Your question

Mon, 28 Feb 2011 19:05:46 -0500

I was hoping someone could give me some tips on how I can learn to better manage my money and save it. Are there any tricks any of you use that has helped? I've heard putting your change into a bottle at the end of the day and using the total for spending money from friends but are there any others any of you have tried? I really need to start saving my money today because my bills are piling up. Thank you

Your question

Mon, 27 Dec 2010 14:34:23 -0500

I really need to save money, any advice?

Your question

Fri, 17 Dec 2010 14:07:13 -0500

I have been married now for five years and times are so tough right no with money. What is the best way to get through these rough times without fighting every time we try to talk about our money situation????

Your question

Sun, 28 Nov 2010 20:58:38 -0500

How much do wedding dresses usually cost? Any tips keeping a small wedding cheap? How much might expenses add up to?

Your question

Thu, 18 Nov 2010 16:03:56 -0500

I graduated college 2 years ago and the debt I collected from it is big. I have a job that doesn't pay me a lot but I can pay my bills. I'm not the only one of my friends with debt but I feel like they aren't as stressed about it as I am. I feel guilty anytime I go out with friends and spend money but I'm a young 20-something woman and feel like I should have a social life and I don't because all the extra money I have I put towards my debt. It's starting to really bring me down because I feel like all I do is work and stay home. Does anyone else have this problem? Or any advice on how to maintain my responsibilities and have a social life too?

Tax Day 3: Time to Execute... Getting your Taxes Done!

Thu, 15 Apr 2010 22:42:27 -0400

Time to Execute...
Getting your Taxes Done!

Whether doing taxes on your own or not, we recommend you understand these basic concepts:
•Progressive Tax System
•Witholdings
•Credits/Refunds

Progressive Tax
The US has a progressive tax system. This has nothing to do with social and political views of people who work at the IRS. It simple means that you pay a progressively higher tax rate as you make more money.

It is relatively easy to pin down your tax bracket:

Currently, federal tax brackets range from 10% to 35% of taxable income. But your taxable income is not what’s in your weekly paycheck. It’s what’s left after exemptions, deductions, and credits are taken out.

2010 Tax Brackets

The minor complication is that your tax bracket is different from your tax rate. Your tax bracket is the rate you pay on the "last dollar" you earn whereas your tax rate is the percent of your income you pay to taxes. Luckily, your tax rate is usually substantially lower than your tax bracket.

Withholdings
Though April 15 is officially Tax Day, the truth is that taxes affect you all year long. You know how your gross paycheck is significantly lower than your salary? That’s because of a little thing called withholdings.

Withholding is the amount held back from each paycheck to pay your income and Social Security taxes for the year. Withholdings keep you from having to pay your taxes all at once when you file your return. The W-4 form you filled out when you started your job determines how much money is withheld from your paychecks.

Credits/Refunds
You get a “refund” from the government if the tax you paid through your withholdings is more than what you actually owe and/or you are able to claim more refundable tax credits than what you owe in taxes.

In 2009, the IRS reports that the average refund was $2,683. While it may seem exciting to get a refund check from the government, you’ve essentially just given the government a long-term interest-free loan! It’s better to owe money at tax time than to get a hefty refund, because it means that you’re the one who’s gotten the loan. Better yet, you want to come out just about even at tax time, maybe owing a small amount. If you didn’t get it right this year, don’t worry. Just reevaluate your W-4 and amend it for the future. See LV’s, "I Want to Fill Out a W-4 Checklist" for help.

Now that you have a better sense of this whole tax business (look who can define withholdings and refunds like a pro!), it’s time to pick your weapons and get started! No more procrastinating now that you know what you need to know! As a reminder...

If you’re doing your taxes yourself...
Go through the LearnVest Checklist “Understand My Tax Deductions.” It will hold your hand through standard and itemized deductions, plus it will help you calculate your AGI (Adjusted Gross Income).

Go to the IRS website. Everyone’s doing it. In 2009, almost 200 million people visited IRS.gov. The IRS is actually the single best place to turn when you have a tax-related question. In addition to their comprehensive website, they offer both a recorded information service (1.800.829.4477) and a live assistance line (1.800.829.1040).

