Recently, there has been a series of deployed military families that have been victimized by compromised personal data given through social networking sites. Be careful with sharing significant personal data when connecting through these social sites.
The most recent scam involves identity thieves and imposters using social networking sites to contact relatives of deployed U.S. military personnel, most specifically grandparents. The impostor advises the grandparents that he is returning home on leave from Iraq and asks the grandparents to keep his presence secret so he can surprise his parents. A short time later, the grandparents are again contacted and the impostor advises them that he and a friend are stranded with a broken down car. The imposter then asks the grandparents to wire a significant amount of money to cover the cost of the repairs.
Always be cautious of the personal information you chose to share on these social networking to ensure that no exploitable information is available. Always verify the identity of anyone who contacts you to share personal information, pin numbers, social security numbers, or fund transfers. Do not act on your impulse, check with your financial institution to ensure unauthorized individuals do not have access to your accounts. Always know who is on the other end of the line.
Tuesday, June 30, 2009
Friday, June 26, 2009
Financial Tip of the Week: Overdraft Protection
Avoid overdraft fees by keeping a set minimum balance in your checking account at all times. If you choose to use overdraft protection (usually a line of credit or savings account connected to your checking account), know the fees. Although there are fees associated with overdraft protection, the fees are much less than if you are charged the higher non-sufficient funds fees.
Thursday, June 25, 2009
Military Tips while Deployed
So my day job is teaching financial education to the military. I have the privilege and honor of serving an incredible audience. This post is specifically for service members who are preparing or in deployed locations.
The first is the Savings Deposit program (SDP). SDP is a one of a kind, which can only be utilized by deployed service members while in theater. This program allows service members to deposit up to $10,000 in a savings account that earns 10 percent annually (compounded quarterly). To be eligible, the service member must meet the criteria and start the program with the finance office in the deployed location. For more info, go to: http://www.dfas.mil/militarypay/woundedwarriorpay/savingsdepositprogramsdp.html
Secondly, if you are young and deployed and have extra cash, consider putting the funds into a tax-free Roth account. If you used deployed (tax-free) money in a Roth, then you will never be paying taxes on that money (assuming you use it for the specified purpose). Roth IRA earnings are also tax free for education and for a first time home purchase. Remember that for 2009, you can only put $5,000 into a Roth with a $1,000 catch up contribution for those over 50. (Here’s a good break down of the differences between a Roth and an IRA http://www.fool.com/money/allaboutiras/allaboutiras03.htm).
Finally, once you’ve maxed SDP, the Roth IRA, I would also suggest you max your Thrift Savings Plan (TSP). TSP is the federal government’s 401(K)-style plan. You can place pre-tax contributions up to $16,500 in 2009 into your TSP account, unless you are in a combat zone. The combat zone tax exclusion for 2009 is up to $49,000 including bonuses & combat pay!! That’s a great way to get jump start on your retirement. Oh and note, tax-exempt contributions will not be taxable even after withdrawals!! You can’t beat this deal for a retirement tax advantage. TSP offers a choice of six low cost funds, including 2 bond funds (G&F), 3 stock funds (C,S,&I), and lifecycle funds (L). For more info on the combat zone tax exclusion go to: http://www.tsp.gov/forms/tspbk08.pdf (see page 9) or see www.tsp.gov
And as always, get a second opinion for your specific financial situation. Military members can call Military OneSource (www.militaryonesource.com) 24/7, 365 days a year at no charge. They have financial counselors and planners to help you with your specific situation. Best wishes and thank you for giving all of us back at home the privilege of freedom.
The first is the Savings Deposit program (SDP). SDP is a one of a kind, which can only be utilized by deployed service members while in theater. This program allows service members to deposit up to $10,000 in a savings account that earns 10 percent annually (compounded quarterly). To be eligible, the service member must meet the criteria and start the program with the finance office in the deployed location. For more info, go to: http://www.dfas.mil/militarypay/woundedwarriorpay/savingsdepositprogramsdp.html
Secondly, if you are young and deployed and have extra cash, consider putting the funds into a tax-free Roth account. If you used deployed (tax-free) money in a Roth, then you will never be paying taxes on that money (assuming you use it for the specified purpose). Roth IRA earnings are also tax free for education and for a first time home purchase. Remember that for 2009, you can only put $5,000 into a Roth with a $1,000 catch up contribution for those over 50. (Here’s a good break down of the differences between a Roth and an IRA http://www.fool.com/money/allaboutiras/allaboutiras03.htm).
