Friday’s need-to-know money news

HealthCare-Medical-Identity-TheftToday’s top story: What to do if you’re an Anthem insurance customer. Also in the news: TurboTax stops state filings, how your own personal lottery can add up to big savings, and how your pet can fetch a tax deduction.

Millions of Anthem Customers Exposed: What It Means for You
Find out what you should do if you’re an Anthem customer.

TurboTax halts state filings amid fraud outbreak
What this means for TurboTax customers.

Pay Your Own Personal “Lottery” to Save Money Regularly
Then ten dollar a day habit that could add up to big bucks.

How Your Pet Can Dig Up a Tax Deduction
A deduction, not a dependent.

4 frequent flier mile pro tips that anyone can use
Getting the most from your miles.

Thursday’s need-to-know money news

downloadToday’s top story: There’s been a massive data beach at Anthem Insurance. Also in the news: Personal finance questions that should be answered before you say “I do”. learning your investment vocabulary, and assumptions that could hurt your retirement plans.

Massive breach at health care company Anthem Inc.
As many as 80 million customers have had their personal information stolen.

Personal Finance Questions Before Marriage
Questions to ask before walking down the aisle.

The Many Different Types of Investments, and How They Work
Learning the investment vocabulary.

4 Dangerous Assumptions That Could Hurt Your Retirement Plan
You know what they say about assuming…

7 Home-Selling Mistakes to Avoid
Keeping your sale trouble-free.

Wednesday’s need-to-know money news

smartphones_financeToday’s top story: Americans and their 401(k) savings. Also in then news: How to make taxes easier with your smartphone, what you should know about long-term care insurance, and what to do if your teen is destined for bad credit.

Good News and Bad News for Americans’ 401(k) Savings
Get your hand out of the cookie jar.

Want to Make Taxes Easier? There’s an App for That
Apps that can help you track your receipts all year long.

What you need to know about long-term care insurance
Protecting you and your family.

4 warning signs your teen is destined for bad credit
How to get them back on the right path.

6 Things You’re Spending Too Much Money On
Finding cheaper alternatives.

Tuesday’s need-to-know money news

HopeToday’s top story: When it’s time to look for a new bank. Also in the news: Personal finance questions you need to answer, how to upgrade your financial life, and ten ways to have a financially happy marriage.

6 Signs It May Be Time to Switch Banks
Time for a new relationship?

8 Personal Finance Questions Most of Us Flunk
How did you do?

10 Steps to an Upgraded Financial Life
Give yourself a boost.

10 Ways to Have a Financially Happy Marriage
There are better things to argue about.

Monday’s need-to-know money news

Household-Budget1Today’s top story: Why treating your household like a business could help your budget. Also in the news: The money moves you need to make right now, why it’s going to get tougher to get a student loan, and how to take advantage of the home office deduction.

How to Manage Your Household Budget Like a Business
Thinking of your home as a business can help keep your budget on track.

The Money Moves to Stop Procrastinating and Take Care of Now
No more excuses.

The Student Loan Rule Change That Could Hurt Parents With Bad Credit
Getting a student loan just became more difficult.

Tax Season: Demystifying the Home Office Deduction
Making sure your home office is legitimate.

Nationwide ad meant to be jarring
The insurance company defends depressing Super Bowl ad.

Q&A: Giving financial advice to family

Dear Liz: I am 30 and have two sisters, ages 31 and 27. My wife and I both have good jobs that allow us to live comfortably and save for retirement. My sisters, on the other hand, have severe money problems. My older sister works a low-paying retail job. She is unable to save and is currently at risk of having her wages and tax refunds garnished because of unpaid student loans. My mom provides her with support when she asks for it. The other sister still lives at home. While she makes decent money by working two jobs, she spends all of her money on “wants,” and my mom pays all of her living expenses. The only bill my younger sister pays is her car payment. She also currently has close to $100,000 in student loans that she just had to start paying on.

I have tried to provide both my sisters with budgeting advice, and I have recommended books that I have used as the blueprint for our budget. Neither of them takes the advice. I have talked to my mom about both sisters’ situations. While my mom agrees that both are in bad shape, she is unwilling to show either of them the tough love that they need to improve their situations. Do you have any advice on recommendations that I could make to help any of them out?

Answer: The best advice is to stop offering advice.

Your mom and sisters have made it quite clear they’re not interested in what you have to say. Continuing to offer your opinions on their situations would be tiresome and pointless.
Yes, it’s hard to watch people struggle when you think you know what could help them. But keep in mind that: a) you might be wrong about what they need right now, and b) nobody asked you, anyway.

If you’re passionate about teaching people to manage their finances, you might look into becoming a certified financial planner or other planning professional. The CFP Board of Standards has information at http://www.cfp.net. If people are paying you for your advice, they’re somewhat more likely to listen to it.

