Wyoming Money Talk

W-2's in the mail

2012-01-26T14:20:00.001-07:00

You should receive your Form W-2 by January 31. If you do not receive it, or have questions about the information on your W-2, contact your employer or the IRS.

2012-01-19T12:50:00.000-07:00

January is the month we all begin with our earnest New Year's Resolutions. I found a list on line of Financial Resolutions which have helped me add to my list. The 15 Simple financial resolutions listed on practical money's site are worth a read. http://www.practicalmoneyskills.com/personalfinance/tipsandtrends/15resolutions.php
I also think the list should include revisiting our Record of Important Papers: Updating our home inventory list; Making sure our insurance coverage is still adequate; Updating contact information in our address books and electronic address files(backing them up). Changing batteries in our home alarms. In my financial literacy classes I remind my participants that those of us who live away from our family, need to create a list within our address books of who they should notify should they are having to wrap up our affairs upon our death. None of us are planning to die, but unfortunatley might. This advise came close to home for me this past year when my brother died, I had no idea of who his friends and coworkers were and I felt badly about that. His life had included working and residing in four different states. Mine has been in yet another. We saw each other at family events and talked regularly on the phone, yet I didn't know who all the people were that made up his life. I certainly could have been more honoring of him, had I had a list of those that mattered to him ( outside of his immediate family). A final suggestion---take a finacial literacy class and learn how to use a financial literacy tool.

Baby Boomers: Caring for three generations?

2011-12-12T15:28:00.000-07:00

Baby Boomers, are the next generation set to retire. Saving for retirement continues to be the top priority for this group also known as the Sandwich Generation. Some of Baby Boomers’ stress could be because saving for their own retirement isn’t their only priority. According to the sixth annual Scottrade American Investor Survey, nearly one in four Baby Boomers (born 1945-1966) reported they are financially supporting an adult child and their sandwich is growing. Grandchildren are being added to their financial demands; 9 percent of Baby Boomers surveyed reported they hold a college or education savings account, an increase from 4 percent in 2010. And, while most (72 percent) continue to name retirement as their primary reason for investing, they also reported saving:

• For their own or a family member’s education expenses (11 percent)

• To build an emergency fund (36 percent)

• To reduce their debt (21 percent)

See full article from DailyFinance http://www.dailyfinance.com/2011/12/08/the-triple-threat-to-baby-boomers-retirement-plans/

2011-11-30T14:59:00.002-07:00

A recent Wells Fargo survey finds that Americans are expecting to work longer to ensure they have enough money for retirement, 80 may be the new 65 for many American retirees. Of respondents age 40 to 59, 54% indicate they need to work in their retirement years, while only 34% of the 25 to 39 age group indicates they will be working in retirment.

At one of my last Managing Money in Tough Times workshops the financial reality facing retired Wyomingites became very apparant. We haven't been unaffected by the financial turbulance experienced in our country in recent years. It is a very real and difficult financial challenge for seniors who find themselves facing the reality of having outlived their retirement savings.

A tip from the class.... if at all possible, practice living on your retirement income before making the big decision to leave the workforce.

Retirees aren't planning far down the road, study finds

2011-11-29T06:44:00.000-07:00

Many retirees overlook important issues such as health care costs in their planning, according to a study by the Society of Actuaries. "The study highlights the importance of retirees educating themselves on how to successfully plan for their retirement years while understanding the value of partnering with a trusted financial advisor for guidance," according to the society. Retirees with financial advisers increased to 61% this year, from 56% in 2008.

Strategies for taking required minimum distributions

2011-11-15T12:02:00.000-07:00

Older investors who must take minimum distributions from retirement plans should consider taking them from the smallest of multiple retirement accounts or taking the distribution in-kind if they don't need the cash, certified financial planner Gary Brooks writes. Another tip: Consider taking more than the required minimum in order to shrink a future tax bill, when income tax rates may be higher. Read the full article from The News Tribune (Tacoma, Wash.)

Evaluating buying vs. renting

2011-10-31T11:25:00.000-06:00

Renting a home can be a better option than buying, Walter Updegrave writes. Potential buyers should consider that the housing market probably hasn't bottomed out, the job market is unstable and a down payment and other costs could leave buyers without enough cushion, Updegrave writes. In addition, renting offers more flexibility. Read the full article at CNNMoney.com

National Prescription Drug Take Back Day on Saturday, October 29

2011-10-10T13:59:00.000-06:00

The Drug Enforcement Agency has scheduled National Prescription Drug Take Back Day on Saturday, October 29, 2011, from 10am-2pm for persons who want to dispose of unwanted and unused prescription drugs.

More than seven million Americans currently abuse prescription drugs, according to the 2009 Substance Abuse and Mental Health Services Administration’s National Survey on Drug Use and Health. Each day approximately 2,500 teens use prescription drugs to get high for the first time according to the Partnership for a Drug Free America. Studies show that a majority of abused prescription drugs are obtained from family and friends, including the home medicine cabinet.

Find a disposal site at dea.gov.

Pills, Potions and Profits begins today

2011-10-05T14:53:00.002-06:00

The 11th Consumer Issues Conference begins tonight with a free showing of Big Bucks, Big Pharma at 7pm in the UW Union. The conference sessions begin Thursday morning in Laramie with speakers on business/legal, health and criminal aspects of drugs and consumers. Sessions include sessions on medical marijuana, alcohol and Wyoming law, the proliferation of drug ads targeted directly to consumers, alternative medicine, a panel of legislators focusing on policy issues raised during the conference, and more.

Details and registration are at www.uwyo.edu/consumerconference

Continuing education credits are available for attorneys, educators, health professionals, and family and consumer sciences professionals.

Banking on Mom and Dad

2011-08-30T09:23:00.002-06:00

Forget the empty nest. According to a recent survey, 59% of parents are giving their adult children financial help, from housing (50%) to spending money (29%) to assisting with medical bills (28%). To bring boomerang kids into financial adulthood, the National Endowment for Financial Education suggests offering nonmonetary help, collecting rent to live at home, and charging interest on any loans you make them.

September is Preparedness Month

2011-08-25T09:29:00.003-06:00

September is Preparedness Month -- is your family prepared for an emergency? How would you communicate? Do you have a three-day kit ready?

Information is at http://wyohomelandsecurity.state.wy.us/being_prepared.aspx and www.ready.gov.

Redefining the American Dream -- Nearly Half of U.S. Adults Say Top Financial Goal is Having Enough Money for Retirement

2011-08-22T15:10:00.003-06:00

The National Endowment for Financial Education today released the results of a survey about what Americans' top financial goals are. They found that almost half of American adults say the financial goal that is most important to them is having enough money for retirement. Forty-seven percent of U.S. adults aged 18 and older say having enough money for retirement is their top financial priority, compared to just 17 percent who feel homeownership is their top financial goal.

Ted Beck, president and CEO of NEFE says, "Homeownership has been a traditional indication of achieving the American Dream. But whether it’s due to the decline in the housing market or because of challenges experienced during the economic downturn, people grasp the importance of planning for the future and seem to be having a shift in their approach—from physical to more financial security-based values."

NEFE found that, in thinking about their own financial situations, 57 percent believe they are achieving the American Dream. But the chase isn’t without its obstacles. A majority of US adults (70 percent) agree that a significant obstacle to achieving the American Dream is their inability to save enough, and 54 percent agree that managing their debt is a significant barrier.

Take the LifeValues Quiz

Understanding your financial values is one part to success in managing your money. NEFE has a LifeValues Quiz to help identify the values that drive their financial decisions. To take the quiz, visit www.smartaboutmoney.org/lifevalues.

For tips and information on money management, visit www.smartaboutmoney.org and www.myretirementpaycheck.org.

free webinar on debt management - Aug 16

2011-08-04T10:27:00.001-06:00

In August, you can participate in a personal financial webinar offered by Cooperative Extension personnel from the University of Florida. Sign-up at the link below. These Webinars offer you the chance to improve your finances from home or office with live, interactive on-line classes.

Debt Management

August 16 – 10:30 to 11:30 PM (MDT)

Find out how to:

· Evaluate your level of debt

· Use Power Pay to become “debt free”

· Evaluate debt management options

· Avoid scams

Webinars are provided by the University of Florida Extension in partnership with Lake County Extension, Hillsborough County Extension and Okaloosa County Extension.

Wyoming Residents HUD Emergency Homeowners Loan Program - deadline July 22

2011-07-14T11:13:00.002-06:00

The EHLP program is an opportunity for homeowners who are behind on their mortgage due to underemployment, unemployment, or high medical debt. HUD has a new program that offers unemployed or underemployed homeowners up to $50,000 in mortgage assistance, but you must act quickly. There are 36 applicant spots available in Wyoming through the Consumer Credit Counseling Service. Applicants aren’t necessarily guaranteed a spot, but it would be nice to fill the allocated 36 that are available across Wyoming. Applications are needed by July 22.

To learn how to apply, call RDI Consumer Credit Counseling Service. The deadline for applications is July 22, so you must act fast. Find more on the web at CCCSWYO.org or call 1.877-275-2227. Information is also at http://www.cccsmt.org/ehlp.

Understanding the Minimum Distribution Rules for Your Retirement Plans

2011-03-31T16:03:00.002-06:00

At some point you will have to take distributions from your retirement accounts -- our personal finance colleagues in Extension have been getting a lot of questions on the topic (especially in December!). If people don’t take the first distribution of their money at age 70 ½, they have until April 1 of the following year to take it…or there are fees to pay. Here are a couple resources are a great read to better understand what people will need to consider when it comes time to withdraw the RMD (required minimum distribution) out of IRAs.

Rules for Taking Distributions from Tax-Deferred Retirement Savings Plans, University of Illinois publication: http://web.extension.illinois.edu/countrysidecenter/downloads/26894.pdf

Distribution table link: http://njaes.rutgers.edu/money/ira-table.asp

There are also a number of FAQs on the topic at extension.org. Just search "RMD."

Make Tax Credit Extension Work for You

2011-03-10T14:35:00.002-07:00

You may have noticed a little more money in your paycheck this year. Federal legislation signed into law in December extended a couple of things affecting net pay: a temporary 2 percent reduction in the FICA tax (for Social Security), and a two-year extension of all tax rates.

A worker with an income of about $50,000 can expect to get a take home pay boost of $1,000 over the course of the year, which comes out to approximately $83 per month.

What should you do with an extra $1,000?

A few prudent things include

· Building up your emergency fund. Could you cover several months of living expenses if something happened to you or you needed money quickly?

· Pay down debt -- especially credit card debt. Make sure any high interest debt is reduced. Then put the rest toward an extra payment on your car loan or house mortgage.

· Save for retirement. Invest in your long term financial security by putting the money in a tax-deferred retirement plan, like an IRA.

· Reward yourself. If you're covered, it's okay to treat yourself. But shop around for good deals.

Check Facebook Security Settings

2011-03-08T16:28:00.002-07:00

While on Facebook, look at your URL address; if you see "http:" instead of "https:" then you do NOT have a secure session and you risk getting hacked and your personal information may be at risk. Go to AccountAccount SettingsAccount Security and click Change. FB defaults to the non-secure setting.

It's also worthwhile to take a look at the other settings that FB may have as a default.

Delinquent Mortgage Borrowers Should Contact Lenders

2011-01-11T11:10:00.001-07:00

The number of delinquinces in Wyoming has been on the rise. If you're under stress, remember that doing nothing is the worst thing a delinquent borrower can do. And the longer the delay, the worse it gets.

US Comptroller of the Currency John Dugan says, "The record shows that the early stages of mortgage delinquency are the most crucial. The sooner borrowers reach out for help, the more options they have, and the more likely foreclosure may be avoided."

In half of all foreclosures, lenders say borrowers do not make contact with them. Yet, more than one-third of those who reach out for assistance are successful in finding alternatives to foreclosure.

Homeowners experiencing financial difficulties to call 1-888-995 HOPE, a toll-free hotline staffed around the clock, seven days a week, by 85 qualified housing counselors from agencies approved by the Department of Housing and Urban Affairs.

More household energy help for Wyoming

2010-09-24T09:48:00.002-06:00

The UW Deptartment of Health and Human Services has released about $300,000 to help eligible low-income Wyoming residents with home energy costs.

If you or someone you know is interested, the specific program is the Low Income Energy Assistance Program. It will help heat and weatherize a home.

Contact the Wyoming Department of Family Services via info at http://dfsweb.state.wy.us/.

College graduates break even by age 33

2010-09-22T10:27:00.002-06:00

Some young people wonder whether going to college is worthwhile -- are recent report reminds us that it is -- even considering the expense.

A typical student attending a four-year university will have college pay off by age 33. They earn enough by then to compensate for being out of the labor force for four years and for borrowing enough to pay tuition and fees.

The report Education Pays, released by the College Board Advocacy and Policy Center, notes that college pays off very well over the course of a life. It also notes that unemployment rates of increased faster among people with just a high school diploma and that college graduates are more likely to exercise, volunteer, vote and read to their kids, are less likely to be obese or smoke.

So What’s 75 Cent?

2010-05-26T12:57:00.001-06:00

You could SAVE $195 a year by buying your soda from the grocery store rather than a vending machine every day. (Assuming one soda is bought every day of the work week: Vending Machine cost is $1.25, Grocery Store cost is $.50)

Does Your Debt Need a Diet?

2010-05-22T12:56:00.000-06:00

If you had a $2,000 credit balance at 18% interest and your minimum payment is 4% of the balance or $80, it will take you about 9 years and 6 months to pay it off and you'll pay $1,116 in interest. By paying an extra $15 a month on this debt, you would SAVE $694 in interest and pay it off in 2 years and 2 months.

Nibbling Away at Your Bottom Line?

2010-05-18T15:52:00.000-06:00

If you forego a daily snack and invest the money instead, in 5 years you will have more than $4,000 saved. (assumption: $2/day, 5% yield)

New Credit Card Rules

2010-05-11T14:48:00.000-06:00

The 2009 Credit CARD Act provides changes that may benefit the consumer. Some of the new rules include:

When credit card company plans to increase your rate or other fees, they must send you a notice 45 days before they can

increase your interest rate;
change certain fees (such as annual fees, cash advance fees, and late fees) that apply to your account; or
make other significant changes to the terms of your card

Due dates must be the same day each month.

Creditors are prohibited from using double cycle billing.

How long will it take to pay off your balance? Your monthly credit card bill will include information on how long it will take you to pay off your balance if you only make minimum payments. It will also tell you how much you would need to pay each month in order to pay off your balance in three years.

Can’t charge an “over the credit limit” fee unless the consumer has elected to permit the creditor to allow transactions over the limit.

The complete list of these changes are available at the Federal Reserve Board.

Should I close or cancel my credit cards?

2010-05-08T12:45:00.000-06:00

Before you make that decision, consider all factors. One thing to keep in mind is that part of your Credit Score is determined by the percentage of available credit that you use.

For example, if you have 4 credit cards with credit limits of $5000 each ($20,000 total available credit) and have a total debt of $1000, you are only utilizing 5% of available credit. If you canceled three of the cards, you would reduce your available credit to $5000 and you are now utilizing 20% of your credit. This may have a negative effect on your credit score. The same thing applies when you lower your credit limits.

The ideal solution is always to pay your bill in full each month! That leaves you with available credit and can help your credit rating!

