Category: Personal Finance

Posted on

Your Holiday Gifts Still Haven’t Arrived. Now What? | Personal Finance

Your Holiday Gifts Still Haven’t Arrived. Now What? | Personal Finance

You positioned an order very last 7 days and even now haven’t gained the transport affirmation. Or it’s possible the deal is in transit, but its spot hasn’t been updated in days.

The supply chain difficulties that professionals warned us about heading into the getaway buying period have materialized. There is a authentic chance that your presents won’t get there in time for getaway celebrations. So what are your selections?

If you even now want the gift

Double-check out the get standing

Merchants and transport carriers are overloaded for the duration of the fast paced vacation season and might simply just be sluggish to deliver updates. Be patient and hold out it out another day or two, if you can. There’s a excellent likelihood the bundle is in motion and will get there in time.

If you are involved, simply call or e mail the retailer’s client company. A representative might be capable to share a lot more facts about your on-line get or work with you to locate a option. For illustration, if it turns out your item received dropped in the shuffle, maybe the vendor will resend it at an expedited delivery velocity.

People are also reading…

You can also attempt reaching out specifically to the carrier. “If it is actually in transit, the retailer far more than most likely will have just about as substantially info as you. The moment it’s still left them, it’s actually in the arms of that transportation company at that stage,” claims G. Tony Bell, an assistant professor in the division of supply chain management at Rutgers Organization School.

Set up monitoring alerts

Consumers can use apps such as Deliveries or AfterShip to observe offers coming from several retailers or carriers in 1 place, states Jane Boyd Thomas, a advertising professor at Winthrop University in South Carolina. You can also established up notifications to get automatic order updates.

What must you do if you get a shipping and delivery see but really don’t see the package? “Before you start off spinning your wheels backtracking it, request your neighbors,” Thomas states. If it’s continue to nowhere to be discovered, adhere to up with the retailer or delivery support.

Give a place holder

If it appears the reward won’t get there on schedule, think of a creative backup plan. Create a description of the present in a card or print out a photo and put it in a gift-wrapped box, “kind of like an IOU that it’s coming,” Thomas states. That way, the receiver still gets the practical experience of opening a present, even though the product is not bodily present.

Is your giftee far more the immediate-gratification sort? Get a bonus gift to maintain them more than until finally the bundle comes. Bell implies some thing smaller or fewer expensive than the authentic gift.

Either way you go, be upfront about the situation. It is critical to set expectations, “especially with young children, who may perhaps not be as open to anything alternative or some thing different,” Bell claims.

If you no for a longer time want the reward

Decide on a alternative

If the buy goes haywire or waiting around just isn’t value the hassle, it could be greatest to scrap the primary plan absolutely. You can get a considerate new existing even if there’s no time to ship a little something else. Responsible previous-minute choices contain an digital reward card or booking an knowledge, these kinds of as a tenting journey or spa working day.

If you favor to give a little something tangible, Thomas endorses browsing at regional modest businesses. “Many of them will have terrific reward concepts for you that you have not even considered of. So you are not only going to get a present, you’re probably going to have some thing hopefully even additional exclusive,” she says.

Merchants major and compact may possibly run sales on Tremendous Saturday, the final Saturday ahead of Xmas. Get ready to store or pick up orders in-shop to get discounted presents in hand by the vacations.

Cancel or return the item

You can generally cancel an order that hasn’t processed or transported and get a full refund. But even if you overlook the cancellation period, you can probable return the product just after it comes.

Quite a few retailers have prolonged vacation return procedures. Nonetheless, specific items or categories may well be excluded. For case in point, Macy’s has a 90-working day return window for most things, but a 14-working day window for Apple solutions and tech components.

Look at retailers’ web sites for policy particulars. Browse the great print diligently to make absolutely sure you realize the problems and deadlines.

Consider a 14-day return plan, for occasion. “Does it indicate the working day that it leaves their warehouse? Is that when the clock on 14 times for returns begins ticking? Is it the working day that it leaves there, or is it the working day that it reveals up at your doorstep?” Thomas says.

You’ll also want to pay back close notice to issues like whether you can return the item in-store in its place of transport it back again, and irrespective of whether you’ll get refunded in the original form of payment or in-keep credit rating. If a thing is not apparent, give the retailer a call or use the on the web chat operate to inquire thoughts, Thomas states.

The article Your Vacation Items Nevertheless Haven’t Arrived. Now What? at first appeared on NerdWallet.

