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Zero waste: our progress so far

July 30, 2013 By Liz Weston

Garbage dumpA few weeks ago I wrote about how the “zero waste” movement had inspired me to look for ways to cut back on the garbage our family generated. I’m not aiming to eliminate all the waste. I’m looking for ways to be a bit gentler on the planet while, hopefully, saving money and not adding inordinately to my workload. Turns out there are plenty of ways to do that.

Here’s what has happened so far:

The composter’s in place. I bought this beauty for $20 from the City of Los Angeles, and got a worm bin for an additional $5. (The worm bin is basically a plastic tote with a few holes drilled in the top.) Then I bought an attractive little bin to sit on my countertop for another $20. Nope, the little bin wasn’t at all necessary, but it’s easier to use than the large plastic peanut butter jar with a screw-top lid it replaced…and it looks a heck of a lot better sitting out in the open. My husband’s an artist, and he’s taught me to consider aesthetics at least occasionally.

The little bin holds about 12 cups of food scraps, vegetable peels and other kitchen waste, and I empty it into the composter at least every other day. That’s a lot of garbage being redirected to a better use.

This is also getting me to think more about ways to cut back on kitchen waste, particularly on food that’s not getting eaten. That’s meant more consistent meal planning and using up leftovers, which helps reduce our grocery bill.

The reusables are getting used. I bought a reusable plastic cup with lid and straw from Starbucks and keep it in the car along with a commuter mug. So far, all the places I’ve asked—Jamba Juice, coffee joints, even fast food restaurants—have been fine with letting me use my own cup instead of one of their disposable versions. This doesn’t save me any money (well, maybe 10 cents at Starbucks) but it doesn’t cause much inconvenience, either. Ditto for the reusable shopping bags, which now live (mostly) in the car rather than scattered throughout the house.

I’m giving props to my city. I had a vague idea that Los Angeles was recycling more stuff than in the past, but the list has gotten amazingly long—way longer than in many other communities I’ve read about. In addition to the usual suspects of glass, paper, aluminum and plastic, LA recycles:

  • Styrofoam containers
  • Wire and plastic hangers
  • Drink cartons (for juice, wine, milk, heavy cream…you name it)
  • Plastic bags (including grocery and dry-cleaning bags)
  • Aerosol cans (with the plastic tops removed)lastic toys
  • Plastic toys
  • All aluminum, tin, metal and bi-metal cans
  • Clean aluminum foil
  • Clean film plastic

I’m still looking for ways to reduce the volume of what we discard (more on that in a later post), but for right now I’m pleased that a lot more stuff can go into the blue recycling bin and a lot less into the black trash bin. Again, no big savings that I can see, but also no inconvenience encountered.

If you’ve found ways to reduce waste and save money, I’d love to hear about them!

 

Filed Under: Liz's Blog Tagged With: saving money, zero waste

Tuesday’s need-to-know money news

July 30, 2013 By Liz Weston

School Kids DiversitySaving on back-to-school shopping, tool to make managing your money easier, and what you need to do financially when your marriage comes to an end.

Be Smart on Back-to-School Shopping
How to fill their backpacks without emptying your wallet.

8 Money Tools You Should Try
8 tools to make managing your money much easier.

How To Reduce Your Debts Without Spending Unnecessarily
You shouldn’t have spend money to get out of debt.

Save Your Way to $1 Million Dollars
It might be easier than you think!

We’re Getting A Divorce, Now What?
Ways to protect yourself financially when your marriage comes to its end.

Filed Under: Liz's Blog Tagged With: back to school, back-to-school shopping, couples and money, debt reduction, Debts, Divorce, money tools, saving money

Survivor benefits: what you can expect

July 29, 2013 By Liz Weston

Dear Liz: Two years ago, I elected to start my Social Security benefits early, at age 62. My current benefit is $1,350 per month. My spouse, currently working, will be turning 62 next year and is also planning to take an early retirement benefit because of health issues. Her benefit is expected to be slightly more than my benefit at that time. If she dies before me, what can I expect to collect from Social Security as the spouse of someone who started benefits early?

Answer: If your wife dies before she begins receiving Social Security, your survivor’s benefit would be based on what’s known as her “primary insurance amount.” That’s the amount she would receive at full retirement age (which is 66 for those born between 1943 and 1954; after that, full retirement age increases gradually to age 67 for those born in 1960 or later).

