Non-Spouse IRA Beneficiary Rules – Avoid These Costly Mistakes

My old college roommate lost his younger brother to cancer and left my roommate as the beneficiary on his retirement account.

When I heard the news, I was in disbelief. There’s no way that someone so young could pass away, could they?

I had heard that my former college roommate’s younger brother was sick, but just assumed that he would get better.

When I heard that he had passed away at the age of 34, I was in complete shock. Even to this day, I can hardly believe that he’s gone. He was young, athletic, and his heart was bigger than his smile. It just didn’t seem right.

A few months had passed, and my buddy reached out to me to inform me that his brother had named him the beneficiary of his retirement account, his 401(k). He wasn’t sure what to do, so was seeking my advice.

It’s common that we help people take care of the passing of IRAs and other investment accounts to the rightful beneficiary. It was different in this sense since the beneficiary was his younger brother. It’s one of those articles that pains me to write it, but I know others will be going through this experience.

Here’s what you need to know if this happens to you.

Non-Spouse IRA Beneficiary Rules

The situation that my friend has experienced with inheriting his brother’s 401(k) plan is referred as a “non-spouse beneficiary”. This is a term that the IRS uses to describe a retirement plan, such as an IRA or a 401(k) that is ultimately inherited by someone other than the decedent’s spouse. It’s a special classification because a non-spouse does not have all of the inheritance options that a spouse does. For this reason, there are special rules that apply to non-spouse beneficiaries.

First, there are no rules that require that a retirement plan must pass to a spouse upon the death of the owner. And certainly in cases where the decedent is not married, a retirement plan will necessarily pass to a non-spouse. In fact, it’s probably a more common outcome than is generally assumed.

When retirement money is inherited by a spouse, he or she can generally roll the account over into their own retirement plan, and there are no immediate tax consequences.

But a non-spouse is basically limited to three options:

1. Take an immediate distribution – You will have to pay ordinary income tax on such a distribution, but there will be no 10% penalty for early withdrawal if you are under 59 1/2.
2. Retain the decedent’s retirement account – You do have this option, but it will require that you make required minimum withdrawals over your life expectancy. We’ll get into this topic in the next section.
3. Create an inherited IRA – This type of account will remain in the name of the decedent, and the funds can continue to grow on a tax-deferred basis. You can use this account for either an IRA or 401(k) plan. Though you will be creating a brand-new retirement account, you will not be able to make contributions into that plan.

If you set up an inherited IRA, the money must move directly and immediately from the existing account, into what is known as a trustee- to-trustee transfer. That means that you won’t be able to take receipt personally of distributions or rollover balances from the decedent’s retirement plans, and then roll them into another IRA as you can with your own retirement accounts. The money must always move directly from the decedent’s account into the new account.

Each Option Must Include Required Minimum Distributions (RMDs)

Whatever option you choose as a non-spouse beneficiary, you will be have to take required minimum distributions (RMDs) from the plan. Exactly how this will be set up, and how much you must withdraw, will depend upon whether or not the decedent had already begun taking RMDs when he or she was alive.

At a minimum, you will have to begin taking distributions that are based on your life expectancy. The IRS actually provides life expectancy tables but it’s a fairly complex process, and it will almost certainly require professional help in order to establish one.

If the decedent had already begun taking RMDs, which everyone is required to begin taking at age 70 1/2 with all retirement plans except Roth IRAs***, then the amount of your RMD will be the amount of the decedent’s RMD in the year of his or her death.

***(Please note: This discussion of non-spouse beneficiary rules applies to inheriting traditional IRAs and employer sponsored plans, like 401(k)’s only. Roth IRAs have different rules, and much different tax consequences. As such, I may cover non-spouse beneficiary rules in regard to Roth IRAs in a separate article.)

After the year of the decedent’s death, or if the decedent had never begun taking RMDs, the RMDs will be based on your own life expectancy.

The RMD rule applies to both inherited 401(k) plans or a traditional IRAs.

You will have to pay ordinary income tax on the RMDs, but there will be no 10% early withdrawal penalty, even if you are not 59 1/2 or older.

The Beneficiary is a Minor – Are the Rules the Same?

This is another common outcome of inherited retirement plans, since children – including minor children – are frequently named beneficiaries on all types of retirement plans. This can sometimes happen even when the decedent is married, but is extremely common in divorce situations.

It is perfectly legal to name a minor as a beneficiary on a retirement plan. But since the minor is a child, he or she will lack the legal capacity to manage the account. For this reason, if you choose to name a minor child as a beneficiary to your plan, you should also create a custodial arrangement.

This is an arrangement in which you select a custodian for the account under the Uniform Gift to Minors Act (UGMA). That law enables a named custodian to have the authority to manage the money in the retirement plan and to do so without court supervision.

What if a child inherits a retirement plan that does not name a custodian? This is certainly a complication. In such a situation, the parents of the child will have to petition the court to themselves be named custodians of the retirement plan. But if the child has no parents – which could certainly be the case if you’re leaving the plan to one or more of your own children – the account will have to be managed by a court appointed guardian, who will also be supervised by the court.

Potential Non-Spouse Beneficiary Complications

Non-spouse beneficiary arrangements come with their own set of issues. But there are circumstances that can cause additional complications. Perhaps the most significant situation is where there are multiple beneficiaries on the same retirement plan.

It’s not uncommon for people to name both their spouse and their children as beneficiaries to the same retirement plan. But even more likely is when multiple children each inherit a share of the same plan.

If it is a spouse plus one or more children, or even another party, the spouse will lose the simplicity that normally goes with inheriting the retirement plan of his or her spouse.

In addition, if you die before you turn 70 1/2, and therefore had not begun taking RMDs, each beneficiary can separately calculate RMDs, based on his or her own life expectancy.

But the situation can be more entangled if you die after you reach age 70 1/2 and have begun taking RMD’s. If you do, the RMD’s for each of your multiple beneficiaries will be based on the life expectancy of the oldest beneficiary. Naturally, if your spouse is one of the beneficiaries, the RMD’s to the spouse and your children will be based on the life expectancy of your spouse.

This could create a problem for the younger beneficiaries. It will mean that they will have to take withdrawals based on a shorter life expectancy. For example, a 10-year-old child will have to take RMD’s that are based on life expectancy of your 40 year old spouse.

This will not only create a potential tax liability for the younger beneficiaries, but it also holds the potential to deplete the account well before the younger beneficiaries reach retirement age. If your plan is to enable your own retirement account to help pay for your beneficiaries own retirements, it may not work out that way for the younger beneficiaries.

Retirement Plan Beneficiaries Don’t Have to be People

You don’t necessarily have to name specific individuals as beneficiaries of your retirement plans. You can also designate your estate as the beneficiary, or set up a trust for that purpose. However, neither is a perfect option.

If you name your estate as the beneficiary, you are setting up your estate for probate. That means that your estate will have to go through the courts before any money is distributed. And during probate, challenges can be entered against the estate that can change the ultimate distribution of the funds. If individuals are named as beneficiaries on your retirement plans, those accounts will not have to go through probate, and the money will be distributed directly to them according to the distribution plan that you elect.

