by NFS | Sep 2, 2010 | Archives
Yesterday marked the beginning of a month when the focus turns to a topic that most people don’t want to talk about or even think about: life insurance. But they do so at their own—and their family’s—peril. September is Life Insurance Awareness Month (LIAM). It’s a national campaign designed to draw attention to the fact that many people have no or inadequate amounts of life insurance, which, if not remedied, could have serious and long-lasting consequences for their families.
It’s not about scare tactics. It’s not about getting you to do something you don’t want to. It’s about staring reality in the face. LIMRA just published a study with some shocking numbers. But there is just one number that I want to focus on here: 11 million. Eleven million American families with children under 18 have no life insurance. 11. Million.
Numbers that big can often make your eyes glaze over … a thousand, a million—lots, right? Well, let’s make it individual. Let’s take a look at one girl, Tracy Basden, who found herself in financially dire straits because her parents had no life insurance. I’ve watched her video at least a dozen times, and it never fails to make me cry. Watch it here.
Imagine your children without parents and without money. How does that feel?
Now here is an example of a family that had proper life insurance in place. Actress Leslie Bibb is the spokesperson for LIAM, and says that she was fortunate to have a father “that loved his family enough to expect the unexpected. His life insurance was his legacy of love to our family, allowing us to carry on with our lives and to continue living.” While also heart-wrenching, her story has a very different ending. You can watch it here.
Life Insurance Awareness Month is not a really a national campaign, it’s a personal campaign. What are you going to do today to ensure that your family is taken care of if you die prematurely? You can come up with a thousand excuses for not getting the life insurance you need—11 million families have. I urge you to spend a few minutes with LIFE’s online Life Insurance Needs Calculator to see what amount of insurance you may need. And keep in mind that buying life insurance may be much more reasonable than you expect. For example, a healthy 35-year-old male can get a $250,000, 20-year level term policy for about $170 a year.
Make today the day that you stop being part of the 11-million-family statistic. Call me today for your free comprehensive life insurance review!
by NFS | Sep 1, 2010 | Archives
Life insurance …
1. Buys time – Allows loved ones to focus on their grief by helping to pay for the funeral and other final expenses.
2. Provides a fresh start – Lets loved ones start with a clean slate by helping to pay off credit card bills, outstanding loans and even the mortgage.
3. Generates income – Helps replace lost income for years to come so that surviving family members can continue to pay for life’s necessities.
4. Offers flexibility – Gives a surviving spouse the chance to take time off from work or to switch to a job that offers a more flexible work schedule.
5. Creates opportunities – Can provide funding to start a business, or pay for schooling so surviving family members can train for a new career.
6. Funds the future – Offers a way to fund longer-range goals like a college education for the kids or a secure retirement for a surviving spouse.
7. Leaves a legacy – Gives parents the chance to leave future generations with the legacy of long-term financial security.
by NFS | Aug 31, 2010 | Archives
Being in debt isn’t necessarily a terrible thing. Between mortgages, car loans, credit cards, and student loans – most people are in debt. Being debt-free is a great goal, but you should focus on the management of debt, not just getting rid of it. It’s likely to be there for most of your life – and, handled wisely, it won’t be an albatross around your neck.
You don’t need to shell out your hard-earned money for exorbitant interest rates, or always feel like you’re on the verge of bankruptcy. You can pay off debt the smart way, while at the same time saving money to pay it off faster.
Know Where You Are
First, assess the depth of your debt. Write it down, using pencil and paper, a spreadsheet like Microsoft Excel, or a bookkeeping program like Quicken. Include every financial situation where a company has given you something in advance of payment, including your mortgage, car payment(s), credit cards, tax liens, student loans, and payments on electronics or other household items through a store.
Record the day the debt began and when it will end (if possible), the interest rate you’re paying, and what your payments typically are. Add it all up, painful as that might be. Try not to be discouraged! Remember, you’re going to break this down into manageable chunks while finding extra money to help pay it down.
Identify High-Cost Debt
Yes, some debts are more expensive than others. Unless you’re getting payday loans (which you shouldn’t be), the worst offenders are probably your credit cards. Here’s how to deal with them.
- Don’t use them. Don’t cut them up, but put them in a drawer and only access them in an emergency.
- Identify the card with the highest interest and pay off as much as you can every month. Pay minimums on the others. When that one’s paid off, work on the card with the next highest rate.
- Don’t close existing cards or open any new ones. It won’t help your credit rating.
- Pay on time, absolutely every time. One late payment these days can lower your FICO score.
- Go over your credit-card statements with a fine-tooth comb. Are you still being charged for that travel club you’ve never used? Look for line items you don’t need.
- Call your credit card companies and ask them nicely if they would lower your interest rates. It does work sometimes!
