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Good timings to you
The holiday season can really press on our schedules — shopping, making travel arrangements, work parties and school concerts fill our nights well before the holidays and into the final days of December.
That busyness can also be a source of unexpected financial strain. Multiple trips to the mall don’t just take time and gas money — they can also take the edge off your discipline to spend wisely. When we dine out for convenience, buy on impulse because a price is marked down, or choose gifts based on media hype, we risk leaving money on the table.
Fortunately the solution may be as simple as planning ahead. Before you get whisked into the holiday season, sit down with a pad and pen and make a plan out your holiday schedule with the following tips in mind.
Budget and divide. The most important part of sticking to a budget is coming up with one. If you don’t have a guide for spending, you are much more likely to buy items on impulse and spend more than you can afford.
Once you decide what amount you can spend, make a list of the people you would like to give presents. Divvy different shares of the budget to family and friends (or coworkers) and spread each amount among the people listed. With your price points decided, you can focus on getting each person something unique.
Set your limits. Paying for holiday gifts should end before the holiday season does. Remember that gifts are gifts, not necessities, and that no one on your gift list wants you to run up a credit card balance in order to buy them something expensive. Also try to avoid the post-holiday sales unless there is something specific that you need to purchase and plan to use now. Chances are this year’s hot product won’t have the same appeal when the next holiday season comes around.
Shop during the lulls. If you’re serious about saving money this holiday season, treat “Black Friday” for what it is: a social event designed to promote extra spending. After watching the frenzy on the news, head out during one of the first few weeks after Thanksgiving, when store inventories are more stable – or better yet, do your shopping a few weeks in advance when prices aren’t yet inflated. Many stores will also offer price adjustments if you’ve purchased items at a higher price within 14 days.
Catch the DIY spirit. The sluggish economy has forced many people to cut back on holiday spending, but this trend has also brought an upside: more creative giving. With less money to spend, many consumers have forgone big ticket items in favor of unique gifts sold at second-hand or local stores. Have a history buff on your list? There’s no need to buy a boxed documentary set when you can peruse a used bookstore to find a vintage edition instead.
Others have even cut back on shopping and made their own gifts. Do you enjoy knitting, crafting or cooking? Make a custom hat, build a picture frame for a photo taken over the holidays, or make a fancy dessert for the foodie in the family. Don’t feel you’re being cheap. Often the more personal your gift, the more memorable it is.
Do your homework. Research before you spend. Websites like SalesCircular.com and PriceGrabber compare both individual products and sale prices offered by major retail chains.
If you have a good handle on the individual items you want to buy, you may be better off doing most of your shopping online. Big retailers like Amazon often give free shipping for purchases over a certain dollar amount, which can maximize the impact of the lower prices those retailers afford by externalizing shipping costs.
Cut out convenience. Pulling off a well-researched, soundly-budgeted and creative set of gifts takes time and energy in a season where both are limited. While it’s fine to give yourself a break by eating out or paying more for a gift at one store to save the trip to another, don’t spoil your careful planning by spending too much on incidentals.
You can beat such weaknesses of the moment through small actions: spacing out your errands into smaller, less hurried trips and giving yourself more time to relax throughout the week. If you do shopping after work, snack on something before you leave to tide yourself over until you get home.
None of these strategies are easy. But your discipline during the run-up will make the relaxation and indulgence of the holidays even sweeter.
Paul A. Pouliot CFP®, CHFC®, CASL® , Financial Advisor, An Ameriprise Platinum Financial ServicesSM practice, Ameriprise Financial Services, Inc.
116 South River Road | Bedford, NH 03110
Office: 603.296.0030 | Fax: 603.296.0028
paul.a.pouliot@ampf.com
http://www.ameripriseadvisors.com/paul.a.pouliot
Disclaimer: This communication is published in the United States for residents of AZ, CT, FL, GA, KY, MA, ME, NH, RI, TN, VT and WA only and this advisor is licensed only in the states of AZ, CT, FL, GA, KY, MA, ME, NH, RI, TN, VT and WA © 2011 Ameriprise Financial, Inc. All rights reserved.
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Elder Financial Abuse
In 2011, elder financial abuse continues to be the “Crime of the 21st Century,” one that is often at the heart of other forms of elder mistreatment. As revealed in Broken Trust: Elders, Family, and Finances (2009), elder financial abuse is a many-headed Hydra for both elders and their families, as the tentacles of exploitation reach far beyond a single event reported or a single elderly victim. Losses are significant, with actual dollars lost not the only losses incurred.
