GFC TV Ep 006: 3 Long Term Care Alternatives You Might Not Know

Mary’s (name changed) mom has been at a long-term care facility for over five years.

When Mary came to me, she transferred her investment account with her husband and her mom’s account (she had power of attorney) to my firm Alliance Wealth Management.

We asked Mary what the goals were for her mom’s money, and she told us that her mom wished to leave the money to Mary and the grandchildren.

Unfortunately, because Mary’s mom had Alzheimer’s disease, that sizable account was used to fund the long-term care facility. And, sadly, the costs for the long-term care facility just went up and up.

And that once sizable account is now completely depleted. If there had been some kind of long-term care planning done, there would have still been a sizable account even after the care that Mary’s mom received at the facility.

This is just one story that shows the importance of doing some long-term care planning. It doesn’t take much time to consider the options. You just have to make sure you do it.

Long-term care insurance has been important for a number of families. But sometimes, it’s best to consider the alternatives. In some cases, the alternatives might be better for families than actual long-term care insurance.

So, if you’re the kind of [awesome] person who wants to know all of your options so you can make an informed decision, you’ve come to the right place.

Sit back, relax, and let’s explore some of little known alternatives to long-term care insurance.

But first, we’ll explain what long-term care is in the first place. We’ll also explore your odds of needing it, and much more!

There’s a lot to go over here, so grab a coffee and let’s dive in!

Just What Is Long-Term Care?

Long-term care is not equal to medical care.

Here are some things that long-term care involves:

• Bathing
• Dressing
• Eating
• Transferring (to bed, chair, etc.)
• Housework
• Managing money
• Shopping for groceries
• Communication with others

These are called “assisted daily living activities.” Notice: That’s not the same thing as medical care! Now, some hospitals and plans may provide this care, but if not, you’re going to need some extra coverage.

What Are the Odds You’ll Need Long-Term Care?

Well, 9 million Americans over the age of 65 needed assistance in 2012. That number is expected to grow to 12 million in 2020.

68% of adults turning age 65 are expected to need some form of long-term care! That means the chances are not on your side. You’re probably going to need long-term care coverage of some sort.

Who’s Responsible for Paying?

Medicare might pay up to 100 days as a maximum or couple that with skilled home health care.

Medicaid meets many long-term care needs if you meet income and eligibility requirements. What we’ve seen is that you have to be at about the poverty level or below to qualify.

Department of VA also has separate long-term care planning that they offer and you might be able to get some coverage there. But otherwise . . . .

You will have to pay if you can’t find coverage elsewhere!

How much will you have to pay? We’ve seen numbers as high as $136,437 per year. However, this does vary from state to state – but even the best case scenarios don’t look that great.

Long-Term Care Options (and a Case Study)

In order to explore your long-term care funding options, it would be helpful to look at them in the context of a case study.

Take “John and Sheila Jones” for instance. Both of them are age 55 and live in Georgia where the average cost of a nursing home is $64,000 annually. They have $1.5 million for retirement, are in generally good health, and are seeking $4,500 of monthly long-term care coverage just for John.

Here are their options:

Traditional Long-Term Care Insurance

Although this article will focus on long-term care insurance alternatives, it’s important to make sure that you have a good understanding of how traditional long-term care insurance works so you can get a good baseline for the alternatives.

When you call around asking how much long-term care costs, you’ll normally receive prices in the form of a daily cost. In this case, let’s say that the maximum daily benefit is $150.

It’s also important to know the maximum benefit pool: $219,000. The maximum period of coverage is four years.

Now here’s the thing –those last two figures have a substantial limitation in that if John needs to be covered for more than four years, he won’t be. Additionally, if he meets the maximum benefit pool figure, he won’t get any more coverage.

So, let’s say that he has care for four years but hasn’t met his maximum benefit pool amount. Unfortunately, he won’t get any more coverage. It’s one or the other.

Plus, there are no death benefits for this traditional long-term care insurance.

The premium for this coverage? $387.45 per month.

So, the benefit of this policy is that it covers or can supplement long-term care costs to protect assets. The downside is that they have to use it or they will lose it.** Additionally, their premium may increase (it happens, and sometimes substantially).

Wade Pfau, a Forbes contributor, described why it’s so important for people to shop around for different providers. Some providers will actually create inexpensive policies to lure customers into the plan, and then will increase premiums at a later time. Don’t fall for this trap.

**Please note that all long-term care policies are structured differently.  Make sure you understand the total maximum coverage you’ll receive for the life of the contact.

1. The Legacy Optimizer Strategy

The Legacy Optimizer is simply life insurance with a long-term care rider.

You probably already know what life insurance is, but what’s a rider? A rider is an option that you can add on top of a policy. It’s like a feature (like GPS) you can add onto your car. Simple, right?

The thing about this option is that it actually has a death benefit (from the life insurance) which is $225,000. The maximum daily benefit is $150. And, the maximum benefit pool is $225,000.

The maximum period of coverage is 50 months which is pretty close to the four years in the traditional long-term care insurance example.

The premium for this policy is $3,926 annually (or about $327.17 per month – less than the traditional long-term care insurance.

Keep in mind that this is a universal whole life policy that allows acceleration of the death benefit to pay for long-term care. Also, remember that The Legacy Optimizer Strategy provides a death benefit whereas the traditional long-term care insurance does not.

Finally, this is structured in a monthly or annual premium version to stretch costs over time.

2. The Income Plan with Long-Term Care Bonus

Wait, you’re probably thinking that I hate annuities. Actually, I don’t hate annuities. I do hate variable annuities, but some types of annuities might actually be right for you.

Annuities are not evil. Well, not all of them.

Some advisors that sell annuities are, well, “evil.”

Again, there are situations where annuities make sense. There must be a detailed financial plan to make sure that an annuity makes sense.

Remember: Annuities must have a purpose. If your advisor tries to sell you an annuity without explaining why it makes sense, run the other way.

The kind of annuity we’re talking about for our example here is a fixed-indexed annuity with a single premium.

John and Sheila Jones, should they take this alternative, would be putting in a lump sum of money at age 55 and then would receive a monthly income benefit in 10 years at age 65 of $2,300 per month.

Now, if they were to go into long-term care, there is a long-term care doubler benefit which would pay them $4,600 per month while they are in long-term care. Bonus!

The maximum period of coverage is 60 months for this alternative. That’s more coverage than the other ones thus far.

The premium? $350,000 single premium (that’s the lump sum we talked about).

Here are some of the key points you should know about this alternative:

• It’s only available for one payee regardless of the timeframe used – This means, for example, that if John goes into long-term care for two years, comes out of long-term care, and then goes in again – the doubler benefit would no longer be available. Additionally, this can only be used for one person.
• There’s a two-year waiting period after the income has started to use the doubler – For John and Sheila, this means that the doubler can’t be used until age 67.

3. The Hybrid Strategy

This is also called an asset-based policy.

Wade Pfau (a contributor for Forbes mentioned earlier) explained that hybrid long-term care insurance policies are the result of attempts to combat concerns related to traditional long-term care insurance. So, if you’re weary of traditional long-term care insurance, and are looking for an alternative, this one might be something to consider in particular.

This one has a death benefit of $150,000, a maximum daily benefit of $150, and a maximum benefit pool of $150,000.

The maximum period of coverage is 33 months – lower than some of our other options.

The Hybrid Strategy has a one-time premium of $72,330.

Remember that this option has a death benefit and they can also accelerate that death benefit.

Some policies have a return of premium option so that John and Sheila can pull out of the option and get their premium back (costing them their interest if they do so).