Finding Money to Save & Spend

2010-05-05T12:40:00.000-06:00

How do you “find” more money to save and spend? No matter what resources we have or tradeoffs we are willing to make, we all like to have more money. We might spend it all for a special “want”, pay off bills, or save some or all of it. Below are a few ideas to get you started:

· Pay extra attention at checkout. Watch price scanners and check receipts for price errors.

· Swap clothes with friends, family, or neighbots.

· Change furnace and AC filters regularly and have units checked annually.

· Replace high wattage light bulbs with compact florescent or low wattage incandescent bulbs

· Avoid impulse buying: don’t carry too much cash; leave credit cards at home!

· Balance your checking account (paper or on-line) at least monthly. This will help you avoid costly fees.

· Walk more and drive less.

· Swap/barter services.

Save Money at the Pump!

2010-04-28T14:35:00.000-06:00

Adjust Your Driving

• Stay close to the speed limit. Lower speeds provide greater fuel efficiency than higher speeds.

• Keep your car light by leaving heavier objects at home. The more weight that your car carries, the more fuel it needs.

• Use cruise control for long stretches on roads like freeways, except on hills.

• Try to avoid toll roads if possible. You don't have to pay the toll and you have fewer stops and starts if you do not have a toll pass.

Organize

• Plan your errands so you do not have to make multiple trips to the same general area during the week.

• Use the most fuel efficient vehicle you own.

• Coordinate errands with a neighbor; take turns driving to the grocery store.

• Make a list of what you need for the week to make the fewest trips possible.

Alternate Transportation

• Take public transportation or carpool.

• Ride a bicycle.

• Participate in community car programs where cars are available for "loan" use by residents at sites throughout the city.

For more tips check out: http://www.fueleconomy.gov

April is Financial Literacy Month in Wyoming

2010-04-26T08:58:00.000-06:00

Governor Freudenthal has proclaimed April 2010 as Financial Literacy Month in Wyoming. Read the proclamation: http://governor.wy.gov/proclamations/financial-literacy-month3.html

Pay down your debt

2010-04-24T12:32:00.000-06:00

Minimum payments are often set very low, so it could be years before you are debt-free if that is all you pay.

New credit card legislation now requires creditors to indicate on your monthly statement how long it will take to pay the debt. Look for that information and plan to pay your debt sooner. How? Paying more than the minimum! You may be able to delete your debt by the end of the year or, at the very least, make a significant dent.

If you have multiple accounts, focus your extra payments on one creditor at a time. Many people like to start with the debt with the lowest balance because it can be paid off the soonest.

However, you will save the most money by starting with the debt with the highest interest rate. If you cannot pay extra on a regular basis, try to do it when you receive periodic income, such as a tax refund or bonus.

Small Change, Big Opportunity

2010-04-20T15:30:00.000-06:00

Thinking of pocket change as an investment opportunity may seem like a bit of a stretch……Yet, the United States Treasury reports that Americans hold about $15 billion in loose change, It is estimated that the average household accumulates $50 of change every month. Invested over 20 years (@ 5% interest) would yield over $20,000.

Saving change at the end of each day or week can add to personal savings or be used to fund extras. Use your change for an evening out each month or to pay extra on a bill.

Saving that change can also help you reach longer term goals like a weekend getaway or upgrade for the family's computer, television or other recreational equipment (such as new bicycle).

So, consider saving your change! It’s a great start to a savings plan

Rapid Refund Returns

2010-04-15T12:28:00.000-06:00

Beware of those “rapid refund” programs offered at various tax preparers. Sure, it sounds great. What could be better than getting your money FAST?? You may be encouraged to agree to an instant or anticipation option. These are also called RAL’s, or Rapid Anticipation Loans.

Don’t take the bait! This is not your refund—it is a loan. AND, it is a very high interest loan. The average interest rate for 2008 RAL’s was 123%!!!

If you file electronically, even if it is through your tax preparer, the IRS will deposit your refund directly into your bank account within a week or two. That will give you time to plan how to best use your refund. Planning how to spend the money makes good sense!

Tax Refunds

2010-04-12T14:08:00.001-06:00

Getting a Tax Refund? You might be excited to know that you’re getting a refund, but there are a few things to consider.

If you are getting money back from Uncle Sam, use it wisely. Use form 8888 and split your refund. Put some in checking to spend on bills, family fun, or special purposes. Put the rest into savings! We all need an “emergency” cushion for auto repairs, medical bills, or unexpected events.

But, don’t get too excited about that refund. Getting money back means you’re essentially lending money, interest free, to the government for the year. Better to have those dollars in YOUR account! So, if you’ve been getting big refunds or have had changes in your life (marriage, divorce, baby, increase or decrease in income), adjust the withholding allowances on your W-4 form. You can do that for your 2009 taxes now at irs.gov. Use the withholding calculator to determine the correct figure for you. Then print a new W-4, fill it out and turn in to Human Resources/Payroll department.

Home appliances rebates available

2010-04-09T14:53:00.001-06:00

The WY Business Council is offering rebates on residential appliances purchased after April 15, 2010. All products must meet ENERGY STAR efficiency criteria. Go to www.wyomingrebates.com for full details.

Federal Tax Refund? Get a Savings Bond

2010-04-08T12:07:00.001-06:00

If you are receiving a federal tax refund from the Internal Revenue Service, you can choose to use that money to purchase U.S. savings bonds.

Here are the top six things you need to know about using your federal refund to purchase savings bonds.

1. You may use a portion of your refund to purchase up to $5,000 in U.S. Series I Savings Bonds.

2. The total amount of saving bonds purchased must be a multiple of $50. Additional money over the specified amount must be deposited into another financial account – such as a checking or savings account.

3. The bonds will be issued in your name. For married taxpayers filing a joint return, the bonds will be issued in the names of both spouses.

4. You will receive the U.S. savings bonds in the mail.

5. You normally select this option by filing Form 8888, Direct Deposit of Refund to More Than One Account.

6. Form 8888 has step-by-step instructions on how to select this option and how to specify the amount of your refund you want to use to purchase savings bonds.

For more information about the U.S. Savings Bonds refund option, visit IRS.gov.

This message provided by your local Cooperative Extension Office and America Saves. Become a Saver today!

Lifesaving strategies for financial crisis

2010-04-06T15:42:00.003-06:00

Unemployement, illness, famiy problems and careless spending may cause you to become in over your head in debt. Some lifesaving financial actions to consider:
1. Admit you have a problem
2. Discuss the problem with your family. Call a family meeting and explain the situation. everyone will have to pull together to get out of the "deep water". It won't be easy to say "we don't have the money to..." but saying it, and everyone recognizing the situation, is a big first step.
3. Stop spending. Limit all spending to items basic to survival. Food, shelter and essential medical treatment
4. Stop using your credit cards. Consider cutting them up. And remember destroying the cards does not eliminate the debt nor does it close the account.
5. Return unused items you have purchased for which you can receive a full refund and apply that refund to your debt.
6. Sell items you can live without and apply the money toward your debt. A garage sale, a consignment shop or an online selling service can be a source of funds to pay off debt.
7. Open all mail from creditors and read the statements carefully. Make a list to help you know exactly what you owe.
8. Contact creditors. Don't ignore bills or other communication. Explain the situation and send them a written summary of what actions you are taking to deal with your debt. Don't promise what you can't deliver.

Seven Steps to Simplify Your Finances

2010-04-05T15:30:00.001-06:00

If time is a precious commodity for you, here are eight ideas to save time and reduce the stress and anxiety of managing your financial affairs.

1. Enroll for direct deposit. It eliminates trips to the bank and keeps your money working longer.

2. Sign up for overdraft protection. By linking your checking account to a line of credit you avoid the cost, hassle and embarrassment of a bounced check.

3. Establish an automatic savings plan. Regular, automatic transfers to a savings account will add up.

4. Use electronic bill paying. Eliminate the dreaded task of writing checks.

5. Consolidate your financial relationships. Dealing with one institution makes everything easier.

6. Consider personal finance software. Many programs make handling your finances easier and quicker.

7. Build a safety cushion. Be ready for unexpected expenses or use some extra for a special vacation.

8. Review your investments. Make sure your asset allocation matches your time horizon and risk tolerance.

Earned Income Tax Credit

2010-04-03T11:49:00.001-06:00

If you work hard but you don’t earn a high income, then you may qualify for the Earned Income Tax Credit (EITC). The EITC is a credit for people who earn low-to-moderate incomes. It can reduce your taxes, and can mean a refund. More information is available from the Internal Revenue Service at www.irs.gov or contact your local IRS office.

Make Use of Tax-Credit House Repairs

2010-03-29T15:00:00.000-06:00

Thinking about making some home improvements? Don’t let federal stimulus money go to waste! Until December 31, 2010, homeowners can take advantage of a national tax credit of 30 percent of the cost, up to $1,500, on a variety of energy-saving products. Insulation, windows and doors, roofing, heating, ventilating and air-conditioning systems, tankless water heaters and alternative energy programs, such as solar panels and wind turbines, are covered. Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010. For more information, www.energystar.gov has some useful information. Ask your tax professional for details on what specific improvements may qualify.

Get Financially Fit

2010-03-27T11:44:00.000-06:00

“Strengthening the health of one’s financial management is a resolution that would benefit all Americans,” says Ted Beck, president and CEO of the National Endowment for Financial Education® (NEFE®). “The greatest gift you can give your family is financial stability.

Especially in a recession, it’s important to set a plan in motion to get out of debt and prepare for the uncertainties of the future.” Beck suggests these five basic tips to shape up your finances:1. Know where your money goes.2. Get control of debt3. Start saving today.4. Protect your assets.5. Organize your financial records.

This also is a good time to review your credit report. You can order free a detailed summary from the three major credit reporting agencies—Equifax, Experian and TransUnion—by visiting www.annualcreditreport.com or by calling (877)322-8228.

Source: NEFE

FREE Annual Credit Reports

2010-03-25T11:36:00.000-06:00

Did you know that you’re entitled to a free annual credit report with each of the three national consumer reporting companies? By checking your credit report regularly, you can ensure that no loans, credit cards, or other financial obligations have been fraudulently initiated in your name.

Instead of requesting your free annual credit report from Equifax, Experian, and TransUnion all at the same time, request them at different times of the year. That way, you’ll be able to check your credit three times throughout the year at no cost. Get yours at annualcreditreport.com, or by calling (877)322-8228. Beware of imposter sites with similar names.

Budget Helpers

2010-03-12T09:24:00.004-07:00

There are number of free programs available on the web for helping people manage their money. Here are four – each is different, so play around with them and find something that works for you.

PearBudget

A downloadable spreadsheet that runs in MS Excel – functional and easy to use. It advertises being able to set up a budget in 10 minutes and maintain it with two 10-minute sessions a month. Creator Charlie Park originally built it for his own use, saying he couldn’t afford a commercial program (like MS Money or Intuit’s Quicken). Download at pearbudget.com.

SimpleD Budget

A downloadable, Windows-based program, SimpleD Budget was created by programmer Soichi Hayashi for his wife. It has charts and visual aids to see where you’re at on expenses and income versus the amount you’ve budgeted. When setting up the program it offers templates for various stages of life (college student, parent, etc) that provide different categories for expenses. Download at http://sites.google.com/site/dsbudgethome/.

MySpendingPlan.com

A web-based budget tool, My Spending Plan can be managed by different people at different locations. Offered by the American Homeownership Association, it offers more than just budgeting; you can also set up reminders about bills. However, the site includes commercial promotions, and because it is online, it operates slower than the downloadable programs. Also, the tool is in the beta stage, so it’s a work in progress. Sign up at myspendingplan.com.

Microsoft Office Personal Budget Template

A downloadable spreadsheet that runs in MS Excel – a very basic budget, so it’s very easy to use. Microsoft offers several choices. The simplest is the ‘personal budget’ in which you can track expenses and income for a year on one page, but there is also a personal monthly budget (which provides detail for one month only, not a year), a family monthly budget, and a number of other budgets for things such as job expenses, events, a garden, a wedding, and marketing. There’s also a personal financial statement (which is a good idea to have so you can track your net worth). Download at office.microsoft.com/. Search for ‘personal budget.’

It’s worthwhile to take a look at them all – it may be helpful to build a budget using the categories of one system, then use, for example, SimpleD to track the spending.

Of course, there are other, less technology-heavy systems. A spiral notebook and a pen and calculator are one. The envelope method is another. The envelope method goes like this: get a separate envelope for different household expenses such as housing, food, travel, etc., allocate expenses to the different categories according to your income, put the allocated money in its respective envelope, and then use the money from a particular envelope to pay the corresponding bills. The envelope system was designed for cash – actual money would go in the envelope. But you could modify the system so that you just write the amount of money assigned to each category (envelope) on the outside, then subtract that money from the balance. Then when you get to zero, you’d have to quit spending in that category or 'move' money from another envelope.

Bugeting is a basic financial management tool -- if you've signed up for Wyoming Saves and dedicated yourself to saving money each pay period, then make sure you follow up and track your savings.

Home Heating Help Program Deadline Extended to March 31

2010-02-26T13:10:00.000-07:00

CHEYENNE – The deadline for applying for a home heating help program has been extended for this season only, according to the Wyoming Department of Family Services.

LIEAP, pronounced lee-ap, helps income-eligible households cover the costs of heating their home. State residents now have until March 31 to apply for LIEAP.

“We’ve extended the deadline this year to March 31 to encourage more people to apply,” says LIEAP manager Brenda Ilg. “The program helps thousands of households, and we know many are struggling this winter with the economic downturn.”

To get a LIEAP application, visit dfs.wy.gov and print one, go to your local DFS field office or senior center or call 800-246-4221 and ask that an application be mailed to you.

Applications must be postmarked on or before March 31.

“We want to encourage people to apply, especially those folks on fixed and low incomes, such as retirees, people with disabilities and families with young children,” Ilg says. “It’s cold out there, and we want to help keep more Wyoming families safe and warm this winter.”

Money Management in Tough Times

2010-02-26T11:32:00.004-07:00

The gloomy forecast for the economy has many people asking questions about what actions they might take to help improve their personal or family situations. Money Management in Tough Times is a new focus for eXtension which can help. At www.extension.org/Financial_Crisis you will find resources are organized into five categories: business, families, farms & ranches, individuals, and youth. The articles and reports found in these categories are the "best of the best" resources available on finances today.

Another great resource is the Wyoming Saves program. Accept the challenge to increase your savings and/or decrease your debt by REGISTERING for Wyoming Saves now. You can also follow Wyoming Saves on facebook at http://www.facebook.com/WyomingSaves.

Wyoming Saves is a program of the University of Wyoming Cooperative Extension Service.

Turn Your Dreams into Reality!

2010-02-17T22:24:00.000-07:00

Do you dream of vacationing in the Caribbean? Or retiring in a warm location and spending your days golfing? What about dreams of sending your kids to college or driving the sweet ride you’ve seen advertised recently? By turning your dreams into SMART Goals you can turn your dreams into reality.

The SMART in “SMART Goals” is an acronym for Specific, Measurable, Attainable, Relevant, and Time-bound. People who make their goals SMART are more likely to achieve them.

A specific goal is one that is clear and easy to describe. “I want a nice house” is not very specific; however, “I want a house with three bedrooms, 2 baths, and a 2 car garage” is specific.