In addition, if you die before you reach age 70 1/2, all the money will have to be withdrawn in no more than five years. And even if you die after reaching 70 1/2, ultimate beneficiaries of the account will have to take RMDs based on your own life expectancy. Either outcome will create a heavier tax burden than will be the case if you name individual beneficiaries.

The problem with naming a trust as the beneficiary of your retirement accounts is that the beneficiary of the trust won’t be able to move the funds into his or her own retirement account, or name beneficiaries to those accounts in the event of his or her death. In this way, if your spouse is the beneficiary of the trust, she won’t be able to pass the accounts directly onto your children upon her death – the accounts will be part of the trust. This will deny them the opportunity to take less frequent RMDs than would be the case if they were based on their own life expectancy. And that of course could result in higher tax liabilities.

There could be a workaround to this dilemma, but only if the beneficiary of the retirement plans is a revocable living trust. In that situation, the RMDs would be based on the life expectancy of the oldest beneficiary of the trust.

That’s certainly better than having RMDs that are based on a five year payout. But it’s not nearly as good as the direct individual beneficiary designations that would allow your beneficiaries to spread the RMDs over their own life expectancies.

When it comes to retirement plan beneficiaries, the individual route is almost always better.

Summing Up Non-Spouse Beneficiary Rules

Now that you’ve seen some of the complications that can arise in non-spouse beneficiary situations, you should review your own retirement plans to see how you have the beneficiary designations set up.

Obviously the simplest way to handle a retirement plan beneficiary designation is to simply name your spouse. But if you don’t have a spouse to name, and/or if you have multiple beneficiaries, your best bet is to set up the arrangement in such a way that will result in the fewest complications. If a person is important enough to name as a beneficiary on your retirement plan, then they are also important enough to have it set it up in the most beneficial way possible.

Unfortunately, if you are non-spouse beneficiary to a retirement plan owned by a person who is already dead, you will have no choice but to work with however the designation was established. It’s one of those situations where much can be done in advance, but little can be done after the fact.

Please pay careful attention to the beneficiary designations in your own retirement plans. Though it is certainly noble to make someone the beneficiary of your plan, you should want to do your best not saddle them with unnecessary complications and taxes.

Source Good Financial Cents http://www.goodfinancialcents.com/non-spouse-inherited-ira-rules

31 Days to Financial Independence (Day 13): Trimming Your Spending – Health Care

“31 Days to Financial Independence” is an ongoing series that appears every Thursday on The Simple Dollar. You might want to start this series from the beginning!

Last time, we continued looking at the average American family budget, going through each category and examining how one could trim the cost of typical expenses in that category. Here’s the “average American family budget” that we’re looking at, along with links back to the earlier entries on those specific areas:

Housing – $10,080
Transportation – $9,004
Taxes – $7,432
Utilities – $7,068
Food – $6,602
Insurance (including things like pensions) – $5,528
Debt Payments – $5,252
Healthcare – $3,631
Entertainment – $2,564
Cash Contributions – $1,834
Apparel and Services – $1,604
Education – $1,138
Vices – $775
Miscellaneous – $664
Personal Care – $608
TOTAL – $63,784

Today, we’re going to take a look at health care spending. As you can see from the budget above, the average American family spends $3,631 per year on health care. That averages out to about $300 per month. Remember, however, that this “average American family” includes single adults, married couples without children, and families with children, too. In other words, a single person is probably coming in below that, whereas a large family (like ours) is probably coming in above that.

Exercise #13 – Trim Your Health Care Spending

The rest of this article consists of a long list of specific tactics that you can use to trim your food costs. As with the other savings articles in this series, it’s important to remember that everyone lives a somewhat different life and thus some of these tactics are going to seem useful and sensible to you, while others will seem like a stretch to you, and still others won’t apply at all. That’s okay. Ignore the ones that don’t apply. Make an effort to adopt the most sensible ones. Then, give the others a trial run and see if it’s something that can work for you. Commit to some of the challenging ones for thirty days and see if they work, or apply them during the relatively rare situations when those costs come up.

Remember, your overall goal is to cut back hard on the areas of life that are less important to you – the shallows – so that you can afford the “deep” areas of your life both today and tomorrow. Health care costs, on the whole, are very important, but that does not mean there aren’t wasteful elements of how many people spend their health care dollars. Keep that in mind as you read each tip. Is this tip cutting back on something that’s really important to me, that amounts to a core life value? If not, why not cut it so that I can afford those things that really matter?

Also, not that we’re not discussing insurance here. Insurance was discussed as an entirely separate topic already.

Let’s dig in.

Buy generic or store brand medications when possible, both over the counter and prescription. Generic and store brand medications are often identical or very similar to name brand versions of medications, which means that you can buy and use such medications as a direct replacement for medications you already use. The advantage? Generic and store brand medications are virtually always substantially cheaper than the name brand version.

Whenever you visit a pharmacy or the pharmacy section of a store to purchase a medication, talk to a pharmacist about store brand or generic versions of the item you’re about to buy, just to make sure there aren’t any hidden differences you should know about. You’ll often find that it’s the exact same thing except that the price tag is a lot lower.

Eat a better balanced diet consisting of fewer processed foods. This is more of an “indirect” savings than a “direct” savings, but it’s still noteworthy. Eating a balanced diet with more vegetables and fewer processed foods is one of the few things that doctors and nutritionists tend to agree on in terms of your long term health. Such a diet has a positive impact on the rates of many, many diseases and ailments. It also has a positive impact on your weight, and approaching a normal weight itself has positive impacts on many diseases.

It’s not hard to do this. You don’t have to become a raw vegan. Just put one more scoop of veggies on your plate and one less portion of meat when you’re eating. Eat an apple for a snack instead of a candy bar. Skip the fast food and eat something at home. Make those substitutions regular, normal things. They don’t have to be “every time” things, but when you make them into regular choices, they’re going to have a greater positive impact on your health and thus a greater positive impact on your health care costs, particularly over the long term.

Again, many people overblow this and think that they need to become fully vegetarian or vegan and then reject the whole idea. Having one scoop more of vegetables and one scoop less of meat on your plate is a great step and doesn’t require you to have a diet of kale and carrots. Just shift what you do right now in a direction that involves more vegetables and fruits and you’re probably in much better shape right there.

Get some real exercise every day. The other major step that almost every doctor in the world agrees on in terms of reducing your long term medical costs is to get some real exercise on a very regular basis. Do whatever it takes to get your heart pumping a little each day and move around each day. You should be walking at least a few thousand steps every day, so a daily walk is a good idea. A daily workout of some kind is a good idea, too.

I have two fitness goals every day. The first goal is 10,000 steps, which I usually achieve with a walk around my town. The second is to start a daily workout, and usually if I’ve started that workout, I’ll finish it. I usually just do the daily workout from Darebee as it’s free, doesn’t require any equipment, and achieves the goal of getting my heart rate up and elevating my breathing.