CLICK HERE TO DOWNLOAD THE ENTIRE STUDY
Losses and Costs of Financial Abuse
Over the three-month period from April through June 2010, the NCEA newsfeed media reports revealed approximately $530,476,743 in losses from all forms of elder financial abuse. However, as reported in Broken Trust: Elders, Family, and Finances (2009), the actual dollar amount involved is much higher, as no dollar amount was reported in 36% of articles. Extrapolating that unreported losses are equivalent, we estimate the annual dollar amount loss by victims of elder financial abuse in 2010 was $2.9 billion, a 12% increase from 2008.
Instances of fraud perpetrated by strangers and family, friends, and neighbors were most frequently reported. Cases involving strangers as the perpetrators comprised 51% of the articles. Reports of elder financial abuse by family, friends, and neighbors was second, with 34% of the articles. It is possible that stranger fraud is more likely to be reported and publicized than family/friend/neighbor fraud, given the shame and fear of retaliation or further harm often expressed by elders abused by their loved ones or trusted friends and neighbors.
Other reports of exploitation occurred within the business sector (12%) and Medicare and Medicaid fraud (4%).
CLICK HERE TO DOWNLOAD THE ENTIRE STUDY
Who Were the Victims?
The highest numbers of victims were in the 80 to 89 age range, involving 68 elders: 26 men and 42 women. The typical victim in this age group was visible to potential perpetrators in the community through activities at banks, grocery stores, churches, or driving around town, and was currently exhibiting some noticeable signs of mild to severe cognitive or physical impairment. In almost all cases, there existed a combination of tenuous, valued independence and observable vulnerability that merged in the lives of victims to optimize opportunities for abuse by every type of perpetrator — from the closest family members to professional criminals.
CLICK HERE TO DOWNLOAD THE ENTIRE STUDY
SOURCE: MetLife Mature Market Institute
For more information and a free financial consultation, contact:
Chris Canney, Financial Services Representative
MetLife Danvers
222 Rosewood Drive, 3rd Floor
Danvers, MA 01923
Phone: (978)646-3035
Fax: (978)646-9240
E-mail: ccanney@metlife.com
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New Year’s Resolutions for Every Stage of Your Financial Life
It’s time for that annual rite of passage into the New Year: making your resolutions. In addition to vowing to lose 10 pounds or organize your photo drawer, perhaps 2012 should be the year to focus on your finances. Regardless of your age or financial status, the following ideas might help make 2012 more financially beneficial.
Twenty-Somethings.
If you are fortunate enough to have school behind you and have landed a job in this challenging job market, congratulations! Now it’s time start preparing for your financial future.
Once you have a plan to repay your student loans, perhaps the most important step you can take in 2012 is to start creating a cash reserve for emergencies. Some experts recommend stashing away three to six months worth of living expenses to keep you afloat in the event of a job loss, accident or any other unforeseen situation that might affect your financial security.
Keep your cash reserves in liquid investments that will be readily available in case you need them. Consult a financial advisor who can assist you in finding investments that will hold your cash reserves and are accessible in the current low interest rate environment.
Thirty-Somethings.
With all the current demands for your time and money, it’s hard to think about saving for retirement. An employer-sponsored plan like a 401(k) or a 403(b) is an easy way to invest for the future. If you haven’t started doing so already, resolve to make 2012 the year you start maximizing contributions to your company’s retirement savings plan.
If you can’t contribute the maximum right away, contribute at least enough to qualify for any employer matching contribution. It’s essentially free money that can help you take full advantage of the savings plan.
To get started, talk to your Human Resources representative or visit the plan provider’s website. You’ll want to find out how much you are contributing and whether an employer match is currently available. Keep in mind that the 401(k) contribution limit is $17,000 in 2012 – up from $16,500 in 2011.1
Forty-Somethings.
Now that you have more at stake financially, make 2012 the year to review your life and disability insurance coverage to ensure that it reflects your current situation and your future goals. Start by asking yourself these questions:
· How might unexpected events impact my family’s goals?
· How will I provide for dependents if I’m unable to earn income or if I am gone?
If you are overwhelmed by the prospect of making insurance decisions, a financial advisor can help you take a big picture look at your finances and see what types and amounts of insurance make sense for you.
Fifty-Somethings.
Are you feeling behind on your retirement savings? Resolving to take advantage of retirement plan catch-up contributions in 2012 can help make you feel more on track. People age 50 and older can make special contributions to their qualified and non-qualified plans over and above the regular contribution limits.
In addition to the 401(k) contribution limit of $17,000, age 50 plus workers can contribute an extra $5,500 to their qualified plan in 2012. Plus you can make an additional $1,000 contribution to your IRA on top of the normal $5,000 limit. With retirement just around the corner, you can make this the year to kick your savings into high gear.