A measurable goal can be quantified. Being able to quantify your goal ensures that you can track your progress and will know when you have achieved it. A common way of making your goal measurable is to specify a dollar amount, such as “saving $5,000 toward a car down payment.”

An attainable goal is one that you can achieve. It may not be an easy goal to reach but it should be doable. For most of us “riding the space shuttle” would not be very attainable, however, “spending a week in Mexico” is probably doable with a bit of work and planning.

A relevant goal is one that has meaning for you and your life. It reflects who you are and what you value. A goal to remodel the kitchen would not be very relevant for someone who neither cooks nor entertains but it would be relevant for someone who values these activities.

A time-based goal is one that has a specific end date. Without a specific end date, it can be too easy to delay making progress toward achieving your goal. By setting a definite end date you can determine if you are on track to achieve your goal. If not you can make the appropriate changes to your actions or even to the goal itself.

Having turned your dream into a SMART Goal, you can now determine what steps are needed to accomplish your goal. If your goal involves having a set amount of money you will need to divide the amount of money you will need by the number of months until you will need the money to determine how much you will need to save each month. For example, if you will need $2,400 in 2 years for your goal, you will need to save $100 a month.

To help you achieve your goals, be sure and sign up for Wyoming Saves. Wyoming Saves is an educational program that is open to anyone interested in building wealth and reducing debt. The program runs from March 1st to May 31st. Register here for Wyoming Saves.

Registration open for Wyoming Saves

2010-02-11T21:07:00.003-07:00

Register now for Wyoming Saves. Educational articles will begin arriving on March 1st. Be sure to fan the Wyoming Saves facebook page to get all the latest updates and participate in the online discussions.

The Recessions' "Silver Lining"

2010-01-27T09:26:00.001-07:00

Our nation’s current economic state has been like a dark cloud over both consumers and businesses for well over a year. While words like ‘foreclosure’, ‘bankruptcy’, and ‘bailout’ have been added to our day-to-day vocabulary, it is hard to imagine a silver lining to this dark cloud of recession.

However, behavioral economists – the people that study the way human beings make money decisions – are noticing a positive and promising trend in one way Americans have responded to the recession. In the last year, when unemployment rates skyrocketed, along with rising foreclosures, bankruptcies, and bank failures, a surprising thing occurred – Americans, on average, saved more money.

The savings rate of Americans grew in 2009 for the first time in decades. Recent data released by the US Department of Commerce’s Bureau of Economic Analysis shows the savings rate rose to nearly 7% in the last quarter of 2009. This is the highest rate since the early 1990s and is predicted to grow to nearly 10% in the next one to two years.

So, what is behind this seemingly counter-intuitive phenomenon? Conventional wisdom would tell us that during these dire times of job loss and loan defaults, our rates of personal savings would decline as we struggle to make ends meet. While nearly all households have felt some type of fiscal crunch, stashing cash in savings still became a priority.

When we feel financially secure and the economic climate seems healthy, we tend to put our money into ‘better’ uses like home renovations or family vacations. But, when the economic turmoil began to make news and the unemployment rate started to leap, so did our savings rates.
Suddenly-insecure Americans decided saving money in emergency reserves is a better use of our hard-earned and increasingly scarce funds, since the future seemed a bit more uncertain.

Unfortunately, for the many individuals and families that scrambled to build emergency savings accounts over the past several months, saving money may be an all-too-easily-forgotten practice once the fear of the recession subsides.

We will all be much better off if this crash-course lesson in saving money isn’t abandoned at the next sign of economic recovery. The silver lining of this economic cloud will shine brightly if some of these belt-tightening techniques become long-term behaviors.

We’ve learned now that we can trim our budgets and delay some purchases when our future is uncertain and increased security is needed. Let’s continue the trend of making personal savings a priority, so the next time a dark economic cloud appears on the horizon, we’re prepared.

How The Web is Transforming Personal Finance

2010-01-25T08:49:00.000-07:00

I just read the article "How The Web is Transforming Personal Finance" and found it very interesting. I'm not sure how thorough the authors have been in reviewing the various online money management services. It is quite possible the authors are developing their recommendations based upon who is willing to "sponsor" the article series. That being the case, the article should at least get you started in your research of which online money management service might be right for you. I know I am going to look into a few that were mentioned in the article and do a search to see what else is available that wasn't mentioned.

Julie

"I Can Cope": Too Many Bills, Not Enough Money?

2010-01-13T17:58:00.000-07:00

On Thursday, Jan. 21, 6:30 to 8:30 p.m., Kathleen Peterson from the Cheyenne office of Consumer Credit Counseling Service of Northern Colorado and Southeast Wyoming will discuss available resources and strategies for dealing with overwhelming debt, including what creditors can and cannot do and when to consider bankruptcy.

There'll be a Q&A session follwing this free lecture that is open to the public.

The talk takes place in the Cottonwood Room of the Laramie County Library, 2200 Pioneer Ave.

Call Greta Morrow at 635-3943 or Janice Triplett at 638-8949 for more information.

Free Credit Report Dot Com: Great Commercials, Bad Advice!

2009-12-30T14:20:00.002-07:00

You’ve probably seen the television commercials and had the infectious jingle playing through your head for days. We are serenaded by the words, “Free Credit Report Dot Com!” sung by a guitar-playing trio to their television audience.

The musical threesome that star in these commercials find themselves in a multitude of predicaments – dressed as pirates working in a low-paying tourist restaurant, driving a nearly-defunct ‘junker’ off of a used car lot, or flailing wildly on a rollercoaster ride.

And what is the reason for all of their mishaps and misfortunes? Listening closely to the lyrics of the catchy tunes, we learn their troubles have one simple cause: they haven’t reviewed their credit report.
Each of us should access and review our credit report regularly. The consequences of ignoring our credit report may not be the comical situations portrayed in television commercials, but there are consequences nonetheless.

A credit report is a detailed report of your history with credit, and it is a primary source of information used by creditors to determine whether you’ll be given a loan, or what interest rate you will qualify for. It is also a tool to detect if you’ve been the victim of identity theft or fraud.

The overall message of the commercials is sound – it’s a good idea to get acquainted with our credit report. However, while the television jingle touts a ‘free credit report’, it is far from free. When you visit their website you will learn about a monthly credit monitoring service you will be subscribed to after signing up for the ‘free’ service.

While some companies charge for this service – and obviously, business is going well judging by the amount they can spend on catchy television jingles – there is no reason to pay for your credit report.

In 2003, Congress passed the Fair and Accurate Credit Transactions (FACT) Act that provides consumers one credit report from each of the three credit reporting companies every twelve months at no cost.
Accessing your free credit report at no cost has been made easy by visiting the website: www.annualcreditreport.com or calling 1-877-322-8228.

Take advantage of this free service and get acquainted with your credit report. And next time you hear the commercial with the catchy “Free Credit Report Dot Com” jingle, just sing along – but don’t follow their advice!

read the fine print on credit cards

2009-12-18T10:49:00.002-07:00

An ad in a New York paper encourages consumers to call for a preapproved credit card...the interest is 79.9%. Much ado was made a few months ago when President Obama came to the aid of a woman who had been charged exorbanent penalities when a University charged tuition to her credit card which was over its limit.

The bloated APR being chardged by the First Premier Bank comes following the recent legislation which limits caps to fees banks can charge to 25% of a card's credit limit. A recent mailing for a preapprded First Premier card lowers fees to just that limit...$75 in the first year for a credit line of $300. The new law doesn't set a cap on the interest rates credit card companies can charge. Hence this particilar card is charging 79.9% interest. These terms are totally unbelievable.

We need to read the fine print. We've been getting new information about our accounts as banks prepared themselves for how they would be conducting business starting in February when the new regulations take effect.

Ratings of Insurance Providers

2009-12-03T19:15:00.007-07:00

We often hear that we should check the ratings of insurance companies when considering insurance. Mainly this is to assess their financial stability -- several companies are well known for their ratings, such as AM Best. I was asked the other day in a class about ratings for insurance companies on other areas, mainly customer service. A couple sources I know of go beyond just financial stability and get into things like prompt payouts, customer service and general satisfaction.

The first is JD Power, http://www.jdpower.com/. Their website is easy to navigate and has some easy to use ratings for different types of insurance companies.

The other is Epinions, epinions.com or www99.epinions.com/Insurance. On this website actual customers write about their experiences with a particular company. It is more random than JD Power, but the insight gives direct comments on companies.

Funds available to Wyo. residents to install renewable energy systems on homes

2009-12-02T06:26:00.001-07:00

CHEYENNE – The Wyoming State Energy Office (SEO) is using over $2.2 million in federal funding to launch a program that will help homeowners defray the cost of installing renewable energy systems.

The funding is part of the $3.1 billion American Recovery and Reinvestment Act (ARRA) appropriation to the U.S. Department of Energy to fund state programs that prioritize energy savings, increase the use of renewable energy, and create or retain jobs.

Wyoming homeowners may apply to the SEO for grants of up to $10,000 or 50 percent of project costs, whichever is less, for installing photovoltaic (solar), small wind, and ground source heat energy systems at their homes. Grant awards are based on project size, will be allocated on a first-come basis, and are not retroactive for systems already installed or under contract to be installed.

“This round of federal funding will expand the state’s already successful photovoltaic program, giving residents more than one way to implement a renewable energy system at their home,” said Shannon Stanfill, SEO program manager. “Additionally, residents who install one of these systems may apply for a 30 percent tax credit from the federal government, bringing further savings at tax time.”

Provisions for each renewable energy system include:

Ground source heat installations: Grant reimbursements are $2,000 per ton (the measure of the output of a heating or cooling system equaling 12,000 BTU) with a maximum of 5.5 tons in a closed loop vertical or horizontal system. Ground source heat installations must be replacements for other residential heating and cooling systems.
Small wind generation and photovoltaic (solar panel and components) installations: Residents may apply for grants of up to $2,000 for every installed kilowatt (kW) up to a maximum of 5kW ($10,000). Grant reimbursements are calculated once the award recipient sends documentation of the installed kW amount to the SEO. No name plate installation of 20kW or above will be allowed. Solar panel components without solar panel installations, such as batteries, are eligible for reimbursement of 50 percent or up to $2,000 whichever is less. A maximum of 20kW for installations applies.

Applications are available Dec. 1 and may be downloaded at http://www.wyomingbusiness.org/economic_stimulus.aspx#energy. Applications may be electronically submitted, or mailed to: Wyoming State Energy Office, 214 W. 15th St., Cheyenne, WY, 82002.

Residents may apply for multiple grants, but only one grant application per renewable energy category is allowed. Applicants may not enter into any contracts using or committing these funds until after a grant award is made and a grant agreement is signed by all parties.

For questions regarding the program, please contact the State Energy Office toll-free at 1.888. 232.5390.

The mission of the Wyoming Business Council is to facilitate the economic growth of Wyoming. For more information, please visit www.wyomingbusiness.org.

Holiday Spending

2009-12-01T10:05:00.005-07:00

It's that time of year again. December is in, your Thanksgiving leftovers are out and the holiday madness has fully commenced. If you are one of the lucky ones, your Christmas shopping is almost complete. If, however, you are like me and many other Americans, you are facing a month full of expenses with very little of it tackled. What to do?

The good people over at MSN Money have written an article that will help you navigate the holidays without completely busting your budget. "10 Holiday Money Mistakes" outlines ten of the biggest mistakes made by consumers each holiday season while giving readers ideas on how to avoid those mistakes this year. The article can be found at:

http://articles.moneycentral.msn.com/SavingandDebt/SaveMoney/10-holiday-money-mistakes.aspx

Great article at MSN Money

2009-10-20T09:12:00.005-06:00

I just found a great article today on MSN Money that I thought I would share. It is titled "4 Recession Regrets--And How to Fix Them." During hard times it is easy to kick yourself for money mistakes you might have made. This article gives some great advice on how you might atone for those mistakes. Just a warning: if you are expecting a miraculous quick fix, you will be disappointed. These are solid tips to help keep you from making the same mistakes in the future. So enjoy the article!

It can be found at:

http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/4-recession-regrets-and-how-to-fix-them.aspx

grocery shopping

2009-10-17T19:42:00.002-06:00

I made a visit to the grocery store this afternoon. Perhaps because it's off season here in Jackson, I seemed to know someone in every isle. I happened upon a couple having a discussion about the cost of a name brand item and a store bought item. When they spotted me, I was asked " do you know if there's any difference between this store brand item and the name brand item, other than cost?"

It's been a few years since I taught Supermarket Strategies, a class I use to love to teach. I recalled several occassions I've had the opportuntiy to tour food processing plants in my travels and have seen first hand the same product being put into different containers with various company names. Sugar is sugar, salt is salt regardless of the label on the container. I was particularly amazed to observe that the Tobassco Sauce we all love is manufactured at Avery Island in Louisianna and the same company puts the same sauce into bottles for just about every country in the world under just about as many labels.

I thought our blog readers might enjoy seeing what the Consumer Reports found the difference between name brands and generics to be... here's the link.
http://www.chathamjournal.com/weekly/living/food/consumer-reports-store-brands-vs-big-name-brands-90915.shtml

The saying a penny saved is a penny earned is a fact which can add up to dollars if consumers are mindful of which product they select from the shelves at the grocery store

Kids and School Shopping: Hit the books, NOT your wallets!

2009-10-16T10:20:00.003-06:00

With the lazy days of long over in most of Wyoming and the flurry of fall activities filling our calendars, we may notice a change in the stress level of parents and students across the state. Often, high-cost school supplies, activity fees, clothes, and other must-haves for kids can add a major stressor to family life.

To help the keep spending within limits and teach important life lessons for the school year and beyond, here are some strategies to help your students hit the books, but not your wallets, this school year.

1. Get the kids involved in planning when they have “wants” or “needs” on the shopping list. Have your technology-savvy kids search on-line for best prices, map the routes between stores for your next shopping excursion, and create a budget spreadsheet to track their spending.

2. Share the budgeted amount you can afford for the semester or school year on clothes, supplies, and extra-curricular events, and enlist their help in choosing how the money should be spent. Your kids will likely have to make some hard choices and a few things may fall by the wayside, but the valuable lessons they learn will be much more important in the long-term.

3. Also give them an opportunity to develop creative solutions to their budget shortfalls like selling outgrown but usable clothing, furnishings, or toys at a consignment store or on-line at eBay or Craigslist.

4. Long after the school-year is underway, stores often offer deep discounts on supplies and clothing to make room for merchandise for the fast-approaching holiday season. You can capitalize on some mid-semester school shopping with deep discounts. By then, your kids have a better idea of what they want after seeing the popular trends during the initial weeks or months of the school year.

The hopeful result:

Parents will spend less, and kids will better understand the reasoning when you say "yes" or "no” to their purchases. You will give them practice shopping for bargains, prioritizing their wants, planning ahead, and sticking to a budget ... and those are some important lessons that will live long after their school days are through.

Make Use of Tax-Credit House Repairs

2009-10-12T10:10:00.002-06:00

Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010. Some improvements are eligible until 2016. The www.energystar.gov has more information. But I'd recommend talking with your tax professional for details on what specific improvements may qualify and the information you'll need to keep (the receipt is an obvious thing, but other information is needed too). As the energystar website makes clear, not all energystar rated products are eligible for the credit.

