Today is the last official day of “Financial Literacy Month”
I know that most of you are very familiar with a savings account. Sure; they may not provide a large amount of interest for your deposit, but knowadays, there are relatively few, safe places that will! Just for the record, this is a reminder that saving in any economic climate will reward you later on. Remember; a little money saved regularly will accrue savings due to the “miracle” of compounded interest. here’s a great article from the FDIC’s website, www.fdic.gov:
People who put even a small amount of money into a savings account as often as they can and leave it untouched for years may be amazed at how big the account grows. The reason? A combination of saving as much as possible on a regular basis and the impact of interest payments (what the financial world calls “the miracle of compounding”).
Here’s how you can slowly build a large savings account and experience the miracle of compounding. Let’s say you put money into a savings account that pays you interest every month. After the first month, the interest payment will be calculated based on the money you put in. But the next time the bank pays you interest, it will calculate the amount based on your original deposit plus the interest you received the previous month. Later, that larger, combined amount will earn more interest, and after many years it becomes a much larger sum of money. The earnings are called compound interest. You can earn even more in compound interest if you make deposits regularly and stretch to put in as much as you can and leave it untouched. See the chart below, which is based on a savings account started with $50 and earning interest at a rate of 3.5 percent each month. If you add just $10 each month, the account can grow nicely to $714 after five years. If you instead put in a slightly higher amount—$15 each month—you’d have a balance of $1,042 after five years. But if you had increased your deposits to $50 a month, those extra dollars plus the compounding of interest would give you a balance of $3,333 after five years.
Joan Jackson, Publisher
Baby Boomer Resource Center
Author of e-booklet, 101 Online Financial Calculators Every Entrepreneur (and Everyone!) Needs
Happy Earth Day!
I trust that today reminds all of you that our Earth should be cherished as a gift from God, and that we should be good stewards of His gift! FeedThePig.org gave some good tips today about how we can “go green, and save ‘green’”. Read below…
Unplug appliances when you aren’t using them. Leaving your appliances and electronics plugged in when you aren’t using them is a power drain, and a drain on your wallet.
- Make your own household cleaners instead of buying harsh chemicals at the store.
- Be aware of how much water you are using. Shortening your showers by a few minutes and turning off the water while you brush your teeth conserves water and energy, and lowers your water bill each month.
- Buy Energy Star© products when you do need to replace an appliance. While the appliance might be slightly more expensive when you buy it, your energy bills will be lower while you use it.
As a librarian, here’s one I especially like!...
- Go to the library. Supporting your local library saves you money and is environmentally friendly. Libraries have books, magazines, computers and movies — many of which are free.
Receive too many catalogs in the mail, ripe with temptation for things you don’t need? Register at a free website, such as www.catalogchoice.org, to limit the number of catalogs you receive.
Joan Jackson, Publisher
Baby Boomer Resource Center
Author of e-booklet, 101 Online Financial Calculators Every Entrepreneur (and Everyone!) Needs
Today, I ran across this very informative article written by Jim Miller, a regular contributor to the NBC Today Show and author of “The Savvy Senior” book. The subject of Long-Term Health Insurance is one that shouldn’t be overlooked by us Boomers. Read on…
There’s no doubt that long-term care (LTC) insurance is expensive and risky, but depending on your assets and health history, it’s something you may want to consider.
Who Should Buy?
With the rising cost of nursing home care now averaging more than $77,000 a year for a private room, LTC insurance (see www.longtermcare.gov) that covers nursing home care, assisted living and in-home care can be a good option for many people. But is it right for you? Here are some key points to help you decide:
- Your finances: LTC insurance makes the most sense for those who can afford the monthly premiums, with assets of at least $150,000 – not including the car and house. People who can’t afford it, or who don’t have many assets to protect can fall back on Medicaid. Remember that Medicare and Medicare supplemental (Medigap) policies do not pay LTC expenses.
- Your health: In most cases it’s disease (like Alzheimer’s and stroke), not old age, that puts people in nursing homes. What’s your family history of these?
- Your risks: About 70% of all Americans over age 65 will need some type of LTC at some point in their lives and women are at a higher risk than men because they tend to live longer.
Cost Effective
If you’re leaning towards buying a LTC policy, be sure to do your homework first. The cost of premiums depends on the insurer, as well as the policy’s provisions. Here are some different areas that impact your costs and some tips to help you choose the right policy:
Age: You can reduce your premiums by buying at a younger age. For example, a LTC policy that costs a 55-year-old $1,200 a year in premiums, could cost a 65-year-old around $2,400. Typically, you can’t get a LTC policy after age 79.
- Daily benefit: You can get a policy that pays $100, $150, $200 per day or more – but the higher the benefit, the higher your premium. To figure out how much coverage you need, check out the nursing home prices in your preferred area. Then figure out how much of the bill you could shoulder yourself and choose a benefit that makes up the difference.
- Length of benefit: You can buy policies that will pay for one year three years, or as long as you need them – but the longer the benefit, the more you pay. With the average nursing home stay of about two and a half years, a three-year benefit period is probably adequate, unless Alzheimer’s runs in your family. Then you may want more.
- Waiting period: Most policies have waiting periods (30, 60, 90 days or more) that require you to pay out-of-pocket before the policy kicks in. The longer you wait the lower your premium, but extending the waiting period means you’ll have to pay the bill on your own for a longer time.
- Health: If you’re in good health, you can get a discount. If not, you may not be able to get long-term care insurance at all. Also, some policies offer couple’s discounts.
