SavvySugar

250,000 Couples Will Receive Stimulus Checks

SavvySugar — Wed, 15 Oct 2008 12:30:32 -0700

When rebate checks were distributed to Americans this Summer the IRS only cut checks to citizens whose names and social security numbers matched. The IRS recently announced they would be issuing overdue checks to 250,000 couples that qualified for the stimulus but were overlooked because of mismatched names and social security numbers.

If one person decides to change their name after marriage, the change should be reported to the Social Security Administration so their social security number matches the new legal name. Some couples fail to take this step, and this time the oversight meant they missed out on stimulus checks from the government. Going forward, make sure you're accounted for appropriately by following my checklist for changing your name.

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Do You Know What Is Normal Retirement Age?

SavvySugar — Wed, 06 Aug 2008 12:30:22 -0700

It may seem like a faraway reality unless you plan on retiring young, but retirement issues affect us all today because of the Social Security system in the US. The Social Security Administration has admitted that young workers won't be able to count on our less-than-minimum-wage benefits through retirement, and there's some discussion about whether or not it makes sense to raise the retirement age.

Do you know how old you must be in order to receive full Social Security benefits during retirement?

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Social Security Benefits in 2041 Below Minimum Wage Income

SavvySugar — Thu, 10 Jul 2008 12:33:49 -0700

If you haven't already been convinced that committing to retirement savings isn't really up for argument, consider these statements from the Social Security Administration. The average monthly benefit in June 2008 was $1,084.47, but in 2041 Social Security will only be able to pay 78 percent of scheduled benefits. The Motley Fool has calculated the inflation-adjusted equivalent to be $845.89 per month.

It hurts to see the Social Security payments deducted from each paycheck and know that we won't be receiving much back, but at least we have some warning. There's still plenty of time to get going on saving for retirement so that you can live comfortably in your golden years.

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The Most Basic Way to Protect Against Identity Theft

SavvySugar — Fri, 28 Aug 2009 08:30:21 -0700

Everyday folks aren't armed with the high-tech equipment to battle elaborate identity theft schemers, but we do have one thing going for us - our common sense. Setting up various, unpredictable passwords for your online accounts is one way to guard yourself, and we can thank Mrs. Federal Reserve Chairman for demonstrating another basic lesson.

Ben Bernanke's checking account was one of hundreds that was wrapped up in an identity theft ring after his wife Anna's purse was stolen at a Starbucks. The thief hit the jackpot with that steal; not only did she keep her checkbook and IDs in her purse, it also contained her social security card. Access to someone's social security number makes stealing identities a breeze for scammers.

Protect yourself by leaving your social security card locked in a safe place at home; there's no reason for you to carry it around in your wallet.

The 10 Best Paid Cities in the World

SavvySugar — Mon, 31 Aug 2009 13:15:45 -0700

There's more to purchasing power than the gross number on your paycheck. Nobody knows that better than residents of Copenhagen, who earn more before taxes on average than any other city in the world. However, after accounting for taxes, hours worked, social security contributions, transportation, and the cost of groceries and household items, workers in Copenhagen have weaker purchasing power compared to cities where the average gross pay is less.

The UBS Prices and Earnings report factored in the necessary pieces to determine which cities are the best paid in the world. Find out the 10 cities where purchasing power is strongest when you read more.

Zurich, Switzerland
Geneva, Switzerland
New York, New York
Dublin, Ireland
Luxembourg
Copenhagen, Denmark
Los Angeles, California
Oslo, Norway
Helsinki, Finland
Miami, Florida

How to Keep Track of Your Credit For Free

SavvySugar — Tue, 16 Jun 2009 06:30:48 -0700

Most lenders use your FICO scores to determine your credit worthiness, but typically it costs you money to retrieve your own score. You have three FICO scores (one from each major credit bureau) based on the information each bureau keeps on file about you. If you don't want to shell out cash every time you have the urge to check your score, there's a solution for you. To find out what it is, read more.

Ron Shevlin, a senior analyst at research-advisory firm Aite Group LLC, suggests using CreditKarma.com because it "offers a truly free score and advice on how to improve it." According to the Wall Street Journal, CreditKarma works like this: Enter personal information (but no credit card details). The site will use your social security number to get your TransUnion generated score. The site will also show you how your score stacks up against other users and will help identify the major influences on your score.

If you're not in a situation that necessitates knowing all of your FICO scores, and simply want to keep track of your credit, CreditKarma could be a good resource. Don't rely on this avenue alone for keeping an eye on your finances and be sure to take advantage of your free annual credit reports. Shevlin warns that we should expect credit card advertisements on the site - that doesn't mean you should click on them.

