Jill Russo Foster

Tips for Successful Personal Finances

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Have You Checked This Lately?

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Every year around my birthday is the time I check my social security.

No, I am not ready to apply.  But it’s something I do annually to make sure all is correct.  Every year social security posts your income to your account (the same income you file on your federal tax return).  I like to double check to make sure mine is correct.  It’s much easier for me to check now, then to figure it out when I apply for social security down the road.  My records are easily accessible and easy to review to double check.

When was the last time you looked at your social security account?

Money, Life and Savings

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A reader asked me about how to save to purchase a home, when your money doesn’t allow much for savings.

That’s a great question. But not an easy one to answer.

We all know that saving should be a priority.  But we have monthly obligations.  So here are so general steps to achieve what you want (in this case a home).

  1. Track your spending – many people overlook this step.  Trust me this is the most important step in achieving your goal.  Write down every penny that you spend for at least a month.  Track everything from the rent payment to purchase of the newspaper.
  2. Weekly (or more often) take your tracked numbers and put it in to a budget.
  3. Analyze where your money is going and make a plan to spend less.  Even saving $5 a week will add up.
  4. Automate your savings goals and pay yourself first.  You will learn to live off less if you don’t see it available in your checking account. You may want to unlink your checking and savings (or have them with separate banks).
  5. Lastly, look into home ownership programs in your community.
  6. Check out to see if you qualify for an Individual Development Account to save for a down payment.

While it’s hard to save money each and every month.  It a necessary step in life to achieving your goals.

 

Make 2018 Your Best Year Possible!

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Yes, I know it’s a busy time of year to add anything to your do to list.  As the year begins, it’s important to make time to complete this check list of items to make 2018 the best year possible.

Investment Accounts
Think about maxing out your 2018 contributions, especially if you have an employer match. You don’t want to miss out on the free matched funds. If you can’t max out, then add as much as you can. Now is the time to look at your investments, it may be time to re-balance and/or make changes to your accounts.

Health Insurance
Understand what your health insurance covers and what it doesn’t.  If you have a deductible to meet,if possible schedule your appointments so that you can afford the bills.  Remember you may be able to use your FSA (Flexible Spending Accounts) or HSA (Health Savings Account) to plan for some or all of these expenses. Your plan has a list of eligible items you can use the money towards.

Charitable Giving / Donations
If you itemize your taxes, make sure to discuss your charitable giving with your tax preparer as the new tax rules are in effect.

Starting the new year off right will help you throughout the year.

Paying For College – FAFSA

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It ‘s that time of year.  Your teens are making their college choices for the fall and all the excitement that goes with it. What school should they go to?  Will they stay near or go far? What will I need to do next?

First let ‘s start with the paying for college.  If you have the money saved for the cost of college for all four years (or more), then you can stop reading.  If not, you need to start or continue to figure out the finances.  FAFSA – Free Application for Federal Student Aid – is the first step.  Apply now, even if you don’t think you qualify – you may be surprised.

Here is a great article by Consumer Reports for financial aid that will tell you what you need to know.

Thinking about retirement

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As we get older one of the things that is always on my mind is retirement.  What does it look like for me?  Where do I want to live – stay where I am or move?  Stay in my current house or downsize (maybe condo)? The list of questions goes on and on for me.

Wallet Hub has come out with a list of 2018 Best and Worst States to Retire To.  Where is your state?  This might be something to take into consideration in your planning.

Is It Time to Clear Some Clutter?

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In my next life, I think I want to be an organizer. I am not a hoarder, but living in the same home for years, things and stuff just seem to accumulate. Over the past few years, I have scanned many documents, going from 3 four draw file cabinets down to 1. Gone are the paper medical records, tax returns and other paper work. Yes, I have burned up a shredder or two.

So this summer, I took a break from this newsletter. I accomplished so much. We tackled the family movies, photos and slides. We looked through thousands and saved some, but mostly gave them to family members and had the others scanned and archived. This was a big accomplishment.

Earlier in the year, we started going through the collectibles, things that have meaning or are possibly valuable, so I didn’t want to just toss them. I wanted to find a place for them and this was a lengthy process. For my dad’s sports memorabilia, we gave it to the local high school’s hall of fame to be displayed. That felt good. They are out of our home and somewhere I can go see with a visit. His leather football helmet was one of the display items at the induction ceremony.

There is still more to go but we are seeing progress. Are their items that you want to get rid of but don’t know what to do with them. Check out the Resources Page on my website, as I keep updating it with the places that we have used.

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It’s Time To Update Your Health Insurance

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It’s that time of year again for open enrollment for medical insurance. For Medicare you have until December 7 to make any changes to your secondary insurance and/or prescription coverage until December 15.

To enroll and/or make changes to your Affordable Care Act health insurance, you have from November 1 to December 22 in Connecticut. Check your individual state for your specific deadlines.

If you are coverage is through your employer, fall is typically the time to make changes as well.  Please check with your individual state or company for possible changes to the deadline date.

If you want some general questions to think about to compare your options, here are some that you can consider when making your health insurance selection that is best for you:

1.    What type of insurance is this?
2.    What is the monthly premium cost and how much am I responsible for paying?
3.     Are there subsidies available for us?
4.     Do I have out of network coverage?
5.     How much are the deductibles for both in and out of network care?
6.     How much do I have to pay to see a healthcare provider?
7.     Do I have medical coverage out of state and out of the country?
8.     Will I be able to use my current doctors?
9.     What additional benefits are included (prescriptions, dental, vision, etc.)?
10.   Are preventative visits (physicals, routine tests etc.) covered without a deductible?
11.   What is the procedure for going to a specialist and/or the emergency room?
12.   How are disputed claims handled?

Ask these and more questions to make sure you have all the information to make the most informed choice for you and your family. Mark your calendar today to do this during your open enrollment each and every year as medical plans changes and so do your needs. If you miss the open enrollment period, you can only make changes if you have a life changing event.