each one of the 25 behavior change strategies and how people can apply them to their lives.
AFC-credentialed participants can earn 1.5 CEUs by participating in this webinar. For more information, click here.
In today’s webinar, 20 Steps to 7 Figures, our audience was on fire! You offered up book recommendations, investment tips, advice for avoiding risk, and shared personal experience about protecting and growing investments. What a great learning opportunity for all of us!
I was able to capture just some of the suggestions our participants made. Here are the book suggestions shared in today’s webinar:
Millionaire Next Door – Dr. Thomas Stanley
Who’s Afraid to be a Millionaire : Mastering Financial and Emotional Success– Kelvin Boston
Warren Buffet Invests Like a Girl – Louann Lofton
Think and Grow Rich – Napoleon Hill
Business at the Speed of Thought – Bill Gates
Getting Loaded: 50 Start Now Strategies for Making Million While You’re Still Young Enough to Enjoy It – Peter Bielagus
Die Broke: A Radical Four-Part Financial Plan – Stephen Pollan & Mark Levine
Stop Acting Rich and Start Living Like a Real Millionaire – Dr. Thomas Stanley
Rich Dad Poor Dad – Robert T. Kiyosaki
But the investment advice shared was even more prolific! If you want to foster engagement in a chat box, just ask financial educators about investment tips. Here’s what they shared:
Teach your children how to save
Line goals to work toward
Consider being more aggressive while young, conservative when older
Start early, start small
Buy, buy, buy
Start now with the TSP
Pay yourself first
The sure way to fail is to never try
Don’t invest unless you understand what you’re getting into
Invest any amount as soon as possible
Be educated, ask questions
Take advantage of Roth options, TSP expense ratio, use lifecycle funds if don’t have the time or knowledge
Lifecycle funds in TSP
Save and invest change
Don’t look at it everyday!
Pay tax now rather than later
Be aware that even pre-tax 401(k) and 403(b) are subject to Social Security and Medicare tax withholding – but not income tax
Review Roth 401(k) options
Claim all of your exemptions and save the difference
Maintain good records and substantiate deductions
Claim the correct amount of exemptions for your family and invest the rest
Optimize income tax withholding exemptions and save/invest the monthly difference
Maximize contributions to Roth accounts instead of kicking the tax can down the road
Keep all receipts if you pay local taxes – will usually be more than the calculated amount figured by tax software
Don’t pull 401(k) out
Manage exemptions to avoid large refunds
Don’t plan for the big refund – ID theft
Adjust exemptions to breakeven on tax liability and invest tax savings
See if your state has reduced taxes or no taxes for military
Try to avoid paying for tax prep
If purchasing individual stocks, only buy if you think you can hold for 366 days or longer
For military, switch to Roth when in combat zone to enjoy tax free growth on tax exempt dollars
Military are only taxed on “base pay” so they are in a very favorable tax situation and may want to put extra emphasis on the Roth side, especially if deployed
Don’t take IRA early, most don’t know about tax penalty
Think I missed some? Please share your own advice and recommendations in the comments section. Want to be a part of these great exchanges? Join us for 3 days of online learning June 3-5 during the Virtual Learning Event.
While there are many factors to be considered by anyone who is considering purchasing a vehicle, there are some special considerations that need to be made for service members. The bottom line is that a vehicle is a major investment, and military members and their families need to be armed with the right information before jumping into purchasing a vehicle.
First, you need to know how much car you can afford. Remember that when you purchase a vehicle, you need to calculate not only the cost of the vehicle, but also the cost of gas, registration, insurance, and maintenance. In addition, be sure not to negotiate based on the monthly payment. You want to get the best price possible on your new car, and if you negotiate based on how much you can afford to pay monthly, the dealer may just extend the terms of your learn, effectively lowering the monthly payment, but costing you a lot more in the long run.
When shopping for a vehicle, military personal should be keenly aware of any gimmicks that may be geared toward them. Examples may include “special financing” with no or low credit (which will end up costing a lot more than necessary), praising military service to lower resistance to a sales pitch, and attempting to sell the individual more car than they can afford because they have “earned it.”
Generally speaking, most people take out a loan to purchase a vehicle. A huge factor affecting financing will be your credit score, so it is important to pull your credit report and see if there are any areas that may be negatively affecting your score. If you have little or poor credit, it is better to buy a less expensive, used car as a temporary solution instead of getting locked in to a high interest loan. This will give you time to improve your credit, save some money, and be able to purchase the car that you really want without paying way too much for it.