Finally remember that a tax credit is a dollar-for-dollar reduction in your taxes -- pure money.

Save money - buy spices & herbs in bulk!

2009-09-29T15:36:00.002-06:00

One of the things I always shake my head at in the grocery store is the pre-packaged herbs and spices. Not long ago I found a retailer in my area that offers herbs and spices in bulk containers -- I measure out exactly how much I need, the cashier weighs it, and I save dollars per ounce. What an epiphany it was!

Buying in bulk provides a tremendous cost savings and typically fresher products. Bulk herbs and spices are not everywhere in our state, but I'm sure there are numerous online vendors.

Apart from the lower cost (b/c we're not paying for packaging, large processing facilities or national marketing), bulk is also less wasteful -- I usually only need a small quantity of each product; if I had a whole jar it would likely lose its flavor and I'd have to throw it out.

And now that I buy bulk, I have a reason to reuse the nice little glass jars from my previous pre-packaged buying mistakes (rather than have them stored at the landfill -- I heard today that Cheyenne has a mountain of glass that they're waiting for someone to recycle).

Happy bulk shopping!

Understanding Your Credit Score

2009-09-25T08:15:00.001-06:00

As I was thumbing through a copy of Readers Digest the other day I came across a great article explaining how your credit score is computed and what your score means to you. Check it out at Readers Digest online and let me know what you think or if you have any questions that I can answer.

Julie

Access to Credit Card Information

2009-09-23T16:48:00.006-06:00

I'm just returning from a trip having experienced a travelers nightmare. I was standing in the check out line of a busy store and realized that my credit card was gone. Immediately my mind raced through "when did I last use the card" and "where did I put it". I stood in that line and proceeded to thumb through my wallet fighting a sense of panic and dread. Fortunately I had enough cash to cover the transaction. So I proceded to my car to empty the wallet (twice) before I continued the routine of checking every pocket of my travel purse.....the card was gone.

I teach money management and have completed my lesson "What's in your wallet"....a lesson which approaches the topic of identity theft and the reality of how difficult it is to recreate what we have in our wallets and purses from memory. I had a list of my card numbers and the companies phone numbers in a file one thousand miles away, locked in a file cabinent that noone was going to be able to get into. EEgaad, so much for being prepared.

Fighting back the panic I decided to retrace my steps of the previous evening. I had a receipt from the last purchase I had made and couldn't imagine why I'd have a receipt and no credit card. Fortunatley, an honest waitress realized that I had left the card with the signed receipt and she had put the card in the managers office. I drove through rush hour traffic in a strange town to retrieve that card as quickly a possible. And thanked God for honest people all the way back to the restaurant.

The lesson learned which I offer to you today. It is a wonderful thing to keep back up records secure at home. But we need to think about the possiblity of being one thousand miles away and having noone at home to access the locked file.

I've come up with these thoughts to help in case this incident happens again.

a. Keep a small card with the telephone number(s) for the credit card companies in my wallet or purse. This would have made solving my situation easier in this incident but wouldn't help had my entire purse or wallet been lost.

b. Keep a list of credit card contact numbers readily filed in my desk at work.

There's probably other options available. The point is to think about what your options might me to protect yourself should your card be left behind or taken from you.

AG IN UNCERTAIN TIMES - helping producers and others meet the challenge…

2009-08-31T14:13:00.004-06:00

The AG IN UNCERTAIN TIMES site provides current information to farmers, ranchers and educators about the challenges in today’s agricultural economy. Their current webinar series, "Operating in the face of uncertain markets", is filled with useful information and advice on getting ahead in today’s commodity, niche, specialty crop, and alternative markets. The September series begins September 9 at 9AM Pacific. (10AM Mountain, 11 AM Central, and 12 noon Eastern).

For more information on their current series as well as accessing previous webinars go to www.farmmanagement.org/aginuncertaintimes/.

Planning for Retirement

2009-07-15T10:58:00.002-06:00

Planning for retirement is a challenge for everyone. The earlier you begin, the longer you will have to accumulate funds and capitalize on compound interest. A plan designed to meet specific retirement goals may be separate from or part of the investment building block.

Some people have given a great deal of thought to retirement, but others have not. Less than half (42%) of working Americans have made a retirement savings calculation, according to the 2006 Retirement Confidence Survey, and 70% have begun to save for retirement. Unfortunately, this means that 30% of workers have not yet begun saving. Most experts believe that regular, systematic savings is a habit that is best established early and maintained, not only throughout the working years, but into the early stages of retirement since people are living much longer. Today, many people spend as many years in retirement as they spent in the workforce.

Financial experts have long described sources of retirement income as the three-legged stool: Social Security, company pension, and personal savings. Now with the growing concern over the future of Social Security, the reduction in benefits offered by employers, and the low personal savings rate, many see the three legs of the retirement income stool becoming shaky. Many say that the stool may need a fourth leg—paid work after retirement.

Now that the Social Security Administration has phased in automatic mailing of Personal Earnings and Benefit Estimate Statements to all wage earners, check yours for accuracy. It contains information that provides an excellent basis for retirement planning. Contact the Social Security Administration (Call 1-800-772-1213 or visit the Social Security Online Web Site www.socialsecurity.gov) to obtain a benefit request form.

Another source of retirement information is your employer’s personnel department which may have general tips on retirement as well as specific information about investments available in your pension plan. Many online sites provide information about retirement planning (See American Savings Education Council www.asec.org). The following definitions should be useful in helping you to understand your retirement options.

DEFINITIONS:
12(b)1 Fee
A marketing fee levied on mutual fund shareholders to pay for advertising and distribution costs as well as broker compensation.

401(k) PlanAn employer sponsored, tax deferred, retirement plan. It uses pre-tax contributions from an employee’s regular compensation to invest for that employee in a number of possible financial instruments. Some companies will match investments. Plans vary widely between companies.

403(b) PlanA tax deferred retirement plan very much like the 401(k) Plan, but the main difference is that the employer is a non-profit organization.

Account Maintenance FeesFees charged by financial institutions and companies for maintaining accounts. For financial institutions, such as banks and credit unions, the fee may be based on the amount in the account or the number of transactions. For investment companies, such as stock brokerage firms and firms working with mutual funds, the fee is often charged for keeping an account going even though it’s too small for the fund to make a lot of money from it. A fee is also charged by both groups for custodial accounts such as Individual Retirement Accounts.

Annual Percentage Rate (APR)The periodic rate times the number of periods in a year. For example, a 5% quarterly return has an APR of 20%. APR is a yearly interest rate that includes all fees and costs you pay to a lender (such as a credit card company or financial institution) when you borrow money. By law, lenders are required to tell you the APR.

Annual Percentage Yield (APY)
The yearly interest rate received from an investment. Also known as the effective yield. It takes into account how often the interest in paid (compounded). If two interest rates are the same, the one with the most compounding periods will have the highest APY (7% with daily compounding has a higher APY then 7% with quarterly compounding). It is important to always compare APY when comparing different interest rates before making an investment.

Build a Solid Credit History

2009-06-22T18:18:00.000-06:00

A solid credit history can be one of your most useful and powerful financial assets. A record of prudent credit use and prompt payments can enable you to not only qualify for credit when you need it, but it may also enable you to get a lower interest rate on your borrowing.

There are three main credit agencies that gather financial information on individuals and then make that information available to lenders to help them determine whether to make a loan to someone. The information they compile includes a great deal of basic data such as age, Social Security number, current and previous addresses, employers and marital status. They also get information on your borrowing history from places you have borrowed such as with credit card issuers, mortgage lenders and others. Your credit report probably includes all the credit relationships you have, date established, maximum allowed credit, current balances and payment history.

Indications of a solid credit history:
• Some, but not extensive borrowing.
• Prompt payment of monthly bills.
• Paying down balances over time.
• Steady employment.

Items that can hurt your credit report:
• Filing for bankruptcy.
• Too many credit cards.
• Too many applications for credit.
• Late payments.
• Increasing credit card balances.
• Several credit cards with balances close to their limits.

Lenders will use a credit report, along with evaluating your capacity to repay, your character and any collateral in making decisions to lend you money. Many lenders also take these same issues into account in deciding what interest rate to charge or type of loan to offer.

It is important to make sure your credit report is accurate and up to date. A federal law enables you to receive a free credit report once a year. You can get this free report by using the website – www.annualcreditreport.com. You can also get copies by calling the credit agencies, but there may be a small charge unless you have recently been denied credit.

• TransUnion – 800/888-4213
• Experian – 888/397-3742
• Equifax – 800/997-2493

If you see an error on the report, be sure to contact the credit agency in writing. Tell them of the error and ask that it be corrected. Negative information generally remains in your credit report for seven years and bankruptcies may remain for 10 years. However, most lenders pay particular attention to your most recent couple of years of activity.

Being aware of your credit report, making sure it is accurate, working to improve your credit characteristics, and understanding the importance of your report can all help you ensure that credit will be there when you need it.

Budget Helpers

2009-06-18T18:08:00.000-06:00

There are a number of free or low-cost programs available on the Web for helping people manage their money. Here are four – each is different, so play around with them and find something that works for you

PearBudget
A downloadable spreadsheet that runs in MS Excel – functional and easy to use. It advertises being able to set up a budget in 10 minutes and maintain it with two 10-minute sessions a month. Creator Charlie Park originally built it for his own use, saying he couldn’t afford a commercial program (like MS Money or Intuit’s Quicken). Download at pearbudget.com.

SimpleD Budget
A downloadable, Windows-based program, SimpleD Budget was created by programmer Soichi Hayashi for his wife. It has charts and visual aids to see where you’re at on expenses and income versus the amount you’ve budgeted. When setting up the program it offers templates for various stages of life (college student, parent, etc) that provide different categories for expenses. Download at dsbudget.sourceforge.net.

MySpendingPlan.com
A web-based budget tool, My Spending Plan can be managed by different people at different locations. Offered by the American Homeownership Association, it offers more than just budgeting; you can also set up reminders about bills. However, the site includes commercial promotions, and because it is online, it operates slower than the downloadable programs. Also, the tool is in the beta stage, so it’s a work in progress. Sign up at myspendingplan.com.

Microsoft Office Personal Budget Template
A downloadable spreadsheet that runs in MS Excel – a very basic budget, so it’s very easy to use. Microsoft offers several choices. The simplest is the ‘personal budget’ in which you can track expenses and income for a year on one page, but there is also a personal monthly budget (which provides detail for one month only, not a year), a family monthly budget, and a number of other budgets for things such as job expenses, events, a garden, a wedding, and marketing. There’s also a personal financial statement (which is a good idea to have so you can track your net worth). Download at office.microsoft.com/. Search for ‘personal budget.’

It’s worthwhile to take a look at them all – it may be helpful to build a budget using the categories of one system, then use, for example, SimpleD to track the spending.

Of course, there are other, less technology heavy systems. A spiral notebook and a pen and calculator are one. The envelope method is another. The envelope method goes like this: get a separate envelope for different household expenses such as housing, food, travel, etc., allocate expenses to the different categories according to your income, put the allocated money in its respective envelope, and then use the money from a particular envelope to pay the corresponding bills. The envelope system was designed for cash – actual money would go in the envelope. But you could modify the system so that you just write the amount of money assigned to each category (envelope) on the outside, then subtract that money from the balance. Then when you get to zero, you’d have to quit spending in that category or 'move' money from another envelope.

Tools for Saving & Investing

2009-06-10T10:30:00.006-06:00

Tools for Saving

The simplest way to begin earning money on your savings is to open a savings account at a financial institution. You can take advantage of compound interest, with no risk.

Financial institutions offer a variety of savings accounts, each of which pays a different interest rate. You can choose to use these typical accounts to save for the near future or for years down the road.

Types of Savings Accounts

Savings account (in general)

Access your money at any time
Earn interest
Move money easily from one account to another.
Have your savings insured by the FDIC or NCUA up to $250,000.

Money market savings account

Earn interest.
Pay no fees if you maintain a minimum balance.
May offer check-writing services.
Have your savings insured by the FDIC or NCUA up to $250,000

Certificate of deposit (CD)

Earn interest during the term (three months, six months, etc.).
Must leave the deposit in the account for the entire term to avoid an early-withdrawal penalty
Receive the principal and interest at the end of the term.
Have your savings insured by the FDIC or NCUA up to $250,000.

Tools for Investing

Investing is not a get-rich-quick scheme. Smart investors take a long-term view, putting money into investments regularly and keeping it invested for five, 10, 15, 20 or more years.

Stocks—Owning Part of a Company

Stocks. Shares of stock may be acquired on an organized exchange such as the Nasdaq or New York Stock Exchange, through a stock-broker, over the counter or by direct purchase in some cases. When you buy stock, you become a part owner of the company and are known as a stockholder, or shareholder. Stockholders can make money in two ways—receiving dividend payments and selling stock that has appreciated. A dividend is an income distribution by a corporation to its shareholders, usually made quarterly. Stock appreciation is an increase in the value of stock in the company, generally based on its ability to make money and pay a dividend. However, if the company doesn't perform as expected, the stock's value may go down.

There is no guarantee you will make money as a stockholder. In purchasing shares of stock, you take a risk on the company making a profit and paying a dividend or seeing the value of its stock go up. Before investing in a company, learn about its past financial performance, management, products and how the stock has been valued in the past. Learn what the experts say about the company and the relationship of its financial performance and stock price. Successful investors are well informed.

Stock options. Some companies offer employees stock options, which they can use to buy stock in the company at a fixed price. For example, your employer, Wally's Widgets, offers a stock-option plan, and its stock is valued at $30 a share. The stock-option price is set at $40 a share. As part of your compensation for meeting company goals and contributing to increased profits, you receive options to purchase 100 shares. Over time the value of the Wally's Widgets shares appreciates to $50 a share. You may now want to exercise your stock options and purchase the shares valued at $50 for $40.

Bonds—Lending Your Money

Bonds. When you buy bonds, you are lending money to a federal or state agency, municipality or other issuer, such as a corporation. A bond is like an IOU. The issuer promises to pay a stated rate of interest during the life of the bond and repay the entire face value when the bond comes due, or reaches maturity. The interest a bond pays is based primarily on the credit quality of the issuer and current interest rates. Firms like Moody's Investor Service and Standard & Poor's rate bonds. With corporate bonds, the company's bond rating is based on its financial picture. The rating for municipal bonds is based on the creditworthiness of the governmental or other public entity that issues it. Issuers with the greatest likelihood of paying back the money have the highest ratings, and their bonds will pay an investor a lower interest rate. Remember, the lower the risk, the lower the expected return.

A bond may be sold at face value (called par) or at a premium or discount. For example, when prevailing interest rates are lower than the bond's stated rate, the selling price of the bond rises above its face value. It is sold at a premium. Conversely, when prevailing interest rates are higher than the bond's stated rate, the selling price of the bond is discounted below face value. When bonds are purchased, they may be held to maturity or traded.

Treasury bonds, bills and notes. The bonds the U.S. Treasury issues are sold to pay for an array of government activities and are backed by the full faith and credit of the federal government. Treasury bonds are securities with terms of more than 10 years. Interest is paid semiannually. The U.S. government also issues securities known as Treasury bills and notes. Treasury bills are short-term securities with maturities of three months, six months or one year. They are sold at a discount from their face value, and the difference between the cost and what you are paid at maturity is the interest you earn. Treasury notes are interest-bearing securities with maturities ranging from two to 10 years. Interest payments are made every six months. Inflation-indexed securities offer investors a chance to buy a security that keeps pace with inflation. Interest is paid on the inflation-adjusted principal.

