Jill Russo Foster

Tips for Successful Personal Finances

You are here: Home / Archives for Jill Russo Foster

Spring Cleaning Your Finances & More

As I sit here and write this blog post about spring, I am glad it actually begins tonight.  The days are getting longer with the change to daylight saving time.

For us, it has been a mild winter with only one snow storm of a couple of inches back in January.  We have even had some record warmth days with one more coming tomorrow.  If fact, I know it’s spring is here because the daffodils and crocus are blooming.

In this difficult time, I am trying my best to stay present and not react out of fear.  For me, the best way is to accomplish something, such as learning a new skills or tackling a project.

Here are some projects that you might want to tackle:

  1. When was the last time you shredded your out dated paperwork.  Typically, after seven years papers can be tossed with a few exceptions.  Check with your tax preparer for your situation.  This is a good time to do this as many communities have a free paper shredding days coming up in April for you to take advantage of.
  2. Did you learn something from filing your taxes?  Maybe you need to make adjustments to your paycheck withholding or to save more to be able to pay the taxes you owe.  Take a look at your finances and make the changes now with your HR department.
  3. Where do your finances stand in relationship to your beginning of the year goals?  Maybe you set a goal to save a certain amount this year.  Are you one quarter of the way there?  We are about three months into the year, therefore you should be at 25% of your goal.  Are you on the path to achieving this goals? Do you need to make adjustments to your finances to achieve the goal?  Now is the time to take a look and make the changes needed, so you are not disappointed at year end.
  4. When was the last time you changed your passwords?  Update your accounts with strong passwords.
  5. How about organizing your paperwork?  Paper comes in everyday and seem to pile up.  Use this time if your home to create a system that works for you.

Stay healthy and use your time wisely this spring.

Getting Your Taxes Done For Free

Yes, it’s that time of year again – tax time!

You may be able to get your taxes prepared for free AND from a reputable source.

There’s help if you’re a senior or have a low to moderate income.

Go to www.IRS.gov to find information on the VITA program (Volunteer Income Tax Assistance), the TCE Program and AARP Tax-Aide.

There you can learn

  • If you qualify for the program
  • What to do bring to the meeting
  • Locations near you

You don’t have to be afraid to use these services. The tax preparers at these programs are certified volunteers who work under a qualified supervisor.  The location near me is at the local community college and is supervised by a CPA and Chair of the Accounting Department.

Each location will have different hours, so check before you make the trip. Some will take appointments and some are walk-in only.

If you qualify, you may save yourself a few hundred dollars. You’ll get the work done at no cost to yourself and a trained preparer can catch details that might net you a bigger return.

Are You Going To Be A Victim of Fraud?

It’s said that everyone will be a victim of fraud at least once it their lifetime.  Yikes!

What steps are you taking to protect yourself?  While you can’t protect yourself 100%, you can take steps to lessen your chances or to catch it as fast as possible.  Don’t be an easy target.

Here are a few tips that we do in our household:

First, your mailbox.  Is your mail sitting in there all day or longer?  Do you put your outgoing mail in there with the flag up for?  All of these are easy targets to get your personal information.  In our house, we take all outgoing mail to the Post Office.  We pick up our incoming mail daily.  Less time for someone to take our bank or credit card statement with our information.

Next is your car.  Yes, you know your should lock it, but do you?  If you do, what are you leaving inside your car?  I just watched a video of people going to the gym and not carrying anything.  To me, that means they left their purse / wallet in their car.  Depending on the location, this can be an easy target for theft.  Are you shopping and putting your packages in the car and going to another store? Leaving your car unlocked or the window partial open can give someone easy access to your belongings.

What about your home?  Do you lock your home?  What do you toss out / recycle?  Think about your documents – can someone steal your identity by taking your trash.  We shred everything and you should too.  We also installed cameras to monitor our home.  What about your computer / cell phones?  What activities are you doing on them?  Are you always connected to a secure network?  Never do tasks such as viewing or paying bills when you are on pubic wifi.  Set up two factor authentication for your accounts.  Do each of your online accounts have there own user ID and password?  When was the last time you changed your passwords?  Monitor your bank and credit card accounts at least weekly to look for suspicious activity.  Monitor your credit report / score to anything suspicious.  Remember, the sooner you catch it, the less they can take.

To monitor your credit report, sign up for my newsletter at www.JillRussoFoster.com.  In addition to the newsletter, subscribers will be given a reminder email to view their credit report three times per year for free and it won’t hurt your credit score.

Upcoming Workshops

Want to take your finances to the next level?

Come to hear me and get your questions answered at Norwalk Community College (Norwalk CT):

Start Your Finances Off Right – Thursday      4/2/2020      6 to 8pm

Budgeting To Pay Down Debt – Monday      3/23 and 3/30/2020      (2 sessions)       6 to 8pm

What about your teens, do you want them to learn about finances?

Have them come hear me at Norwalk Community College:

Teens and Money:  Teen Personal Finance – Saturday      3/28/2020    10 am to 12 noon

For more information or to register, please call (203) 857-7080 or Email:  extendedstudies@norwalk.edu

I hope to see you there

Required Distributions Are Changing – Make Your Plan

As we get older and start to think about reducing our working hours or retiring all together, it’s time to make a plan for your finances before you take the leap.  If you have been contributing to an Individual Retirement Account (IRA), 401K or other pre-tax account, you’ll need to start taking money out of your accounts. 