Remember, you don’t have to become a workout guru. You don’t have to go to the gym and “die” to get into better shape. You just need to elevate your heart rate and get a little out of breath for a while. In fact, if you feel like you’re “dying,” that’s a bad thing as you’re overexerting yourself and creating negative feedback against exercise in your mind. Don’t do it. Find things that feel good and elevate your heart rate and your breathing. I find that the Darebee workouts do that, as do weights.

Participate in workplace and insurance wellness programs. Many workplaces and insurance plans offer programs where benefits are offered if you commit to certain wellness initiatives. Some workplaces, for example, offer pedometers and give insurance discounts to people who meet a certain step count threshold. Others offer financial incentives for weight loss.

Ask around your workplace – particularly the human resources department – for such initiatives, especially if you work for a large organization. It’s also well worth contacting your insurance company directly to see if they offer such programs. If you can directly earn money or other benefits by losing weight or exercising, it becomes a double win.

Have regular wellness visits / healthy checkups with your doctor. Almost every insurance plan covers such visits in full, so they shouldn’t result in any out-of-pocket expenses for you. It is far cheaper for an insurance company to pay for wellness visits for a responsible person so that medical problems can be caught early and covered inexpensively than to pay for expensive medical care for someone who wasn’t taking care of themselves, so they make it as efficient as possible for people to take advantage of this.

So, take advantage of this. For you, those wellness visits are free (or very low cost – check with your provider). Go to them. If they do find a problem, it’s going to be cheaper and easier and less painful for you now than it will be later on when it becomes a true life challenge.

Take advantage of preventive care offered by the Affordable Care Act. Many elements of preventive care are offered special additional coverage due to the provisions of the Affordable Care Act. Many elements of treatments for common ailments such as diabetes are made much less expensive for people because of the ACA. Regardless of your feelings on the law, it’s financially beneficial for you, if you’re suffering from a chronic condition, to take advantage of those provisions.

Again, talk to your doctor. They know the details on the ACA and how it applies to your situation. Ask them about inexpensive ongoing care and preventive care.

Check on your insurance coverage for every procedure and look for alternatives for uncovered procedures. Whenever your doctor suggests an additional procedure of any kind, don’t just nod your head “yes” in a daze. First, ask your doctor about potential insurance impact as well as alternatives that might be covered. Second, talk to your insurance company about the procedure and your options.

It’s better for everyone involved – you, the doctor, and the insurance company – if you can find a treatment plan that takes care of your condition at minimal cost. However, everyone’s medical conditions are a little different, so it can take some time and effort to find that most effective treatment plan. Be an advocate for yourself and talk to all sides to find a solution.

Know your local emergency care providers. This takes a little bit of homework, but it can save you a ton of money in a pinch. Know what emergency care options are available in your community and how each of them work with your insurance. Make sure your insurance is accepted at a particular hospital and then know the relative quality of care at the hospitals where your insurance is accepted.

With just a little research, you can figure out pretty quickly where the best place for you to go for a medical emergency is in terms of balancing your out of pocket costs and the quality of care received there. Then, in an emergency, you’ll already know where you should go to get the best bang for the buck medical care.

Talk to your doctor about cutting prescriptions. Many people find themselves prescribed to medications to take care of ailments of various kinds. Sometimes, those ailments improve over time and don’t require as much medication or the same type of medication. Sometimes, those conditions are being overtreated by medication, or a short-term medication is used for longer than is intended.

In those cases, it makes sense to cut back on the medications that you take. Doing so can actually improve your medical outcomes while also saving you a lot of money (and probably improve life quality by reducing side effects). Again, this is a perfect opportunity to talk to your doctor about whether or not you can trim your medication intake and still experience positive health outcomes.

Talk to your doctor about actions – not medicine – you can take to help improve your condition. Many medications are given to people to help deal with problems that they can improve through personal action. Pain medication might be given to cover up an ailment that can be fixed with regular exercise, for example, or a diabetes medication might be given to cover up for an ailment triggered by obesity.

Rather than merely relying on medication, look for actions you can take to fix the underlying problem so that there’s no problem for the medication to treat. Ask your doctor what kind of personal actions you can take to resolve the underlying medical problem, either by reducing the severity, by eliminating it completely, or by minimizing the symptoms of the illness. If your other life choices can enable you to eliminate a medication from your life, that’s going to save you a lot of money.

Buy generic drugs without insurance by asking whether the cost is lower if you don’t use your insurance plan. Believe it or not, many pharmacies can sell generic prescription medications over the counter for much less than the cost to people who have prescription insurance. It seems crazy, I know, but that’s simply the medical insurance situation in America.

Talk to your pharmacist about any and all medications you’re prescribed and see whether or not a generic alternative paid for without insurance is less expensive out of pocket for you. You very well might find yourself paying a lot less out of pocket for the medicine you need.

Order maintenance medicines in bulk by mail. There are many mail-order prescription insurance programs that will send you all of the medications you need for an extended period (say, three months) all at once. These types of programs are typically significant money savers.

If you take a long term maintenance prescription or two, take a look at ordering those prescriptions through the mail in bulk and see whether or not such a plan can save you money compared to using your local pharmacy.

Next time, we’ll look at some strategies for reducing entertainment costs.

The post 31 Days to Financial Independence (Day 13): Trimming Your Spending – Health Care appeared first on The Simple Dollar.

Source The Simple Dollar http://www.thesimpledollar.com/31-days-to-financial-independence-day-13-trimming-your-spending-health-care/

Will Aid: How writing a will could give charity a boost

Rachel Lacey

writing-a-will.jpg

Will Aid 2016 is now open for business. The scheme, which runs every November, sees solicitors across the country waive their fee for writing a will and instead ask their clients to make a donation to Will Aid.

Will Aid 2016 is now open for business. The scheme, which runs every November, sees solicitors across the country waive their fee for writing a will and instead ask their clients to make a donation to Will Aid.

read more

Source Moneywise http://www.moneywise.co.uk/news/2016-11-10/will-aid-how-writing-will-could-give-charity-boost

Thank You, Veterans: 29 Places to Get Free Food and More This Veterans Day

No one can say it often enough: Thank you for your service, veterans and active military members.

But as nice as it is to hear those words, free goodies are also a nice token of appreciation.

And since this Friday is Veterans Day, there’s plenty of tangible gratitude coming your way.

Free Food for Vets and Military Members This Veterans Day

Looking for some free eats? The following restaurants have confirmed that they’ll be giving away meals, coffee and more this Friday.

1. Applebee’s

Veterans and active-duty military members can score more than just a free meal from Applebee’s this Friday: You’ll also get a $5 coupon redeemable between Nov. 12 and Nov. 27, 2016.

You can choose from seven of Applebee’s signature dishes, including it’s “Butcher’s” meat and potatoes, three-cheese chicken penne and the oriental chicken salad — and, of course, a good ol’ American burger.

2. Bob Evan’s

Bob Evans is offering military members and vets a free meal off a sumptuous-looking six-item menu that includes breakfast, lunch and dinner options. You can redeem this freebie any time on Nov. 11.