Bonds, bills and notes are sold in increments of $1,000.

Savings bonds. U.S. savings bonds are government-issued and government-backed. There are different types of savings bonds, each with slightly different features and advantages. Series I bonds are indexed for inflation. The earnings rate on this type of bond combines a fixed rate of return with the annualized rate of inflation. Savings bonds can be purchased in denominations ranging from $50 to $10,000.

Some government-issued bonds offer special tax advantages. There is no state or local income tax on the interest earned from Treasury and savings bonds. And in most cases, interest earned from municipal bonds is exempt from federal and state income tax. Typically, higher income investors buy these bonds for their tax benefits.

Mutual Funds—Investing in Many Companies

Mutual funds are established to invest many people's money in many firms. When you buy mutual fund shares, you become a shareholder of a fund that has invested in many other companies. By diversifying, a mutual fund spreads risk across numerous companies rather than relying on just one to perform well. Mutual funds have varying degrees of risk. They also have costs associated with owning them, such as management fees, that will vary depending on the type of investments the fund makes.

Before investing in a mutual fund, learn about its past performance, the companies it invests in, how it is managed and the fees investors are charged. Learn what the experts say about the fund and its competitors.

Remember, when investing in stocks, bonds and mutual funds:

Find good information to help you make informed decisions.
Make sure you know and understand all the costs associated with buying, selling and managing your investments.
Beware of investments that seem too good to be true; they probably are

How Much Extra Savings Is a Tax-Deferred Investment Worth?

If you pay taxes, which most of us do, a tax-deferred investment will be worth the amount you invest multiplied by the tax rate you pay. For example, if your federal tax rate is 15 percent and you invest $3,000 in an IRA, you'll save $450 in taxes. So in effect, you will have spent only $2,550 for a $3,000 investment on which you will earn money. A good wealth-creation plan maximizes tax-deferred investments.

Creating Personal Wealth

2009-06-01T22:33:00.002-06:00

You want to create personal wealth, right? So does Bob.

Bob is 35 and works for a manufacturing company. He looked at his finances and realized that at the rate he was going, there wouldn't be enough money to meet his family's financial goals. So he chose to embark on a personal wealth-creation strategy. Bob began by learning the language of wealth creation to understand the meaning of assets, liabilities and net worth. They make up this very important formula: Assets – Liabilities = Net Worth.

A wealth-creating asset is a possession that generally increases in value or provides a return such as a savings account, retirement plan, stocks, bonds, or a house. Some possessions like a car, TV, boat or clothes are assets but they do not create wealth because they don’t earn interest or rise in value.

A liability, also called debt, is money you owe such as a home mortgage, credit card balances, car loan, hospital and other medical bills.

Net worth is the difference between your assets and liabilities. Your net worth is your wealth!

Most people who have built wealth didn't do so overnight. They got wealthy by setting goals and striving to reach them. Bob set two short-term goals: (1) to save and invest enough in four years to have $6,000 for a down payment on a house, and (2) to pay off his $3,000 credit card debt within two years. Bob also set two long-term goals: (1) to save and invest enough to have $25,000 in 15 years for his children's college education, and (2) to have $5,000 a month to live on when he retires in 30 years.

A personal wealth-creation strategy is based on specific goals that are realistic and have time frames (like Wyoming Saves).

Develop a Budget and Live by It
When it comes to finances, people generally fall into the following groups. Where do you fit in?

Planners control their financial affairs. They budget to save.

Strugglers have trouble keeping their heads above rough financial waters. They find it difficult to budget to save.

Deniers refuse to see that they're in financial trouble. So they don't see a need to budget to save.

Impulsives seek immediate gratification. They spend today and let tomorrow take care of itself. They couldn't care less about budgeting to save.

Knowing what kind of financial manager you are will help determine what changes to make. To maximize your wealth-creating ability, you want to be a planner, like Betty.

Betty is a single parent with one child. "I have to budget in order to live on my modest income. I have a little notebook I use to track where every dime goes. Saving is very important to me. When my son was born, I started investing every month in a mutual fund for his college education. I am proud to say that I control my future. I have bought my own home and provided for my son, and I've never bounced a check. You must have common sense regarding money!"

Lynne, by contrast, is a struggler. Lynne has a good job, makes good money and lives a pretty comfortable life, but her bankbook tells a different story. She has no savings or investments, owns no property and has no plans for retirement. Plus, she's got a lot of credit card debt, lives from paycheck to paycheck and doesn't budget.

You can choose to be like Lynne, or you can follow Betty's road to wealth creation by learning to budget and save.

A budget allows you to:

Understand where your money goes.
Ensure you don't spend more than you make.
Find uses for your money that will increase your wealth.

To develop a budget, you need to:

Calculate your monthly income.
Track your daily expenses.
Determine how much you spend on monthly bills.

Start Early for a Comfortable Retirement

2009-05-26T19:59:00.000-06:00

Many people don't start thinking about their retirement planning until they are well into their career – then they realize how much valuable time they lost. If you start saving for retirement now, you have the best shot at attaining long-term control over your finances and ending up your life in comfort.

A common way people take advantage of time and compound interest is through an Individual Retirement Account. If you open an IRA in 2007 you can invest $4,000, which is the maximum annual contribution. That $4,000 will be invested in mutual funds, stocks or bonds that will provide a return within the IRA account. By the end of the first year you'll have the original $4,000 investment, plus any income it has earned. Now you've got $4,000 earning interest plus interest earning interest. And on top of that, you can make a contribution in 2008. The entire sum will earn interest and so on.

If you start making annual $4,000 contributions to a Roth IRA at age 37, you'll have contributed $112,000 by the time you retire at age 65. At a 7 percent rate of return, you should have $345,386 in your account at retirement age.

Keys to Retirement Success

Start early: the younger you are when you begin contributing to your IRA, the longer your money will have to compound, making it worth even more when you retire.
Contribute every year: Even if you're tempted, don't skip your IRA contribution. Give your money the best possible chance to grow by socking away a little bit every year.
Resist the temptation to withdraw the money early: You'll have to pay a penalty of about 10 percent and your retirement nest egg will be that much smaller.
Aim for a high rate of return: The more your money earns annually, the more you'll have at retirement.
Leave the money in longer: Money gets the greatest effect from compounding in the later years, so the longer you can leave it in your account, the more you'll have when you withdraw it.

10 Barriers to Success (from John Bishop of Teaching Moments)

No clear vision – the clearer your vision is of your goal, the faster you will achieve it.
Fear of failure – don’t let worry, fear and uncertainty hold you back from reaching your goal. Eliminate bummer words like never, can’t, maybe or if.
Lack of determination – turn challenges into opportunities. Come at them from the other side.
No action plan – write a detailed, step-by-step plan including a timetable and written strategy that you review every day or week.
Change –make adjustments as needed but don’t lose focus on the goal.
Negative thinking – everyone has some self-doubt. Ask yourself everyday: 1. Did I give my best effort and 2. Did I move closer to my goals?
Lack of enthusiasm – you are your own best cheerleader. Look at all days as good days, some are just better than others. You’ll find your enthusiasm is contagious.
Procrastination – You can have a great written plan, but you must take action. Be self-motivated, determine what motivates you and take action.
Making excuses – take responsibility for your success.
Learn from your mistakes – Everyone makes them. Successful people turn mistakes into learning opportunities.

Roadblocks can actually be stepping stones to success. Identify what holds you back and turn it into an opportunity!

WHAT IS YOUR MONEY PERSONALITY?

2009-05-20T19:40:00.002-06:00

What are your attitudes/values about money? Do you tend to do things the way your parents did (or do you find yourself rebelling against their example?) A lot of people would argue that “understanding yourself” (i.e., what drives your spending and saving decisions) is critical to achieving financial success. It is very common for money personalities to get in the way of making good choices.

A study published by the American Psychological Association found that the #1 source of stress for 73% of Americans was money. This emphasizes the importance of exploring our feelings and attitudes about money. The ultimate goal is not necessarily to change your current personality/values to different ones, it is to learn to prosper with the one you have.

Different experts have different names for these money personalities. Jordan Goodman, author of “Master Your Money Type: Using Your Financial Personality to Create a Life of Wealth and Freedom” summarizes money types as:

STRIVERS You are all about achieving success and letting others know just how successful you are by buying lots of stuff. Money equals success. Ambition is the upside; overspending is the downside.

OSTRICHES You are uncomfortable with money, even confused, intimidated or embarrassed by it. So you bury your (financial) head in the sand. The upside is you’re not consumed by money and you focus on more important things in life; the downside is eventually you’ll wind up regretting your avoidance of money problems and not setting financial goals.

DEBT DESPERADOS You get a thrill from buying, which leads to overspending. You quickly accumulate debt and may find yourself on the run from creditors. If there is an upside, it is that you likely understand the anguish debt can cause and that can be used to motivate and provide the resolve to get out of it. The downside is overspending is a weakness that is often bailed out through credit cards.

COASTERS You may be coping or even thriving financially, but a lack of a money crisis has made you comfortable with the status quo. The upside is that you’re organized and responsible. But complacency means you’re missing out on opportunities and greater prosperity.

HIGH ROLLERS You’re a thrill-seeker and gambler with money, thinking you’re smarter than others and are certain you’ll get a ‘big score.’ The upside is that you’re comfortable with risk, which can pay off with big rewards. The downside is that unbridled risk-taking can be dangerous and can land you in financial ruin.

SQUIRRELS You hoard your money like a squirrel gathering nuts for the winter. You’re intensely afraid of losing money and exert a great deal of effort to spend less. The upside is you’re an excellent saver, but often at the expense of other things money is good for – spending, giving, etc.

A recent study by Putnam Investments outlined six financial beliefs and habits that they found to be most important in achieving financial security:

Realistic Expectations
Resisting temptation for quick rewards and fads
Patience in the face of adversity
Greater satisfaction from saving than spending
Ability to tolerate above-average risk
Receptivity to advice on how to save and invest

Source: Dr. Mark Oleson, University of Missouri – Columbia.

Controlling Credit Card Debt

2009-05-01T18:44:00.000-06:00

Credit card debt can become overwhelming for some families. Here are some ideas to help you get your credit card debt under control. Feel free to pass this along to others not enrolled in Wyoming Saves.

Never ever pay the minimum. If you can afford to pay more than the monthly minimum on your credit card, do it! With $3,000 on a credit card, a 2% minimum payment and 18% annual interest, it takes over 30 years to repay provided you don’t add any new charges. In the end, you pay a total of $10,013 including interest of $7,013. For this reason, federal regulators have encouraged credit card companies to increase the percentage owed for their minimum payments.

Some experts recommend paying off cards with the smallest debt owed first and ignoring interest rates on the other cards. This costs a tremendous amount in unnecessary interest payments. Debts with higher interest rates grow more quickly. By tackling them first, you will pay off debt faster!

Found Money

2009-04-20T18:57:00.001-06:00

We drive miles out of our way to save a few pennies on gas, then go around the corner and use an ATM that charges $2.50 for every withdrawal. There’s no doubt that saving a dollar on a fill-up is gratifying. Imagine how many gallons of fuel we could save if we watched ATM fees, bills and and other parts of life. Here are some easy ways to save money around the house.

Household Bills

Shop around. Compare service providers for things like phone and internet. When buying big ticket items compare the offers of at least three providers (make a sheet with the features and options of each so that you’re comparing apples to apples).
Cancel unused services. If you’re not watching cable, for instance, as much as you thought, then cut your cable bill down to the basic package, or cut it out of your life entirely.
Cut heating bills. Reduce energy costs by as much as 30% using Energy Star appliances and making sure your house is well insulated.

Food

Put in some effort. Convenience can be expensive. You’ll spend about twice as much on items such as pre-washed mixed greens and a jar of pasta sauce versus a head of lettuce and the ingredients for marinara.
Go generic. Buying the store brand can save up to 50% according to Consumer Reports. And today’s store brands are typically very good quality.
Brown bag lunch. Take your lunch to work.

Gasoline/Diesel

Don’t pamper your car. Unless a high-octane gas is specifically recommended for your car, buy regular unleaded.
Go slow. Improve fuel efficiency by 10% by observing the speed limit and accelerating slowly.
Drive a smaller vehicle. Drive a sedan instead of an SUV or truck.

Credits At Tax Time

2009-04-13T18:48:00.000-06:00

April 15th, tax day is just around the corner. For many this can be a very stressful time, especially this year. Following is some information that I hope you will find helpful in preparing your 2008 taxes and/or planning for your 2009 taxes.

Having Trouble Paying Your Taxes?

For those of you who might be having trouble paying your tax bill be sure to still submit your tax return and notify the IRS of your inability to pay. The IRS has a specific form for this purpose. If you have questions on how to obtain the form or what you should do, give the IRS a call at 1-800-tax-1040 or go to your local IRS office to speak with someone in person.

Credits and Deductions at Tax Time Explained

A tax credit lowers your tax bill dollar for dollar. A deduction reduces your taxable income, so the value depends on your tax bracket. If you're in the 25% bracket, a $1,000 deduction lowers your tax bill by $250. But a $1,000 credit lowers the bill by the full $1,000, no matter in which bracket you are.

Tax Credits You Should be Aware of

Home Energy Efficiency Tax Credits
The Energy Policy Act of 2005 established tax credits for energy efficiency retrofits and on-site renewable energy projects. Many of these incentives that were due to expire in 2007 or 2008 have been extended or expanded. Following are some of the energy efficiency and renewable energy project tax incentives that might be of most benefit to you.

Residential Efficiency Incentives
These incentives provide a tax credit of 30% of the cost of materials up to $1,500 for home envelope improvements. Home envelope improvements include improvements to windows, insulation, roofs, duct sealing, etc. This credit is also available for high efficiency heating, cooling and water heating equipment. When making improvements to your HVAC system, the tax credit also applies to the cost of the labor to install the equipment. In order to qualify for the tax credits the improvements must have been placed in service in 2009 or 2010 and installed in the taxpayer’s principal residence only.

On-Site Renewable Generation Incentives
These incentives provide a tax credit of 30% of the system cost for installing (materials and labor) solar energy systems, small wind systems and geothermal heat pumps. This tax credit can be used for systems put in service in 2008 through 2016. There is no cap on the tax credit for systems put in service starting in 2009. Those systems put in service in 2008 must comply with earlier caps. This tax credit is NOT limited to the taxpayer’s principal residence.

For the specifics of how to qualify and receive these incentives please visit the following web resources
www.aceee.org/energy/national/recovery
www.energytaxincentives.org
Dsireusa.org

Child Tax Credit
Many working families can qualify for the Child Tax Credit and get up to $1,000 for each child under 17— in addition to the EIC for which they may qualify. To be eligible for the CTC refund, a single or married worker must:

have a qualifying child under age 17;
have taxable earned income above $11,300; and
have either a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN). ITINs are issued by the IRS to individuals who are unable to obtain a Social Security number.

To get the Child Tax Credit you must file a federal income tax return — Form 1040 or 1040A, but not 1040EZ and file form 8812.