Posted on

Five financial tips for stay-at-home parents

Five financial tips for stay-at-home parents

The decision to leave a job and stay home with children is often a difficult one. During the COVID-19 pandemic, there was a rise in stay-at-home parents — often fueled more by necessity than by choice. As some parents now re-enter the workforce, others are considering their options. With a new era of hybrid and remote work ushered in by the pandemic, there are more options than ever for parents that want or need to spend more time with their children at home — whether that’s working remotely, moving from a full-time to a part-time schedule, or stepping away completely.

Whatever the reason, the decision often comes with significant lifestyle and financial changes. It’s important to review family spending patterns and set goals when transitioning from two household incomes to one. Here are five tips for parents undergoing this change:

No. 1 — Estimate your timeframe. Look into the future to decide if this change might be permanent and adjust your financial plans accordingly. If you plan to go back to work, establish the amount of time you expect to be at home and ensure that you’re still able to maintain your financial goals during this period. If there is a gap, you may want to explore other employment options like working part-time or contracting work. It’s also a good idea to stay in contact with your professional network in case you do decide — or need — to go back to work.

No. 2 — Make sure you’re insured. Examine your spouse’s insurance benefits and make sure that you and your children are still adequately covered in the absence of your benefits. If possible, plan to have life and long-term care coverage for yourself and disability insurance for your spouse in the event that something would happen to either of you and you’re no longer able to work or care for your children.

No. 3 — Understand your value. A single-income family doesn’t mean that only one spouse is contributing financially. As a stay-at-home parent, you save your family many costs associated with working-parent households like daycare, cleaning services and other expensive convenience products and services. You may even find that in your new role you have more time to devote to money-saving activities like comparison shopping and cooking rather than dining out.

No. 4 — Keep your goals on track. Your household budget may need to be adjusted with your decision to become a single-income family, but don’t neglect your long-term goals. Consider working with a financial advisor who can help plan a family budget, prepare for the retirement of both spouses and to set realistic financial goals based on one household income.

No. 5 — Communicate with your spouse. It’s important to communicate your plans, desires and financial concerns with your spouse. Together, acknowledge the benefits and challenges that will accompany the decision to become a stay-at-home parent. Make sure you are aware of any possible career or salary changes that may arise in the near future for your spouse before you commit to staying at home. Ultimately, these factors and many more may go into your decision to stay at home. But whatever you decide, go into it with a full understanding of how it may impact your finances.

Bronwyn Martin is a financial advisor and chartered financial consultant  with Martin’s Financial Consulting Group, a financial wealth advisory practice of Ameriprise Financial Services, LLC. in Kennett Square, and Havre de Grace, Md. She specializes in two fee-based financial planning and asset management strategies and has been in practice for more than 21 years. To contact her visit www.ameripriseadvisors.com/bronwyn.x.martin

Posted on

Fee-Only Financial Advisors: What to Know

Fee-Only Financial Advisors: What to Know
  • Fee-only advisors give financial planning advice to individuals and couples for a set fee based on the services they provide you.
  • Fee-only advisors do not receive commissions from the sales of products.
  • Fee-only and fee-based advisors have several differences to consider when deciding which type of advisor to work with.
  • Read more stories from Personal Finance Insider.

Seeking a professional to help you manage your money is a great step to achieving your financial goals. But not all financial advisors are the same; some may offer varying services — and more importantly, they may have different fee structures.

A fee-only financial advisor will be one you’ll come across during your search. Here’s what to know. 

What is a fee-only financial advisor?

A fee-only financial advisor is an advisor that’s paid on a set rate based on the services they provide a client, rather than being paid based on commission. These types of advisors act as a


fiduciary

, meaning that they’re required to make recommendations that are in a client’s best interest. While that seems like common sense, a lot of other advisors only act on a suitability basis, meaning that they only have to provide recommendations that are suitable for a client’s situation. 

Fee-only advisors provide the following services: 

  • Listening to and giving advice on a client’s financial situation
  • Implementing the client’s plan
  • Managing the client’s assets on an ongoing basis

What’s the difference between fee-only and fee-based? 

There are a few differences between fee-only advisors and fee-based advisors. Fee-only advisors do not receive any product sale commissions, such as those through the sale of life or disability insurance, mutual funds, or annuities. They charge clients a fee for their expertise and advice, and the opportunity to work together. 