This policy also allows John and Sheila greater options than traditional long-term care policies through a death benefit.

Finally, this is a single premium policy which allows them to use money they have set aside that they are not expecting to use for retirement to insure against long-term care costs.

Here are some of the features we look for on these hybrid policies:

• Return of Premium Option – We like not getting locked into an investment!
• Spousal Benefit – Shelia in our example would also have coverage.
• Lifetime Rider Option – An additional cost that gives the ability to receive money for long-term care for life (it would never run out).

Let’s Review the Alternatives!

The Legacy Optimizer (insurance with long-term care rider) can be very expensive and payments must continue.

The Income Plan with Long-Term Care Bonus (fixed-indexed annuity with long-term care benefit) must have an income need established and there’s going to be contract periods and surrender charges.

The Hybrid Strategy (asset-based long-term care) has a single premium and the remaining benefit goes to the heirs.

Personally, I prefer the asset-based long-term care plan. With the spousal feature that can cover both the husband and the wife, the 100% return of premium feature, and the lifetime rider option (although at an extra cost), this “hybrid” approach can be very attractive.

Which Option Should You Choose?

Let’s forget John and Sheila for a moment. Which option should you choose?

 Anne Tergesen, a contributor for The Wall Street Journal, explained that when you’re deciding between a traditional policy and a hybrid policy, there are various factors that will help you determine what is right for you. Your tolerance for investment risk matters (in fact, it matters a lot). Your net worth matters (agreed, if you’re wealthy, you may not need a plan in the first place). And, you’ll want to determine whether you want multiple forms of policies instead of only one.

The worst option is to do nothing or to cancel a policy when you don’t have a backup plan.

Here’s a story about a close call.

One of my clients told me about his father, a widower, who had purchased a modest long-term care insurance package with two years of benefits at $75 per day. At that time, the dad was in perfect health. He wasn’t a smoker, wasn’t obese, and was physically active. Medical history? Great!

I have to say, this is amazing that the father purchased this policy. Many don’t.

However, at the age of 81, the father wanted to cancel the policy because he thought the premiums were too high. Thankfully, his children pointed out that their family members live a long time and that even though he was in good health, he might not always be and would need the benefits.

The father, thankfully, agreed to hang onto the policy. Three years later, dementia required the father to enter an assisted living program for six months followed by a nursing facility.

Again, thankfully, the policy covered most but not all of his care. The children said their only regret was not encouraging their father to get a policy that would last longer than two years and have a larger per diem benefit.

So you see the value in having some kind of plan. Which option should you choose? Well, that depends on your particular situation.

My recommendation is to sit down with a financial planner that can look at your situation in a comprehensive manner. Remember: One part of your financial life is not isolated from another part of your financial life. Your financial life is a whole unit. Change one thing, and you might change another.

Many times, which long-term care puzzle piece you choose to fit into your financial picture depends on your existing situation. But it doesn’t stop there. What you plan on doing in the future matters a whole lot, too.

I remember clients who didn’t tell me about this or that they were going to buy in retirement, and it changed their financial life forever. Had I known, I would have recommended a different option. That’s why it’s so important to anticipate future expenses and ensure your financial professional knows your intentions.

Finally, make sure you understand the ins and outs of your long-term care strategy before you purchase a policy. There are financial “advisors” out there who will take advantage of you if you let them. The easiest way to avoid this pitfall is to simply ask them to explain exactly why they are recommending a particular policy for you. Then, run the advice by another financial professional. Get several opinions. See what makes the most sense. Think through it!

If your financial advisor won’t take the time to explain the policy they are recommending in detail and to show you the alternatives, you might be sitting in front of a salesperson – not a financial planner.

While there are a few alternatives to traditional long-term care insurance, there are many policies available for each alternative. There’s a lot of ground to cover. You’re going to need a patient financial planner who will show you your options.

Take your time, think it over, and make a decision. It’s an important one.

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Hospital and more planned in Pocono Township

The new Pocono Medical Center hospital planned in Pocono Township is just one component of a proposed major multi-use development at the former Summit Resort.A 48-bed acute care hospital and a two-story medical office building comprise the first phase of a three-phase development on the former resort grounds along Route 715, near the Tannersville interchange of Interstate 80. The public will have an opportunity Wednesday, Aug. 24 to comment on those plans during a public hearing [...]

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Why the Latest Round of Fed Regulations Should Have Consumers Worried

Why the Latest Round of Fed Regulations Should Have Consumers Worried

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Let the Games Begin: Here’s How to Watch the Olympics Without Having Cable

Contrary to complaints you might be reading on Facebook, the 2016 Olympics in Rio are free to watch.

Unlike a subscription network like HBO, which hides your coveted “Game of Thrones” episodes behind a paywall, NBC is one of a few basic television networks you can watch for free with an antenna.

I’ll pause here a moment to allow baby boomers to laugh at this millennial explanation of how TV works.

If you don’t have an antenna, you can buy one for way less than one month’s cable bill.

But maybe you don’t have a TV because you’re cool like that. Or you’re like me and you have a TV, but you cut the cord because you don’t want cable access in your home.

Either way, you can still watch the Olympics. Here’s how we’re doing it at my house.

How to Watch the Olympics Online Without Cable

Several streaming services have emerged in an attempt to fill in this gap. While they’re cheaper than most cable packages, they’re still not the most attractive options.

For $25 a month, you could sign up for the Dish Network-owned streaming service Sling Blue, which bundles NBCSN, Bravo, USA and some local NBC stations. CNBC and MSNBC are also available on Sling Blue during the 2016 Olympics, according to Time.

If you own a PlayStation, you could sign up for PlayStation Vue, its streaming service that offers access to hundreds of channels. You can get it free for seven days, and then the Access Slim package (55+ channels) costs $29.99 a month.

If you just want a quick look at your favorite event, you can watch streaming Olympics via NBCOlympics.com and the NBC Sports app free for 30 minutes. After that, access is cut until you enter a login from a cable provider.

But there’s a better way.

How to Watch the Olympics Online for Just $4.99

This is how we’re watching the Olympics at my house this year. You don’t have to be too tech-savvy to do it, but you should understand a few basics:

• Every computer or other internet-enabled device (your smartphone, laptop or tablet) has an IP address, a set of numbers tied to your physical location.

• That set of numbers tells websites where you’re located, and can affect the content you see. This is different from geolocation, which you have to give a website permission to access.

Because of my IP address, when I visit cbc.ca/watch (the Canadian Broadcasting Corporation’s site) from Florida, I get this message:

But at home, we have a VPN (a virtual private network) that changes our computer’s address to a Canadian IP address. That way, when we visit CBC’s website, we see what Canada sees:

We chose Canada because we knew CBC offered free streaming Olympic coverage — and because it’s in English and near our time zone.

All of these international networks offer free streaming of the Olympics:

• UK – BBC

• Canada – CBC

• Australia – The Seven Network

• China – CCTV

• Germany – ARD, ZDF

• Austria – ORF

• Ireland – RTE

• Spain – RTVE

Most VPN services charge a monthly fee, and you can unsubscribe anytime.

One of the cheapest, Unblock-Us starts with a one-week free trial and costs $4.99 a month after that.

When you sign up, you’ll follow simple instructions to get set up.

Is This Completely Legal and Safe?

As of this writing, using a VPN service is legal in the U.S., so you won’t face legal repercussions like you’d expect for internet piracy.

Where the line blurs is whether using the VPN violates your internet provider’s Terms of Service or those of the networks you access.

Familiarize yourself with these, so you can make an informed decision before taking any action.