If you need a little help...
These are great tax programs that guide you through the process step-by-step:
•Turbo Tax
•H&R Block
•FreeTaxUSA.com
Check out the table below for more info.

If you need even more help...
An accountant may make sense for you. It’s important that you trust your Accountant so that there is no shady business! (You don’t want your 2010 tax year to make front page headlines if you decide to run for political office one day!)
LearnVest's Checklist “I Need to Find an Accountant”
8 Tips to Help You Choose a Tax Preparer

Some FAQs...
If you encounter questions along your tax way, we like these resources:
What do I need to know about paying taxes if I’m in college?
What if I bought a new car in 2009?
What if I work freelance?

Click here to see common life events that can affect your taxes.

Want to receive Financial Resolution Bootcamp in your inbox?

Go to bootcamp.learnvest.com and sign up to recieve 20 days of daily tips and action items to get your finances in order for spring!

Help Us Improve...

The Bootcamp is a brand new product we're excited to roll out, but, we really need your feedback to make it the best it can be! Email Feedback@learnvest.com to tell us what you think!

Tax Day 2: Gathering Your Paperwork

Fri, 09 Apr 2010 01:45:03 -0400

Total Action Time: 7 minutes

One of the more intensive parts of filing taxes is getting all the necessary paperwork together. All those receipts you saved, crumpled up in the bottom of your purse (or hopefully neatly organized somewhere) are about to come in real handy.

Learn:
No matter how you choose to do your taxes (IRS, tax software or accountant), you will still need to gather the same important paperwork. This is what you will need:

*Including dividends from stocks and even interest earned on your savings account.
**For example, student loans, coursework, interest you paid on a mortgage, etc.

Social Security Numbers
For you, your spouse (if you're filing jointly) and any dependents. LearnVest recommends you have your SSN memorized by heart—so hopefully you can already check this off!

W-2 Forms
This form records the wages you earned for the year from your employer. (Make sure this number is in your LV budget!) Your employer needs to give you this form, either at the office or by mail. If you haven’t received it by the end of January, make sure to contact Human Resources!

Receipts
If you plan on deducting any expenses or charitable contributions, unreimbursed job related expenses, accounting fees, etc from your taxable income, you will need to have those receipts on hand. Don’t forget to check your credit card statements and e-mail for all donations given.

Bank Account Numbers
If you are filing electronically (which we strongly recommend!) and are expecting a refund, you can opt for direct deposit into your checking account by providing your bank's routing number and your bank account number. These can be found in a bank statement or on a personal check.

1099 Forms
1099s are forms you receive for ‘income earned’ through interest, dividends, capital gains, scholarships and other forms of income. For example, if you are self-employed, you will receive 1099s from the companies you worked for as an independent contractor.

1098 Forms
Forms for expenses that you can claim tax deductions or credits for (i.e. student loans, coursework, interest you paid on a mortgage, etc.)

Gather your paperwork!

Check your mail/Inbox/online bank accounts for all of the above forms. If you are missing any forms that you know are relevant to you, time to get on the phone and track them down!

Comb through your credit card statements to find those charitable receipts.
Action Time: 7 minutes

We like these suggestions from TurboTax:
5 Tips To Help You Maximize Your Tax Dollars
Choose The Tax Form that Best Fits Your Needs

Want to receive Financial Resolution Bootcamp in your inbox?

Go to bootcamp.learnvest.com and sign up to recieve 20 days of daily tips and action items to get your finances in order for spring!

Help Us Improve...

The Bootcamp is a brand new product we're excited to roll out, but, we really need your feedback to make it the best it can be! Email Feedback@learnvest.com to tell us what you think!

Tax Day 1: Making Your Tax Plan

Mon, 05 Apr 2010 16:23:07 -0400

Taxes. We can hear your chorus of groans from here! We sympathize—doing taxes certainly isn’t fun, but it IS necessary. Even Albert Einstein once said, “The hardest thing in the world to understand is the income tax.” Harder than quantum physics? Really?

Well, we dare say, we disagree with Einstein. With a little preparation, taxes are not that hard. And luckily for you, you’ve got the LearnVest Tax Crash Course to help make things easier. So no whining. Paying taxes is not optional. Let’s get organized and get them done!