Fee-only advisors can be paid in a number of ways including:

  • An hourly rate: Advisors are paid per hour for service provided. 
  • A retainer fee: Clients pay an ongoing fee to continue the advisor-client relationship. 
  • A percentage of assets under management (AUM): Advisors take a certain percentage, such as 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, of all assets a client has under their management. 
  • A flat fee: Some advisors choose to charge a flat fee, typically paid monthly, semi-annually, or annually. 

Fee-based advisors can be paid in a number of ways including:

  • Commission-based model: Fee-based advisors can receive a fee from the sale of insurance and investment products. 
  • A combination of a commission and fee model: Fee-based advisors can receive a fee from the sale of products as well as a fee to give the client advice. 
  • Through a percentage based on assets under management (AUM): Like fee-only advisors, fee-based advisors can also charge a fee based on the amount of assets they manage for a client. 
  • Through an hourly or retainer model: Like fee-only advisors, fee-based advisors can also charge an hourly or ongoing fee for their advice. 

There are oftentimes downfalls of working with fee-based advisors, mostly because they can still make commission off of product sales. “One [drawback] of working with a fee-based advisor is that there exists an inherent conflict of interest,” says Scott Turner, CFP and fee-only advisor at Rockstar Financial Planning. “You can’t tell if they are offering the best products, or they are only limited to selling their own proprietary/limited products offered by the company they work for or represent.” 

Pros and cons of fee-only financial advisors 

There are several pros and cons to fee-only financial advisors:

Pros of fee-only:

  • Fewer conflicts of interest: Because fee-only advisors don’t accept payments on the sale of investment or insurance products they are able to make recommendations without the lure of receiving payment for such recommendations.
  • Follow a fiduciary standard: Because there are fewer conflicts of interest, fee-only advisors make recommendations that are in the best interest of the client, holding them to a fiduciary standard. 
  • Client knows fees ahead of time: Fee-only advisors discuss how they are paid with their clients ahead of time, either by an hourly rate, ongoing fee, flat fee or percentage of assets under management.

Cons of fee-only:

  • More expensive to work with: For those who need basic saving or budgeting advice, or want to purchase an investment or insurance product and don’t mind paying fees, then it may be less expensive to work with a different type of advisor. 
  • Will need to find products elsewhere: “Fee-only advisors don’t typically sell insurance, so they refer clients to a third-party insurance broker or salesperson. A fee-based advisor can often sell insurance directly to clients (although it might not be the best policy for the client),” states Matthew Jenkins, CFP and president of Noble Hill Planning, a fee-only financial planning firm. 

The financial takeaway

Working with a fee-only financial advisor can be a great way for clients to get fiduciary financial advice that’s in their best interest. However, not all clients will be able to afford the fee to work with an advisor or can justify the fee they may charge to manage the client’s assets. While working with a fee-based advisor is also an option, potential clients need to understand the fees they charge and how they get paid in order to determine if it will be a good fit. 

“Working with a fee-only advisor minimizes conflicts of interest, but just because someone is a fee-only advisor does not inherently mean they have the particular expertise you are looking for,” says Brandon Renfro, CFP and owner of Belonging Wealth Management. “You still need to vett a fee-only advisor to make sure they have the appropriate education and training to help you.”

Posted on

How To Find Out What Financial Services Your Employer Offers

How To Find Out What Financial Services Your Employer Offers

Select’s editorial team works independently to review financial products and write articles we think our readers will find useful. We may receive a commission when you click on links for products from our affiliate partners.

Financial wellness services are in demand, and employees are looking to their employers for assistance. According to Alegeus, a consumer-directed healthcare company, 69{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of workers say their employer doesn’t offer any financial well-being support or benefits. Additionally, 57{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} said they would like these benefits in the future, and 62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} said it’s an employers’ responsibility to provide them.

So if you’re running into financial hardships or just want to become more financially educated, it’s important to find out if your employer offers any financial wellness programs.

Select investigated to start if you’re interested in participating in your employer’s financial wellness programs.

Subscribe to the Select Newsletter!

Our best selections in your inbox. Shopping recommendations that help upgrade your life, delivered weekly. Sign-up here.

How to find out what financial services are offered by your employer

In July, PayPal CEO Dan Schulman and Chipotle CEO Brian Niccol appeared on CNBC’s “Squawk Box” and spoke about investing in their employees’ financial wellbeing, or lack thereof.

“When we did a survey of our employees, almost half of them were struggling to make ends meet,” Schulman said. This mirrors many Americans’ financial position, as only 39{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of Americans can afford a $1,000 emergency expense.

With this grim reality at hand, both companies, along with Chobani, Even, Prudential Financial and Verizon formed the Workers Financial Wellness Initiative. This initiative highlights a commitment to making employee financial wellness a top priority.