And be sure to vet the site you use to avoid those with nefarious motives.

We chose Buffered after reading positive reviews. This is the only service I have personal experience with.

Lifehacker has recommended both TunnelBear and Unblock-Us, and I would trust its reviews, as well.

Now, I’ve got Olympic coverage and an archive of “Dragon’s Den” to catch up on before the month is over — gotta go!

Your Turn: How are you watching the 2016 Rio Olympics?

Dana Sitar (@danasitar) is a staff writer at The Penny Hoarder. She’s written for Huffington Post, Entrepreneur.com, Writer’s Digest and more, attempting humor wherever it’s allowed (and sometimes where it’s not).

The post Let the Games Begin: Here’s How to Watch the Olympics Without Having Cable appeared first on The Penny Hoarder.

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Crossings Premium Outlets in Tannersville swaps some retailers

As some stores leave new businesses quickly take their place

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5 Industries With Way More Work-From-Home Jobs Than You’d Expect

I’m going to ask a controversial question: Why would you not want to work from home?

I’m able to do it once a week, and I’ve been welcomed into a whole new world. I have coffee just the way I like it, warm pajamas and pup-petting breaks. I move around the house — my desk, my bed, the kitchen counter — as my creative juices flow.

I also save about an hour of my life when I don’t have to look presentable (matching clothes, ugh) or drive to work.

Working from home is great.

FlexJobs, an online aggregator of flexible jobs — seasonal, part-time and remote work — recently surveyed its thousands of postings from 50 job categories.

From the data, it found the five fastest-growing flexible job fields — fields that grew more than 50% in the past year (July 2015 to June 2016).

And we found 10 jobs in these fields you can apply for right now. If your dream is to wear pajamas during the workday, get your resume ready and start applying.

1. Communications

PeopleImages.com / Getty Images

What a broad category, am I right? But that leaves you with immense flexibility.

Whether you’re interested in public relations, marketing or communications in general, there’s an opportunity for you.

Digital Marketing Associate for Student Loan Hero

We’ve written before about a writing job at Student Loan Hero, and now the company needs a digital marketer to help it expand its reach.

Although you need some experience in the marketing industry, this gig’s benefits are unreal — you’ll get unlimited vacation, a $2,000 equipment stipend and an employer match toward either a retirement fund or your student loan repayment!

Marketing Associate for Museum Hack

This company offers unique museum tours, and it needs a marketing associate to help it connect with more museums and tourists.

You’ll work two to six hours a day, or 10-25 hours a week, and earn $12-$15 an hour. You don’t need a degree; you just need solid writing skills and to know your way around social media.

And you should probably love museums!

2. Engineering

nullplus /Getty Images

Kudos to you engineers with your acronym-based language and magical equations. Now you can perform some of that magic from home.

Engineering is apparently a growing field for flexible careers, especially for those in the computer science industry — and if you have the skills, you often don’t need a bachelor’s degree.

Full Stack Web Engineer at Wikimedia Foundation

Wikimedia is looking for someone who “can make 450 million pages a day load smoothly, and do so with UX panache.”

You’ll need development experience with PHP, Node.js, HTML, CSS and “a penchant for traversing structured DOMs and hacking through not-so-structured ones,” (whatever that means). A degree is nice, but not necessary.

Benefits include full medical and dental coverage, a 401(k) with a match, monthly massages and more. The company is based in San Francisco, but the listing notes that telecommuting options are available, so ask!

Junior/Mid-Level Software Engineer at Alliance Reservations Network

This 20-year-old travel company needs a developer for this full-time, 9-to-5 remote job.

You’ll need skills in C#, SQL and .NET programming, but you don’t need a degree. To get some eyes on your resume, you’ll first have to pass a coding test.

3. Government and Politics

People Images / Getty

Surprised to see this category on the list? I was. I always picture dingy cubicles with stark lighting in government buildings, but, according to FlexJobs, more and more government agencies allow for flexible work.

We didn’t find many full-time work-from-home gigs, but plenty of jobs allow for at least some telecommuting.

Digital Campaigner at Demand Progress

As a digital campaigner for Demand Progress, you’ll write emails aimed at engaging the company’s two million subscribers to get involved in campaigns on internet freedom, civil liberties and more.

The ideal candidate lives “for the 24-hour news cycle” and writes clearly and compellingly. You should have at least two years of experience writing online to engage activists, and experience with graphic design, HTML and CSS, press outreach and electoral politics.

Demand prefers candidates who are based in D.C. or New York, but it’ll be flexible if you’re qualified.

Pay for this position is “competitive” and commensurate with your experience. Benefits include health insurance, paid time off and a flexible spending account.

Nutritionist Advisor for Foreign Agricultural Service

If I had a degree in dietetics, food nutrition, food service management or a related science, I’d apply for this six-figure telecommuting job in a second. If this role, you’ll help promote U.S. agriculture around the world while also promoting nutrition and food security.

To be eligible, you must be a U.S. citizen and capable of obtaining a Secret security clearance.  You’ll also be required to travel to underdeveloped countries.

4. Project Management

Sasa Dinic / Getty Images

Project managers work in variety of job sectors from engineering to technology to medicine, helping keep everyone’s work on track.

Project Manager at athenahealth

Health care network athenahealth needs a project manager to manage workflows and train clients on the use of its network services.

You’ll need a bachelor’s degree (ideally a Bachelor of Science) and three years of experience, but you’ll get medical and dental coverage, a 401(k) with company match, paid parental leave and more.

Human Resources Project Manager at Xerox

In this role, you’d oversee internal and external HR projects, doing things like planning schedules, allocating resources, monitoring progress and supporting technical personnel.

This position requires a bachelor’s degree and a recognized project management qualification, plus some experience working in project management within payroll or human resources.

Not quite a fit? The company is hiring for a number of other project manager roles, several of which are remote.

5. Travel and Hospitality

People Images / Getty Images

You might not get to travel the world with some of these jobs, but at least you can work from home. You might even pick up some sweet travel deals, like cruise discounts.

Full-Time Customer Service Agent at Princess Cruises

Princess Cruises is looking for customer service agents to help customers to create the perfect vacation. You’ll need at least one year of customer service experience, preferably in the travel and hospitality industry.

Pay is $10.50 an hour, with performance-based pay raises “on a regular basis.” You’ll also get paid time off, health insurance and a 401(k).

And here’s a great job perk for those of you who love to travel: discounted cruise tickets!

Travel Agent at Options Away

This startup partners with popular travel platforms such as Expedia, Travelocity and CheapTickets to help customers “lock in” the price of their plane tickets while they finish making travel plans.

To become a travel agent, Options Away wants you to have at least three years of experience at a travel agency, with solid communication and computer skills.  

You’ll need to know a lot about ticket processing, flight reservations both domestic and international and using Sabre. Speaking more than one language is a big plus, too.

Your Turn: Will you apply to one of these jobs? If you already work from home, what field do you work in?

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder. After recently completing graduate school, she focuses on saving money — and surviving the move back in with her parents.

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We Love What This Restaurant Does With the Dollar Bills on Its Walls

When you walk into PJ’s Oyster Bar on St. Pete Beach, Florida, you’re greeted by the mascot, PJ — a live parrot in a cage.

Then you see the thousands of dollar bills plastered on every wall, covered in signatures and doodles.

And every one of them has a story.

Restaurant patrons post $1 bills to celebrate birthdays, anniversaries, family trees and first dates.

“There was a couple who had a blind date [here],” remembers manager Beverly McGahan. “They’ve now been married for eight years. They come in every year, sit in the same booth and put their dollar bill up.”