Save, Save, Save
Do whatever you can to retire debt. Consider taking a second job and using that income only for higher payments on your financial obligations. Substitute free family activities for high-cost ones. Sell high-value items that you can live without.
Do Away with Unnecessary Items to Reduce Debt Load
Do you really need the 800-channel cable option or that dish on your roof? You’ll be surprised at what you don’t miss. How about magazine subscriptions? They’re not terribly expensive, but every penny counts. It’s nice to have a library of books, but consider visiting the public library or half-price bookstores until your debt is under control.
Never, Ever Miss a Payment
Not only are you retiring debt, but you’re also building a stellar credit rating. If you ever move or buy another car, you’ll want to get the lowest rate possible. A blemish-free payment record will help with that. Besides, credit card companies can be quick to raise interest rates because of one late payment. A completely missed one is even more serious.
Do Not Increase Debt Load
If you don’t have the cash for it, you probably don’t need it. You’ll feel better about what you do have if you know it’s owned free and clear.
Shop Wisely, and Use the Savings to Pay Down Your Debt
If your family is large enough to warrant it, invest $30 or $40 and join a store like Sam’s or Costco. And use it. Shop there first, then at the grocery store. Change brands if you have to and swallow your pride. Use coupons religiously. Calculate the money you’re saving and slap it on your debt.
Each of these steps, taken alone, probably doesn’t seem like much. But if you adopt as many as you can, you’ll watch your debt decrease every month.
by NFS | Aug 30, 2010 | Archives
There is still time left to take advantage of the American Opportunity Tax Credit, a credit that will help many parents and college students offset the cost of college. This tax credit is part of the American Recovery and Reinvestment Act of 2009 and is available through December 31, 2010. It can be claimed by eligible taxpayers for college expenses paid in 2009 and 2010.
Here are six important facts the IRS wants you to know about the American Opportunity Tax Credit:
- This credit, which expands and renames the existing Hope Credit, can be claimed for qualified tuition and related expenses that you pay for higher education in 2009 and 2010. Qualified tuition and related expenses include tuition, related fees, books and other required course materials.
- The credit is equal to 100 percent of the first $2,000 spent per student each year and 25 percent of the next $2,000. Therefore, the full $2,500 credit may be available to a taxpayer who pays $4,000 or more in qualifying expenses for an eligible student.
- The full credit is generally available to eligible taxpayers who make less than $80,000 or $160,000 for married couples filing a joint return. The credit is gradually reduced, however, for taxpayers with incomes above these levels.
- Forty percent of the credit is refundable, so even those who owe no tax can get up to $1,000 of the credit for each eligible student as cash back.
- The credit can be claimed for qualified expenses paid for any of the first four years of post-secondary education.
- You cannot claim the tuition and fees tax deduction in the same year that you claim the American Opportunity Tax Credit or the Lifetime Learning Credit. You must choose to either take the credit or the deduction and should consider which is more beneficial for you.
Complete details on the American Opportunity Tax Credit and other key tax provisions of the Recovery Act are available at IRS.gov/recovery.
by NFS | Aug 26, 2010 | Archives
The Internal Revenue Service may have money for you. Was your income below the limit that requires you to file a tax return? If so, you may still be due a refund.
If you have not filed a prior year tax return and are due a refund, you should consider filing the return to claim that refund. If you are missing a refund for a previously filed tax return, you should contact the IRS to check the status of your refund and confirm your current address.
Unclaimed Refunds
Some people may have had taxes withheld from their wages but were not required to file a tax return because they had too little income. Others may not have had any tax withheld but would be eligible for the refundable Earned Income Tax Credit.
- To collect this money a return must be filed with the IRS no later than three years from the due date of the return.
- If no return is filed to claim the refund within three years, the money becomes the property of the U.S. Treasury.
- There is no penalty assessed by the IRS for filing a late return qualifying for a refund.
- Current and prior year tax forms and instructions are available on the Forms and Publications page of IRS.gov or by calling 800-TAX-FORM (800-829-3676).
- Information about the Earned Income Tax Credit and how to claim it is also available on IRS.gov.
Undeliverable Refunds
Were you expecting a refund check but didn’t get it?
- Refund checks are mailed to your last known address. Checks are returned to the IRS if you move without notifying the IRS or the U.S. Postal Service.
- You may be able to update your address with the IRS on the “Where’s My Refund?” feature available on IRS.gov. You will be prompted to provide an updated address if there is an undeliverable check outstanding within the last 12 months.
- You can also ensure the IRS has your correct address by filing Form 8822, Change of Address, which is available on IRS.gov or can be ordered by calling 800-TAX-FORM (800-829-3676).
- If you do not have access to the Internet and think you may be missing a refund, you should first check your records or contact your tax preparer. If your refund information appears correct, call the IRS toll-free assistance line at 800-829-1040 to check the status of your refund and confirm your address.