First and foremost, taxes are not something to fear! They are something to tackle and tackle CORRECTLY. Your number one priority should be to make sure you have the time and resources to get your taxes done error-free.

The IRS website has great resources, and there are plenty of FREE tax software options to use if you have had a relatively simple financial life this year. What do we mean by “simple”? If you receive the bulk of your income from one source and you are not changing your filing status this year (single, married filing jointly, married filing separately, Head of Household, etc.), you qualify as having a "simple" financial life.

The more complex your financial situation, the longer your taxes may take you to complete. If any of the below situations apply to you, a paid version of a tax software, such as TurboTax (about $30), or hiring an Accountant, may save you significant time! While doing your taxes is not quantum physics (sorry, Einstein), it can be time consuming. The IRS estimates that it takes each American an average of 26 hours to file their taxes!

If…
•You’re newly married
•You bought a home or moved to a new state
•You just had a baby
•You’re self-employed
•You received an inheritance
•You sold securities (stocks, bonds, mutual funds)
•You incurred job related expenses for which you were not reimbursed
•You incurred educational expenses (tuition, school loan interest)

Consider a paid version of a tax software or an Accountant.

If you decide to hire a tax professional. This still takes a little time as you will want to find someone you TRUST—so do your research and find someone qualified. Most people report paying around $200 or more to have someone do their dirty (tax) work. We’ll walk you through the process in the LearnVest checklist “I Need to Find an Accountant.”

So, luckily there is time before tax day—but don’t put off taxes too long! A good LearnVester does NOT pull an all-nighter on April 14th before the April 15th filing!

Get out your calendar! Mark March 15th as the latest day for you to get cracking. Mark April 15th on your calendar as TAX DAY.
Action Time: 4 minutes

Set aside time on your calendar to prepare your taxes. Even if you use an accountant, you’ll need some time to prepare all of your financial info for him or her (which we will discuss tomorrow).
Action Time: 1 minute

Start evaluating what the best way for you to do your taxes this year is: on your own, with the help of a tax software, or to hire a tax professional.
Action Time: 3 minutes

If you decide to do your taxes completely on your own, block out lots of time. You don’t want to get taxes wrong! E-filing with the IRS will save you time (Choosing and sorting through tons of forms is so 2009!), but you want to make sure you have all the time you need to get your taxes right!

Want to receive Financial Resolution Bootcamp in your inbox?

Go to bootcamp.learnvest.com and sign up to recieve 20 days of daily tips and action items to get your finances in order for spring!

Help Us Improve...

The Bootcamp is a brand new product we're excited to roll out, but, we really need your feedback to make it the best it can be! Email Feedback@learnvest.com to tell us what you think!

Congratulations, Bootcampers!

Wed, 17 Mar 2010 15:10:59 -0400

It’s not just any ‘ole Tuesday—it’s your first Tuesday after Bootcamp, which means you should be starting this week with a new sense of financial control and understanding!

Let’s think about all that you learned…

Week 1 How to organize your online financial life (online bill payment with calendar reminders) and the standards your checking and savings accounts should always meet (no fees, no minimum balance, etc.).

Week 2 With the LV Budget Calculator, you figured out how much your life costs (i.e. all that you spend), and how to cut those costs.

Week 3 You mastered why a good credit score is so important to your financial future, how to check your Credit Score, and why late credit card payments can cost you hundreds of thousands of dollars in future interest.

Week 4 Why retirement is relevant to you NOW, how you open and invest in an IRA, and what the difference is between asset classes, index funds, and mutual funds.

If you followed all of our orders, you have:
•Calendar Reminders of when your bills are due.
•A Savings Account with the highest possible APY and no minimum balance requirement.
•A budget that accurately reflects your expenses.
•An exact understanding of your credit history and your credit score.
•A retirement account (401k, IRA or both) with an asset allocation that is right for you! This account will make sure your financial future is as bright or brighter than your financial today!

And all that in under a month! Congratulations!

If you haven’t completed all of your orders yet—take a deep breath. Every day is a new beginning. You can make up for lost time starting today. And remember, whether you are 18 or 50 years old these orders apply to you if you want a secure financial future! If you have questions about any of the above, please e-mail us directly!

