Farnoosh Torabi's Blog, page 36
May 31, 2013
Tricks to High-Yield Checking
To stimulate the economy, the Federal Reserve has been keeping interest rates very low. Good deal if you’re interested in securing a home loan or credit card, but it’s been a pain for those who depend on secure income from savings accounts. The current average yield on a checking account, for example, is as just a little over half a percent.
If you’re tired of your money just sitting around and actually losing value with inflation, high-yield checking is one alternative.
Also called “rewards checking,” high-yield checking is just as it sounds – it pays interest rates that beat traditional accounts, currently more than triple, at an average of 1.64%. Earning those higher rates is easier said than done, however, with most institutions having more than a few requirements.
Recently, the folks at Bankrate canvassed banks, thrifts and credit unions across the country. They surveyed 56 high-yield checking accounts for their 2013 High-Yield Checking Survey to detail the interest rates, account restrictions, requirements and other variables important to consumers when considering a high-yield checking account.
All of the high-yield checking accounts surveyed by Bankrate.com require electronic statements. Nearly all require 10 or more debit card transactions each month. Another common requirement: direct deposit and/or automated bill payments. According to Bankrate’s chief analyst Greg McBride, consumers should also be aware that the high-yields only apply up to a certain limit, or “balance cap.” The average cap is $17,102.
“You’ve got to determine, ‘Am I going to be able to meet those requirements consistently, how much cash am I putting in and what’s going to be the best fit for me in terms of yield and balance cap so I can maximize my earnings?’” McBride says. “You’ve got to do a little legwork and make sure it’s going to be a fit for you.”
If you’re the kind of consumer that handles most of your banking electronically, doesn’t constantly need ATM access and isn’t worried about going above the balance cap, it sounds like a good fit. Luckily, high-yield checking accounts are readily available with 61% available nationally.
Photo Courtesy, kenteegardin.
May 30, 2013
Costly Home Insurance Changes
The Insurance Research Council says that insurance companies have more than doubled what they’ve paid out to homeowner’s for insurance claims since 2002 and as a result, rates have risen 69% over the past decade (an average of $1,000 a year per household). Worse, even after shelling out more in deductibles, customers still might not have adequate coverage.
While insurers used to guarantee they’d pay to fix your home no matter what the damage or from what source, now, experts say, policies cover less, cost more, and have far more restrictions than they did just a decade ago.
Not surprising, unpredictable weather is most likely to blame. According to industry data there were 953 U.S. “weather events” in the past five years, and about 600 in the previous five years. According to the National Association of Insurance Commissioners (NAIC), homeowners insurance is now one of the least profitable of all types of insurance; overall, the industry sustained a $65 billion loss last year.
Unlike damage related to flooding (see our recent post re: flood insurance), wind damage is often covered by homeowner’s insurance – typically 2% to 5% of your property coverage. But here’s the catch: if your home is hit by a falling tree (as opposed to the catastrophic losses experienced by those of the recent tornadoes), your deductible could end up far out of reach. If your home is insured for $500,000 with a 5% deductible let’s say, you’d be out $25,000 before your insurance ever kicks in.
And that’s far from all. Ten years ago, if you had to rebuild after a storm, the added costs associated with the repairs (to comply with new building codes, let’s say) were covered. So were water leaks hidden behind a wall or foundation. Now, only leaks detected in the first 14 days may qualify for benefits. And of course, where there’s water, there can also be mold. More often than not there’s no coverage for mold, or it’s capped around $10,000 (yet major mold remediation can cost upwards of $25,000). On CNN Money, one Long Island family shared how they got caught with $97,000 bill after a fire severely damaged their home; between permiting and winter delays, rebuilding took more than two years, but Allstate refused to honor their policy, claiming they only had six months to get the work done.
Don’t get caught off guard; here’s a few tips to help educate yourself, and maybe save a few bucks in the process:
Get Insured by the Same Company
Try one-stop shopping: companies that sell homeowners, auto and liability coverage will often take 5 to 15 percent off your premium if you buy two or more policies.
Use Tools to Detect Leaks
With weather, you can often see it coming. But with a leaking pipe somewhere, you often don’t know until it’s too late. One solution is to place wireless water alarms (less than $25) under your sinks and behind large appliances to help detect even the smallest of leaks. Also keep an eye on your water bill for unusual activity, which could alert you of a larger problem.