Earned Income Credit
If your family works but doesn’t earn much money, there’s a way to reduce taxes or get a refund, even if you don’t earn enough to pay federal taxes. It’s the Earned Income Tax Credit.

The EIC is a special tax benefit for working people who earn low or moderate incomes. Workers who qualify for the EIC and file a federal tax return can get back some or all of the federal income tax that was taken out of their pay during the year. They may also get extra cash back from the IRS. Even workers whose earnings are too small to owe income tax can get the EIC. What’s more, the EIC offsets any additional taxes workers may owe, such as payroll taxes.

Who can get the EIC and how much is it worth?
Single or married people who worked full-time or part-time at some point in 2006 can qualify for the EIC, depending on their income.

Workers who were raising one child in their home and had income of less than $32,001 (or $34,001 for married workers) in 2006 can get an EIC of up to $2,747.
Workers who were raising more than one child in their home and had income of less than $36,348 (or $38,348 for married workers) in 2006 can get an EIC of up to $4,536.
Workers who were not raising children in their home, were between ages 25 and 64 on December 31, 2006, and had income below $12,120 (or $14,120 for married workers) can get an EIC up to $412.

Workers with investment income exceeding $2,800 in 2006 may not claim the EIC.

Here’s an example of how it works. In this case eligible workers can pay less in taxes and get a check from the IRS.

Mr. and Mrs. Johnson have two children, ages 20 and 21, in college. They earned $29,000 in 2006 and owe the IRS $550 in income tax, none of which was withheld from their pay during the year. Their income makes them eligible for an EIC of $1,936. So, the EIC eliminates their $550 income tax — now they don’t owe IRS anything — and gives them a refund of $1,386.

Getting the Credit
If you have children in your home then to get the EIC you must file either Form 1040 or 1040A and must fill out and attach Schedule EIC. Workers with children cannot get the EIC if they file Form 1040EZ or do not attach Schedule EIC. The children must meet some qualifications.
Workers who were not raising a “qualifying child” in their home in 2006 can file any tax form — including the 1040EZ.These workers write “EIC” (or the dollar amount of their credit) on the Earned Income Credit line on the tax form. They do not file Schedule EIC.

Tax Preparation Assistance
Low-income workers can get free help with tax preparation through a program called VITA (Volunteer Income Tax Assistance). To locate the nearest VITA site, call 1-800-829-1040.

enroll now for a chance to win Suze Orman's 2009 Action Plan

2009-04-03T12:59:00.002-06:00

It's not too late to enroll in Wyoming Saves and be eligible for the drawing for Suze Orman's 2009 Action Plan book. Wyoming Saves is part of a national effort called America Saves in which over 67,000 Americans have committed to achieving a savings goal. To help people save, Cole Ehmke, UW Extension specialist, collected several resources of interest. The information given herein is supplied with the understanding that no discrimination is intended and no endorsement by Cooperative Extension is implied.

In addition to managing the Wyoming Saves program I am also a participant. Today I transferred my first installment of my savings goal into my savings account.

If you have any questions or concerns about your participation in Wyoming Saves, please let me know. I am here to support you and be a resource for you to help you achieve your savings goal.

Following is the first article that was sent to Wyoming Saves Participants.

Two great ways to establish automatic savings

(1) Online Savings Accounts – provide high yields; all of the following currently pay 5%+, with no minimums to establish (or maintain) an account, no fees, and are FDIC insured.
a. Emigrant Direct
b. FNBO Direct
c. HSBC Direct

(2) Mutual Funds – while many mutual fund companies require a large initial investment to open a mutual fund account, some companies will waive the initial investment if you establish an automatic investment (typically $50/month). T.Rowe Price and TIAA-CREF are a couple of notable ‘no load’ fund companies; AIM Funds and American Funds are examples of load fund companies that allow for automatic investments to open accounts. The Mutual Fund Investor Center provides a search tool to find companies that accommodate people looking for automatic investment opportunities.

A recent Federal Reserve Board study identified successful saving strategies:

- Have a reason to save. Households with an identifiable goal for saving were more likely to have financial assets (and also have higher levels of assets). Setting a goal is an important part of any saving strategy.
- Think ahead, plan ahead. Looking into the future can be an important motivational tool to help people anticipate and be prepared for future expenses. The most prominent goal of the Savers in the program is to develop an emergency fund. Many experts recommend having a fund that could cover three or more months of living expenses.
- Develop a savings habit. It is no secret that getting started is the biggest challenge people face financially. Once the habit is developed, people comment on how “second nature” saving becomes.
- Make savings automatic. Automatic savings via payroll deductions or automatic transfers from a checking or savings account is one strategy found to be very effective in “creating” Savers.

Get Ready for Wyoming Saves Give-Aways

2009-03-27T12:05:00.002-06:00

Start thinking of your money saving ideas now. Throughout the Wyoming Saves program you will have an opportunity to share your savings tips and vote on which savings tip you think is the "best". Prizes will be awarded to the savings tip that receives the most votes.

The April 1st Kick Off date for Wyoming Saves is fast approaching. Be sure to get your enrollment form to us right away. And don't forget to talk to your friends and neighbors and encourage them to sign up.

For those of you who are die hard procrastinators, no worries. Just get us your enrollment form as soon as you can.

Please be sure and give me a call if you have any questions about participating in this great program.

Julie

Wyoming Saves - Be a Part of Making a Positive Difference

2009-03-11T09:56:00.005-06:00

Times are tough. While the federal government is doing everything it can to encourage more spending. I am here to encourage you to do more saving. In uncertain financial time like these, accumulating a healthy savings account is one of the best ways to take charge of your finances. According to Consumer Federation of American (CFA) research the typical family has under $10,000 of net financial assets and many families are losing wealth. Low to moderate income households have accumulated even less money and typically have less than $1,000 saved. Even more distressing than the lack of savings is the number of families living paycheck to paycheck.

Nobody wants to feel the stress of knowing that they are only a paycheck or two away from financial disaster because they lack money to fall back on when “stuff happens”. In today’s economy, news of job losses is a daily occurrence. Even if your job is secure other financial emergencies can and do occur, such as getting hurt and not being able to work, having a vehicle break down or needing to care for an elderly parent or a sick child.

Even amidst all of this financial turmoil you have the ability to make a positive difference in your life. Starting and/or expanding your family’s savings program is important not only for your financial peace of mind, but it also teaches your kids valuable lessons that they will help them for the rest of their lives. The University of Wyoming Cooperative Extension Service and your local federal credit unions are here to help. As part of the national “America Saves” campaign to build wealth, we are rolling out the “Wyoming Saves” campaign. The goal of “Wyoming Saves” is to enroll individuals, families and groups to either increase their savings or reduce debt during three months. By making savings a habit, we can make a difference not only in our own lives, but in our community.

How Can You Help

PARTICIPATE (do what works and share your ideas)

Individually—complete the enrollment form then track your progress.
Pairs—enlist a partner, perhaps someone not in the habit of saving money. Complete enrollment forms for both of you then track your progress on the individual progress reports.
Families—enroll as a family. Set a family financial goal or set individual goals for each family member. Complete a group enrollment form for the entire family then track your progress on the group progress report.
Groups—form a team at work, with friends or neighbors, with your 4-H club or another organization to which you belong. Become the team leader, sign everyone up on the group enrollment form, and be responsible for tracking progress on the group progress report. As the group leader your team will look to you for encouragement and for distributing the educational materials.

Commit to a Goal
It matters more about forming a habit than the amount saved. New savers can take baby steps—$1 a week or month, or just begin saving pocket change. As the campaign progresses savings ideas will be shared with you and you will have the opportunity to share your savings strategies and compete for prizes.

Publicity
Request copies of the “Wyoming Saves” flier or informational letter and distribute via:

E-mail to your friends and co-workers.

Posting it on bulletin boards throughout your community.

Including it in your newsletters or other correspondence.

Passing out fliers at your regular meetings.

Mentioning it during phone calls or email-conversations and encouraging participation.

While it would be impressive to see a significant amount of dollars saved or debt reduced, remember what this is all about—FORMING A SAVINGS HABIT! Implementing and sticking to a savings plan will enable you to achieve long term financial success.

How To Participate

Download the enrollment and progress report forms as well as the promotional fliers and letter from the Wyoming Saves box on the right hand side of this page. Alternatively, you can request the forms and information from your local UW Cooperative Extension Service office or participating Credit Union or Bank . You can also request the documents via email at larcntex@uwyo.edu or by phone at 307-633-4383.

Participating Credit Unions & Banks

First Education Federal Credit Union

Meridian Trust Federal Credit Union

Warren Federal Credit Union

Western Vista Federal Credit Union

Unified People’s Federal Credit Union

WyHy Federal Credit Union

First Cheyenne Federal Credit Union

Cheyenne Laramie County Employees Federal Credit Union

In order to participate fully, enrollment forms must be received by April 1st, 2009!

Delinquent Mortgage Borrowers . . . what to do

2009-02-06T20:29:00.001-07:00

Doing nothing is the worst thing a delinquent borrower can do. And the longer the delay, the worse it gets.

US Comptroller of the Currency John Dugan says, "The record shows that the early stages of mortgage delinquency are the most crucial. The sooner borrowers reach out for help, the more options they have, and the more likely foreclosure may be avoided."

In half of all foreclosures, lenders say borrowers do not make contact with them. Yet, more than a third of those who reach out for assistance are successful in finding alternatives to foreclosure.

Homeowners experiencing financial difficulties can call 1-888-995 HOPE, a toll-free hotline staffed around the clock, seven days a week, by 85 qualified housing counselors from agencies approved by the Department of Housing and Urban Affairs.

National EITC Awareness Day

2009-01-30T17:15:00.002-07:00

Today is the third annual National EITC Awareness Day. The EITC, also known as the Earned Income Tax Credit, is a federal tax credit available for individuals who work but did not earn a significant amount of income. If you are eligible, utilizing the EITC will reduce your taxes and result in a tax refund for you and your family.

To learn more about the EITC and whether you qualify go to http://www.eitc.irs.gov/central/abouteitc/.

Julie

IRS takes liberal stance on how homebuyer credit is allocated between unmarried purchasers

2009-01-20T09:56:00.002-07:00

Information below provided by Cole Ehmke

Many of you bought a new home or are considering the purchase of a new home, and so you may qualify for a new tax credit. The Housing and Economic Recovery Act of 2008 authorizes a $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009. The following text outlines provisions for this credit. The credit is recaptured over the next 15 years as an addback to your federal tax liability. Thus, this credit and 15 year payback is in essence a tax free loan by the government to purchase your first home.

If this fits your situation, see your friendly neighborhood tax accountant.

Notice 2009-12, 2009-6 IRB
A new notice provides guidance under Code Sec. 36(b)(1)(C) for allocating the first-time homebuyer credit between unmarried taxpayers. It allows use of any reasonable method and shows how a full credit can be obtained even where one buyer wouldn't qualify for any amount of credit under the phaseout rules.

New refundable tax credit for first time homebuyers. For qualifying purchases of principal residences in the U.S. after Apr. 8, 2008 and before July 1, 2009, eligible first-time homebuyers may claim a refundable tax credit equal to the lesser of 10% of the purchase price of a principal residence or $7,500 ($3,750 for married individuals filing separately). (Code Sec. 36)

Who is eligible. A taxpayer is considered a first-time homebuyer if he (or spouse, if married) had no present ownership interest in a principal residence in the U.S. during the 3-year period before the purchase of the home to which the credit applies. (Code Sec. 36(c)(1))

RIA observation: Because only prior ownership in a principal residence is considered, it's possible for a taxpayer who already owns a vacation home to claim the new credit, if he otherwise qualifies. For example, a taxpayer whose principal residence for at least three years has been a rental apartment in the city, and who owns a seaside home, could claim the credit for the purchase of a new principal residence if his modified AGI doesn't exceed the phaseout levels.

Special rule for 2009 purchases. Eligible first-time homebuyers who purchase a principal residence after Dec. 31, 2008, and before July 1, 2009, may elect to treat the purchase as made on Dec. 31, 2008. ( Code Sec. 36(g).

Meaning of “purchase.” A “purchase” is any acquisition, but only if (i) the taxpayer did not acquire the property from a related person, and (ii) the taxpayer's basis in the property is not determined, in whole or in part, by reference to the basis of the property in the hands of the person from whom the taxpayer acquired the property (e.g., as occurs with a gift), or determined under Code Sec. 1014(a) (relating to property acquired from a decedent). (Code Sec. 36(c)(3)) A person is treated as related to another person if the relationship would result in the disallowance of losses under Code Sec. 267 or Code Sec. 707, except that members of a family of an individual include only the individual's spouse, ancestors, and lineal descendants.

RIA observation: Thus, for example, the credit is not allowed for a home purchased by the taxpayer from his spouse, parent, grandparent, child or grandchild.

Phaseout of credit. The first-time homebuyer credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $75,000 and $95,000 ($150,000-$170,000 for joint filers) for the year of purchase. MAGI is adjusted gross income for the tax year increased by any amount excluded from gross income under Code Sec. 911 (foreign earned income and foreign housing exclusions), Code Sec. 931 (exclusion of income derived from American Samoa) or Code Sec. 933 (exclusion of income from Puerto Rico). (Code Sec. 36(b)(2)) Specifically, the amount allowable as a credit is reduced by the amount that bears the same ratio to the credit allowable as (1) the excess (if any) of: the taxpayer's modified AGI (MAGI) for the tax year, over $75,000 ($150,000 for a joint return), bears to (2) $20,000. (Code Sec. 36(b)(2)) The credit is completely phased out for a taxpayer whose MAGI is $95,000 ($170,000 for married taxpayers filing a joint return).

Recapture rules. The credit for new homebuyers is recaptured ratably over fifteen years, with no interest charge, beginning with the second tax year after the tax year in which the home is purchased. For each tax year of the 15-year recapture period, the credit is recaptured as an additional income tax amount equal to 6 2/3% of the amount of the credit. As discussed in Federal Taxes Weekly Alert 09/18/2008, this repayment obligation may be accelerated or forgiven under certain exceptions. (Code Sec. 36(f))

RIA observation: In other words, the credit for new homebuyers is the equivalent of a long-term interest-free loan from the government.

RIA observation: On Jan. 15, House Ways and Means Committee Chairman Charles B. Rangel (D-NY) issued a press release outlining the portion of the economic recovery package to be taken up by his committee. The package would include a number of tax breaks including enhancement of the homebuyer credit—for homes bought after Dec. 31, 2008, and before June 30, 2009, it would remove the repayment requirement for the credit.

Where to claim credit. For eligible purchases in 2008, a taxpayer claims the credit by attaching Form 5405, “First-Time Homebuyer Credit,” to the taxpayer's 2008 tax return. For eligible purchases in 2009, a taxpayer may elect to claim the credit for 2008 or 2009 by attaching Form 5405 to the taxpayer's original or amended 2008 tax return or 2009 tax return.

Unmarried persons. Code Sec. 36(b)(1)(C) provides that IRS may prescribe the manner in which the first-time homebuyer credit is allocated between two or more taxpayers who are not married for federal tax purposes and who purchase a principal residence. The total credit allocated between the taxpayers cannot exceed $7,500.

