Category: Brandpoint Business & Finance

2019-10-22T08:01:00

(BPT) – By Carrie Schwab-Pomerantz

Did you know that 78 percent of people with a financial plan pay their bills on time vs. only 38 percent of people who don’t have a plan? Or that 68 percent of planners have an emergency fund while only 26 percent of non-planners are prepared to cover an unexpected cost? Stats like these from the 2019 Schwab Modern Wealth survey reinforce my belief that everyone — no matter their financial situation — can benefit from a financial plan.

So why aren’t more people planners? Often it’s because either they don’t think they have enough money or they think a financial plan costs too much. But neither is the case. In fact, you can map out your own financial plan, and it won’t cost you a penny. Here’s how to get started with a DIY plan.

1. Write down your goals — Start by asking yourself what you want your money to accomplish. What are your short-term needs? What do you want to accomplish in the next 5 to 10 years? What are you saving for long term? Get specific and write everything down.
2. Create a net worth statement — Achieving your goals requires understanding where you stand today. So start by listing your assets — bank and investment accounts, real estate and valuable personal property. Now list all your debts: mortgage, credit cards, student loans — everything. Subtract your liabilities from your assets and you have your net worth. If you’re in the plus, great. If you’re in the minus, that’s not uncommon, but it points out that you have some work to do. Use this number as a benchmark to measure your progress.
3. Review your cash flow — Cash flow simply means money in (your income) and money out (your expenses). How much money do you earn each month? Be sure to include all sources of income. Now look at your expenses, including any that may only come up once or twice a year.
4. Zero in on your budget — Your cash-flow analysis will let you know how much you’re spending. Focusing on your budget will let you know where that money is going. Write down your essential expenses such as mortgage, insurance, food, transportation, utilities and loan payments. Don’t forget periodic payments and be sure to include savings. Then write down nonessentials — restaurants, entertainment, even clothes.
5. Focus on debt management — Debt can derail you, but not all debt is bad. It’s high-interest consumer debt like credit cards that you want to avoid. Try to follow the 28/36 guideline that no more than 28 percent of pre-tax income goes toward home debt, no more than 36 percent toward all debt. Look at each item to decide when and how you’ll pay it down.
6. Get your retirement savings on track — Whatever your age, retirement saving needs to be part of your financial plan. Calculate how much you will need to comfortably retire and contribute to a 401(k) or other employer-sponsored plan or an IRA. The earlier you start, the less you’ll have to save each year.
7. Check in with your portfolio — If you’re an investor, understand that market ups and downs can impact the relative percentage of stocks and bonds you own — even when you do nothing. So review and rebalance on at least an annual basis. (And if you’re not an investor, think carefully about becoming one — the sooner the better.)
8. Review your insurance — Insurance is an important part of protecting your finances. Health insurance is a given, and most of us also need car and homeowner’s or renter’s insurance. While you’re working, disability insurance is a smart move. Finally, you should consider life insurance, especially if you have dependents.
9. Know your income tax situation — The Tax Cuts and Jobs Act of 2017 changed several deductions, credits and tax rates beginning in 2018. To make sure you’re prepared, review your withholding and estimated taxes, and explore potential tax credits.
10. Create or update your estate plan — At a minimum, have a will to name a guardian for minor children. Check that beneficiaries are up to date on all retirement accounts and insurance policies. Complete an advance healthcare directive and assign powers of attorney for both finances and healthcare.

To me, a financial plan can be especially important if you don’t have a lot of money because it can help you get on the path to greater financial strength. Think of it like a roadmap. Whether you need to reduce spending and debt, up your savings, or just refine the details, once you have a plan you’ll be on the road to success.

Have a personal finance question? Email askcarrie@schwab.com. Carrie cannot respond to questions directly, but your topic may be considered for a future article. For Schwab account questions and general inquiries, contact Schwab. For more information visit SchwabMoneyWise.com.

Compliance #: 1019-96JZ

2019-10-21T07:01:00

(BPT) – Credit card rewards programs offer great perks, like cash back, gift cards and points you can redeem for travel and purchases. But it’s easy to overspend, since the more you buy, the more rewards you expect to earn. The key is to be strategic — use the card no more than you normally would, and find just the right card with rewards to suit your interests — and that benefit you without increasing your spending.

2019-10-17T08:01:00

(BPT) – What were the greatest projects from the last 50 years? The World Wide Web? The moon landing? As 2019 marks the 50th anniversary of the Project Management Institute, PMI is celebrating by showcasing the 50 most influential projects of the past 50 years in science, technology, social, cultural movements and more.