3. Buffalo Wild Wings

Craving hot, delicious wings? Who isn’t?

Head to your local B-Dubs for a complimentary small order of wings any time this Friday, Nov. 11. The offer doesn’t include your drink, and you do have to dine in.

4. California Pizza Kitchen

Whether it’s pasta, salad or pizza you’re after, you’ll eat it for free at California Pizza Kitchen this Friday.

Veterans and active service members get a free entree when they arrive in uniform or show their military ID this Friday. Choose from a special menu including some of CPK’s favorites, like BBQ chicken pizza, Thai crunch salad and spaghetti bolognese.

5. Carrabba’s

This Italian chain will offer a free appetizer to vets and active-duty military any day between Nov. 7 and Nov. 13. Just mention the offer to your server to redeem it.

6. Chicken Salad Chick

Veterans will get a free “Original Chick” — a meal including a chicken salad scoop or sandwich, side, pickle and a cookie — as well as a regular drink when they pop into Chicken Salad Chick this Friday.

No purchase is necessary, but the Foy location on Auburn’s campus is exempt from the deal.

7. Chili’s

Head to Chili’s with your military ID to get a free entree any time on Nov. 11.

8. Chipotle

Grab a friend and head once more into the fray: Chipotle’s offering vets and active-duty service members a BOGO deal this Veterans Day.

Head into the store with your closest buddy (or a really, really big appetite) between 3 p.m. and closing time to take advantage of the offer, which is good on salads, bowls and tacos, too.

9. Denny’s

Start your day off right: Denny’s is offering active, inactive and retired military personnel a free build-your-own Grand Slam this Friday between 5 a.m. and noon.

The dish includes your choice of four breakfast items, from pancakes to eggs to hash browns to bacon (of course).

10. Fazoli’s

Ready for some carb-loading? Fazoli’s will offer active-duty and retired military members a free serving of build-your-own pasta when you flash your military ID or show up in uniform, no purchase necessary.

11. Friendly’s

This joint might be best known for its ice cream, but it also serves breakfast, lunch and dinner — and you’ll get one of those meals for free if you show up at Friendly’s with your military ID this Friday.

You can choose from two menu options: The “Big-Two-Do” including a customizable array of breakfast goodies, or if lunch or dinner’s more your style, a burger with fries and a drink.

12. Hooter’s

Stop by Hooter’s this Friday, Nov. 11, for a free entree off its special Veterans Day menu, which includes the following options: 10-piece traditional or boneless wings, a burger, a buffalo chicken salad or buffalo chicken sandwich.

The offer does stipulate that you’ll need to purchase a beverage — but at least you can have whatever sauce you want!

13. IHOP

Grab your military ID and head to your local IHOP to get a free short stack of red, white and blue pancakes this Veterans Day — that is, three fluffy, buttermilk pancakes smothered with blueberry topping, scattered with glazed strawberries and finished with whipped cream. Yum.

14. Krispy Kreme

Anyone who identifies themselves as military personnel can get  a free donut and small coffee at Krispy Kreme this Friday, no ID required.

The offer’s good all day long, from 6 a.m. to 10 p.m., so you might as well wait until that famous “hot” light kicks on. The deal doesn’t work in the drive-thru, however.

15. Longhorn Steakhouse

Veterans and active-duty military personnel will get a free appetizer or dessert at Longhorn this Friday — plus 10% off the check for the whole table.

16. Mission BBQ

This southern and midwestern joint’s tagline is “The American Way,” so we weren’t surprised to find out it’s supporting vets this Friday.

Drop by your favorite Mission BBQ location on Nov. 11 to get a free sandwich and slice of cake (while it lasts).

17. Olive Garden

Vets and active duty military will score a free entree from Olive Garden this Friday.

Its special Veterans Day menu includes six delicious options with breadsticks and your choice of soup or salad.

18. On the Border

Ready to spice it up? Get a free lunch combo plate when you dine in at On the Border this Friday.

19. Red Lobster

Red Lobster will serve up a free appetizer or dessert to vets and active service members who flash their ID or proof of service on Thursday, Nov. 10, or Friday, Nov. 11.

You’ll choose from its special menus including six different dishes for either option — see the full deets here, or wait ‘til you get to the restaurant and surprise yourself.

20. Red Robin

You’ll get a free “Red’s Tavern Double” burger and a bottomless order of steak fries when you show your proof of service at Red Robin this Friday.

No purchase is necessary, but it won’t count toward your Red Robin Royalty rewards accrual.

21. Ruby Tuesday

Vets can get any appetizer up to a $10 value free on Friday, Nov. 11, at this casual chain.

22. Texas Roadhouse Grill

Swing by Texas Roadhouse between 11 a.m. and 2 p.m. this Friday to get a free lunch entree with proof of service.

Even if your favorite location usually doesn’t open until dinner time, never fear: “Every single Texas Roadhouse location will be opening early in honor of Veterans Day,” per a company representative’s Facebook comment.

23. TGI Friday’s

Veterans Day falls on a Friday this year, so why not head to this aptly named chain this year?

Show your military ID to get a free lunch entree up to a $12 value between 11 a.m. and 2 p.m. on Veterans Day.

Other Veterans Day Freebies and Deals

Now that your belly’s full, check out these other freebies and deals that support veterans and military members this month. Some of these are open to civilians, so you can help celebrate our military members’ sacrifices even if you’ve never served!

24. Abuelo’s

Although it’s not offering any freebies, Abuelo’s will donate $1 from the sale of every order of chili con queso to Homes for Our Troops.

It’ll also offer vets and active duty military a 20% discount on their entire checks all day from Nov. 9 to Nov. 11.

25. Baskin Robbins

Do you scream for ice cream? Baskin Robbins will donate 11 cents from every scoop of ice cream sold on Nov. 11 to the United Service Organizations.

It’s also bringing back “First Class Camouflage” as its November flavor of the month. The tri-flavor scoop features chocolate, salty caramel and cake-flavored ice creams, and, of course, is green, brown and tan.

26. Great Clips

Know a vet whose coif looking a little less than ship-shape? Need a quick snip yourself?

Head to Great Clips for a haircut this Friday, and you’ll get a free haircut card to give to your favorite veteran. They’ll be able to redeem it from Nov. 12 to Dec. 31, 2016, with proof of military service.

If you’re a vet yourself, head in on the 11th for a free haircut then and there, or a card if you want to come back later.

27. The National Park Service

Need to get some fresh air after all that free food, vets?

Head to your favorite National Park this Friday, and you’ll get in for free. In fact, so will all your friends and family, even if they’ve never served.

What better way to honor your sacrifice than to go out and actually be on the land you fought for?

28. Publix

Psst, southern vets: Maybe save your grocery shopping for Friday.

Publix will offer active military members and vets 10% off their purchases when they show their ID, so this might be a good time to stock up!

29. Red Roof Inn

Maybe you want to celebrate Veterans Day with a getaway.