There are several factors involved in negotiating a good deal on a vehicle. First, shop for financing in advance and know what you can afford. Check with a local credit union or lender that specializes in military car buying and then compare the offers you receive with the offers the dealership puts forward. Next, do your research and compare prices in advance. Know what kind of car you want, how much it has been selling for in your area, and how much you are willing to pay for it. You can use websites such as www.kbb.com and www.edmunds.com to do your price shopping. Lastly, for the reasons that were mentioned earlier, do NOT negotiate based on monthly payment. In fact, do not even tell the salesperson how much you want to pay monthly.
Once you have driven the vehicle, negotiated a good deal, and secured financing, you are good to go, right? Wrong. Take a few hours or a night to make sure that this is what you really want to do. Too often, people get swept up in the excitement of purchasing a new car and end up in a situation that is damaging to them financially. Taking a step back and reviewing the decision you are making can only help you.
Military members have several additional issues that need to be considered when purchasing a vehicle. First, many military car-buyers are young, first time buyers with little experience managing finances or making big financial decisions. Remember that just because you have money doesn’t mean it needs to be spent on a car. Second, deployment can cause added financial stress and unique issues that can be difficult to resolve. Remember that being deployed does not mean that you do not have to make a car payment. It is important to designate someone to take care of these financial issues for you while you are away. Lastly, The Consumer Financial Protection Bureau recently opened the Office of Servicemembers Affairs (OSA). The OSA is an important tool to help you stay informed about your financial rights and to protect you from abusive practices.
The Personal Finance team will host a 3-day interactive virtual conference June 3-5 on Money Behavior: How People Make Financial Decisions. The event will include three 2-hour webinars and one 90-minute panel discussion. AFC-credentialed participants of the entire event will be eligible to earn 7.5 free CEUs. However, that’s not the only reason to save the dates of this exciting learning opportunity.
The speakers we have selected for this 3-day session will focus on the psychology of finance and the process behind the decisions we make that impact our financial actions. The schedule includes:
Permanent changes of station (PCS) make moves frequent for military families. The complexity of buying and selling a home is compounded by deployments, one-earner incomes, and the slow-to-rebound housing market. In fact, the 2012 FINRA Military Capability Study found 38% of military families have mortgages that are underwater. So how do military families ease the burden of buying and selling a home? Fortunately, many programs are in place to assist service members and their families with this process.
The Service Member’s Civil Relief Act protects active duty service members and their families from foreclosure, termination of leases, and eviction. In the event a service member has been a victim of a wrongful foreclosure that violates the terms of the Service Member’s Civil Relief Act, they should take legal action.
On April 15, Dr. Barbara O’Neill and Personal Finance Manager Barbara Lang will present Military Home Buying & Selling, a 90-minute webinar that will discuss these and many other home buying and selling options available to service members. This session will be worth 1.5 CEUs for AFC-credentialed participants.
To join this session, click here. Here, you’ll also find supporting resources, the PowerPoint Slides, information about the speakers, and connection information.
The next Personal Finance webinar will be held Thursday, March 20 at 11 a.m. ET. Dr. Barbara O’Neill will present Common Consumer Frauds & How to Avoid Them. This 90-minute session is worth 1.5 CEUs for AFC-credentialed participants. For more information about the CEU process, click here.
Several groups of Americans are particularly susceptible to fraudulent practices including older adults and young enlisted service members. In addition, some frauds, such as hacked data bases, are beyond an individuals’ ability to control. Thus, everyone needs to know about common consumer frauds and how to reduce the risk of becoming a fraud victim. This 90-minute webinar will focus on three common types of consumer frauds: identity theft, investment fraud, and income tax refund fraud. It includes a description of fraud risk factors, a personalized identity theft risk assessment quiz, resources for personal and/or professional use, research findings about identity theft risk reduction practices, and a discussion of how to adjust income tax withholding to have a low or no refund for potential tax identity thieves to steal.
To join this webinar, simply go to https://learn.extension.org/events/1500 a few minutes before 11 a.m. ET on March 20 and click on the location link. Enter the room as a guest. If you have not joined one of our webinars in the past or if you will not be joining from a military installation, you may need to install security certificates. Instructions are available here.
The slides and other resources for this webinar will be available here. We hope to see you online on March 20!