Any reasonable method allowed. Notice 2009-12 says that, for purposes of Code Sec. 36(b)(1)(C), if two or more taxpayers who are not married purchase a principal residence and otherwise satisfy the Code Sec. 36 requirements, the first-time homebuyer credit may be allocated between the taxpayers using any reasonable method. It goes on to say that a reasonable method is any method that does not allocate any portion of the credit to a taxpayer not eligible to claim that portion. A reasonable method includes one that allocates the credit based on (1) the taxpayers' contributions towards the purchase price of a residence as tenants in common or joint tenants, or (2) their ownership interests in a residence as tenants in common. Notice 2009-12 includes several examples of credit allocations, some of which are reproduced below. Unless otherwise indicated, each example assumes that A and B (i) purchased a principal residence on May 1, 2008, (ii) are not married to each other, (iii) do not have MAGI in excess of the MAGI threshold, and (iv) are first-time homebuyers who otherwise satisfy the Code Sec. 36 requirements.

RIA Research References: For the first-time homebuyer credit, see FTC 2d/FIN ¶ A-4271; United States Tax Reporter ¶ 364.

Source: Federal Tax Updates on Checkpoint Newsstand tab 1/16/09

Financial Fitness Quiz

2009-01-16T15:58:00.002-07:00

For those who missed the "Making the Most of Your Money" session on Wednesday, I have posted a subset of the questions from the financial fitness quiz activity that Cole Ehmke went through. If you have the time, I encourage you to take the quiz and see how your financial fitness is compared to others. The quiz questions can be found on the right underneath the "Whats Happening" section. Just let me know if you would like to have the complete version of the quiz to get a comprehensive evaluation of your financial fitness.

Julie

Money Management in Tough Times

2008-12-22T16:58:00.000-07:00

Tonight's Money Management Session Postponed

2008-12-03T12:18:00.003-07:00

Due to the weather, we are postponing tonights Money Management Session until January 14th.

On January 14th Cole Ehmke from the University of Wyoming will provide valuable information on how to create a spending plan you can live with and the true cost of using credit. The information from this session will come in handy as you develop and implement your resolutions for the new year.

Be sure to mark 6:00 PM on January 14th, 2009 at the Laramie County Library on your calendar.

Be Wary of Investment Fraud

2008-11-14T13:04:00.002-07:00

On Wednesday, Karen Wheeler the Director of the Compliance Division for the Wyoming Secretary of State's office spoke about the types of fraud and scams that are being perpetuated in Wyoming. I wish I had a transcript of all the information she provided to share with you, but unfortunately I don't. I do however, have the next best thing. AARP Wyoming has given me permission to print the following article by Karen Mockler that was printed in the February 2006 edition of The Wyoming Sage. I hope you find it as informative as I did. If you have any questions about the validity of investments you have either made or have been offered, be sure to call the Secretary of State's office at (307) 777-7370. They are more than happy to help.

By Karen Mockler

The Wyoming Secretary of State’s Web site identifies 11 types of fraud, including the case of high-tech fraud described below.

Broadcast
“Satellite Broadcasting Corporation, from Irvine, California, was selling an investment in direct TV to Wyoming citizens by phone. The promoters claimed they had agreements and support from Direct TV© and were applying to be a member of the National Rural Telecommunications Cooperative, which are real companies who provide satellite television to subscribers using a "dish antenna." Both claims were false. Upon investigation, it was discovered that the company did not have an exclusive broadcast area as claimed and the California company could not engage in the business for which it was collecting money.”

This scam was shut down by a joint state-federal action, but new scams pop up every year. One of the most common is the pyramid scheme, where money is received not by selling a real product or useful service, but by recruiting new participants. A current incarnation of the pyramid scheme is the “airplane” pyramid, in which “passengers” pay to ride, in hopes of eventually becoming “pilots.” People who start pyramid schemes are often the only ones who receive money. Ponzi schemes also use the money of new recruits to pay off earlier investors.

Metals
Gold, silver, and other precious metals have always been popular operating areas for con artists and shady dealers. The private or skeptical nature of many individuals who buy precious metal investments is a benefit to the crooks. Promoters typically claim that the precious metal they are selling is sure to go up in value due to increased demand, world conflict, or some other economic or political factor. Purchasers usually receive a receipt as evidence of ownership, but not the metal itself.

Oil
When it comes to oil wells, potential investors should be particularly cautious if they hear any claims emphasizing oil shortages, fears of anticipated OPEC actions, or blockades. Scams often stress the urgency to act now. If people do invest, they should verify with the county clerk that their ownership is actually recorded in the county land records.

In order to avoid fraud, a potential investor has to know when an offer is too good to accept. According to the Wyoming Secretary of State’s Web site, “There are usually three characteristics typical of every fraud or scam: a promise of higher than normal returns, a promise or guarantee that you can't lose money, and pressure to act quickly. If you sense any of these warning signs, lock up your checkbook! Get more information and really check out the offer before you go any further!”

The Better Business Bureau’s Web site also offers six “resolutions” for 2006 to help avoid fraud:
1) Look before you leap. “Don’t sign anything without reading and understanding what you’re doing. If you sign a contract, it is legally binding and probably cannot be broken. If the paperwork doesn’t say the same thing told to you verbally, trust only what is written. Verbal promises are very hard to prove!”

2) Listen carefully to what’s said--and not said. “Understand the terms. If you don’t, ask again. Some cons glide over pertinent facts in such a glib way that you cannot charge them for misrepresentation. They told you; you just didn’t understand.”

3) Keep private information private. Never give it to anyone who contacts you. “Too many callers tell the BBB after they have given out credit card or bank account numbers or other private information that can be used for fraud. It doesn’t do any good to shut the gate after the horse is out.”

4) Investigate before you invest. Do your homework with official agencies – not just Aunt Martha.

5) Learn financial basics like contracts, mortgages and interest payments. Recognize you’ll never get something for nothing, so don’t send money to collect “your millions.”

6) If you have a financial dispute that needs resolution, consider a mediator. Talk to the BBB to find out more.

Finally, Tom Cowan, the Secretary of State’s director of securities, offers some additional red flags for securities investors to watch out for:

1) If you call a broker and he is never there, if she doesn’t return your phone calls, if he makes a lot of chit-chat but never answers your question, beware.

While the Secretary of State’s office doesn’t give advice on investments, it can answer specific questions about a specific stockbroker. Staff can look up anyone in the United States and find their record, how long they’ve worked, or whether they’re even registered. If they’re not, Cowan says, what they’re offering an investor may not be legal.

2) “In no circumstance does a securities agent issue his own statement to the clients… those statements go out at a minimum on the company’s letterhead or a monthly statement as required by law.”

Investors can also contact the broker’s manager – most statements now have a 1-800 number, and they should feel free to call.

3) “If it’s too complicated to understand,” Cowan says, “they shouldn’t invest in it. Stock is pretty straightforward. It goes up or down in price. Plain vanilla.”

That doesn’t mean legitimate investments are without risk, he adds. You can buy a legitimate stock and still lose. But at least the game’s not rigged.

“The best advice I can give right now is if you can read about it in the Wall Street Journal or Barrons or Money Magazine, it’s probably real. If you can’t, it probably isn’t real.”

In the end, Cowan says, investors have to know themselves and their limitations.

“If I’m the average person without a lot of money, why go into a complex financial strategy? Not every person in the world is destined to buy commodities contracts. If I’m retired from civil service, I wouldn’t know about that kind of thing and what makes me think I can beat the big boys? Maybe my money is better kept in a bond or CD. What do I know about gold mining or oil and gas? But as a civil servant, I know the state of Wyoming is always issuing good quality bonds. I know the state is good for it. The state isn’t going to rip somebody off. Maybe that’s a better place for me to invest.”

Cowan says the biggest problem he sees in investments is not actually fraud but suitability – that is, the sale of investments to people which are much too risky for them, for perfectly legitimate reasons. For instance, a woman in her 70s or 80s buying long-term securities or very complex commodities simply may not live long enough to see her investment pay.

“These people aren’t sophisticated investors who’ve worked in the finance industry. They’re in over their head. They bought based simply on a purported rate of return – they see they can make 20 percent in a year, but oftentimes those people are the ones who lose their money.”

Despite economy, planning for the future is critical

2008-11-07T16:06:00.000-07:00

Free session Nov. 12 at library is sponsored by AARP, University of Wyoming and Library Foundation

Even during this national economic crisis, it’s important to consider your financial future. Waiting until the stock market rebounds may cost you more than you think – you lose both the ability to buy when prices are low and the power of compound interest, particularly if you have many years of work ahead of you. But investing for the future isn’t just about the stock market.

At the Laramie County Library in Cheyenne from 6-7 pm on Wednesday, unbiased experts from AARP and the Wyoming Secretary of State’s office will explain how to make the most of your financial future – regardless of your stage in life – and will provide tips to help you protect the money you invest and navigate the often confusing investment industry.

“Understanding the terms used by financial planners is like learning a foreign language,” AARP Wyoming Director Rita Inoway said. “We’ll translate the terminology and explain how to take charge of your financial future.”

The session, which is sponsored by AARP Wyoming, the Laramie County Library Foundation and the University of Wyoming Cooperative Extension Service, is the second in a three-part series. The third session will be held Dec. 3 and will discuss how to make the most of your money during the holiday season. More information on both sessions is available by visiting wyomingmoneytalk.blogspot.com or by calling the Laramie County Library at 634-3561.

“Retirement happens sooner than you think,” Inoway said. “It’s important to take small steps now, even during times like these, to ensure you have the retirement of your dreams.”

Beware of credit card scams

2008-11-06T13:30:00.003-07:00

I was recently forwarded a warning (snopes checked - more on that in a minute) about a credit card scam whereby the scammer already had your credit card number and is attempting to obtain the 3 digit security code on the back of your card. Essentially, someone calls and claims there is a fraudulent charge on your account. They then have you confirm information that they already have and finish by asking for the three digit code on the back of your card. Legitimate financial companies will not call you to request information that they already have or should have. A good rule of thumb is to never provide sensitive information to someone over the phone unless you initiated the call.

I often receive forwarded warnings from people, some of which are very helpful, many of which are false or misleading. A great resource for checking the validity of warnings (or other information) that is forwarded via email is to use snopes.com. Snopes researches and reports on the validity of urban legends and internet claims and warnings. Whether you want to verify that the fraud alert you received is a real threat or whether the Mister Ed series used a zebra instead of a horse, snopes.com can provide you some additional information.

To check the validity of the credit card fraud claim go to http://www.snopes.com/crime/warnings/creditcard.asp. For snopes information on whether Mr. Ed was a horse or a zebra go to http://snopes.com/lost/mistered.asp. If you do check out the Mr. Ed urban legend, be sure to click on the link at the bottom that provides you additional information. In fact, if you read nothing else, go to the link on the bottom of the Mr. Ed urban legend to read more information on that particular topic.

Julie

Do You REALLY Need It or Just Want It?!?

2008-10-31T16:39:00.003-06:00

As the economy continues to struggle and we look ahead to uncertain financial times, asking yourself if you really need something or just want it before you make a purchase becomes more and more important. If you find that you are buying a bunch of things that you truly don't need then you've just found an extra source of money that you can put into an emergency savings account by holding off on making the purchase.

Julie

markets, jobs and credit histories

2008-10-15T09:26:00.003-06:00

I saw today that commodity prices were down (gas, steel) -- good news for consumers. But it also means that industry is using less of these things. In some industries, the cutting back may mean job losses. For instance, I also heard that here in Wyoming the gas companies are doing less investing. Thay may not mean job losses -- perhaps it just means fewer new jobs. In any case, no matter our job situation we have to deal with building strong credit. And a strong credit report is an excellent thing to have should things tighten up. Here are a few insights on indications of strong and weak credit.

Indications of a solid credit history:
• Some, but not extensive borrowing.
• Prompt payment of monthly bills.
• Paying down balances over time.
• Steady employment.

Items that can hurt your credit report:
• Filing for bankruptcy.
• Too many credit cards.
• Too many applications for credit.
• Late payments.
• Increasing credit card balances.
• Several credit cards with balances close to their limits.

Calling all ostriches including me

2008-10-08T17:15:00.003-06:00

The financial news is definately troubling and the markets are all over the place but that is what makes this the ideal time to evaluate your finances and where you want to go. Depending on your goals, you might be able to find some good deals out there in the stock market. Confidence in the market is so low that even companies with good fundamentals are selling at bargain prices. However, before you go bargain shopping be sure you do your research and know what you are buying. As volatile as the market is right now, you might want to hold off until the market stabilizes, even if you don't get rock bottom prices.

Let me know what you're thinking.

Julie

Struggling to make ends meet?

2008-09-23T17:37:00.002-06:00

Learn how to lower your home heating bills and make the most of your money. Gain strategies to stay afloat during tough economic times from University of Wyoming’s community development educator Juliet Daniels. Discover which home improvements will save you money this winter – and which ones won’t. Wyoming Energy Council Executive Director Tiger Adolf will discuss how to weather this winter’s home heating storm.

Join us for this free session Wednesday, Oct. 15 from 6 to 7 pm. Get information and ask questions. Speakers will be available after the presentation for additional questions.

This is the first of a three-part series designed to help you make the most of your money, sponsored by AARP, Laramie County Library and the University of Wyoming’s Cooperative Extension Service (other sessions will be held Nov. 12 and Dec. 3). For more information, call AARP Wyoming at 1-866-663-3290, Laramie County Library at (307) 634-3561 or UW Cooperative Extension in Cheyenne at (307) 633-4383.

I will be one of the main speakers at this session so be sure to come to the seminar and lend me your support.

Julie

Home Energy Makeover Workshop & Expo

2008-09-23T17:10:00.003-06:00

The Wyoming Home Performance Alliance is hosting a Home Energy Makeover Workshop & Expo On Saturday October 4th from 8 AM to 4 PM at Laramie County Community College at the Center for Conferences & Institutes in the Union Pacific Centennial Room (#14).

The event will feature speakers on the following topics:

Energy Efficiency Assistance for Low-Income Homeowners
Whole House Energy Efficiency Improvements
Utility Program Offerings for Energy Efficiency and Renewable Energy
Financing Options for Home Energy Efficiency Improvements
Renewable Energy Options

The Expo portion of the event will feature vendors who can help you to implement the energy saving ideas you obtain during the workshops.

Event doors open at 8 AM and the workshops will conclude by 4 PM.

Tickets for the Workshop & Expo are available at the Cooperative Extension office (address is in the sidebar to the right) or at a number of non-profits in both Cheyenne and Laramie (contact information is available on the event website). Tickets are $10 per person if purchased ahead of time or $15 at the door.

For additional information visit www.homeenergymakeover.org/wyoming.

Hope to see you there.

Economic Crisis in Laramie County - What You Can Do to Help

2008-09-22T13:17:00.002-06:00

According to information from the Laramie County Community Partnership (2008 Gaps Analysis):

In 2005, 23% of our students did not graduate from high school
In 2006, 21.1% of female-headed households lived below the poverty line.
There are more households earning less than $25,000 (inflation adjusted) annually now than in the last twenty-six years.

Each of us has the opportunity to get involved and change these statistics for the better. Here in Laramie County the Connections Corner initiative of the Laramie County Community Partnership is launching a new initiative called Circles(TM). Circles(TM) is an intentional way for people to build relationships across class and race lines to end poverty in their communities. Circles(TM) is a high impact strategy that will:

Change the mind-set of the community so it wants to end poverty
Change goals, policies, and approaches to end poverty and,
Empower people in poverty to help solve community problems while transitioning out of poverty themselves.