And because, as a LearnVester, we always want you to be one step ahead of the game with your personal finances, we are providing you with a Tax Crash Course for the next three days! That’s right... Bootcamp is not over yet! Over the next three days you will receive a Tax Crash Course Bootcamp that will help you:
•Compile a tax plan
•Gather all the paperwork you need
•Demystify complicated tax concepts

Lastly, we have a little extra bonus...
Based on so many people tacking action, we decided to bring the first 200 people who sign up, a one-on-one call with a trusted financial planner. Email us if you're interested and we’ll be in touch with more details! In the email, include the question or topic you want to talk about so we are prepared for our chat. We really care that you get organized today, and think this opportunity will help.

Verify that you have completed all of the orders in the above summary. If you fell behind, mark your calendar now for when you will accomplish whatever is outstanding.
Action Time: 5 minutes

Take our survey! We have a new product idea that we really want your opinion on, so please let us know what you think. Plus, we'd like your thoughts about this Bootcamp so we can make it even more helpful for the re-launch.
Action Time: 3 minutes

Get psyched for the Tax Crash Course—delivered to your inbox this Tuesday, Wednesday, and Thursday.
Action Time: 5 minutes

Congratulations on sticking with Bootcamp, and thanks for your feedback! Hang in there for the Tax Crash Course!

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1/04	Get Organized, Missy (And Get Online!)
1/05	Remind Yourself To Remember
1/06	Checking vs. Savings: Really Know The Difference
1/07	Conquer Your Savings
1/08	Automate Your Savings
1/11	What Are Your Expenses, Really?
1/12	Make A Budget—A True, Detailed Budget
1/13	Cut Your Costs
1/14	Debt: Understanding Good v. Bad Debt
1/15	Your Name, In Plastic
1/18	How A LearnVester Spends…
1/19	Credit Card Punctuality
1/20	Get An A+ On The Credit Quiz
1/21	Get Your Credit Score
1/21	Report For (Credit) Duty
1/25	What’s An IRA/401(k) And Why Should You Care NOW
1/26	Tackle Retirement Accounts In Five Steps
1/27	Be Regular Through Retirement
1/28	Investing In Your 401k or IRA: What’s Your Risk Profile?
1/29	Investing In Your IRA: Nuts & Bolts
2/01	Congratulations, Bootcampers!
2/02	Tax Crash Course Day 1
2/03	Tax Crash Course Day 2
2/04	Tax Crash Course Day 3

Want to receive Financial Resolution Bootcamp in your inbox?

Go to bootcamp.learnvest.com and sign up to recieve 20 days of daily tips and action items to get your finances in order for spring!

Help Us Improve...

The Bootcamp is a brand new product we're excited to roll out, but, we really need your feedback to make it the best it can be! Email Feedback@learnvest.com to tell us what you think!

Day 20: Investing In Your IRA… Nuts and Bolts

Mon, 15 Mar 2010 22:29:16 -0400

Before we dive in to today’s content congratulations are in order… you made it through Financial Resolution Bootcamp! Feel Good? You earned it! But it wouldn’t be fair to leave you hanging—we’ve had a ton of questions about taxes (we applaud you for thinking ahead, by the way). So when you tell us what you want we deliver! Starting on Monday, you will receive a 3-day tax crash course to help you get organized for tax season!

Okay… now back to our regularly scheduled programming.

Learn:
Yesterday we talked about some basic concepts of investing for retirement: risk tolerance and asset allocation. Today, we want you to start investing!
Luckily, your brokerage firm of choice likely has some really cool tools to help you determine your own asset allocation for retirement and which funds are right for you. All of the accounts we recommend have tried & tested educational tools.

When you log onto your account you will have the opportunity to purchase many different types of securities. We know that it can be incredibly daunting, but fear not, LV is going to get you to focus only on the most important decisions. There are TWO basic ways we recommend investing.