Otherwise, you’ll have a captive audience for your financial teaching if you and your wife should have children. And as a parent, you’ll get to experience firsthand how it feels to be the target of unsolicited advice.

Q&A: Financial aid and divorce

Dear Liz: My ex-wife and I are about to start the financial aid process for our eldest child, who goes to college in the fall. My ex happens to have a higher income than me, and has asked me if I’d be willing to have different aid scenarios calculated based on our different incomes and assets. From all the research I’ve done, though, it seems she is the one who needs to file the Free Application for Federal Student Aid, since she’s the custodial parent. It’s not possible to choose who the custodial parent is for the purposes of financial aid, right?

Answer: It may be possible, but you have to make the choice well before you file the FAFSA form.

For federal financial aid purposes, the custodial parent whose information is used to calculate financial need is the parent with whom the child lived the most during the 12 months before the FAFSA is filed. With joint custody, the custodial parent is typically the one who provided the most cash support.

Some divorced parents opt to revise their children’s living arrangements so that the lower earner becomes the custodial parent. That may require a trip to court to revise a custody agreement. Also, the financial situation of any stepparents would have to be part of the equation, since the income and assets of the custodial parent’s spouse (the stepparent) are factored into the federal formula.

Q&A: Brokerage follow-up

Dear Liz: You recently explained the insurance limits for brokerage accounts covered by the Securities Investor Protection Corp. I recently retired from the brokerage industry and wanted to add that many firms have additional insurance coverage beyond the SIPC limits.

Answer: Good point. Brokerages often purchase additional coverage from private insurers on top of what’s provided by the SIPC. To find out how much coverage may be available, ask your brokerage or conduct a search with the brokerage name and “how are my accounts protected” as a search phrase.

Friday’s need-to-know money news

Zemanta Related Posts ThumbnailToday’s top story: Credit report red flags that only your lender can see. Also in the news: What to do when you receive a windfall, how financial literacy can help fight domestic violence, and important tax info for freelancers.

4 Credit Report Red Flags You Don’t See – But Your Lender Does
Secret warning signs only your lender can see.

3 Things to Do When a Bunch of Money Falls in Your Lap
Think twice before buying the sports car.

How Financial Literacy Can Fight Domestic Violence
Knowledge is power.

25 Financial Terms Everyone Should Know
There may be a quiz!

Important Tax Basics for Freelancers
Sorting through the confusion.

January tune-up: Your paperwork

iStock_000015900242LargeIs anyone else drowning in paperwork? I try to “prevent, prune and process,” but paper has a way of multiplying on its own.

Here’s my game plan for reducing paper clutter:

Prevent. I’ve signed up for the Direct Marketing Association’s opt out list to reduce junk mail and I use Catalog Choice to cut down on catalogs. Unfortunately, some retailers ignore these requests, so I keep a recycling bin handy. Unwanted mail goes straight to the bin so it can’t make its way any farther into our house.

Another way to prevent paper from proliferating is to sign up for electronic delivery. You can download statements or, in many cases, just let the financial institution store those for you. (Check to find out how long they do so; seven years should be as long as you’d need most statements.*) Every time I handle a piece of paper this week, I’ll be checking to see if there’s a way to receive it electronically instead.

One caveat: Going electronic doesn’t mean ignoring your accounts. I regularly check the balances and transactions of all our accounts. An account aggregator such as Mint can be a big help with this process. If receiving a paper statement is the only way you’ll remember to check your accounts, then use the scan-and-shred method as follows:

Prune. Most of our remaining paperwork can be scanned into my computer and then shredded. The IRS accepts electronic documents so there’s typically no reason to hang on to the paper version. The exceptions are paperwork that would be a pain to replace: birth, marriage and death certificates, military discharge papers and so on. Two tools that really help: my ScanSnap scanner and a heavy-duty shredded that can handle up to 15 sheets at a time.

Process. This tends to be my Achilles heel. I can think of so many better things to do than deal with that pile of paperwork on my desk. I’ve tried weekly process sessions but am coming around to the idea that it’s better not to let it pile up even that long.

*You’re likely to get different answers from different providers, which is why you need to ask. Banks and brokerages typically keep statements for 7 years (Schwab keeps them for 10) but may limit free online access to just a few years. Credit card companies are all over the map on this one. For instance, Capital One has access for four years (although you can order older statements) while Amex keeps them available for seven.

While cars no longer require traditional tune-ups, your finances still do. This month I’ll be reviewing some areas of your money that deserve some extra scrutiny and offering suggestions for the best moves now. Stay tuned for more posts–and to make sure you don’t miss any, you can sign up for my newsletter using the link on my home page.