Track Your Inventory
A survey by the NAIC showed that 59 percent of consumers have not made a list or inventory of their possessions — go room by room for a current list of all the most valuable items in your home and if you do this now, you can lower the chances you’ll have to fight over coverage later. Make sure to keep that inventory safe by storing it “in the cloud”, outside the home with a family member, or, try the free app knowyourstuff.org.
Photo Courtesy of: All Star Roof & Repair/tree on roof
May 29, 2013
Sunscreen Buying Guide
It’s that greasy time of the year again! As the days get longer and the sun brighter, make sure you’re protected with the highest quality and best value sunscreen.
You can no longer rely on just the SPF number to get the best protection during the summer months. Did you know regulation of sunscreen has changed? The FDA’s new policies became effective last year, requiring makers of products that protect against all types of sun damage to use the labels “Broad Spectrum” and “SPF 15” (or higher) on the front. That’s the sunscreen you want! Sunscreens that are not broad spectrum or that have less than an SPF value of 14 will carry a warning that, while they should keep you from burning, you’ll be exposed to potentially harmful sun effects. Products will also have to indicate exactly how much time to expect from water resistant products while sweating or swimming.
With those important changes in mind, Consumer Reports recently tested and ranked sunscreens to find which offer the most bang for your buck. They, of course, looked at which products had the best UVA and UVB protection, but also which ones had the best scent and feel and won’t stain clothes. In a test of 12 sunscreens, they found that some of the least expensive were, in fact, the best. Three of the four top brands are made by national retailers: Target’s “Up and UP Sports SPF 50″ had the highest overall rating; in second was Walmart’s “Equate Ultra Protection Sunscreen SPF 50″ and Walgreens “Continuous Spray Sports SPF 50″ was number four – all cost less than $1.67 per ounce.
No matter what brand you buy, here are a few constants recommended by Consumer Reports:
• Buy a sunscreen with broad-spectrum protection, is water resistant, and an SPF number of at least 40.
• Apply 15 to 30 minutes before going into the sun (that’ll give it time to absorb.)
• Be sure to reapply every two hours and again after you swim or sweat.
• Storing sunscreen in the car or in other hot areas can cause the product to degrade.
• Finally, check the expiration date on any old sunscreen you’re thinking about using, or in the store when you’re buying it. Anything more than two years old should be tossed.
Photo Courtesy, Robert S. Donovan.
May 28, 2013
Save on Summer’s Biggest Expenses
Summer is synonymous with relaxation but not when it comes to your wallet. From gas to food, travel and entertainment, everyday prices tend to perk up during the summer months. Here are five savvy tricks to help you pocket hundreds this season. Read more here.
We want to hear about your summer savings ideas. Connect with me on Twitter @Farnoosh and use the hashtag FinFit.
May 27, 2013
Best Career Advice From 2013 Graduation Speakers
Graduation season is rolling to a close and before long countless young professionals will enter the workforce, equipped with little more than college degrees and -hopefully- some words of wisdom from mentors, or at least their graduation speakers.
I’m a few years out of school but attending the graduation ceremonies of friends and family, hearing the accompanying speeches, always serves as a pick-me-up. It’s like pressing the reset button on my internal drive and recalibrating my professional compass.
Not all are so lucky as to get the likes of former president Bill Clinton or Stephen Colbert to speak at their college commencement (I don’t remember who spoke at mine in 2010.) But thanks to the wonders of the internet, we can all benefit from their sage advice.
I scoured the speeches from 2013′s most preeminent commencement speakers for their big ideas and words of wisdom. Here are my favorite quotes.
Stay Connected
“…Ask yourselves what broader purpose your business might serve, in putting people to work, or transforming a neighborhood. The most successful CEOs I know didn’t start out intent just on making money — rather, they had a vision of how their product or service would change things, and the money followed.”
~Barack Obama, Morehouse College, May 19, 2013
“The people who say technology has disconnected you from others are wrong. So are the people who say technology automatically connects you to others. Technology is just a tool. It’s a powerful tool, but it’s just a tool. Deep human connection is very different. It’s not a tool. It’s not a means to an end. It is the end — the purpose and the result of a meaningful life — and it will inspire the most amazing acts of love, generosity, and humanity.”
~Melinda Gates, Duke University, May 12, 2013
“Use your knowledge and your heart to stand up for those who can’t stand, speak for those who can’t speak, be a beacon of light for those whose lives have become dark.”
~Julie Andrews, University of Colorado, May 10, 2013
To Thine Own Self Be True
“Remember that while there will be plenty of signposts along your path directing you to make money and climb up the ladder, there will be very few signposts reminding you to stay connected to the essence of who you are, to take care of yourself along the way, to reach out to others, to pause to wonder, and to connect to that place from which everything is possible.”