If so, consider staying at a Red Roof Inn: It’s offering veterans 15% off hotel stays for the whole month of November.

The chain is also hosting a social media contest that might win you a free weekend getaway!

All you have to do is share a photo of, and story about, your favorite veteran on Twitter, and tag @redroofinn in the post. (Make sure you’re following the company, too!)

Enter by Nov. 29. Four winners will be chosen “at random” on Nov. 30, and will win two VIP passes for free nights at any Red Roof Inn nationwide and a $250 travel gift card.

Your Turn: How will you honor Veterans Day?

Jamie Cattanach is a staff writer at The Penny Hoarder. Her writing has also been featured at The Write Life, Word Riot, Nashville Review and elsewhere. Find @JamieCattanach on Twitter to wave hello.

The post Thank You, Veterans: 29 Places to Get Free Food and More This Veterans Day appeared first on The Penny Hoarder.

source The Penny Hoarder http://www.thepennyhoarder.com/veterans-day-deals/

9 Budget Travel Essentials I Always Buy at Dollar Tree

Equal pay day means "women effectively stop earning today"

Moira O'Neill

tired-working-woman.jpg

Today is Equal Pay Day, meaning for the rest of 2016, women are effectively no longer earning, says the Fawcett Society.

Today is Equal Pay Day, meaning for the rest of 2016, women are effectively no longer earning, says the Fawcett Society.

The charity that campaigns for gender equality and women’s rights says that despite the Equal Pay Act coming into force four years ago, women still earn less than men in Britain today.

read more

Source Moneywise http://www.moneywise.co.uk/news/2016-11-10/equal-pay-day-means-women-effectively-stop-earning-today

This Family Paid Off $60K of Debt in a Year. Here’s Exactly How They Did It

Five Jobs Where You Can Work Part-Time and Still Have a Career

There are lots of reasons to want to work part-time, from launching your own side business to spending more time working on your hobbies. However, let’s be real: For most American parents, the search for lucrative, fulfilling part-time work is about the necessities of balancing work and life in the 21st century. Unless you have a trust fund or a partner who makes a mint, you need to work; unless you live with an accommodating retired relative, you probably need to minimize childcare costs.

The problem is that in most industries, going part-time means that you stop having a career and start having a job. Working mothers have struggled with this problem for decades: Opt to work part-time, and you might find yourself mommy-tracked right off the promotion path, even if you’re a daddy. (And dads are stepping up: A 2015 EY survey found that dads were even more willing than moms to report themselves willing to change careers to get better work-life balance. They were also more willing to pass up a promotion.)

However, not every career is so unforgiving. If you’re thinking about retraining for a job that will give you the flexibility to spend more time with your family and still earn a living, one of these might suit:

1. Registered Nurse

Registered nurses can work a full workweek in three, 12-hour shifts or pick up per-diem jobs and drop down to 24 hours a week… or less. Because they’re licensed healthcare professionals, nurses don’t have to worry about demonstrating their worth to future employers. Their degree, licensure, and continuing education requirements (depending on the state) make the case for them.

Just be aware that new nurses are probably better off investing in a bachelor’s degree, instead of doing the shorter associate’s degree track, especially if they want to work in a hospital in a major metropolitan area. Registered nurses earn a median wage of $28 per hour.

2. Consultant

If you’re a market analyst, management consultant, or other business guru, you don’t have to commit to working an 80-hour week in order to keep your resume fresh. CNBC reports that management analysts/consultants earn median wages of around $30 to $40 per hour, and are in demand.

3. Freelance Writer or Designer

Media folks who want to leave the rat race can often use their existing connections to work as much or as little as they want (and the market demands). This gig has the advantage of being super flexible. Play your cards right and keep your skills up-to-date, and you could reduce your hours pretty significantly and still stay in the game. This is especially true if you update your resume to a skills-based format that shows off the projects you’ve worked on, instead of focusing on your linear career path.

• Related: Ultimate Freelancer’s Guide

4. Master Plumber

Master plumbers typically have associate’s degrees and complete an apprenticeship, according to Monster.com, but they also set their own hours — and can rake in the bucks, earning $25 per hour, median. If you’ve ever had your pipes back up and needed a plumber fast, you know why they can command good money and call the shots.

5. Tax Preparer

Many tax preparers work more during the tax season, which runs from January through mid-April (or thereabouts, depending on the year). But the money they make during the busy season could be enough to keep them afloat for the rest of the year. (Median annual salaries hover around $40,000.)

Although some tax preparers diversify in order to work year-round, branching out into bookkeeping or payroll services, others might prefer to burn the midnight oil for a few months and take it a bit easier the rest of the year. Depending on where they work, tax preparers might need to become Certified Public Accountants or Enrolled Agents.

Related Articles:

• The Myths and Realities of ‘Doing What You Love’
• Five Ways Stay-at-Home Parents Can Get Back Into the Workforce
• Five Signs You Need a Career Change

The post Five Jobs Where You Can Work Part-Time and Still Have a Career appeared first on The Simple Dollar.

Source The Simple Dollar http://www.thesimpledollar.com/five-jobs-where-you-can-work-part-time-and-still-have-a-career/

Neil Woodford: Trump win could end emerging market rally

Kyle Caldwell

Woodford-01.jpg

Neil Woodford, the high-profile fund manager, has predicted the emerging market regions could end up being among the biggest equity market losers, following Donald Trump’s US presidential election.

Neil Woodford, the high-profile fund manager, has predicted the emerging market regions could end up being among the biggest equity market losers, following Donald Trump’s US presidential election.

read more

Source Moneywise http://www.moneywise.co.uk/news/2016-11-10/neil-woodford-trump-win-could-end-emerging-market-rally

ESSA celebrates a century of business while adapting to changing markets

The 1970s were crucial for the future of ESSA Bank and Trust.The decade began with the merger of the East Stroudsburg-based bank with two other local banks, resulting in a boosted $20 million in assets and multiple locations through the region. By the end of the decade, it would open its first branch office.The bank was growing, just a decade before federal deregulation would allow them flexibility in a suddenly more competitive market. And in 1977, ESSA brought in an East [...]

Source Business - poconorecord.com http://www.poconorecord.com/news/20161109/essa-celebrates-century-of-business-while-adapting-to-changing-markets?rssfeed=true

Own a Samsung Washing Machine? If It’s Being Recalled, You Could Get Money

If you bought a Samsung top-loading washing machine between March 2011 and this year, your model may be recalled. If so, you could be due for some extra cash toward a new washer.

This voluntary recall is in response to reports of excessive vibration that can cause the top of the washing machine to separate from the rest of the unit during the spin cycle – and potentially harm users.

How the Samsung Washing Machine Recall Works

Enter your model and serial number on Samsung’s recall webpage to find out if your machine is recalled.

If your machine’s on the list, you have three options:

1. Repair

Schedule a free, in-home repair to resolve the issue. In addition to repairing it, Samsung will add a year to the manufacturer’s warranty on your machine, no matter how old it is.