- Inflation protection: Many policies have 5% per year inflation protection built in to keep up with rising LTC costs but these policies cost about twice as much as ones without it. Policies that offer inflation protection linked to the consumer price index are about 20 to 40% cheaper.
Policy Shopping
Be sure to choose a flexible policy that covers all kinds of care (in-home, assisted living, nursing home, etc.). It’s also wise to go with a company that has sold LTC insurance for years. To compare policies, a good resource is Long-Term Care Quote (800-587-3279). Or work with a LTC insurance specialist who works with a variety of companies. See www.aaltci.org to find one in your area.
Joan Jackson, Publisher
Baby Boomer Resource Center
Author of e-booklet, 101 Online Financial Calculators Every Entrepreneur (and Everyone!) Needs
Need a low-impact, senior health and fitness exercise program that’s specially designed for the not-so-young?
The Man Who Grew Younger is the answer you have been looking for! (Don’t be misled by the title. The program is applicable to both men and women).
In this book, you will find the secrets to the easy road to health and fitness…even even if you are middle-aged or senior citizen! You’ll be able to achieve lifetime fitness the easy and proven way! In 66 chapters, jam-packed with life-changing information and easy senior citizen fitness exercise workout program, you can build your fitness and health step-by-step.
You can find this and other Boomer and older senior-related e-books at:
Baby Boomer Resource Center.com: Boomer e-Books
and, Baby Boomer e-Products
Joan Jackson, Publisher
Baby Boomer Resource Center
101 Online Financial Calculators Every Entrepreneur (and Everyone!) Needs
This afternoon, I was sent this VERY TIMELY email from the very informative site, FeedThePig.org ( an affiliate of AICPA.org):
“In the event that you’re not able to file your income tax return by April 15th, both the IRS and states allow you to extend your filing deadline by six months. Don’t be fooled however — an extension to file is not an extension to pay. Penalties, including fines and interest, may be assessed for a payment made after April 15th. To request an extension to file, submit Form 4868 to the IRS by April 15, 2009. Locate the following information before filling out Form 4868:
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- A copy of your 2007 tax return
- How much money you have already paid in taxes for 2008
- Your 2008 tax liability
- Your bank account and routing number (if you owe taxes)
If your return is completed but you are unable to pay the full amount of tax due, do not request an extension. File your return on time and pay as much as you can. The IRS will send you a bill or notice for the balance due. The IRS offers taxpayers who owe less than $25,000 to apply on line for an installment payment plan or you can file IRS Form 9465 with your return.”
Joan Jackson, Publisher
Baby Boomer Resource Center
Author of e-booklet, 101 Online Financial Calculators Every Entrepreneur (and Everyone!) Needs
Before coming into work this morning, I was watching CNN, and President Obama emphasized that homeowners need to check out a new U.S. government website called, Making Home Affordable.gov.
As usual, I want to bring your attention to another wonderful, credible site for your information needs! Below is a quote from the website that gives a brief description of what the site’s about:
“The Home Affordable Refinance Program gives up to 4 to 5 million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly payments. The Home Affordable Modification Program commits $75 billion to keep up to 3 to 4 million Americans in their homes by preventing avoidable foreclosures.
“Our consumer website, www.MakingHomeAffordable.gov, provides homeowners with detailed information about these programs along with self-assessment tools and calculators to empower borrowers with the resources they need to determine whether they might be eligible for a modification or a refinance under the Administration’s program. Through this website, borrowers can also connect with free counseling resources to help with outstanding questions; locate homeowner events in their communities; find a handy checklist of key documents and materials to have ready when making that important call to their servicer as well as FAQs from borrowers in similar circumstances; and much more.”
Joan Jackson, Publisher
Baby Boomer Resource Center
101 Online Financial Calculators Every Entrepreneur (and Everyone!) Needs
I urge all of you to brush up on your financial literacy through a great website, 360 Financial Literacy.org.
What a find for Boomer (and anyone’s!) personal finance issues!
Sponsored by The American Institute of Certified Public Accountants, the 360 Degrees of Financial Literacy Web site offers more than merely “general information for managing personal finances”. It’s a virtual cornucopia of financial resources for every segment of life.
For more financial literacy sources, check out my site (Baby Boomer Resource Center), and click on the Personal Finance section.
More than half of the life subjects on their “life compass” pertain to us boomers and older seniors. With a common sense approach to money management issues, this site has trustworthy information to use at almost any stage of life!
Get and stay financially strong through education!
Joan Jackson, Publisher
Baby Boomer Resource Center
101 Online Financial Calculators Every Entrepreneur (and Everyone!) Needs
In a recent post, I mentioned that I’ve just had my e-booklet, 101 Online Financial Calculators That Every Entrepreneur (and Everyone!) Needs published. This is a great, and potentially lucrative, way to promote your business, and share your knowledge while making a passive income!
I went through a long-established online company, Tips Products International. As an infopreneur, I love to share good information and make a living from it!
Founder and Chief Visionary, Paulette Ensign has more than thirty years’ experience with small business owners, corporations, and professional associations in numerous industries, worldwide.
Paulette Ensign is the author of the booklet, 110 Ideas for Organizing Your Business Life, a 16-page booklet that she has personally sold well over a million copies in various languages and formats without spending a penny in advertising.
If you’ve ever been sought out by friends, colleages and family for your helpful tips on a variety of subjects, or you’re seeking a fun way to make passive income, then I highly suggest checking out Tips Booklets International - and “write on”!
Joan Jackson, Publisher
~ 101 Online Financial Calculators That Every Entrepreneur (and Everyone!) Needs
~Baby Boomer Resource Center.com