~Arianna Huffington, Smith College, May 19, 2013
“If you must find your own path, and we have left you no easy path, then decide now to choose the hard path that lead to the life and world that you want. And don’t worry if we don’t approve of your choice. In our benign self-absorption, I believe we have given you a gift. A particular form of independence because you don’t own the previous generation anything. Thanks to us you owe it to the Chinese.”
~Stephen Colbert, University of Virginia, May 18, 2013
Be Responsible and Accountable
“It turns out there is an economic and social imperative that compels those of us who understand it to work together. Creating cooperation works better than constant conflict and we forget that at our peril. You can’t share the future unless you share the responsibility for building it.”
~Bill Clinton, Howard University, May 11, 2013
“Accountability doesn’t mean apologizing. It means learning from your mistakes and changing your behavior next time around.”
~Nate Silver, Ripon College, May 12, 2013
Photo Courtesy, Penn State
May 24, 2013
Best Beauty Buys For A Buck
From pencils to palates and tubes, department store makeup can easily cost $30 a pop. It’s safe to say we all want quality cosmetics for less, so here to help us out is our friend and beauty expert Nicole Williams, She’s got a huge spread here of fantastic best beauty buys for, get this, a dollar – sometimes even less. Read more here.
We want to hear from you. What are some of your absolute greatest beauty finds for a dollar, maybe less? Connect with me on Twitter @Farnoosh, and use the hashtag #FinFit.
Best beauty buys for a buck
From pencils to palates and tubes, department store makeup can easily cost $30 a pop. It’s safe to say we all want quality cosmetics for less, so here to help us out is our friend and beauty expert Nicole Williams, She’s got a huge spread here of fantastic best beauty buys for, get this, a dollar – sometimes even less. Read more here.
We want to hear from you. What are some of your absolute greatest beauty finds for a dollar, maybe less? Connect with me on Twitter @Farnoosh, and use the hashtag #FinFit.
7 Gas Saving Secrets
Common Legal Problems & How to Solve Them
Last week we brought you advice on how to find free or low-cost resources for legal aid. This week we break down some of life’s most common and sticky legal situations, with resources to help solve them.
Living Will, Trust & Health Care Proxy
A will designates where your assets go when you pass away (and only then). A trust can divvy up your assets and property on the terms you create, even if you’re still alive. Wills and trusts each have their advantages: for example, a Will will allow you to name a guardian for children and to specify funeral arrangements, while a trust can be used to plan for disability or provide savings on taxes. With a trust you can appoint yourself as the trustee, or you can assign a successor trustee should you die or become incapacitated. And unlike with a will, a trust won’t require you to go through probate court (a process that can take 6 months to two years!) making it much easier to distribute your assets to your beneficiaries. It’s possible to have both a will and a trust, but if you transfer all your property into a living trust, your will probably won’t have to be used. To catch any property that wasn’t transferred, a“pour-over will” states any property in your name be transferred into your trust automatically.
But, don’t stop there. You also need to think about what would happen if you were incapable of making your own health care decisions, whether due to a debilitating sickness, coma, mental illness, etc. To assign someone to make these tough calls for you, a living will is a medical document that tells doctors and family what kind of care you want. To make sure these orders are followed, you need a Durable Power of Attorney for health care, and an Advance Directive. These two items instruct the doctors what to do and are legally binding.
You can find documents for a Living Will, Durable POA, Health Care Proxy, DNR Order & even Nomination of Guardian documents at a plethora of websites online — for free. For a living will or trust, you’ll just need signatures of you and your successor trustee, witnessed by a notary (or a few others, depending on your state). And don’t forget to plan for and provide for your pet after you’re gone with a Pet Trust as well!
Debt & Bankruptcy
Personal bankruptcy can excuse some kinds of debt when you get in over your head: credit card debt, medical bills and personal loans (though you will still be responsible for paying recent back taxes, student loans, and any child support or alimony). Compile all your financial paperwork proving you cannot repay your debt and in addition, you will need at least 180 days of credit counseling prior to filing. It’s strongly encouraged to find a legal representative to handle your case, however, some may qualify for free legal services, or a Chapter 7 fee waiver. Check out the US courts Bankruptcy Resources page to find out more.