Sixty Plus-Somethings.
If you are retired and enjoying the fruits of your financial planning, it’s time to start thinking about your legacy and estate plan. If you’ve procrastinated doing so, 2012 can be the year to give yourself peace of mind knowing that you’ve secured your family’s future, and are ready to help the causes close to your heart.
Designing a legacy consistent with your values is a personal and complex process, but well worth the effort. Before the year gets away from you, set up a family estate planning meeting to open communication, prevent conflicts and let your family know what’s important to you. Then seek professional advice from an attorney, tax professional or financial advisor to make sure your estate plan is in order.
Before you close the book on 2011, take a look back at what you’ve accomplished with your money and think about what you’d like to change for next year. Your financial picture is ever evolving – and it’s never too late to make changes to help ensure many happy new years to come.
1 IRS 401(k) Resource Guide - Plan Participants
Paul A. Pouliot CFP®, CHFC®, CASL®
Financial Advisor, An Ameriprise Platinum Financial ServicesSM practice, Ameriprise Financial Services, Inc.
116 South River Road | Bedford, NH 03110
Office: 603.296.0030 | Fax: 603.296.0028
paul.a.pouliot@ampf.com
http://www.ameripriseadvisors.com/paul.a.pouliot
Disclaimer: This communication is published in the United States for residents of AZ, CT, FL, GA, KY, MA, ME, NH, RI, TN, VT and WA only and this advisor is licensed only in the states of AZ, CT, FL, GA, KY, MA, ME, NH, RI, TN, VT and WA
© 2011 Ameriprise Financial, Inc. All rights reserved.
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Five Steps for a Smart Financial Start in 2012
If you pay attention to the news, you’ve seen governments around the world struggling to balance their budget and stay afloat. Ironically, the basics of balancing the income and expenses of a country are not that different from what you do with your own finances — and it can be just as much of a challenge. But a well-planned budget is an invaluable tool if you want to improve your financial position. Here are five things you can do now to make setting and reaching your 2012 financial goals a lot easier.
Step One: Organize your bills
Start by gathering all of your monthly, quarterly and annual financial obligations. Next, look back through your check register or your bank statements and collect data of all the products and activities that drain money from your wallet. Then list and categorize these expenses. Standard categories include food, clothing, general household, transportation, entertainment and so on. Saving for various things should be on the list too, since it takes money out of circulation, if only for the time being.
You’ll be ahead of the game if your budget accounts for “unplanned” expenses such as a visit to the emergency room (now an especially costly adventure, thanks to high deductible medical plans) and car or home repairs. While you may not be able to name what financial burden will arise in the next 12 months, you can be sure something will cause you to part suddenly with some of your hard-earned money. If you have cash set aside for just those occasions, then you can pay the expense and avoid a crisis. If not, you risk defaulting on other obligations, damaging your credit and causing all too much stress in your life.
Step Two: Scrutinize the numbers
To create a realistic budget, examine and adjust the expenses you’ve identified above against your take-home pay. Highlight areas that are out of whack. One way to evaluate the numbers is to break down your budget categories by percentages. Ideally, your housing costs should not exceed 30%; transportation expenses should not exceed 20%; and food should fall under 15% of your total expenses. Look online for guidelines and see where your spending exceeds recommendations.
Step Three: Fix what you don’t like
To change your financial reality, set realistic and stretch goals that will improve your bottom line. When you identify a target — for example, to trim $100 from your monthly food budget — break it down. What does this mean for you on a daily or weekly basis? Maybe you need to buy items in bulk, purchase off-brand, clip more coupons or employ some other cost-saving strategy. Be creative and rise to the challenge.
If it’s clear you don’t have sufficient money coming in each month, consider ways to up your income. Do you need to work overtime, go after that promotion, pursue a new career or get a second job? If you’re stuck where you are, circle back to your spending habits. You may need to downsize your house or car, stop eating out or cut up your credit cards. You’ll be pleasantly surprised by the ideas you generate when you take the time to examine the numbers with a clear head and a critical eye.
Step Four: Follow your budget
There’s no point in making a budget if you don’t intend to act on it. Keep your budget in front of you and document your expenses on a daily basis. Then adjust your spending as necessary. Monitoring your budget this way can make your money more manageable and give you the feeling of being in control.
Step Five: Check in with a financial advisor
There are books and websites that can teach you the finer points for preparing and following a budget. But there’s nothing quite like being in the presence of someone who can share their financial knowledge. Consult a financial advisor for an honest assessment of your financial health and take advantage of insights and strategies that can help you improve your finances in 2012 and beyond.