What do these projects have in common? By definition, they were groundbreaking. From a project management standpoint, they all required spectacular feats of organization, collaboration, adaptation — and shared vision.

President and CEO of PMI Sunil Prashara explains, “Bringing ideas into the world takes effort, planning, discipline. It takes creativity and resilience, adaptability and perseverance. It takes vision, hard choices, commitment and sacrifice.”

Here are some ways a few influential projects from the last half-century demonstrate how project management helped turn ideas into reality.

Organization

It took over a decade of planning for 12 countries to switch to a single new currency — the Euro. Prior to launch, banks had 80% of notes and 90% of coins in hand. Over half of cash payments and 99% of ATMs converted to euros within five days.

Antti Heinonen, director of bank notes for the European Central Bank, was lead project manager. “The launch has been described as the greatest exercise in logistics that Europe has known in peacetime,” said Heinonen. “A smooth cash changeover could only be achieved in a short period of time by systematic and coordinated interaction on the part of all leading actors.”

Collaboration

How do complex scientific breakthroughs happen, even when the technology to complete a project hasn’t been invented yet? Ask the team on The Human Genome Project, which spanned 20 research centers in six countries over 13 years. The project’s leaders identified each gene and measured its distance from other genes on the chromosome first, leaving sequencing for later — betting that technology would advance to enable the final step (it did). Project leaders managed input from hundreds of stakeholders, including scientists and advisory councils, with support from 17 universities and lab sequencing centers.

Two years ahead of schedule and $300 million under budget, the researchers succeeded in sequencing and mapping all the genes (together known as the genome) that make up homo sapiens. The impact of this undertaking is vast and ongoing, ranging from revolutionizing disease treatment to using DNA in forensics.

Adaptation

As project managers discover, things can go wrong at any time. The key is adapting to and learning from setbacks. In the lead-up to Apollo 11’s 1969 launch, there were three astronaut fatalities during the 1967 Apollo I accident. Adaptation to fast-moving circumstances was a matter of life and death when sending a crew to the moon. A problem-solving matrix was developed to troubleshoot any possible scenario. Technical innovations deriving from Apollo 11 are wide-ranging, from cellphone cameras and laptops to CT scans and satellite TV.

“It may be that the most lasting legacy of Apollo was human …” said NASA chief historian Roger D. Launius, “… an improved understanding of how to plan, coordinate and monitor the myriad technical activities that were the building blocks of Apollo.”

Vision

In 2007, Panama shared a vision for updating their century-old canal to meet modern shipping demands. The mammoth project required five years of study and a national referendum before the Panama Canal Authority could begin making progress. To execute successfully, the Panama Canal Authority created a project management office (PMO), putting over 50 employees through training to earn Project Management Professional (PMP) certification. That training paid off. By 2016, the expansion debuted, boosting international trade and uniting Panama in its singular goal.

The capacity to turn vision into reality reveals the power of project management to shape the future. As Prashara describes, “Taken together, this universe of accomplishments exemplifies how the fabric of our world has been shaped, and continues to be shaped, by the hard work of bringing ideas to life. It underscores the rising importance of projects in our future, and how excellence in project execution will be critical in meeting the challenges and opportunities of tomorrow.”

To explore the most influential projects of the past 50 years, visit PMI.org/most-influential-projects.

2019-10-15T08:01:00

Making a difference with your dollars or giving your time can feel great, and it can also be effortless. Find a way to make a difference that works for you — and then go for it! Even small actions can make a huge impact to your community.

2019-10-15T07:01:00

(BPT) – The holiday season is full of celebration, social activities and spreading good cheer by exchanging gifts. The problem is gift giving can get expensive if you’re not making a plan and monitoring your spending. A happy holiday doesn’t have to mean stressing about finances or going into debt. You can enjoy the holidays and save money with some smart strategies for gift giving on a budget.

Create a gift list: Are you feeling pressure to get gifts for everyone? Thoughtfully consider who’s on your list this year. While a gift may be appropriate for some people, others might simply prefer to spend some time together rather than exchanging gifts. Perhaps invite someone over for lunch or plan a cookie exchange with friends.

Make a budget early: Deciding on budget limits for your holiday gifts will help guide your spending. You might have an overall holiday budget and then a specific budget to target for each person on your list. Then, with your gift list in hand and budget in mind, you can shop for appropriate and affordable gifts. What’s more, by starting early, you can take advantage of sales and other promotions that can help you save even more.

Stop worrying about perfect presents: Worried about finding the ideal gift? Coinstar’s recent holiday survey found about one-third of people don’t recall what gift they received last year, so stop feeling pressure to get the perfect present. Ultimately, it’s the thought that counts. Whether it’s a card or small, reasonably priced gift, the recipient will be glad you took the time to show you care.