While some companies are trying to be more proactive about communicating what benefits they offer, it still may be difficult to find what’s available through your job. So, if you’re searching for financial resources from your employer, where should you get started?

Start by speaking with your human resources department

Your company’s human resources department will be able to direct you to any potential resources they have, including an EAP (employee assistance program), which offers a wide array of legal, financial and health services, or another similar program offering financial planning assistance. Make sure to ask if the benefit is complimentary or if there are any fees to use it.

For example, at NBCUniversal (Select’s parent company), there’s a free benefit for all employees to speak with financial advisors from Ayco, the personal financial management arm of Goldman Sachs. Ayco’s purpose is to partner with employers to deliver financial wellness coaching to employees, including help navigating retirement, tax planning, budgeting, creating an emergency fund, purchasing a home and more.

It can seem intimidating to meet with a financial advisor, but think of it as going to the doctor. You’re simply going for a checkup and will be directed towards solutions for any issues you may be facing. And regardless of if you’re a personal finance expert or someone who is starting from square one, everyone can benefit from a financial checkup.

Additionally, you may want to check your company’s employee portal. You’ll likely find a section listing the benefits you’re eligible for, including how to set up a financial coaching session.

How to plan for a meeting with a financial planner or coach

If your employer does offer any financial wellness services, your next step should be to think of questions for the financial planner you meet with.

It may also be helpful to have a file of recent financial documents so you can deliver the most accurate picture of your finances. CompassIowa, a financial services firm in Iowa, recommends bringing the following to your first meeting:

  • Recent paystubs
  • Recent tax returns
  • Debt account statements (i.e. credit card statements)
  • Investment and retirement account statements
  • Bank account statements, annuity accounts and life insurance policies
  • And any other other documents relating to debt, income or assets

Once you collect these documents, consider what you want to get out of the coaching session. Financial advisors or coaches can help you with fundamental personal finance knowledge such as: how to set up a budget, how to begin saving for a home, a debt-payoff plan or consolidating debt. Or if you need consulting on more strategic things like retirement, creating a will or liquidating investments, they should be able to help with these subjects as well.

Bottom line

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

Posted on

Personal finance education belongs in PED standards

Personal finance education belongs in PED standards

As the New Mexico Public Education Department (NMPED) revamps the state’s K-12 social studies standards, it is imperative we ensure all students are provided with the skills necessary for navigating life after they graduate. One essential element should be personal finance education.

We commend the PED for its work to bring the state’s social studies standards into the 21st century. However, we believe the department’s proposal would be greatly strengthened by the inclusion of personal finance standards.

Our neighboring states, among them Arizona, Colorado, Texas and Utah, have adopted standards to ensure their students learn the financial skills required for personal and professional success. In fact, New Mexico is currently one of only five states that has not incorporated personal finance into our K-12 education standards.

Personal finance standards will make sure New Mexico’s students learn how to make a budget, open an account at a bank or credit union, save and invest for their futures, and avoid high-cost debt.

During the most recent legislative session, Dixon co-sponsored and Figueroa strongly supported a legislative effort led by Reps. Moe Maestas, D-Albuquerque, and Willie Madrid, D-Chaparral, to make personal finance a graduation requirement. The bill received strong bipartisan support, passing the House unanimously before running out of time in the Senate.

That effort, and adding personal finance to the education standards, builds on Maestas’ successful 2007 reform that required financial literacy to be offered as an elective in New Mexico’s high schools. Unfortunately, only about 11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of students currently complete that course.

Adopting strong personal finance standards lays the foundation for guaranteeing that all students of all backgrounds are receiving equitable instruction, and are provided the skills necessary for financial planning and decision-making when they enter the workforce or post-secondary institutions.

In October 2018, researchers at the University of New Mexico released a report showing that two of every three private-sector workers in New Mexico have no money saved for retirement. Nearly 80{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} have less than $10,000 saved. This continues to weigh heavily on the wallets of many New Mexicans. Should there be another pandemic, or major recession, our state will be better off if we have prioritized teaching our state’s students about savings, investing, costs of borrowing and how credit works.

Addressing personal finance will make the school curriculum more relevant and ensure that students who do not learn how to manage their personal finances at home are not left behind. This material also helps us fight cycles of generational poverty, which has plagued our state for decades. The skills developed by students will be shared with their family members, who could also gain from this information.