Celebrities know the drill, too.

Former Chicago Bears offensive lineman Tom Andrews signed a dollar in 1985. It’s still there, next to his picture. Singer John Prine left a bill for his fans. Even Batman has left his mark.

Every so often, when the walls are full, staff take down the bills. And that’s where things get interesting.

Where Do All Those Dollar Bills Go?

Over the years PJ’s has collected more than $10,000 from its walls, according to McGahan. The bills may be covered in permanent marker, but the money is still good!

The restaurant donates every dollar to the Ronald McDonald House of Tampa Bay. The nonprofit’s four houses offer a home away from home for families whose children are receiving life-saving medical care in Tampa Bay area hospitals.

The donations have covered the cost of at least 125 nights’ stays, so parents can focus on their children’s recovery rather than on finding and paying for a hotel room.

“We are totally dependent on our community, because we do not get any government funding,” explains Joo Hooi Albritton, manager of the Ronald McDonald House.

“Without them, we cannot care for these families who come to us in the most difficult of circumstances.”

Fortunately, the donations will continue as long as the tradition does at PJ’s.

As the most recent dollar bill on the wall reads, “The story has just begun.”

Your Turn: How are you celebrating National Dollar Day?

Christie Post, social media video producer at The Penny Hoarder, is always finding ways to make stories visual. You can see her live broadcasts on our Facebook page. Give her a shoutout on Twitter @christiepost.

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11 Personal Brand Building Hacks That Will Earn You More Customers Within Two Weeks

If you run an online business, you are probably aware that building a strong personal brand is one of the most powerful tools in your entrepreneurial arsenal.

While most entrepreneurs understand the power behind effective branding, very few understand how to effectively execute and build a reputable personal brand.

If that’s you, don’t worry.

With a few simple tweaks and hacks, you can ramp up the power behind your brand and build a bigger fanbase than you ever thought possible in a few short weeks.

Here’s how.

1. Use professional profile photos

If you want to be taken seriously in the online world, you need to present yourself with an air of professionalism.

I know it may be tempting to use that cute avatar as your profile picture, but it comes off as adolescent and unprofessional.

Invest the time and money into a professional picture, and it will be worth its weight in gold for your personal brand.

Make sure you smile. Why? Because a smile can build trustworthiness.

Here’s how MedicalDaily.com summed up the research on this subject:

Psychologists specializing in facial expressions are still unsure as to whether a human smile is a tool used for communication or an involuntary expression that conveys our emotional state. Researchers from the Max Planck Institute for Evolutionary Biology in Plön and the Toulouse School of Economics have confirmed that putting on an honest smile that is genuine can influence people to cooperate with you by perceiving you as trustworthy.

The professional photo I use on this blog is simple and effective. Shirt. Suit. Tie. And…smile!

In the photo above, I’m wearing a suit. That helps, of course, but it’s not absolutely necessary. To look professional in a photo, you don’t need to be wearing a business suit.

By “professional photos,” I mean the quality and subject of the photo.

I was browsing LinkedIn recently and came across a guy I know to be really professional. He does top-notch work and is the president of his own company.

But his profile photo doesn’t shout professional! In fact, it’s kind of hard to figure out what’s going on in his picture. The quality and subject of the photo don’t speak to his professionalism.

Isn’t there a place for fun photos? Sure, but make sure you’re using them in the right place and at the right time.

I’ve discovered that fun or casual photos can grab people’s attention—like this one on my blog NeilPatel.com.

Here are a few key things to remember:

• When it comes to your profile photo (LinkedIn, Twitter, etc.), make sure it’s a headshot. No one else needs to be in the picture—no kids, pets, or significant others.
• Smile.
• Don’t wear sunglasses.
• Wear something that’s appropriate to your job and position.
• If possible, use the photo services of a professional.
• Use a high-quality photo. Pixelated headshots aren’t effective.

Look, you don’t need to be a good-looking person to have a really high-quality headshot that brings in the leads. All you need is a sharp, crisp, professional photo of your face.

2. Present content authentically

We live in an era of frauds and fakes. If you are not intentional about your presentation, even high quality information may be disregarded or come off as disingenuous.

Whenever you write an article or record a video, speak or write authentically, from the heart. Don’t worry about what people will think.

Whether you swear like a sailor or are as clean-cut as they come, whether you are reserved and quiet or as intense as a Navy SEAL instructor, use your own personality and style whenever you share your message.

People will appreciate the authenticity. Your polarizing nature will create more loyal customers and fans than you can imagine.

3. Create and share killer content on a regular basis

The world is so full of new and exciting content that it’s easy to get left behind (even with an established brand) unless you are regularly creating and marketing high quality content.

A guy like Brian Dean has a strong personal brand:

He needs to be publishing really great content on a regular basis in order to generate leads for his business.

As expected, his content is always top-notch:

Whether you are creating YouTube videos, podcasts, or blog posts, you need to keep your head in the game and crank out killer content on a regular basis.

What’s “killer” content? Here are a few pointers:

• Well researched—back up your claims with data.
• Unique—don’t repeat what everyone else is saying.
• Longform—lengthy content gets more social shares, more backlinks, and higher search engine results.
• Genuinely useful—solve problems; relieve pain; provide answers.
• Grammatically correct.

4. Stay consistent on social media

The average person in the Western world spends around 3 hours on social media each day.

If you don’t build and maintain a high profile social presence, your brand will suffer a slow but certain demise.

Gary Vaynerchuk’s social media presence is on point. He’s always publishing content, and it’s always good.

Social media is so prevalent in our modern culture that it’s become an absolute necessity for any aspiring entrepreneur to master the art of social media branding.

How do you remain consistent on social media? Here is a schedule you can follow:

Twitter: 5 times a day

LinkedIn: 1 time a day

Google+: 1 time a day

Facebook: 2 times a day

Branding isn’t complicated. It’s simply a matter of deciding what your jam is, knowing it, and being all about it, everywhere you are.

5. Tell a compelling story

People love stories—it’s part of our DNA.

We have a neurological response to storytelling:

The effect of a story is so powerful that it’s impossible to ignore.

James Clear, a popular blogger, explains his take on stories:

In the end, my work ends up being one-part storytelling, one-part academic research, one-part personal experiment. It’s a colorful blend of inspirational stories, academic science, hard-earned wisdom.

His stories are now part of his personal brand. He uses storytelling to introduce the lessons he teaches on his blog.

A story? About a tough job? And the Tour de France? Yes, please.

And while the days of listening intently to tribal leaders tell tales of struggle and victory while huddled around a campfire on the savanna are over, we still connect with stories in the same way we did thousands of years ago.

If you want to effectively build your personal brand, you have to center everything around a story.

And not just any story, your story.

One of the quickest ways to grow your brand and your business is figuring out how you can craft and share your story in a way that’s as relatable and authentic as possible.

6. Be intentional in positioning yourself

How do you want to be known in your niche?

Are you the friendly expert? The sarcastic a-hole? The mentor full of tough love?

Think about people with strong and recognizable personal brands such as Tucker Max (the sarcastic a-hole), Tim Ferriss (the friendly expert), or Garrett White (the tough love mentor).

All of them decided how they wanted to position themselves within their niches and then built their brands around that.

If you want to succeed in your entrepreneurial endeavors, you’ll do the same.

You have to own it. Stick with it. You’re building an identity.

Maybe Tucker Max likes his identity. Maybe he doesn’t. But he made the bed, and now he has to lie in it.

