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How to Fight Sneaky Fees

SavvySugar — Wed, 11 Jun 2008 06:28:12 -0700

We're always looking for ways to keep money in our pockets, and Kiplinger's July 2008 issue has some suggestions about how to stop companies from nickel-and-diming you. Just last year Americans paid $30 billion in credit-card fees, so it's safe to say that most of us have been saddled with some of these sneaky fees. Here are Kiplinger's tips on how to fight them.

Call during business hours. Few managers are available on weekends, and you won't get the cream of the crop among lower-level representatives. At Gethuman.com, you can find codes that let you circumvent company phone trees.
Do your research and flex your muscle. Tabulate how much money you've spent with the company, which can boost your bargaining power. If you think you've been treated unfairly, don't hesitate to say you're considering a letter to the state attorney general.
Don't waste your time. A $2 fee may get your goat, but you can't afford to fight every charge. Your chances of winning are directly correlated to how much leverage you have. With financial services, such as banking and credit, "consumers ultimately hold all the power because they can vote with their feet," says Greg McBride, of Bankrate.com. In fact, a survey for Sullivan's book found that customers who complain to credit-card companies get results 65 percent of the time.

Tax Breaks For 20-Somethings

SavvySugar — Wed, 21 May 2008 08:18:35 -0700

Graduating from college comes with a slew of mixed emotions and a world of opportunities, including some that may not have crossed your mind. Kiplinger's June 2008 issue recognizes that tax breaks aren't part of most students' college curriculum and rounded up all the tax breaks it could think of for newly graduated 20-somethings.

Moving expenses: New grads can deduct the cost of moving themselves and their belongings to their first job out of school, as long as the job is at least 50 miles from their old residence.
Saver's credit: Depending on their income, some young adults can trim their tax bill by up to $1,000 as a reward for contributing to an IRA, 401(k) or other retirement plan. The credit is available to singles with an adjusted gross income of less than $26,000 and married couples whose AGI is less than $52,000.
Student-loan interest: Young people can write off up to $2,500 of interest on student loans each year even if they don't itemize deductions. And now they can also write off student-loan interest paid by their parents. The IRS considers payments by parents on a child's loan to be a gift to the child.
Roth IRAs: Roths are primarily for retirement savings, but they're flexible enough to be used for a down payment on a house. You can withdraw contributions to a Roth at any time without paying taxes or a penalty. And after the account has been open for five years, you can also withdraw up to $10,000 of earnings tax- and penalty-free to buy a first home.
Tax forms: In order to get all of these benefits, it's important that young adults not file the Form 1040EZ. Filers can't claim the saver's credit, write off moving expenses or deduct student-loan interest on this simplified form. Instead, they should use the standard Form 1040.

The Essentials for Your Financial ToolKit

SavvySugar — Wed, 16 Apr 2008 04:28:30 -0700

So many of us are in the habit of filling up our schedule to the brim, leaving little time to focus on our finances. Kiplinger's May 2008 issue acknowledges that we don't have all the free time we'd like for attending to our money issues. Rather than go all or nothing with improving your finances, they've provided an easy to sort through "Essential Financial Toolkit" that allows you to quickly choose the topics that interest you most. It's organized into four categories, Personal Finances, Investing, Credit and Retirement, and each task within these categories can be accomplished in five steps or less. Here are some highlights from each section, and you can see all of their essentials with their corresponding steps on their website.

Personal Finance Toolkit: Their 12 essentials in this kit include steps for tasks like complaining and getting results, starting a 529 plan, and boosting your paycheck.
Credit Toolkit: This section includes steps for six essentials like lowering your credit card rate, deciphering your credit card statement, and fixing an error on your credit card statement.
Retirement Toolkit: Learn what steps you need to take for transferring your IRA, rolling over your 401(k), and setting up a Roth IRA.
Investing Toolkit: Their 12 essentials in this kit include information on diversifying investments, how to open a brokerage account, and tracking investments online.