Finally, once you’ve maxed SDP, the Roth IRA, I would also suggest you max your Thrift Savings Plan (TSP). TSP is the federal government’s 401(K)-style plan. You can place pre-tax contributions up to $16,500 in 2009 into your TSP account, unless you are in a combat zone. The combat zone tax exclusion for 2009 is up to $49,000 including bonuses & combat pay!! That’s a great way to get jump start on your retirement. Oh and note, tax-exempt contributions will not be taxable even after withdrawals!! You can’t beat this deal for a retirement tax advantage. TSP offers a choice of six low cost funds, including 2 bond funds (G&F), 3 stock funds (C,S,&I), and lifecycle funds (L). For more info on the combat zone tax exclusion go to: http://www.tsp.gov/forms/tspbk08.pdf (see page 9) or see www.tsp.gov
And as always, get a second opinion for your specific financial situation. Military members can call Military OneSource (www.militaryonesource.com) 24/7, 365 days a year at no charge. They have financial counselors and planners to help you with your specific situation. Best wishes and thank you for giving all of us back at home the privilege of freedom.
Wednesday, June 24, 2009
Quick Tips: Ideas to Walk Away & Save
Here are some quick tips, which may help put purchasing decisions into perspective:
* If you find something you want to buy and can’t live without, walk away from the purchase. If you still desperately want it 24 hours, have thought through whether you can afford it, if it’s for a good price, etc – then go back and purchase it. But if you’ve already forgotten about it, then you have your answer. This goes for a $2 checkout register purchase or a $300 clothing purchase.
* Freeze your credit card in a bucket of water. If by the time the credit card is completely and naturally thawed out (no cheating here), then you can get it. This is your “cool-down” period.
* Bring a fiscally conservative family member to help you shop. They will tell you the honest truth: whether that outfit really looks good on you – or if it’s a waste of money.
* Stick to a shopping list, and don’t waste time browsing! And, as my boss currently reminded me, use coupons!
* Limit your exposure to advertising. Scientific studies have shown that the more we’re exposed to advertising – whether it be on TV, in magazines, etc – the more likely we are to buy.
* Start an internet wish list by saving the URLs of the items that you would love to buy. If you use the book-marked pages, then you won’t forget the items you desperately want even if it takes you two or four weeks to save up the money for the purchase. (And quite honestly, if you do forget about the purchase, then I think you’ve already answered your own question about whether you really wanted it…)
* Collect your spare change or start an electronic savings account that pulls a small amount from your checking every week. Use that money as a “fun” account. Anything goes, but once the money is gone, you have to start saving again to make that next purchase
With this in mind, you can stick to your spending plan. I used to tell my college students, “If you can learn to manage a $500, you can manage $5 million”. It worked for Warren Buffet and it can work for you. Learn to manage what you have now and as more is given to you, you will have the knowledge and skills to manage the larger income.
The habits you create now, whether you are a struggling college student or a newly minted graduate, will be the habits that remain with you throughout your life As one of my favorite mentors says, “It’s not how much money you make, it’s how much money you keep.”
* If you find something you want to buy and can’t live without, walk away from the purchase. If you still desperately want it 24 hours, have thought through whether you can afford it, if it’s for a good price, etc – then go back and purchase it. But if you’ve already forgotten about it, then you have your answer. This goes for a $2 checkout register purchase or a $300 clothing purchase.
* Freeze your credit card in a bucket of water. If by the time the credit card is completely and naturally thawed out (no cheating here), then you can get it. This is your “cool-down” period.
* Bring a fiscally conservative family member to help you shop. They will tell you the honest truth: whether that outfit really looks good on you – or if it’s a waste of money.
* Stick to a shopping list, and don’t waste time browsing! And, as my boss currently reminded me, use coupons!
* Limit your exposure to advertising. Scientific studies have shown that the more we’re exposed to advertising – whether it be on TV, in magazines, etc – the more likely we are to buy.
* Start an internet wish list by saving the URLs of the items that you would love to buy. If you use the book-marked pages, then you won’t forget the items you desperately want even if it takes you two or four weeks to save up the money for the purchase. (And quite honestly, if you do forget about the purchase, then I think you’ve already answered your own question about whether you really wanted it…)
* Collect your spare change or start an electronic savings account that pulls a small amount from your checking every week. Use that money as a “fun” account. Anything goes, but once the money is gone, you have to start saving again to make that next purchase
With this in mind, you can stick to your spending plan. I used to tell my college students, “If you can learn to manage a $500, you can manage $5 million”. It worked for Warren Buffet and it can work for you. Learn to manage what you have now and as more is given to you, you will have the knowledge and skills to manage the larger income.
The habits you create now, whether you are a struggling college student or a newly minted graduate, will be the habits that remain with you throughout your life As one of my favorite mentors says, “It’s not how much money you make, it’s how much money you keep.”
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