A Circle is a supportive, intentional, reciprocal, befriending relationship made up of one Circle Leader who is living in poverty and two to five Circles Allies who usually are from middle class. A Circle typically meets once or twice a month to build friendships and to work on the Circle Leader's dreams, plans, and goals.

To learn more about this exciting initiative please plan on attending the Community Engagement Session for Ending Poverty in Laramie County on September 29th from 5:30 p.m. to 7:30 p.m. at Laramie County Community College in the CCI center in room 129.

Another opportunity to get involved is to attend the Breakfast with Business Leaders at the Hitching Post Inn in room CCR West on September 30th at 7:30 a.m. to 8:30 a.m.

For either of these events please RSVP to Stephanie Pyle, the Connections Corner Director at sapyle@msn.com or call her at (307) 634-3333.

Troubling News but Don't Panic

2008-09-18T07:27:00.002-06:00

Once again, it is impossible to open the newspaper or watch the news without coming across financial news stories that make you want to run screaming for the hills. The key thing to do during turbulent times such as we are facing now is to remember what your long term financial plan is and not make decisions based upon the hysteria resulting from recent events. If you haven't done so, I encourage you to develop or re-evaluate your financial goals and the steps you are taking to reach them. Hopefully, your investment portfolio is diversified and will allow you to weather this current storm.

Remember that savings and checking accounts in FDIC insured banks are guaranteed up to $100,000. If you have investments in a brokerage account they too are insured against the failure of the brokerage company (up to $500,000) but not against declines in the values of your investments. When it comes to the insurance of your financial assets, having access to current statements is critical so that you can prove how much money you had in your savings account or how many shares of a specific stock or mutual fund you own.

Keep your chin up. The financial news is bound to get better eventually.

Julie

Maximizing Adjustments to Minimize Taxes

2008-09-05T14:41:00.007-06:00

The other day at our staff meeting a comment or two (or even three) was made that I am a type A personality. Of course I protested but just now I found myself gleefully punching numbers into Dinky Towns 1040 tax calculator. Because this isn't the first time nor the second that I have happily plugged numbers into this calculator or others like it, I have finally come to the conclusion that the comments about me being an A personality are right. Be that as it may, I hope you can benefit from my love of playing "what if" with numbers.

Before going into the example I used to look at the difference that using pre-tax money for retirement savings and flexible spending accounts would have on a family's tax burden. I think it might be helpful to explain the process that is used to calculate a person's income tax. Calculating your taxes can be a fairly complicated process. If you find that your situation is complex enough or you are confused enough I highly recommend hiring a professional to assist you. Although I have some valuable information to share, I am not a tax professional and don't have the latest information on all the rules and regulations involved in calculating your taxes.

Calculationg your Income Taxes:

Total Income
― Income exclusions =
Gross Income
― Income Adjustments =
Adjusted Gross Income
― Deductions & exemptions =
Taxable Income

The first step is to calculate total income. Your total income is all the money, property and services that you received in exchange for any work that you did and any profit that you earned from selling your "stuff".

The next step is to calculate Gross Income. Gross Income is calculated by subtracting out the income from total income that is supposed to be excluded. For many of us, the two figures are the same.

The third step is to calculate Adjusted Gross Income. This is the number that I will be "playing" with in my example below. Adjusted Gross Income is calculated by subtracting your adjustments to income (flexible spending accounts and tax-deductible retirement accounts fall in this category) from Gross Income.

Next your subtract either your standard deduction or your itemized deduction from your Adjusted Gross Income.

Then you subtract out your exemptions for your family members. This gives you your Taxable Income.

Now you use the tax table or a tax-rate schedule to determine what taxes you are responsible for.

But before you finish you subtract out any tax credits you might have.

And finally you figure out how much you owe or are owed based upon what you have already paid.

Phew, that was a big process and painful. Luckily for those of us working for someone else, we only have to go through it once a year. Okay, back to my little analysis. I used a family of three for my example (two parents and one child) earning a total of $100,000 per year between the two adults. To keep things simple I didn't include any excludable income so their Total Income and Gross Income are both $100,000. What I did include was a number of adjustments to income so that we can compare how changes to Adjusted Gross Income will impact this hypothetical family's tax burdern.

Without any income adjustments (pre-tax retirement savings or flex spending accounts) this family's Adjusted Gross Income will be the same as their Gross Income ($100,000) and their Taxable Income (Adjusted Gross Income - Deductions [standard deduction = $10,900] and Exemptions [$10,500]) is $78,600. Without taking into consideration any tax credits their tax bill would be $12,338.

The next thing I did was to assume this family spends $500 a year on medical bills so I deducted that by putting it into a Flexible Spending Account for Health Care and I assumed they spend $500 per month on child care so I deducted $6000 a year by putting it into a Flexible Spending Account for Dependent Care. I also helped this family put together a spending plan so they can contribute $15,500 to one of their 401(k) plans and $4,000 to a Traditional IRA. Making these changes dropped this family's Adjusted Gross Income down to $74,000 and subtracting out their Standard Deduction and Exemptions gave them a Taxable Income of $52,600 reducing their tax bill to $7,088. A difference of $5,250 a year.

Now for most of us, putting almost $20,000 a year into a retirement account probably isn't feasible but this examples shows what a difference using your adjustments can make to your tax bill. In the case of this family their after tax income wouldn't be reduced by the full $20,000 they put into retirement accounts since they saved over $5,000 in taxes. In essense, Uncle Sam would be putting over $5,000 into this couples retirement account for them.

Even though the money they are putting into a college savings account for their child doesn't decrease their taxes today, they won't have to pay taxes on the interest that money earns when they use it for approved educational expenses.

Again, I would highly recommend that you contact an income tax professional about strategies that you can use to legally reduce your tax burden.

Let me know if you have any questions or would like additional information on this subject.

Julie

Kids and Money

2008-09-05T14:35:00.005-06:00

Saving--the ability to set aside some money routinely from a stream of income--is at the heart of household asset development. It is the springboard to investing in property or stocks. Though one may believe that people in poor households absolutely cannot save, research has refuted this notion repeatedly.

So how do we learn how to save? I learn alot about how kids see money from talking with families in our 4-H program. There seems to be two different paths parents set their children on one allows kids to spend what they have on their wants, the other encourages kids to think about what they really want and plan their purchases.

The life-long benefits of teaching your children good money habits makes it well worth the effort. Parents can begin to teach the money concepts of earning, spending and saving when children can talk in sentences. Spending refers to how kids decide to use money.

A couple of spending concepts to teach include:

The difference between wants and needs. Help them find a balance between these two spending motivations . Let your child know you know you can't afford to buy everything you want, either. This could be brought out while window-shopping together.

Explain the bigger financial picture. For example, a movie involves not just the price of admission, but gas for the car, popcorn, pop, time and energy.

I'm noticing it's this latter concept, the bigger financial picture that has many young people planning movie nights at each other's houses ----renting a movie, popping some popcorn and sharing a liter of soda is a way to enjoy a Friday evening and still save some of their allowances.

And in my own life, as I work to practice what I preach, I'm learning to filter my purchases through my needs or wants conversation with myself, and trying very diligently to spend less on the wants category. Several years ago I taught a class "Saving Dollars When You Don't Have a Dime to Spare" which helped me better understand my impulsive purchases. i.e. magazines at the grocercy check out; eating lunch out everyday rather than brown bagging, buying from the vending machines. I think there's many teachable moments available to us as we have conversations with young people about needs and wants----theirs and ours.

Lost account information

2008-09-03T16:13:00.003-06:00

Recently, several banks in Wyoming were affected by a lost bag with a data tape containing account information. It sounds unlikely that the information will be misused however all account holders of the affected banks received a letter explaining protective measures to take including a free one-year membership to Identity Guard Credit ProtectX3sm.

If anyone ever becomes a victim of identity theft, a helpful four-step guide is outlined at the Federal Trade Commission website, http://www.ftc.gov/.

Confused about how to save for your child's college education?

2008-09-02T10:42:00.003-06:00

Well you're not alone.

Over the weekend our good friends and their 4 year old daughter came to visit us. In addition to the hiking and horseback riding we also ended up discussing taxes and college savings plans. Not having children of my own, I haven't spent a lot of time looking into the details of tax-deferred college savings plans but I know how important they can be for a family with young children.

As a result of our conversations I decided to do some research to help my friends out and figured that you might be interested in what I came up with.

Liz Pulliam Weston on MSN Money does a great job explaining the difference and the benefits of the college savings options that are available in her article "College plans for the rich, poor and in-between" and provides what she considers the top 5 college savings plans in her article "The 5 best college-savings plans".

Check out the two articles and let me know what you think.

Later this week I'll explain how college savings plans and other investment choices can help to reduce your taxes. Less taxes = more money in your pocket.

Julie

Upcoming Money Management Workshops

2008-08-27T10:36:00.002-06:00

As you may have noticed the topic for the October session of the Fall Money Management Series has changed slightly. Given the expectation of rising heating costs we thought it would be timely to include tips on how to control your home heating expenses at the same time that we talk about strategies to make the most of your money. The two just seem to go hand in hand. Be sure to mark your calendars for October 15th. The workshop will start at 6 PM.

Along these same lines. The Wyoming Home Performance Alliance is hosting a Home Energy Makeover Workshop & Expo in Cheyenne on October 4th. Tickets will be available at the Laramie County Extension Office.

I will keep you posted with more information as we get closer to the date of the Money Management Workshop and the Home Energy Makeover Workshop & Expo.

Julie

CREDIT CARDS CAN BE A COSTLY LESSON

2008-08-22T16:04:00.003-06:00

Credit card debt continues to increase across the nation and savings accounts continue to decline. This is not a good omen when the cost of consumer goods continues to increase. During the holiday season the pressure to buy increases greatly. It’s important to evaluate your financial standing and your credit card debt and communicate your financial plans to your spouse and children.

Credit card balances should be kept low and paid off monthly. Resist the temptation to buy more than your income can support. In 2001, the average family had a credit card debt of $7,000; in 2004 this amount had grown to $12,000. This includes the 40% who paid their debt off each month. Those who carry a $7,000 debt balance pay approximately $1,400 annually in interest. Using this example, if you were in your 20’s, and if the average monthly payment of $116 could instead be invested in a retirement account, it would grow to approximately $180,000 at 5% interest or $330,000 at 7%, by the time you reached retirement.

Credit card companies are targeting young people, especially those of college age. The more immediate consequences of misuse of credit include being rejected for a car or student loan or even a home loan. It is important to budget your money and make a plan, determining budget categories and following your budget.

Every time you prepare to make a purchase ask yourself whether it is a need or a want. Much of what we buy falls in the “want” category. These things are okay to buy as long as they will fit in our budget and we can live within our income. If we have to purchase them with a credit card, with no clear-cut payoff plan, we are starting down a troubled path.

Here are 15 things that indicate credit card trouble:
Your credit card balances are rising while your income is stable or decreasing.
You are only paying the minimum amounts required on your accounts, or maybe even less than the minimums.
You are juggling bills and applying for new credit cards to pay off old ones.
You have more credit cards than a gambler has poker chips.
You are at or near the limit on each of your credit cards.
You consistently charge more each month than you make in payments.
You are working overtime to keep up with your credit card payments.
You don’t know how much you owe and you really don’t want to find out.
You have received phone calls or letters about delinquent bill payments.
You are using your credit card to pay necessities like food or gasoline.
Your credit cards are no longer used for the sake of convenience, but because you don’t have money.
You are dipping into your savings or IRA to pay your monthly bills.
You are hiding the cost of your purchases from your spouse.
You are playing the card game by signing up for every credit card that sends you an offer.
You have lost your job, or are fearful that you are about to, and are concerned about how you are going to pay all your bills.

If you feel you need assistance in developing a plan to deal with overwhelming debt there are free credit counseling services available. Be sure they are accredited by the National Foundation for Consumer Credit (http://www.nfcc.org/). Find a service near you by going to http://www.debtservice.org/.

internet security - getting the basics right

2008-08-22T14:34:00.002-06:00

It's always good to get the basics right, and when we risk losing all our computer's data, the stakes become high. If your personal computer doesn't have adequate security, others may gain unauthorized access to the information stored on your PC or your browser. With this information they can also gain access to your accounts and personal information. You should take precautions to protect your computer from unauthorized access and use.

A good Internet security plan begins at home. Here are a few tips to help you safeguard your personal and account information when using online services:
· Install anti-virus software, a firewall and spyware-detection software on your PC; and update this software on a regular basis, as recommended by the software providers. Remember, new viruses continue to be created. Always check to make sure the security software is running before accessing the Internet.
· Do not respond to emails, web pages or telephone inquiries requesting you to verify your account information. Your providers will likely never ask you to verify your account information, user name or password, via an email using a non-secure web site. Never provide personal or account information or respond to any attempt to collect this.
· Keep your PC and browser updated with current patches that are released by your system vendor. Be sure to download patches only from official vendors' web sites, and not from third-party providers.
· Forward suspicious emails claiming to be from your service provider to that provider so that they are aware of the risk their customers might face.

Naturally, never share your password with anyone, even someone you know. Providers of online services will ask you to create a username and password. In creating your password, do not use numbers or words that can be easily guessed, such as your phone or street number, or your child’s name.

Teaching your kids to budget and spend money wisely

2008-08-22T09:30:00.001-06:00

As promised yesterday, today I am going to tell you about a great tool for teaching your kids to budget and spend money wisely. If done right, this tool shouldn't cost you an additional cent. My guess is, you already have this tool available to you.

Are you wondering what it is!?! Is the anticipation getting to you yet!?! Are you ready to strangle me if I don't hurry up and tell you!?!

Okay, okay - - it's an allowance. "An allowance" you say in puzzlement. Yep, an allowance. Not only is it a source of fun spending money for your kids but used wisely, it can teach them valuable lessons about saving money and making decisions on where to spend money.

Check out the article "Back to School Allowance Advice for Parents" on http://www.familycorner.com/

Julie

Back-To-School Budgeting

2008-08-21T14:58:00.001-06:00

Back-to-school season is here again and with it comes the spend spend spending on back-to-school supplies. With fuel prices incredibly high and winter heating expected to be costlier than last year you are probably feeling a pinch (or a major squeeze) on your wallet. I know if I had kids I would be squirming right now trying to figure out how to pay for it all.

I can't make the expenses go away but I did find a great resource which provides tips on how to minimize your spending on back-to-school "STUFF". Check out the article "10 Steps to Conquering Back to School Spending" on http://www.familycorner.com/.

I highly encourage you to include your kids not only in the budgeting process for the back to school spending but also the budget for your household. Including them in the process now will give them the tools they need to make sound financial decisions when they are adults.

Check back tomorrow for some great information on another tool to teach your kids how to handle money.

Until then.

Julie

Rainy weather heralds winter weather

2008-08-15T16:24:00.000-06:00

Today's rainy weather reminds me that winter will be here before we know it. As you have probably heard, this winter is going to be much tougher on our wallets than previous winters have been. I know this first hand. We just ordered our propane for the winter and it is almost a dollar a gallon more than it was last year.

For helpful hints and tips on reducing your heating costs check out the Montana Weatherization Training Center at http://www.weatherization.org/energytopics.htm.

Julie