Option 1:
If you don’t want to worry about buying several different investments your brokerage firm will have something called “lifecycle funds.” A lifecycle fund is a single product that allocates your money across a wide range of investments—both stocks and bonds, with securities from different countries, industries and market capitalization. The allocation between stocks and bonds is determined by how far away you are from retirement. From what you learned yesterday, the younger you are the more stocks you should be invested in. With lifecycle funds, as you age, the fund automatically adjusts to own more of the less risky investments. So, basically you can just set it and forget it—these lifecycle funds do the allocation for you!

To find a lifecycle fund that might be suitable for you go to the security search field and type in "lifecycle." Find the fund that has the closest year to your projected retirement—in its name and that is the right one for you! For example, FUND 2050 is the right choice for someone who is currently 25 and plans to retire at 65. There will likely be several different companies to choose from—we recommend going with a name you know or find the one that charges the lowest expenses.

The problem with lifecycle funds is that they can be a little more expensive because you are paying a manager to make all the investment decisions for you. So what’s the alternative?

Option 2:
You can pick your own individual investments. Don’t be scared—it’s not as hard as it may sound. We recommend that you buy only index funds. To refresh your memory from yesterday an index fund is….

A security that group together a certain asset class (most commonly stocks or bonds) in an attempt to diversify your risk within that asset class. For example, the S&P 500 groups together 500 of the largest U.S. based companies. Its return is thought to be representative of the stock market as a whole. As such, when you buy the S&P 500 you buy a little piece of all of the 500 companies—and voila!—you have a diversified stock portfolio. Since a manager isn’t making individual security selections index funds are the cheapest thing you can buy.

So, you might ask how do I choose? Well, first, you need to determine based on your age what percentage of your money should go to stocks vs. bonds. If you don’t remember what percentage is right for you read our "Rule of Thumb" equation.

Now that you know what percentage of your money you should be investing in stocks we recommend that you find a U.S. stock index fund. The most common type of index fund is for the S&P 500. You’ve probably heard the term before, that’s because it is a great representation across industries of publicly traded U.S. companies. Type "S&P500 Index" into that search box we mentioned before and you will have no shortage of choices. This is a good linchpin for your portfolio. We also suggest that you invest a portion of your stock allocation outside the U.S. Experts typically say somewhere between 10% and 35% of your stock allocation is a good guidepost.

If you opt for either the lifecycle or index strategies for your retirement, good for you—you will be properly invested for retirement! But we want to be clear: These are great “minimum-effort” strategies. Realize that there are many different types of funds in which to invest! Each fund has a different investment goal, and if/when your goals change, you want to make sure your strategy does, too.

We can’t tell you exactly what securities to buy, but we assure you if you chose one of the brokerage firms we recommended they will have great tools online and awesome support to help you.

So...go get started!

Play around with the tools on your online brokerage account to understand what is the best fund for you and how much you need to start (and to continue!) saving for retirement.

Among the companies we recommend, each has tools to help you determine...

1. How much you will need for retirement
2. Your asset allocation (doesn’t hurt to confirm what the "Rule of Thumb" equation suggested)

You may need to log on to access these tools and don’t hesitate to call customer service if you can’t find them.

For example, ING Direct’s Retire My Way (which also meets our IRA fund criteria) helps you plan how much you will need for retirement and whether you are on track to have that much based on your current contributions.
Action Time: 15 minutes

Either pick the lifecycle fund that is right for you or research index funds that meet your needs.
Action Time: 15 minutes

Choose a fund and buy in. Alternatively, you can earmark it if you need to save first. (You’ve gotten this far – don’t stop now!) You will receive a “fund prospectus” every time you buy a fund. These are awfully intimidating but are mandated by law to confirm that you understand the fees and risks associated with the account. Again, if you have questions call customer service. That's what they are there for!
Action Time: 5 minutes

Make a note on your calendar to rebalance/check in with your portfolio a year from now and/or to make sure a target retirement fund is in fact what you need.
Action Time: 1 minutes

Want to receive Financial Resolution Bootcamp in your inbox?

Go to bootcamp.learnvest.com and sign up to recieve 20 days of daily tips and action items to get your finances in order for spring!

Help Us Improve...

The Bootcamp is a brand new product we're excited to roll out, but, we really need your feedback to make it the best it can be! Email Feedback@learnvest.com to tell us what you think!