Once she begins benefits, though, your survivor’s benefit is based on what she’s actually getting. So if she receives a reduced benefit, your survivor’s benefit is reduced as well. It would be further reduced if you, as a widower, begin taking survivor’s benefits before your own full retirement age.

You would not be able to get your own benefit plus a survivor’s benefit if your wife should die, by the way. You would get the larger of the two, but not both.

Filed Under: Q&A, Retirement Tagged With: Social Security Administration, Social Security benefits, survivors benefits

Are Roths safer than other IRAs?

July 29, 2013 By Liz Weston

Dear Liz: I found your recent discussion of Roth IRAs informative. But I’ve been told that one of the main advantages of a Roth vs. a traditional IRA is that a Roth is a safer investment when it comes to creditors trying to attack it. How can that be? Is one type of IRA safer than another?

Answer: The short answer is no.

Employer-sponsored retirement plans, including 401(k)s and 403(b)s, typically have unlimited protection from creditors in Bankruptcy Court. The exceptions: The IRS and former spouses can make claims on such plans.

Individual retirement accounts, including IRAs and Roth IRAs, lack the protection afforded by the Employee Retirement Income Security Act, or ERISA. But the bankruptcy reform law that went into effect in 2005 protects IRAs of all kinds up to a certain limit (which in April rose to $1,245,475).

Short of bankruptcy, the amount of your IRAs or Roth IRAs that creditors can access depends on state law.

If there’s any chance you’ll be filing for bankruptcy or the target of a creditor lawsuit, you should talk to an experienced bankruptcy attorney about your options.

Filed Under: Q&A, Retirement Tagged With: 401(k), Bankruptcy, Roth IRA

How much do you really need to retire?

July 29, 2013 By Liz Weston

Dear Liz: None of the Web-based tools I’ve seen really get at the heart of the problem of how much I really need in retirement. For example, if I am diligent and save 20% of my income (I earn over $150,000), why would I need to replace 95% or even 80% of my income to maintain my standard of living in retirement? If I subtract the 20% going to savings, another 10% for the costs of working (clothes, lunches, gas) and reduce my income tax 5%, shouldn’t I be living the same lifestyle at 65% of my current income? Now, if I have a pension that will replace 10% of my pay, and if Social Security benefits for my spouse and me replace 30%, don’t my investments have to produce only the remaining 25%? Or am I missing something?

Answer: The further you are from retirement, the harder it can be to predict how much you’ll need when you get there.

Financial planners often use an income replacement rate of 70% to 80% as a starting point. It’s just that, though. Planners will tell you some of their clients’ spending actually increases in the early years of retirement as they travel and indulge in other expensive hobbies. Those who are frugal or used to living well below their means are often able to retire comfortably with a much lower income replacement rate.

A big wild card is the cost of medical and nursing care in your later years. The U.S. Bureau of Labor Statistics’ Consumer Expenditure Survey shows average overall spending tends to drop after retirement and continues to decline as people age. Serious illness or a nursing home bill can cause spending to surge late in life, however, leading to a U-shaped spending pattern for many.

Taxes also are hard to predict. While most people drop into a lower tax bracket once they stop working, those with substantial retirement incomes and investments may not. Tax rates themselves could rise in the future, even if your income doesn’t.

Social Security benefits may change, as well. Although it’s highly unlikely the program will disappear, some proposals for changing Social Security reduce checks for higher earners.

Once you’re within a decade or so of retirement, you should have a better handle on what you’ll spend once you quit work. Before that point, err on the side of caution. Assuming a higher income replacement rate gives you wiggle room once you’ve retired — or the option to retire earlier if it turns out you need less.

Filed Under: Q&A, Retirement Tagged With: income replacement, Retirement, retirement spending, spending in retirement

Monday’s need-to-know money news

July 29, 2013 By Liz Weston

Education savingsHow to avoid credit card rejection, getting your kids and their money ready college, and how to keep identity thieves out of your mail.

How Not to Get Rejected For a Credit Card
Tips on how to avoid the pain of rejection.

How to Keep Telemarketers at Bay

Ways to finally stop those annoying phone calls.

Four Money Conversations Parents Need to Have with Freshmen

Preparing your kids for their first real taste of freedom.

Junk Mail Poses Identity Theft Risks
Think twice before tossing away that solicitation.

5 Reasons You’re Earning More Money and You’re Still Miserable
Discover the science behind money and emotions.

Filed Under: Liz's Blog Tagged With: behavioral economics, Credit Cards, Identity Theft, kids and money

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