Samsung says to use the delicate cycle on bulky loads of laundry until your machine is repaired.

2. Rebate

Choose a rebate to use toward the purchase of a new washer — which doesn’t have to be made by Samsung.

Your rebate will depend on the age and model of your recalled washer, and it includes installation of the new machine and removal of the old one. If you choose another Samsung washing machine, you’ll get up to an extra $150.

Consumer Reports notes these machines sold for between $450 and $1,500 at major appliance retailers. Commenters on the site report being offered rebates of between $200 and $775 for their recalled machines.

3. Return

If you purchased your machine within 30 days of the recall announcement on Nov. 4, 2016, you can return it where you purchased it for a full refund.

Your Turn: Are you affected by the recall? Which remedy will you choose?

Lisa Rowan is a writer and producer at the Penny Hoarder who still uses quarters to do laundry.

The post Own a Samsung Washing Machine? If It’s Being Recalled, You Could Get Money appeared first on The Penny Hoarder.

source The Penny Hoarder http://www.thepennyhoarder.com/samsung-washing-machine-recall/

Xerox is Hiring Tons of Reps Across the U.S. (The Benefits are Awesome!)

If you’re interested in working for Xerox, but missed out on its work-from-home positions, we’ve found more opportunities that might be a fit.

Xerox is hiring several customer care assistants for call centers across the U.S., including this seasonal position in Lexington, Kentucky. It promises Saturdays off and $13.75 an hour.

As a customer care assistant, you’ll support customers via phone or email, troubleshooting problems with existing services and recommending products to better serve their needs.

Requirements for Xerox’s Customer Service Jobs

You don’t need a degree to apply for this job, just a high school diploma or GED — plus stellar customer service skills and about six months’ in-person or over-the-phone customer service experience.

You’ll also need basic typing skills. Specific word-per-minute requirements vary depending on the client, but we’ve seen requirements around 25-30 WPM — which is doable as long as you’re not hunting and pecking.

Depending on your credentials, Xerox also has openings for a range of virtual jobs, including management, information security and recruiting.

Xerox Employee Benefits

Xerox’s full-time positions come with some great perks!

Several job listings note these employee benefits:

• Medical, dental and vision coverage

• 401(k) plans

• Educational assistance

• Paid time off

• Company discounts at local restaurants and gyms, plus discounts on cell phone service, auto and travel, international theme parks and more

To apply: Find a position near you, and fill out your application online.

Want to be the first to know about other fun and interesting jobs like this? Like The Penny Hoarder Jobs on Facebook to stay in the loop!

Your Turn: Will you apply to work for Xerox?

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 Xerox is Hiring Tons of Reps Across the U.S. (The Benefits are Awesome!) appeared first on The Penny Hoarder.

source The Penny Hoarder http://www.thepennyhoarder.com/xerox-now-hiring-customer-service-jobs/

33 Writing Tweaks That Will Turn You into a Copywriting Master

Can I make a confession?

When I started writing, I was no Shakespeare. I wasn’t even a Hemingway.

In fact, I was downright awful.

Like many of you, I didn’t get any kind of degree in writing. I didn’t shine in high school English. I never entertained dreams of being a best-selling author.

And my first few posts online proved it.

But over time, I started realizing how important writing is in business. (Spoiler alert: it’s super important.)

So I studied, practiced a lot, and got better. I’m still no Shakespeare, but I’ve learned a lot about writing.

Writing isn’t a talent—it’s a skill. A skill you can develop, refine, and improve.

Becoming a great copywriter isn’t easy, but if you consistently work on your writing, your writing will get better and better.

Here are 33 (count them!) writing tweaks that will propel you to copywriting mastery.

1. Use you instead of we or us

Guess what? Your copy shouldn’t be about you. It should be about the customer.

Using you means the copy is talking directly to the customer. But using we and us turns you into another boring company.

Don’t fall victim to the “all about us” copywriting trap. Show your readers how they’ll benefit.

See how SumoMe’s home page features a huge you statement?

2. Qualify

You know you should sell benefits instead of features. But you can’t stop there—you have to emphasize that value. That’s why you need to qualify your value statements.

By making a list or a series of sections about benefits, you’ll communicate both quality and quantity. Your customers will be able to see a clearer picture of what you can do for them.

3. Ditch boring verbs

Remember in high school English class when your teacher told you to avoid the passive voice? That’s still true and extends to passive-sounding verbs, like the verb to be.

Why?

Because they tend to sound boring.

Which is more exciting: “Vacation is near” or “Get ready for vacation”?

I’m betting it’s the second one.

When it comes to your copy, don’t skimp on the verbs. Use strong, active verbs, and be direct.

4. Focus on your titles and headings…

Legendary marketer David Ogilvy is famous for saying,

On the average, five times as many people read the headline as read the body copy. When you have written your headline, you have spent eighty cents out of your dollar.

Take a lesson from the master, and create the best titles and headings possible. Whether you’re writing the main headline on a landing page or an email subject line, put some serious thought into it.

5. …but resist clickbait temptations

While clickbait titles can initially boost your conversion rate, they’ll hurt you in the long run. That’s because with clickbait, you’re over-selling and under-delivering.

Instead, craft titles relevant to your readers. Rely on that relevancy to sell the title. Promise only what you can actually deliver, and then deliver.

6. Practice writing fewer words

Even if you’re writing a 3,000-word blog post, you still need to be concise. Take Strunk’s advice, and “omit needless words.”

Next time you’re writing something, challenge yourself to express your idea with as few words as possible. Then, build on that skeleton.

7. Write shorter sentences

Short sentences are powerful.

While you shouldn’t try to make every sentence short, you should use them to break up the text. No one wants to read a sentence that’s two paragraphs long.

Short sentences catch your readers’ attention. They’re easier to digest, and they help readers move through the content easily.

8. Harness the power of single sentence paragraphs

A single sentence paragraph can do a lot.

(See what I did there?)

When you use a single sentence paragraph on its own, you draw attention to it. Your readers will know that’s an important point to remember.

If you want your readers to listen up and remember something, make that sentence into its own one-line paragraph.

9. Brainstorm unique CTAs

To be blunt, a “Buy now” button is boring. So is “Join.” And don’t even get me started on “Click here.”

Use your call to action to give your readers something different. A great CTA lets readers know what they’re getting, and it gives them a great reason to click on it.

Treehouse has a great CTA on its homepage:

10. Bold or italicize important statements

If there’s something you want your readers to remember, make it bold.

A survey by the Nielsen Norman Group revealed that 79% of users scanned every web page. Bold text makes that scanning process a lot easier.

11. Use the power of reason

People like to feel they have a good reason for what they do.

Next time you ask your readers to do something, give them a reason to. Using “because” is a good place to start.

(And no, you don’t have to use the word “because.” Just give your readers a reason to do what you want them to.)

12. Don’t be afraid of the word I

You might have been taught to not use I, me, or my in your writing. Well, throw that idea out of the window.

The more you sprinkle in references to yourself, the more you’ll be able to get personal and genuine with your readers. Your readers are craving it.

