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January 12, 2012

Frugal Forum

Paying more, but getting less

There was an ABC TV broadcast earlier this year that raised our attention to some subtle changes that we should watch out for at the grocery store. They reported that the average prices at the grocery store would only rise about 3% this year. That sounded like good news until you heard the rest of the story.

Are you owed unclaimed money?

I often receive emails claiming that I am the long-lost son of a millionaire who put money in trust for me in a foreign bank account and that all I have to do is provide some personal information to prove my identity to claim it. This is a type of scam that is becoming more frequent.

Is your privacy protected?

Every so often, we receive a notice from the financial institutions and credit card issuers where we have accounts explaining the extensive procedures they have in place to protect our privacy by not sharing our personal information with any of their business connections. They go to great lengths to protect our information. Just try to obtain information about your spouse’s account. You won’t get it.

And here’s the rest of the story

My recent column entitled, “Have you been declared prematurely dead?” reported that the Social Security Administration erroneously includes in its Death Index database approximately 14,000 persons annually who, in fact, are not dead.

Countdown to 65

In each day of calendar 2011, an average of 7,000 persons will reach the age of 65. This is the first wave of Baby Boomers – those born in the years 1946 to 1964. According to a survey conducted by AARP in December, 2010, 31% of those Boomers reaching age 65 in 2011 are still working, and 40% of them do not intend to ever retire. This is a bit of a shift from prior generations, where 65 was the magic year for retirement.

Have you been prematurely declared dead?

The Social Security Administration maintains a Death Master File, which contains the Social Security numbers, names, birth dates, death dates, zip codes and last-known residences of more than 87 million deceased Americans. A recent headline in CNN Money reported that “Social Security wrongly declares 14,000 people dead each year.” Approximately one in every 200 deaths are incorrectly recorded in the Death Master Files of the Social Security Administration.

What’s the best age for retirement?

In my father’s day and age, this wasn’t even a question. It was 62, then 65, and now?? Well, now depending on when you were born, you have a different “full retirement age” according to the Social Security Administration. Leave it to the Federal government to complicate things. If you look through the Social Security Administration’s website, it is loaded with detailed information to help you determine when the best age for retirement is “just right” for you.

Should we pay down that mortgage?

The U.S. government is now struggling to devise a plan for managing our debt. Should they raise the debt ceiling or cut spending? As I watch the politicians battle over the issues, I am reminded of a faux pas I made early in life when deciding what to do about my college education loans.

Financing your retirement

Given all the challenges we are facing with our current economy, the topic of retirement financing is frequently discussed among Sun City neighbors. In times past, we relied on financial planners to provide the expertise, prudence, and guidance in managing our investments to provide for retirement.

Health savings accounts setup

This article is targeted to our Sun City Residents who are between the ages of 55 and 65. The rising costs of health insurance have forced many of us to change our health care coverage to higher deductible plans to reduce the insurance premiums.

Inheritance and Estate Taxes

I received a number of emails from readers who responded to our last column on the Federal Gift Tax. They noted that the Gift Tax was imposed on the donor versus the recipient of the gift, and they raised the question of what taxes, if any, must be paid by the recipients. Currently, there are no taxes paid by recipients of gifts at the Federal or Illinois state levels for Illinois residents. Residents of other states should check with the applicable state’s revenue department to determine if the state imposes taxes on recipients of gifts.

The Federal Gift Tax

The current economic environment has created some unique circumstances for us Baby Boomers. Our sources of income from retirement resources may be fixed or declining due to market losses, yet, we see ourselves needing to pay for goods and services that are rising in cost. We may also need to subsidize family members who are victims of the unemployment crisis or fund long term care costs for aging parents.

Credit vs. Debit Cards

A 2010 survey conducted by Credit.com revealed how American consumers pay for their purchases. The survey said 40% use cash, 39% use debit cards, and only 21% use credit cards. Apparently the downturn in the economy has driven the majority of consumers to not spend what they don’t have.

Can we afford sustainable living?

“Sustainable living” is a lifestyle that attempts to reduce the use of the earth’s natural resources – what we commonly refer to as “going green.” A recent study conducted by OgilvyEarth, a leading sustainability consultancy, found that 82% of Americans have good green intentions, but only 16% are dedicated to fulfilling these intentions.

Are you an impulsive buyer?

A recent study conducted about consumer buying habits by ShopSmart magazine indicated that 60% of the respondents identified themselves as impulsive buyers. This didn’t really surprise me after I considered a typical shopping experience in the grocery store. It’s like entering a minefield.

Counterpoint to ‘We are Victims of Our Own Success’

I recently received a letter from one of our readers (who will remain anonymous) in response to the column on “We are Victims of Our Own Success.” That column referenced a recent ABC News segment called “Made in America.” Our reader made some very interesting insights which I would like to share with you here.

Labels and Boxtops for Education make difference for Grandchildren

For more than 37 years, Labels for Education has been awarding free educational equipment to schools in exchange for proofs of purchase from the Campbell family of brands. Today, over 60,000 schools and organizations are registered with Labels for Education, benefiting more than 42 million students.

We are victims of our own success

Remember when we learned in school about the tremendous strides in innovation and economic growth that occurred between the 18th and 19th centuries during the Industrial Revolution? It started in the United Kingdom and spread to America.

BIG savings with coupons

In my younger years, I used to save the “points” that came inside the Mallo Cup and Peanut Butter Cup candy bars. I can remember cashing in the points for all sorts of prizes. Then there were the prizes inside the Cracker Jack boxes. I would drive my mother crazy at the grocery store “whining” for candy just because I needed a few more points so I could send away for the next prize. Now, many years later, we carry on the tradition with coupons.

Card issuers and retailers still struggle to prevent fraud

According to a study conducted by creditcards.com, credit and debit card fraud is the No. 1 fear of Americans in the midst of the global financial crisis. Concern about fraud supersedes that of terrorism, computer and health viruses, and personal safety.

What are those tickets really worth?

As I write this column, the whole community is heating up over the upcoming Bears vs. Packers Conference Championship. Sun City has a huge following of fans on both sides. The fever is at an all-time high. The talk of the community is who has tickets to the game.

The worst that will happen is they might say “no”…

I recently listened to a presentation by an entrepreneur who held a personal philosophy that I found fairly unique. Initially, I thought he was a bit bold and overbearing, but as I listened further, I began to see how simple his approach really was.

Year-end Planning Tips

The year end is fast approaching. The older I get the faster the days seem to fly. Well, it’s that time of the year when we need to step back and take a look at where we are headed and where we might want to change direction. I thought I would raise some questions, some food for thought, as we close the first decade of the 21st century and open the second decade.

The Perfect Holiday Gift…Card

This is the time of year that the big decisions are made. The closer the holidays come, the higher the anxiety level goes. What to get for those special people in our lives that seem to already have everything.

Are you getting the lowest cost per mile with your vehicle?

The cost of fuel is rising again and just went over $3.00 per gallon. I can remember when I was in the army, I could buy gas on the base at $.25 per gallon. Oh, for those days again! The rising costs sure keep us looking for ways to reduce our fuel consumption and get the best cost per mile.

Have you started your Holiday shopping yet?

It won’t be long before the stores will be playing “Jingle Bells” and “Here comes Santa Claus.” Yes, the season is upon us. The traffic will be picking up, parking lots will be full, waiting lines at check-outs will be getting longer, and store hours will extend for the holiday shopping sprees. But there is an alternative.