Selena Soo positions herself as a publicity and business strategist for experts, authors, and coaches:

Every email, webinar, ad, and update is focused on that one point.

Brendon Burchard is a passionate coach who has positioned himself using the “Live. Love. Matter.” slogan. His positioning has allowed him to create a powerful presence that people don’t forget.

7. Host hangouts and reply to comments

One of the quickest and most efficient ways to grow your personal brand is to connect with your audience.

Whether you are responding to comments on your blog, hosting weekly AMA Hangouts, or annual live meetups, getting involved with your audience and building rapport will put you on the fast track to a massive and recognizable personal brand.

8. Create a recognizable logo

The human brain processes logos in around 13 milliseconds, faster than the blink of an eye. I bet you recognize these logos:

A recognizable and high quality logo is essential to your visual marketing and personal brand.

Think about brands like Pepsi, Amazon, Google, and PayPal.

All of them have established strong logos people instantly recognize. Whether you love them or hate them, you cannot look at the Pepsi logo or see the colorful letters of Google without immediately acknowledging the brand:

Use the power of the human brain to your advantage, and craft a high quality logo that will increase your recognition.

A personal brand logo creates a visual hook for people to pair with your brand. If you are trying to brand yourself using only a title, your name, or a slogan, it won’t be as effective.

The human brain uses a variety of sensory inputs to create a lasting memory—sound, motion, color, smell, and imagery.

By creating a colorful and unique logo, you’ll be able to develop visual imagery that sticks in people’s minds.

Think about Jimmy Fallon for a moment. He has a strong personal brand and uses his circular logo and blue moon imagery to reinforce this in people’s minds:

Rachael Ray, the celebrity cook, has a fun, light, and memorable logo featuring her name:

9. Create a brand tag line

Another great way to build your brand recognition is to create a powerful and easy to remember tagline or mission statement.

“Open happiness.”

“Stay fresh.”

“The few, the proud, the ____.”

“Let’s go places.”

Even without me telling you the brand names, you’ve probably recognized the brands of Coca-Cola, Subway, the U.S. Marines, and Toyota.

Brands try to harness a feeling, an emotion. That’s why a brand that makes automobiles can have a tagline with a visceral and deep-seated impact.

That’s the power of a well-written tagline.

Even in a so-called “boring” industry, Microsoft tries to be inspirational.

A personal brand has even greater potential for inspiration and motivation.

10. Start a podcast

If most of your work is centered around the written word, starting a podcast is a fantastic way to build a stronger online personality and establish a more powerful brand.

Podcasts are a rawer and unfiltered medium for sharing information, and if you can grow them and market them well enough, they can also be a fantastic strategy for monetizing your brand.

11. Start speaking at events

One of the best ways to establish authority of your personal brand is to speak at events or conferences:

Although speaking at TEDx or The World Domination Summit may feel out of your reach right now, start with smaller gigs, and build from there.

Getting up in front of a live audience, while being vulnerable and not having the ability to edit mistakes or correct your speeches, is a powerful way to build more authenticity into your brand.

Speaking takes practice. Many people are afraid of public speaking, but I think everyone should try it at least once.

Who knows? You may find that it’s something you love and are good at!

Conclusion

You’re now equipped with 11 powerful tips. These hacks work.

If you are willing to take action, you can grow your personal brand at an obscene rate, earning more customers and building a loyal following quicker than you ever thought possible.

It will take hard work and sacrifice on your part, but I promise that if you do what you need to do and use these 11 tips, your brand and your business will never be the same.

A personal brand is a powerful thing. How have you used your personal brand to gain more clients and customers?

Source Quick Sprout http://ift.tt/2azK29H

Questions About Grocery Delivery, Travel Journals, Insurance Agents, and More!

What’s inside? Here are the questions answered in today’s reader mailbag, boiled down to summaries of five or fewer words. Click on the number to jump straight down to the question.
1. Grocery delivery with small fee
2. Everyday carry?
3. Handling pushy insurance agent
4. Old bank account emergency fund?
5. Emergency fund
6. Constant arguments over money
7. Preparing for interest rate rebound
8. Survivalism and frugality
9. Is laundry service worth it?
10. Financial independence from wealthy parents
11. Best notebook for travel journal
12. Low cost of living retirement

As I write this, I’m sitting in a quiet hotel room with my family. They’re all still asleep, as it’s very early in the morning. We’re in the midst of our family vacation, currently in Toronto.

I’ve learned that on a typical average night, my youngest son and I seem to need the least amount of sleep in our family. I can already tell from his stirrings that he will be the next one to wake up.

It’s just a quiet, peaceful moment. I wouldn’t trade it for anything in the world.

Let’s dig into a few mailbag questions before he wakes up and wants to play.

Q1: Grocery delivery with small fee

In my area the local grocery store is rolling out a delivery service. They charge you 5% of your total ticket (min. $20 purchase) and they deliver it to your door within a certain radius of the store. I’m figuring that doing this will be worth it for me so that I can avoid impulse buys. I just send them my grocery list and they deliver. Impulse buys are more expensive than the fees I think. What do you think?
– Adam

I don’t think this is a particularly bad bargain for a service, myself. In fact, I wouldn’t be surprised if they raise the rate in the future.

Let’s say, for example, that I have 40 items on my grocery list. If I got into my car, went to the store, bought all of those items, checked out, drove home, and unloaded the car, it would easily take me an hour and a half.

Let’s assume that I could add all of those items to my online cart and pay for it by credit card in 30 minutes. An hour later, they deliver the groceries to my front step.

I’m basically swapping that 5% fee for an hour that I could spend doing something else. If my grocery bill is, say, $150, that’s $7.50.

Is $7.50 worth it for an hour of free time? If it’s genuinely valuable free time, yes. If it’s an hour channel surfing or reading pointless websites, no.

I’m generally willing to spend $7.50 for an hour of true quality free time on occasion, particularly when my life is in a situation where quality free time is hard to come by. It has a lot to do with a person’s life situation, I think, as I don’t believe (for example) my parents would make the same trade.

Q2: Everyday carry?

What does your EDC look like these days?
– Harry

Well, as I mentioned at the top, I’m sitting here in a hotel room with my “portable office” backpack beside me and all of my usual stuff on me, so let’s have a look.

In my pockets, I carry my keys, a money clip, a few cards held together with a rubber band (the band provides great friction to keep the cards in place), my cell phone, a pocket notebook, a Uniball 207 Ultra Micro), and a Spyderco pocket knife. I’m not sure which model of Spyderco it is (I think it’s a Tenacious) – I bought it at a pretty good discount at a sporting goods store because the color of the handle wasn’t selling (it’s purple) and I really don’t care about color.

In my backpack, I usually carry my laptop and laptop charger (which I’m using right now). Still in my backpack, you’ll find a backup Thunderwire charger, a backup micro USB charger, my Kindle (which honestly moves between my bedside stand and my backpack quite often), some extra pocket notebooks and pens of the same type as what’s in my pocket, two granola bars (the number varies a lot), a small bottle of hand sanitizer, a toothbrush and some toothpaste, an empty water bottle, and a drawing that my daughter gave me several days ago.

That pretty much covers it. My backpack goes with me any time I suspect there’s even half of a chance that I might work away from home.

• Related: How to Use a Simple Pocket Notebook to Change Your Life

Q3: Handling pushy insurance agent

There’s a guy in town who just opened an insurance office and he’s trying really hard to get business, which is cool. The problem is that he pushes WAAAAY too hard for sales. I made the mistake of listening to his pitch once and now he seems to practically follow me around town asking me if I’m ready to sign off on that policy. It feels like I see him several times a week and he’s always almost immediately asking about the policy. How do I politely get him to back off? I might get a life policy but not from this guy.
– Dennis

I would simply take him aside and tell him that he’s being too pushy and that the pushiness is convincing you not to buy a policy from him. This is very hard for some people to do, but it’s a conversation that really needs to happen in some form.