I do it all the time, and here’s what I’ve noticed.

When I write a blog post without referring to myself much, it tends to get ignored. All the engagement metrics I track go down. But when I do tell a story or share some insights into my life or business, engagement goes way up.

It just works. Trust me.

Be yourself, and refer to yourself.

Just remember: it’s not about going on an ego trip. It’s about being as honest and real as you can be in front of the people who matter—your readers.

13. Use personal stories

A personal story can turn a good article into a great one. If you’re writing about SEO and you tell readers how it helped you, they’ll be more likely to try it themselves.

Personal stories help build personal connections with your readers. They’ll see that you’re just like them, and they’ll be willing to listen to you.

14. Use other people’s stories

I love using real-life examples in my writing. When I include stories about how influencers have benefited from something, my readers understand how powerful it is.

Using others’ success stories lets your readers know you’re not full of hot air. If you know that something works, use stories to prove it.

15. Answer questions

I’m not talking about asking customers to send in questions. I’m talking about answering customers’ questions before they can even ask.

Great copywriting provides all the answers a customer needs. Your copy should tell the what, why, and how of your product. That means preemptively answering most anticipated questions in the copy itself.

16. Start strong

When it comes to writing articles or blog posts, you absolutely have to start with a strong statement. Tell your readers why they should keep reading.

I’m a big fan of using the first few sentences to relate to readers by addressing their concerns.

But you can also say directly what the post is about. Brian Dean from Backlinko does this a lot:

Doesn’t that make you want to read more? You immediately know why the article is going to be superb.

No matter what you do with the beginning of a post, make sure you connect with the reader right off the bat.

17. Read it aloud

I know, I know. You’re thinking, “Read my writing aloud? Yeah, right.”

But trust me—this works.

Reading your writing aloud will help you identify places where the writing doesn’t flow. If you trip over some words or stop to process the writing, you know it’s time to go back and fix those sections.

18. Make friends with a thesaurus

Ever notice you tend to use the same words over and over again? Or have you found yourself looking for the perfect word to use? You need a thesaurus.

Having a thesaurus is ideal for finding new words to introduce into your writing.

Now please, don’t use a thesaurus to try to find big, sophisticated-sounding words.

Simpler words are almost always better. But if you can’t think of a simpler word, maybe the thesaurus will help.

19. Speak your readers’ language

Take a look at past comments from readers. How do they write? Do you see any common phrases popping up?

Use this information to improve your writing. By literally using your readers’ language, you’ll make it easy for them to relate.

20. Use subheadings

Good writing needs visual contrast. That means no walls of text and no dense copy.

Using subheadings to create subsections helps the reader digest the information and understand it more easily. Make sure you state the main point of each section in the subheading.

21. Stuck? Try combining ideas

Fusing unrelated ideas creates a new twist on an old subject. It works so well because it grabs people’s attention. It makes you do a double-take.

For example, Gary Vaynerchuk posted an article with an eye-catching title:

You have no idea what he’s going for, right? It makes you want to read more because the combination is so unexpected.

22. Stay actionable

There’s nothing wrong with theory—in theory, that is.

When you write an article without giving one actionable tip within it, it’s hard to take that article seriously. Your readers have no way of knowing whether you’re sharing good information.

In each post, aim to include several actionable tips your readers can use today. Sprinkle them throughout the text so readers get new advice with each section.

23. Make friends with summaries

Summaries, conclusions, wrap-ups. Whatever you call them, there’s no denying they’re important.

Here’s the thing: If someone’s made it to the end of your article, they should be rewarded. One easy way to do that is to include a summary or a conclusion at the end.

You can write a list reminding your readers of the most important facts in the article. Readers will be more likely to remember that important stuff, and it’s also convenient for them. Win-win!

24. Use humor sparingly

I’m the last person on earth to say your writing shouldn’t be personable. But there’s a fine line between relating to your readers and trying too hard.

If you want to use humor, do so—but don’t overdo it. You shouldn’t be cracking a joke with every new paragraph. With humor, often less is more. So, be funny, but don’t be funny all the time.

25. Bookend important points

You were probably taught that you should start a paragraph by introducing the main idea (a.k.a. a topic sentence). I’ll go a step further and say you should talk about your main idea in the first and last sentences of a paragraph.

People will remember information better if they see it more than once. By talking about your main point both at the beginning and at the end of a paragraph or section, you’re making that idea stick in your readers’ heads.

26. Be brutal when editing

Rough drafts aren’t called rough drafts for nothing. You may have a great idea, but without editing, you won’t make your writing the best it can be.

There’s a saying in writing: “Kill your darlings.”

The point is not to become too emotionally attached to your writing. Don’t keep something because you think it sounds nice.

Be honest and unbiased. Cut out filler words, remove lazy phrases, and shorten any novel-length sentences.

Need help? Try the Hemingway app.

27. Use transitions

No one likes to be hit over the head with something.

If you’re going from one topic to another, use a transitional phrase or sentence to make the shift smooth.

One great method is to connect the current section with the next one. Ramit Sethi uses this approach often:

28. Avoid clichés

We all use clichés in everyday speech, but they’re a bad choice for writing.

That’s because using a cliché is a great way to say nothing at all. There is always a better choice (unless you’re making fun of a cliché, of course).

29. Include rhetorical questions

Do you want to be an awesome copywriter?

That’s an example of a rhetorical question. If you use rhetorical questions in a smart way, you can build a better connection with your readers and get them hyped for what’s next.

But if you go overboard, your readers will probably leave. Use rhetorical questions only when you want to emphasize a point or create hype.

30. Leverage lists

Lists are fantastic. They break down information into smaller chunks, and the format makes it a breeze to read.

If you’re packing a ton of information within a paragraph, consider making it into a list. Numbered lists work well for processes, and bullet points are ideal for everything else.

Here’s Pat Flynn using both:

31. Eliminate buzzwords

It’s tempting to use jargon because it’s so widespread. But the truth? Most of the time, it comes across as vague filler text.

You might want to write a post called:

“Creating a Streamlined Process for Creating a Dynamic Funnel,”

but it’s more direct to title it:

“How to Get More Customers Fast.”

There’s a time and place for buzzwords, but don’t go over the top with them.

32. Keep it focused

Writing about sales? You could go into all sorts of topics, from marketing to public speaking.

But it’s important to narrow that scope so you don’t lose readers by going on tangents.

Keep everything on topic. Don’t talk about another subject unless it’s relevant. If you do talk about something else, keep it short.

33. End with a bang

My absolute favorite way to end an article is to include a question that engages my readers.

I like interacting with my readers and getting them involved. Asking an open-ended question is a great method of doing that.

End your articles with questions that start a conversation, and respond to comments. You’ll create a strong community, and your readers will appreciate it.

Conclusion

You don’t need years of study to become a master copywriter.

But you do need to practice.

And you need to practice a lot.

Your writing will only get better if you take the time to refine it. Every day, make it your goal to write something, even if it’s not much. You might be surprised to see how quickly your wordsmithing improves.

