Jill Russo Foster

Tips for Successful Personal Finances

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Careful Giving

With the end of the year coming up, people are being asked to make donations to many organizations While others are planning ahead for the end of the tax year Either way, you need to make sure the charity that you are donating to is legitimate.

With many people out there to scam people, choosing a charitable organization can be challenging Here’s what you need to look for:

  • Find out whether they have a 501(c) tax status if you are planning to deduct this on your IRS tax return.
  • Find out how much of each dollar is used for the cause, versus how much is used for administration expenses The higher the dollar amount used for the cause the better.

To find out this information go to www.Give.org to do your research before making your donation Once you have decided to make your donation, then you need to make sure you have the proper documentation for tax purposes.

For monetary donations, a cancelled check would be your receipt For non-cash items such as food, clothing, household items, furniture etc, you will need to make an itemized list of the items and the value Make sure to get a receipt from the organization that you are making the donation to Attach this to your itemized list and keep with your tax records.

Getting the Deals When You Need Them

Do you see those online daily deals for discounted merchandise and wish you knew about them before they sold out? Did you buy something to find out later that you could have bought it for less on a website? It seems as if many retailers are offering them I see them from office supply stores, utility companies, credit card companies (so you use that credit card more) and I am sure that I miss most of them They seem to be like the grocery stores that offer the really great deal on a few products to lure you in They know that you will buy more once they get you to the store.

If you are looking for something specific and want to see if you can purchase the item at a discount, then you may want to look into these daily deals Remember, it’s not a bargain if you buy something because the price is so good that you can’t turn it down Retailers (and websites) are counting on you to make that purchase since it’s such a great deal But, it’s only a deal if you were looking for that item before you saw it Don’t impulse shop.

Since there are so many, how are you to keep track? There are a couple of websites that will help you with this www.Woot.com, www.DealCatcher.com and www.DODTracker.com will consolidate deals from numerous retailers in one location That way, you don’t have to track many different websites to find the item you are looking for, or worse yet, finding the deal when it’s already sold out Shop wisely and within your means.

Holiday Returns – Restocking Fees

We are in our second week of December Most of us are already thinking about the holidays and gift giving Many stores are luring you to spend with statements like “we’ll refund your money if you are not completely satisfied” and “tryit and you can return it for a full refund” I bet you have heard these offers before It might sound good, but you need to be aware of restocking fees (No, these don’t have anything to do with your Christmas stocking.)

Retailers charge restocking fees to cover the cost of selling an opened package at reduced prices For example, if you bought a computer and opened the box and then returned it, the retailer cannot sell that item as brand new Therefore, you might be charged a restocking fee That seems fairly reasonable to me Many retailers are adopting restocking fees You could see it on mattresses, automobiles and other items that don’t have package restrictions.

Restocking fees can be expensive, as much as 25%.First, ask the store what the policy is and ask to have it in writing before you make the purchase Once you fully understand the policy, then determine if you want to make your purchase at that retailer If the purchase is for a gift, you might want to consider a gift card instead, so that the recipient doesn’t have to deal with the restocking fee.

Holiday Shopping Tips

The holiday season is in full swing Were you one of those out there at midnight shopping on Black Friday? It’s easy to spend money during the holidays We shop to make the holidays special for those we love and also to look good and feel good during the darkest month of the year.

If you’re worried about spending too much, think about these things before you shop.

  • Do you really need the item? If not, don’t buy it.
  • Can you (or the person you are giving this to) live without it?
  • Do you have the cash to pay for the item? You don’t want to charge items that you can’t afford to pay off when the bill arrives.
  • Is this a good price? Do your research ahead of time to know that you can buy it for less.

This year with the economy we are in, I would suggest that you do some planning before you tackle the holiday season First look at your list are there people that you can eliminate buying a gift for? Maybe you could spend time with that person creating new memories instead of buying an item off the shelf For the people on your list that you will be buying for, think long and hard to determine what amount of money you have to spend This should be an amount within your budget (not on credit cards that must be paid off later) Your holiday budget should include all the items you have to buy, such as hostess and/or food gifts for parties, tips for the service people in your life, additional gas and holiday clothing for yourself.

If you’re going to buy something (especially during the holiday season), do it wisely and within your budget Let the joy of the holidays extend in January by avoiding the stress of January credit card bills Remember, a bargain isn’t a bargain if you’re buying something you don’t need.

Fact-Checking Charities

With the holiday season coming up, charities are increasing their requests for donations If you want to give (and I’m sure you do), make sure your money goes to those in need.