If you’re uncomfortable doing this, find a way to send him an anonymous note. Drop it by his office or in his mail slot and clearly explain that some members of the community are being driven away by his self-promotion practices.

The self-promotion isn’t going to go away unless he’s made aware of the fact that his self-promotion is getting under the skin of his potential clients. As long as he continues to believe that such tactics are helpful to his business, he’s not going to stop with them.

I think that avoidance of such situations almost always backfires. It’s convenient for you in the moment, but it usually ends up making you look pretty bad in the long run. Others see the avoidance and you’re the one that comes off looking rude.

Q4: Old bank account emergency fund?

Several years ago, I switched to a new bank when I moved. I left the old one open with a few thousand in the checking account in case I forgot to switch over any automatic withdrawals and nothing has touched that account in years.

My husband thinks we should just close the account and move the money over to our main accounts. I kind of like having it there as an emergency fund of last resort.

Do you have any thoughts on the matter?
– Carrie

I’m completely in favor of the concept of an emergency fund, but I’m not sure this is the right situation for one.

First of all, I’d ask whether or not that money is earning any interest at all. If it’s not earning any interest at all while it sits there, you should move it into a savings account or some other vehicle where it can earn at least a little interest without losing liquidity. We don’t live in an era of high-interest rates on savings accounts, but 1% is better than 0% on several thousand dollars. $5,000 in a 1% savings account earns $50 the first year, $50.50 more the second year, and so on; leaving it in a 0% interest checking account isn’t wise.

Now, if your question is whether to leave the money in this particular remote bank, that’s a completely different can of worms. I’m not entirely sure what your husband’s objections are to this account specifically. Is it due to the fact that the bank itself is remote so you don’t have easy access to a physical location? If that’s the case, what might either one of you need to do that requires a physical teller?

Unless there is a clear situation where this bank is not useful, I don’t see any problem in leaving it there provided you move it to an account that earns a better interest rate (while still being easy to access).

• Related: The Best High-Interest Savings Accounts Online

Q5: Emergency fund size

I am a single mother (husband died in auto accident) with a seven-year-old son. I make enough for us to get by. Our house is paid for thanks to insurance settlement. No debts. My question is how much of an emergency fund should I have? Realize that I need to have some emergency fund but how much?
– Bonnie

If I were a single mother with a seven-year-old son, I would try to have about three months of living expenses saved up in a savings account so that if I ever lost my job, I could take care of things for a while without disrupting my son’s life while I found another job.

The less of an emergency fund you have, the less time you have to find a job without significant disruptions to your child’s life.

I am basing the three-month number on this article from Time Magazine where they estimate that an average job search takes a little over six weeks – a month and a half, in other words. Given your relatively tenuous situation in a single-income household, I feel it’s safe to double that here, particularly since emergency situations often seem to come in groups. I would actually add even more if there were additional children in the house.

• Related: Figuring Out the Size of Your Emergency Fund

Q6: Constant arguments over money

My wife and I argue about money almost every single day and I don’t know how to get it to stop. We are trying to save up for a down payment and we are making progress. The honest truth is that we both make spending mistakes and we both blame the other one for their mistakes as though it’s the other one that’s keeping us from the goals. Every time we try to talk rationally about it one of us says something even slightly blameful and we’re right off to the races again. I don’t know what to do to get things back in a good place.
– Samuel

There are a lot of approaches to this situation. It really depends a lot on your individual personalities.

One way to approach it is to have money discussions in writing, perhaps over email. This gives you the time to read through what you’re writing and ask yourself whether the things you’re saying to each other are really fair or are really the things you want to be saying to one another.

Another approach is to simply use “time outs” frequently during the conversation. If one of you feels that the other has said something that’s going to trigger an emotional response, simply pause the conversation right there before it gets going. Simply say, matter of factly, that the thing your partner just said is something you feel is unfair and that, instead of arguing, we’re just going to put this on the table for a while.

If those things don’t help, you may want to seek out marriage counseling. Most marriage counselors are simply conversation facilitators. They help you figure out how to communicate with each other without anger, something that many couples don’t quite have figured out before they get married and don’t figure out during marriage, either. It’s a vital skill to have, and it can make the difference between a successful marriage and divorce.

Good luck.

Q7: Preparing for interest rate rebound

It’s my belief that interest rates are going to start going up in the next year or two. Are there any good financial moves I can make right now to take advantage of that?
– Everett

Before I answer this, let me make it clear that I am not necessarily convinced that interest rates are going to rebound significantly in the next few years. While I believe our economy has recovered significantly since 2008, I don’t think it’s recovered to the point where interest rate hikes won’t slow it all down very quickly.

That doesn’t answer Everett’s question. What would I do if I believed that interest rates were going to go up in the next month or two?

First of all, I’d refinance any and all debts that I have. I’d refinance my student loans. I’d refinance my home mortgage. I’d even try to refinance my car loan, if possible. The goal is to lock in the lowest interest rate possible, even if that involves reducing the term of the loan and seeing small increases in the monthly payments. Try to get out of any variable interest-rate loans that you might have and get everything into fixed-rate loans.

Second, if I were on the path to home ownership, I would accelerate it a little, even if that meant buying that first home before saving up to 20%. As soon as there is definite word that interest rates are going up, home mortgage rates are going to go up, too. Getting a mortgage without a 20% down payment will usually mean that you have to get mortgage insurance, which is effectively adding another percentage point to your interest rate, but if waiting means adding a percentage point to your interest rate and it’s one that you can’t remove by paying off some of your mortgage, you’re better off making your move sooner rather than later.

As interest rates go up, so will the interest rates offered on bank accounts. I didn’t realize how good things were in 2007 when online banks were offering interest rates in the 5% to 6% range. At that rate, savings accounts return almost as good as the stock market while also being FDIC insured and without any risk of losses. Savings accounts become a very good bargain when their rates creep above 2% or 3%.

Those are moves I’d look into if interest rates go up again.

Q8: Survivalism and frugality

My husband and I aren’t really “survivalist” types, but we both feel like modern life is kind of… fragile. Lots of people have no idea how to grow their own food or take care of themselves and if something happened that caused widespread crisis, like say a pandemic disease or something, a lot of people would be in trouble just because they couldn’t eat or grow their own food.

Because of that, my husband and I practice a lot of things that we think would help us in such situations. We have a big garden, can a lot of our own foods, have a fire pit and many months of firewood, have solar panels on our roof, and so on.

It’s not hard to notice that a lot of the things we’re doing are also making our life inexpensive. We basically don’t have an energy bill at this point. We get our own water from a well with a pump on it. We produce most of our own food. We have very little expenses outside of property taxes and basic clothes and the cost of our van.

I know that people who identify as “survivalist” and people who identify as “frugal” often are politically at odds with each other (at least that has been my experience in other forums), but I think both groups could learn a lot from each other. I feel like we are practicing frugality while preparing for the future.

What do you think?
– Eileen

I agree completely. I think that the skill overlap between people who think of themselves as “frugal” and those who identify as “survivalist” is significant, and if they can keep political issues out of the forum, there is a lot that they can help each other with (I don’t think they’re entirely politically exclusive, either).