What’s your biggest writing challenge?

Source Quick Sprout https://www.quicksprout.com/2016/11/09/33-writing-tweaks-that-will-turn-you-into-a-copywriting-master/

Why Save for Retirement If You Have Social Security?

Dana asks a great question:

My husband and I are in our early forties. Our house is paid off in the last year and we have no other debts. However, we do not have much saved for retirement.

This was something that has been worrying us. But then we took a look at a Social Security calculator and it estimated that my husband and I will receive about $2,000 a month each in SS benefits. That’s more than what we spend in a month by a noticeable margin and we commute every day.

I’m trying to understand why we should be so worried about saving for retirement. SS is guaranteed by the government and if the government starts defaulting it won’t matter how we’re invested. If SS takes care of our needs why save more?

Great question, Dana!

Dana makes a great case as to why it might make sense to not save for retirement and instead rely on Social Security to pay for one’s retirement expenses. While I do think that some of the numbers that retirement calculators pump out are enormously high, I also think that almost every American is well served by saving something for retirement.

Here’s why.

First of all, even though that estimate looks pretty good, it might not add up to as much as you think. While you will be eliminating some expenses, the truth is that many will stay in place and some others are going to grow. As you age, your average health care costs increase, for example, as does the cost of health insurance. Even if you’re as fit as a fiddle, that cost is going to go up and it’s going to fall to your shoulders after you retire.

Second, you might want to – or be forced to – retire early. It is very likely that the benefit estimate that Dana is working with in her example is an estimate of the monthly benefits she’ll receive if she starts receiving those benefits at age 67. What happens if she loses her job at 62 and can’t find a similar job at that age? What if it happens to her husband?

Furthermore, what if she actually wants to retire at 62 or at 60 or even earlier? In that case, she’ll have to fully fund living expenses out of pocket for the years until Social Security becomes available. If she chooses to start taking benefits early, then her benefits will be significantly reduced.

Third, a full Social Security plan doesn’t consider tax increases. If tax policy changes or tax rates go up, that means that you’re going to be paying a greater portion of your income in taxes. These changes could come in the form of increased income taxes, increased property taxes, increased sales taxes, and so on.

Like it or not, there’s a very good chance that our nation’s economic future involves higher taxes. Very few people want to give up the services we have now, the cost of those services is going to go up, and we’re already at a tax deficit nationally and in most states. Add all of that together and it’s a recipe for increased taxes.

Fourth, relying on a healthy Social Security income assumes that Social Security benefits won’t ever be cut – and that’s far from a guarantee. A big part of this plan is the assumption that there will never be any reduction in Social Security benefits going forward, which is very likely a mistake. The truth is that without some changes to the Social Security system, there will be funding problems in the future. What form will those changes take?

One likely change is a reduction in benefits – a 20% cut is often mentioned. Does Dana’s plan work if her benefits drop to $1,600 a month, especially given the other factors discussed here?

Another likely change is that benefits won’t start until an older age. You might not see benefits appearing until age 70 or age 72. This is due to the fact that people are simply living longer. The system is designed to pay out for five or so years, but as people get older and older, that length increases to ten or fifteen years, and that strains the system.

The point is this: you simply cannot predict the future. Believing that your entire retirement process is taken care of because of the availability of Social Security benefits at their current level means that you’re assuming that nothing will change to disrupt that plan over the next forty to fifty years. Well, fifty years ago, tax rates were far higher than they are now, for starters, and Social Security benefits paid out very differently.

So, how does that all affect you?

First of all, the big retirement numbers you often see – millions of dollars – is intended to include all of those contingencies. It includes protection against all of the things described above and more. It’s also insulated against bumps in the stock market (like the one we’re having today).

It’s also intended to include some retirement perks. It assumes that you’re going to keep your full current lifestyle and probably add a few perks like some additional travel.

The truth is that most people want a retirement somewhere in the middle. They’re not planning on an expensive retirement, but they also want some sort of protection against the events described above. It’s a balancing act.

That’s why the best retirement savings advice is based around moderation. It’s about not neglecting your current life, but not neglecting your future life, either.

Many people fall into the assumption that extracting even a few dollars a month from their paycheck is just far too painful to face. That just isn’t true. It’s a balancing act, and what you’re actually giving up right now when you save is your least important expenses. You’re giving up the completely forgettable and wasteful things in life, the things you barely remember. You give up the bag of chips from the convenience store or the celebrity gossip magazine, and it’s those dollars that you actually save for retirement.

What do you get with that savings? You take care of the hardest challenges I described above. You take some of the danger away from tax changes, from unexpected unemployment, and from other factors. Also, with every little bit of savings, you add a bit more flexibility to your retired life.

Without that additional savings, you’re not in a purely dangerous spot, but you do find yourself turning to having to work in your seventies to make ends meet if some of those changes occur.

What can you do, then?

It’s easy. Save what you can. Don’t save so much that it makes life miserable for you today. Just save enough so that the things you have to trim are forgettable. Save a few percent of your income. If your employer offers matching money in your 401(k), save enough to gobble up all of that matching money.

Where do you save it? A Roth IRA is a perfectly good place. So is your workplace 401(k). Don’t get stressed out about the details of it. It’s more important to save a dollar or two anywhere than to worry about the “perfect” place to put it.

If you find that it’s interfering with your life today in a noticeable way, cut back on your savings. The thing is, you’ll probably not even notice it. You’ll just subtly make different choices on some of the things that don’t matter. You’ll buy some store brand garbage bags. You’ll choose a slightly less expensive option for a gift. You’ll jump right in your car after gassing up instead of going inside for a goodie. You’ll buy LED light bulbs and swap out your normal ones as they burn out. Little, forgettable changes.

What do those forgettable changes get you? They get you an easier retirement, one with fewer risks and a bit more support and flexibility.

That’s a pretty good trade, and that’s why you should save a little, even with Social Security.

Good luck!

The post Why Save for Retirement If You Have Social Security? appeared first on The Simple Dollar.

Source The Simple Dollar http://www.thesimpledollar.com/why-save-for-retirement-if-you-have-social-security/

Cheating on My Stylist Saves Me $160/Year — and the Haircuts Aren’t Bad

Tesco Bank online service resumes following fraud hit

Helen Knapman

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Tesco Bank customers can now make online transactions after the bank announced “normal service” had resumed late last night.

Tesco Bank customers can now make online transactions after the bank announced “normal service” had resumed late last night.

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Source Moneywise http://www.moneywise.co.uk/news/2016-11-09/tesco-bank-online-service-resumes-following-fraud-hit

Elderly care crisis looms as majority of savers fail to prepare

Marina Gerner

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With an ageing population and increasing longevity, the UK population is set to face a crisis on how to pay for the elderly care that will be needed over the next decades.

With an ageing population and increasing longevity, the UK population is set to face a crisis on how to pay for the elderly care that will be needed over the next decades.

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Source Moneywise http://www.moneywise.co.uk/news/2016-11-09/elderly-care-crisis-looms-majority-savers-fail-to-prepare