Identity Scammers Targeting Online Job Seekers

SavvySugar — Sun, 26 Apr 2009 11:00:09 -0700

An internal red flag should go up whenever you're asked to provide your social security number. Always ask yourself why the person would need your SSN for their purposes. Sure, it makes sense for a credit card carrier to ask for the number to verify your identity. But something is seriously off when a so-called recruiter who saw your resume online asks for those nine digits.

According to consumer finance guru Steve Weisman, scammers are taking advantage of the flood of online job seekers. The scammers contact hopeful individuals who have posted their resumes online with the premise that they are recruiters for legitimate employers. They say they want to set up an interview but need to do a background first check, which - you guessed it - means supplying your social security number.

Weisman reminds us to withhold personal details until you've met a recruiter or employer in person, and encourages us to verify the legitimacy of an employer through the Better Business Bureau. Is your resume posted on an online job site?

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President Obama Discloses His Personal Finances

SavvySugar — Mon, 18 May 2009 04:30:23 -0700

For all of the security it takes to protect the president and his family, the Obamas don't exactly get much privacy. A disclosure of President Obama's personal finances was released on Friday, making it clear he's a pretty conservative investor, his daughters' educations are a priority, and he's got enough cash for a rainy day. The numbers were provided with pretty big ranges, but here's a peek inside Obama's finances.

He has between $101,000 and $265,000 in two checking accounts.
There's between $100,000 and $200,000 in two 529 educational savings accounts for the First Daughters, Sasha and Malia.
Obama plays it safe with most of his money, investing between $1 million and $5 million in U.S. Treasury bonds.
His stock market exposure is mostly limited to between $115,000 and $250,000 invested in a mutual fund, the Vanguard FTSE Social Index fund (VFTSX).

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New Book Says We'll Have to Work Longer and Retire Later

SavvySugar — Mon, 21 Jul 2008 04:00:15 -0700

This Sunday's New York Times featured an intriguing look at a new book, Working Longer: The Solution to the Retirement Income Challenge by Alicia H. Munnell and Steven A. Sass.

The Times claims the book uses "sometimes cloistered academic terms," but does a swell job of addressing something we all fear: how under prepared most people are for their golden years. What troubled me is fact that the authors estimate that people who retire at age 65 today can expect Social Security to provide the equivalent of only 39 percent of their incomes after deductions for basic Medicare contributions. Here's more:

Ms. Munnell and Mr. Sass recommend that people postpone their retirements from age 63, the current average, to 66. Interestingly enough, 66 was the average back in 1962. They also say that it is time to look at raising the earliest eligibility age for Social Security benefits. (It is currently 62.)The authors write that four more years of work alters the ratio of retirement to working years from 1 to 2, meaning 20 years of retirement and 40 years of work, to almost 1 to 3, or 16 years of retirement and 44 years of work. The authors contend that working longer and retiring later can generate powerful benefits for aging baby boomers and the workers in their wake.

If you're wondering what those benefits are, read more.

Working longer and retiring later would delay the need for people to tap into I.R.A.’s and 401(k) plans, thereby swelling their total assets and increasing the future income they can produce, according to the book. It would also help maximize the benefits of Social Security, which are about one-third higher for recipients who are 66 than for those who are 62.

We all know sticking to our retirement savings isn't an easy thing to do, but the fact that the long haul may need to be even longer is somewhat disheartening. Do you think you are going to have to retire later than your goal date, or can you meet your marker?

How to Freeze Your Credit Report

SavvySugar — Fri, 14 Mar 2008 15:23:46 -0700

Yesterday I suggested that freezing your credit report could be an option for anyone who wants to play offense with identity thieves, and won't be in the market for any new credit in the near future (including shopping for a new cell phone or utility service). If you've been a victim of identity theft freezing your credit report won't cost you any money, but if you've come this far without having your identity stolen than freezing your credit report comes with a fee. Why do you have to pay for the freeze? Because the bureaus make money by collecting and selling credit information about you and a freeze halts all of this money-making activity.You'll have to send freeze requests to each of the three separate credit bureaus along with a few specific details. To see what steps are necessary just read more.

Equifax: Send a certified letter with these elements: name, address, date of birth, social security number, utility bill for proof of address, payment, and a police report if you are a victim.
TransUnion: Send a letter with the following: name, address, social security number, copy of your driver's license, and payment.
Experian: Send a request by certified or overnight mail including the following: name, social security number, date of birth, current and past addresses dating back two years, a copy of your driver's license, and one utility bill.

Visit each credit bureau's website to see your state's specific requirements and fees are for freezing your credit report. Do you think that freezing your credit report would be a good investment or a waste of time and money?

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