I have a friend who would describe himself as survivalist. He gets his water from a well on his property. He has a solar panel system on his roof with panels that he knows how to install himself, along with extra panels in his garage for replacements. He has probably a year’s worth of food in his basement. Although it’s never come up, I’m fairly sure he has weapons and gear for hunting for food. He’s got a huge garden. He’s basically well prepared for major societal changes, should they happen.

I don’t necessarily agree with some of his politics, but we often have discussions (usually via Facebook Messenger) that revolve around various strategies. I have a wider array of gardening knowledge than he does, so he sometimes picks my brains for things like where to get non-hybridized seeds and what varieties work well in an Iowa climate without disease. I asked him tons of questions about his solar panels when Sarah and I were considering them for our roof (we ended up deciding they weren’t cost-effective right now, but they’re temptingly close).

You can put political differences aside to talk about strategies for saving money and removing the shackles of bills from your life. It’s a big part of the reason why I try to keep politics away from The Simple Dollar – people of all political stripes can find use in strategies for saving money, building a better career, and putting themselves in a better long-term life position.

Q9: Is laundry service worth it?

There’s a local laundry service that will pick up laundry on your doorstep, wash it, fold it, and return it to your doorstep for $2 per pound, minimum 5 pounds. I’ve been trying to do the math on this to figure out if it is worth it. Thoughts?
– Fred

This question reminds me a lot of the first question in this post. What you’re really paying for here is time.

From this website, I’d estimate that the weight of a week’s worth of laundry for a single person is on the order of 15-20 pounds and probably half that for a child. So, for my family, a week’s worth of laundry is probably getting close to 50 pounds of clothes, sheets, towels, and so on.

If I were to pay $2 a pound for that service, it would cost me $100 to have them do all of the laundry in my house for a week.

So, the question becomes: how many loads of laundry is that, and how much time and money would it take to do it myself? My experience tells me that this would add up to a load of towels and washcloths, a load of bedsheets, a load of colored clothes, and a load of whites. This would end up costing about $8 or so in total energy use, soap, and water, and would take about two hours to wash, dry, and fold all of the clothes and other items.

So, in this case, my back-of-the-envelope math tells me it would take $92 to save two hours of work. This is not something I’d want to do in our current life situation.

If I were single, though, the equation would change. I’d probably still be doing two loads per week and it would end up eating about an hour of my time. The cost would be about $4. However, I’d only have about 15 pounds of laundry, so the cost would be $30. That means I’m spending $26 for an hour of time saved. This still isn’t worth it to me, but it’s closer.

I just don’t think laundry delivery services are worth it at those prices for most people in normal situations.

Q10: Financial independence from parents

I am a single woman aged 32. I have a solid career in marketing where I make approx. $70,000 per year. This is enough to pay my bills and have a nice life.

Since I reached age 21, my parents have given me $1,000 each per month as a gift, totaling $24,000 a year.

Though I believe I am perfectly capable of living without that money, I find it to be very useful at times. It permits me to travel and to own a much nicer car than I would otherwise own. While I want to be truly “independent” I also don’t want to give up those things.

My parents have stated that they plan on continuing the gifts until they pass away, at which point I will receive a full inheritance as I am their only child. They are very well off but not quite in range of the estate tax.

Given this situation, do you feel that I am financially “independent” while receiving these gifts and knowing that a large inheritance is coming? Does it make sense to try to make them stop giving me money?

I want to feel like I am truly independent, but at the same time I value that money.
– Meghan

My feeling is that if you want to establish true “independence” from your parents, then you should put all of the money they give you into savings for the future and then live off of what’s left. Your actual retirement savings should come out of the “leftover” portion of things.

That probably seems harsh, but I think the best rule of thumb for independence is that your life would almost entirely go unchanged if that income stream completely vanished.

Right now, you’re living a lifestyle that would change if the income stream from your parents vanished. You wouldn’t be able to afford the travel that you take or the cars that you drive. Your current lifestyle is dependent upon money coming in from your parents, because without it you wouldn’t be able to have those things.

You need to decide for yourself how important financial independence really is for you in comparison to the nicer car and the travel. Right now, it feels like you want to have both of them, but they’re incompatible with each other (unless you make some other changes in your life).

Q11: Best notebook for travel journal

I loved your recent ideas regarding a travel journal as souvenir and taping things in there as I find them like menus and napkins and stickers and ticket stubs. Do you have a particular type of journal that you prefer for travel journals?
– Diane

I don’t really have a brand that I prefer. In general, I don’t like journals with really thin paper for the pages as they don’t hold up to having things taped or stuck to the paper. I also don’t like journals with really tight binding – I want to be able to add items to it and still largely be able to close it.

My “budget” choice would definitely be a composition book with graph paper, which you can get at almost any office supply store and many department stores. In fact, that’s what my children are using on this trip for their travel journals.

I am personally using a Baron Fig notebook for my travel journal. I can’t find the exact model on their website, but it’s a softcover notebook measuring about five inches by eight inches that has a dot grid on the inside. I like dot grids because it makes it easy both to write neatly and to draw on pages.

Honestly, almost anything will work for a travel journal. I’d suggest using an ordinary composition book if you’re unsure what to get.

Q12: Low cost of living retirement

I currently live in San Francisco which has a very high cost of living. I am saving about 80% of my income and plan to eventually quit and move to a low cost of living area, likely a Midwestern college town since I grew up in one.

I know that the easy formula is to just compare cost of living numbers for San Francisco to the target city I’m looking at to figure out how much less I’ll need per year thanks to cost of living, but is there anything I’m overlooking in that comparison? Is there a noteworthy factor that doesn’t go into cost of living data?

Thanks in advance!
– James

Cost of living data is almost always an approximation of what the actual cost of living will be like in each area. It’s impossible, for example, to find the exact same house in Iowa City, Iowa as you would find in San Francisco with the same access to services and so on.

From what I’ve seen in general, I think that most “cost of living” indexes slightly underestimate the actual difference between the places. That’s because many of the assumptions rely on having the same exact lifestyle in each place, something I don’t find to be true at all.

From my own experience, the smaller the city/town you live in, the less pressure there is to spend money and the more culturally acceptable and normal and even expected it is to be frugal. This isn’t an absolute thing and it varies a lot from community to community, of course, but those kinds of cultural difference simply aren’t included in cost of living data.

Got any questions? The best way to ask is to follow me on Facebook and ask questions directly there. I’ll attempt to answer them in a future mailbag (which, by way of full disclosure, may also get re-posted on other websites that pick up my blog). However, I do receive many, many questions per week, so I may not necessarily be able to answer yours.

The post Questions About Grocery Delivery, Travel Journals, Insurance Agents, and More! appeared first on The Simple Dollar.

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10 Hilarious Fails Every Frugal Mom Will Understand

Sometimes saving money isn’t as simple as you want it to be — especially when you’re a mom.

Your kids may think your creative money saving schemes are embarrassing, but you know just how genius your frugal living techniques actually are, right?

OK, so maybe you go a little overboard sometimes…

1. When you try to save money by hopping on the DIY train.

Nailed it.

2. When they tell you the Tooth Fairy didn’t leave enough money.

Next time they’re getting one quarter instead of two.

3. When you have to recycle party favors because, well, balloons are expensive.

Happy 21st, son!

4. When you insist upon military showers.

I hope they’re done by the time the water heater “accidentally” gets shut off!

5. When you refuse to buy more ketchup because you KNOW there’s still some in the bottle.

It was just hiding.

6. When the kids are embarrassed, but you know you saved a ton of money by stocking up on hotel toiletries.

No shame.