Unfortunately, it’s fairly easy to set up a charity, and fundraisers can legally keep most of the money donated to the cause Before you donate, find out whether the charity is legitimate You should also find out how your money will be spent.

You can start your research at www.Give.org (associated with the Better Business Bureau) This organization researches charitable organizations to find out how they use the funds they receive.

Here are some tips to help in your research:

  • Find out if the charitable organization has a 501(c) status (IRS code for non-profit organizations) Non-profits have stricter requirements, and your donation will be deductible on your tax return.
  • Find about how much of each dollar is being used for the cause versus administration costs The more administrative costs, the less of each dollar is being used for those in need Look for the low administrative costs.
  • For cash donations, request a receipt to use as documentation on your tax returns All donations over $500 will require additional paperwork, so speak with your tax preparer ahead of time.
  • When donating non-cash items such as food, clothing, furniture, etc, You will need an itemized list of the items you donated and the total value Most charities will ask you to value your own items Make sure you get a receipt for your donations with the charity’s information on it.

Do your research and chose the organization(s) wisely This is a great way to help out others who are less fortunate than you during this holiday season.

New Bank Fees – Watch Out

Has this economy made you look more closely at fees and unessential services? Earlier this year, the Credit Card Act was enacted to help consumers That was good for you, but your creditors lost sources of income They want to take that money back The next wave of consumer fees is about to begin (or may have even started).

Banks are upping their fees Here are some examples:

Do you have totally free checking? That’s probably going to change You will need to keep more money on deposit to qualify for free checking.

Do you prefer to make your deposits and payments in person? There could be a fee to use a bank teller.

Do you receive paper statements and cancelled checks by mail? The bank may start charging you for that.

Do you have overdraft protection? Previously, you only paid a fee when you used the service That’s changing My bank now charges $1.50 per month for the privilege of overdraft protection Some banks are even charging you to link your savings and checking together for overdraft protection, along with the additional fee for actually using the service.

Want to open an overdraft protection account for the first time? That could cost you a fee as well.

Banks are implementing these changes to increase their revenue, so watch your statement closely (you should be doing this anyway) Read the inserts in your statements Call to question new fees, and if you’ve already been charged, ask for reimbursement.

If your bank account is costing you too much money, find out what you can do to avoid the new fees If all else fails, take your bank accounts elsewhere There are still banks with good lending and investment practices These banks don’t need to overcharge their customers to make money.

Delaying Your Foreclosure

Recently, several banks have stopped foreclosure proceedings in states that require judicial foreclosures A judicial foreclosure means that the final proceedings require court action Ideally, a judicial foreclosure offers additional protection to the homeowner, because the bank has to prove that payments have not been made Connecticut is one of those states that has a judicial foreclosure process.

Now, banks are saying that they have potential paperwork problems and are taking more time to review their internal processes and documentation before presenting them to the court system.

Any foreclosure is, traditionally, a long process with a tremendous amount of paperwork involved With the current mortgage crisis coupled with the economic downturn, banks have been overwhelmed with the foreclosures When you add the multiple bank mergers of the past few years (with files being transferred from one corporation to another), you can see the potential for incorrect and/or missing paperwork According to the latest news, it does seem that a few of the major banks need internal paperwork review before proceeding.

What does this mean to you? If you are somewhere in the foreclosure process, this is going to delay the process for you I don’t believe that banks are going to stop the foreclosure process and give you back your home Wouldn’t that be nice? Only time will tell if the bank has all the proper paperwork in order to proceed.

Start Preparing Your Taxes in October

I know that you’re seeing holiday shopping displays at the stores If you are like me, you’re thinking, “Is it time to think about that already? Halloween hasn’t come yet!” Yes, it’s that time – not to prepare for Christmas, but to prepare for year-end.

For me, October is a time when I set up a meeting with my tax preparer and start year-end planning With three quarters of the year gone by, I have a good idea of where the year stands financially.

You can start now by taking the time to meet with your tax preparer Gather up your information on income and donations, profit and loss statements, and any new financial circumstances or events Did you have more out-of-pocket medical expenses this year? Mortgage changes? Defaulted loans?

After your tax preparer has reviewed your information, you can ask him what you can do before December 31 to improve your tax returns Here are some questions you could ask:

  • Should you pay your January bills in December
  • Do you need to make more donations?
  • Should you hold off on the major purchase?
  • Should you contribute more to my retirement accounts?
  • Should you do renovations / improvements to your home to take advantage of the tax credits that might not be there next year?

Don’t wait until mid-December when you are crazed with the holidays, or worse yet, January, when it’s too late to take action for 2010.