Personal finance education also supports the findings from the Martinez/Yazzie lawsuit by providing students – especially low-income, Native American, English language learner, and those with disabilities – the skills and knowledge necessary to be college- and career-ready. The ruling found the state failed to meet this obligation and we must ensure we do our part in providing students a sufficient education.

We hope PED will adopt robust personal finance standards within the current revision to the social studies standards. We owe it to NM’s future generations.

Posted on

8 rules for saving, borrowing and spending money [Personal Finance]

8 rules for saving, borrowing and spending money [Personal Finance]

The best personal finance advice is tailored to your individual situation. That said, a few rules of thumb can cut through the confusion that often surrounds money decisions and help you build a solid financial foundation.

The following guidelines for saving, borrowing, spending and protecting your money are culled from nearly three decades of writing about personal finance.

1. PRIORITIZE SAVING FOR RETIREMENT

In an ideal world, you’d start saving with your first paycheck and keep going until you’re ready to retire. You also wouldn’t touch that money until retirement. Even if you can’t save 15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of your pre-tax income for retirement, as recommended by Fidelity and other financial services firms, anything you put aside can help give you a more comfortable future. Aim to take full advantage of any company match you get from a 401(k) at work — that’s free money — and borrow against or cash out retirement funds only as a last resort.

2. SAVE FOR A RAINY DAY

You may have read that you need an emergency fund equal to three to six months of expenses, but it can take years to save that much. That’s too long to put off other priorities, like saving for retirement. A starter emergency fund of $500 can be your first goal, and then you can build it up. While you’re saving, try to create other sources of emergency cash, such as a Roth IRA (you can pull out your contributions at any time without taxes or penalties), space on your credit cards or an unused home equity line of credit.

3. SAVE FOR COLLEGE

Got kids? Open a 529 college savings plan and contribute at least the minimum, which is typically $15 to $25 a month. Retirement savings comes first, but anything you can save will reduce how much your child may need to borrow. Also, research shows the simple act of saving for college increases the chances that a child from a low- to moderate-income family will go to college.

4. BORROW SMART FOR COLLEGE

A college degree can pay off in higher earnings, but lenders may allow you to borrow far more than you can comfortably repay. If you’re borrowing for your own education, consider limiting your total debt to what you expect to make your first year out of school. If you’re a parent borrowing for a child’s education, aim for payments that are no more than 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of your after-tax income and that still allow you to save for retirement. If your payments are higher than 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of your after-tax income, investigate income-driven repayment plans that could bring down your costs.

5. USE CREDIT CARDS AS A CONVENIENCE

Credit cards offer convenience and can protect you from fraud and disputes with merchants. But credit card interest tends to be high, so don’t carry credit card balances if you can avoid it. If you routinely pay your balances in full, look for a rewards card with a sign-up bonus that returns at least 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of what you spend.

6. FINANCE YOUR HOME SMARTLY

If you want to be a homeowner, the best time to buy your first home is when you’re financially ready and in a position to stay put for a few years. Opt for a mortgage rate that’s fixed for as long as you plan to remain in the home, and don’t make extra payments against the principal until you’ve paid off all other debt and are on track for retirement.

7. BUY USED VEHICLES AND DRIVE THEM FOR YEARS

Buying a car right now isn’t a great idea; supply-chain kinks and other pandemic-related issues have inflated the cost of both new and used cars. In general, though, buying a used car can save you a ton of money over your driving lifetime, as can driving your car for many years before replacing it. These days, a well-maintained car can last 200,000 miles without major issues, according to J.D. Power. This means you can get roughly 13 years of service out of your car if you drive it 15,000 miles a year. Ideally, you would pay cash for cars. If you need to borrow, try to limit the term of your loan to a maximum of five years.

8. INSURE AGAINST CATASTROPHIC EXPENSES

Use insurance to protect yourself against catastrophic expenses rather than smaller costs that you can easily pay out of pocket. If you have sufficient savings, consider raising the deductibles on your policies to save money on premiums. Be careful about high-deductible health insurance policies, though. Having a high deductible could cause you to put off medical care, and it’s better to err on the side of safety when it comes to health.

This column was provided to The Associated Press by the personal finance site NerdWallet. The content is for educational and informational purposes and does not constitute investment advice. Liz Weston is a columnist at NerdWallet, a certified financial planner and author of “Your Credit Score.” Email: lweston@nerdwallet.com. Twitter: @lizweston.

RELATED LINK:

NerdWallet: Personal finance defined: The guide to maximizing your money https://bit.ly/nerdwallet-personal-finance-defined