You might be thinking, I don’t want to take the money out until I need it.  Well, the government sees it differently.  They want there tax money since you have deferred the taxes.  Remember, this becomes taxable money and may put you in a higher tax bracket. As always you’ll need to discuss this with your tax preparer, bank / investment professional and/or attorney for what is right for you and your situation.

The old rule, is in the year after you turn 70 1/2 you were required to take a minimum distribution from your account by April 1 of the following year for the first year (then Dec 31 for year 2 subsequent years).  This rules is still true for people who turned 70 1/2 years old by the end of 2019.  Keep in mind that you can take as much as you want, but you have to take a minimum distribution each and every year after.

The new rule is part of the SECURE  (Setting Every Community Up for Retirement Enhancement) Act, passed in 2019.  Now, if you are younger than 70 1/2 by Dec 31, 2019, you can now wait until you are 72 years old before having to take the minimum distribution from your tax deferred account(s).  So you can let your money grow an additional two years.

Now, to avoid penalties with your required minimum distribution, you must take out a minimum each and every year.  To determine your amount, start with the value of your account on Dec 31 of the prior year and divide that by your life expectancy to come up with your amount.  If you take less than your are required, the penalties are ridiculously high.  They can be as much as 50%.  You have worked very hard for your money and you wouldn’t want to give it up to penalties.

Make a plan that’s right for you with your professionals, so that you get the money you need within the guidelines for the distribution.  Make sure to take at least what your are entitled.  You’ll have to pay the taxes on the distribution, but you don’t want to pay additional penalties to the government.  With this planning step, you can decide if you can afford to fully retire or if you need to keep working.

Is It Time To Switch Banks?

How long have you been with your bank?  Is it still convenient to your life?  Are you paying fees? The answer should be no to this question.  Are you earning the highest interest rate out there?

Look at your answers and take a look at your finances to make the right choices for you.  For us, last year we started to consolidate our accounts.  Rolling over our retirement accoun

t from past employers to one account.  Consolidating our accounts at two banks – one that offers totally free checking (no monthly fees, ATM fees and overdraft protection) th

at is a brick and mortar bank that is local and has convenient locations and hours that work with our lives.  The other is a virtual bank that also has no

fees and pays a high interest rate of savings accounts. It simplifies the monthly statements and it’s two online accounts.  That works for us.

Does yours work for you?  Here’s a great article from AARP Good Reasons To Consider Changing Where You Bank that will get your thinking about the different types of banks (major bank, community bank, credit union and online bank).  Which is best for you?

How To Spend Valentine’s Day On A Budget

Did you miss the Experian Credit Chat yesterday?  You don’t have to miss out.

Experian does a Credit Chat every Wednesday at 3pm EST.   Yesterday’s timely topic was Valentine’s Day on a Budget – pretty appropriate for tomorrow.

I was one of several panelist who participated in the Twitter chat.  There were some great suggestions by the panelist that may be something you are interested in for you to save money.  Here’s the link if you were unable to join.

Tax Time Is Here

Yes, it’s that time of year again – tax time.  As of January 27, you be able to file.

You can get your taxes prepared. 

You don’t want to wait until the last minute then realize you can’t find the all important paperwork to back up your tax return.

You may be able to get your taxes prepared for free AND from a reputable source.

There’s help if you’re a senior or have a low to moderate income.

Go to www.IRS.gov to find information on the VITA program (Volunteer Income Tax Assistance), the TCE Program and AARP Tax-Aide.

There you can learn

  • If you qualify for the program
  • What to do bring to the meeting
  • Locations near you

You don’t have to be afraid to use these services. The tax preparers at these programs are certified volunteers who work under a qualified supervisor.  The location near me is at the local community college and is supervised by a CPA and Chair of the Accounting Department.

Each location will have different hours, so check before you make the trip. Some will take appointments and some are walk-in only.

If you qualify, you may save yourself a few hundred dollars. You’ll get the work done at no cost to yourself and a trained preparer can catch details that might net you a bigger return.

Ways To Lower Your Heating Bill In The Winter

It’s winter here in the northeast, but you wouldn’t know it by mother nature.  The greater New York City area ended up with the tenth warmest January on record.  Personally, we had one snow storm and few days close to 60.  But there is still February, March and maybe April to get some winter cold, snowy weather. 

Here are some tips to save on your heating bill:

  • Can you lower your thermostat?  You can do this all the time or certain times of the day.  For certain times, think about your schedule – Can you lower it when you are out and no one is home? At night when you are in bed?
  • Do you have a fireplace(s)?  If the answer is yes, is your damper closed when your fireplace isn’t in use?  This can let cold air into your home (and warm air escape).  Remember to open the damper before you start a fire.
  • You know how nice it can feel with the sun shinning in on a bright sunny day.  It’s a favorite for our dog to lay down inside in the sun.  Well that’s really great in the day, but what about the night? Close your blind / drapes to keep the cold air out.  You can lose as much as 10% of your room’s heat during the night.
  • Check for drafts.  Yes, it’s winter but there are so many drafty spots on the inside of your home that you can fix from the inside.  Think windows and doors (sealing unused windows with plastic film),  electrical / cable outlets (outlet sealers), and check around your pipes (spray foam insulation).

These are some of the things that we do around our home to keep pour heating bill as low as possible.  There is more to do outside, before the weather gets cold.  Check out this past newsletter with those tips.