Paul A. Pouliot CFP®, CHFC®, CASL® , Financial Advisor, An Ameriprise Platinum Financial ServicesSM practice, Ameriprise Financial Services, Inc.
116 South River Road | Bedford, NH 03110
Office: 603.296.0030 | Fax: 603.296.0028
paul.a.pouliot@ampf.com
http://www.ameripriseadvisors.com/paul.a.pouliot
Disclaimer: This communication is published in the United States for residents of AZ, CT, FL, GA, KY, MA, ME, NH, RI, TN, VT and WA only and this advisor is licensed only in the states of AZ, CT, FL, GA, KY, MA, ME, NH, RI, TN, VT and WA
© 2011 Ameriprise Financial, Inc. All rights reserved.
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A reverse mortgage can do different things for various people. For some people it might be a fairly easy technique to pay bills . For some individuals it may well be a cushion within their wallet or even more money designed for an unexpected emergency. It may even be that remarkable family vacation you’ve been fantasizing about, or perhaps the remodeling of your home that you’ve been putting off for a long time. What exactly a reverse mortgage is not , nevertheless, is no cost currency that by no means will have to be paid back. There are several of the reverse mortgage rules that are regularly misconstrued.
In the time frame that reverse mortgages happen to have been accessible, several misconceptions together with preconceived notions have developed. For that reason, without having done any the studies, plenty of seniors think them an undesirable alternative for adding to their income. In this post we will tackle various of these “significantly less than truthful” concepts related to reverse mortgages.
False impression #1: “When I take out a reverse mortgage the lending company will certainly own my house.”
This is just not true. Compared with a conventional mortgage, the lender doesn’t have any right of foreclosure providing the home owner is up to date with taxes and insurance policy expenses. Having said that, if you undertake get rid of your residence subsequent to obtaining a reverse mortgage, that reverse mortgage, or collateral mortgage, must be paid off.
Misconception #2: “If We take out a reverse mortgage I most certainly will have zero estate left.”
Yet again, this is not the fact. Seniors taking out reverse mortgages can live in your home as long as they want, and also gained earnings from the reverse mortgage. With each advance out of the reverse mortgage, the homeowner’s collateral in the home minimizes. There will come a time when the level of equity is extremely minimal, but, the reverse mortgage influences just the relationship from the mortgage to the actual valuation on the home. It won’t influence anything more which the house owner has access to, that is in addition part of the house. The beneficiaries on the real estate can dispose of the property any method they opt for, however they are obligated to pay the reverse home mortgage.
Misconception #3: “These loans are simply intended for those people who are desperate for currency.”
When the perception of reverse mortgages was first formulated, this declaration might have been truer than it is now. Present-day senior is much more likely to be looking for a reverse mortgage more out of want than need. A high percentage of reverse mortgages are increasingly being given at this point simply to produce the safety of economic cushion as opposed to total need.
False impression #4: “In order to apply for funds, I have to be debt-free.”
In fact, considering this is actually a “false impression,” this is incorrect. Yes, you have to own a house, though this house may possess a mortgage on it. In truth, some people take advantage of reverse mortgages to settle their forward mortgage. The lending institution is going to figure out how much the homeowner might get from the reverse mortgage and deduct that which is owed on the existing forward mortgage, leaving the excess finances available for the home-owner. The best thing about this is definitely that the home-owner will not have a month to month house loan fee, and might have some added cash to boost their cash stream. Definitely , less cash owed regarding the present forward mortgage results in extra money to be disbursed after the home finance loan is actually paid.
Misconception #5: “I won’t be allowed to qualify for a reverse mortgage as a result of my low credit score.”
Most senior citizens with adverse credit will not even look at obtaining a reverse mortgage as a consequence of that bad credit. There’s very good news to suit your needs. You’ll never be refused financing because of a bad credit score . This is due to this concept operates differently compared to traditional, conventional home loans.
Consumer credit just isn’t even a concern whenever you apply to get a reverse mortgage. Your lending institution will certainly run a credit report, but it is not for the particular intention for determining your credit history. The aim of the credit history review is to find out if you owe the government any money . This usually appears in the form of rear taxes. Even though you currently have delinquent taxes, you can get a
reverse mortgage, and those taxes shall be paid out of the cash of your brand new loan.
The rest of the finances coming from the reverse mortgage can be used at the homeowner’s discretion.
Source
For information about a reverse mortgage in Massachusetts, contact Bob Gersh, iReverse Home Loans: (781) 202-7475 or http://askbobgersh.com/
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