Use change to stretch your budget: You probably don’t think much about coins, but the holiday survey found that people believe they have about $71 in spare change in and around their home! Collect and cash in that spare change at a supermarket Coinstar kiosk to boost your holiday budget. This can also be a fun activity for kids who can gather coins or dip into the family coin jar for spending money and then buy gifts for family members. Visit www.coinstar.com/findakiosk to find a location near you.

Create a group gift exchange: If you have a large, extended family or a group of friends that you typically buy for, consider a gift exchange. It’s fun and budget-friendly because you’re not buying a separate gift for each person. Smart tip: Set a price limit per gift to keep everyone in the same ballpark for presents and prevent any competition of one person outdoing another.

Opt for services as gifts: Rather than giving a physical present, is there something you could do that the recipient would appreciate? Consider an act of kindness like cleaning a family member’s home or watching their children. If you have a particular talent, consider how that can be incorporated into your gift. Know how to play the piano? Offer to give children lessons. Do you have a snowblower? Offer to help clear a neighbor’s driveway after a snowstorm.

Consider charitable donations: Giving to charity on behalf of someone else can be a nice holiday gesture. Whether it’s animal welfare, disaster relief, a children’s charity or something else, think about what the person is passionate about and select an appropriate charity.

The Coinstar holiday survey revealed that if there were no obligations or expectations around gift giving, about 10% of people would give to charity. Keep in mind, Coinstar kiosks in supermarkets allow you to donate your change to certain charities, making it easy to put your change to good use and give a meaningful gift.

No matter what you choose, gift giving can be meaningful and affordable. Let these ideas inspire you to stay on budget and shop wisely this holiday season.

2019-10-08T07:01:00

To learn more about how much you should save for retirement and options for how to build a retirement plan that will provide lifelong income, explore the Retirement Advisor Tools at www.tiaa.org.

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Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.

This material is for informational or educational purposes only and does not constitute investment advice under ERISA. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor’s own objectives and circumstances.

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Annuities issued by Teachers Insurance and Annuity Association of America (TIAA), New York, NY.

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2019-10-07T05:45:00

(BPT) –

2019-10-01T09:05:00

(BPT) – Fall is here, which means, like it or not, cold weather is just around the corner. While most of us would prefer not to think about turning on our heat just yet, this is actually the best time to check your heating to ensure everything is operating as it should.

Neglecting to winterize your home and letting small issues pile up can have big repercussions. Ahead of the winter season, HomeServe, a leading provider of service plans, repair and installation services for the home, wants to make sure you’re aware of three major things that may go wrong if you don’t winterize your house or neglect your heating system.

1. Your utility bills may skyrocket. Utility bills often jump up in the winter due to the increased hours of darkness and the cost to heat your home. But if your heater is on the fritz or your filters are clogged, you could be in for an even bigger surprise. Dirty filters cause your furnace to work harder, which leads to inefficiency and a shortened lifespan for your heating system. Replacing filters is often an easy task for homeowners. A yearly tune-up is an inexpensive way to help prevent a costly system breakdown in the coming months. Also, keep in mind that some warranties require annual tune-ups, so don’t let your warranty go invalid by skipping this year’s tune-up.

2. The threat of carbon monoxide is very real. Do you know how old your furnace is? Do you know how long it’s been since a professional checked it over? Carbon monoxide poses a health threat when the heating system flue, vent or chimney becomes blocked from debris or other material. During a heating system tune-up, a professional service technician can check to make sure all your vents are not blocked and are working properly. Drains and traps also need to be checked and combustion gases should be analyzed and compared to the specifications of your furnace or boiler to make sure everything is running safely. Installing a carbon monoxide detector in your home is another smart way to help with early detection.

3. Water pipes can burst. It’s not just your heating system that needs to be winterized. All too often it happens — we wake up to realize our pipes are frozen, or even worse, leaking. Before the cold sets in, make sure outside hoses are put away and water is turned off. Evaluate which pipes are at the greatest risk for freezing during cold weather. For example, if your water pipes come up from an un-insulated crawl space, or if they are in or close to an uninsulated outside wall or vent, they are more likely to freeze and burst in low temperatures. Inside pipes should be covered in insulation to keep pipes warmer longer. Pipe insulation is easy to apply and available at most hardware stores and home centers.

By having an annual tune-up in the fall, you can catch small issues now, instead of experiencing bigger problems in the dead of winter. A tune-up can also save energy, reduce heating costs and prevent a system breakdown in the coming months.

For more information on National Tune-Up Day, including a heating system check-list, visit nationaltuneupday.com.