Family Law, Divorce & Custody
Marriage, divorce, and custody issues can be complicated and sensitive for families. But if your divorce is amicable, you can file for free. Check out Rocket Lawyer’s page of Uncontested or No Fault divorce papers: You can also find Family law resources available at the American Academy of Matrimonial Lawyers, an association with over 1,600 members in all 50 states.
Immigration
Visit ImmigrationLawHelp.org to find organizations that provide free or low cost immigration legal help.
Real Estate Or Landlord Trouble
When you fall behind on your mortgage, don’t wait too long to find out what to do about it. Gust G. Sarris, a business attorney in Florida, says “I see at least one client every week who has waited too long…. If you wait until the foreclosure begins you most likely will lose your house! It does not get cheaper to ignore a summons, court date or official paper.” The first step is to educate yourself, which you can do for free on government sites or you can call the Federal Housing Administration at 1-800-CALL FHA.
When you rent, not paying on time will eventually get you evicted, no matter what the circumstances. If you want to withhold rent because the landlord hasn’t complied with the lease obligations (making repairs, turning on heat the heat in the building during the cold season, etc), don’t just “not pay it”. The right way to put pressure on your landlord is to escrow your rent with the local municipal court. That means you pay your rent to the court instead of to the landlord and the court holds it until the landlord fulfills their obligations. If the landlord makes promises upon move in (ie, trash collection, all utilities included, etc), make sure theses terms appear in writing – in the lease itself – or a court may not be able to enforce it. Check out do-it-yourself rental agreements, and Renters and Tenant’s rights here.
Employment & Retirement Benefits
Sometimes you need help in securing the employee or retirement benefits you have earned. The Department of Labor’s Employee Benefits Security Administration (EBSA) enforces the law by informally resolving benefit disputes, conducting investigations, and seeking correction of violations of the law, including bringing lawsuits when necessary. Contact a benefits advisor by requesting local assistance or by calling 1.866.444.3272.
Business
There is a trade association devoted to almost every industry. Most have legal staff that monitor the industry and specialize in that area of law. Your Small Business Development Center website will provide free legal information about planning, starting and managing a business. You can also find counseling, training and business development specialists providing free and low-cost services in your area. Finally, find basic legal advice on taxes, wages and finances through organizations such as the Freelancer’s Union .
No matter what the legal issue, know there’s lots of DIY resources available to you, your family, and your business that DON’T require en expensive lawyer.
Photo Courtesy of: wikimedia commons / legal dictionaries
Print Graduation, Wedding Photos for Cheap
Graduation and marriage are major milestones worth saving the memories. You’ll likely end up with tons of photos – some not so hot, but many that you’ll want to keep forever.
Don’t let your photos linger in a Facebook album or on your computer. Whatever happened to placing pictures in a classic photo album? Someday, you’ll be happy you did. Here’s some advice on photo printing deals.
Find Great Deals at Retail Chains
Recently, Farnoosh ranked which outlets are best at delivering quality, inexpensive photos. Here’s the skinny: Expect to pay, on average, and $0.19 per 4×6 print but many retailers will offer significant savings, as a promotion or when you sign up on their site . Walgreens, for example, currently is running deals through May 25th where you can get 40% off of prints and $10 off of orders over $25. Wal-Mart is even cheaper at just $0.09 per 4×6 print.
Don’t Forget Online Deals
Two online printing services Farnoosh ranked high in quality were Shutterfly and Snapfish. Their prints are about 10 cents cheaper than those of retailers. For small orders, both sites offer deals you can’t beat: Snapfish offers 20 free prints, and Shutterfly 50, when you sign up for the sites. They’re also home to incredible deals on photo gifts, namely photo books perfect for weddings and graduations. Currently, Shutterfly is offering up to 40% off their photo books, 30% off at Snapfish through May.
Photo Printing Tips
With these great deals, whether you’re graduating, getting hitched, or just want your physical copies of old pics, you’re set. But before you send those digital copies over, here are a few tips from Farnoosh to ensure you get the best quality. She advises:
• ”If you’re short on time, for 10-15 cents more try the Photo Kiosk machines, located at or near the photo center of your local drugstore or retailer. They use the same printing method as the 1-hour photo service, but the photos are ready in minutes.
• When ordering online, upload the highest resolution possible and pay particular attention to photos from your phone or Facebook where a cropped, zoomed or a small file size may not be noticeable in your gallery.
• Note that if offered, “True Digital” sizing automatically adjusts your photo to a 4×5.3 shape – un-cropped and closer to your original file, but smaller than a 4×6 and not ideal for framing.”
Photo Courtesy, Paul Reynolds.