7. When they’re 16, but you still make them order off the kids’ menu.

You don’t have to keep the toy, OK?

8. When “shopping” means “in your sister’s closet.”

Back-to-school savings have never been easier.

9. When you cut their hair at home.

You look great, honey! I promise.

10. When you have to start cooking at home instead of going out.

Don’t worry. This will get easier.

Your Turn: What are your favorite #frugalmomfails? Share them with us on Facebook, Instagram and Twitter!

Kelly Smith is an editorial intern at The Penny Hoarder and a senior at The University of Tampa. While she may not have any human children, she’s the mom of a five-month-old Shar-Pei named Wrigley.

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Spain tops list of Brit's favourite retirement hotspots in 2016

Moira O'Neill

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Spain has come top of a poll to reveal Brits’ most popular overseas retirement destinations. But the research by financial services company Retirement Advantage found America came second in the rankings, followed by Australia.

Spain has come top of a poll to reveal Brits’ most popular overseas retirement destinations. But the research by financial services company Retirement Advantage found America came second in the rankings, followed by Australia.

However, the decision to leave the European Union has led to a ‘Brexit effect’ that makes less likely people will move abroad.

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Selling Your Home? This Trend in Real Estate Could Save You Thousands

Michelle Brown sold her ranch-style home in San Antonio this summer for $355,000.

Instead of paying $21,300 in realtor fees — 6% of the purchase price, which is how realtor fees are traditionally calculated — Brown paid just $13,150, for a savings of more than $8,000.

How did she do it?

She went with a flat-fee realty company.

The company Brown worked with, Redefy, charges a flat rate of $2,500 to sell a home. She still had to pay the buyer’s agent roughly 3% of the purchase price, but she saved thousands of dollars she would’ve also had to pay her seller’s agent.

A handful of flat-fee realty companies have popped up around the country in the last five years. Their models vary, but they’re all essentially rewriting the rules for real estate commissions and saving consumers thousands of dollars in the process.

These rogue agents say technological advances have made it easier to buy and sell homes, while realtors — especially seller’s agents — are still making the same amount of money for doing less work.

Brown was initially skeptical. How could she save so much money? She said she asked thousands of questions before deciding to work with a Redefy agent.

“I’m one of those people that, if it sounds too good to be true, it probably is,” she said.

Ultimately, the proof was in her bank account. When the sale closed, all she paid to her seller’s agent was $2,500.

How Does Flat-Fee Realty Work?

To understand what’s different about flat-fee realty companies, it’s helpful to first consider a traditional real estate transaction.

Typically, the person selling the home is on the hook for paying all realtor fees, which usually total roughly 6% of the purchase price. The seller’s agent and the buyer’s agent split that commission.

Here’s an example: Under the traditional model, a home that sells for $100,000 will cost the seller $6,000 in total realtor fees.

The seller’s agent, or the person who puts the house on the market, takes and post pictures and hosts open houses, gets $3,000. The buyer’s agent, or the one who takes buyers to open houses and showings, gets $3,000.

Flat-fee realty throws that formula out the window.

Some companies, like Redefy, offer a flat-fee commission on the seller’s side of the equation only.

If you use a Redefy agent to sell your home, like Michelle Brown did, you’ll pay them $2,500 instead of 3% of the purchase price. You’ll still pay the buyer’s agent the traditional 3% commission.

Other companies, like Denver-based Trelora, offer flat-rate commissions on both sides of the equation. (In case you didn’t catch this, Trelora is “realtor” all jumbled up.)

If you use a Trelora agent to sell your home and the person who buys your home is also working with a Trelora agent, you pay the company $2,500 total — that’s it. That flat fee covers both sides of the buyer/seller equation.

If you use Trelora to sell your home but your buyer is working with a traditional agent, you pay the agency $2,500. Trelora will negotiate with that other agent to get their commission down to $2,500, for a total of $5,000 in realtor fees.

Yes, some buyer’s agents walk away when they learn that they’ll be getting $2,500 instead of 3% commission. But others don’t. Nearly 70% of Trelora customers have only paid $2,500 to the buyer’s agent.

Most people don’t realize when you’re buying or selling a home, everything – even commission — is negotiable, says Joshua Hunt, who founded Trelora.

Hunt said it differs by agent, but typically buyer’s agents who accept the lower commission don’t want to risk losing their buyer (and future referrals from that person) or risk their buyer losing the house. They figure that some money is better than nothing, he added.

Here’s an example of the savings you could see with Trelora. Your house sells for $500,000. Under the traditional 6% commission model, you’d be forking over $30,000 in total realtor fees. But with Trelora, you’re paying $2,500 or $5,000 — either way, you’re saving more than $20,000.

For now, Trelora has offices in Colorado, but Hunt says he hopes to expand the company nationwide in the next five to seven years.

How Do These Realtors Make Money?

Andres R / Getty Images

Before founding Trelora, Hunt worked as a top-producing agent for 20 years under the traditional commission model. He says he realized that there was room for innovation about four years ago.

“Technology has advanced in the world and yet it has not yet been infused into real estate,” he said.

“If you look at property values rising, realtor fees continues to rise. Houses that were selling for $200,000 are now selling for $400,000. People are paying twice as much for the same type of service and really less work for the agent because of technology.”

Trelora agents close 300 sales per year. In comparison, a traditional real estate agent closes between six and eight deals per year, Hunt said.

The company’s agents are able to close that many sales because they specialize in just one aspect of the real estate transaction.

Instead of expecting agents to be experts in everything from marketing to contract law, Trelora splits up those responsibilities. It has field agents who show homes and work with buyers and sellers in the field, as well as office-based employees who specialize in marketing and contracts.

The same is true for Redefy, which was also founded in Denver but has since expanded to more than 25 other cities, including Portland, Las Vegas, Phoenix, Austin and Orlando.

“It’s a very efficient model in that, rather than spreading one person throughout all these things, we’ve put in place experts for each stage,” said Mike Perry, a spokesman for Redefy.

Flat-fee realty could be coming to a city near you soon — Redefy hopes to be in 53 major and mid-major markets in the near future, Perry said.

Redefy’s founder Jordan Connett was surprised when he realized that, although it’s much easier for a seller’s agent to list and sell a home today than it was in the past, they still make the same commission rate — despite doing less work.

The National Association of Realtors found 92% of people searched for their new home online, so Connett wondered why realtors still held open houses and printed out flyers. (Redefy does neither of these things.)

He also realized a percentage commission structure wasn’t fair to consumers. It may take the same amount of work to sell a $500,000 home as it does to sell a $200,000 home, but the realtor gets a much bigger payout with one than the other.

In other words, consumers were paying more money for the same amount of work.

Redefy’s founders conducted tons of research when deciding what flat fee would save customers as much money as possible while still allowing Redefy agents to make a living. They landed on $2,500 and it’s proved to be the “magic number,” Perry said.

Real Estate of the Future

Jamie B / Getty Images

The two companies have faced some resistance from traditional realtors, who are understandably upset that clients can now pay thousands of dollars less by taking their business elsewhere.

Both Perry and Hunt say they think part of the skepticism is also because the concept is so new. Eventually, they say, it will just be the way homes are bought and sold.

“We are building a path that has never really been built,” Hunt said.

“But consumers say over and over, ‘It’s about time. This makes sense. This is awesome.’ Who wants to pay $30,000 when you can pay $2,500?”

Your Turn: Would you ever use a flat-fee realtor?

Sarah Kuta is an education reporter in Boulder, Colorado, with a penchant for weekend thrifting, furniture refurbishment and good deals. Find her on Twitter: @sarahkuta.

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