2019-09-30T14:00:00

(BPT) – In addition to its typical cadence of taxpayer correspondence, the IRS has also begun sending roughly 10,000 letters to taxpayers with virtual currency transactions that may have been unreported or misreported, as well as another tranche starting in late September to taxpayers with estimated tax obligations. This is in addition to the 720,000 IRS letter audits, 2 million math-error notices, 3 million underreported income letters, and 13.2 million letters on delinquent accounts and liens and levies that the IRS sends annually. While the cryptocurrency and estimated tax notices may garner extra attention, H&R Block (NYSE: HRB) cautions taxpayers that the volume of IRS letters and notices show that the possibility of needing to interact with the IRS after the April tax filing deadline is much more common than taxpayers realize.

“Some of these notices are really just a courtesy, meant to help taxpayers understand their obligations and stay ahead of the curve. But that doesn’t relieve the taxpayer of the stress and anxiety that receiving an IRS letter can cause. It’s nerve-racking. Plus, some letters do require a response or some action from the taxpayer,” said Andy Phillips, director at The Tax Institute at H&R Block. “Fortunately, not only do we know how to resolve a broad range of tax problems from the simple to the complex, but we also understand what it feels like and can help navigate people through to a solution.”

An experienced H&R Block IRS specialist will help taxpayers file any missing returns, if necessary; prevent or minimize additional tax assessments; reduce or eliminate any tax, penalties, and/or interest owed; and obtain the best possible payment arrangements on any balance owed.

The client starts with a free diagnostic analysis to identify the tax issue, and a tax professional will explain the resolution process. The expert works to resolve the issue with the taxing authority, whether that is the IRS or a state department of revenue. The expert follows up with the client and explains the results and next steps to remain compliant. The client is charged a flat, upfront fee based on the complexity of their tax situation. This eliminates the surprise of hidden fees and price hikes as the issue is being addressed.

“H&R Block cuts through the confusion of receiving an IRS letter, with a free evaluation, and plan to fix it. We’ll put the plan into action until your problem is solved,” said Phillips.

In addition, clients can get help that fits their busy lifestyle. They can get started by visiting an office or calling, then simply uploading their letter and getting matched with a skilled tax professional who will give them a free quote. The client can choose the most convenient method to receive help: over the phone or in person.

To get started, call 1-855-536-6504 or make an appointment.

2019-09-30T07:01:00

(BPT) – Breaking up is hard to do, but there’s one relationship you may want to reconsider — the one with your savings account. According to an August 2019 survey from Marcus by Goldman Sachs, which polled 1,053 Americans who have savings accounts with both traditional and online banks, nearly half (49%) have had their savings account at a traditional bank for more than 18 years. Consumers tend to stay with what’s familiar to them even though there may be a better alternative.

To help set up for financial success, it’s important to first evaluate your current banking situation to make sure your financial institution has your best interest (literally) in mind. An option that may be better is an online savings account that offers a higher rate. For example, if you opened a Marcus Online Savings Account at its current rate, and had an initial deposit of $25,000, you could earn $500 in a single year, which is more than what you are likely to earn with a savings account at a traditional bank.

The survey also found that of those surveyed, 72% are satisfied with the interest rate on their savings account at an online bank compared to 34% who are satisfied with the rate at their traditional bank. So if you are looking for possible alternatives to your current savings account, an online bank could be a good place to start. If you are unsure of where to begin when evaluating your current bank or when looking to switch, consider the following:

1) What is the interest rate? Make sure you are not only saving your money but also growing it by exploring savings accounts with competitive interest rates. Online savings accounts often offer higher rates. To better understand how much interest you could earn, take advantage of tools such as this online savings calculator, which helps calculate how much you could earn with a Marcus Online Savings Account.

2) Are there any fees involved, or a minimum deposit required? Avoid savings accounts that require you to spend money to start saving money. Choose a savings account that is transparent and has no transfer or hidden fees. Also look for savings accounts that do not require a minimum deposit, so you can open an account on your own terms.

3) Do you trust the financial institution behind it? When it comes to your money, you want security that you can trust. Savings accounts from FDIC-insured institutions are protected by the FDIC, an independent agency of the federal government.

4) What does customer service look like? Knowing that the bank managing your money supports you and will get you the answers that you need is crucial. An online bank may not have branches, but it can still provide customer assistance through telephone support, chat or via email. Look for banks that have easily accessible customer service representatives and are leveraging technology to make your life easier. Taking a look at awards the customer service department has received from reputable sources can help give you a sense of what to expect.

By taking the time to explore your savings account options, you could make a difference in the interest and money you are accumulating each year, ultimately preparing yourself for a better financial future.